Food & drink business europe nov 2015

November 2015

Kerry Group opens new â‚Ź100 million Global Technology & Innovation Centre

Food & Drink Business Website:

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C o n t e n t s

- 3 M ERGERS & A CQUISITIONS

- 47 I NGREDIENTS

Coverage of British and international deals.

Fi Europe & Ni 2015 to provide multiple solutions in proteins.

- 7 C OVER S TORY

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Kerry Group opens new €100 million Global Technology & Innovation Centre.

Kevin Brennan, CEO, Quorn Foods.

- 57 P OTATO P RODUCTS Lamb Weston/Meijer seeing possibilities in potatoes.

P AGE 25

Carlos Brito, CEO, AB InBev.

R EGULARS

- 12 F OCUS ON I RELAND

Energy & Environment. . . . . . . . . . . . . 15-21

Ireland – The sustainable food and drink export island.

PAGE 37 Quality & Safety . . . . . . . . . . . . . . . 30 & 42 PAGE 5

- 23 C ONFERENCE & E XHIBITION Food Matters Live - ExCeL Centre, London - November 17-19.

Peder Tuborgh, CEO, Arla Foods.

Processing & Manufacturing . . . . 31-35 & 59

Ivan Menezes, CEO, Diageo.

Materials & Ingredients . . . . . . . . . . . . 45-48

- 25 B REWING

Information Technology . . . . . . . . . . . . . . 52

PAGE 57

Bottling & Packaging . . . . . . . . . . . . . . . . 55

Bas Alblas, CEO, Lamb Weston/Meijer.

SABMiller agrees to £68 billion takeover by AB InBev. Managing Director: Colin Murphy Editor: Mike Rohan

- 29 P OULTRY Moy Park enhances production capabilities.

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Group Operations Manager: Sylvia McCarthy

Stan McCarthy, CEO, Kerry Group.

Advertising: John Bent, Ian Stewart & Rachel Howard Production Manager: Sylvia McCarthy

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- 37 D AIRY Arla Foods stays focused in an unpredictable market.

- 45 C OCOA & C HOCOLATE Consolidation continues in industrial chocolate and cocoa.

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Michael Cantwell, Divisional Manager – Food, Enterprise Ireland.

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FOOD & DRINK BUSINESS EUROPE, NOVEMBER 2015

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M E E R R G G E E R R S S M Quorn Foods Sold For £550 Million Monde Nissin Corporation, one of the leading food consumer goods companies in the Philippines, has agreed to purchase Quorn Foods from Exponent Private Equity and Intermediate Capital Group for £550 million. Quorn is an international meat alternatives business, with market leading position in 15 countries. It has around 620 employees at three UK sites, in Germany, and in the United States.

Monde Nissin is building a global branded food business, diversifying into categories that focus on health and sustainability. Quorn is a great fit for this strategy and complements its recent acquisition of Black Swan and Nudie, the leading brand of chilled dips and chilled juices in Australia, respectively.

Kevin Brennan, chief executive of Quorn Foods, comments: "We have an ambition to be the world leader in meat alternatives. Monde Nissin’s purchase represents a great step forward in this ambition. They share our belief in the potential of Quorn, and provide capability to expand the brand into Asia."

Kevin Brennan, chief executive of Quorn Foods.

Yildiz Holding Refocuses on Snacking In line with focusing on its main snacking business, Turkish food group Yildiz Holding has sold a 90% stake in its three beverage companies - Della G›da, Bahar Su and ‹lk Mevsim Meyve Sular› - to Dydo DRINCO, the Japan based beverage company, for

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335 million Turkish Liras (Eur99 million). Following the transaction, the Cola Turka, Çaml›ca, Saka Su, Sunny, Maltana, Eskipazar, Flores and Link brands will be sold under DyDo DRINCO’s umbrella.

Y›ld›z Holding became the third largest biscuits company in the world with the acquisition of United Biscuits last December.

Kellogg Acquires Egypt's Leading Cereal Company Kellogg Company has advanced its emerging market growth strategy by acquiring Mass Food Group, Egypt's leading cereal company, for $50 million. Founded in 1996, Mass Food Group is a family-

owned business headquartered in Cairo. As the first company to introduce breakfast cereal to Egyptian consumers, Mass Food Group has grown into an $18 million business (sales) with 600 employees in less than 20 years. The company makes such popular local brands as Temmy's cereals and NutriFit cereal bars. Mass Food Group also exports foods to more than 30 markets, including Europe, East Asia and Africa.

"As the number one cereal company in Egypt, Mass Food Group is an excellent strategic fit for Kellogg," says Chris Hood, president of Kellogg Europe. "The combination of Mass Food Group's manufacturing capabilities, established local brands, and sales and distribution infrastructure, cou-

pled with Kellogg's product innovation, international sales knowledge, iconic brands and marketing expertise, will help unlock the growth potential of the cereal category in the key markets of Egypt and North Africa."

Earlier this year, Kellogg acquired Bisco Misr, Egypt's leading packaged biscuit company. And in midSeptember, Kellogg Company announced a joint venture with Tolaram Africa to develop snacks and breakfast foods for the West African market, as well as noodles across Africa, which are often eaten at breakfast. In addition, Kellogg acquired 50% of Multipro, a premier sales and distribution company in Nigeria and Ghana.

Heineken Completes Acquisition of Majority Stake in Leading Slovenian Brewer Heineken has completed the acquisition of a majority 53.4% stake in Pivovarna Lasko from a consortium of shareholders for Eur119.5 million. Pivovarna Lasko is Slovenia's leading brewer. The company operates two modern and well-invested breweries and owns and brews the renowned Lasko and Union brands, which have a strong heritage across the Adria region.

Slovenia is centrally positioned between other markets where Heineken has operations.

Jean-François van Boxmeer, chairman and chief executive of Heineken, says: "This acquisition strengthens our position within the region and will bring two complementary strong local brands into our existing portfolio."

FOOD & DRINK BUSINESS EUROPE, NOVEMBER 2015

Sale of Dairy Crest’s Dairies Operations to Muller UK & Ireland Group Approved The UK Competition and Markets Authority (CMA) has accepted modified undertakings provided by Muller UK & Ireland Group and approved its acquisition of Dairy Crest’s Dairies operations. The consideration payable by Müller remains at £80 million subject to previously agreed upward or downward adjustments. Müller has withdrawn its right not to complete the purchase should there be a deterioration of more than £20 million from the agreed level of profitability of Dairy Crest's Dairies operations.

Dairy Crest has agreed to make a one-off payment of £15 million to Müller on completion to help meet the additional cost of the modified undertakings. The sale will complete on 26 December 2015. Dairy Crest will now finalise its consultation with employees.

Mark Allen, chief executive of Dairy Crest, comments: “Dairy Crest will now be able to focus on growth, through both our branded cheese and spreads operations and new revenue streams from manufacturing products for the fastgrowing global infant formula market. We will work with Müller to ensure completion is achieved as smoothly as possible.”

Diageo Sells Part of its Wine Portfolio Diageo has agreed to sell its US-based Chateau and Estate Wines and the UK-based Percy Fox businesses to Treasury Wine Estates for a consideration of $552 million. The net 3

M E E R R G G E E R R S S M proceeds of approximately £320 million, after tax and transaction costs will be used to repay borrowings. The transaction, which is subject to regulatory approval, is expected to complete around the end of the calendar year.

“Diageo’s strategy is to drive stronger, sustained performance through focus on our core portfolio,” says Ivan Menezes, chief executive of Diageo. “Wine is no longer core to Diageo and this sale gives us greater focus. With the completion of this transaction Diageo will have released £1 billion from the sale of noncore assets since the start of the financial year.”

Ivan Menezes, chief executive of Diageo.

Unilever Strengthens Ice Cream Portfolio Unilever has acquired GROM, the premium Italian gelato business for an undisclosed sum. The first GROM shop was opened in Turin in 2003 by friends Federico Grom and Guido Martinetti. Today, GROM has over 60 gelato shops in Italy and around the world.

The Grom acquisition will strengthen Unilever’s ice cream portfolio and help to further capitalise on the growth of the

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premium gelato market. Grom will be run as a standalone unit, with Federico and Guido continuing to manage the business from its headquarters in Turin.

Heineken Takes 50% Stake in Leading US Craft Brewer Heineken has completed the acquisition of a 50% shareholding in the Lagunitas Brewing Company, the fifth largest craft brewer in the United States by volume. Lagunitas owns a stable of award-winning brands, including Lagunitas IPA. Lagunitas IPA is the largest India Pale Ale brand in the United States and has become a benchmark for the category.

The transaction provides Heineken with the opportunity to build a strong foothold in the dynamic craft brewing category on a global scale, whilst it provides Lagunitas with a global opportunity to present its beers to new consumers in a category that is showing exciting international growth opportunities.

In the United States, craft beer continues to outperform the overall beer market, and now represents 11% of total volumes. Within the craft segment, IPA is the fastest growing category.

Cargill Spawns New Era in Aquaculture Cargill is ushering in a new era in meeting the world's demand for protein with the completion of its acquisition of EWOS, a global leader in salmon nutrition, for Eur1.35 billion. In August, Cargill entered into an agreement with Altor Fund III and Bain Capital Europe III to acquire EWOS. The deal has now closed after

meeting all necessary country regulatory approvals.

With the need for protein expected to grow by 70 percent worldwide by 2050, farmed fish offers one solution to meeting this demand, and together, Cargill and EWOS will play a major role in this growing and important market. The acquisition makes Cargill's animal nutrition business a leading player in the growing salmon feed industry, one of the most advanced and professionally managed segments in global aquaculture.

Clearwater Seafoods to Acquire Macduff Shellfish Group Clearwater Seafoods, one of North America's largest vertically integrated seafood companies, has entered into an agreement with the Beaton Family and Change Capital Partners, the private equity fund, to acquire Macduff Shellfish Group, the UK’s leading vertically integrated shellfish company, for a total of £98.4 million. In addition, there may be additional consideration paid in the future dependent upon on the future performance of Macduff.

Ian Smith, chief executive of Clearwater Seafoods, says: "The acquisition of Macduff brings together two of the world's leading and fastest growing vertically integrated wild shellfish har-

FOOD & DRINK BUSINESS EUROPE, NOVEMBER 2015

vesters. The transaction will allow Clearwater to integrate its vessel management and sustainable harvesting practices, innovative processing technologies along with its global sales, marketing and distribution footprint into Macduff; a company that already possesses a talented local management team, excellent resource assets and a strong presence in the EU, the world's largest and most valuable seafood market. Our companies have been building a working relationship for more than three years and we are confident Macduff represents a highly attractive investment with a strong strategic fit for Clearwater."

For the year ended September 30, 2015 Macduff is expected to generate approximately £52 million of sales and £9.2 million of adjusted EBITDA representing annual growth of 13% and 30% respectively.

Kerry Group Expands Global Taste & Nutrition Portfolio With $735 Million Move Kerry, the global taste & nutrition and consumer foods group, has announced the acquisition of three US-based businesses - Red Arrow Products, Island Oasis and Biothera Inc’s Wellmune® operation - to significantly expand its industry-leading portfolio of innovative taste and nutrition solutions for global food, beverage and pharmaceutical applications.

Total consideration for the three businesses amounts to $735 million. In the financial year 2014, the businesses being acquired generated annual revenues of $301 million and earnings before interest, taxation, depreciation and amortisation (EBITDA) of $59 million. Kerry Group will finance the acquisitions from existing lines of credit.

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COVER STORY

Kerry Group Opens New €100 Million Global Technology & Innovation Centre The opening of Kerry Group’s new €100 million Global Technology & Innovation Centre in Ireland marks another step in the company’s remarkable evolution from a small, Irish regional dairy co-operative into a €5.75 billion turnover business, which is a world leader in the development and supply of taste and nutrition technologies and systems, as well as being a significant player in consumer foods.

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eadquartered in Tralee, Ireland, Kerry Group operates 126 production facilities across 26 countries and employs 24,000 people. The company’s products are sold to 140 countries worldwide. Kerry Group is the largest player within the $50 billion global ingredients and flavours market. The market remains highly fragmented and Kerry Group benefits from being a scale player with ample scope for further expansion through industry consolidation. Kerry Group is Ireland’s largest indigenous food company.

Contributing 74% of group sales in 2014 and an even higher proportion (83%) of group trading profit of Eur636 million last year, Kerry’s Ingredients & Flavours business specialises in the development, manufacture and delivery of innovative Taste & Nutrition Systems and Functional Ingredients & Actives for the global food, beverage and pharmaceutical markets. The functional ingredients Taoiseach Enda Kenny TD (left), who officially portfolio includes opened the Eur100 million Global Technology & emulsifiers, hydrocolInnovation Centre, and Stan McCarthy, chief loids, yeast, proteins, executive of Kerry Group. enzymes, cultures and fermented ingredients. Beverage systems include beverage flavours and bases, syrups and sauces, and brewing ingredients.

Kerry Group’s global pre-eminence stems from its core technological strengths in savoury ingredients, sweet ingredients, food coating systems, nutritional systems and speciality protein applications. Indeed, its offering has been designed to allow customers to maximise synergies through utilising Kerry’s broad range of food and beverage technologies, applications, culinary expertise and processing capabilities.

Of the Eur4.3 billion revenue generated by the Ingredients & Flavours business in 2014, 45% was generated in the Americas, 36% in EMEA (Europe, Middle East and Africa) and 19% in AsiaPacific. Developed markets account for 75% of revenue and developing markets 25% or Eur1.1 billion. However, Kerry is targeting 30% of revenue from developing markets by 2017.

Consumer Foods Kerry Group is also a leading manufacturer of added-value branded and customer branded chilled foods to the UK and Irish consumer foods markets. Although by far the smaller element of Kerry Group, contributing just over a quarter of group revenue and 17% of trading profit, the Consumer Foods division is still a substantial business with sales of Eur1.51 billion in 2014 and trading profit of Eur125 million.

Kerry Foods operates within the meat products, dairy products and meal solutions categories. The company owns the number 1 and 2 sausage brands in Great Britain. It is the largest branded dairy supplier in Ireland, owning the top spreads and cheese brands. In Great Britain, it is a leading customer brand supplier, ranking first in frozen ready meals, chilled ready meals and ready to cook.

Technological Edge Kerry Group’s success has been built on a total commitment to ongoing technological innovation in all sectors of its business, providing integrated customer-focused pr-

Kerry Group is a world leader in the development and supply of taste and nutrition technologies and systems.

FOOD & DRINK BUSINESS EUROPE, NOVEMBER 2015

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oduct development. The group invests heavily in highly focused research, development and application centres of excellence. This gives Kerry a ‘technological edge’ in its chosen sectors, allowing it to proactively meet customer and market needs.

Reflecting its leadership position, Kerry Group has just launched the Kerry Health and Nutrition Institute in response to the growing global focus on nutrition and general wellness. Supported by a Scientific Advisory Council, the Institute aims to provide expert insight into the science and policy of health, taste, nutrition and general wellness (see Panel One).

One Stop Shop Kerry Group boasts the broadest range of technologies and capabilities within the food and beverage ingredients and flavours market. Dealing with Kerry Group enables customers to work with a company that understands their needs, can propose value enhancing solutions, and can do it quickly. It is a potential ‘one stop shop’ for customers.

The innovative taste and nutrition specialist has adopted a 'One Kerry'

Kerry Group’s new €100 million Global Technology & Innovation Centre.

Kerry Group boasts the broadest range of technologies and capabilities within the food and beverage ingredients and flavours market.

approach to its business. 'One Kerry' unites all of Kerry's global scientific applications, processing and marketing expertise, with some 800 scientists working throughout its Global Technology & Innovation centres supported by a network of Regional Development & Application Centres. This provides Kerry's customers with a single point of access to the company's industry-leading market applications expertise and broad technology base. One Kerry aims to deliver customer-focused innovation.

The One Kerry approach provides customers with access to unique consumer and market insights, development expertise, application and pilot proficiency, plus sensory and analytical capabilities. Kerry Group’s Eur100 million investment in establishing a Global Technology & Innovation Centre in Ireland is in line with its emphasis on R&D, technological excellence and a customer-focused approach. €100 Million Investment To better serve its global and regional customers in the EMEA, Kerry Group recently invested Eur100 million to open a new Global Technology &

Panel One: Kerry Health and Nutrition Institute Established As the global focus on nutrition and general wellness continues to take centre stage, Kerry Group has launched the Kerry Health and Nutrition Institute.

