Food & drink business europe nov 2014 issue

November 2014

Finsbury Food Group to create a new force in UK speciality bakery

Food & Drink Business Website:

www.fdbusiness.com

C o n t e n t s

- 3 M ERGERS & A CQUISITIONS

- 31 & 33 B USINESS P ERFORMANCE

Coverage of British and international deals.

Food and drink businesses hold top places amongst UK's leading private mid-market growth companies.

PAGE 3

David Salkeld, CEO, Symington’s.

- 5 C OVER S TORY

Top 10 Leading Mid-market Food and Drink Private Companies in Britain.

P AGE 15

Owen Killian, CEO, Aryzta.

R&R Ice Cream is European leader.

R EGULARS

Finsbury Food Group to create a new force in UK speciality bakery.

Processing & Manufacturing . . . . . . 7, 22-24 PAGE 20 Bottling & Packaging . . . . . . . . . . 8, 11 & 13

José Antonio Gómez, CCO, Camposol.

Materials & Ingredients . . . . . . . . . 17, 40-44

- 15 B AKERY Transformed Aryzta prepared for sustained growth.

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Urs Riedener, CEO, Emmi.

Quality & Safety . . . . . . . . . . . . . . 21, 26-29 Materials Handling . . . . . . . . . . . . . . . . . . 33 Logistics & Distribution . . . . . . . . . . 34 & 35 Energy & Environment. . . . . . . . . . . . . 37-39

- 19 & 20 F RUIT

PAGE 31

Ibrahim Najafi, CEO, R&R Ice Cream.

Managing Director: Colin Murphy Editor: Mike Rohan Group Operations Manager: Sylvia McCarthy

California grape exports reach record high for second year in a row.

PAGE 4

Camposol reveals major blueberry expansion into the UK and Europe.

Jorgen Buhl Rasmussen, CEO, Carlsberg Group.

Advertising: John Bent & Ian Stewart Production Manager: Sylvia McCarthy

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- 25 G ROCERY M ARKET UK grocery market enters deflation.

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Big Four UK grocery retailers’ profit margins to shrink further.

John Duffy, CEO, Finsbury Food Group.

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FOOD & DRINK BUSINESS EUROPE, NOVEMBER 2014

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M E E R R G G E E R R S S M Cutrale-Safra to Acquire Chiquita in $1.3 Billion Deal Chiquita Brands Inter-national is being acquired by CutraleSafra of Brazil in a deal that will combine one of the world’s leading fresh produce companies with one of the world’s most highly regarded agribusiness and juice companies.

Cutrale-Safra is part of the Safra Group, a leading global financial services firm with a strong track record of successful investments.

The $14.50 per share consideration to be received by Chiquita shareholders represents a 33.8% premium to Chiquita’s closing price on March 7, 2014, the last trading day prior to the announcement of Chiquita’s proposed merger with Fyffes, a leading international importer and distributor of tropical produce. The transaction with Cutrale-Safra is valued at approximately $1.3 billion, including the assumption of Chiquita’s net debt.

With annual revenues of more than $3 billion, Chiquita employs approximately 20,000 people and has operations in nearly 70 countries worldwide.

The company markets its fresh products under the Chiquita and Fresh Express premium brands and other related trademarks.

The Cutrale Group incorporates the global agribusiness operations owned by the Cutrale family. It is one of the world’s leading orange juice processors for frozen concentrated orange juice and notfrom-concentrate fresh juices.

Indeed, operations within the Cutrale Group account for over one-third of the $5 billion orange juice market. The global business operations include oranges, apples, peaches, lemons and soybeans.

The transaction is expected to close by the end of the year or early 2015. Following the close of the transaction, Chiquita will become a wholly owned subsidiary of the Cutrale-Safra group, and remain incorporated in New Jersey.

Fyffes is entitled to a termina-

& &

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

tion fee of almost Eur19 million from Chiquita after the proposed $1 billion (Eur789 million) merger between the two companies was rejected by Chiquita shareholders in favour of the Cutrale-Safra deal.

Finsbury Food Group to Acquire Fletchers Group For £56 Million Finsbury Food Group, which is one of the UK’s leading cake and bread bakery goods manufacturers, has agreed to acquire the Fletchers Group, which supplies morning goods and specialist bread products to leading UK grocery retailers and foodservice customers, for £56 million from private equity firm Vision Capital. The enlarged group will be one of the largest speciality bakery groups in the UK, with sales approaching £300 million and a broad spread of customers across the food retail and foodservice channels. Vision Capital acquired Fletchers from Northern Foods in 2007, and has since executed a significant turnaround plan resulting in a step change in profitability at the company.

Symington’s Acquires Tanfield Foods UK convenience food manufacturer Symington’s has acquired ready meals producer Tanfield Foods for an undisclosed sum.

Consett-based Tanfield Foods produces own label products for UK retailers and ‘Look What We Found’, the Ilumi free-from brand. The deal further strengthens Leeds-based Symington’s position in the ambient convenience food category.

The Symington’s portfolio includes national and interna-

tional brands such as Ainsley Harriott, Ragu, Chicken Tonight, Aunt Bessie’s, Jane Asher, Mugshot and The Food Doctor.

David Salkeld, chief executive of Symington’s, says: “The Tanfield Foods acquisition is a positive step forward in strengthening our position in branded convenience food and we welcome the people of Tanfield Foods to the Symington’s family. Our two companies have a proven track record of success in product innovation and brand development in these growing categories and working together we are very well placed to continue

David Salkeld, chief executive of Symington’s.

to surprise and delight our consumers.”

Geoff Allison, managing director of Tanfield Foods, says: “Tanfield Foods has come a long way since its inception nearly 10 years ago but needs to change to secure its future. I am delighted with the Symington’s deal as a combination of their strong retail relationships and extensive brand portfolio alongside our highly skilled team, top quality production facilities and modern packaging formats will drive rapid sales growth. We are looking forward to helping develop further the ambient convenience food sector. It’s exciting times ahead.”

ket. Italy is one of the largest markets in the EU for (semi) hard cheeses.

For several years, DEK has been FrieslandCampina’s dedicated sales agent in Italy for cheese and butter, serving customers in the retail, food service and business-to-business channels. Orange provides a broad portfolio of cheeses and cheeserelated products to retail and specialty food stores across Italy.

Orange will maintain its identity in the Italian market, while the DEK business will be integrated into a newly incorporated FrieslandCampina entity.

With this transaction, FrieslandCampina has acquired a strong sales and distribution network in Italy.

Emmi to Dispose of Italian Yoghurt Business Swiss dairy group Emmi is selling Trentinalatte, its problematic Italian yoghurt manufacturing operation, to the LIVIA Group for an undisclosed price.

Emmi had originally taken over Trentinalatte, based in Roverè della Luna in Northern Italy, in July 2006, with the aim of building up a strong base in the Italian yoghurt business.

Based in Munich and Vienna, the LIVIA Group is an industrial holding company with a wide range of investment interests including corporates, real property, art and agriculture.

FrieslandCampina Reinforces Position in Italian Cheese and Butter Market Royal FrieslandCampina is to acquire the activities of the Italian company DEK and 80% of the shares of Orange. The deal reinforces FrieslandCampina’s position in the Italian cheese and butter mar-

FOOD & DRINK BUSINESS EUROPE, NOVEMBER 2014

Urs Riedener, chairman and chief executive of Emmi.

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MM E E R RG GE ER RS S

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S II T T II O N S AA CC QQ UU II S S

Cranswick Acquires Benson Park UK food group Cranswick has broadened its product range and customer base with the acquisition of Benson Park, a specialist producer of cooked poultry, for an undisclosed sum.

Employing about 90 people and operating from a purpose built factory in Hull, Benson Park supplies ingredients to customers operat-

ing in the ‘food to go’ sector of the retail multi-channel, convenience and food service markets. Benson Park had revenues of £41.1 million in the year ended August 31, 2014.

Cranswick, which is also headquartered in Hull, supplies a range of fresh pork, gourmet sausages, premium cooked meats, traditional air-dried bacon, charcuterie, pastry products and sandwiches to its customers from a number of production facilities in the UK. “A key component of the group’s long term growth strategy is to develop new product channels in its core UK market both in pork and other proteins,” says Adam Couch, the chief executive of Cranswick. “This strategic investment moves Cranswick firmly into a new protein category with a well invested business that has a strong presence, supplying premium poultry products, in the fast growing food to go sector.”

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Cranswick will fund the acquisition from existing debt facilities and it is expected to be modestly earnings enhancing in the current financial year.

Carlsberg Group Expands in China Carlsberg Group has completed the acquisition of 100% of Chongqing Beer Group Assets Management Co for RMB 1.56 billion (approximately DKr 1.4 billion, Eur188 million) to expand its brewing interests in China.

Head-quartered in Chongqing, Chongqing Beer Group Assets Management Co is a holding company comprising a total of eight breweries with a capacity of approximately 12 million hl.

The breweries are located in three provinces (three in Jiangsu, three in Anhuiand two in Zhejiang) and primarily sell brands from Chongqing Brewery Company Co as well as the brand Tianmuhu. Chongqing Beer Group Assets Management Co will be consolidated by Carlsberg Group from November 2014.

Supporting Finsbury Food Group with our food manufacturing software

Announcing the most dedicated Food & Drink Manufacturing and Supply Chain Software

Jorgen Buhl Rasmussen, chief executive of Carlsberg Group.

FOOD & DRINK BUSINESS EUROPE, NOVEMBER 2014

COVER STORY

Finsbury Food Group to Create a New Force in UK Speciality Bakery Finsbury Food Group’s £56 million acquisition of Fletchers Group will create one of the largest speciality bakery groups in the UK, with sales approaching £300 million and a broad spread of customers across the retail and food service channels.

F

insbury Food Group is one of and growth. The Fletchers business the UK’s leading cake and will complement Finsbury’s existing bread bakery goods manufaccake and bread manufacturing busiturers. Finsbury achieved an ness and provide additional sales increase in adjusted continuing profit opportunities for the combined before tax of 18% to £6.5 million on company, harnessing Fletchers’ long broadly flat revenue of £175.7 milestablished customer relationships. lion for the year ended 28 June The agreement is subject to regula2014. Capital investment spend was tory and shareholder approval. increased by 48% to £6.2 million during the year.

Combined Group Fletchers Group supplies morning The enlarged group will encompass goods and specialist bread products significantly expanded UK bakery to leading UK grocery retailers and operations as well as Finsbury’s existfood service customers. For the year ing overseas business and will generended 29 March 2014, Fletchers ate annual sales of almost £300 milreported revenue of £95.0 million lion. The UK operations will com(down from £99.1 million in 2013), prise Finsbury’s existing UK sector with total profit before interest, tax, John Duffy, chief executive of Finsbury Food Group. operations at Memory Lane in depreciation and exceptional items of Cardiff, Lightbody near Glasgow £6.0 million, slightly lower than the £6.2 million achieved and N&H at Salisbury as well as the new businesses in the previous year. However, earnings growth in the first Fletchers Group Bakery in Sheffield, Grain D'Or in London six months of the current financial year has been strong as and Kara in Manchester. the benefits of substantial capital expenditure in recent years The combined Finsbury/Fletchers business will supply all are realised. of the key UK supermarkets. Food service customers include Brakes and 3663 Turnaround and a wide range of Finsbury is acquiring Fletchers for £56 million from private restaurants, coffee equity firm Vision Capital. Vision Capital acquired Fletchers shops, bars and fast from Northern Foods (now part of 2 Sisters Food Group) in food outlets as end 2007, and since that time has executed a significant turn- customers. around plan resulting in a step change in profitability at the company.

Synergies Under Vision Capital’s ownership Fletchers has developed The acquisition of high quality products across a broad category of fresh and Fletchers offers Finsfrozen baked goods, particularly in morning goods. In addi- bury significant stration Fletchers has built a large and growing food service tegic and financial business, which has the opportunity for further innovation benefits including complementary pro- Fletchers Group supplies morning goods and duct ranges and new specialist bread products to leading UK grocery food service chan- retailers and food service customers. nels, along with diversification of its retail customer base. The UK food service bakery market is worth about £900 million per annum, 70% of which is morning goods. Both Finsbury Food and Fletchers supply products to the growing morning goods sector.

