Food & drink june:july 2016

June/July 2016

2016

Food & Drink Business Website:

www.fdbusiness.com

C o n t e n t s

- 3 M ERGERS & A CQUISITIONS

- 53 M EAT & P OULTRY

Coverage of British and international deals.

Innovation drives Linden Foods.

- 7 C OVER S TORY

PAGE 7

The Top 100 food and drink manufacturers in the UK and Ireland.

Paul Polman, CEO, Unilever.

- 56 B RAND F OOTPRINT

P AGE 18

Kantar Worldpanel reveals the UK’s most chosen brands.

Giles Turrell, CEo, Weetabix.

R EGULARS Materials & Ingredients . . . . . . . . . . . . . . . . . 2 Energy & Environment . . . . . . . . . . . . . . . 22 PAGE 25 Quality & Hygiene . . . . . . . . . . . . . . . . . . 23

- 21 I NGREDIENTS & C ONSUMER F OODS

Processing & Manufacturing . . 28, 29, 43 & 44

Kerry Group – A global leader in taste and nutrition.

Bottling & Packaging . . . . . . . . . . . . 33 & 50 PAGE 10

Siobhán Talbot, MD, Glanbia.

- 25 F RESH P REPARED F OOD

Agust Gudmundsson, CEO, Bakkavor.

Information Technology . . . . . . . . . . . . 35-41 Future Food Factory. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37-41

Control & Automation. . . . . . . . . . . . . . . . 41 PAGE 47

Bakkavor celebrates 30th anniversary with revenue growth and margin Iimprovement.

Storage & Logistics . . . . . . . . . . . . . . . . . 45 Materials Handling . . . . . . . . . . . . . . . . . . 51

- 31 I RISH D AIRY

John Brock, CEO, Coca-Cola European Partners.

Managing Director: Colin Murphy Editor: Mike Rohan

Challenging times for Arrabawn Co-operative.

Group Operations Manager: Sylvia McCarthy Advertising: Ian Stewart & Rachel Howard Production Manager: Sylvia McCarthy

PAGE 13

Simon Litherland, CEO, Britvic.

- 35 C ONFERENCE & E XHIBITION

Food & Drink Business Europe is published by Premier Publishing Limited, 51 Parkwest Enterprise Centre, Nangor Road, Dublin 12.

Tel: + 353 1 612 0880 Fax: + 353 1 612 0881 E-Mail: info@prempub.com Website: www.fdbusiness.com Premier Publishing Limited can accept no responsibility for the accuracy of contributors’ articles or statements appearing in this magazine. Any views or opinions expressed are not necessarily those of Premier Publishing and its Directors. No responsibility for loss or distress occasioned to any person acting or refraining from acting as a result of the material in this publication can be accepted by the authors, contributors, editor and publisher. A reader should access separate advice when acting on specific editorial in this publication!

Creating an efficient and sustainable food & beverage manufacturing industry through data.

Design, Origination and Separations by Fullpoint Design (057) 8680873. (086) 1573510

- 47 S OFT D RINKS Coca-Cola European Partners is launched.

PAGE 17

Printed by W&G Baird.

Mark Allen, CEO, Dairy Crest.

Annual Subscription (UK and Ireland) £95 Overseas Subscription £115

FOOD & DRINK BUSINESS EUROPE, JUNE/JULY 2016

1

DuPont Nutrition & Health Launches New Prenatal and Postnatal Probiotic uPont Nutrition & Health is launching a new, clinically tested D probiotic, HOWARU® Protect EarlyLife, as part of its premium ingredient range. EarlyLife contains the probiotic strain Lactobacillus rhamnosus HN001TM and has been formulated specifically for expectant mothers and their infants.

The launch of HOWARU® Protect EarlyLife is backed by a ground-breaking, long-term trial which demonstrated a significant protective effect against eczema during the first six years of an infant’s life. The study also demonstrated a protective effect on allergic sensitization at six years of age.

“We are extremely encouraged by the strong results given from this ongoing long-term trial for HOWARU® Earlylife. The study shows a decrease in the cumulative prevalence of eczema by 49% in children at 2 years of age,” says Markus Lehtinen, R&D manager.

“And importantly the effect on this group persisted up to 6 years of age, indicating a long term benefit for children.”

DuPont has a history of delivering innovative solutions by applying its in-depth knowledge of probiotic science and the health ingredients market, and HOWARU® Protect EarlyLife is no exception. This new probiotic formulation has demonstrated exceptionally encouraging trial results and is introducing it to the market this year. Earlylife will be available as a shelf-ready dietary supplement in a convenient stick-pack format or alternatively, customers can use DuPont applications expertise when they include this unique ingredient in their own products.

“As the prevalence of eczema and allergies has risen worldwide, there is a growth in demand for safe dietary supplements which support the developing immune system of infants, hence the importance of HOWARU® EarlyLife,” says Ole Danielsen, global marketing director, dietary supplements. “In addition, the robust shelf-life of our probiotics means that EarlyLife can be added to existing products, opening up many exciting opportunities for our customers to create their own winning food and beverage formulations.”

For further information visit www.dupont.com. J

Dairies Can End Milk By-products With Nutrilac® HiYield rla Foods Ingredients has developed a A milk protein-based solution that enables dairies to utilise 100% of their

milk in the manufacturing process – with zero by-products or waste.

Nutrilac® HiYield can be used to create a range of high quality dairy products that traditionally generate acid whey and permeate during production, including Greek yoghurt, cream cheese, Feta, Mascarpone, Ricotta, quark and skyr.

Yields for these products are usually 2550% of the milk used. In the case of Greek yoghurt, for example, in traditional processes only 33% of the milk ends up in the finished product: the remaining two thirds is acid whey. However, when using HiYield, 100% of the milk is used in the finished product, with no acid whey generated.

Arla Foods Ingredients is promoting HiYield as part of its Maximum Yield campaign – a new drive to raise awareness of 2

how milk protein ingredients can enable dairy companies to maximise output, increase profits and significantly cut waste.

It is highlighting that adding milk proteins to the production process can significantly increase a dairy’s efficiency and boost its sustainability credentials at the same time.

HiYield is a very flexible solution that requires little or no adjustment to existing

production lines for common dairy products such as stirred yoghurt and cream cheese, because it eliminates the need for separation and filtration equipment. This means it is especially suitable for dairy companies seeking to enter new and emerging growth categories without investing in new machinery. When Arla Foods Ingredients supplies HiYield ingredients it also provides full technical expertise to ensure dairies are able to use them with the minimum of hassle.

Torben Jensen, category & application manager for Fresh Dairy Products at Arla Foods Ingredients, says: “HiYield enables dairies to reduce their milk intake with no loss of milk solids, or to increase the output achieved from existing supplies. It’s a simple and lean solution that optimises a dairy’s production efficiency and helps to reduce its impact on the environment by maximising the use of milk and minimising waste.” J

FOOD & DRINK BUSINESS EUROPE, JUNE/JULY 2016

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

& &

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

Nestlé and R&R to Create Froneri Ice Cream

Brown-Forman Re-enters Single Malt Scotch Whisky Sector

Nestlé and R&R, a leading ice cream company based in the UK, have agreed to set up Froneri, a joint venture with sales of around SFr2.7 billion (Eur2.45 billion) in over 20 countries employing about 15,000 people. Froneri will be headquartered in the UK and will operate primarily in Europe, the Middle East (excluding Israel), Argentina, Australia, Brazil, the Philippines and South Africa.

The new company will combine Nestlé and R&R's ice cream activities in the relevant countries and will include Nestlé's European frozen food business (excluding pizza and retail frozen food in Italy), as well as its chilled dairy business in the Philippines. The transaction is subject to employee consultations and the approval of regulatory authorities. Financial details are not being disclosed.

Paul Bulcke, chief executive of Nestlé comments: “Froneri will capitalise on complementary strengths and innovation expertise, combining Nestlé’s strong and successful brands and experience in 'out-of-home' distribution with R&R's competitive manufacturing model and significant presence in retail.”

Ibrahim Najafi, chief executive of R&R Ice Cream, says: “R&R has gone from strength to strength in the last few years and the blend of people from the two organisations will create a leading team, ideally suited to drive future growth.

Brown-Forman Corporation has completed its acquisition of The BenRiach Distillery Company for £281 million.

The purchase, which brings three outstanding single malt Scotch whisky brands – The GlenDronach, BenRiach, and Glenglassaugh – into BrownForman’s growing whiskey portfolio, includes brand trademarks, three malt distilleries, a bottling plant, and the company’s headquarters in Edinburgh, Scotland.

“With this acquisition, Brown-Forman re-enters one of the spirits industry’s most exciting and consistent growth segments, single malt Scotch whisky,” says Paul Varga, chief executive of Brown-Forman.

“The GlenDronach, BenRiach, and Glenglassaugh single malt brands are among the finest single malts in the world and we look forward to continue building them around the globe.”

Ibrahim Najafi, chief executive of R&R Ice Cream.

Jerry Fowden, chief executive of Cott.

Eden Springs to be Acquired by Cott Corporation For €470 Million Eden Springs, one of Europe’s leading suppliers of water and coffee solutions to offices in 18 European markets, is being sold by its current owners, investment entities affiliated with Rhône Capital, and Eden management, to Cott Corporation for Eur470 million (US$525 million).