Supported by a Scientific Advisory Council, the Institute aims to provide expert insight into the science and policy of health, taste, nutrition and general wellness. To make the Kerry Health and Nutrition Institute easily accessible to health and nutrition professionals, a website by the same name has been launched simultaneously.

The Kerry Health and Nutrition Institute has three guiding principles: • To educate on health and wellness market trends and to provide knowledge on nutritional considerations across life stages and need states.

• To connect with the global scientific community on regulatory and policy matters, and evolutions in scientific research.

• To advance scientific knowledge to help deliver great tasting, nutritious food and beverages, and to advance Kerry’s nutrition research programme.

Public health challenges such as obesity and diabetes are increasingly prevalent across all ages and in all corners of the globe. This has substantially increased the focus on improving the nutritional quality of food supply to enable more nutritious and healthier food and beverage choices, while maintaining convenience. Despite this taste remains the most important factor to 41% of consumers globally when choosing food or drink products (Datamonitor) meaning that manufacturers cannot afford to look at nutrition in isolation.

Satya Jonnalagadda, Ph D, MBA, RD, Director of Global Nutrition at Kerry, says: “The challenges we are facing in terms of public health are varied, complex and are at a global scale. Action is needed at industry, social and individual level to tackle crises, such as the obesity epidemic. As a taste and nutrition leader, we want to help guide the development of evidence based products that will have a significant impact on health and still taste great."

Scientific Advisory Council The Kerry Health and Nutrition Institute is supported by a Scientific Advisory

Council, which is made up of recognised leaders in nutrition science and research: • Sharon Donovan, Ph.D., RD, Professor of Nutrition at the University of Illinois, UrbanaChampaign; • Christine Loscher, Ph.D., Associate Professor of Immunology at Dublin City University; • Joanne Slavin, Ph.D., RD, Professor of Food Science and Nutrition at the University of Minnesota.

Council members augment the Kerry Health and Nutrition Institute with their learnings on scientific advancements in the areas of general wellness and Scientific Advisory Council members (left nutrition for future nutritional to right): Dr Joanne Slavin, Dr Christine and technology innovation. The Loscher and Dr Sharon Donovan.

Institute is also supported by internal Kerry advisors, who bring a wealth of knowledge in taste and nutrition.

“These prominent experts hailing from exceptional institutions will help Kerry, through the Kerry Health and Nutrition Institute, achieve its commitment to discovering new nutritional technologies and applications, and ultimately help consumers around the globe pursue healthier lifestyles with innovative and great tasting nutritional solutions,” says Albert McQuaid, PhD, Chief Technology Officer, Functional Ingredients & Actives.

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Panel Two: Kerry Group Expands Global Taste & Nutrition Portfolio With $735 Million Move Kerry Group has announced the acquisition of three USbased businesses - Red Arrow Products, Island Oasis and Biothera Inc’s Wellmune® operation - to significantly expand its industry-leading portfolio of innovative taste and nutrition solutions for global food, beverage and pharmaceutical applications. Total consideration for the three businesses amounts to US$735 million. In the financial year 2014, the businesses being acquired generated annual revenues of US$301 million and earnings before interest, taxation, depreciation and amortisation (EBITDA) of US$59 million. Kerry Group will finance the acquisitions from existing lines of credit.

Red Arrow Products is a leading supplier of natural smoke flavours and authentic natural savoury grill flavours serving meat, culinary and food industry markets worldwide. Headquartered in Manitowoc (WI), Red Arrow operates from manufacturing facilities in Manitowoc (WI) and Rhinelander (WI) supported by Application & Development Centres in Germany and Sweden. Combined with Kerry’s recent acquisition of Wynnstarr Flavors and KFI Savoury (the US-based savoury business of Kraft Food Ingredients), the acquisition of Red Arrow will further strengthen Kerry’s taste, technology and savoury flavour industry leadership. The acquisition, subject to regulatory approval, is expected to complete in early December.

Island Oasis is a category leading provider of all-natural premium cocktail

mixes and customised beverage solutions serving ‘onpremise’, restaurant, leisure and hospitality segments of the US market. Distributed and marketed though national and regional chains, QSR’s and independents, the Island Oasis portfolio includes innovative frozen and shelf-stable fruit purées, coffee blends, performance nutrition beverage systems and customised ‘on-premise’ beverage equipment. Headquartered in Walpole (MA), the business operates from manufacturing facilities in Byesville (OH) and Buffalo (NY). Its market-leading brands, including Island Oasis, Fuel and Barista Fria, complement Kerry’s existing branded foodservice offerings (including DaVinci Gourmet, Big Train, Oregon Chai, Golden Dipt and Gold Ladle), broadening the group’s market reach and service in fast growing segments of the foodservice channel.

Biothera Inc’s Wellmune® business produces and markets the unique Wellmune® branded natural food, beverage and supplement ingredient clinically proven to strengthen the immune system – improving health and wellness. Kosher, Halal, non-allergenic, GMOfree, gluten-free and ‘Informed Sport’ certified, Wellmune® is formulated in a growing number of food, beverage and supplement products in more than fifty countries throughout the world. The acquired business broadens Kerry’s functional nutritional ingredients and wellness portfolio and complements the group’s market-leading taste solutions for food, beverage and supplement applications.

Innovation Centre. Situated on a 28 acre site at the Millennium Business Park, Naas, County Kildare, it is strategically located adjacent to the M7 and M50 Dublin motorways.

The world class Technology & Innovation Centre currently accommodates 800 research, product commercialisation, business development and business support positions, and will recruit a further 100 people by the end of 2016.

who officially opened the Eur100 million facility: "Kerry is a world leader in the food sector and the new Global Technology & Innovation Centre will further enhance Ireland's reputation for excellence in research, development and innovation in the food and beverage industry.”

Other potential sites in Europe with easy access to an international airport were considered for the new Global Technology & Innovation Focal Point Centre, but Kerry Group chose “Our new Global Technology & Ireland because of its long estabInnovation Centre will serve as a Pictured (left to right): Stan McCarthy, chief executive of Kerry Group; lished expertise in food science and focal point for Kerry's customer Taoiseach Enda Kenny TD; Simon Coveney TD, Minister for Agriculture, its existing research, development engagement activities providing key Food and the Marine; and Aine Walsh, flavourist at Kerry EMEA. and technology infrastructure. The customers with access to the group's close proximity of the Naas location complete breadth and depth of technologies, scientific research, to Dublin Airport will provide Kerry’s global and regional cusinnovation and applications expertise, across food, beverage and tomers with good transport links when visiting the Global pharmaceutical markets,” explains Stan McCarthy, chief executive Technology & Innovation Centre. of Kerry Group. “In addition it will serve as the group's Global Simon Coveney TD, Minister for Agriculture, Food and the Centre of Excellence for Nutrition and will optimise product dif- Marine, comments: "The completion of this facility, a Eur100 milferentiation in the marketplace while providing unrivalled speed to lion project, is the largest single investment in food innovation ever market.” by a company in Ireland. It represents a huge vote of confidence in He adds: “Today's consumer markets, and changing food and the Irish economy. Equally importantly, it represents a resounding beverage consumption trends, call for renewed vigour in product endorsement in the quality and expertise of Irish food science gradinnovation and development of nutritious product solutions and uates to deliver food innovation in the most modern global facility menu offerings. Kerry's approach to innovation capitalises on our producing world class ingredients and consumer products." total Taste & Nutrition technology offering and unique end-usemarket applications capability.”

Greenfield to Global Leader The new Centre, which received support from the Irish From the commissioning of its first manufacturing plant in Government, State Agencies and Kildare County Council, will also Listowel in 1972, Kerry has grown at an astounding rate. In its first support functional and business leadership development and scal- year the fledgling business processed 16 million gallons of skim able sustainable growth in Kerry Group well into the future. milk to produce 2,000 tonnes of casein with a workforce of about 40 people and reported profits of Eur127,000 on a turnover of Enhancing Ireland’s Reputation Eur1.3 million.

According to Taoiseach (Irish Prime Minister) Enda Kenny TD, Kerry Group was launched as a public company in 1986. Listed 10

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on both the Irish and London Stock Exchanges, the market capitalisation of the group has grown to a current level of approximately Eur13 billion. Revenue has increased from Eur337 million in 1986 to Eur5.75 billion in 2014 with a CAGR of 10.7%. Trading profit growth for the period is even higher at 14.6% CAGR increasing from Eur14 million to Eur636 million. Kerry Co-op, which was one of the founders of the business, has a current shareholding of about 14%.

Kerry Group has expanded through a combination of acquisitions and organic growth. Between 2000 and 2014, Kerry Group completed 150 acquisitions, including 57 in flavours and 33 in other food and beverage technologies, as it developed its Taste & Nutrition platform.

Significant deals of this nature include the $130 million purchase of Beatreme Food Ingredients in 1988, the acquisition of DCA for $402 million in 1994 and Dalgety Food Ingredients for £335 million in 1998. Since 2000, major deals have included the acquisitions of Quest Food Ingredients for $440 million in 2004 and Cargill’s global flavour business for $230 million in 2011.

On the consumer foods side, key deals include the Eur391 million acquisition of Golden Vale in 2001, the 2009 purchase of Breeo Foods and the acquisition of Noon Products for £124 million in 2005.

Latest Acquisitions Kerry Group is continuing to consolidate its leadership position within the fragmented global ingredients and flavours market through acquisition. It has just purchased three US-based companies - Red Arrow Products, Island Oasis and Biothera Inc’s Wellmune business – for a total consideration of $735 million (see Panel Two).

Stan McCarthy comments: “The acquisitions of Red Arrow, Island Oasis and Wellmune®, as well as significantly expanding our taste and nutritional solutions portfolio, bring a number of important innovative technology platforms to Kerry.

Complementing our existing taste and nutrition leadership positioning and growth strategies, the businesses being acquired present tremendous growth opportunities throughout Kerry’s global developed and developing markets.” J

I FOCUS ON IRELAND

Ireland – The Sustainable Food and Drink Export Island Ireland is well established as a major producer and exporter of dairy ingredients for international markets and currently accounts for 10% of global infant milk formula exports but it is now becoming increasingly adept at developing other natural and sustainable, high quality food ingredients and nutritional solutions. he Irish dairy indusresponsible for the develtry, with Governopment and growth of ment support, has Irish enterprises in world been ramping up markets. “The increased processing capacity in prepavolume will be sold in ration for the abolition of international markets such EU milk quotas and to cope as Europe, the UK, the US with a planned 50% increase and Asia. We will still be in milk production to 7.5 producing commodities billion litres by 2020. Irish but also higher valuedairy companies including added products such as Glanbia, Carbery Group, infant milk formula and Dairygold and Lakeland nutritional products to Dairies have invested heavily meet the growing market for the future, resulting in a Michael Cantwell, Divisional demand in China and sizeable increase in milk vol- Manager – Food, Enterprise Ireland. other countries in the Far ume since the abolition of East.”

EU milk quotas. Over 90% of Irish milk production is processed into products that Sustainable Markets are exported and this proportion is expect- Michael Cantwell continues: “We are very ed to increase in the future, given the small confident that the extra volume will be sold size of the domestic market. in sustainable markets. We see a lot of posi“We have invested over Eur80 million tive gains for the infant milk formula sector directly into the major dairy companies in Ireland over the next couple of years.” which has stimulated close to Eur1 billion Indeed, three of the world’s top four proin capital investment and each of these ducers of infant milk formula – Abbott companies has its own target market plans Nutrition, Danone and Nestlé Nutrition – to grow volumes of milk,” explains Michael have already chosen Ireland as a manufacCantwell, Divisional Manager – Food, turing base. Kerry Group, the global ingreEnterprise Ireland, the Government agency dients and flavours specialist, has also recently invested strongly in infant milk formula.

“We have discussions underway with each of these companies about ongoing development in Ireland. We are also talking to a number of other international companies about potential investment in Ireland.

So from a FDI (foreign direct investment) perspective, we see infant milk formula as a potential target area for us. I have no doubt that we will see a number of other major names coming to Ireland over the next few years. These companies have visited Ireland and are very positive towards us and the infrastructure here that will support their Enterprise Ireland has invested over €80 million investment.”

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directly into the major dairy companies which has stimulated close to Eur1 billion in capital investment.

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Advanced R&D Infrastructure The Irish State has invested and continues

to invest heavily in an advanced R&D infrastructure – in partnership with industry - to create breakthrough innovation.

For example in dairy, Enterprise Ireland has made a significant investment in building capability in the form of Food for Health Ireland (FHI), a pioneering industry-led research collaboration focused on the mining of milk for new functional bioactives with health and nutrition properties.

Enterprise Ireland has also supported the Dairy Processing Technology Centre (DPTC), a dairy industry-led initiative, which aims to build a strategic research and innovation base in dairy processing to help enable the sector to optimally exploit the projected long term growth opportunities.

Enterprise Ireland is the Government agency responsible for the development and growth of Irish enterprises in world markets.

“Between FHI and DPTC we have invested over Eur70 million working in partnership with the industry to grow the industry and to find new products but also to ensure that the best processing capabilities are here in Ireland,” he says.

FHI and DPTC are complementary to existing research institutes such as Teagasc (Agriculture and Food Development Authority), University College Dublin, University College Cork and others which have established strong linkages with the food and beverage industry in Ireland.

Michael Cantwell sees further scope to harness Ireland’s internationally recognised expertise in dairy ingredients to develop

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Irish dairy co-operative Lakeland Dairies has commenced a €36 million expansion of milk powder processing operations at its site at Bailieboro in County Cavan. The investment has been supported by the Irish Government through Enterprise Ireland. Pictured (left to right): Michael Cantwell, Divisional Manager – Food, Enterprise

Innovation Centre in Ireland is further recognition of the benefits of using the country as a base. Kerry Group looked at other potential sites in Europe before opting for Ireland because of its long established expertise in food science and its existing research, development and technology infrastructure.

“Securing Kerry is a big win for us,” says Michael Cantwell. “It means we can go out and reference Kerry to some of the other larger players to encourage them to also consider Ireland as a base.” He adds: “Kerry will employ just under 1,000 people – half in R&D and half in IT infrastructure. The company were confident that they could attract the right calibre of suitably qualified people in Ireland and also from abroad to work at the new Centre. Kerry also chose here because their customers felt better about visiting Ireland rather than anywhere else.”

Food Board), the 'Origin Green' programme is designed to help Ireland become a world leader in sustainably produced food with a farm to fork approach. Origin Green is allowing the Irish food industry to differentiate its products in international markets and capitalise on the country’s ‘green’ credentials.

“Origin Green has been a tremendous overall flag and brand which has created an awareness of Ireland over and above what we have been able to achieve heretofore,” points out Michael Cantwell.

National Cohesion Another key strength and advantage for the Irish food and drink industry is the cohesive approach taken to development by Government and the various State agencies.

Ireland; Michael Hanley, Group Chief Executive of Lakeland Dairies; Richard Bruton, TD, Minister for Jobs, Enterprise and Innovation; and Alo Duffy, Chairman of Lakeland Dairies.

other food ingredients and nutritional solutions. “Within FHI there are a number of research streams and one of those is to develop new nutritional functional ingredients from non-dairy,” he remarks. Indeed, Enterprise Ireland is in talks with several companies in the meat and marine sectors with a view to developing food ingredients.

Overseas Investment Enterprise Ireland is actively engaging with a number of overseas food and beverage companies to encourage them to look at Ireland as a strategic location to develop new products and access some of the country’s innovation and R&D facilities. Major international companies such as Pernod Ricard, Coca-Cola, PepsiCo, Mondelez International, Aryzta and 2 Sisters Food Group are already using Ireland as a base from which to service European or global markets.

Ireland is continuing to achieving considerable success in attracting inward investment from overseas companies into its export-orientated food and drink industry.

For instance within the Irish whiskey sector, William Grant & Sons, the Scotch spirits group, US-based Brown-Forman and Illva Saronno, the Italian drinks group working in partnership with Walsh Whiskey Distillery, have completed or recently announced large capital investments projects.

Distinctive Advantages Ireland has a number of distinct advantages as a base for new product development and innovation which distinguishes it from other countries. In addition to its advanced R&D infrastructure, Ireland offers numerous benefits as a food and drink production location such as its high quality, sustainable raw materials for food and beverage production, and a strong skills base in food technology and engineering coupled with a pool of talented graduates. Ireland has a well developed infrastructure around food safety, quality and sustainability. It also has an internationally competitive corporate tax regime (12.5% standard rate) and a business-friendly open economy geared for international trade.