Finsbury will also gain from the recent significant capital investment within Fletchers manufacturing. Furthermore, the Finsbury Food Group is one of the UK’s leading cake and bread bakery goods enlarged business will provide a multi-channel platform for furmanufacturers. ther acquisitions.

FOOD & DRINK BUSINESS EUROPE, NOVEMBER 2014

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Transformational Development John Duffy, chief executive of Finsbury Food Group, comments: “The acquisition of Fletchers is a transformational development for Finsbury Food Group, and will add scale to the effect that together we will be one of the largest speciality bakery groups in the UK. Fletchers is a highly complementary business, which broadens the Finsbury UK speciality bakery product, customer and channel growth potential and will provide a strong platform for the group to address the food service markets. We believe the enlarged group will be in a strong position for new licensing arrangements, joint ventures and stronger customer and brand relationships.”

He adds: “By servicing both the cake and bakery market, through both retail and food service, the enlarged group will have a diversified product and customer offering.”

Andrew Rich, partner at Vision Capital, says: “Fletchers is a strong, profitable and growing company with a leading position in the fresh and frozen baked goods industry. Finsbury is the ideal partner to take Fletchers into the next phase of its development and the combined group is well positioned to prosper.”

Stephen Holding, managing director of Fletchers, remarks: “Fletchers has undergone a significant transformation since it was acquired by Vision Capital in 2007, and I am very proud of the hard work and dedication of our colleagues which has made the company what it is today. This is an exciting next step for the company and I’m looking forward to the opportunities that being part of Finsbury Foods will bring.”

Fletchers is seeing the benefits of substantial capital expenditure in recent years.

Disposal of Free From Business The acquisition of Fletchers is in line with Finsbury’s new development strategy following last year’s disposal of its Free From business (consisting of Livwell Bakery and United Central Bakeries) for £21.0 million in order to focus on its core cake and bread businesses. The sale of Free From operations marked a shift in approach by Finsbury from a transitionary period focused on debt reduction to a new period of financial stability and the pursuit of growth. Since the disposal, Finsbury has reported strong financial results and has generated cash to pay down debt and resume the payment of dividends. The company has also embarked on significant investment to achieve organic growth.

The sale of the Free From business has also allowed Finsbury to pursue focused, complementary, bolt-on acquisitions to increase the group’s scale in the UK bakery market.

The total consideration payable for Fletchers is approximately £56.0 million on a debt-free/cash-free basis. Finsbury will fund the deal through a significantly oversubscribed placing of new ordinary shares raising £35.0 million at 59p and new debt facilities.

Finsbury directors expect the acquisition to be earnings enhancing

The UK food service bakery market is worth about £900 million per annum, 70% of which is morning goods.

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The enlarged group will generate annual sales approaching £300 million.

during its first full year of ownership and that it will allow the company to benefit from significant cash generation that will support a progressive dividend policy for the enlarged group going forward.

Current Trading Trading within Finsbury since its year end in June 2014 has remained positive and the business remains focused on driving sales growth via additional promotional and innovation investment.

Both the capital investment and overhead reduction programmes completed in the previous financial year have complemented lagging input inflation recovery which has now been completed. Finsbury’s sales are about 5% ahead of the prior year due to a combination of volume, mix and price.

Since March 2014, Fletchers’ financial year has been strong, with sales in line with management expectations. Fletchers is seeing the benefits of substantial capital expenditure in recent years and has secured a number of significant contracts since the 29 March 2014 financial year end which will benefit sales in the second half. J

FOOD & DRINK BUSINESS EUROPE, NOVEMBER 2014

Finsbury Group achieves “Best In Class” using PerformOEE™ software ounded in 1834, Nicholas & Harris is the UK’s largest organic baker and is part of F the Finsbury Food Group, leading manufacturer of cakes, breads and gluten-free bakery goods.

OEEsystems International work with high volume, proactive food and beverage manufacturing companies such as Nicholas & Harris, Muller Wiseman Dairies, Aurivo & Norbev. They are all using OEE as a key business metric in tandem with OEEsystem’s “Best In Class” OEE software, PerformOEE™ to drive efficiencies across the production cycle.

“Typically our Irish, UK, European and US client’s all face the same challenges,” says Arthur Stone, CEO of OEEsystems. “They all looking to reduce costs, increase capacity to meet demand and improve the quality of what they are producing.”

He continues: “These companies are using our innovative software tool PerformOEE™ which is suitable for all types of manufactur-

tion was that our existing system was timelagged and was therefore at least 24 hours old before interrogation,” says Josh Heydon, Operations Director of Nicholas & Harris.

“One of the benefits of moving to the PerformOEE™ software solution is that we have moved to a live real-time data collection system. Our operators are now using live data, they are no longer using paperwork to gather the results and we can use that data to generate performance steps during the course of each shift.” J ing processes including discrete, bulk and continuous processes. It will analyse their production data in real-time, identify the most important root cause issues and opportunities which will deliver the greatest tangible performance improvements for their business. Our clients will usually experience improvements in their OEE Score of between 10% and 30%, within the first six months of using the software.”

“The key challenge for us on data collec-

Our clients will usually experience improvements in their OEE score of between 10% and 30% within thhe initial six months of using the software.

Do You Struggle With Cost Control in Food Manufacturing?

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his month readers are invited to downT load a free copy of the popular ebook: ‘Financial Control in Food Manufacturing: A Senior Manager’s Guide’.

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The techniques outlined in the book are used within the factories of top UK food and drink brands. The book also reveals a best practice approach if you struggle to find the ‘true’ costs of your products and processes. You can use these steps to help you succeed in 2015.

Go online to read these proven methods which already help companies using Sanderson food business software, such as Tunnock’s, English Provender Company, Adelie and Freddy Hirsch.

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To download your free copy of the book ‘Financial Control in Food Manufacturing: A Senior Manager’s Guide’, visit this webpage: www.sanderson.com/costcontrol. J

FOOD & DRINK BUSINESS EUROPE, NOVEMBER 2014

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TRM Packaging – The Retail and Shelf Ready Packaging Specialist RM Packaging is the UK’s leading indeT pendent manufacturer and supplier of retail and shelf ready packaging to the food, drink and FMCG markets. Established in 2001 TRM offers high quality products to its customers which help them achieve commercial objectives and maximise profit.

The company offers a complete range of

conventional corrugated products, boxes, fitments, flat and pre-glued trays and double wall combinations, and has a strong presence in the poultry, snacks, fresh produce, food processing and drinks & beverages sectors.

The company can produce 1 million boxes per day and counts Finsbury Food

Group among its major customers. For further information visit www.trmpack.co.uk. J

Faerch Plast Introduces World’s First Ovenable CPET Skin Packs For Meat & Poultry s part of a long-term growth strategy to A increase market share in the meat and poultry sector, Faerch Plast has launched the world’s first ovenable CPET skin pack.

Offering significant hygiene benefits, this latest innovation from the European food packaging specialist allows the consumer to place the product directly into the oven or microwave without removing any of the immediate packaging or having to touch the raw food.

The company worked with ABP and Bemis Flexible Packaging to develop a lightweight ovenable pack that has significant barrier and strength properties and delivers major benefits for processor, retailer and consumer.

As well as providing the convenience of meat being safely and easily oven or

microwave cooked directly from the freezer or refrigerator without being opened and extending shelf life, the ovenable skin packs are expected to help reduce the risk of contamination, from Campylobacter, for example, as there is no need for the consumer to handle the raw food.

The meat or poultry product is held

securely in place for display which greatly enhances on-shelf impact. Plus the ovenable skin packs can be shown side-on for further increased appeal and brand awareness.

Using special tooling, the ovenable skin packs can also be formed into a contoured top web to pack larger products such as chicken pieces and meats which project above the flange of the tray.

Consumers often complain about ‘offodours’ when removing lids from traditional MAP packs. With these new ovenable skins packs, any odours are transformed during the cooking process into the mouthwatering aroma of just cooked foods. For further information contact Faerch Plast on Tel +44 (0)20 8254 2300 or visit www.faerchplast.com. J

Tetra Pak Launches Industry’s First Package Made Entirely From Plant-based, Renewable Materials etra Pak, the world leader in food processing and packaging solutions, has launched the T industry’s first carton made entirely from plant-based, renewable packaging materials.

The new Tetra Rex® carton will be the first in the market to have bio-based low-density polyethylene (LDPE) films and bio-based high-density polyethylene (HDPE) caps, both derived from sugar cane, in addition to Forest Stewardship Council (FSC ™) certified paperboard.

“Environment excellence is one of Tetra Pak’s strategic priorities and a driver of our product development activities,” says Charles Brand, VP Marketing & Product Management at Tetra Pak. “Together with suppliers, customers and other stakeholders, we are leading the industry towards 100% renewable packaging. We believe that increasing the renewable content of our packages is not only good for the environment, but also offers our customers a competitive advantage in the overall environmental profile of their products.”

Developed in partnership with Braskem, one of the world’s leading biopolymers producers, the new Tetra Rex package will be commercially available in early 2015. Tetra Pak customers using the standard 1 litre Tetra Rex with TwistCap OSO 34 can easily transfer to the new version without the need for any additional investment or modification to their existing filling machines. J 8

FOOD & DRINK BUSINESS EUROPE, NOVEMBER 2014

I PACKAGING INNOVATION

London Hosts Packed Out Packaging Show ackaging Innovations and Luxury P Packaging London attracted record numbers. Over 3,930 visitors, an increase of 10% on last year, 180 exhibitors, 80 product launches, 50 seminars and two new show features all packed into the Business Design Centre in London to celebrate the most innovative in the world of packaging.

The event, which took place on 30 September and 1 October 2014, witnessed a hugely successful fifth year with the likes of Johnson & Johnson, Hotel Chocolat, Tommy Hilfiger, Molton Brown, Harrods and Procter & Gamble walking through its doors.

Alison Church, Event Director for easyFairs’ packaging events, comments: “The attendance figures are absolutely spectacular and we couldn’t be more delighted with how this year’s show turned out.

Packaging Innovations and Luxury Packaging combined have truly established themselves as the exclusive event for branded and inspirational packaging, attracting world-class visitors, speakers and international exhibitors from all corners of the globe. Each year to date the show has grown exponentially, but now with a soldout venue we are focusing on delivering the utmost quality of events to both our exhibitors and visitors in the coming year.”

commented: “Personalised products have raised the emotional appeal in the eyes of the consumer. It is a growing phenomenon and the progress in digital print means it is going to grow even further.”

The show also provided a mass of interactive show features including the Innovation Gallery showcasing the top ten packaging innovations at the show, the Marketing & Brand Directors’ Networking Breakfast, the Lions’ Lair competition, and the Packaging Consultancy Clinic. world-class speakers, the successful complement of The Luxury Packaging Conference, sponsored by Raison Pure NYC, provided an illuminating insight into the world of luxury brands. Expert speakers from industry leaders including Godiva Chocolatier, Diageo, Harrods and Procter & Gamble explored the vital role packaging plays in positioning and promoting luxury and prestige brands.

Bruce Langlands, Director of Food at Harrods stated: “Packaging is always overlooked in comparison to the product, but unless you get the packaging right the product will fail. Every discussion should start with the consumer, if you think about your customers’ needs you’ll start ticking the right boxes.”

Product Innovation If that wasn’t enough many of the exhibitors used the show to launch products or services: SACO lifted the lid on its new Jar Cap range; Airpack Systems its new beer bottle inflatable packaging solution; Benson Box debuted its revolutionary meal solutions carton packs; and SERAM launched a service to help its customers decorate shop windows according to their packaging – the list was never ending!

Maria Almeida, Exports at Leca Graphics, visiting the show, remarked: “Great show, very well organised, much bigger than last year with a huge variety of exhibitors. It’s great to see the luxury side expanding, definitely a packaging show worth attending.”

The sell-out show featured a packed learnShops programme, with speakers from DHL Supply Chain, Taylors of Harrogate, Kimberly-Clark, Unilever, Tesco and many other leading brands.

Luxury Packaging In addition to more exhibitors, visitors and

Drinks Symposium The inaugural Drinks Symposium saw an erudite panel outlining case studies on how original thinking and creative packaging design can create a strong brand identity and build desirability, which was a hit with attending brands from the drinks industry.