Cott is one of the world’s largest producers of beverages on behalf of retailers, brand owners and distributors. In addition, Cott is a leader in the North American home and office water delivery, coffee services and filtration services industries. The company produces multiple types of beverages and currently employs more than 9,500 people. Cott has manufacturing activities across the USA, Canada, Mexico and the UK and develops and exports beverage concentrates to over 50 countries.

The acquisition is expected to close in third quarter 2016 and is subject to certain customary closing conditions including regulatory approvals.

The acquisition will accelerate the enlarged Cott group’s strategy of diversification outside of carbonated soft drinks and shelf stable juices into the home and office delivery (HOD) of water, office coffee services (OCS), and filtration.

It will also extends Cott’s geographic presence into Eden’s 18 markets across the continent.

initially notified, could have led to higher beer prices in Member States where SABMiller is currently active, because it would have removed an important competitor and made tacit coordination between the leading international brewers more likely. By offering to divest practically all of SABMiller's beer business in Europe, AB InBev has addressed these concerns.

Bridgepoint Acquires Turkish Snacks Business Peyman, the Turkish packaged dried fruit, nuts and seeds producer, has been acquired by private equity firm Bridgepoint for an undisclosed sum. Established in 1995 and headquartered in Istanbul, Peyman is a leading FMCG player in the Turkish snacks market focusing on the highest growth sub-segment dried fruits, nuts and seeds (DFNS) - an essential part of Turkish diet and culture.

Turkey is amongst the largest producers and consumers of DFNS globally, with the segment estimated to be worth over Eur2 billion a year in Turkey alone.

Turkey offers one of the most attractive FMCG markets globally due to the size of its economy, its growing population, positive drivers such as increasing disposable incomes and a growing middle class, and the growth of healthy snacking.

EU Conditional Approval For AB InBev's Acquisition of SABMiller

Pernod Ricard Sells Paddy Irish Whiskey Brand

The European Commission has cleared the proposed £71 billion acquisition of SABMiller, the world's second largest brewer,

by AB InBev, the world's largest brewer. However, the clearance is conditional on AB InBev selling practically the entire SABMiller beer business in Europe.

The Commission had concerns that the transaction, as

Irish Distillers Pernod Ricard has completed the sale of Paddy Irish Whiskey, the fourth largest Irish whiskey brand in the world, to Sazerac, a US-based family owned business. The value of the transaction is not being disclosed. The deal involves Irish Distillers Pernod Ricard continuing to produce Paddy Irish Whiskey at its Midleton Distillery in County

FOOD & DRINK BUSINESS EUROPE, JUNE/JULY 2016

3

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

& &

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

in order to focus on our core business. Rynkeby is the last remaining subsidiary in the Arla Group not linked to milk and we believe that the Rynkeby business will be better suited under the ownership of EckesGranini who can take the company to the next level in its future development.”

“The acquisition of Rynkeby Foods is another important milestone in dynamically pursuing the international growth strategy of the Eckes-Granini Cork.

“In the global market, Irish whiskey experienced the fastest volume growth in the last five years, outpacing all other spirits categories. Consumers worldwide are seeing it as an alternative to other whiskies,” says Mark Brown, president and chief executive of Sazerac. “We are confident that we will be able to take Paddy to the next level, building on its strong history and roots.”

The divestment of Paddy Irish Whiskey is in line with the Pernod Ricard strategy to simplify its portfolio for growth and could facilitate, among other things, targeted investment in other key Irish Distillers’ whiskey brands including Jameson and Powers to support continued growth.

Arla Foods Sells Nordic Juice Business to Eckes-Granini Arla Foods has sold its juice subsidiary Rynkeby Foods to Germany-based Eckes-Granini Group, the leading producer of branded fruit-based beverages in Europe. Rynkeby is the largest manufacturer of juice and cordials in the Nordic region, selling more than 130 million litres of beverages for consumers primarily in Denmark, Sweden and Finland. The company was founded in 1934 but has been fully owned by Arla Foods since 1998.

Povl Krogsgaard, vice-chief executive of Arla Foods, comments: “Over the past two decades Arla has sold off subsidiaries that do not have a direct link to dairy production

4

Group,” says Thomas Hinderer, chairman and chief executive of the Eckes-Granini Group. “We are now number one in eight European countries as we continue to pursue our successful course as the leading supplier of fruit beverages.”

As part of the agreement, the parties have agreed on a structure for the continuation of the current distribution set-up.

Halewood International Strengthen Spirits Portfolio Halewood International, the UK’s leading independent drinks manufacturer and distributor, has acquired the Liverpool Gin brand as part of its continued expansion plans. With a new senior team in place, Halewood International is looking at a number of opportunities to expand its product range and reach in both the UK and further afield. Following the recent acquisition of the Pogues Irish

Whiskey brand, the latest addition to support Halewood’s spirit offering is from the company’s home city of Liverpool.

The purchase of Liverpool Gin also paves the way for Halewood to start distilling a wider range of premium spirits in the Sovereign Distillery at its Huyton-based facility.

Fane Valley Sells Dairies Business to Lakeland Dairies Fane Valley, the Northern Ireland farmers’ co-operative, has sold its dairy business to Lakeland Dairies, a fellow cooperative based in the Republic of Ireland, for an undisclosed sum. The addition of the Fane Valley Dairies business, based at Banbridge in County Down, will increase the milk available for Lakeland Dairies to process to 1.1 billion litres a year.

Lakeland Dairies will become the third largest Irish milk processor behind Glanbia

pay the highest possible milk price to all our milk producers through continuing innovation, efficiency and excellence in everything we do.”

Trevor Lockhart, chief executive of Fane Valley Co-operative, says: “Fane Valley and Lakeland Dairies are absolutely convinced that the interests of their respective milk suppliers will be better served in a combined business which can deliver greater economies of scale and enhanced market capability.”

Fane Valley will continue to develop and invest in its wider agriculture and food related businesses.

European Commission Approves Sysco's Acquisition of Brakes

The European Commission has cleared the proposed acquisition of Brakes, the largest UK food distributor, by Sysco, the largest US food distributor. The Commission found that the takeover would not adversely affect competition in Europe.

Both companies are full range disPictured left to right: Lakeland Dairies’ group chief tributors, deliverexecutive Michael Hanley and chairman, Alo Duffy, ing a broad variety with William McConnell, chairman, and Trevor of chilled, frozen Lockhart, chief executive of Fane Valley Co- and ambient food across all product operative. categories and Ingredients Ireland and across all sectors of the food service industry. Sysco's activities Dairygold Co-operative.

Fane Valley and Lakeland had in the European Economic Area originally proposed strategic (EEA) are carried out mainly joint ventures, announced previ- through its subsidiary Pallas, ously in August 2015, which which is active in the Republic would have involved both the of Ireland and Northern Ireland. dairy and agri-business interests Brakes' business is mainly of the respective businesses. The focused in the United Kingdom simplified deal structure is con- (where it is the largest foodservice distributor), France and sidered to be a better option.

Michael Hanley, chief execu- Sweden, but it also sells in the tive of Lakeland Dairies Co- Republic of Ireland. The comoperative, comments: “The panies’ activities mainly overlap agreement we have reached with in the island of Ireland. our neighbouring co-operative, Fane Valley, represents a major step forward for the industry and for Lakeland Dairies, albeit not via the structure initially envisaged.

The move will reinforce our continuing commitment to

FOOD & DRINK BUSINESS EUROPE, JUNE/JULY 2016

COVER STORY

The Top 100 Food and Drink Manufacturers in the UK and Ireland Food & Drink Business Europe presents its twenty-first annual ranking of the top one hundred food and drink manufacturers in the UK and Ireland, along with some key business highlights from the past twelve months. anked according to their most recently available annual turnover figures, with pre-tax profits also listed, the 2016 Top 100 incorporates companies ranging in scale from Unilever’s refreshment and foods business, which achieved global sales of Eur23.0 billion (£17.5 billion) in 2015, down to SA Brain & Co, the biggest brewer and hospitality company in Wales, with a turnover of £126.8 million. Third ranked Diageo is the largest beverages group.

After a series of acquisitions, Boparan Holdings (the parent company of 2 Sisters Foods Group) has developed into the UK’s largest grocery market supplier and is one of the largest privately owned food groups in the UK and Europe. In the past five years, Boparan has increased annual turnover from £739.1 million to £3.14 billion and moved from 32nd to 5th position in the Top 100 rankings.

compared to an initial headline price of £80 million. In addition to selling the Dairies operation, Dairy Crest also completed a significant investment programme in functional ingredients manufacture at its Davidstow facility in Cornwall. “These initiatives have transformed the group,” points out Mark Allen, chief executive of Dairy Crest. “Dairy Crest is now a simpler business focused on growth and innovation in branded and value-added products. The business is well positioned to generate cash and deliver attractive margins that should improve in the future.”

R

Scott Waddington, chief executive of SA Brain & Co, which is ranked 100th in the 2016 Top 100.

Paul Polman, chief executive of Unilever, which is the leading company in the 2016 Top 100.

Companies with annual turnovers in excess of £1 billion occupy the top 28 places within the 2016 league table.

Consolidation in Dairy A notable departure from the Top 20 companies is Dairy Crest, which has been restructuring its business in recent years, including the £341.1 million disposal of its St Hubert French spreads business in August 2012 to refocus on its UK operations. Following the recent sale of its problematic Dairies business to Muller UK & Ireland Group, Dairy Crest reported sales from continuing operations of £422.3 million for the financial year ended 31 March 2016. The group, which was ranked 20th in the 2015 Top 100 with sales of £1.3 billion, has now dropped from 12th position in 2012 to 54th in the 2016 league table.