World Leader in Sustainability Ireland now has in place a comprehensive national sustainability development programme for the food and drink industry.

Launched in June 2012 by Bord Bia (Irish

In addition to its advanced R&D infrastructure, Ireland offers numerous benefits as a food and

€100 Million Global Technology & Innovation Centre The fact that Kerry Group, an acknowledged global leader in food ingredients and flavours as well as a significant consumer foods manufacturer, chose to establish its Eur100 million new Global Technology &

drink production location such as its high quality, sustainable raw materials for food and beverage production, and a strong skills base in food technology and engineering coupled with a pool of talented graduates. Ireland has a well developed infrastructure around food safety, quality and sustainability.

Ireland now has in place a comprehensive national sustainability development programme ('Origin Green') for the food and drink industry.

Food Wise 2025, the Irish Government’s new ten year development strategy for the agri-food sector, targets an 85% increase in the value of exports to Eur19 billion by 2025. The growth is expected to deliver an additional 23,000 jobs based on the projected expansions in dairy, beef and seafood, as well as a doubling of consumer food and drinks exports.

Michael Cantwell comments: “Food Wise 2025 and its predecessor Horizon 2020 combine the capabilities of the agencies such as Enterprise Ireland and our colleagues in Bord Bia, BIM, Teagasc etc, all with a unified common purpose of helping the industry to grow. So when a foreign company comes here, they can immediately see there is a very cohesive, proactive and positive approach to developing the industry and that is very important.”

Huge Potential The Irish food and beverage industry offers huge future development potential for both indigenous and overseas companies. “The opportunities for partnerships and joint ventures in the Irish dairy and food industry have never been better. Irish companies are now better positioned to form stronger partnerships with overseas businesses than they would have been a number of years ago,” Michael Cantwell concludes. J

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IPN-QuadCore – Delivering Enhanced Environmental Credentials

By Ger Higgins, Sales Director, Kingspan Insulated Panels nce upon a time, strong environmental O ratings for a building were considered nice-to-haves – the preserve of clients with big budgets and architects with equally big reputations. But advances in environmentally-friendly building technology, coupled with a strong business case for sustainability, have affected a market shift that is pushing the environment up the agenda like never before.

Even discounting the impact of tightening building and energy regulations, the increasing prevalence of building assessment methodology ratings in the property market has been enough to drive this change.

Better Buildings More and more stakeholders are viewing BREEAM and LEED accreditation as fundamental attributes in their buildings, as vital as location, floor space and cost. The traditional view was that these certifications increased the kerb appeal of premises – helping to seal the deal when all the other boxes were ticked. But increasingly, the market is recognising the financial and reputational gains associated with better buildings.

So how will the industry respond to the

market’s desire for better buildings? First, we need to define a truly environmentallyfriendly building. Broadly speaking, it is one that will have a minimal impact on its surrounding environment and the wider world right through from breaking ground to breaking down.

This means a building that reduces operational energy consumption to a minimum, built using products that are manufactured using minimum-waste technologies that last for the duration of a building’s desired life, and that can be readily recycled when demolished.

IPN-QuadCore IPN-QuadCore meets all of these needs.

Through its industry-leading enhanced thermal performance, it can significantly

reduce energy consumption, while its superior fire protection and unique structural and thermal performance guarantee ensure it will perform as-built for 40 years. Finally, the unique microcell technology developed

by Kingspan Insulated Panels ensures the manufacturing process is as efficient as possible, and every IPN-QuadCore panel can be fully recycled at end-of-life to ensure no building waste ends up in landfill.

All of this not only means that IPNQuadCore adds six valuable BREEAM points to a building, it also potentially adds value, with a recent University of Maastricht study showing the cumulative impact on rental yields of environmentallyfriendly buildings1. This results in better buildings that work harder for owners and tenants, and a better environment for everyone.

1 Supply, Demand and the Value of Green Buildings, Chegut et al, http://usj.sagepub.com/content/51/1/22.abstra ct.

Please contact us to discover how IPNQuadCore technology can enhance the environmental performance of your project: Tel: 00353 42 96 98500; E-mail: aidan.doyle@kingspan.com or visit www.ipn-quadcore.co.uk. J

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Aquabio – A European Leader in Industrial Wastewater Treatment ith water scarcity increasingly prevaW lent worldwide, business is far more aware that not only is water a precious

offer a long term solution to water treatment provision.

resource, but that it should not be wasted and can be harnessed again. Aquabio assists with this forward thinking strategy and provides innovative technologies to treat and reuse industrial wastewater, helping companies achieve corporate responsibility targets, reduce water consumption and associated costs.

Aquabio is a European leader in industrial wastewater treatment, notably in Membrane Bioreactor (MBR) Technology and Water Recycling and Reuse. The company, based at Worcester in England, has

Industry Successes The company has a number of notable industry successes including the recently awarded contract to build a 2.6MLD (Mega Litres per Day) wastewater treatment and water reuse plant at Dairy Crest's Severnside Dairy in Gloucester, and has completed a 0/7 MLD wastewater treatment and water reuse plant for Shepherd Neame Brewery in Kent, Great Britain's oldest brewery. These two projects alone have the capacity to reuse enough water to supply a domestic population of 12,000.

In the last month, Aquabio has won a prestigious £1 million contract to supply a cutting edge sustainable wastewater treatment plant for The Glenlivet distillery in Moray, Scotland. Aquabio was chosen because of its expertise in the use of state-of-the-art proven membrane bioreactor technology to treat the effluent from the distillery. The new Plant will enable an increase in capacity to handle the growth of the distillery as well as improvements in discharge.

been established since 1997 and has pioneered the implementation of water recycling within a wide range of industries including food and drink, bio fuels, pulp and paper, landfill and leachate and pharmaceuticals. Aquabio provide long term solutions for design, build, finance and operation of wastewater treatment and reuse plants. Their process led approach to all aspects of water and wastewater treatment ensures that the most appropriate technology is identified for each unique application.

Aquabio is part of the Freudenberg Group, a global company, with generated sales of more than Eur7 billion in 2014, operating in 60 countries worldwide. The additional parental strength of Freudenberg offers financial security which coupled with operational expertise allows Aquabio to

The AMBR LE™ Process Aquabio uses its own AMBR LE ™ low energy ultrafiltration membrane bioreactor treatment technology, which has been successfully operated for effluent treatment and water reuse in numerous applications in the UK and overseas since 2001.

The AMBR LE™ process involves the use of back flushable cross-flow type membranes for the separation of biomass from the treated water which guarantees high flux rates with optimised economic and reliable operation.

Use of ultrafiltration membranes provides a complete

barrier to suspended solids thus ensuring high quality final effluent, guaranteed for watercourse discharge and providing ideal water quality for downstream reverse osmosis treatment to deliver high grade clean water. The modular design of the AMBR LE ™ system allows scope for additional plant to be added at later date to meet future demands, thus optimising both capital and operational expenditure whilst maintaining the potential for future capacity.

Aquabio’s Managing Director, Steve Goodwin, says: "Aquabio’s 15 year track record of providing large scale water reuse in the UK drinks and food sectors with low energy technology, and high engineering standards, is an important factor in customers decision to choose Aquabio. Whilst we are never complacent on our standards, we are very proud of our record of achievement and are delighted to be associated with well known companies who put their faith and trust in our capabilities." J

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AD Operators See Performance Benefits With Micronutrient Technology he latest micronutrient technology can T boost productivity - and profits - for food waste anaerobic digester (AD) operators.

Licensed operators are increasingly treating food waste through ADs for the production of constantly generated renewable

energy in the form of biogas, which can either be used on-site to reduce reliance on costly fossil fuels or sold as electricity under Government incentive initiatives like the Feed-In Tariff scheme.

However, it is rare for an AD to have the complete range of nutritional elements present for optimal bacterial growth. Shortages of specific micronutrients, which are critical components of enzyme systems in the bacteria, often occur. This can mean that the digester plant and connected system do not run at full efficiency with a consequential loss of performance and output.

OMEX Environmental have formulated Nutromex TEA, a bioavailable micronutrient mix, used in the anaerobic process to boost the availability of essential trace elements and help to improve bacterial per-

formance and increase the methane content of biogas production. This helps commercial operators to run plants at optimum levels, maximising revenue streams and return on investment through increased profits.

Visit www.omex.co.uk for further Information. J

2 Sisters Sustainability Plan Underway isters Food Group, one of the UK’s largest food manufacturers, S has started up a potato-powered energy plant as a first step in a new sustainability plan which aims to generate 35,000 tonnes of carbon savings a year and slash the group’s carbon footprint by 20% by 2018. The new bio-refinery at 2 Sisters’ Cavaghan and Gray chilled food factory in Carlisle is the first waste-powered plant of its kind in the world to be used in food manufacturing.

It uses four patented anaerobic digestion processes which are linked to extract gas. When fully operational it will produce 3,500 MWh/year in electricity, equivalent to the average annual electricity use of around 850 UK homes, and generate around 5,000 MWh/year in steam.

The energy and steam will be used to help power the Carlisle factory and slash its carbon footprint as the first step in an energy transformation project which will see bio-refineries developed at up to ten 2 Sisters factories over the coming three years. Following these initial installations, the energy-from waste plants could be installed at all 43 factories owned by the 2 Sisters Food Group.

The bio-refineries are part of an ambitious three-year sustainability plan ‘Feeding Our Future’ that 2 Sisters has launched to ensure it cuts its carbon footprint by 20% by 2018. When all the bio-refineries are installed the group expects to make 35,000 tonnes of carbon savings a year. It will also cut 20,000 lorry journeys that would have been used in removing waste which will now be re-processed to generate energy.

The bio-refineries are being run by renewable energy expert H2 Energy in partnership with 2 Sisters Food Group. J FOOD & DRINK BUSINESS EUROPE, NOVEMBER 2015

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I ENERGY EFFICIENCY

How Clean is Your Steam?

By Francisco Pedrosa, Product Manager, Clean Steam at Spirax Sarco ignificant increases in fuel costs and S calls for energy-saving measures have meant that many food and beverage manufacturers have been forced to examine the efficiency of their systems, identifying areas where the business can improve sustainability and profitability.

Steam is one such area. Whilst steam is an energy efficient, reliable and flexible way to transfer heat in many food and beverage operations, monitoring steam quality is still vitally important – not least where steam comes into direct contact with food.

Food and beverage manufacturers are, in fact, legally bound to ensure final product quality, typically by using a HACCP (Hazard Analysis Critical Control Points) methodology. This process can be applied to steam systems to ensure the correct quality of steam is being used.

Done right, this allows steam systems to be maintained at an optimum level. Steam, therefore, reaches the point of use with the correct quantity, quality and pressure. This has knock-on implications for product quality, operational costs, legal compliance, and productivity.

Different Grades of Steam Broadly speaking, there are four different grades of steam quality used in industry today, with more and more companies turning towards clean steam: Plant steam is the starting point for steam used within manufacturing. Plant steam is typically produced using either softened water, de-alkalisation or reverse

osmosis water, which is then pre-heated and chemically treated. There are a number of factors which can affect the quality of plant steam, such as the quality of raw water entering the boiler, the level of chemicals being dosed into the system, and the correct operation of the boiler. As a result, plant steam carries contaminants which could contaminate food and beverage processing when used in direct injection.

Filtered steam – sometimes referred to as ‘culinary steam’ – is plant steam passing through a fine stainless steel filter, typically 5 microns. A 5 micron filter is designed to remove 95% of all particles larger than 2 microns but as they are not designed to remove suspended water (droplets) from the steam (in the form of boiler carryover), then there is a possibility of process or product contamination.

Clean steam is increasingly being used in the food and beverage industry. It is a means of overcoming the product and process contamination risks of plant steam or filtered steam as well as the corrective actions associated with it. To create clean steam, a secondary generator with a controlled feedwater quality (namely reverse osmosis) is used to ensure steam quality is kept at the appropriate levels. The design of the steam distribution network, material selection and installation practices minimise steam degradation, ensuring that steam is of a high quality at the point of use.

If you are considering the purchase of a

clean steam generator, check that it is supplied with correct Certification to ensure it is manufactured in accordance with sterilisation regulations, eg (EN285).

Pure steam is used in the pharmaceutical industry; the steam quality exceeds that required by the food and drink industry.

Why Use Clean Steam?

As there is no legislation around steam quality, some manufacturers view the use of clean steam as discretionary. However as this article has hopefully shown - using the correct steam quality can be crucial, not least in demonstrating adherence to HACCP. Utilising HACCP, manufacturers can look at the role of steam within the process and conduct a full analysis of the steam system, identifying where hazards can be reduced or prevented and implementing monitoring procedures, corrective measures and beyond.

This allows food and beverage manufacturers to adopt good engineering practices, leading towards a reduction in energy costs and water consumption as well as improvements in productivity, energy wastage and emissions.

If you’re looking for more information on steam quality, a vendor who can provide guidance on best practice for steam systems, advise on steam quality testing and who can also offer training is a good place to start. Contact Spirax Sarco on 01242 521361 or uk.enquiries@spiraxsarco.com. J

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I CONFERENCE & EXHIBITION

Food Matters Live – ExCeL Centre, London – November 17-19 rom food science to foodservice, nutriF tion to NPD, and eco-packaging to education – Food Matters Live has it covered.

Find out more at this free-to-attend event in London this November.

Can increased consumer demand for healthier food and drink also be good for business? Can sugar replacers stave off childhood obesity? What will it take to end food waste? What makes a sustainable diet?

All these questions and many more will be tackled at Food Matters Live - the biggest ever cross-sector event to address one of the most important issues of our time: the relationship between food, health and nutrition.

Taking place at London’s ExCeL centre on November 17-19, the event is free to attend and offers visitors a host of opportunities to network with more than 12,000 professionals at the forefront of food retail and supply, manufacturing, science, health, academia and government.

More than 400 experts will take part in the impressive three-day education programme, which includes 17 live debates, 80 practical and applied seminars and six thought-provoking attractions.

17 Lively Conference Debates A stellar line-up of speakers will participate in the Food Matters Live Conference, which will focus on tackling childhood obesity, malnutrition, sustainable diets, food waste, nourishing an ageing population and sustaining consumer demand for healthier food and drink.

Peter Hajipieris, Director for Corporate Social Responsibility, Iglo Foods Group Ltd; Iceland’s Nick Canning; Innocent Drinks’ Tim Clarke; Simon Hazlett from Boulder Brands UK; Professor Colin Dennis, President of the Institute of Food Science Technologists; Marianne Smith Edge, Senior Vice President, International

Food Information Council (IFIC), Washington; Lu Ann Williams, Innovation Director at Innova Market Insights; and Dr Lisa Wilson, adviser to the European Nutrition for Health Alliance, are among those taking part.

They join government ministers, business leaders, scientists, academics, healthcare professionals and chefs in a series of in depth debates, chaired by BBC presenters Jonathan Dimbleby, Anita Anand and Justin Webb.

80 Topical Seminars At the same time a multi-stream seminar programme provides an unrivalled learning opportunity, with 300 expert speakers from nutrition, health, R&D, academia and the food and drink sector covering a wide-range of topics.

These include: free-from, allergies and intolerances, to strategies to reduce salt, sugar and fat; maternal, infant, sports and community nutrition; latest trends in sustainable retailing, packaging and exemplar brand strategies.

Andrew Opie, Head of Food and Sustainability, British Retail Consortium; Mark Pettigrew, Agricultural Sustainability Manager – Europe, PepsiCo; David Chaplin, Head of Safety, Nestlé UK&I; Severine Bensa, European Marketing Manager, Ingredion; Padraig Brennan, Sustainability Development Manager, Bord Bia; Nard Clabbers, Senior Business Developer, TNO, and Dr Ari Haukkala, Department of Social Research, University of Helsinki, are among the seminar speakers.

400 Exhibitors And to put all these issues into perspective is the Food Matters Live Exhibition, which features household names such as, The Bell Institute of Health and Nutrition/General Mills, Yakult, Nutricia Early Life Nutrition, Nestle Cereals, TNO and Wageningen UR Food & Biobased Research.

These are enhanced by a number of thought-provoking, interactive visitor attractions and themed areas located within the exhibition, designed to bring to life the learning from the education programme.

Among them is the Evidence Base attraction, which focuses on the innovation and nutritional science underpinning product development in ‘better for you’, natural and

functional food and drink.