Speakers featured: Felicity Murray, Editor of The Drinks Report: Daniel Szor, Owner of the newly opened Cotswolds Distillery; Craig Mackinley, Founder of Breeze Creative; Stephen Marshall, Bacardi Global Marketing Director for single malts; and Sharon Crayton of Ardagh Glass, who

Big Packaging Debate A show favourite was The BIG Packaging Debate, where a large audience gathered to hear a panel of packaging experts discuss: ‘Is Legislation stopping you innovate?’ This year’s panel, chaired by Kevin Vyse, Head of IoPP UK, who remarked: “Currently EEC legislation is a drag on innovation so in the short term both graphic and structural packaging is going to have to work harder than ever before; eventually the use

of technology will prevail and smart technology solutions will become normal to every consumer. In a few years’ time we won’t need to put all this legislation on the packaging - the technology will be there and change the way we give consumers the essential information.”

The next easyFairs UK packaging events will be Packaging Innovations, Empack and Label&Print, taking place at Birmingham’s NEC on 25 &26 February in 2015. For anyone interested in exhibiting, more information can be found at www.easyFairs .com/PIUK,www.easyFairs.com/EmpackU K and www.easyFairs.com /Label&Print or via the show team on +44 (0)20 8843 8800 or PackagingUK @easyFairs.com.

Packaging Innovations & Luxury Packaging London will return on 29 & 30 September 2015 at the Business Design Centre, Islington. J

FOOD & DRINK BUSINESS EUROPE, NOVEMBER 2014

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I PACKAGING DESIGN

Branston Pickle Teams Up With DS Smith For Relaunch ranston Pickle’s new owner, Mizkan B Europe Ltd has teamed up with DS Smith Packaging to help breathe new life into its ‘Bring out the Branston’ slogan.

As part of a major investment in the 90year-old brand, Mizkan have kick started their promotional activity with a new ‘two label’ design, where one Branston Pickle label reads ‘Bring out’ and the other reads ‘Branston’.

“The idea is a quirky way for consumers to have some fun in store and encourage them to remember the iconic strapline ‘Bring out the Branston’, and in doing so it could lead shoppers to double up on their purchase and have both jars in their kitchen cupboard to enjoy the humour at home,”

explains Jeena Patel, Packaging Category Buyer for Mizkan.

“The two label design has been created as a novel and fun way to engage consumers

and remind them that Branston is still here.

Because of this, it was vitally important that the RRP we developed supported the campaign and communicated the message, and DS Smith made everything very simple and straight forward.”

Tony Foster, Sector Director, DS Smith Packaging, says that being involved in the re-launch of one of the country’s best loved products was a great opportunity. “RRP is the last chance to reach the shopper during the crucial ‘moment of truth’ when they’re selecting their purchase on the shelf. When it’s well designed and consistent with the rest of the brand it’s a hugely effective part of the marketing mix.” J

DS Smith Celebrates 10 Titles at EFIA Print Awards Smith has been recognised for its high DSquality design and innovation at the

European Flexographic Industry Association (EFIA) Print Awards 2014.

A total of ten honours were awarded to the corrugated packaging and supply cycle specialist, including Gold for work on the packaging for Lyons Original Tea 600 and Silver for the printing for KitKat Chunky and Mini D'Aim Eggs.

The firm also scooped Silver for its packaging on the Art of Hosting promotion for 12-year-old blended Scotch whisky Chivas Regal.

Tony Foster, UK sales and marketing

director at DS Smith, says: “Brand owners and retailers expect the print on our RRP to help identify goods back-of-store, support brand values on-shelf and increasingly, to help persuade the consumer to buy.

Therefore, well printed RRP is at the heart of what we do.

“We work with our customers on design innovation, creativity and on matching the graphic effect to the pack structure. The result is a sustainable pack that protects the product, maximises shelf space and crucially, encourages the shopper to buy.” J

DS Smith Innovation Keeps Brompton Ahead of the Pack he prestigious Brompton bike company T turned to DS Smith when looking for new packaging, which reflects the quality and strength of the innovative folding bicycle that is famous around the world.

Bromptons’ folding bikes are sold in 45 export markets as well as selling directly to carefully-selected bicycle retailers in the UK, USA, Canada, China and Ireland, and have become a symbol of modern city travel for those looking to leave the car at home and use more sustainable modes.

The challenge set for DS Smith was to raise the standard of the corrugated packaging to reflect the quality of the product.

The response was a one-piece solution that sets a new standard for bike packaging, matching the quality and innovative features of the Brompton folding bike.

All elements of the bike are now securely located within the pack by creative use of an extended glue flange and precise flap arrangements. The internal base flaps fold to form a supportive yet cushioning structure which offers extra protection to vulnerable areas.

The result is that upon opening the bike is presented to the customer in a logical and pleasing manner. The use of locking tabs has enabled Brompton to dispense with tape that previously secured the pack, making the box more aesthetically appealing and simpler to recycle.

Tony Foster, UK sales and marketing director, says: “This is a pack which really demonstrates how working so closely with the customer and truly understanding their needs, produces the highest quality packag-

ing. By using corrugated the packaging is entirely recyclable, and by taking our cue from the fold-up feature of the bike, we have produced a pack which is strong and protects the product in transit, as well as reflecting the quality of the bike itself.”

The pack has been recognised through the Starpack Awards 2014, who have awarded their highest accolade, Gold. J

FOOD & DRINK BUSINESS EUROPE, NOVEMBER 2014

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I BAKERY

Transformed Aryzta Prepared For Sustained Growth Having now substantially completed a three-year transformational programme, Aryzta, the Switzerland-based global speciality bakery group, is now prepared for long-term growth. eadquartered in Zurich, Aryzta has operations in Europe, North America, South America, Asia, Australia and New Zealand.

Created in 2008, following the merger of Dublin-based IAWS Group with Swiss company Hiestand Holding, Aryzta has a primary listing on the Swiss Stock Exchange with a secondary listing on the Irish Exchange. Aryzta is also the majority shareholder (68.8%) in Origin Enterprises, the Dublin-based agri-services group focused on integrated agronomy and agriinputs in the UK, Ireland, Poland and Ukraine.

H

In its last financial year, ended July 31st 2014, Aryzta reported a 6.8% growth in revenue to Eur4.8 billion with EBITA rising by 19.0% to Eur565.8 million. Aryzta’s core food business grew revenue by 10.0% to Eur3.4 billion during the period.

Underlying revenue growth was 2.1%, acquisitions added 11.6% and currency continued to have a negative 3.7% impact compared to the prior year. Food Group EBITA increased 19.6% to Eur486.3 million, as a result of the improved efficiencies being delivered by the three-year Aryzta Transformation Initiative which helped to improve overall food margins for the year by 110 bps to 14.3%.

Speciality Bakery Aryzta’s main business is speciality bakery, a niche sector within the total global bakery market. Artyzta’s products are designed for

bake-off at point of sale to provide consumers with freshly prepared bakery goods, offering value, variety, taste and convenience. The aroma of the freshly baked goods at the point of sale helps to drive consumer footfall and represents a point of difference for Aryzta’s customers in both food service and retail outlets. Aryzta’s customer channels encompass a mix of large retail, convenience and independent retail, Quick Serve Restaurants and other food service categories.

Transformation Programme The successful implementation of the Aryzta Transformation Initiative (ATI) has been designed to change the food operations into a customer centric business, supported by a single instance Enterprise Resource Planning (ERP) system and shared service centres of excellence. This has allowed Aryzta to reposition its capabilities across channels and geographies, and to further strengthened its partnerships with key global customers.

Prior to the ATI consolidation programme, Aryzta’s Food Group was fragmented into over 30 independent bakeries and kitchens serving specific markets or customer segments, with individual marketing approaches, pricing policies and product portfolios.

Continued Investment During the 2014 financial year, the Food Group invested a total of Eur1.14 billion acquiring new bakeries and upgrading existing bakery assets. Acquisitions accounted for Eur863 million of this total with Eur277 million spent on upgrades.

The most significant acquisitions were Cloverhill and Pineridge Bakery, both based in North America. The purchase

price for the two businesses was Eur730 million. Cloverhill is a leading manufacturer of individually-wrapped ready-to-eat snacks and Pineridge Bakery is a top-tier speciality bakery in Canada. These acquisitions significantly enlarge Aryzta’s manufacturing footprint in North America, extend its customer access in Canada and its product capability in the United States, providing an attractive entry point into the high-growth North American snacking market.

The North American business contributed 47% of both Food Group revenue and EBITA in 2014. The European food business is similarly sized with operations in the rest of the world generating 6% of both revenue and EBITA. European Business In Europe, Aryzta operates 20 bakeries and kitchens in 14 countries. Food Europe revenue increased by 14.0% to Eur1.6 billion last year. Underlying revenues grew 2.1%, showing strong continued growth in the in store bake-off market, as a result of further synergies following the prior year acquisition of German baker Klemme, which was the primary driver of the 12.0% acquisition related revenue growth. Aryzta acquired Klemme for Eur280 million providing it with access to more than 2,500 bakery products and a big presence in German retailers Aldi and Lidl.

The impact from currency movements was negligible within the European region during the year. Food Europe EBITA rose by 23.8% to Eur230.3 million, while

FOOD & DRINK BUSINESS EUROPE, NOVEMBER 2014

15

EBITA margins expanded by 110 bps.

The improvement in performance reflects the benefits gained from the reorganisation of the European business into Aryzta Food Solutions and Aryzta Bakeries and the efficiencies derived from the now substantially completed Aryzta Transformation Initiative programme.

Strong Performance Owen Killian, chief executive of Aryzta, comments: “Aryzta has delivered a strong performance for FY 2014, with an increase

of 17.2% in underlying fully diluted EPS in the final year of our three year transformation. Food Group revenue increased by 10.0%, despite an adverse currency move-

ment of 3.7%. Underlying revenue increased by 2.1% and acquired businesses contributed an excellent 11.6% increase in revenue during the period.”

He adds: “Our alignment with the requirements of major food corporations will facilitate long-term growth, while the creation of Aryzta Food Solutions will bring value and differentiation to independent customers. Aryzta remains financially disciplined and very cash generative, which will support continued investment and sector consolidation.” J

I BAKERY

AIT Ingredients is Committed to Being a Real Source of Fresh Ideas to Provide Optimal Added Value to Clients IT Ingredients designs, produces and A markets innovative bakery ingredients for the bread-making industries.

ingredients, AIT Ingredients is a subsidiary of the Soufflet Group. The Group has more than 100 years of experience and expertise in the cereal industry.

AIT Ingredients is developing its expertise worldwide. It has subsidiaries in Russia, Argentina, South Africa, and representative offices in Germany, Spain and Brazil.

For further information visit www.aitingredients.com. Contact for Europe rhoulon@soufflet-group.com. J

The company offers technological ingredients (such as enzymes and malted wheat flour), numerous cereal ingredients (malted, roasted, blends of seeds, etc.), high performance improvers (eg MaxiSOFT, YieldPLUS, GlutenBOOSTER, ProRESIST), bread mixes and concentrates, and a unique choice of sourdoughs.

Experts in formulating tailor-made

I FLAVOURS

Symrise Opens Vanilla Production Site in Madagascar ymrise has opened an extraction facility S for vanilla and is taking another important step in sustainable vanilla production in Madagascar. The investment at the Benavony site amounted to approximately Eur3 million. With the plant, every step in the processing of vanilla can now be performed locally on the East African island for the first time.

Symrise is one of the most important suppliers of vanilla flavours in the world. The company has been active in Madagascar, where 80% of the world’s vanilla is grown,

since 2005. Dr Heinz-Jurgen Bertram, CEO of Symrise, explains: “This site is a further milestone in Symrise’s strategy of establishing the entire value chain for vanilla in its source country and in accordance with strict sustainability criteria.”

The 3,500 sq m facility offers production space for extraction, analysis, quality control and the proper storage of vanilla extracts. The site, which has been completely newly constructed, has a total of 36 ha of space. In the medium term, Symrise plans to process additional important raw materials here such as vetiver, an important and popular fragrance for producing perfumes.

All steps in processing, from fermentation up through extraction of vanilla, now take place in Madagascar. Symrise works directly with vanilla farmers in northeastern

Madagascar in order to ensure the sourcing of natural vanilla as well as guarantee its high quality and seamless traceability. This model of vanilla production is one of the most successful and far-reaching sustainability projects in the entire vanilla industry.