Dairy Crest’s Dairies operation incurred an operating loss of £33.3 million on sales of £529.1 million last year. The losses impacted on the sale proceeds with the final consideration estimated at £28.6 million

UK Growth of Muller Dairy Crest’s Dairies business has now been incorporated into Muller’s Milk & Ingredients business unit in the UK. The business produces skimmed, semi-skimmed, whole, and flavoured milk products for brands such as Black & White, The One, freshnlo and FRijj. It also has the capacity to produce salted, unsalted and lactic butter for both the domestic and international markets.

Muller UK & Ireland Group’s second business unit is Muller Yogurt & Desserts,

FOOD & DRINK BUSINESS EUROPE, JUNE/JULY 2016

Ivan Menezes, chief executive of Diageo (ranked 3rd).

7

responsibility for the development of the group’s international premium brands across the UK and Ireland - including Peroni Nastro Azzurro, Pilsner Urquell and Miller Genuine Draft. SABMilller has also moved into the craft beer sector in the UK following its acquisition of London-based Meantime Brewing Company, a pioneer in British modern craft beer, for an undis-

closed sum. These operations will soon move into Japanese ownership.

In order to allay competition concerns and gain clearance from the European Commission for the £71 billion mega-deal, AB InBev has agreed to sell SABMiller’s Peroni, Grolsch and Meantime brands and their associated businesses in Italy, the Netherlands and the UK to Japanese brew-

Ranjit Singh, chief executive of Boparan Holdings (the parent company of 2 Sisters Foods Group), which is ranked 5th in the Top 100.

the UK’s leading yogurt manufacturer, responsible for major brands such as Muller Corner, Mullerlight and Muller Rice. Muller Yogurt & Desserts also supplies the UK private label yogurt market.

Muller UK & Ireland has increased group turnover from £400 million to £1.5 billion since 2011 and moved from 55th to 17th position in the Top 100. The acquisition of liquid milk specialist Robert Wiseman Dairies for £279.5 million in 2012 transformed Muller’s UK business, substantially increasing its scale and broadening its dairy portfolio. Muller Group’s enlarged UK business now processes 25% of Britain’s milk production.

Mega-deal Of course, the largest deal involving a UKbased company in the past year is AB InBev’s proposed £71 billion acquisition of SABMiller. The deal will merge the two biggest players in the global beer market.

Although SABMiller is headquartered in London and is listed on the London Stock Exchange, with a secondary listing on the Johannesburg Stock Exchange, it has very limited brewing operations in the UK. SABMiller’s UK subsidiary, Miller Brands UK, was launched in 2005 with the

Javed Ahmed, chief executive of Tate & Lyle (ranked 7th).

Company 1 (1) Unilever(Refreshment & Foods) 2 (2) Associated British Foods 3 (3) Diageo 4 (4) Kerry Group 5 (5) Boparan Holdings

Turnover

Pre-tax Profits

Ownership/Status

£17.51b £12.80b £10.81b £4.64b £3.14b

£2.38b* £717.0m £2.93b £458.1m -£13.6m

6 (8) Arla Foods UK

£2.99b

-£88.0m

7 (7) Tate & Lyle 8 (6) Glanbia 9 (12) ABP Food Group

£2.36b £2.11b £2.05bE

£126.0m £166.2m nd

plc plc plc Irish co-op/plc Incorporating 2 Sisters Food Products – Independent Arla Foods, Denmark/Sweden plc Irish co-op/plc Formerly Irish Food Processors - Irish Independent

£1.93b £1.84b

£55.1m £22.5m

12 (11) Coca-Cola Enterprises

£1.76b

£265.9m

13 (13) Nestle UK 14 (14) Bakkavor Group 15 (16) Princes 16 (23) Moy Park 17 (17) Muller UK & Ireland Group

£1.73b £1.68b £1.61b £1.44b £1.39b

£124.9m £49.2m £65.2m £9.4m £81.6m*

18 (18) MolsonCoors Brewing (UK)

£1.37b

£83.7m

19 (22) Greencore 20 (21) Greene King

£1.34b £1.32b

£59.4m £118.2m

10 (15) Ornua (formerly Irish 11

Dairy Board) (10) Mondelez UK

Irish dairy co-ops Mondelez International, US Coca-Cola European Partners Nestle, Switzland Independent Mitsubishi, Japan JBS, Brazil Alois Muller, Germany Molson Coors Brewing, US plc plc

Source: KEY NOTE, Irish Times, company accounts. * operating profits. Eur = £0.76. Figures in brackets indicate previous year’s rankings.

FOOD & DRINK BUSINESS EUROPE, JUNE/JULY 2016

9

er Asahi Group for Eur2.55 billion. The acquisition will allow Asahi to expand its growth platform in Europe and to become a global player with a distinct position, while increasing the presence of its flagship Asahi Super Dry brand.

During the past year, the UK brewing and pubs sector underwent further consolidation after Greene King completed its acquisition of Spirit Pub Company for £774 million in the most high profile deal in the pub sector since 2005, when Punch Taverns acquired the original Spirit Pub Company. The deal has created the UK’s leading managed pub company and allows Greene King to further realise its ambition

to create a clear industry leader and grow its share of the UK eating and drinking out markets. Greene King has a successful track record of acquisitions, completing around 20 deals since 1999 with a total value of over £2 billion.

Siobhán Talbot, group managing director of Glanbia (ranked 8th).

Company 21 (19) Britvic plc 22 (-) Wm Morrison Produce

Turnover £1.30b £1.26b

Pre-tax Profits £137.6m £43.5m

23 (9) Heineken UK

£1.22b

£121.6m

24 (26) Tulip

£1.17b

£18.7m

25 (24) Iglo Foods Holdings 26 (27) AB InBev UK

£1.16b £1.16b

£235.6m* £33.8m

27 (28) Hilton Food Group 28 (29) Cranswick 29 (30) Carlsberg UK

£1.09b £1.07b £991.7m

£27.9m £58.7m £11.3m

30 (25) William Grant & Sons 31 (31) Chivas Bros

£933.2m £916.4m

£175.7m £365.5m

32 (32) United Biscuits (UK)

£906.5m

£66.7m

33 (36) Marston’s 34 (38) Samworth Bros 35 (37) Greggs 36 (34) Dawn Meats Group 37 (35) Mars Chocolate UK 38 (40) Dunbia 39 (39) Premier Foods 40 (43) Kepak

£878.6m 836.9m £835.7m £835mE £828.0m £826.0m £771.7m £645mE

£31.3m £41.8m £73.0m nd £95.6m £6.6m -£13.0m nd

Ownership/Status plc Wm Morrison Supermarkets plc Heineken, Netherlands Danish Crown, Denmark Nomad Foods Anheuser-Busch InBev, Belgium plc plc Carlsberg, Denmark.

Independent Pernod Ricard, France Yildiz Holding, Turkey plc Independent plc Irish independent Mars, US independent plc Irish independent

Source: KEY NOTE, Irish Times, company accounts. * operating profits. Eur = £0.76.

£1 Billion-plus Acquisitions Deals worth over £1 billion announced during the past twelve months involving companies in the Top 100 include the $1.5 billion acquisition of Northern Ireland poultry group Moy Park by Brazil-based JBS, and the Eur2.6 billion purchase of Iglo Foods (ranked 25th), Europe’s leading frozen food company, by Nomad Holdings from another private equity firm Permira.

JBS is a global leader in beef, lamb and poultry processing and is also heavily involved in pork production. Moy Park is one of Europe’s largest poultry processors with 13 main production sites across the UK and Europe, employing over 10,600 people. Moy Park was previous owned by another Brazilian meat group, Marfrig Global Foods.

Having completed the Iglo Foods deal, Nomad Holdings was subsequently renamed Nomad Foods and proceeded to acquire Findus Group's continental European businesses in Sweden, Norway, Finland, Denmark, France, Spain and Belgium for £500 million. However, the remaining part of the Findus Group, including Young's Seafood (ranked 43rd) in the UK, was not part of the deal.

Another major deal involving a leading Top 100 company saw Diageo disposing of 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 proceeds of approximately £320 million, after tax and transaction costs will be used to repay borrowings. “Diageo’s strategy is to drive stronger, sustained performance through focus on our core portfolio,” says Ivan Menezes, chief executive of Diageo. “Wine

Mike Taylor, managing director of Mondelez UK (ranked 11th).

10

FOOD & DRINK BUSINESS EUROPE, JUNE/JULY 2016

Juice Processing Technologies

Liquid Foods As a specialist in process and equipment design for high density particulate products, JBT helps processors create successful food products.

John Bean Technologies SpA Via Mantova 63/A 43122 Parma - Italy Phone: +39.0521.908.411 sales.parma@jbtc.com

Citrus Extraction

Juice Extraction

In-Flow Sterilization | Aseptic Filling - Bulk

T.A.S.T.E. Evaporation

READYGo™ ASEPTIC MONOBLOCK

Mixing Group

Filling | Closing | In-Container Sterilization

Rotary Filler

Automated Batch Retort Systems

Continuous Rotary Pressure Sterilizer

Stork Hydromatic® Continuous Hydrostatic Sterilizer

Extrusion Blow Moulding | In-Flow Sterilization | Aseptic Filling - Retail

John Bean Technologies NV Breedstraat 3 9100 Sint-Niklaas - Belgium Phone: +32.3.780.1211 fpsd.info@jbtc.com JBT Food & Dairy Systems Deccaweg 32 1042 AD Amsterdam The Netherlands Phone: +31.20.634.8911 info.ams@jbtc.com

Stork Bottle-Tec

www.jbtcorporation.com

Stork Sterideal® Coil

Stork Asep-Tec®

We’re with you, right down the line.™

the interest in European consumer businesses from Asian groups is growing, allowing them to expand their global footprint and also introduce western brands into their domestic markets.”