The Sustainable Edibles theatre hosts a series of tastings, introducing new and alternative approaches to food, from meat replacers to tips for turning food waste into nutritional dishes.

Elsewhere, cooking demonstrations will take place in the new Innovation Ingredients theatre with BENEO, IFF, Cobell Ltd, Rousellot and GNT among those taking part.

The Food Matters Live Research Pavilion hosts some of the food sector’s leading R&D organisations, bridging the gap between academia and industry - while country specific pavilions represent international innovation from Belgium, Holland, Italy, France, Scotland and Wales.

Exhibitors and visitors will have a chance to forge relationships with retailers, manufacturers and distributors at the Meet the Buyer area - while The Growth Lab offers entrepreneurs access to a range of business advisory specialists.

In addition, Food Matters Live plays host to a number of special events, ranging from industry awards, the launch of a free-from accreditation scheme, to industry networking and collaboration at the Enterprise Europe matchmaking meetings.

Food Matters Live is free to attend, including entry to the conference, seminars and all visitor attractions. Simply register at www.foodmatterslive.com. J

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I BREWING

SABMiller Agrees to £68 Billion Takeover by AB InBev The proposed £68 billion acquisition of SABMiller by AB InBev represents one of the top five mergers in corporate history and the largest ever takeover of a UK-based company. he board of SABMiller has accepted the key terms of a possible recommended offer to be made by AB InBev of £44.00 per share in cash, with a partial share alternative available for approximately 41% of the SABMiller shares. The cash and share offer is worth £68 billion ($104.4 billion). The latest cash proposal represents a premium of over 50% to SABMiller's closing share price of £29.34 on 14th September 2015 - the last business day prior to renewed speculation of an approach from AB InBev. A successful acquisition by AB InBev would combine the world’s two largest brewers to create a group that would generate revenues of $64 billion and EBITDA of $24 billion. The combined group would control about 31% of the world beer market (by volume sales), well ahead of second ranked Heineken on 9%, and would hold an even higher proportion (about 50%) of the global profit pool.

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Carlos Brito, chief executive of AB InBev.

AB InBev owns 16 brands each generating over $1 billion in retail sales per year including its three global brands Budweiser, Corona and Stella Artois. Its global brands are complemented by international brands Beck’s, Leffe and Hoegaarden, along with local champions, such as Bud Light in the US, Harbin in China, Skol in Brazil, Jupiler in Belgium and Quilmes in Argentina.

SABMiller’s portfolio includes global brands such as Pilsner Urquell, Peroni Nastro Azzurro, Miller Genuine Draft and Grolsch, as well as leading local brands like Aguila, Castle, Miller Lite, Snow and Tyskie.

SABMiller is also one of the world’s largest bottlers of Coca-Cola products.

A merged AB InBev and SABMiller would own 18 or the world’s top 40 beer brands by volume.

AB InBev owns 16 brands each generating over $1 billion in retail sales per year.

driver of its success, and we intend to susTruly Global Beer Company tain this, to support the future growth of Given the largely complementary geo- the business,” Carlos Brito explains. “We graphical footprints and brand portfolios of also intend to maintain a local listing in AB InBev and SABMiller, the combined South Africa by seeking a secondary listing group would have operations in virtually of AB InBev shares on the Johannesburg every major beer market, including key Stock Exchange. And we intend for emerging regions with strong growth Johannesburg to continue to be the regionprospects such as Africa, Asia, al headquarters for the combined group on and Central and South America. the African continent. In addition, we “We are very excited about envisage a local South African board to play the prospects of creating the an important role in the business and therefirst truly global beer company, fore would be a critical component of the and we believe we could achieve future success of the company.” more together than we can apart,” comments Carlos Brito, Crown Jewel chief executive of AB InBev. AB InBev had four earlier proposals reject“Together, we have better ed by the SABMiller board - the first at growth prospects and an appeal- £38.00 per share in cash, the second at ing mix of global and local brands that consumers love.”

The acquisition will gain AB InBev entry into the fast growing beer market in South Africa, the traditional home of SABMiller. SABMiller is listed on the London Stock Exchange but has retained a secondary listing on the Johannesburg Stock Exchange.

“We are very excited about the prospects of making a major investment in Africa, a continent that we believe has great growth prospects. SAB’s South The acquisition will gain AB InBev entry into the fast African heritage and its commitment to growing beer market in South Africa, the traditional the African continent have been a key home of SABMiller.

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or contractual considerations promptly, following discussions with SAB and its business.”

Indeed, AB InBev has agreed to pay SABMiller a $3 billion break fee in the event that the transaction fails to close as a result of the failure to obtain regulatory clearances or the approval of AB InBev shareholders.

A successful acquisition by AB InBev would combine the world’s two largest brewers to create a group that would control about 31% of the world beer market.

£40.00 per share in cash, the third at £42.15 per share in cash and the fourth at £43.50 per share in cash.

AB InBev’s earlier approaches had very substantially undervalued SABMiller, according to Jan du Plessis, chairman of SABMiller. “SABMiller is the crown jewel of the global brewing industry, uniquely positioned to continue to generate decades of standalone future volume and value growth for all SABMiller shareholders from highly attractive markets,” he says.

Developing markets generate about 70% of SABMiller’s profits, whereas about 80% of AB InBev’s profits are generated in just four countries - the US, Canada, Brazil and Mexico.

Good For Consumers Carlos Brito insists that a combination of AB InBev and SABMiller would be In the UK, SABMiller has acquired London-based good news for consumers. “For con- Meantime Brewing Company, a pioneer in British modern sumers, this is about choice, more craft beer. choice in more regions of the world.

Our joint portfolio of global and local beers continued to grow. brands would provide more choices for “Craft beer continues to rise rapidly. In beer drinkers in new and existing markets America, it now constitutes around a fifth around the world. Consumers would have of the value of the total beer market, and it more opportunities to taste a wide range of is growing prolifically in Europe, but also beers, ranging from specialty and craft further afield in Asia Pacific and Latin beers to local champions and global flag- America,” points out Jonny Forsyth, global drinks analyst at Mintel. ship brands,” reasons the AB InBev chief.

AB-InBev has responded by buying a Carlos Brito adds: “As an example, since our combination with Anheuser-Busch, we number of smaller craft breweries in the US have successfully grown Budweiser globally since purchasing Chicago-based Goose with international sales now accounting Island for $39 million in 2011. Indeed, for over half of total volume. We also see Heineken and Carlsberg Group, the significant opportunity in bringing togeth- world’s third and fourth largest brewers er our innovation capabilities to introduce respectively, have also recently moved into exciting new products that suit the tastes the US craft beer market.

Heineken has just completed the acquiof consumers around the globe.” sition of a 50% shareholding in the Lagunitas Brewing Company, the fifth Craft Beer Challenge AB InBev has pursued a strategy of acquir- largest craft brewer in the United States ing smaller breweries to increase scale and by volume. Carlsberg has entered into a top line growth and then ruthlessly cutting collaboration with Brooklyn Brewery of costs to enhance earnings. The acquisition New York To open breweries in Sweden of SABMiller is the last mega deal open to and Norway.

SABMiller has launched a number of AB InBev. While it will provide an immediate spurt to growth, in the longer term ‘craft’ beers like Blue Moon, Leinenkugel, global brewers face the challenge of adjust- and Batch 19. In the UK, it has acquired ing to a market-place where their major London-based Meantime Brewing brands, such as Budweiser and Bud Light, Company, a pioneer in British modern are waning in popularity as consumers craft beer, for an undisclosed sum.

“This is the first time a major brewer show a preference for craft beers.

For instance, in North America, AB has swooped for a ‘new wave’ craft brewInBev’s organic volume fell by 3% in ery in the fast developing UK craft beer the first half of 2015 and its market market,” says Jonny Forsyth. “The UK – share declines by 50 basis points as craft like Sweden and the rest of the Nordic countries – has been a frontrunner in this European craft beer development.”

Meantime grew its volumes of beer sales by 58% in 2014, outpacing the UK beer market’s 1% growth during the same period and making it one of the top-performing modern craft breweries in the UK.

Regulatory Hurdles AB InBev is confident of being able to overcome any regulatory hurdles. A Key area of concern is the US, where the combined businesses would control about 70% of the beer market, so forcing the divestment of SABMiller’s 58% share in MillerCoors, its joint venture with Molson Coors Brewing Company.

SABMiller’s 49% stake in CR Snow, a joint venture with China Resource Enterprises and one of the biggest brewers in China, is also likely to be divested.

“Our geographic footprints are largely complementary on a continental and regional basis, and we will be proactive in dealing with the relevant authorities to bring all potential reviews to a timely and appropriate resolution,” says Carlos SABMiller’s portfolio includes global brands such Brito. “In the US and China in particu- Urquell, Peroni Nastro Azzurro, Miller Genuine lar, we will seek to resolve any regulatory Grolsch, as well as leading local brands.

as Pilsner Draft and

FOOD & DRINK BUSINESS EUROPE, NOVEMBER 2015

Deadline Extension The UK Panel on Takeovers and Mergers has agreed to further extend the deadline for AB InBev to lodge a formal bid for SABMiller from 4 November to 5.00 pm on 11 November 2015, to enable the parties to continue their talks. J 27

I POULTRY

Moy Park Enhances Production Capabilities Northern Ireland-based Moy Park, which is one of Europe’s largest poultry processors and the UK’s largest producer of organic and free range chicken, is celebrating 40 years of operation at its flagship site in Dungannon as it undergoes a major £20 million investment programme to significantly enhance production capabilities as one of the most advanced processing plants in Europe. perating 13 production sites and employing over 10,600 people, Moy Park supplies leading retailers and food service operators throughout the UK, Ireland and Europe with a range of high quality, fresh, coated and added value poultry products. The £1.42 billion turnover business achieved profit before tax and exceptionals of £32.5 million in 2014. Moy Park is a vertically integrated poultry group encompassing parent/broiler hatcheries and primary and further processing factories. The company’s ethos is the production of ‘fresh, high quality, locally farmed poultry’.

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deboned thighs, fillets and mini fillets, ingredients and livers. The Ballymena site also produces turkey products.

The primary production sites are complemented by further processing/convenience plants at Craigavon in Northern Ireland, Grantham and Wisbech, both in England, which produce a range of ready to cook products including cooked whole birds, marinated chicken, snacking products and cooked sliced meats. Craigavon and Grantham also produce coated products, both fresh and frozen, such as nuggets, goujons, chicken kievs, steaks and portions. £170 Million Expansion The investment at Dungannon is part of £170 million expansion programme across Moy Park’s three Irish sites in order to accommodate continued growth in sales, chiefly to customers outside Northern Ireland. The investment entails the installation of additional processing lines and the establishment of an Innovation Centre to drive new product development, as well as Financial Services - a new role for the Craigavon site – and will result in the creation of 628 new jobs over a four year period.

Moy Park supplies leading retailers and food service operators throughout the UK, Ireland and Europe with a range of high quality, fresh, coated and added value poultry products.

Investment Programme The investment programme at Dungannon is designed to introduce technology advancements and production efficiencies while also creating an enhanced working environment for staff. The first phase of the expansion has been completed and has resulted in production rising from 1.3 million to 1.8 million birds per week, with a further increase in output to 2.3 million birds per week when the programme is completed.

“I am very proud to be part of a team which has continually advanced and grown this facility over the past 40 years,” says Ronnie Newell, general manager at Dungannon, who has worked at the factory since it opened in 1975. “When Moy Park opened the Dungannon plant, we processed 120,000 birds per week and had around 150 employees. Today, we are processing around 1.8 million birds per week here and have 2,000 employees.”

Dungannon is one of four primary production sites operated by Moy Park. The other three are based at Ballymena in Northern Ireland, and Ashbourn and Anwick in England. These four sites produce a range of products including whole chickens, portions,

Innovation Moy Park has an enviable track record of innovation and was named Product Developer of the Year at the prestigious Meat & Poultry Processing Awards 2015, following the launch of its Moy Park branded ‘Good Kitchen’ and ‘Good to Go’ ranges.

Developed to target a growing market for added value fresh chicken products, the innovative ‘Good Kitchen’ range includes

Moy Park is celebrating 40 years of operation at its flagship site in Dungannon as it undergoes a major £20 million investment programme.

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whole chicken product to use this innovative packaging technology,” explains Briege Finnegan, brand marketing manager at Moy Park. “The packaging self-vents and enables the chicken to selfbaste throughout the cooking process, which results in more succulent meat and an enhanced flavour. We developed the range to offer consumers a convenient shelf to oven roast in the bag chicken, making it ideal for those who don’t like touching raw meat or don’t have time to prepare a raw chicken from scratch. Due to the innovative nature of the packaging, the chicken browns in the pack without having to open it during cooking. The cooking juices are retained within the pack, which means consumers will be able to create flavoursome stocks and gravy.”

Moy Park recently developed the first roast-in-the-bag chicken product to use cutting edge thermoformed packaging technology.

three ‘ready to cook’ flavour infused chicken breast products and three straight to pan ‘ready to heat’ chicken breast products. The ‘Good to Go’ range is Moy Park’s latest product range aimed at the ‘food to go’ category and offers consumers deli-inspired chicken dishes, meeting the demand for innovative products in this category.

The Meat & Poultry Processing Awards recognise and reward expertise, skill, innovation and entrepreneurship in the processing sector. The Product Developer of the Year accolade is awarded to the company that demonstrates the highest standards of creativity and innovation.

Cutting Edge Technology Moy Park also recently developed the first roast-in-the-bag chicken product to use cutting edge thermoformed packaging technology.

The state-of-the-art packaging is a printed, sealed pack that can go straight into the oven.

The new ‘shelf to oven’ whole chicken product has been launched under the Moy Park ‘Good Kitchen’ range. The roast-inthe-bag ‘ready to cook’ whole chickens are locally sourced and come in two flavours ‘Extra Tasty’ and ‘Garlic & Herb’.

“Our new roast in the bag range is the first retail ready, ovenable

Change in Ownership Moy Park is now part of Brazilian meat group JBS, after being sold for US$1.5 billion (Eur1.33 billion) earlier in the year by Marfrig Global Foods, another Brazil-based meat group. JBS is a global leader in beef, lamb and poultry processing and is also heavily involved in pork production. With over 200,000 employees worldwide, the company has 340 production units and businesses in the foodstuffs, leather, biodiesel, collagen, metal packaging and cleaning products industries. JBS is the world's largest exporter of animal protein, selling to over 150 countries.

The acquisition of Moy Park will further JBS’s strategy of expanding into European markets. The disposal will reduce Marfrig’s debt burden and is in line its ‘Focus to Win’ strategy, which aims to sharpen the company’s focus on the food service segment and on beef exports from Brazil. J

Moy Park is a vertically integrated poultry group encompassing parent/broiler hatcheries and primary and further processing factories.

SonoSteam – When Food Safety Matters athogens have to be taken seriously but P good hygiene is more than a question of food safety. Better hygiene leads to improved shelf life due to lower risk of contamination from spoilage microorganisms.

As production tends to go on for many hours without cleaning, the bacterial growth on production equipment increases and it is impossible to eliminate all of the bacteria with chemical decontamination.

But what if you could kill bacteria during production and maintain the same high level of hygiene that you had at the beginning of the day? With SonoSteam decontamination you can!

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A SonoSteam treatment uses a combination of pure steam and ultrasound, and takes only 2 seconds. It is not affected by minor food debris and will reset the micro-

bial load on the surface.

With SonoSteam, cross contamination is prevented; therefore, subsequent products are no longer contaminated! Consider the potential when changing to other products on a production line.

Imagine how beneficial it would be to be able to decontaminate a conveyor belt every half hour during production. It would result in a longer shelf life, which would even have less variation. Furthermore, as SonoSteam works without chemistry, any risk of chemical contamination of any food product is avoided and SonoSteam is therefore ideal for organic production and packing lines. J

FOOD & DRINK BUSINESS EUROPE, NOVEMBER 2015

I LEAN MANUFACTURING

Manufacturing Solutions Make Efficiency and Sustainability Walk Hand-in-hand n recent times, discounters as well as priIforced vate labels have seized market share and suppliers to cut prices.

Manufacturers have had to adapt to fast changing consumer tastes by introducing new products quicker, whist remaining competitive. In the meantime, sustainability/corporate responsibility have come to the fore.