Symrise currently processes about 200 tons of vanilla locally each year, which represents roughly 10% of the annual harvest in Madagascar. Symrise also opened a new fermentation and storage complex in the Madagascan city of Antalaha in February 2014. J

FOOD & DRINK BUSINESS EUROPE, NOVEMBER 2014

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I FRUIT

California Grape Exports Reach Record High For Second Year in a Row

By Susan Day, Vice President of International Marketing, California Table Grape Commission Creating demand for California grapes around the world is job one for the California Table Grape Commission. In addition to a comprehensive promotional and advertising program in the US and Canada, the commission targets 25 additional export markets. e know from research that our campaign messages and visuals resonate with consumers and motivate them to buy more California grapes more often. The trade audience includes retailers and importers, and the campaign is designed to motivate them to carry, promote and buy more California grapes. Display contests, grape samplings, decorative use of Point of Purchase (POP) materials, grape festivals, and cooking demonstrations are examples of retailer promotions being implemented this season in export markets.

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In 2014, holiday-themed promotions with retailers, launched for the first time last year, are being conducted in a number of export markets in Asia: China, Hong Kong, Malaysia, Singapore, Taiwan, and Vietnam; and in Central America. Holiday themed POP was produced to support promotions including those for the Moon Festival in three Asian countries, Diwali in India and Malaysia, Halloween in New Zealand, plus the Christmas/New Year holidays in most of the targeted export markets. These themed campaigns provide another opportunity to target retailers with promotional ideas to gain secondary instore placements and cross-merchandising with other holiday foods. In 2014 another holiday themed promotion will be launched for Children’s Day in Guatemala and Central America. Retailers have welcomed these themed promotions as they provide them with additional California grape movement by focusing consumers on the displays during these holiday periods.

Over the years, the global demand for

California grapes has increased; production in California begins in May and California grapes are available into February.

California produces 99 percent of the commercially grown fresh grapes in the US and production has increased almost 25 percent over the last five years, 20 percent in the last three. In the 2012-13 season, total California grape shipments including in the domestic US and Canadian markets crossed the 100 million 19-pound boxes mark for the first time. Last season, ending January 2014, that record was broken, with 116.2 million 19-pound boxes recorded.

Record Exports Exports of California grapes also reached a new record high volume last season.

According to US Department of Agriculture (USDA) data, exports reached an all-time record of more than 48 million 19-pound boxes shipped around the world to over 65 countries, up 17 percent from the record set in 2012; 45 percent more than the volume shipped ten years ago.

Canada continues to be the largest export market for California grapes, handling 11.8

Top 10 Export Markets – May 2013 through January 2014 1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

Canada China/Hong Kong Mexico Philippines Taiwan Australia Malaysia Indonesia Japan Singapore

1.6 million, Indonesia at 1.5 million, and Japan and Singapore at 1.3 million each.

Planned Retail and Consumer Campaigns The California Table Grape Commission constantly seeks new and interesting ways to remind people of the benefits of eating grapes from California and to motivate increased purchase. Retail and consumer campaigns are planned in Asia, the Caribbean, Europe (United Kingdom), and Latin America, plus in the US, Canada, Australia and New Zealand. These consumer campaigns will again build on the already high consumer demand for California grapes.

The California Table Grape Commission was created by the California legislature in 1967. J

million 19-pound boxes in 2013-14. The same data shows China/Hong Kong at 7.9 million 19-pound boxes, Mexico at 6.6 million, Philippines at 2.6 million, Taiwan and Australia at 1.9 million, Malaysia at FOOD & DRINK BUSINESS EUROPE, NOVEMBER 2014

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I

FRUIT

Camposol Reveals Major Blueberry Expansion into the UK and Europe Camposol, the Peruvian fresh produce business, has unveiled its plans to become one of the largest suppliers of blueberries to customers in the UK and Europe. ast year, Camposol exported 1,000 tonnes of blueberries to markets including the US, the UK and other European countries. Now, a substantial programme of plantings will see its production rise to approximately 2,000 hectares by 2016 - an area that will eventually yield 30,000 tonnes of the fruit a year.

Camposol produces blueberries throughout the year; although exports from the southern hemisphere traditionally occupy the September to December window, focusing on the weeks up to November before Argentinean and Chilean product.

However, with the production of a number of licenced varieties being trialled as a part of the new plantings, Camposol is hoping to extend supplies of southern hemisphere product to Europe until the end of March.

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$140 Million Investment The growth is the result of Camposol’s investment of more than US$140 million in blueberry plants, packing facilities and equipment and which the company says it expects to create an additional 10,000 jobs.

Camposol is embarking on a building project in Peru to house the influx of workers and their families in the areas around the new growing regions. This will include schools, health and transport services and other key infrastructure elements, and forms part of its stated commitment to CSR as its business increases in size.

Camposol is also highlighting the fact that its blueberries are produced using inte-

Expansion into blueberries is part of a diversification project that has seen Camposol develop a broad portfolio of fresh fruit and vegetables, and develop direct supplies into European markets and the US.

20

José Antonio Gómez, chief commercial officer of Camposol.

grated production methods rather than using pesticides.

Diversification Expansion into blueberries is part of a diversification project that has seen Camposol develop a broad portfolio of fresh fruit and vegetables, and develop direct supplies into European markets and the US. Chief commercial officer of Camposol, José Antonio Gómez, comments: “Camposol is extremely excited about the prospects for blueberries in the UK and Europe. We have seen tremendous growth in this category in these markets already, and we believe there is great potential for further expansion,

so this fruit is a very important focus for us. We are already providing European retailer customers with high quality, great tasting fresh products, such as avocados - along with the traceability, food safety, environmental and social corporate responsibility they require – and have developed strong relationships in the process.”

He adds: “Of course these are early days, but we are now making extremely promisingprogress with blueberries. I am confident that the flavour, reliability of quality and all-round delivery of the fruit Camposol is supplying in increasing volume will, in arelatively short period of time, see us become one of the most significant suppliers of southern hemisphere blueberries to these markets.”

Camposol also expects to be supplying frozen blueberries to certain markets.

Based in Lima, Camposol is the largest avocado grower in the world, the largest exporter of asparagus and will soon be the largest blueberry producer. Its portfolio of fresh products also includes grapes, mangoes, mandarins and pomegranates. A vertically integrated company, Camposol is the third largest employer in Peru. J

Camposol produces blueberries throughout the year.

FOOD & DRINK BUSINESS EUROPE, NOVEMBER 2014

QUALITY

I

& HYGIENE

HYGIENE

Improved Bakery Production Facilities hen maintaining a hygienic environW ment there are many elements to be considered by a contractor before any construction can begin. One of the main elements in the food processing industry is the drainage. Having an inappropriate drainage system in a processing room can lead to a number of problems that directly lead to bacteria build-up around the work place.

Recently, ASPEN Stainless has been working with Two Sisters Food Group to develop its long standing Gunstones Bakery in Sheffield. The site has changed somewhat over the years and to keep up with demand ASPEN manufactured and installed some bespoke structures and products from their hygienic stainless steel range.

In the chilled production facilities a small scale stainless steel gantry was erected which had a fully welded and insulated first floor to prevent the chill and moisture permeating. In their production facilities a brand new drainage system was installed throughout consisting of the wide Colorado drain channel and 3 bar covers for an increased

drainage flow rate. The network of drainage systems creates a seamless finish as well as ensuring a safe and clean environment. In addition to a brand new drainage system, ASPEN installed their range of core drilled, stainless steel bump rail and engine swirl wall cladding to protect the building corri-

dors against the daily traffic.

ASPEN has their full product range available online at aspen.eu.com where you can download the product technical data sheets.

To discuss your stainless steel requirements, contact the technical sales team today; 0115 986 6321, aspen@canalengineering.co.uk. J

Sweet Hygienic Resin Flooring production it is vital that the corIandnrectfood flooring is chosen for maximum safety efficiency around the workplace. The main flooring requirements in the food industry are a balance of durability, cleanability and an anti-slip profile, which all contribute to a safe and hygienic environment.

Recently John Lord was commissioned to manufacture and install a suitable anti-slip flooring system throughout the Tilly homemade confectionary facility in Scotland.

The production facilities differed from dry to wet processing where spillages occurred and a daily cleaning regime.

Taking into consideration Tilly’s requirements, John Lord decided the best flooring to use was their Uragard HTAS, which was back-rolled to provide a sufficient compromise between a high grade, anti-slip profile and the cleanability of the floor. Tilly chose the bright ‘Buff’ yellow colour

from the range to help differentiate from their dark fudge product.

British manufactured and installed throughout the UK and internationally, the Uragard polyurethane resin flooring range is ideal for the food processing industry. Each

product has a different attribute offering a floor solution for any environment. In environments where meat, fat and grease is present, the most aggressive anti-slip grade floor is ideal and provides the vital safety under foot to all operatives in the area. In environments where dry processing and packaging is present, a lower grade of anti-slip is preferred decreasing cleanability times and providing excellent abrasion resistance for high volumes of pedestrian and vehicular traffic.

John Lord takes a ‘Total Responsibility’ on every project involving their exclusive resin flooring range. From floor design, manufacture and substrate preparation, through to installation and after sales support, John Lord is committed to meeting your requirements. For advice on the best 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, NOVEMBER 2014

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I LEAN MANUFACTURING

25 Years Problem Solving For the Food and Beverage Industry pE Process Ltd is celebrating 25 years H in business as a successful problem solver for manufacturers with very unique challenges. Food and beverage producers face health and hygiene, commercial and environmental scrutiny as they balance consumer demand for affordable, top quality, tasty food. With the spiralling cost of raw materials it is an almost impossible juggling act to achieve.

Founder and MD Andrew Allman, realised when he started the business in 1989 that environmental targets and cost were two of the biggest issues facing food manufacturers. Andrew and his HpE Process Ltd team believe it is an opportunity to develop solutions that resolve an immediate problem but safeguard future operations.

The HpE Process Ltd design team has developed two innovative products which boost food and beverage manufacturers sustainability and deliver lean manufacturing with long term commercial and legislative benefits.

Pigging System

time? With customer service our priority we advise the best option seeking to future proof any installation so that they get a long term benefit.

“Typically, a 90m run of 3” line will hold between 400-500 kg of product. An effective recovery system will rescue 99%ofthis.

Merely flushing the product out with water would only recover 50% as useable product, with the rest (200 to 225 kg) being wasted.

“In addition, one of our pigging systems mechanically scrapes the pipe surface, leaving only a microns thick smear of product which can be cleaned much more efficiently and faster. This delivers shorter cleaning times, significant reduction in effluent, reduction in energy used in heating the cleaning medium and reduction in cleaning chemical usage.

“Colmans Foods, manufacturers of condiments, wanted to reduce waste and rescue product on its sauce production lines. An innovative organisation it is always looking to boost effective production while maintaining strict health and hygiene systems and meet legislative and their own environmental targets.

“Commercially the pigging system installation has been a massive success delivering their cost savings and giving payback within their target time. It is also providing lower maintenance costs.

“For a forward thinking company such as

Initially designed as a means of rescuing product trapped in production pipeline when they were shut down at the end of a shift for cleaning, the HpE Process Ltd pigging system has evolved into a more holistic system which can reduce food and drink waste, cut Cleaning in Process (CiP) times, reduce labour costs, help meet environmental targets through the reduction in water, energy and effluent use while delivering fast paybacks to businesses.

“HpE Process Ltd pigging systems really are an holistic solution for many food producers faced with high waste, water and energy bills and constant maintenance issues,” explains Andrew. “The HpE Process Ltd team will investigate the customer’s unique problems and objectives. Are they keen to simply save food and cut costs or are they looking for a genuine innovative long term solution that The HpE Process Ltd team. will still be operational in 15 years 22

Colman, which is part of Unilever it is the environmental dividends they appreciate.

“They regard waste as more than a commercial cost but an environmental blight.

Cutting that has boosted every other sustainability target.”

Hygienic Twin Screw Pump

HpE Process Ltd’s Hygienic Twin Screw Pump solves the cleaning problem for manufacturers needing to gently transfer delicate, viscous or solids laden products without damage.

Traditional rotary lobe pumps or circumferential piston pumps (CPP) are difficult to clean in situ – they are selected for the product flow rate and cannot run at the speeds required for in place cleaning.

They need a separate cleaning pump and a CIP by-pass line around the product pump.