For example, Baring Private Equity Asia acquired a 40% stake in Weetabix (ranked 59th), the UK-based manufacturer of cereals and cereal bars. The Asian private equity firm will work in partnership with Bright Food, the controlling shareholder of Weetabix, to drive expansion in China.

Bright Food is one of the largest stateowned food manufacturing companies in China. The terms of the transaction were not disclosed.

Giles Turrell, chief executive of Weetabix, comments: “We are an estab-

Simon Litherland, chief executive of Britvic (ranked 21st).

Janet McCollum, chief executive of Moy Park (ranked 16th).

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.”

Growing M&A Activity According to research by business and financial advisory firm Grant Thornton UK LLP, overall disclosed deal value for 2015 in the UK and Irish food and beverage sector reached the highest total for five years. Internationalisation remains a key driving force with inward investment involving an overseas party increasing with a notable growth in the number of transactions involving Asian and US investors.

The number of acquisitions by UK/Irish companies also jumped compared to 2014.

“Companies’ desire to expand their global presence was a significant catalyst for M&A activity in 2015,” explains Trefor Griffith, head of Food and Beverage at Grant Thornton UK LLP. “The UK is an attractive market for overseas investors and

Patrick Coveney, chief executive of Greencore (ranked 19th).

Company 41 (45) Edrington Group 42 (42) Dairygold Co-op 43 (47) Young’s Seafood 44 (48) Warburtons 1876 45 (46) Noble Foods 46 (51) Faccenda Foods

Turnover £617.7m £596.5m £587.9m £574.1m £533.6m £532.0m

Pre-tax Profits -£52.7m £7.0m £37.4m £31.8m £18.7m £14.4m

47 (50) C&C Group 48 (52) Lucozade Ribena Suntory 49 (53) Lakeland Dairies 50 (49) Karro Food Group 51 (55) Birds Eye 52 (44) First Milk 53 (56) McCain Foods GB

£503.6m £489.2m £475.6m £457.7m £446.3m £442.2m £440.1m

£71.9m £15.9m £8.3m £12.5m £62.7m -£24.9m £63.7m

54 (20) Dairy Crest 55 (54) Sun Valley Foods 56 (58) Heineken Ireland

£422.3m £418.8m £389.6m

£45.4m £4.7m nd

57 (41) Hovis

£380.9m

£75.8m

58 (57) Meadow Foods 59 (59) Weetabix

£376.5m £352.1m

£14.0m £109.0m

60 (60) Irish Distillers Group

£340mE

nd

Ownership/Status Independent Irish co-op Lion Capital, UK Independent Independent Hillesden Investments Irish plc Suntory, Japan Irish co-op Independent Iglo Group Co-operative McCain Foods, Canada plc Cargill, US Heineken, Holland The Gore Group, US Independent Bright Food, China Pernod Ricard, France

Source: KEY NOTE, Irish Time, company accounts. * operating profits. Eur = £0.76.

FOOD & DRINK BUSINESS EUROPE, JUNE/JULY 2016

13

by overseas owners is Paddy Irish Whiskey, the fourth largest Irish whiskey brand in the world, which has been sold by Irish Distillers Group (ranked 60th) to Sazerac, a US-based family owned business, for an undisclosed sum.

The deal involves Irish Distillers Group, which is part of Pernod Ricard, continuing

to produce Paddy at its Midleton Distillery in County Cork.

Martin Davey, chairman of Cranswick (ranked 28th).

Expanding International Presence A number of Top 100 companies have expanded their international presence during the last twelve months. Unilever has strengthened its ice cream

David Forde, managing director of Heineken UK (ranked 23rd).

lished leader in the UK breakfast cereal market with an aim to become a globally recognised brand. With continued backing from Bright Food and this investment from Baring Asia, we now have an even greater opportunity to strengthen and expand the Weetabix brand internationally.”

Quorn Foods Sold For £550 Million Meanwhile, Monde Nissin Corporation, one of the leading food consumer goods companies in the Philippines, has purchase UK-based Quorn Foods (ranked 93rd) 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.

Sale of Famous Brands Thorntons (ranked 81st) is another famous UK brand to recently fall into foreign ownership after the chocolate manufacturer and retailer, which was established in 1911, was bought by Italian confectionery giant Ferrero Group for £111.9 million. Ferrero already had an established presence in the UK where it has operated since 1966.

A famous Irish brand to be snapped up

Company 61 (-) Linden Food Group

Turnover £336.0m

Pre-tax Profits £0.0m

62 (68) Fuller Smith & Turner 63 (67) Dale Farm

£321.5m £320.0m

£36.1m £0.0m

64 (61) Burton’s Biscuit Company

£314.9m

£19.2m

65 (63) JW Galloway (Scotbeef) 66 (73) KP Snacks

£308.0m £304.2m

£4.4m -£10.7m

67 (65) Refresco Gerber UK

£299.2m

-£15.0m

68 (62) Foyle Food Group 69 (66) Cott Beverages

£289.0m £288.4m

-£5.3m £16.8m

70 (70) Yeo Valley Group 71 (72) William Jackson & Son 72 (-) Walkers Snack Foods 73 (64) Bernard Matthews 74 (75) Ferrero UK 75 (69) Icelandic Group UK

£284.2m £276.0m £275.1m £267.6m £259.7m £258.8m

£6.6m £18.0m £11.1m -£3.7m -£4.0m -£3.1m

£258.6m £258.0m £256.2m

£41.3m £63.6m £11.4m

Ownership/Status Fane Valley Co-operative plc United Dairy Farmers Group Ontario Teachers' Pension Plan, Canada Independent Intersnack, Germany Refresco Gerber, Netherlands Independent Cott Corporation, Canada Independent Independent PepsiCo, US Independent Ferrero, Italy Icelandic Group, Iceland plc Mars, US plc

£232.9m £226.3m

-£3.5m £0.2m

plc Independent

76 (74) AG Barr 77 (76) Wrigley Company 78 (86) Finsbury Food Group 79 (71) The Real Good Food Company (88) Baxters Foods Group

Stefan Descheemaeker, chief executive of Nomad

80

Foods, which recently completed the acquisition of

Source: KEY NOTE, Irish Times, company accounts. * operating profits. Eur = £0.76.

Iglo Foods (ranked 25th).

FOOD & DRINK BUSINESS EUROPE, JUNE/JULY 2016

15

business in the Philippines.

R&R Ice Cream was formed in 2006 when Oaktree acquired Richmond Foods, Britain's biggest ice-cream maker and united it with Roncadin, the largest German own-brand label ice cream manufacturer, which it had bought the year before.

Britvic (ranked 21st) has expanded its international soft drinks presence with the £120.8 million acquisition of Empresa

Brasileira de Bebidas e Alimentos, the leading supplier of liquid concentrates and the number two supplier of ready-to-drink nectar drinks in Brazil. The transaction provides Britvic with immediate access to the sixth largest soft drinks market and the largest concentrates market globally.

Also in soft drinks, Coca-Cola Enterprises is being merged with CocaCola Iberian Partners and Coca-Cola

Jon Eggleton, managing director of United Biscuits UK (ranked 32nd).

portfolio with the acquisition of GROM, the Turin-based premium Italian gelato business for an undisclosed sum.

Also in ice cream, UK-based R&R Ice Cream and Nestlé have agreed to establish Froneri, a joint venture with sales of around SFr2.7 billion (Eur2.45 billion) in over 20 countries and employing about 15,000 people. Froneri will be headquartered in the UK and will operate primarily

Company

81 (79) Thorntons

Turnover

Pre-tax Profits

Ownership/Status

£224.9m

-£10.2m

Ferrero International,

82 (80) McCormick UK 83 (84) Lactalis McLelland 84 (81) Innocent 85 (89) R&R Ice Cream UK

Switzerland £221.3m

£8.9m

McCormick, US

£201.9m

-£3.8m

Lactalis, France

£201.8m

£7.5m

Coca-Cola, US

£201.2m

£31.5m

PAI Partners, France & Nestle

86 (82) Coca-Cola HBC Northern Ireland

Roger Whiteside, chief executive of Greggs (ranked 35th).

in Europe, the Middle East (excluding Israel), Argentina, Australia, Brazil, the Philippines and South Africa. Froneri will be equally owned by both partners and will incorporate Nestlé’s and R&R's ice cream activities in the relevant countries and will include Nestlé's European frozen food business (excluding pizza and retail frozen food in Italy), as well as its chilled dairy

87 (83) Charles Wells £188.8m 88 (78) Halewood International £188.3m 89 (85) Manderley Food Group (Tayto) £174.2m 90 (77) Whyte & Mackay Group £167.1m

£10.5m

Confectionery

92 (90) Pork Farms Group 93 (96) Quorn Foods

Coca-Cola HBC, Greece

£7.6m

Charles Wells

-£6.8m

Independent

£7.1m

Independent

-£3.7m

Emperador, Phillipines

91 (87) Tangerine £158.4m

£2.0m

Independent

£158.4m

£53.8m

Independent

£150.3m

-£4.9m

Monde Nissin Corporation,

94 (92) Kellogg Co of GB 95 (91) Symington’s 96 (95) Walkers Shortbread 97 (94) Shepherd Neame 98 (-) Natures Way Foods 99 (97) Lantmannen Unibake UK 100 (99) SA Brain & Co

Mark Allen, chief executive of Dairy Crest (ranked

£189.6m

Philippines £150.2m

£29.9m

Kellogg

£141.3m

£4.8m

Independent

£140.8m

£10.9m

independent

£138.3m

£9.4m

plc

£135.8m

£6.5m

Independent

£135.4m

£0.3m

Lantmannen,

Company, US

Sweden £126.8m

-£4.5m

Independent

Source: KEY NOTE, Irish Times, company accounts. * operating profits. Eur = £0.76.