In these circumstances, throughout the food and drink supply chain, cost cutting has been one way manufacturers have found to maintain margins. But lean manufacturing ultimately is not about cost cutting, it is about enabling continuous improvement and becoming more agile.

Food and drink manufacturers have essentially focused on three areas in their lean initiatives: • Improving throughput of existing equipment (OEE metric); • Improving material yield and reducing waste/rework; • Reducing inventory (and working capital).

Delivering Sustainable Results

“In the past, it might have been enough to introduce such initiatives locally or to target only obvious areas of improvement.

What we see now is that none of these can be done in isolation, as peace-meal programmes can’t deliver the sustainable results manufacturers require,” explains Tim Barber, European Business Director of

Lighthouse Systems.

He adds: “There can’t be successful lean programmes without appropriate metrics and accurate operational data.”

Lighthouse Systems develops world-leading MES software solutions used by major players throughout the food and drinks industry supply chain. Lighthouse Systems is a specialist software provider entirely focused on developing, delivering and supporting manufacturing execution systems.

With a presence in Europe (UK, An OEE dashboard in Shopfloor-Online.

France and Nordic), in the USA consumption, amount of scrap and and in Singapore, Lighthouse Systems’ rework and importantly, it shows where serves industry globally and its solutions are overweight and overfill may have hapinstalled in over 50 countries. pened.

Shopfloor-Online MES Solution • Inventory Traceability, the system can Shopfloor-Online, Lighthouse Systems’ tell where inventory came from, Manufacturing Execution System (MES) how/where it has been used, what is left, solution, delivers the metrics on which lean what needs to be used next or replenprogrammes can be built. Consequently, ished.

Lighthouse Systems is able to proShopfloor-Online also provides the tools vide plant-wide visibility of manu- to address important issues, such as: facturing operations - and in real- • Production planning tools to reduce bottime! With an MES software solutlenecks and slow running; tion, all manufacturing data is • Statistical Process Control analysis to recorded in one place. The software reduce waste and meet quality demands; is a platform providing the KPIs • Weigh and Dispense tools to ensure corfood and drink manufacturers need rect weighing and filling; to drive their lean initiatives, and it • Inventory Tracking tools to better mandoes so without any of the ineffiage in-line consumption, material moveciencies inherently attached to manment on the shop floor and meet traceual data collection. ability requirements; The software provides data to • Maintenance tools to drive maintenance support efficiency/yield improveactivities away from reactive repairs and ments, reduce waste, optimise inventory towards preventative actions to improve levels and ensure traceability: equipment uptime.

• Real-time OEE metrics • Volumes actually produced and variables Modular Design impacting the volumes such as the time it Lighthouse Systems’ Shopfloor-Online takes to change a production on a line MES software is highly modular. “This (changeovers), or time spent on cleaning means for example that if OEE is your focus, we will provide an OEE solution,” processes.

• Actual material yield based on normal says Tim Barber. “However if you would

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Operations (inspection plan, quality checks, SPC), Inventory Operations (creation, management of raw material, semi-finished and finished goods; inventory age management, labelling), Maintenance Operations (asset register, maintenance management, energy management.)

Missing Link

Put simply, an MES system can provide the missing link between Sales Orders and Production. Typically an ERP system manages Finances, Sales Orders and schedules Production Orders. It does not know the current state of the factory, which orders are nearing completion, quality problems or breakThe strengths of Shopfloor-Online MES: mobularity and downs. Information the ERP uses integration. can be 24 hours old. like to add Quality Control and provide An MES system is real-time and knows your customers with Quality Assurance exactly what is happening on the shop floor.

Certificates, this can be added as an inte- Food processors can have a view of the Factory grated solution, as Shopfloor-Online has a as product is being manufactured. Linking the module for managing quality operations, ERP system to MES provides an integrated including quality control plans.” production system allowing schedulers realThe application functionality of time information on which to make decisions.

Shopfloor-Online is one of the widest in “Operationally, by monitoring throughput, the market as it includes Production Making Lines and Packing Lines can be Operations (scheduling), Quality assessed against expectations and improvement

programmes actioned to increase efficiency.

Quality data can be collected against specifications for individual products and Quality Assurance Certificates produced,” Tim Barber points out.

By having Production, Quality and Maintenance information on one system, a rich picture of what is happening and what has happened in the factory is available, for example in the important area of Traceability. ShopfloorOnline MES can track each process, whether high or low risk, throughout manufacture. As data concerning Quality and Raw Material consumption can also be collected, a complete Manufacturing history can be built, allowing full genealogy and traceability against a Material, Product, Batch or Production Order.

This means Audits are simpler, quicker and richer in detail and less prospect of Customer Issues.

Return on Investment

“By working closely with our clients, our Consultancy and Integration Services ensure Shopfloor-Online MES delivers a Return on Investment usually in 6 to 12 months, depending on the scope of the project,” Tim Barber concludes.

For further information contact Lighthouse Systems on Tel +44 1293 605 300, Email info@lighthousesystems.com or visit www.lighthousesystems.com. J

JBT Launches Cost-efficient Two-zone Cooking System lobal food processing equipment manuG facture, JBT, has launched the Double D Revodrum® 600 Twin Drum Oven, a compact and versatile two-zone cooking system for a wide range of applications.

The Revodrum 600 Twin Drum Oven was introduced to address the need for a machine that can cook, roast and steamcook a wide range of applications, while maintaining low running and maintenance costs. The new oven also fills a gap in JBT's portfolio for a two-zone oven which can process higher volumes of up to 4 tonnes of product per hour.

“This new twin drum oven combines all JBT's expertise and experience in cooking technology,” says Torbjorn Persson, JBT’s portfolio and applications director. “It features Double D's unique airflow technology, Frigoscandia's spiral engineering, and thermal fluid technology from Stein, all in a compact footprint of only 9.4 by 2.9 metres high – this is the lowest roof height of any twin

drum oven on the market.”

He adds: “The oven's airflow and superior heat transfer guarantee a uniform temperature and colour on every product right across the belt on all forms of poultry and breaded products. It's also versatile enough to cook burgers and patties, pork products, croquettes, seafood and ready meals.”

Available with eight up to 14 tiers, the Double D Revodrum 600 Twin Drum Oven can cook over 2,100 kg/hr chicken breast fillets (85gms), or bone-in pre-

fried breaded chicken, an hour.

Independent moisture and temperature controls in the dual zones mean that the cooking process can be tailored to suit exact requirements.

With a temperature capability of up to 240 degrees Centigrade, the twin drum oven also produces excellent results when roasting or steam-cooking chicken and poultry. A hot belt return through the cooker keeps the belt warm before it is washed and reloaded with product, which also improves the roasting effect.

As with all JBT products, the Revodrum Twin Drum Oven is low maintenance and its automatic cleaning and recirculation system makes it easier and less costly to clean.

The Double D Revodrum 600 Twin Drum Oven can be tested at JBT's Food Technology Centre in Helsingborg in Sweden. For further information visit www.jbtfoodtech.com. J

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I LEAN MANUFACTURING

Lean Manufacturing, Factory Optimisation & OEE

By Roy Green, Harford Control Ltd ithin the final quarter of yet W another year, we reflect upon those manufacturing companies who grasped the metal of continuous improvement in 2015 and began to show significant improvements to their bottom line, but also reflect upon those who did not, those who thought it was too early and chose to shelve their investment in Lean for yet another year.

A few common reasons given for delay: • ‘We’re not making money so we can’t afford to spend any.’

• ‘If we aren’t spending any money it can’t be costing us any.’

• ‘We are making profits so we have no need to invest in continuous improvement.’

• ‘Our products are so varied that we can’t benefit from Average Quantity Law & need to remain on Minimum Quantity.’

• ‘OEE doesn’t fit with our organisation.’

• ‘If we become more efficient the company will chop our overtime.’

• ‘Six Sigma can’t be applied to our organisation.’

Some believe there is always another day to make improvements – ‘what we have always done has brought us to this point, so why change?’ One of the most common reasons we hear for doing nothing is ‘it’s too early yet.’

raw materials & of labour. In the first of these, Six Sigma can play a pivotal role as it can help differentiate between normal expected variation (process capability) and special causes of variation. If the difference between these two types of variation is not fully understood, then operational personnel may try to solve special causes of variation with the tools which are only appropriate to control common causes of variation.

Quality Control – Materials Utilisation

One simple example of this is in compliance with Average Quantity Law. When

first introduced in 1979, it was heralded as one of the few pieces of government legislation which actually helped manufacturers reduce operating costs. Average Quantity Law allows manufacturers to spread natural process variation across the declared quantity, such that some packs would contain more than the stated weight/volume, whilst others would contain less.

However, even in the best run manufacturing operations, things do sometimes go wrong and natural variation suddenly becomes far greater than expected. In this situation, it is absolutely essential that operational personnel know the actions to be taken & don’t fall into the trap of simply trying to adjust a machine, when more radical actions are required.

Lean & Six Sigma

As Six Sigma is really a set of tools for the reduction of variation & standardisation of processes, it is relevant to every business.

What’s easily forgotten, amidst the complexity of each manufacturing operation, is that it’s merely a conversion process for converting raw materials into finished products. The only two things, therefore which can be improved upon are the utilisation of 34

OEE

A second area of considerable benefit, but also with its potential pitfalls, is OEE, which has proven invaluable for many companies in bringing together such departments as Logistics, Planning, Engineering, Production & Quality, to encourage them all to accept that, when it comes to machine based operational efficiency, there is only one truth.

But even staunch OEE supporters would admit that OEE is only a measure of machine and overall effectiveness, & not a measure of labour utilisation. Other measures like ‘units per man hour produced’ can be far more effective in working out true unit production costs. There are clearly strong arguments for using both.

No Panaceas

We believe, therefore, that none of the Lean tools alone are panaceas but, used collectively contribute hugely to a lean manufacturing environment. The reason so many OEE initiatives fail, or fail FOOD & DRINK BUSINESS EUROPE, NOVEMBER 2015

to achieve expected objectives, is that people often expect too much from one metric, taken from an ever increasing toolkit of performance improvement options.

Visiting factories, we begin by understanding what’s actually going on, bearing in mind that every step in the process should ideally add value.

Some supporting functions are still necessary, for compliance etc., though in themselves they add no value.

However, that doesn’t mean to say Factory Display Screen. that those non-value-added functions couldn’t be done just as effectively, but at Lean Manufacturing should always begin lower cost. Similarly, people could be more with a value stream map of the production ready to challenge the value added activi- process to be improved. This becomes the ties, simply because, everywhere value is base line against which all future perforadded, some cost is also bound to be added. mance improvements can be compared.

The challenge is to constantly evaluate each Within this improvement process, there step of the process & to determine whether will no doubt be opportunities to challenge maximum value is being added at minimal the current methods of reporting & analysis, machine performance, standard operatcost. ing procedures, training, quality of raw Value Stream Mapping materials & so on. It is therefore very Apart from an understanding of the tools important to, not only find the right sysand techniques available, we believe that tem to help implement Lean, but also the

right partners to work with who already have experience & understanding of the application of such tools and techniques to maximum effect.

Whilst there is nothing wrong with commencing with a cheap OEE system, (to eliminate paper and hopefully improve efficiency) or to automate coding & labelling set-up to minimise operator error (perhaps through pressure from supermarkets), these should be seen as good manufacturing practice (GMP) steps along the journey of continuous improvement & not end games in themselves.

If the ultimate prize is performance optimisation, through the application of Lean technologies, wherever you start the journey, it is essential to have a clear vision of where you want to end up and, just as importantly, to plan how you intend to take the operational personnel with you along this journey, thus ensuring that the necessary cultural change takes place once & for all, and that gains made, stay made, whilst other improvements are worked upon. J

LEAN ON US

Harford’s latest Lean Manufacturing System boosts efficiencies whilst improving quality consistency, minimising production/packaging wastage and operational errors

This uniquely holistic approach has not only ensured the elimination of coding and labelling errors (in line with supermarket Codes of Practice), but also improved quality, minimised operational errors and helped reduce manufacturing costs by £millions per annum.

Other soft benefits (hard to quantify in value) have seen the elimination of factory floor paperwork and easy, instant traceability.

One integrated system optimises Machines, Labour and Materials Utilisation, whilst maintaining Compliance.

Call Harford for a FREE on site evaluation and see for yourself how much we can save together.

Harford Control Ltd. T: 01225 764461 W: www.harfordcontrol.com E: sales@harfordcontrol.com FOOD & DRINK BUSINESS EUROPE, NOVEMBER 2015

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I DAIRY

Arla Foods Stays Focused in an Unpredictable Market Faced with a highly volatile and depressed global dairy market, Arla Foods, the world’s seventh largest dairy processor, is expanding the proportion of added-value and branded products within its overall sales volume to increase operating profit, while also continuing to focus on efficiency and cost control to maintain competitiveness. ollowing the abolition of EU milk quotas in April 2015, Arla Foods expects to process an additional 34% of raw milk every year.

However, the depressed global dairy market has impacted the co-operative’s ability to safeguard the milk price paid to farmers and to deliver value to its owners.

per kg and the record high achieved in 2013.

“We have mitigated the impact of the negative market by directing the increasing milk volumes into retail and branded products, consequently limiting the amount going into less profitable commodity products. We are doing everything we can to minimize the effects of the general global market situation, how- Arla Foods has invested £150 million in a new dairy at ever it cannot change the fact Aylesbury in the south of England. that our farmer owners are in a tough situation right now,” says Peder Palatinate in Germany. About Eur110 milTuborgh, chief executive of Arla lion has been invested in the construction Foods. of a new milk drying tower, a new creamArla Foods is pursuing a two ery and additional milk preparation and pronged strategy to manage the per- processing capacity. Pronsfeld has now formance price - driving volume become by far the largest production site through retail and branded products operated by Arla Foods and is also one of and active cost management. the largest within the European dairy industry.

Pictured at the opening of ArNoCo’s new production facility Also in Germany, Arla Foods’ joint venin Northern Germany are (from left): Peder Tuborgh, chief Heavy Investment ture with DMK, Germany's largest dairy executive of Arla Foods; Christine Holt from SPX; architect Arla Foods has prepared for the addico-operative, has been officially launched Peter Klinck; and Dr Josef Schwaiger, chief executive of tional volume its farmer owners will produce in the post-quota era by and the new production facility is up and DMK Group. investing heavily in expanding process- running at full speed. The new joint venAs a leading European dairy co-operative ing capacity and investing in the latest ture is called ArNoCo and is based at that is owned by 12,700 farmers from technology to optimise efficiency and to DMK's Nordhackstedt site. It processes Denmark, Sweden, the UK, Germany, enhance new product development. For the whey produced by DMK's cheese-makBelgium, Luxemburg and the Netherlands, instance, Arla Foods has spent Eur120 Arla Foods’ key objective is to increase million on establishing a lactose manprofitability in the business in order to ufacturing plant in Jutland, Denmark. generate higher earnings for the group’s The new factory is situated adjacent to owners in the long-term. This is reflected Arla Foods Ingredients’ existing whey in the ‘performance price’, which indicates processing facility, Denmark Protein. how much value Arla Foods is able to gen- Arla Foods Ingredients is a global erate from each kilo of milk supplied to the leader in natural whey ingredients for company by its co-operative owners. products in a range of categories – from sports nutrition, beverages, bakFall in Revenue ery, dairy and ice cream to clinical and In the first half of 2015, group revenue infant nutrition. Lactose from the facdropped 3.8% to Eur5.13 billion com- tory is predominantly targeted at the pared to the corresponding period in 2014, infant nutrition sector.

The new Eur120 million lactose manufacturing plant in while the performance price at 33.8 euroArla Foods also recently opened a Jutland, Denmark, is situated adjacent to Arla Foods cent per kg of milk was significantly below new powder and butter facility at its Ingredients’ existing whey processing facility, Denmark the previous year’s level of 41.7 eurocent site at Pronsfeld in Rhineland- Protein.

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owners, it is essential that we keep a firm grip on our costs. For this reason we have reduced investments by 30 per cent and are continuing to streamline the organization vigorously and control costs. Our ambition is to achieve total savings from cost programmes of Eur330 million before the end of 2015 compared to 2012 – and we are on track to do so,” says Peder Tuborgh.