A single Twin Screw pump can run much faster than a lobe or CPP pump allowing a much simpler and cheaper installation.

They boost lean manufacturing by cutting cleaning times, with lower CIP usage, reduced effluent, reduced chemical usage, reduced energy usage and increased plant ‘up time’. J

FOOD & DRINK BUSINESS EUROPE, NOVEMBER 2014

I CUTTING, SLICING & DICING

Optimum Performance From Weber Slicing Lines he requirements from any slicing line T will always be to maximise the efficiency from the line and the products to be sliced.

This relates to two key areas: yield recovery and capacity.

For many years now Weber has been constantly pushing the boundaries of development in the performance of slicing lines.

This has been in terms of capacity, with slicers getting bigger and faster, and also in the technology associated with scanning and weighing systems to provide optimum control and accuracy. These two key factors are now being combined even more closely within the same slicing lines, providing the optimum solutions for both capacity and yield recovery from a single machine capable of slicing a range of products.

This is being achieved through the use of proactive scanning technology, which has advanced significantly in the last few years, in combination with the Weber Vario gripper system. Multi track scanning, along

with fully independent control of each piece of product being sliced, now provides a high capacity solution with the accuracy needed to ensure the lowest cost of operation and the highest possible yield recovery.

Irregular shaped and inconsistent length products can now be sliced with confidence in multiple log applications where higher capacity is needed. Historically this would have been at the expense of accuracy which obviously has a direct negative effect on

attainable yield recovery.

This technology can now be employed on the medium sized Weber orbital blade machines though to the complete range of the Involute blade machines and right up to the 905 series machine, with its massive 620mm wide cutting throat. Proactive scanning technology is now available to scan products up to 785mm wide and up to 1600mm in length, utilising LED technology which allows open frame systems to be used that are robust and simplistic in terms of operation, maintenance and hygiene.

Another relatively new addition to the Weber “Proactive� range is the X-Ray scanning system. This provides significant benefits if products with holes or widely varying fat-to-lean ratios are to be considered.

The Weber Proactive controlled Vario systems are now being widely used across a broad spectrum of the food industry including applications in bacon, cooked meats and cheese. J

FOOD & DRINK BUSINESS EUROPE, NOVEMBER 2014

23

I FOOD PREPARATION

Fresh Meat Portioning - From Crust Freezing to In-laying - In a Single Line he capability to have a whole line dediT cated to the portioning of fresh meat is now available in the UK and Ireland from Interfood Technology following the introduction of TVI’s total concept.

TVI’s new line offers crust freezing, slicing, portion control, shingling and tray dispensing, providing the ideal solution for a wide range of fresh meats – beef, lamb, pork and turkey – for both bone-in and bone-less products as well as dicing, all on the same machine. The patented gripperless press and slice system ensures excellent yield and reduced give-away, with figures typically less than 3% give-away for bonein products and less than 2% on bone-less.

It also provides significant advances in terms of pack presentation, a major benefit as retailers look to maximise shelf appeal.

TVI is a name that is becoming synonymous with fresh meat slicing as major food

24

producers increasingly recognise the benefits that it brings to their operation. Central to the line is the GMS 500 singlecut multifunctional portioning system which even shingles the product, making it easier to inlay into trays. Flexibility is also ensured with the capacity to change product type in minutes, with the portioner featuring up to12 different cavities to enable quick changeover for a wide range of products, from sirloin steaks to pork loin steaks, from cutlets to belly strips, from dicing to neck steaks, without the need for tools, thereby optimising machine uptime. This flexibility also removes the need for different, separate slicing lines to deal with bone-in and boneless product. With just the change of a mould and a blade, the switch can be made from bone-less to bone-in loins in minutes.

Through the innovative design of the product transport and slicing system, the

meat can be processed without intensive crust freezing or tempering being required.

This reduces energy costs, means less driploss and again adds to a better visual quality in store.

When it comes to investing in a line, the support from the supplier is a vital element in the equation. Interfood Technology, the sole supplier of TVI pressing and slicing systems in the UK and Ireland, has a TVItrained team dedicated to providing the knowledge and support necessary to optimise productivity. J

FOOD & DRINK BUSINESS EUROPE, NOVEMBER 2014

I GROCERY MARKET

UK Grocery Market Enters Deflation he latest grocery share figures from T Kantar Worldpanel, for the 12 weeks ending 12 October 2014, show that like-

compared to recent months, but sales were still up 27% versus last year resulting in a market share of 4.8%. Lidl’s sales grew by 18%, with its market share standing at 3.5%.

for-like prices have declined by 0.2%, pushing the UK grocery market into deflation.

Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel explains: “While the supermarkets are battling it out on price, the real winners are consumers. Extensive price cutting by some supermarkets in a bid to win the price war means that customers are saving on everyday items such as vegetables and milk.”

He continues: “While price is a key battle ground among the big four, at the top end of the market Waitrose secured a record grocery market share of 5.2%. Impressively, it has boosted its sales by 6.8% over the past year, continuously growing its sales every month since March 2009.”

Meanwhile at the opposite end of the market, Aldi’s growth slowed slightly

Fraser McKevitt concludes: “We are seeing clear polarisation of the market with both the premium and discount ends of the market gaining share, while the mainstream grocers continue to be squeezed in

the middle. Asda has again emerged as the winner among the big four, growing sales ahead of the market, up 1% over the past year, boosting its share to 17.3%. Tesco is yet to see substantial improvement, however it seems it may be turning a corner as sales are down 3.6%, which is the grocer’s best figure posted since June. Meanwhile both Sainsbury’s and Morrison’s sales slipped back, down 3.1% and 1.8% respectively.”

Grocery inflation has seen its thirteenth successive fall and now stands at -0.2% for the 12 week period ending 12 October 2014. This means shoppers are now paying less for a representative basket of groceries than they did in 2013. This is the another record low since Kantar Worldpanel began recording GPI in October 2006 and reflects the impact of Aldi and Lidl and the market’s competitive response, as well as deflation in some major categories including vegetables and milk. J

Big Four UK Grocery Retailers’ Profit Margins to Shrink Further perating profit margins of the big four O UK grocery retailers - Tesco, J Sainsbury, Asda and Wm Morrison Supermarkets - are likely to shrink further over the next 12 to 18 months, as they cut prices to reverse declining sales and curb the losing battle of market share to discounters, says Moody's Investors Service in a recent Special Comment report.

"Further price cuts could be particularly credit negative for Tesco and Morrison as their cost cutting and efficiency measures are unlikely to fully offset the negative impact of lower prices on their margins," says Sven Reinke, a Moody's Vice President -- Senior Analyst and author of the report.

Moody's notes however that Morrison is better positioned than Tesco and Sainsbury to adapt, through store portfolio and cost structure adjustments, to the changing environment in which discounters have a larger market share. Morrison's store network comprises smaller supermarkets and only a very few are larger

than 50,000 square feet and thereby most This will put additional pressure on the exposed to declining footfall. Morrison’s Big Four’s large stores, where footfall concentralised online distribution network tinues to decline. may also be more scalable if online growth Moody's report, entitled ‘UK Big Four continues as expected. to Suffer Further Margin Declines as Moody's notes that discounters Aldi and Discounters Take Bigger Slice’, is availLidl are now entrenched and their com- able on www.moodys.com. J bined market share could reach 10% over the next couple of years from 8.3% today. Over time, their UK market share could be similar to that in other European countries at around 12%-15%. Moody's projects that discounters' 20%-30% annual like-for-like UK sales growth will slow, but some of the anticipated lower like-for-like Morrison is better positioned than Tesco and Sainsbury to adapt, through growth could be offset store portfolio and cost structure adjustments, to the changing environment by new store openings. in which discounters have a larger market share.

FOOD & DRINK BUSINESS EUROPE, NOVEMBER 2014

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QUALITY

& HYGIENE

I FOOD SAFETY

Unsure you are doing your food safety system right? A new standard can help you

By Maria Lazarte, ISO s a food manufacturer or a regulator, A safety is one of your biggest concerns.

But how can you make sure that your food safety management system (FSMS) follows global best practice? If you are looking for advice to ensure your FSMS is up to standard, then ISO 22004 can help you out.

The Basics * ISO 22004 is part of the ISO 22000 family of standards. ISO 22000 is the International Standard for food safety management. Unlike other FSMSs, ISO 22000 is unique in that it has an extra layer of hazards control. Most FSMSs require: * Prerequiste programmes (PRPs) * Critical control points (CCPs) * However, in addition to those two, ISO 22000 adds a third layer: * Operation prerequisite programmes (OPRPs)

What Does This All Mean?

If the acronyms and the terminology are getting to you, then you will understand why ISO 22004 is useful.

The parent standard, ISO 22000, gives you all you need to set up an FSMS. It follows the same format as all other ISO management system standards and this consis-

tency makes it easier for organizations to implement multiple ones. However, for many of us, additional guidance would be helpful and this is exactly what ISO 22004 gives you.

What’s in it For You? ISO 22004 is a companion and a guide to ISO 22000, and does not add any new requirements. But because it is a guidance document, it goes into more detail and focuses on areas that may need more explanation.

According to Claus Heggum, Co-convenor of the working group that developed the standard, ISO 22004 just makes things easier. “Say you are designing a food control system and are struggling on how to categorize the different control measures you have at your disposal in your hazard control programme,” he says, “ISO 22004 will help you to smoothly differentiate between PRPs, OPRPs and CCPs, which is not always easy to do!”

With ISO 22004 you will learn that typical PRP measures include basic precautions like washing your hands, keeping the processing area tidy or a basic cleaning programme.

CCPs on the other hand are the most important and efficient hazard reduction measures, like a cooking or heating step that kills bacteria.

An OPRP is an in-between safety measure, like cold storage.

“There is much more that you can learn

Maria Lazarte.

from ISO 22004, like understanding the difference between monitoring, verification and validation,” says Claus Heggum. “ISO 22004 will make it easier for users to apply and adapt ISO 22000 to their own specific contexts.”

Who is it For? ISO 22004 will be useful for any organization in the food supply chain looking to implement a food safety management system based on ISO 22000, from feed producers and primary producers through food manufacturers, transport and storage operators, and subcontractors, to retail and food service outlets (as well as related organizations such as producers of equipment, packaging materials, cleaning agents, additives and ingredients). Service providers will also find it helpful.

Want to find out more? Get the standard from your national standards body or the ISO Store. J

Maximum Process Safety and Productivity No Longer at Odds With One Another ood companies are under growing pressure to weighing range of 3 grams to 10 kilograms and F comply with increasingly strict regulations checks up to 600 products per minute. The for food safety, while simultaneously maximis- C3000 System also has a range of functions ing the productivity of their facilities. MettlerToledo Garvens has introduced the C3000 System, which both increases the safety of the production processes and ensures high throughput rates.

This new generation of checkweighers is a modular platform which is available in numerous different configurations and offers high weighing accuracy. It covers a calibratable 26

which guarantee safety in food production. The system helps manufacturers to improve overall system productivity and reduce overall operating costs, meaning that companies can therefore be ready for a sustainable future while competing on international markets.

For more information about the C3000 System or other areas of dynamic checkweighing technology, visit www.mt.com/ garvens. J

FOOD & DRINK BUSINESS EUROPE, NOVEMBER 2014

QUALITY

I

& HYGIENE

FOOD SAFE LUBRICANTS

State-of-the-art Food-Grade Lubricants Contribute to Economic Success The most recent lubricant developments contribute to economical and successful plant and machine operation. With safety such a key consideration, we look at how safety, reliability and cost effectiveness are achieved. egarding the lubricant as an investment R in economic efficiency rather than just as a commodity, pays off in many ways. Of course, the price of the lubricant is a factor, but it is more important to look at the entire cost-benefit calculation of a given application. If synthetic high-performance lubricants tuned to the particular application are used, the total cost of operation decreases. Such lubricants help to save costs even though their purchase price is higher than that of standard lubricants as price is just the tip of the iceberg; hence the potential for cost savings can only be detected on a second look. There, hiding from first sight, are the savings in down-time costs, maintenance, energy, spare parts, storage, disposal and of course lubricant consumption that speciality food-grade synthetic lubricants contribute to reducing.

Bearing Lubrication When it comes to bearing lubrication, speciality greases ensure extended maintenance intervals. One such recent example is the water pump bearings on a pea processing

production unit.