54th).

FOOD & DRINK BUSINESS EUROPE, JUNE/JULY 2016

17

Stock Exchange and is the largest sugar producer in Africa. It is one of the world’s lowest cost producers, with leading market positions in South Africa, Malawi, Zambia and Swaziland and a strong presence in Mozambique and Tanzania.

Africa is a growth market for sugar, driven by increasing populations and rising incomes. Illovo is well positioned to capitalise on this growth although high global sugar stocks, low world sugar prices and forthcoming changes to the EU sugar regime have created a challenging trading environment.

Giles Turrell, chief executive of Weetabix (ranked 59th).

Erfrischungsgetranke, a wholly owned subsidiary of The Coca-Cola Company, to create a new company, Coca-Cola European Partners, which will be the world’s largest independent Coca-Cola bottler based on net revenues. The combined company will operate in the four largest markets for non-alcoholic ready-todrink beverages in Western Europe – Germany, Spain, Great Britain and France.

The merger includes Coca-Cola Enterprises’ UK business, which holds twelfth position in the Top 100.

ABF Extends Sugar Activities Associated British Foods (ranked 2nd), the UK-based diversified international food, ingredients and retail group, has also extended its international influence after agreeing to acquire the 48.65% interest in Illovo Sugar that it does not already own for ZAR5.6 billion (£262 million) in cash.

ABF acquired its majority shareholding in Illovo in 2006.

Illovo is listed on the Johannesburg

Health & Nutrition In addition to internationalisation, another key trend fuelling M&A deal activity is the acquisition of perceived ‘healthy’ food and beverage products. For example, Samworth Brothers (ranked 34th), the owner of Ginsters Cornish Pasty, acquired sports nutrition brand SCI-MX, while Glanbia (ranked 8th), the Irish and global nutrition group, purchased US protein bar manufacturer thinkThin for $217 million.

Another Irish nutrition and consumer foods business, Kerry Group (ranked 4th) acquired three US-based businesses - Red Arrow Products, Island Oasis and Biothera’s Wellmune operation - to significantly expand its industry-leading portfolio of innovative taste and nutrition solutions for global food, beverage and pharmaceutical applications. The total consideration for the three businesses was $735 million.

"With a number of on-going investment themes underpinning transaction activity there is no reason to expect a drop off in M&A activity and we are optimistic that 2016 will be another strong year for the food and beverage sector,” says Trefor Griffith. “Large corporations are sitting on significant amounts of cash, private equity

Rob Burnett, chief executive of Bernard Matthews (ranked 73rd).

18

FOOD & DRINK BUSINESS EUROPE, JUNE/JULY 2016

groups have plenty of unspent capital and alternative debt providers are proliferating.”

Strong Appetite Indeed, the strong appetite for M&A deals has continued into the first quarter of 2016. For example, Japan-based Nissin Food Holdings has taken a 19.9% shareholding in Premier Foods (ranked 39th), which own famous British brands including Bisto, Oxo, Loyd Grossman, Sharwood’s, Mr Kipling, Cadbury cake and Ambrosia. Nissin, which invented the world's first instant noodles in 1958, operates in 19 different countries, spanning Asia Pacific, the Americas, Europe, Middle

Jim Walker, joint managing director of Walkers Shortbread (ranked 96th).

East and Africa. It is a global leader in instant noodles holding the number one or two positions in key markets, including Japan, the United States and Brazil and has a growing presence in chilled and frozen foods, cereal-based confectionery and yoghurt beverages in Japan. Nissin's presence in Europe includes Hungary, Germany and Spain, with brands such as Cup Noodles, Soba and Top Ramen.

The alliance provides Premier Foods with access to Nissin’s global network as well as the Japanese food group’s portfolio of innovative products for distribution in the UK. Of course, Premier Foods was the subject of a recent failed £537 million takeover bid by McCormick & Company, the US-based spices and spices group.

On the food service side of the industry, Sysco Corporation is acquiring Brakes Group, which is headquartered in London and has operations in the UK, Ireland, France, Sweden, Spain, Belgium and Luxembourg, for$3.1 billion (£2.15 billion) from Bain Capital Private Equity.

Sysco is North America’s leading food service distributor and the deal will expand its footprint in the UK and Ireland and further into Europe. J

I INGEDIENTS & CONSUMER FOODS

Kerry Group – A Global Leader in Taste & Nutrition Ranked fourth in the 2016 Top 100 league table, Kerry Group is Ireland’s largest indigenous food company and is also the largest and broadest innovation and solutions provider in the fragmented $65 billion global ingredients and flavours market. eadquartered in Tralee, County Kerry in Ireland and listed on the Dublin and London Stock Exchanges, Kerry Group employs some 23,000 people (including 800 scientists) and serves a global customer across over 140 countries.

Contributing 76% of group sales and 84% of group trading profit in 2015, Kerry’s Taste & Nutrition business is by far the largest element of the group. Kerry Taste & Nutrition is a ‘B2B’ taste, nutrition and functional ingredients solutions provider to all sectors of the food, beverage and pharmaceutical markets.

H

Consumer Foods In addition to its Taste and Nutrition activities, Kerry Group’s consumer foods business – Kerry Foods – is a leading supplier of added value brands and customer branded foods to the Irish, UK and selected international markets. Although only accounting for 24% of group revenue and 16% of trading profit, Kerry Foods is still a substantial business with sales of almost Eur1.5 billion in 2015.

Kerry Foods’ portfolio of consumer branded products includes over 20 high profile brands across three major market sectors - meat and savoury products, meal solutions and dairy products. The division’s brands are household names in their respective markets including category leaders such as Richmond, Wall’s, Mattessons, Denny,

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

Shaws, Cheestrings, Dairygold and LowLow. Kerry Foods is also a leading provider of customer branded chilled foods.

Kerry Foods has recently restructured its business with the disposal of its pastry manufacturing assets in August 2014 and its Direct-To-Store business in the UK at the end of February 2015.

Robust Financial Performance Kerry Group reported a 10% rise in trading profit to Eur700 million on revenues up by 6.1% to Eur6.1 billion for year ended 31 December 2015. The trading performance was aided by the group’s 1 Kerry efficiency programmes, improved product mix and the repositioned Kerry Foods business portfolio, resulting in group trading profit margin increasing by 40 basis points to 11.5%, reflecting a 40 basis points improvement in Taste & Nutrition to 14.1% and a 20 basis points improvement in Kerry Foods’ margin to 8.5%.

The Taste & Nutrition business reported an 8.7% increase in revenue to Eur4.7 billion and trading profit growth of 11.9% to Eur663 million. The repositioned Kerry Foods’ portfolio performed well delivering 3% volume growth in 2015. Sales revenue in the repositioned Kerry Foods’ portfolio was reported at Eur1.48 billion. Trading in the division’s continuing businesses improved during the year, with reported trading profit similar to the prior year level at Eur126 million despite the business disposals.

Having completed ten deals during the year at a net cost of Eur888 million, 2015 was a record year of acquisition investment for Kerry Group as it continued to consolidate its leading global infrastructure and expand its technology and market footprint for future growth.

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 product

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

development. The group invests heavily in highly specialised 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. For example, Kerry Group recently invested Eur100 million to establish a Global Technology & Innovation Centre at Naas in Ireland.

Stan McCarthy, chief executive of Kerry Group, comments: “Our new Global Technology & Innovation Centre will serve as a focal point for Kerry’s customer engagement activities providing key customers with access to the group’s complete breadth and depth of technologies, scientific research, innovation and applications expertise, across food, beverage and pharmaceutical markets. In addition it will serve as the group’s Global Centre of Excellence for Nutrition and will optimise product differentiation in the marketplace while providing unrivalled speed to market.” J

FOOD & DRINK BUSINESS EUROPE, JUNE/JULY 2016

21

ENERGY

ENVIRONMENT

I GREEN BUILDING

IPN-QuadCore – Delivering Enhanced Fire and Thermal Performance From Insulated Panels nce upon a time, strong environmental ratings for a building were considered nice-to-haves – the preserve of clients with big O budgets and architects with significant design responsibility.

However, advances in environmentally-friendly building technology, coupled with a strong business case for sustainability, have effected 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.

BREEAM and LEED Accreditation Interestingly, more and more stakeholders view BREEAM and LEED accreditation as fundamental attributes for their buildings, as vital indeed as location, floor space and construction cost. The traditional view has been 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 gains associated with enhanced thermal performance and sustainably constructed buildings.

So how will the industry respond to the market’s desire for better buildings? First, we need to define a truly environmentally-friendly building. Broadly speaking, it is one that will have a minimal impact on its surrounding environment and contribute positively to the wider world.