Arla Foods is maintaining its Pictured at the opening of a new production area at Arla investments in marketing and innovaFoods’ site at Pronsfeld in Rhineland-Palatinate are (from tion as it seeks to move more milk left): Jurgen Wolff, site director of Pronsfeld Dairy; Peder volume into its retail and food service Tuborgh, chief executive of Arla Foods; Malu Dreyer, Chief activities and so reduce its exposure to Minister of Rhineland-Palatinate; and Tim Orting Jorgensen, industry commodity sales. “We conexecutive vice president and head of Arla Central Europe. tinue to invest in strong brands and new products while keeping costs ing operations – around 700,000 tonnes under very tight control. Arla’s long-standevery year – to make whey protein concen- ing focus on efficiency and cost control is trate and lactose. crucial to our competitiveness and our proIn the UK, which is Arla Foods’ largest grammes in these areas are performing market, the dairy co-operative has invested according to plan,” he remarks. £150 million in a new dairy at Aylesbury in the south of England, which is the most Developing New Markets efficient, fresh milk processing facility of its The dairy group is also making progress in kind in the world (see Panel). its strategy of developing new markets beyond the EU. During the first half of Cost Management 2015, Arla Foods entered a co-operation However, given the weak global dairy mar- with Australia’s largest cheese importer, F ket and its unpredictable nature, Arla Mayer Imports, with the ambition to mulFoods has reduced capital expenditure for tiply its revenue in Australia fivefold from 2015 and has renewed its focus on active Eur27 million to Eur134 million by 2020. cost management across its operations. It is Similarly, Arla Foods can now sell its prodconcentrating on investments that support ucts across Egypt after forming an alliance expansion in the international dairy with local dairy company Juhayna. group’s strategic growth markets outside “Arla will continue to target consumers the EU which will enable it to channel who require nutritious and inspiring dairy additional owner milk into branded prod- products of high quality. This drives our ucts. Consequently, Arla Foods has post- focused global investment in brands, innoponed a number of projects until the glob- vation and new markets and is the reason al dairy market improves. for the new subsidiaries in Australia and “When times are challenging for our Egypt,” Peder Tuborgh explains.

Arla Foods is also continuing its expansion in Africa through two new joint ventures in Nigeria and Senegal. By teaming up with two strong local partners, Tolaram in Nigeria and Attieh Group in Senegal, Arla Foods will gain the distribution necessary to develop its business in West Africa.

The move furthers Arla Foods’ ambition for growth in sub-Saharan Africa, where its aims to expand its annual revenue from about Eur90 million to Eur460 million by 2020. This is to be achieved initially through sales of powdered milk and liquid milk, which is in high demand among the rapidly growing middle class in and around the big cities, and eventually also butter and cheese.

Outlook “The global dairy market has rarely been as unpredictable as now, and unfortunately 2015 is proving to be as challenging as we anticipated. Our long-term view is that the market will turn again in the first half of next year, which is why we will stay focused on our strategic agenda,” says Peder Tuborgh.

Arla Foods is projecting full year profit for 2015 within the range of 2.7% to 3.0% of group revenue, up from 2.3% in the first half. Revenue for the full year is expected to reach Eur10.2–10.3 billion. J

Arla Aylesbury Wins Innovation Award at Best Factory Awards 2015 Arla Food’s Aylesbury site has been crowned winner of the Innovation Award tems that carry out more than twenty different inspection functions such as at the 2015 Best Factory Awards (BFA) held recently in London. the integrity of the closure and the presence of the seal, and the automated Director of the Best Factory guided vehicles that take the milk bottle Awards, Professor Marek trolley to the lorries in the dispatch Szwejczewski explains why Arla area.

Aylesbury won: “The level of techJo Taylor, site director for Arla nological innovation that has been Aylesbury, says: “Our aim from the start installed is inspiring and it all was to produce great tasting, high qualiworks together as an integrated ty milk products, and to secure a good whole; creating not just a super price for the farmers who own Arla. dairy but a vision of the dairy for Having efficient operations, and drawing the future. Arla Foods has created on modern technology helps us process not only a more efficient operation more milk, which helps generate more but also one that is environmentalmoney for our farmers.” ly friendly.”

Aylesbury was opened in 2014 and is The Arla Aylesbury site brings the world’s largest fresh milk facility, together numerous innovative eleprocessing and packaging up to one bilments, including: high speed filling lion litres of milk a year from British lines, camera’s that check the BBC Breakfast's Steph McGovern presents the award to the team from Arla farms – equivalent to 1.5 million bottles colour of the caps, inspection sys- Aylesbury. of milk a day.

FOOD & DRINK BUSINESS EUROPE, NOVEMBER 2015

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I DAIRY

Change in the EU Dairy Sector Post the End of Quota – More Milk, More Exports and an Opportunity Across the Continent?

By John Giles, Divisional Director, Promar International or many years, the EU has been slowly modifying its approach to supporting European agriculture and on April 1 2015, one of the major pillars of European dairy industry structure, the EU milk quota system, was finally removed. Europe is currently the world’s largest milk producer with 2013 production totalling more than 140 billion litres. More than 93% of this milk is produced by just 14 countries. See Figure 1.

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Future EU Production From recent research carried out on the subject, it is possible that the top 14 milk producing countries in Europe will increase their production by anywhere between 6.8 and 23.2 billion litres per annum by 2020. Apart from Spain and Italy, all of these big producers could well increase milk production. See Figure 2.

With low level demand growth for many dairy products in Europe, it is inevitable that almost all additional milk produced will have to be exported to emerging markets in SE Asia, Africa and the Middle East. This means the growth of EU milk production will be heavily influenced by global dairy prices and driven mainly by external factors including weather, supply and demand shocks and input prices.

relatively small country, a mild climate with mainly pasture based, low cost dairy production. The current narrative is that milk quotas have constrained the Irish industry - if it was not for EU milk quotas, Irish production would be much higher than it is now.

Likewise, many Dutch and Danish farmers see themselves as global exporters that have been constrained

by European quotas and look forward to improving their farms and increasing milk production.

Figure 1 EU Cows' Milk Collected – 2013 (million litres)

Source: Eurostat

arguably all of the above requirements already in place. Countries such as Denmark and the Netherlands also have strong growth potential. The UK, Germany, France and Poland also have strong dairy growth potential in regions where many of the above factors are present.

The ‘winning combination’ will eventually be the country/region with an efficient farm production sector, able to proImpacts of Quota Removal duce high-quality, low-cost products with In the short term, there may be little minimum environmental impact, impact, but this largely depends coupled with an efficient, cuson which country you are in. Figure 2 Potential Milk Production Increase to 2020 (million litres) tomer-focused processing secAlthough milk quotas have been tor. Some European farmers a feature of the EU dairy landand processors already display scape, their impact on the industhese characteristics, but many try in the last 5–10 years has do not. Europe’s success in capactually been limited in many turing a large share of future countries. In 2013/14, as an global market growth is not example, just eight countries guaranteed in the face of strong exceed their quota limits. The international competition from remaining 20 Member States countries in the Southern produced below quota, with 14 Hemisphere and North Amerof these more than 10% below ica, and some of the emerging their delivery quota. markets themselves, who are Although they may not admit rapidly developing their own it, Irish farmers tend to see food production, processing themselves as the ‘New Zealand’ Source: Various/Promar Analysis and export sectors. J of the Northern Hemisphere – a Europe – Still a Good Place to Farm and Produce Food Although we also see the removal of EU quotas as causing change and pain for many producers, particularly those on small farms in remote areas, or areas less suited to dairy farming, overall, the changes will be positive and lead to a more productive and competitive European dairy industry. Ireland stands out as a clear growth opportunity with

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I DAIRY

Hardwearing Stainless For Dairies n food and drink factories, hygiene and Imanufacturing, cleaning is an important factor when processing, packaging and distributing quality product daily. With various processing areas in a factory it is imperative that the construction of the factory will not impede production or fail due to impact or wear.

Aspen Stainless were appointed as the manufacturer, supplier and installer for all the stainless steel wall kerbing and high level gantries in one of the largest dairies in the UK. Working closely with the Building Contractor, Aspen mapped out the processing rooms within the facility and installed thousands of meters of their hardwearing wall kerb. The wall kerb hosted the walling and accepted a brand new resin floor, which created the new processing rooms.

Once installed the seamlessly welded, stainless steel wall kerbing provided the optimum hygienic surface between the floors and

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walls, which in turn enabled an efficient cleaning regime preventing bacteria and debris from harboring in any cracks or crevices. Alongside the wall kerbing, Aspen also installed various high level gantries which hosted the dairy machinery on different levels to maximize space within the factory.

In addition to dairies, Aspen enjoys a close working relationship with their clients in the food and drink industry including; meat, fish, bakeries, snack foods, confectionary and more.

With strict demands for hygienic plant and equipment in all industries, Aspen has the ability to provide product engineering solutions to meet your specialist requirements using its range of stainless steel drainage, wall kerbing and protection.

Browse the product range online, which has full technical data available to download or to discuss your bespoke requirements with the Aspen technical team – Tel +44 (0)115 986 6321 or visit www.aspen.eu.com. J

FOOD & DRINK BUSINESS EUROPE, NOVEMBER 2015

I FLOORS, WALLS & CEILINGS

Durable Resin Flooring For Snack Foods fficiency and safety under foot in a snack food factory is high E priority when it comes to deciding a new floor. In addition, various types of daily traffic travels through the processing and packaging areas making it imperative for the flooring to be durable.

John Lord were commissioned to manufacture and install a suitable flooring for a snack food factory, which had different requirements from room to room. In the processing areas the factory required a high anti-slip flooring grade for maximum safety under foot during their cleaning regimes and if any spillages occurred. In the packaging areas the factory required a smoother but durable floor surface than the processing areas, which allowed trolleys, crates and pallet trucks to move easily over while transporting the snack food product.

The factory wanted to divide the processing and packaging areas, and create walkways around the factory to safely guide pedestrian traffic around the facility and importantly away from the machinery and operating areas. John Lord provided the factory with a range of bespoke colours to choose from to highlight these areas.

The factory opted for a buff-yellow, green and terracotta, which created definition and reflected their company brand colours.

John Lord has a range of exclusive resin flooring products to suit your environment. For the food and drink industry, the Uragard polyurethane resin range is the recommended flooring option.

Uragard provides excellent durability, cleanability, chemical and temperature resistance and has varying grades of slip resistance to suit your traffic requirements.

‘Specify Your Own Floor’ online to find the most suitable flooring system for your industry or contact John Lord’s technical flooring team to discuss your requirements and receive an expert recommendation – Tel +44 (0)115 986 6321 or visit www.johnlord.com. J FOOD & DRINK BUSINESS EUROPE, NOVEMBER 2015

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I COCOA & CHOCOLATE

Consolidation Continues in Industrial Chocolate and Cocoa Primarily driven by growing world demand for chocolate confectionery, particularly in developing countries, the global industrial chocolate market is expected to expand at a moderate rate and reach 7,251 thousand metric tons by the end of 2019. ndustrial chocolate is used in-house by vertically integrated manufacturers to produce Ifinished chocolate products or alternatively sold to third parties such as food manufacturers, chefs and artisans to make a range of goods such as chocolate confectionery, bakery products, ice cream and beverages.

Some 6,432 thousand metric tons of industrial chocolate were shipped in 2014 and the global market is expected to grow by 1.69% in 2015 and at a CAGR of 2.43% between 2014 and 2019, according to Technavio, the leading technology research and advisory company.

Due to the presence of a large number of chocolate manufacturers and processing companies in the region along with the highest per capita consumption of chocolate, Europe is currently the largest market for industrial chocolate in the world. Germany, Italy, France, Spain, and the UK are the biggest chocolate consumers in the European Union.

Indeed, Technavio expects Europe to continue being the market leader during the forecast period.

Leading Players The global industrial chocolate market is dominated by three bean-to-bar manufacturers – Cargill, Barry Callebaut and Blommer – which operate in the open market and supply chocolate to food processors or food service

operators. Other prominent players include CÉMOI, Clasen Quality Coatings, Fuji Oil, Guittard, IRCA, Mondelïz International, Nestlé, Petra Foods and Puratos. The market is continuing to consolidate. For example, Cargill recently completed the acquisition of ADM’s global chocolate business for an enterprise value of $440 million.

Barry Callebaut and Cargill are also the two largest players within the global cocoa processing industry.

The integrated sector is currently The cocoa processing industry is dominated by three the largest part of the global industrial main players – Barry Callebaut, Cargill and Olam chocolate market. This is due to the International. large number of chocolate confectionery manufacturers producing their own tional properties of industrial chocolate over industrial chocolate in-house. However, the years and are continuing to experiment Technavio expects the open market to grow with combinations to produce innovative exponentially as the outsourcing of industrial colours, flavours and textures. chocolate becomes more popular as cusAccording to Technavio, texture is becomtomers choose to focus their capital resources ing a prominent part of the taste perception on marketing and distribution activities. among consumers. Gluing fillings, aerated and creamy fillings integrated with crunchy Innovation inclusions are some illustrations of newer texIndustrial chocolate is produced primarily tures that have been developed. Other innofrom cocoa liquor/paste and butter combined vations that are expected to aid market with other ingredients such as sugar and pow- growth include extension of shelf life, dered milk which then undergo conching. enhancement of sensory appeal through varManufacturers have successfully developed ied flavours and textures, and the introducnew varieties, grades, formulations and func- tion by Barry Callebaut of heat-tolerant chocolate for regions such as Latin America and APAC. Technavio identifies the increasing consumer demand for dark chocolate because of its perceived health benefits as a key driver of market growth. Other key market trends include the growing importance of Fairtrade products and the increasing importance of transparency in ingredient labelling.

The global industrial chocolate market is dominated by three bean-to-bar manufacturers – Cargill, Barry Callebaut and Blommer.

Shift in Production Although industrial chocolate makers have in the past tended to locate their manufacturing operations in close proximity to the main retail markets of Europe and North America,

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they are increasingly shifting their production bases to cocoa producing regions of the world such as Asia, Africa and Latin America.

According to Technavio, this move provides easier access to emerging markets, which are expected to fuel future demand for industrial chocolate.

The rising global consumer demand for chocolate, including its growing popularity in developing regions, is putting pressure on the supply side and this is reflected in rising cocoa prices. The increase in prices has also affected the cost of cocoa butter that is derived from cocoa beans. However, the major players have been increasing their investments in sustainable cocoa production to meet the growing demand while helping to improve output and quality at farmer level..

Cocoa Processing The cocoa processing industry is also dominated by three main players – Barry Callebaut, Cargill and Olam International, following its $1.3 billion acquisition of the global cocoa business of Archer Daniels Midland Company (ADM) late last year.

Olam Cocoa now accounts for about 16% of global cocoa processing, behind Cargill and sector leader Barry Callebaut. These three

46

players control about 60% of the global market for cocoa liquor, powder and butter.

The cocoa processing sector has undergone major consolidation since the start of the 1990s when there were around 40 grinders of significance compared to less than ten today.

ADM and Cargill are credited with having revolutionised the industry by applying their expertise in grain trading to the sector during the 1990s and accounted for some 41% of the world’s cocoa processing capacity by 2006.

Barry Callebaut has also acted as a major consolidator in the industry after being formed in 1996 from the merger of Belgian industrial chocolate manufacturer Callebaury and Cacao Barry of France. Barry Callebaut became the industry leader in 2013 when it acquired the cocoa processing business of Petra Foods.

The consolidation of the world’s cocoa processing sector reflects that of the global confectionery market, where the top five manufacturers including Mondelez, Mars and Nestle account for more than 65% of sales.

Major Problems The cocoa production sector, which provides the raw material for both the industrial choco-

late and chocolate confectionery markets, is facing significant problems and challenges. In Côte d’Ivoire and Ghana, the two largest cocoa producing countries in the world which together account for close to 60% of global supply, cocoa farmers are encountering increased competition from other cash crops, declining soil fertility and lack of access to and knowledge of how to apply fertilizer, and a lack of access to and knowledge about good agricultural practices and environmental stewardship. Consequently, cocoa farming has been losing its appeal as a viable livelihood among younger generations of farmers.