The process lines wash and provide fresh garden peas to their 20 canning lines over the 3-month pea processing season; it is vital that processing can be almost continuous. In previous years, the bearings on the water pumps had been suffering from unreliability during use and failure of two or three of these bearings during the processing season had not been uncommon. Each failure resulted in 1.5 hours’ downtime while the bearings were replaced and would halt the processing of up to 8 tonnes of peas or 25,000 cans, valued at over Eur18,000.

The customer changed their currently specified white-oil based lubricant to the PAO- based Kluberfood NH1 14-261, providing excellent water resistance and wear reduction characteristics that would enable longer bearing life. No bearing related failures have now occurred since the 2011 season saving significant cost and time.

Speciality lubricants also contribute to economic and environmentally-friendly operation. High-performance lubricants tailored to a particular application facilitate reliable low- or minimum-quantity lubrication while making efficient use of energy and therefore contribute to conserving resources. J

Safety, Performance and Lubrication Life High performance lubricants registered to H1 and certified to ISO21469 contribute significantly to equipment performance and safe production methods.

At the same time, with the specification of the correct lubricant without compromise, substantial costs savings in lost production, personnel demands and materials can be made.

Lubricants tuned to the application at hand help to avoid such costs and are instrumental for trouble-free operation of plants and machines.

FOOD & DRINK BUSINESS EUROPE, NOVEMBER 2014

Economic Advantages of High-performance Lubricants High-performance lubricants offer economic advantages, for example by offering: • reliable functioning of components, plants and machines • long maintenance intervals • performance increase • high energy efficiency • low lubricant consumption • safety and reliability.

29

I BUSINESS PERFORMANCE

Food and Drink Businesses Hold Top Places Amongst UK's Leading Private Mid-market Growth Companies The food and drink industry remains strongly represented in the 10th annual Sunday Times Grant Thornton Top Track 250, the league table of the UK's leading private mid-market growth companies, with 40 companies earning places. he food and drink industry is well represented on the league table, second only to the automotive industry with 50. The combined sales of all 40 companies were £10.5 billion, a year-on-year increase of 13%, while profits totalled £490 million, up 20%. The companies also employed more than 80,477 people.

T

Leading Player The largest food and drink company in the league table is R&R Ice Cream at fifth place (up from 23 in 2013), with sales of £605.5 million – see Panel. Other food and drink companies to feature in the upper scale of the list include Warburtons, Hillesden Investments (owner of Faccenda poultry), food distributor Argent Group Europe, Burton's Biscuit Company, protein distributor Westbridge Foods, Nando's, Pret A Manger and Direct Wines. 17 of the companies are new to the league table for 2014.

Trefor Griffith, head of Food and Beverage at Grant Thornton UK LLP, comments: “It's fantastic to see privately owned mid-sized food and drink businesses making such a positive contribution to the UK economy, several which we have helped on their journey. These mid-sized

businesses play an integral part in driving the UK's strengthening recovery. Many are renowned for their innovation and perform

strongly in international markets as well as on their home turf. Despite the recent challenging trading conditions, it's encour-

Top 10 Leading Mid-market Food and Drink Private Companies in Britain Rank [2013 rank]

Company

Activity

5

R&R Ice Cream

[12]

ice cream manufacturer

9

Warburtons

[19]

Baker

14

Hillesden Investments

[n/a]

Poultry producer

17

WSH

[29]

Caterer & restaurateur

18

Argent Group Europe

[24]

Food distributor

23

Pret A Manger

[37]

Sandwich shop operator

32

Nando's

[44]

Restaurant operator

57

G's

[n/a]

Salad and vegetable grower

59

Westbridge Foods

[122]

Food service and logistics

72

Burton's Biscuit Company

[71]

Biscuit and snack maker

HQ Location

Sales, £m

Operating Profit, £m

Staff

Financial year end

North Yorkshire

*605.5

*46.9

3,133

Dec 13

Bolton

562.1

34.6

4,534

Sep 13

Northampton

536.2

31.8

3,144

Apr 13

Reading

543.8

23.2

11,840

Dec 13

Central London

*529.8

*11.7

933

Dec 13

Central London

509.9

23.7

7,771

Jan 14

Southwest London

485.2

58.2

10,245

Feb 13

Cambridgeshire

380.2

6.8

3,024

May 13

Malvern

*366.1

*12.3

135

Dec 13

St Albans

*336.0

*26.8

2,040

Dec 13

Warburtons is the second largest food and drink company in the Sunday Times Grant Thornton Top

* Pro forma, draft or not filed at Companies House

Track 250.

FOOD & DRINK BUSINESS EUROPE, NOVEMBER 2014

31

aging to see these businesses prosper and thrive.”

He adds: “Through our 'Agents of growth,' campaign we champion policy changes that will help this dynamic segment of the market and support them to find a voice and be heard, and I hope that this will help them grow further."

National Picture The Top Track 250 complements the Top Track 100, which features Britain’s biggest private companies. It ranks the next 250 biggest companies by sales, pro-

vided either sales or profits have increased by at least 10% year-onyear. The 250 companies generated combined sales of £70 billion, operating profits of £4.4 billion and employed a R&R Ice Cream is the largest food and drink company in the Sunday total of 412,000 staff.

The Top Track 250 is Times Grant Thornton Top Track 250 league table. compiled by Fast Track, the UK’s leading networking events and neurs, with title sponsorship from Grant research company focusing on top-per- Thornton and main sponsorship from forming private companies and entrepre- Barclays. J

R&R Ice Cream is European Leader R&R Ice Cream currently operates nine production sites across the UK and mainland Europe with overall annual production of over 800 million litres from more than 100 production lines. The company was established in 2006 following the merger of Richmond Foods in the UK and Roncadin in Germany. The acquisitions and subsequent integration of Rolland and Pilpa, based in France and Eskigel in Italy have allowed R&R Ice Cream to become Europe’s largest private label manufacturer of ice creams and lollies.

Ibrahim Najafi, chief executive Headquartered in the UK at of R&R Ice Cream.

Leeming Bar, R&R Ice Cream’s

British manufacturing sites are located at Leeming Bar, Skelmersdale and Bodmin. Its factories in mainland Europe are at Osnabruck in Germany; Plouederne, Vayres and Dange St Romain in France; Terni in Italy and Mielic in Poland.

R&R Ice Cream manufactures a wide range of own label products for the leading supermarkets in the UK and mainland Europe. In addition, it produces some of Europe’s bestknown brands such as Nestlé, Mondelïz, Oasis, Disney, Pilpa, Kelly’s and Zielona Budka.

The dynamic company has now expanded beyond Europe with the recent purchase of Peters Food Group, the leading manufacturer of take-home ice cream in Australia.

Product innovation, a sustained focus on operational efficiency and a desire to maintain corporate growth remain the key platforms on which R&R Ice Cream is building for the future.

MATERIALS HANDLING

Doosan Launches New Environmentally-friendly, Cost-effective Forklifts Range oosan Industrial Vehicle has launched D five new 2.0t to 3.5t capacity forklifts incorporating Doosan’s revolutionary, award-winning G2 diesel engine. By utilising the Doosan G2 engines, the new D20S7, D25S-7, D30S-7, D33S-7 and D35C-7 models will meet stringent new EU emissions standards without using a costly diesel particulate filter (DPF). They also set new standards for proven low fuel consumption at a time of sharply increasing costs for forklift users.

Tim Waples, Director of DIV UK, comments: “New Euro Stages IIIB and IV regulations require the latest engines to achieve an enormous 90% reduction in emissions of gases and particulates compared to the power units they replace, a real challenge presented to engine manufacturers. To meet this challenge our in-house engine division invested millions of pounds developing an engine that changes the game in diesel combustion, without the operator ending up out of pocket.”

Winner of the Innovation category at the FLTA Awards 2014, the G2 has lower fuel consumption, longer maintenance intervals and maintenance-free after-treatment systems that reduce the total cost of ownership over the life of the engine. This means the payback period is faster than for any other engine in this class.

Using Diesel Oxidation Catalyst (DOC)

Doosan’s new D30S-7 forklift incorporates the revolutionary new G2 engine.

exhaust treatment technology along with an Exhaust Gas Recirculation (EGR) system, and on sale from October, the new range of ‘DPF free’ engines is available in 2.4-litre and 3.4-litre versions. In tests at the renowned Millbrook Proving Ground in Bedfordshire, the smaller engine recorded some of the best fuel consumption figures ever seen in the forklift industry. Fuel consumption was reduced by more than 30% to as little as 2.09-litres per hour in standard mode and 1.67 litres per hour when the optional speed limiter is deployed.

“The Doosan G2 engine represents a watershed moment in forklift diesel engine design,” concludes Tim Waples. “It is a genuinely innovative approach to the challenge of maintaining performance while meeting exacting emissions standards, and will become the benchmark engine against which all others in the market are measured.”

For further information visit www.doosanforklifts.co.uk. J

FOOD & DRINK BUSINESS EUROPE, NOVEMBER 2014

33

O’Toole Transport – Irish Haulier of the Year 2015 ince its inception in 1996 O’Toole Transport has grown S from a one truck operation into the

cost-effective results with a high level of customer service.

O’Toole Transport produces customised logistical solutions for customers in order to achieve synergy effects in all areas of logistics.

current fleet of 60 trucks and 90 trailers.

O’Toole Transport is a familyowned business based in Galway.

O’Toole Transport is one of the leading logistics and transport companies in Ireland, specialising in national and international distribution with depots in Galway, Dublin, Waterford.

The company’s present status as Ireland’s premier road haulage company can be traced back to the 1940’s.

Pioneering Spirit Now 18 years and 250 customers stronger, building on a track record of innovation and vision, proven throughout recent major economic shifts, now more than ever, O’Toole Transport is fuelled by the pioneering spirit that inspired its founders to continually transform the Irish transport industry.

O’Toole Transport is a dynamic young

company with a modern fleet. The average age of the vehicle is just four years. Having a wide selection of high spec trucks and trailers, the company provides refrigerated, multi-temperature controlled and ambient freight in food and beverage, fruit, vegetable, fish, pharma, plant, and electronic sectors. Using GPS and GPRS technology O’Toole’s customers can track online their delivery 24/7 from anywhere in the world.

O’Toole Transport works with some of the world’s biggest food companies throughout Europe. Its daily scheduled departures from Waterford, Cork, Killarney, Limerick, Galway, Sligo and Donegal back to Dublin offer customers

BRC Accredited O’Toole Transport has been awarded BRC (British Retail Consortium) Storage & Distribution Accreditation for food products stored at and distributed from its distribution centre in Galway. The BRC Global Standards are used by certification bodies across the world to enable suppliers to achieve globally-recognised standards for food products and to ensure that best practice is established and maintained.

To achieve certification, O’Toole Transport was audited and scored by independent assessors on the standard of storage and distribution of ambient, chilled and frozen food products and associated food packaging, product inspection, quality control inspection; and the chilling, freezing, tempering and defrosting of food products.

The company proved to achieve globallyrecognised standards for food products and ensured that best practice is established and maintained. J

The Evolution of O’Toole Transport

O’Toole Refrigerated Transport’s attention to detail in a complex business such as seafood distribution was rewarded by winning the Fleet Transport Irish Haulier of the Year 2015 award. Laurence O’Toole, Managing Director of O’Toole Transport, is pictured with the award.

34

1996 – Company starts with one Scania Refrigerated vehicle, with the intention of providing transport services to the local fishing industry.

2000 – O Toole Transport secure a contract with the a major cash & carry group to deliver from their depot in Galway to the Connaught region.

2001 – Commenced international transport for a local Salmon producer.

2005 – Won a major contact with the world’s biggest seafood company and commenced a European Seafood groupage service.

2010 – Set up a chilled & frozen distribution service to every city in Ireland.

In 2012 O Toole Transport awarded BRC (British Retail Consortium) Storage & Distribution Accreditation for food products stored at and distributed from its distribution centre in Galway.

2013 – After setting up a national network of depots O’Toole Transport offers a full chilled & frozen pallet network throughout Ireland.

2014 - Awarded the 2015 Fleet Transport Irish Haulier of the year.

FOOD & DRINK BUSINESS EUROPE, NOVEMBER 2014

Change in Agri-food Logistics Cannot be Ignored he argument for a transformation in food and drink logistics is becoming T more compelling. Rising population and the increased demand for food will lead to additional pressure on production, with more deliveries, more damaging emissions and more strain on transport networks.