To achieve this goal the environmentally friendly building should reduce energy consumption to a minimum, be constructed

22

using products that mitigate environmental impact with a low carbon footprint, that will perform for the duration of a building’s desired life, and finally, that can be readily recycled when the building has finished it functional life.

New Technology Kingspan’s new high performance insulated panel meets all of these needs, by utilising revolutionary new hydrid IPN-QuadCore technology. IPN Quadcore delivers industry-leading thermal performance, delivering significantly reduced 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 IPN-QuadCore 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 environmentally-friendly 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.abstract.

Please contact Kingspan to discover how IPN-QuadCore 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

FOOD & DRINK BUSINESS EUROPE, JUNE/JULY 2016

QUALITY

HYGIENE

Hygienic Building Protection n food and drink factories, hygiene is an important factor when Iproducts. manufacturing, processing, packaging and distributing quality It is imperative that the construction of the factory will not impede production or fail due to impact or wear.

With light and heavy equipment and machinery travelling throughout the premises there is chance of collisions into the walls, columns or doors ways, or in worst cases the operatives working in the factory. The aesthetics of the building will therefore significantly decrease if there isn’t sufficient protection in place.

Aspen Stainless have previously worked with a well-known food processing company to improve the construction of their new factory. From the stainless steel range, Aspen installed their wall kerb, bump rail, guard rail and wall cladding.

The wall kerbing was fully welded in place and had its welds ground down to leave a smooth, seamless finish. The top and bottom of the kerb was then sealed with a resin compound, providing a completely sealed surface between the walls and floor.

For added protection, low level bump rail was installed in front of the wall kerb to protect the main construction of the factory from vehicles and other collisions.

In the food production areas, high level guard rail was installed to protect the walls and columns from the food racking trollies, which also doubled up as a storage location for the racking when it was not in use.

With strict demands for hygienic plant and equipment in all food and drink industries, Aspen has the ability to provide a tailored product package to meet your specialist requirements using its range of drainage, wall kerbing, and protection.

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

FOOD & DRINK BUSINESS EUROPE, JUNE/JULY 2016

23

I FRESH PREPARED FOOD

Bakkavor Celebrates 30th Anniversary With Revenue Growth and Margin Improvement 2016 marks the 30th anniversary of leading fresh prepared food group Bakkavor, which was founded by brothers Agust and Lydur Gudmundsson in Iceland to manufacture and export fish products. oday, Bakkavor employs more than 18,000 people and produces over 5,500 products in 18 different categories, include ready meals, pizza, salads, desserts, soups and sauces. In the UK, Bakkavor is now the number one producer by value in 13 of the 16 categories of chilled food it supplies to the market. Customers include some of the UK’s best

T

Financial Performance For the year ended 26 December 2015, Bakkavor increased revenue by 2.5% on the prior year to £1.674 billion. On a like-forlike basis, excluding acquisitions, sold and closed businesses and at constant currency, revenue growth was 1.6%, chiefly due to strong growth from Bakkavor’s International operations.

Revenue at Bakkavor’s UK business was broadly flat at £1.52 billion as sales growth was limited due to volume gains in core categories being offset by price decreases as raw material deflation was passed on to customers. UK revenues were also impacted by the closure of Bakkavor’s Prepared Fruit business in June 2015.

Reported revenues in Bakkavor’s International segment increased by £42.1 million to £155.5 million, with particularly strong growth in the US and Asian businesses. The US business now includes B Robert’s Foods, which has contributed £22.3 million of revenues since its acquisition in January 2015. On a like-for-like basis International growth was 14.3% reflecting increased volume demand, new product roll outs in Asia and the US and improved pricing from core Asian customers.

Agust Gudmundsson, chief executive of Bakkavor.

known grocery retailers including Tesco, Marks & Spencer, Sainsbury’s, Waitrose, Asda and Morrisons, which sell Bakkavor’s products to consumers under their respective retailer brands. Bakkavor also has an International division with operations in the US, Asia and Continental Europe supplying fresh prepared food products to both retail and food service customers.

Strategic Progress “We made excellent progress during the year, as we continued to reshape our International portfolio and focused on our core product categories,” points out Agust Gudmundsson, chief executive of Bakkavor Group. “We exited a low-margin business in the UK, restructured our Belgian operation and grew volumes in Asia on the back of increasing customer demand. We also continued to build scale and geographic presence in the US with a major acquisition, our first in seven years.”

Bakkavor continues to be a UK market leader in fresh prepared foods, holding first or second positions across its 16 product categories.

Measure of Success Bakkavor uses growth in like-for-like revenue as a yardstick for assessing its success at generating revenue through product innovation, effective promotional mechanisms and business wins. In 2015, although UK like-for-like revenue was impacted by the group’s exit from certain low-margin business, it still grew ahead

FOOD & DRINK BUSINESS EUROPE, JUNE/JULY 2016

25

nience and freshness. “These trends are also becoming more evident in our targeted international markets and we will continue to focus on this exciting and dynamic sector of the food industry,” says Agust Gudmundsson.

The Bakkavor chief executive continues: “Intense retailer competition in the UK is here to stay, with discounters increasing their share of the grocery market and maintaining pressure on retail pricing. In such a competitive environment, our ability to develop own-label food ranges at pace is a core competitive strength, as our customers increasingly use our products to differentiate their corporate brand and showcase innovation. We continue to work closely with our customers and invest across the group to further strengthen our operations, technical excellence and product innovation.” of the UK food market, which declined by 0.2%. Indeed, Bakkavor continues to be a UK market leader in fresh prepared foods, holding first or second positions across its 16 product categories.

Similarly, Bakkavor utilises adjusted EBITDA as a measure for the group’s effectiveness in converting revenue into profitable growth. Adjusted group EBITDA was £129.7 million in 2015 – an increase of 14.5%. Increased volumes and productivity investments helped to support the margin and the restructuring of the UK business during the prior year and an exit from lowmargin business have been fundamental to reducing both cost and complexity throughout 2015. Strong International growth from an increase in consumer demand and successful integration of US acquisition were also factors.

Strong Position “As we celebrate Bakkavor’s 30th anniversary in 2016 we can report that the group is in a very strong position,” remarks Agust Gudmundsson. “Against a background of challenging market conditions, we achieved good revenue growth, margin improvement, excellent cash conversion and a recovery in the performance of our International business.”

The generation of free cash flow enables Bakkavor to reinvest funds in the business for future growth and to pay down debt.

During 2015, Bakkavor achieved strong cash conversion with a free cash increase of £48.9 million. Continued focus on working capital management has delivered further benefits.

Following a number of major capacity investments in recent years, capital expenditure in 2015 focused on productivity and maintenance projects and was lower than in 2014. The £38 million of capital expenditure projects last year included ready meals automation, desserts and salads capacity improvements and capability investments in bread and pizza.

UK Market According to Bakkavor, the UK fresh prepared foods market grew faster than the wider UK grocery market during 2015 although overall consumer spending remained subdued. This reflects a continued preference by consumers for quality, conve-

26

Innovation Indeed, innovation remains crucial to maintaining Bakkavor’s position as a leading UK provider of fresh prepared foods and in supporting its growth in key international markets, as the group continues to focus on ongoing growth and margin performance.

About a third of Bakkavor’s products are renewed or refreshed every year and the group has a strong track record of innovation.

For example, in 2015, Bakkavor launched a variety of fresh breakfast products, including Bircher-style muesli, porridge, and bacon and sausage muffins in the ‘breakfast on the go’ category.

Bakkavor continues to extend its customer base and in the UK recently moved into two new growth areas. Agust Gudmundsson explains: “We opened a pizza restaurant and also partnered a British vegetable grower to create our Garden of Innovation, enabling us to introduce exciting and unusual produce into UK supermarkets. Initiatives such as these demonstrate the importance we place on innovation to drive growth and margin.”

Change in Ownership Structure In January, 2016 Bakkavor strengthened its ownership structure when The Baupost Group, a Boston-based US hedge fund, invested £163 million in acquiring a stake in the prepared fresh foods processor. Agust and Lydur Gudmundsson continue to control approximately 89% of the outstanding shares of the business and there have been no changes to the day to day operations of Bakkavor.

“Early 2016 marked a turning point when we resolved historic issues with our ownership structure and welcomed The Baupost Group as our new long-term strategic partner,” comments Agust Gudmundsson. “We also restructured our debt capital to reduce our cost of financing. With this stability we look forward to pursuing our long-term objectives with confidence.”

However, the business environment will continue to be difficult, at least in the short-term. According to group chairman Lydur Gudmundsson: “In 2016, the year of Bakkavor Group’s 30th anniversary, we expect trading conditions to remain challenging, particularly due to intense retailer competition and increased input costs; but we remain highly confident in our long-term strategy for growth.” J

FOOD & DRINK BUSINESS EUROPE, JUNE/JULY 2016

We solve problems FEG Ltd are Food Industry specialists providing a range of services including Design, Project Management, Interim Management, Consultancy and Full Project Packages.

Our Expertise • • • •

Project Management CDM 2015 (Construction Design & Management) CE Marking and Safety Assessments Design: structural, process and compliance 2D & 3D Models • Dust Extraction & Atmosphere Control • Energy Sustainability & Heat Recovery • Flood & Disaster Recovery Management 5 Bede House,Tower Road, Washington, Tyne & Wear, NE37 2SH, UK Telephone: +44 (0)191 417 1479 Email: info@feg-global.com Web: feg-global.com

Safety Under Foot With Resin Flooring fficiency and safety under foot in a food E factory is high 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 well-known 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 expert recommendations - +44 (0)115 986 6321, www.john-lord.com. J

TMDP LLP – Dedicated to the Food and Drink Processing Industry MDP LLP is a full service architectural T design and property management agency working with, and retained by some of the largest food and drink processing companies

28

across the UK. With the ability to recognise and react to the demanding timescales and complex programming inherent in processing plant projects, TMDP LLP are able to offer outstanding value for money, innovative design and exceptional construction and maintenance solutions to the UK’s food and drinks processing industry.