To tackle this issue, the World Cocoa Foundation (WCF) has initiated CocoaAction, a programme that aims to boost productivity and strengthen community development. The WCF is an international membership foundation of more than 115 companies that promotes a sustainable cocoa economy by providing cocoa farmers with the tools they need to grow more and better cocoa, market it successfully, and make greater profits. WCF's membership includes cocoa and chocolate manufacturers, processors, supply chain managers, and other companies worldwide, representing more than 80% of the global cocoa market. J

FOOD & DRINK BUSINESS EUROPE, NOVEMBER 2015

Fi Europe & Ni 2015 to Provide Multiple Solutions in Proteins rotein has been one of the main ingrediP ents of interest in the food industry for many years. Global demand has greatly increased due to its efficiency and high nutritional value, and the overall protein market is forecast to reach $40 billion in the coming years, according to a recent study by Gran View Research. Food ingredients (Fi) Europe & Natural ingredients (Ni) 2015, one of the top ten events worldwide for the food and beverage industry, will provide a key platform for both sourcing solutions and learning about the latest insights and developments in protein.

Taking place in Paris Nord Villepinte, France, from 1-3 December, Fi Europe 2015 will welcome over 26,000 visitors from all over the world and more than 1,300 exhibitors including Brenntag, Cargill, ADM and Naturex. A number of exhibitors will be showcasing their innovations and solutions in protein, such as Rousselot, Prinova and Essentia Protein Solutions, and there will be several features on the show floor for visitors which will focus on the trending topic of proteins.

Pea, Animal and Dairy Proteins Fi Europe 2015 exhibitor Roquette claims to be the world leader in pea ingredients and has developed an entire range of pea proteins with different functional and physical properties. Some of them are particularly suitable for sports nutrition, weight management products and clinical nutrition. The range is marketed under the name NUTRALYS®, a highly purified pea protein consisting of 85% dry matter, which is obtained from the yellow dried pea, a sustainable source with a low level of anti-nutritional factors.

Industry experts expect the market growth of pea protein to rise to 9% by

2019. “The benefits of pea protein are many,” says Datamonitor Analyst, Renata De Marchi. “The ingredient is hypoallergenic and not genetically modified, giving brands a ‘cleaner’ label. It is also more sustainable than many other crops. In order for pea proteins to gain traction in the marketplace, companies need to increase production capacity and reduce costs, as pulses are in short supply.”

Animal proteins accounted for over 70% of protein ingredients revenue share in 2013 and are expected to grow the fastest in the coming years, according to Grand View Research. Dairy proteins are also on the rise, as highlighted by Natalie Meijers, Communication Manager at FrieslandCampina DMV, also exhibiting at the show. “We see an increasing demand for dairy proteins due to their natural and healthy image combined with a great taste.

Dairy proteins have a unique combination of high nutritional value combined with excellent functionality. We produce dairy proteins out of fresh milk which quality is controlled from grass to glass. This enables manufacturers of healthy and nutritious food to develop natural and good tasting high protein products.”

At Fi Europe 2015, FrieslandCampina DMV will launch a unique protein innovation with increased functionality, Excellion EM7 High Viscosity. This innovation will help analogue and processed cheese producers save costs and improve their product quality in a natural way.

Protein Solutions at Fi Europe & Ni 2015 Visitors to Fi Europe 2015 seeking solutions in protein can take a self-guided Discovery Tour around the show floor on Protein Innovation. Created

by Leatherhead Food Research, visitors can find the key exhibitors with ingredient solutions to boost the protein content of their products. Experts from Nutrimarketing will also conduct two guided Innovation Tours around the show on New Sources of Protein. They will discuss trends and developments in protein sources while

introducing exhibitors specialising in this area to attendees.

The co-located Fi Europe modular conference will welcome industry professionals to discuss today’s developments and challenges in the food and beverage industry, including in the protein market.

Experts from Rousselot, Wageningen University, Euromonitor International and more will provide the latest insights in protein trends, protein innovations and developments in healthy ageing and sports nutrition. Visitors can get specific knowledge on dairy proteins during the ‘New product development in protein rich dairy products‘ and ‘Lactose-Free‘ sessions, while the latest technologies for protein extraction will be discussed by specialists like Delamere Dairy, Novozymes and Arla.

Fi Europe & Ni has provided a successful, global platform for sourcing food and beverage ingredients for over 25 years. The three-day exhibition is one of the most influential and important events of the entire food and beverage industry and really is a must-attend for all professionals in the field. Visitors can pre-register for free (saving €130 onsite fees) at www.fieurope.eu/proteintrends. J

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Flavour and Functional Solutions From AllinAll Ingredients llinAll Ingredients have been supplying A solutions to some of the largest food producers in Europe and the Middle East for over twenty years. From their Dublin head office, AllinAll Ingredients provide assistance across numerous sectors in food production including meat, seafood and specialist bakery.

AllinAll believe that the company’s NPD and Research team are the engine of the business and that of their customers.

AllinAll have strived to ensure that they have the most qualified and relevant personnel available leading this department. The AllinAll team is available at all times to customers, new and existing, to work on new ideas both flavour and functional.

AllinAll like customers to think of the AllinAll NPD team as an extension of their own. AllinAll Ingredients provide a complete bespoke service to clients from conceptualisation of a new product, right through to assisting customers with presentations of a finished packaged product.

AllinAll are constantly researching new consumer trends to keep at the very forefront of the industry. This combined with key resources in the team help to keep

AllinAll ahead of the curve. Whether you require a new flavour profile or if you are having a technical issue with an existing one, the team at AllinAll is ready to help.

A recent project undertaken by AllinAll Ingredients was for TMI Foods in Northampton, one of the UK`s largest bacon producers and part of the Dawn Group of companies.

“AllinAll Ingredients offered TMI the opportunity to research the area of sodium

reduction in a thorough and scientific manner,” says Michael Cullen, Project Manager, TMI Foods. “After receiving our brief the team at AllinAll followed up with a conference call with their research and development manager. The aims and objectives of the project were quickly identified and the process at TMI was understood by AllinAll. “AllinAll carried out their own trials in their lab and successfully achieved the target in reducing the sodium level without compromising the quality of our product and the flavour profile, while also providing answers to the questions of maintaining the shelf life of the product once the sodium level was reduced.”

Michael Cullen continues: “The trial samples were presented to the team at TMI with a thorough explanation of the methodology used in the trialling and in the formulation of the final product. We were thoroughly satisfied with the results that were achieved and we are now commissioning full production trials at our plant on this line.”

Why not get in touch with a member of the AllinAll team to see they how can assist you in your business. Visit www.allinall.ie. J

Consumers Request Natural Sweeteners in Products wedish consumers are asking for S more natural sweeteners in food and beverage products according to a new survey by the research institute Novus, commissioned by The Real Stevia Company. The general knowledge about the natural sweetener stevia has increased in 2015 compared to studies from a year ago.

“Swedish consumers are generally considered to have a high awareness, therefore we requested to see how stevia was perceived on the market. Several international food and beverages producers choose Sweden as a test market for their products.

The Coca-Cola Company, being one of them, launched its steviasweetened product Coca-Cola Life here last year,” says Sophia Horn af Rantzien, Managing Director of The Real Stevia Company.

More than half (67 percent) state in the survey that they are aware of stevia, which is an increase of seven percentage points compared with 2014. The most knowledgeable consumers were 48

aged around 30-49 years, which is an affluent consumer group, where almost eight out of ten claim to know the sweetener.

In the same survey, it also appears that almost every Swede has at one time bought a product containing stevia.

One reason for the increased interest is that the most important consideration among consumers regarding sweeteners is that it should have a natural origin.

When answering the survey regarding what's important in the selection of sweetener, 44 percent of Swedish consumers chose "of natural origin" as the first priority, followed closely by "taste" with 38 percent and "no side effects" in third place (34 percent).

“Knowledge of sweeteners has risen in pace with consumers becoming more conscious about what we eat and drink, how it affects the body and how it is produced. Stevia fits well into what consumers request and that is one reason why knowledge and interest in stevia increases,” adds Sophia Horn af Rantzien. J

FOOD & DRINK BUSINESS EUROPE, NOVEMBER 2015

I BAKERY

Volume Sales Struggle to Rise in UK Biscuits and Cakes Market ccording to Biscuits & Cakes, a new A Market Report from market intelligence provider Key Note, total market volume sales remained fairly subdued in 2014.

Moreover, although the market continues to expand in value terms — exhibiting growth of 1.8% in 2014 — this growth is still primarily being driven by inflated retail prices, further underlining the challenging nature of current market conditions.

Biscuits and cakes are traditionally extremely popular in the UK, with both products continuing to enjoy extensive household penetration. Retail sales are being threatened, however, by the surging number of Britons baking from scratch at home. A desire to save money, concern over the use of additives in pre-prepared products, and the extreme popularity of The Great British Bake Off — the second most widely watched television programme of 2014 — all contributed to this trend, with the availability of self-bake cake mixes also enabling consumers to enjoy the satis-

faction of it doing it themselves, albeit more conveniently. Potential sales volume growth has inevitably been restricted by this recent development.

A more long-term trend, perhaps, concerns the increasingly health conscious nature of the consumer base. A growing number of Britons are becoming concerned by the obesity epidemic and are being encouraged to live healthier lifestyles, following government and media campaigns.

In 2014, these fears became more pronounced with regard to the biscuits and cakes market, as sugar replaced saturated fat as the number one health focus. Many consumers, and worried parents in particular, are cutting back on sugary foods, such as biscuits and cakes, in an attempt to lead healthier lifestyles. While this has partially driven sales of savoury biscuits, this was not substantial enough to improve overall volume sales across the market.

Over the coming five years, both threats are expected to remain present and it is therefore likely that rising retail prices, rather than increasing volume sales, will be the key factor behind growth. Yet, as the economic recovery develops, the demand for premium biscuits and cakes is also expected to grow, further improving value sales performance. Key Note’s new Market Report, Biscuits and Cakes, forecasts that the total UK biscuits and cakes market will exhibit value growth of 9.3% between 2015 and 2019. J

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I FRESH PREPARED FOODS

Kanes Foods Further Improves Efficiency and Productivity Having recently spent £30 million on a state-of-the-art salad factory, Kanes Foods, which is one of UK’s leading suppliers of fresh prepared foods, is continuing to invest in improving efficiency and productivity across its business. perating four producworkforces to drive safety and tion units on a 28 acre productivity. Over two million site in Worcestershire, food workers at 15,000 locations Kanes Foods produces use Alchemy’s tailored training, an extensive range of washed coaching, and communications and ready to eat salads, prepared programs to safeguard food, vegetables and stir fry vegetable reduce workplace injuries, and mixes as well as fresh salad dressimprove operations. ings and stir fry sauces. The The partnership with Alchemy company supplies many of the is helping Kanes Foods to simplileading supermarket groups with fy the delivery and documentaover 3.2 million packs of fresh Kanes Foods is one of the UK’s leading suppliers of fresh prepared foods. tion of critical food safety and produce each week and has a health and safety training, which turnover in excess of £100 million. capacity to produce 1.8 million bags a includes FDQ's accredited Level 2 Food Kanes Foods is believed to be the only week, with the potential to expand output Safety for manufacturing qualifications.

UK manufacturer of authentic fresh noo- further in the future.

“People are at the centre of the business dles, which contain no preservatives or artiThe new salad factory is one of the most at Kanes and a key motivation of staff is to ficial ingredients. The company’s dedicated environmentally friendly buildings in the give them the knowledge and awareness to noodle factory prepares, cooks and packs country. A major feature of the new buildover 100 tonnes of fresh egg noodles a ing is a domed roof which is planted with week. Kanes Foods also grows its own bean nearly 90 species of wild flowers in order to sprouts which are used for the company’s blend in with the surrounding, beautiful stir fry products.

Cotswold landscape.

Other eco-friendly aspects such as geotIndustry Leading Position hermal heat pumps, rainwater harvesting, Kanes Foods’ £30 million salad factory, solar panels and the largest hemp clad syswhich opened in July 2012, uses the latest tem in the UK add further to the factory’s optical sorting, washing and air drying sys- green credentials. The factory also incorpotems to ensure that Kanes Foods maintains rates a sustainable storm system to control its industry leading position. Indeed, the air excess rainwater with the ponds created drying of the salad leaves to remove all used to provide a suitable environment for excess moisture and gentler handling has nesting mallards, grass snakes, newts, frogs, improved the quality of the final bagged toads, bullrushes and reeds. Indeed, Kanes salad and extended shelf life. It has the Foods is committed to making the business as sustainable and environmentally friendly as possible. do their job, which in turn, improves morale and performance,” explains Laurie Continued Improvement Beard, Learning & Development Manager To support its rapid growth, Kanes Foods at Kanes Foods. “The challenge of training recently updated its landscape of disparate 1500 people across four factories is ensursystems with one, fully integrated ERP ing that all staff are trained consistently to a solution (see Page 52 in this issue). The high level. The Alchemy SISTEM enables new system supports the business through us to do that without having to add extra the entire supply chain – from procure- resources in to the administration of trainment, raw material handling, production ing.” and final shipment to customers.

Laurie Beard adds: “Kanes Foods’ aim is In order to help further enhance efficien- to be a leader in food manufacturing traincy and productivity, Kanes Foods has ing and working alongside Alchemy and teamed-up with Alchemy, a global leader in Campden BRI as well as incorporating the development of innovative solutions training from local education centres, we that help food companies engage with their are moving in the right direction.” I

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Kanes Foods Takes Fresh Look at ERP With IFS Applications 9 anes Foods, one of the UK’s leading suppliK ers of fresh prepared foods, has chosen IFS Applications 9 to replace its legacy systems.

Kanes Foods produces a range of washed and ready to eat salads, prepared vegetables and stir fry vegetable mixes as well as fresh salad dressings and stir fry sauces.

Founded in 1990, Kanes Foods now has an annual turnover in excess of £100 million and supplies over 3.2 million packs of fresh produce to the UK’s leading supermarkets every week. In order to support its rapid growth, Kanes Foods needs to update its current landscape of disparate systems with one, fully integrated ERP solution.

“With IFS Applications 9 we will have a system that supports the business through the entire supply chain – from procurement, raw material handling, production and final shipment to our customers,” comments Mark Harris, Production Director at Kanes Foods. “In addition, IFS Applications 9 will allow us to replace a number of stand-alone systems, such as quality management, plant maintenance, payroll, HR and time & attendance giving complete visibility across the business.”

Kanes Foods operate in a fresh produce environment, with much of the product arriving, being processed and dispatched within the same day, as a result speed and accuracy of data capture is imperative. That is why the deployment of a number of IFS mobile solutions will be critical to the implementation project. Kanes Foods will use IFS Warehouse Data Collection for the reporting of all movement of goods throughout the process. In addition, IFS’s mobile solution will be utilised by over 100 maintenance and quality technicians – to allow real time reporting on the shop floor.

Paul Massey, Managing Director of IFS Europe West, says: “We are excited to welcome Kanes Foods into our growing list of food customers. It is encouraging to hear that the breadth of the IFS

solution, along with our ability to deploy functionality to a mobile workforce, were key factors in the company’s decision to work with IFS. We look forward to a long and successful partnership.” J

TENDER CLOSING: 12 Noon, Wednesday 16 December 2015 Viewing: Tuesday 8 December 2015 Or By Prior Appointment

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FOOD & DRINK BUSINESS EUROPE, NOVEMBER 2015

New Measures Are a Sobering Thought For Businesses in Alcoholic Drinks Industry ew laws are coming into force to tighten the business-to-business sale of alcoN holic beverages as HMRC cracks down on fraud to ensure the Exchequer gets its full share of excise duty, estimated at over £10 billion annually.

In addition to HMRC’s Alcohol Wholesaler Registration Scheme (AWRS), which comes into full effect from April 2017, vendors must also contend with the new Union Customs Code (UCC) being rolled out next year by the EU to standardise the movement of trade across member states.

To meet these requirements businesses must review their obligations, even with companies who would not consider themselves to be wholesale, while those importing or exporting alcohol will also need to comply with the EU’s Authorised Economic Operator (AEO) scheme from 1st May 2016 or face delays in the release of goods as well as severe sanctions.

With potentially even further legislation to tighten controls on the sale of alcohol in the pipeline, Langdon Systems Ltd says it is paramount that businesses have the IT

solution that enables them to be fully compliant with the regulations that apply if they are not to be exposed to operational restraints, potential fraud, financial penalties or even legal action.

Langdon Systems has over 30 years’ experience in customs and excise technology and expertise. Their approach is designed and proven to reduce the burden on businesses through the provision of comprehensive software packages that integrate with

and complement existing systems and operations. The solution is enhanced by a dedicated systems, technical and legislative support.

Langdon Systems’ Customs Manager, Dave Bradbury, says: “We’re working with high profile retailers and distributors of alcohol products to ensure that they are compliant with the new measures. We supply comprehensive and robust software solutions which interface with any warehouse IT system, giving assurance to the user that they have full Customs compliance.