Take into account rising energy prices too and companies will be driven (either by legislation, consumer opinion or cost) to consider the social and environmental impact of their supply chain decisions meaning a move away from a single bottom line of profitability to a Triple Bottom Line of economic, social and environmental performance.

Whilst many companies choose to accept this view for the long term, others see an immediate move towards sustainability as a trade-off, with an improvement in sustainability performance impacting negatively on the bottom line. But is there no point where all factors can be optimized to create a Win-Win scenario?

Project SCALE Step Change in Agri-food Logistics Ecosystems (Project SCALE) believes there is. This three year project, working across North-West Europe, is demonstrating the business benefits of improving environmental and social performance whilst remaining economically competitive.

Partly funded by INTERREG IVB

North-West Europe, the five partners of the Project - Cranfield University, DHL, EFFP, University of Wageningen and University of Artois – have been working together to deliver new tools and frameworks that the agri-food sector can use to secure a step change in operational supply chain practices. These are being piloted across a range of food networks to demonstrate how the new approaches can deliver real commercial benefits.

Siôn Roberts, Senior Partner of EFFP, explains: “The exciting thing about Project SCALE is applying academic rigour to the different business challenges and creating a new and structured approach to help businesses improve their supply chain sustainability. Research has highlighted the lack of any common industry metrics leaving many businesses unsure about how to start the process.”

Creating a New and Structured Approach “Transportation sustainability is more than generating a carbon footprint report; it is about understanding the impact transport has on such things as infrastructure, other road users and noise pollution,” states Roly Taplin, VP Specialist Networks, DHL. “Identifying the impacts a supply chain has makes it possible to benchmark and understand where improvements can be made.”

Responding to these business concerns, SCALE has developed a series of workshops designed to help an organisation define their sustainability aspirations.

Professor Hamid Allaoui, Université d’Artois, explains: “We are developing decision support models featuring sustainability indicators that can be ‘traded off’ against each other. Potential supply chain scenarios can be compared so that the optimal solution can be identified and pursued.”

Increased Collaboration Collaboration is key to unlocking supply chain efficiencies. Logistics operations in supply chains can be executed in a significantly more sustainable fashion with increased collaboration between businesses.

Professor Jack Van der Vorst, University of Wageningen, explains: “Low hanging fruit can be picked by redesigning processes and infrastructures within company walls; more significant improvement requires a

transition from short-term purchasing to strategic relationships with long-term contracts.”

Project SCALE has also developed a number of collaboration models to help companies with the challenge of identifying partners and achieving appropriate levels of collaboration.

Dr Denyse Julien, Cranfield University, explains: “Collaboration involves working with others to achieve something we cannot achieve on our own. However it requires dedication and investment. Successful collaboration can create synergies for the organizations involved, but it can also backfire if not handled with care."

The option to maintain the status quo will not last forever. The choice between either sustainability or profitability is being replaced increasingly with a requirement for more complex decision making.

Businesses who are collaborating in their supply chain and optimising their social and environmental practices are doing so because they understand that it can drive better business performance across the Triple Bottom Line and ‘futureproof’ their company against the changes ahead.

Opportunities exist for businesses to engage with Project SCALE through conferences, workshops and Pilots. For more information visit www.projectscale.eu or contact info@projectscale.eu. J

FOOD & DRINK BUSINESS EUROPE, NOVEMBER 2014

35

Now is the time ...

RWL Water and it’s wide range of technologies provide innovative waste-to-energy, recovery & reuse, and food processing solutions for wine, fruit juices, meat processing, whey, sugar cane and more, while respecting the environment and creating new green energy.

to make the most of your resources with the right solution.

RWL Water has more than 30 years of experience in the custom design of food processing solutions. Our unique solutions use membrane separation, food graded media, ionic exchange resins and absorbent resins.

These cost saving solutions are ideal for: Demineralization Decolorizing Debittering Chromatographic separation

CONTACT US TODAY to find out how you can reduce your water usage, wastewater and sludge disposal, and operating costs.

info@rwlwater.com • rwlwater.com

+39 049 8704817

RWL Water offers advanced solutions for wastewater treatment, processing and product recovery. We are a global leader in the design and implementation of SMB chromatography plants for the purification of fruit juices and the production of organic fructose without the use of chemical reagents.

rwlwater.com

I WATER & WASTEWATER TREATMENT

RWL Water – A Global Leader in Custom Food Processing WL Water is a leading-edge sustainable R water, wastewater and reuse solutions company. With more than 7,000 successful installations and strong customer references in more than 70 countries, RWL Water has proven its capability to provide innovative global water, wastewater and energy solutions whenever and wherever they may occur.

Access to water is critical for the food and drink industry, both in terms of quantity and quality. Clean water is an important product because it is a main ingredient and key processing element in all food manufacturing processes. There are two main challenges facing the food and beverage industry in terms of water use: reducing levels of process water consumption by improving water efficiency without compromising food hygiene requirements and maintaining sustainable water supplies throughout the food chain, including agriculture.

The food and beverage sector is a multibillion dollar market for water, wastewater and wastes technologies; the global industry uses around 65 km3 per year. The sheer diversity of the products, processing steps, and treatment needs of food and beverage companies facilitates access to the market.

There are a number of global trends creating significant opportunities for water technology companies, including: heightened wastewater quality regulations, increased interest in environmental efficiency and growing water scarcity concerns will ensure that capex on water technologies by Food and Beverage companies will reach $6bn in 2020.

Flexible and Innovative Company As a flexible and innovative company, steeped with expertise and customer relationships, RWL Water can offer quick response time and gap the bridge between efficient water management and improved (reduced) water consumption. RWL Water specializes in finding the right solution to help manufacturers reduce process water requirements and provide efficiencies throughout the plant. RWL Water is known among its customers as an experienced, highly responsive team that values relationships, understands organizations’ needs, and delivers leading-edge sustainable solutions and technical support at a competitive price. Specifically, RWL Water’s technologies allow food and beverage plants to meet discharge quality standards in a cost-effective way, creating opportunities to reuse wastewater as feed water for boilers, equipment cleaning and other ancillary activities.

With thirty years of experience in the use of ionic exchange resins, RWL Water offers various processes for the treatment and enhancement of food and beverage products such as grape must, whey, concentrate juices, etc. Besides demineralizing or decolorizing juices, RWL Water’s processes can recover natural colors, flavors, and polyphenols from a variety of fruits and plant extracts. The food and beverage industry is a dynamic, global industry with an increasing demand for high-quality products. In addition to the traditional treatments with ionic exchange resins, RWL Water is one of the few global companies to design and build ISMB chromatography plants for the

purification and recovery of substances with a high added value without the use of chemicals. RWL Water’s expertise in chromatography separation respects Green Chemistry principles, the highest standard in biological products manufacturing based on environment-benign substances and energy efficient processes.

Value From Waste Furthermore, RWL Water’s solutions create value from wastes and wastewater through anaerobic digestion plants. Due to their renewable nature, by-products and wastewater from the food and beverage industry can reduce dependence on fossil fuels and achieve lower levels of greenhouse gas emissions. In fact, the anaerobic technology produces biogas, renewable green energy, which helps to reduce both energy costs and the carbon footprint of food and beverage industry. The use of biogas opens up new applications in several fields, such as high tech process energy for industries, effective small-scale power generation, flexible energy production method, and more.

The food and beverage industry is committed to reducing its water footprint and increasing sustainability. RWL Water’s solutions are oriented to sustainable water management by implementing water and energy reuse as well as closed-loop systems to increase operational savings for customers. J

FOOD & DRINK BUSINESS EUROPE, NOVEMBER 2014

37

I EFFLUENT TREATMENT

Guinness Effluent Screening hen Diageo envisaged a major expansion of their St James’s W Gate brewery one of the key bottlenecks was the effluent treatment screens.

The existing Run down screens towered above the yard and were completely open creating a bad image and a potential odour problem. The resultant screenings were wet and the volume for disposal was high due to the water content.

Working with Diageo and RWE, Huber Technology trialled a Strainpress® fitted with a 2mm basket and found that the unit performed well giving a very dry cake.

After successful trials 4 units were ordered and a layout was drawn up for 4 Strainpress® units to be installed without disrupting the existing equipment so that production was not interrupted until the Strainpress® units were com3 off Strainpress and their local missioned. control panels.

Huber were involved in the

design, pumping calculations and conveying to skips of the screenings.

The Strainpress ® is totally enclosed and works under pressure so the height of the plant could be reduced using the existing pumps to transfer the effluent from the effluent sump up to the primary settlement tanks above ground without intermediate pumping. A suspended screw conveyor under the gantry is used to transfer the screenings into 1 of 2 skips and this set the gantry height. The screenings are now completely enclosed and weather tight.

The plant has now been operating satisfactorily for 6 months meeting the client’s requirements for solids removal, BOD removal, odour tight operation and reduction in volume and costs of screenings disposal due to the reduction in water content.

Screenings from the Trial ~45% Huber are proud to have met Dry solids. the needs of such a prestigious world renowned client.

For further information please visit www.huber.co.uk or contact T. Clutten on tc@huber.co.uk or 07525224521. J

I EFFLUENT TREATMENT

Part V – Industrial Effluent Treatment in the Food & Beverage Industry – Case Studies

By WEHRLE Umwelt GmbH n this part of our mini-series about indusIshow trial effluent treatment, we would like to some example installations in a variety of Food & Beverage applications: Fonterra Co-operative Group Ltd in Stirling/NZ uses a BIOMEMBRAT® MBR to treat its 3,100 m3/d cheese production effluent with a 95% COD and NH4-N elimination with about 3 kWh/m3.

The short start-up time of the treatment plant at the beginning of the milk season is a key benefit for the operator. Since its commissioning in 2008, the MBR runs with its original set of membranes.

Unilever in Gloucester/UK saves energy and surplus sludge disposal costs by using a BIODIGAT®-SB anaerobic EGSB reactor to reduce its 5,000 kg COD per day by 90%.

Mondelez/Cadbury in Bucharest/RO operates a small BIOMEMBRAT® MBR for its 50 m3/d chocolate production effluent, reducing COD from 5,000 to 125 mg/l – right beside a residential area: the plant does not emit odours or even look like an effluent treatment plant.

Kellogg Ltd in Manchester/UK has 1,500 m?/d effluent with a mix of compounds and high variations in COD loading. The BIOMEMBRAT® MBR eliminates over 98% of the COD effectively, occupying a minimum of space.

SONAC in Lingen/DE produces meat and bone meal and uses the BIODIGAT®SB anaerobic EGSB reactor to produce electricity for the factory and for sale, generating profits instead of costs from the effluent treatment.

Effluent treatment by BIOMEMBRAT® MBR from the Fonterra cheese production plant in Stirling/NZ with 3,100 m3/d.

Picture: WEHRLE Umwelt GmbH.

Sang-Mi Food Co in Korea treats its 200 m3/d effluent from pre-cooked food and sauce with a highly-efficient 20 m3BIOSTREAM loop reactor on smallest footprint with only 1.5 m diameter.

Utilising the versatile BIOMEMBRAT® MBR, also most complex food-related effluents can be treated reliably, for example digestate or the slurry of pig farms.

Part VI: “What can you expect from a Supplier of Industrial Effluent Treatment Plants for the Food & Beverage Industry” in the next edition. J

FOOD & DRINK BUSINESS EUROPE, NOVEMBER 2014

39

I COLOUR & FLAVOURS

Global Food Colourants Expected to Reach $2.46 Billion by 2020 he global market for food colourants is expected to reach $2.46 billion by 2020, T according to a new study by Grand View Research. Food colourants demand is expected to grow with increasing applications in confectionery and bakery items, medicines and pharmaceutical drugs, beverages, cosmetics and toiletries, meat, sea food and pet food. Rising consumer awareness for natural ingredients is expected to drive natural colourant demand over the next six years.

Dairy foods were the largest application market for food colourants, with demand estimated at 19,154 tons in 2013. Food

colourants are added in foodstuffs to retain colour lost during processing which adds appeal to the product. Food colourants are also extensively used in beverages, particularly CSDs and non alcoholic kinds, in order to make the product visually more attractive.

According to Grand View Research Global, food colourants demand was 51,510 tons in 2013 and is expected to reach 67,724 tons by 2020 growing at a CAGR of 4.0% from 2014 to 2020.