TMDP LLP’s breadth of experience means they can deliver all types of projects within this sector, from new build, refurbishment and complete redevelopment to silo construction, plant room fit-out and production line design and installation.

By working closely with clients at every stage, TMDP LLP are able to understand and implement exactly what is required to ensure operational efficiencies and effectiveness. TMDP LLP also understand that down-time and production line disruption is critical and as such, a comprehensive programme of works is agreed at the outset of a project and rigorously maintained throughout its duration.

TMDP LLP’s track record speaks for itself and their blue-chip client base is testament to the company’s abilities and dedication to the food and drink processing industry. J

FOOD & DRINK BUSINESS EUROPE, JUNE/JULY 2016

CMT Sales Expand Since Joining GEA MT SpA in Peveragno, Italy, supplier of systems for the proC duction of ‘pasta-filata’ cheeses, has increased its sales significantly since becoming part of GEA in the middle of last year. The increase is as a result of synergies created as part of GEA and cooperation with other members that supply related technologies.

The new GEA company was established in Italy in the 1970s and successfully gained itself an excellent reputation for the mechanisation of production processes for fresh mozzarella, pizza cheese, provolone, scamorza, kashkaval, etc. The company has an installed base of over 3,500 systems, predominantly in Europe and the Americas, each producing between two and ten tons per hour.

CMT also supplies small-scale testing equipment.

The company became part of GEA on 22 June, 2015. Since then it has benefitted from the experience and know-how available within the group and from the excellent relationship GEA has with its existing customers worldwide. Paolo Tomatis is sales director in Peveragno. He says that the change has been rousing since his company became part of GEA. “We have been able to invest in new technology, expand our research and development program, and employ new talent that will help us to continue driving our company forward well into the future,” he says. “Our constant increase in sales since last June also demonstrates the difference GEA has made for us in such a short time.”

GEA customers have been benefiting too. Having access to the entire scope of supply from GEA has enabled CMT to expand its service offering to include equipment for the whole production process of ‘pasta-filata’ cheese, right from milk reception through to the packed mozzarella ready to be sold on the market. “We can now offer complete production lines that are tailor-made for our customers,” explains Dr Tomatis. “The range of equipment and the depth of knowledge that is available within GEA has completely transformed our business.”

This expanded range of equipment includes stretching and molding machines, and hardening and brining vats from CMT itself now enhanced by GEA technologies such as mixing and blending, membrane filtration, liquid handling systems and technology for the manufacture of hard and semi-hard Dutch style cheeses thereby offering a full scope of supply to manufacturers throughout the dairy sector.

Much has changed for CMT since last June. One thing that has not changed, however, is the loyalty and dedication of the employees at Peveragno. Although the company now has a global offering, it has not let go of its roots as a specialist supplier that cares about its customers and greatly values the long-term relationships it has enjoyed over so many years. Becoming part of GEA has been a good news story for the company, its employees and its customers – old and new. J

Modern Technology Used to Show Modern Technology PX FLOW now offers a virtual reality experience for its cusS tomers to explore solutions in different industrial settings. Users can tour sites that may be of interest to them and review where and how SPX FLOW’s state-of-the-art technology can help to optimize plant efficiency and final product quality.

The new virtual reality app from SPX FLOW gives users a new experience and way to view where and how its technology is used.

The first industry available shows users a craft brewery site.

Users enter the processing plant and are guided by an audio description of where they are and what is available to view. In the craft brewery they can see a pneumatic butterfly valve, a Seital centrifugal separator and latest EcoPure pumps that use high powered magnets to ensure efficient, reliable and safe hygienic pumping. If any of the technologies are selected, the app takes the user through a video and audio explanation of how the technology operates.

The app works by using augmented reality, allowing the user a direct view and focus, on different parts of the plant as the user physically turns around. It also links to further videos and information about products available on YouTube where customers can learn more details about the benefits of these technologies and how the solutions can help with their particular application. For further information or to download the app please visit www.spxflow.com/en/apv/downloads/smartphone%20apps or simply type SPX FLOW into your device’s App store. J

FOOD & DRINK BUSINESS EUROPE, JUNE/JULY 2016

29

WELL ROAD, NENAGH, CO. TIPPERARY

I IRISH DAIRY

Challenging Times For Arrabawn Co-operative Like other Irish milk processors, Arrabawn Co-operative faces a challenging period due to severe turbulence in global dairy markets following the abolition of EU milk quotas in April 2015. eadquartered in Nenagh, County Tipperary, Arrabawn Co-op produces dairy consumer products such as milk, butter and cream, along with dairy ingredients including casein, skim milk powder, whole milk powder, whey. Founded following the merger of Nenagh Co-op and Mid West Farmer’s Coop in 2001, it is a leading provider of dairy produce to the Kerrygold brand, which is marketed domestically and internationally

by Ornua (formerly the Irish Dairy Board).

With revenue of Eur205.1 million in 2015, Arrabawn Co-op operates three divisions. Based at Nenagh, Arrabawn Dairy Ingredients manufactures a comprehensive range of high quality functional food ingredients. Located at Kilconnell in County Galway, Arrabawn Dairies operates a liquid milk manufacturing and sales distribution site supplying all the major supermarket groups, convenience stores and independents in the region. The third division, Arrabawn Agribusiness, produces animal feed products.

Arrabawn Co-op has been impacted by a severe imbalance between supply and demand in global dairy markets resulting from increased milk production, not only in Europe but also in North America and Australia, coupled with a slowdown in exports to China and the Russian trade embargo.

shareholders,” points out Conor Ryan, chief executive of Arrabawn Co-op. “The co-op’s balance sheet is very solid, with total capital and reserves going from Eur42 million to Eur44 million, further underlining the strong performance.”

The instability and extreme price volatility that characterised the global dairy market in 2015 has continued into the current year.

H

Record Volumes Although the co-op processed record milk volumes of 353 million litres in 2015, up

Conor Ryan, chief executive of Arrabawn Co-op.

15% on the previous year, operating profit at Eur2.1 million was down Eur2.3 million on 2014. Capital investment of Eur40 million, including Eur9.1million in 2015, in new technology and efficiencies over the past five years along with milk supports allowed Arrabawn Co-op to limit the impact of the drop in global commodity prices on its suppliers by paying an average milk price of 30.4c/lt.

“Profit levels of Eur2.1 million were more than solid, not least in the context of the difficult environment, and we were able at the same time to support our farmers on milk price, an important intervention in an otherwise very challenging year for our

Tough Trading Environment According to Conor Ryan: “The next six to 12 months will be tough but the co- op will do all it can to ensure farmers get maximum support through this period. The milk markets are not a pretty picture right now.

World milk supply from January to March this year is up almost 4%, which is phenomenal. Some 80% of the increase in global milk supply is coming out of Europe and four countries, Holland, Germany, Ireland and Poland, account for 60% of that. Ireland, in turn, is two thirds of that.

The demand side is being helped by lower prices yet consumption is not improving.”

Arrabawn Co-op processed record milk volumes of 353 million litres in 2015.

Arrabawn Dairies operates a liquid milk manufacturing and sales distribution site supplying all the major supermarket groups, convenience stores and independents in the region.

Arrabawn Co-op’s milk volume has also increased in the current year – up by 18% and the over-supply situation in international dairy markets is persisting.

Chairman Sean Monahan expects that Arrabawn Co-op’s ongoing investment programme will continue to help its suppliers through a turbulent period for the dairy industry. “The year ahead is going to present further challenges but the co-op remains on a strong footing and well positioned to deliver for its shareholders,” says Sean Monahan. J

FOOD & DRINK BUSINESS EUROPE, JUNE/JULY 2016

31

ULMA’s Packaging Equipment is Perfect For Growing Herbs Market shift away from synthetic flavours in A cooking, and increasing customer demand for British grown produce, has resulted in a major investment by a leading UK supplier of fresh herbs in equipment from ULMA Packaging to help boost production.

Family-run business R&G Herbs is expanding rapidly due to the increasing popularity of fresh herbs. To keep pace with demand, the company invested in a customised Sienna bottom reel flowrapper from ULMA to pack a variety of herbs it supplies to supermarkets, major restaurants, wholesalers and foodservice customers.

R&G Herbs, which counts Waitrose and Ocado among its client base, specified a robust packaging solution that could accurately wrap different-sized packs of herbs, such as rosemary and chives, quickly with the minimum of downtime.

In a successful collaboration with R&G Herbs’ production team, the Sienna horizontal flowrapper has been supplied by ULMA with a Euro slot for bunched

herbs in a printed film pack. It has also been fitted with a Markem thermal coder and Herma labeller.

ULMA’s proven reliability and innovative technology was wellknown to R&G Herbs’ Production Manager, Jason Webb, who says the equipment is currently wrapping 65 packs of herbs per minute at its Woking site and has delivered several cost-efficiencies in a number of areas, including speed and reducing manual changeovers.

He adds: “We needed a flowrapping machine to help us keep pace with the high demand for our herbs. After comparing equipment suppliers I was sold on the quality of the machine from ULMA. The back-up service has also been excellent – I can’t fault them.”