He adds: “However, even if you have Excise Duty sorted out, the new UCC from May 1st 2016 could upset the applecart for companies dealing with imported goods from outside the EU. Langdon Systems’ software can do all the legwork, such as the returns and reporting to other member states for checking recipients and guarantees for the movement of goods.”

To find out further details of software solutions and the AEO training programmes or seminars please contact Langdon Systems on Tel 01942 202202 or visit http://aeo.langdonsystems.com/. J

Iglo Savours Salmon Software Treasury Management System glo Group, Europe’s largest frozen food ITreasury business, has implemented a cloud based Management System (TMS) from Salmon Software. Iglo Foods, which had revenues of Eur1.4 billion in 2014, produces, markets and distributes branded frozen food in 11 European countries. Its core brands include Birds Eye, Findus (Italy) and Iglo.

“We needed to upgrade to an automated treasury management system from Excel spreadsheets which were proving to be too cumbersome, time consuming and unreliable,” comments Gareth Roberts, IT Business Solutions Manager at Iglo Group.

“We were also in the process of being acquired so needed a faster, more accurate and auditable perspective on our treasury positions.”

The Software-as-a-Service (SaaS) application, which Iglo has implemented, is part of the Salmon Treasurer TMS suite which is also available as an on-premise offering.

John Byrne, CEO, Salmon Software.

Salmon Treasurer helps corporate treasurers to manage foreign exchange, debt, money market, treasury, banking transactions, forecasting, derivatives and many other related treasury activities.

“We operate in 11 countries across multi-currencies so in particular we needed greater transparency of our FOREX as well as our debt positions,” adds Monika Molnar, Treasury Manager, Iglo. The new software is integrated to its banking systems and includes Salmon’s EMIR (European Market Infrastructure Regulation) reporting module.

John Byrne, CEO, Salmon Software, which is headquartered in Dublin, Ireland, adds: “As one of the few remaining independent TMS specialists, we offer companies like Iglo the most comprehensive and flexible TMS currently available and at an affordable price.”

Independent Salmon Software, which has specialised in treasury management solutions for three decades, works with other blue chip corporates across many industries including in the food sector, Glanbia and ABP Food Group. For further information visit www.salmonsoftware.com. J

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ULMA Packaging Answers Royal SOS Call From Potato Grower hen its previous supplier let it down, renowned potato grower W The Jersey Royal Company turned to ULMA Packaging Ltd to speedily deliver the equipment it urgently needed to help launch the Channel Island company’s new product of jacket potatoes into a major high street store.

Jersey Royal, the only potato that carries the EU Protected Designation of Origin mark of authenticity, and the Jersey Royal Company grows 25,000 tonnes of potatoes annually for the UK retail market. Last year it launched Jersey Jackets into the Co-op and following this success needed premier packaging after agreeing a deal with Waitrose, but its original equipment supplier was unable to meet the deadline during the peak of the season’s crop.

Despite the short timescale, within 24 hours of being contacted

by Jersey Royal a Florida Flowrapper was shipped from stock at ULMA’s facility in Worksop to Portsmouth Docks for loading to the island. The machine was operational and packing jacket potatoes at Jersey Royal’s integrated agricultural site in Trinity the following day.

The quick turnaround and delivery of the equipment by ULMA was a godsend for Jersey Royal, according to the grower’s Technical Director Michael Renouard, as there would have been serious implications for its target dates without the Florida Flowrapper.

He says: “We knew we were in a bit of trouble but fortunately knew of ULMA so got in touch with them to see if they could help us out. They pulled out all the stops and the service we received in our hour of need was fantastic. They had the machine in stock and within 48 hours it had been delivered, was operational and packing potatoes.”

He adds: “I can’t fault ULMA at all. From initially supplying us

with the machine at such short notice to the logistics of getting it down to Portsmouth Docks for our courier to ship it across here, coupled with the service our engineer received to get the equipment up and running, was just excellent. They covered all the bases required. I would recommend them to anybody.”

In addition to single equipment pieces, ULMA can also stream together stand-alone packaging machinery with the automation side of the business to provide customers with one single point of technical and sales contact. This means that its customers can now be offered one of the largest packaging solution choices available anywhere in the UK. For further information visit www.ulmapackaging.co.uk. J

ULMA Packaging’s Partnership With Sealed Air Transforms Fresh Food Packaging eading packaging machinL ery and automated lines supplier, ULMA Packaging Ltd, has teamed up with Sealed Air to roll out across the UK its revolutionary Cryovac® Darfresh® vacuum pack that reduces waste and offers excellent benefits for fresh food.

ULMA’s TFS Thermoforming equipment, combined with the Cryovac® Darfresh® skin film, uses roll stock material to create a cost-effective, vacuum skin consumer pack that fits around the product like a second skin to produce a securely and hygienically sealed pack, providing retailers with secure and exceptionally attractive product presentation.

The major advantages of skin packaging for retailers are extended shelf life and enhanced pack appearance, while other benefits include moisture retention, the ability to customise pack shape and dimensions as well as vertical merchandising.

Especially suitable for regular or irregular cuts of fresh meat, Cryovac® Darfresh® skin film is also ideal for processed meats, pork, lamb, poultry, fish and cheese. There

is also Darfresh Bloom™ to help red meat sealed under vacuum retain its colour and a microwavable version for ready meals, while double decker packages are available for providing a flat top surface to apply a label.

Sealed Air Packaging Systems Director Europe, Hughes Wygaerts, sauys: "The ULMA partnership has been very successful. I would really underline the flexibility and willingness of ULMA to strive towards the perfection to deliver top class equipment. Together with the top in class Cryovac® Darfresh® materials we are able to deliver a complete system that will satisfy our customers." J

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page 59

I POTATO PRODUCTS

Lamb Weston/Meijer Seeing Possibilities in Potatoes Currently in the process of investing €120 million in its Bergen op Zoom plant and having just opened a new €20 million automated potato receiving area at its Kruiningen plant, Lamb Weston’s European business is now operating under a new global brand identity expressed by the tagline ‘Seeing Possibilities in Potatoes’. old globally in over 100 countries, Lamb Weston is a world leading brand in high quality potato products. The Lamb Weston brand is sold in Europe, the Middle East and Africa (EMEA region) by Lamb Weston/Meijer, a 50/50 joint venture between Lamb Weston ConAgra Foods of the US and Meijer Frozen Foods of the Netherlands.

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€140 Million Investment Lamb Weston/Meijer is a well invested and technologically advanced business. The potato products specialist is currently part way through a Eur120 million expansion programme at its Bergen op Zoom plant. The investment entails the installation of a new state-of-the-art production line for premium frozen products that is expected to be fully operational in mid-2016. The expansion is expected to create approximately 50 new jobs. The new line will enable the company to meet the growing international demand for high quality potato products and concepts, while improving customer service and driving innovation.

Indeed, the new line is an example of Lamb Weston/Meijer’s continuous investment in meeting growing market and customer demands and optimising its operations. For example, the company recently opened a new Eur20 million automated potato reception area, consisting of three lines, at its Kruiningen plant. In addition to the fully automated checking, washing and sorting of potatoes,

Bas Alblas, chief executive of Lamb Weston/Meijer.

Headquartered at Kruiningen in the Netherlands and employing 1,200 people in the EMEA region, Lamb Weston/Meijer supplies frozen potato products like Twisters, Potato Dippers and Connoisseur Fries as well as dehydrated potato flakes to customers in the food service, quick service, industrial and retail sectors.

Lamb Weston/Meijer operates five factories - three in the Netherlands at Kruiningen, Bergen op Zoom and Oosterbierum; one in the United Kingdom at Wisbech; and a fifth plant at Hollabrunn in Austria.

Since its establishment in 1994, Lamb Weston/Meijer has expanded both organically and by acquisition. For example, it acquired Dutch potato processing companies Vriezo and Danisco Foods (formerly Fri dOr) in 2000 and 2001 respectively before purchasing the Garden Isle factory in Wisbech in the UK in 2006.

In October 2010, it acquired 74% of Frisch & Frost, located in Hollabrunn in Austria.

Lamb Weston recently launched Potato Dippers after research showed that shared dining is increasingly being appreciated by consumers who want to enjoy a restaurant experience in a social setting.

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the new facility optimises logistical tion that exists in the organisation. efficiency, reducing waiting times “Seeing possibilities in potatoes, and unnecessary logistic movecaptures what we do every day at ments at the site.

Lamb Weston,” says Bas Alblas.

"This new potato receiving area This is the first major change to helps us respond even better to the brand in its more than 50 year market requirements, and increases history. Growing globally, the our production flexibility,” explains brand has maintained separate Rinco Boender, operations managidentities in different parts of the er at the Kruiningen plant. “The world. “This is a significant step in receiving and sorting area is based the journey of Lamb Weston to on the first-time-right principle. leverage our global presence and The potatoes are immediately sortdrive profitable growth.” says ed correctly by the machines, Mascha Leijten, marketing and resulting in optimal quality potanew business development director toes. This benefits our end prod- Lamb Weston/Meijer recently opened a new Eur20 million automated of Lamb Weston/Meijer. uct."

“Launching a global brand identity potato reception area, consisting of three lines, at its Kruiningen plant.

Bas Alblas, chief executive of allows us to further strengthen Lamb Weston/Meijer, adds: "Together with our employees and worldwide brand recognition and helps boost the equity of our chain partners (growers, suppliers and customers), Lamb Weston brand worldwide.” fulfils its promise of 'Seeing possibilities in potatoes', with the implementation and commissioning of this complex project."

New Initiatives Lamb Weston/Meijer has demonstrated ‘Seeing Possibilities in ‘Seeing Possibilities in Potatoes’ Potatoes’ with several new initiatives. It recently launched Potato Constant new product innovation and successful extension to exist- Dippers after research showed that shared dining is increasingly ing lines are central to the continued growth of Lamb being appreciated by consumers who want to enjoy a restaurant Weston/Meijer. From Wedges, Twisters and CrissCuts to coated experience in a social setting. Similarly, consumers are looking for and spiced fries, to sweet potato fries and potato-based appetizers, home style fries, and with patrons of casual dining restaurants conLamb Weston has been at the forefront of the development of tinually seeking out new and differentiating menu items, Lamb value-added potato products in Europe and further afield.

Weston/Meijer responded by introducing Connoisseur Fries.

In June, Lamb Weston launched a new global brand identity Lamb Weston/Meijer has also been enhancing its customer serwith the tagline – ‘Seeing Possibilities in Potatoes’. The move is vice. In close collaboration with customers and their logistic partdesigned to align Lamb Weston operations worldwide under a ners, Lamb Weston/Meijer has devised solutions to offer just-incommon brand vision, describing the way Lamb Weston brings time deliveries that reduce stock levels at the customer and as a value to its customers’ business. result free up customers’ working capital.

The new tagline is intended to capture the essence of Lamb “I’m proud that we have people in our organization that show Weston’s approach – always moving forward with inventive solu- the initiative to bring great ideas forward and have the self-motivations for improving its customers’ business, and understanding that tion to make it reality,” remarks Bas Alblas. “At Lamb inventive thinking is driven by empowering the collective imagina- Weston/Meijer, we don’t just see a potato, we see possibilities.” J

Roast Potatoes For Christmas Days.. hristmas is just a few weeks away. All the star chef’s, supermarC kets and families already share ideas about the Christmas menu.

Jamie Oliver has launched his recipe on the perfect roast potato as a fantastic side dish. Because let’s be honest, every Christmas dinner table needs some delicious potatoes. For the southern hemisphere, we do not want to miss those fantastic spuds on the barbeque…

For Finis it is a challenge to find that one need in the vegetable processing industry. The further we all go to develop new products the more difficult it gets, especially when you need to keep in mind that efficiency has to be supreme.

As the demand for quartered potatoes increases, Finis received a request from a major international

processor to develop a new system to quarter potatoes in four perfectly equal pieces. The three key considerations - capacity, efficiency and quality - needed to fit the demands of today’s processors.

Together they have not only succeeded in this demand, they also simplified the complete concept of processing quartered or halved potatoes.

“We like to innovate, especially when we can do this together with the processor. We like to believe that we have a lot of experience but we know that our clients have way more experience when you talk about processing,” says Patrick ten Haaf, project manager at Finis Foodprocessing Equipment BV. For further information visit www.finis.nl. J

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I DAIRY

IDF to Host Parallel Symposia in Ireland The International Dairy Federation (IDF) through its Irish National Committee is hosting two major symposia which will run for the first time as a double-billed event in Dublin, Ireland during 11th-13th April 2016. he Concentrated and facture is the powerhouse for Dried Milks Symposium whey generation – a supply line is a sequel to the 5th that is crucial to meet the everInternational Symposium growing demand for dried whey on Spray Dried Dairy Products protein ingredients and nutritionlast held in St-Malo, France in al formulations. The topic of June 2012 which at the time infant milk formula is important emphasised how adaptation of internationally and also specificaltechnologies helped reduce drying ly to Ireland where considerable energy costs of spray drying and volumes of IMF product and enhance the functional properties related ingredients are manufacof dairy powders. Equally the tured. Dr Erik Konings, Nestlé, Cheese Science & Technology has agreed to speak on the subject Symposium follows on from its of ISO/IDF cooperation with forerunner event last held also in regards to the drafting of stan2012 in Madison, Wisconsin dards for submission to Codex.

(USA).

The IDF Parallel Symposia Latest Insights 2016, as it is known, has the It is also planned to get the latest exclusive Gold Sponsorship back- Phil Kelly of Teagasc with Dr Karen Twomey, Tyndall National Institute, UCC. insights from the international ing of Ornua (“the home of Irish The two are collaborating on the development of a biosensor to monitor official methods organisation dairy”) - owner of the iconic select microbial targets during milk drying processes.

AOAC and its Stakeholder Panel ‘Kerrygold’® brand with internaon Infant Formula and Adult tionally renowned process engineering be the focus on how the multi-disciplinary Nutritionals (SPIFAN) on developments company, GEA Group, as Silver Sponsor. nature of dairy science and technology can that will interest both IMF companies and Dutch-based specialist solution provider to act as an engine of development that will be their ingredient suppliers. Several speakers the milk drying sector, HB Group, is a able to respond with innovative and sus- are lined up to talk on the technological bronze sponsor. Ireland provides an inter- tainable dairy product and ingredient solu- and processing aspects of IMF – Dr Mark esting setting for the 2016 symposia with tions to meet growing needs in different Fenelon, Head of Teagasc Food Research, its predominant grass-based milk produc- markets. Such innovation extends beyond will explore the topic of next generation tion system and supply chain partnering merely nutritional profiling, but to also infant formula in terms of ingredient innowith major multi-national infant milk for- include how ingredients may be adapted to vation and sustainable process developmula manufacturers based here. impart biological functionality in food for- ment. mulations into which they are incorporatWith one registration fee payment, parTimely Event ed. ticipants will have the option of moving The 2016 parallel symposia are timely The Opening Ceremony to a plenary freely between the parallel-run symposia. given the industry stimulus that followed gathering on Day 1 will feature a keynote This 3-day double-billed symposia is an the lifting of the EU milk quota production presentation by Kevin Lane, Chief ideal opportunity for all engaged in dairy restrictions during 2015 – substantial Executive, Ornua, on the role of innova- processing to refresh on latest underpinning investment has taken place and continues tion in dairy to meet long term global mar- scientific and technological developments. to be made in milk processing capacity ket and nutritional needs. This plenary sesThe IDF Parallel Symposia 2016 organiscommensurate with a well-judged antici- sion will also feature keynote addresses by ing committee is guided by the chairmanpated expansion in milk production at farm leading academics to mark the celebration ship of Dr Noel Cawley, retired CEO, Irish level. A long term market perspective takes by international publishing house, Elsevier, Dairy Board and current Chairman, into consideration the growing demand for of the 25th publication anniversary of its Teagasc – Agriculture & Food foods including dairy arising from project- peer-reviewed ‘International Dairy Journal’.

Development Authority. Early Bird regised global population expansion. An imporThe alignment of the two symposium tration is now open on-line at www.idfintant dimension to these IDF symposia will topics is also important since cheese manu- gredientsandcheese2016.com. J

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FOOD & DRINK BUSINESS EUROPE, NOVEMBER 2015

Please visit us on stand 6B19 on 1st – 3rd December 2015