Synthetic food colourants remain the largest product segment, with demand estimated at 17,907 tons in 2013, owing to increased consumption of processed foods, which use synthetic colours, in emerging markets.

Europe was the largest regional market for food colourants, with revenue exceeding $590 million in 2013. Increased consumer preference towards functional foods and beverages, particularly with natural or organic colourants is a key factor responsible for the regional market growth.

Dairy and non dairy food applications are expected to be the fastest growing applica-

tion markets, at an estimated CAGR of 4.1% from 2014 to 2020. Increasing demand for foods containing natural products is expected to drive demand for the application.

Key companies in the market include CHR Hansen, Danisco, BASF, DSM, and Sensient Technologies Corporation. The global market is significantly consolidated with somewhat oligopolistic characteristics.

While the market is expected to continue moving towards consolidation, R&D spending is expected to increase as participants focus on naturally derived food colourants with nutraceutical benefits. J

Hot and Spicy Flavours Growing in Popularity ot and spicy foods have been on an H undeniable upswing for the past few years. Consumer demand for authentic, bold flavours with heat has dominated the food and beverage scene, and there are no signs of the trend cooling. Today’s consumers are increasingly familiar with cuisines from across the globe and are willing to experiment - especially when it comes to complex, layered flavours.

Sensient Natural Ingredients recently launched a new Chili Blends collection which includes seven authentic dry chili blends inspired by the flavours of Latin America, India, Morocco, Thailand and the United States. The launch is the first in what is planned to be a series of new, ontrend additions to the product portfolio resulting from the company’s reorganization and reinvestment in new product development and customer collaboration.

The Chili Blends Collection includes: • Red Sriracha Blend – a distinct garlic40

•

•

•

•

•

and-heat flavour to match the profile of the on-trend tableside condiment.

Indian Curry Blend – a delicate, sweetsavoury balance recreating the taste of authentic curry dishes and lending an exotic flavour to South Asian-inspired dishes.

Thai Arbol Chile Blend – Incorporates the vibrant, complex flavours of Thai cuisines, from bright lime to fiery arbol chile.

Moroccan Harissa Blend – Inspired by the cuisine of North Africa, Moroccan Harissa Blend delivers deep, intense heat courtesy of arbol, ancho and guajillo chiles.

Spicy Buffalo Blend – Replicates the distinct spicy, buttery flavour of traditional buffalo wing sauce, with a flavour that appeals beyond the bar and grill.

Pickled Jalapeno Blend – Recreates the flavour of the vinegary, tangy pepper rings found on snacks from nachos to

pizza to sandwiches.

• All-American Hot Sauce Blend – Packs the punch of America’s best-selling hot sauce with a fermented, spicy flavour.

Formulated to help manufacturers deliver bold flavours with complex heat, the Chili Blends collection works well in a variety of applications, such as soup and dip mixes, dry sauce applications, side dishes and meal makers, dressings, condiments and seasonings on all types of snack foods. For more information visit: www.chiliblends.com. J

FOOD & DRINK BUSINESS EUROPE, NOVEMBER 2014

I

COLOURS & FLAVOURS

DDW “The Colour House” Has Acquired the DANISCO® Food Colour Business From DuPont Nutrition & Health

•

European colour production is located in Cork, Ireland. This year DDW will complete construction of a new, separate facility in Cork solely dedicated to the manufacture of natural colours.

• Complementary operation in Port Washington, Wisconsin, USA has manufactured cheese colour for leading, dairy industry suppliers since the 1980’s.

DDW acquired the business in 2006 and achieved GFSI (BRC) certification in 2013.

• Sole focus on food and beverage colours includes technical and applications support in Europe.

• Full range of carotenoid colours: annatto, beta-carotene, apocarotenal (b-apo-8 carotenal), lutein, lycopene and paprika.

Custom blends include turmeric (curcumin), caramel colour, titanium dioxide, or other naturally derived colours.

• Available packaging in product net weight of 5 kgs, 10 kgs, 25 kgs or 200+ kgs. J

I SWEETENERS

Mid-Calorie Receives Top Marks in CSD Market he global market for carbonated soft T drinks (CSDs) is shifting as it responds to changing consumer lifestyles. Now more than ever before, consumers are keenly interested in health and wellness, while at the same time seeking choice, variety and new flavour experiences. Part of this general trend is a strong consumer desire for naturally-sourced sweeteners with few or no calories.

The mid-calorie beverage offers CSD formulators a unique product with marketing opportunities perfectly poised to capitalize on the health and wellness trend. As part of their quest for a healthy lifestyle, consumers are examining overall dietary choices and, among other changes, trying to reduce caloric intake. This positive calorie management strategy encourages them to explore mid-range caloric beverages, an option that fits neatly between diet and traditional or full-sugar carbonated drinks. Mid-calorie creates a unique incremental beverage category that resonates with consumers of all types.

“All of our research shows an increasing fraction of consumers aren’t necessarily thinking “diet” but instead are embracing a platform of a more balanced lifestyle, among both older and younger adults,” says Olivier Kutz, marketing manager EMEA for leading stevia producer PureCircle.

“They are looking to everyday healthier choices in the ‘better-for-you’ category with an emphasis on the mid-calorie range— products already demonstrating success in several markets.”

Mintel data analysis agrees that a focus on healthier beverages can lead to success.

A recent report for the European market stated “reformulating beverages to make them healthier and borrowing cues from other categories may help CSD brands keep 42

consumers loyal to their products.”

And formulators appear to be heeding this call to action. Innovation in the European CSD market grew by 17 percent in the last 12 months to June 2014.

Keys to Success With a reduced-calorie or mid-calorie CSD, the key for formulators is to create great-tasting, thirst-quenching beverages that consumers can feel good about drinking. Stevia extract, derived from the leaves of the stevia plant, native to South America, is a naturally-sourced, zero calorie sweetener that can help formulators create this style of beverage.

PureCircle’s Stevia 3.0™ platform offers a suite of different stevia ingredients that can be combined and blended according to a developer’s needs. Using this platform and combining stevia with higher calorie sweeteners like sugar creates mid-calorie beverages with a well-rounded sweetness and full-flavoured taste. Nicky Plumpton, senior technical manager, EMEA for PureCircle offers this advice to formulators, “Stevia does not have a linear dose response curve like sugar. Start with low amounts and gradually build up the amount of stevia to control attributes, such as sweetness linger, help control cost in use and optimise the sweetness profile.”

A key regulatory restriction affects CSD formulation in Europe. Commission regulation (EU) No. 1131/2011 states to use stevia in flavoured drinks the product must be energy reduced (30% calorie reduced) or with no added sugar. The second part of this regulation dictates the amount of stevia formulators can use, limiting it to 80 ppm steviol equivalent. Within those regulations stevia helps create great- tasting, midcalorie beverages with a 30 to 50 percent reduction in sugar, across the spectrum of flavours from colas to lemonlime and orange.

keters use stevia to reduce calories, it receives a prominent front-of-pack mention, which is not the norm for any other type of sweetener inclusion. One possible conclusion — stevia’s natural origin from a plant-based source adds value in the consumers’ eyes and knowledgeable marketers are eager to promote it.

This strategy is attracting a fair amount of marketing spend from both large and small manufacturers alike. In several markets around the globe, a mid-calorie beverage strategy sweetened with stevia has provided consumers with a refreshing change that in turn, sparked impressive sales increases.

Finding the Right Tools Stevia 3.0™ provides CSD formulators with the tools to create a mid-range caloric beverage, for a reformulation, line extension or new product introduction to capture market share in a competitive beverage landscape.

However, a different set of challenges exists when reformulating, compared to new launches or range extensions. With reformulations, consumers are familiar with a product’s taste and expect it to remain the same. This sets a benchmark for product developers to match. A balance of caloric sweeteners paired with carefully selected and tailored ingredients from the Stevia 3.0™ platform can help.

Stevia offers the opportunity to formulate low/no/and reduced calorie versions of existing products and to create new product ranges with either traditional, limitedtime or unique flavour options. While calories shrink, sales can expand by offering healthier beverage choices to slake the thirst of an audience eager for great-tasting innovation. J

Front of Pack Prominence Mintel research shows that when formulators and mar-

FOOD & DRINK BUSINESS EUROPE, NOVEMBER 2014

I SWEETENERS

Global Stevia Market Up 14% in 2014 he rapid rise of stevia as a natural sweetT ener has continued unabated over the past year. A new study by leading food and drink consultancy Zenith International estimates that worldwide sales of stevia are set to advance by 14% in 2014 to 4,670 tonnes, taking its overall market value to $336 million.

“Consumers are increasingly scrutinising the contents of food and beverage products,” comments Zenith Market Intelligence Consultant Simon Redwood.

“Reduction in sugar remains key for manufacturers and, with consumers now also beginning to shun artificial sweeteners, stevia’s natural provenance and near-zero caloric positioning place it at a distinct advantage.

Gains over the past year have been driven by several high profile new product launches, including the introduction of

Coca-Cola Life in a number of key markets. Although beverages remain the focus for stevia usage, dairy, tabletop sweeteners and even pharmaceuticals have all seen strong growth in the past 12 months.

Increased awareness of stevia has also helped spur market growth, with more and more consumers coming to appreciate what stevia is and what benefits it provides.

In terms of stevia cultivation, China continues to lead the way and a number of new regions are continuing to emerge.

East Africa, South America and even Europe are all receiving greater attention from the leading stevia suppliers, who are keen to satisfy the rising demand for stevia by offering a broader choice of high quality stevia extracts.

Zenith forecasts that the global market for stevia will reach 7,150 tonnes by 2017, equivalent to $578 million. “Health motivation in key Asian markets such as India and Indonesia remains lower, and it is expected to be some years before stevia really takes off in these countries. When it does, the potential for stevia will truly be realised”, concludes Simon Redwood.

For further information contact Zenith International on +44 (0)1225 327900 or email info@zenithinternational.com. J

I STARCHES

Tate & Lyle Introduces New CLARIA® Functional CleanLabel Starches With High Performance and Great Taste ate & Lyle, a leading global provider of T food ingredients and solutions, has launched CLARIA® Functional CleanLabel Starches. The new CLARIA® line provides manufacturers similar functionality to modified food starch plus the added benefits of a clean taste and clean label.

CLARIA® Functional Clean-Label Starches enable manufacturers to meet increasing consumer demand for simpler ingredient lists. This trend is supported by the fact that nearly 25% of new product launches globally were positioned as labelfriendly in 2013 (Innova Market Insights).

“Tate & Lyle recognised the need for a high-performing starch with similar functionality to a modified starch with all the benefits of a clean label,” says Esther Van Onselen, Global Marketing Category Director, Texturants and Convenience Foods at Tate & Lyle. “Although consumers demand simpler ingredient labels, taste and product experience are still primary drivers. The CLARIA® line helps provide a solution to address both of these needs.”

CLARIA® Functional Clean-Label 44

Starches outperform other clean-label starches when it comes to meeting consumer expectations for taste, texture and appearance. Internal colourimetric and sensory testing demonstrated that the CLARIA® line has a very neutral flavour profile and colour that is comparable to modified starches. This facilitates their incorporation in food categories that have historically had limited options with functional clean-label starches.

In addition to meeting high sensory standards, CLARIA® Functional Clean-Label

Starches enable manufacturers to formulate with similar functionality of a modified food starch. The patent-pending technology of the CLARIA® line enables tolerance to shear, heat and acid, even under extreme conditions like ultra-high-temperatures (UHT) and homogenisation. It also demonstrates high thickening efficiency and texture consistency over time.

“Tate & Lyle’s technology is unique in the marketplace because it enables the use of a simple ‘starch’ label and similar performance to modified starches, with a clean taste and neutral colour. The technical and scientific advancement lies in Tate & Lyle’s proprietary processing, which allows the CLARIA® starch granules to remain intact throughout different processing conditions,” explains Werner Barbosa, Platform Leader, Texturants at Tate & Lyle.

CLARIA® Functional Clean-Label Starches are versatile across a broad range of applications and sophisticated processes including soups, sauces, dressings, prepared meals and yoghurt. For more information on CLARIA® Functional Clean-Label Starches, visit www.clariastarch.com. J

FOOD & DRINK BUSINESS EUROPE, NOVEMBER 2014