Available in both flowrap and shrink wrap versions for loose, irregular shaped products in polypropylene or polyolefin films the Sienna is ideal for fresh produce.

It has a touch screen operation with multi-product memory which means that

changeovers can be made quickly and simply at the press of a button. The machine also benefits from ‘no product - no bag’ and ‘misplaced product detection’ systems, as well as working with clear and printed film.

The box motion type cross sealing station is provided with 400mm wide jaws.

The sealing head is equipped with an independent servo motor for a high level of flexibility and optimises the cycle time to produce a minimal pack length in the shortest time possible. J

Goliath Packaging Systems’ Strength is its Quality

oliath Packaging Systems, in business G since 2007, sources, supplies, installs & after-sales services a comprehensive range of end-of-line packaging, materials handling & industrial washing equipment to the Irish co-op and food sector with projects successfully delivered for Arrabawn, Dairygold, Lakeland Dairies, Hughes Mushrooms, Agritech, Hovis Bakery, Mulrine’s and Dawn Meats amongst others.

The Goliath Food product range consists of the following distinct items: * Liquid Filling Systems * Open Mouth, VFFS & Bulk Bag Filling Systems

* Shrink Wrapping, Flow Wrapping & LSealing * Cartoning * Case Erecting, Case Packing & Bag-inBox Systems * Manual & High Speed Labelling Systems * X-Ray / Metal Detection * Weighing Systems * Case Sealing * Conveying Systems * Pallet Inverting & Exchange (Fixed, Mobile & Automatic In-line) * Pallet Stacking / De-Stacking / Handling * Scissors Table & Vacuum Lifting

Systems * Materials Handling Systems (Reel / Drum Lifters & Product Manipulators) * Pallet Elevating Systems * Palletising Systems (Gantry, Articulated Arm & Layer) * Stretch Wrapping * Strapping Systems (Case & Pallet) * Washing Systems (Bottle, Jar, Box, Tray, Drum, Pallet, Keg & IBC etc) * AGV Transport.

Centrally located in Nenagh, County Tipperary, Goliath is less than two hours from all of major markets, while trained engineers maintain spare parts and service all installed equipment with annual service contracts (reactive / preventative) available as preferred.

To discuss your particular packaging equipment needs, please contact: George O’Leary, Director, Goliath Packaging Systems Ltd, Well Road, Nenagh, Co. Tipperary, Ireland. Tel/Fax 06737893/067-34794; Mobile 0871222816; E-mail info@goliath.ie; Web www.goliath.ie. J

FOOD & DRINK BUSINESS EUROPE, JUNE/JULY 2016

33

I CONFERENCE & EXHIBITION

Creating an Efficient and Sustainable Food & Beverage Manufacturing Industry Through Data he second annual Food and Drink IT T Summit will be held on 5th of July 2016 in the Motorcycle Museum, Birmingham.

The Food and Drink IT Summit is an annual gathering of the leading food and beverage companies interested in improving their business through data, IT, software etc. The theme of this year’s event is ‘Creating an Efficient and Sustainable Food & Beverage Manufacturing Industry Through Data’.

The 2016 Food and Drink IT Summit will bring together key stakeholders and regulatory bodies from food and beverage manufacturers, food retailers and food service companies, plus key suppliers of software, hardware, consultancy services etc that are pushing the limits in increasing the efficiencies of the UK food and beverage industry through the collection and intelligent use of data.

Over 400 delegates attended the inaugural 2015 event and double this number is expected at the 2016 event.

Smart Food Business The move towards a smart food business is accelerating. An increasing amount of data is available throughout the food factory and across the whole food chain. This availability of data and the means to analyse it and effect improvements is leading to increased efficiencies, reduced waste, lower costs, increasing productivity etc.

The speaker line up for the Conference is drawn from senior management throughout the food and drink industry who have delivered improved performance through the intelligent use of data to improve areas such as logistics and supply chain, traceability, quality & safety, production, human capital management, waste reduction, energy management etc. Speakers include: • Denis O’Brien, Director of Standards and Solutions at GS1, who is Chairman for the day; • Jonathan Tole, Business Solutions Director at Produce World Group; • James Holmes, Programme

Manager for Greggs’ business transformation programme (£25m investment); • Martin Forsyth of Bidvest 3665; • Ian Warne, Interim IT/Change Director at Directis; • John Giles, Divisional Director of Promar International; • Deepak Kumar, Business Lead – Analytics, Big Data and Information Management in Europe at Tata Consultancy Services; • Dr Christopher Brewster, Senior Lecturer in Information Technology in the Operations and Information Management Group, Aston Business School, Aston University, Birmingham; • David Bartley, Partner at Nutricalc; • Daniel Barton, Founding Partner of BluestoneX; • Lonan Byrne, Managing Director of Aspera Solutions; • Ammar F Al Bazi, PhD, Senior Lecturer of Business Information Systems at Coventry University; • Andrew Griffiths, Sustainability Manager at Nestle; • Nick Pennell, Co-founder and Chairman of Lavery Pennell; • Cheryl Robinson, KTP Associate and Sustainability Assistant for Asda Stores Ltd and the University of Leeds; • Mike James, President of Manufacturing Operations Management Institute and Chairman and CTO of ATS International; • Garry Corbet, Head of Continuous Improvement at Dawn Farm Foods.

Key topics will include: • Inventory management,

• • • • • • • • • • • • • • • • • • • • • • • • • •

Planning and scheduling, Data capture, Process control and automation, Sustainability, IT Infrastructure, Time management, RFID Labelling, Coding, Electronic Data Interchange, Logistics & Supply Chain, Recipe Formation, Traceability, Quality and Safety, Energy Reduction, Waste Reduction, Production Optimisation, Warehouse Management, Plant Management, Innovation, Lifecycle Engineering, Laboratory Information Management Systems, Customer Relationship Management, Human Capital Management, Business Intelligence, Business Transformation, Manufacturing Performance, Resource Planning.

Exhibition The Food and Drink IT Summit 2016 will also provide a forum for visitors to be able to meet with the leading suppliers of software, hardware and consultancy services that are helping food and beverage companies create a smarter and more efficient food business. In addition to hearing from an impressive line-up of speakers, delegates will also have the opportunity to network with the leading food and beverage manufacturers, retailers and food service companies in the UK and Europe.

For further information visit www.itfoodsummit.com. J

FOOD & DRINK BUSINESS EUROPE, JUNE/JULY 2016

35

I FUTURE FOOD FACTORY

Developing the Food Factory of the Future emand is growing in the food and beverage industry for technologies that can track product and production information D and share it across regions and throughout the value chain, including ingredients sourcing, preparation, processing, packaging, storage and distribution. Not only will this enhance traceability and food safety throughout the food and beverage industry value chain but it will also facilitate greater efficiency and flexibility.

Due to the digitalization of food and beverage production, automation is undergoing major changes, often referred to as the ‘fourth industrial revolution’ or ‘Industry 4.0’. While production systems within the food industry are currently controlled centrally, in the future, they will use ICT to communicate just like in a social network and organize the production by themselves across company boundaries. The food factory of the future will be intelligent and cross-linked.

In the new era of globalization, food and beverage producers operate manufacturing facilities located in different countries with a global supply chain. Therefore, building up a standardized and scalable production system is imperative for today’s corporate competitiveness. Smart factories are constantly emerging that use networking and intelligent technologies to integrate all the processes, from ingredients sourcing and manufacturing to distribution.

Intelligent Formulation Guarantees Safe Processes For example, in the area of recipe management, Sartorius Intec has recently introduced ProRecipe XT®, which allows users to implement an intelligently networked weighing and dosing solution.

The system covers the entire process sequence from job planning and recipe weighing to batch management and inventory control and all this with maximum transparency. The recipe process is fully documented and evaluated, which ensures seamless traceabili-

According to Schmersal Group, for the realisation of Industry 4.0 concepts, mobile robots that collaborate with humans are indispensable.

The innovative ProRecipe XT® recipe management system simplifies the monitoring, control and documentation of both manual and semiautomatic weighing and dosing processes.

ty from the finished product through to the raw materials used in both directions. This provides opportunities to reduce production times, save materials and minimise costs.

"Thanks to its intuitive operation and the comprehensive traceability of all products manufactured, ProRecipe XT® ensures a high level of process reliability and efficient usage of raw materials," says Marcel Pfnister, Product Manager at Sartorius Intec.

Users are actually guided step-by-step through the recipe to be created by the easy to understand user interface, which is also optimised for touchscreen operation. This and additional conveniences, such as data entry via barcode reader, ensure safe and efficient processes.

Full Integration of All Packaging AutoCoding Systems (ACS) is a global supplier of factory automation software and its solutions are likely to play a major role in the ‘food factory of the future’. AutoCoding Systems specialises in the management of data in connected devices and its software enables full integration of all packaging line devices, enabling polling of devices on a line to access data for various types of reporting.

“A key advancement in factory automation software in recent times has been in the evolution of connectivity technologies for hardware and software solutions, and the ubiquity of connected devices in everyday life. Everyone enjoys the ability to share files, applications and capabilities between their internet-enabled mobile devices, computers, and peripherals,” points out Dan Cartwright, Software Development Manager at AutoCoding Systems. “This has driven a movement towards an expectation of similar connected systems within the factory environment; at all infrastructural levels from database, to automation platform, to the devices on the factory floor.”

AutoCoding Systems has responded to and empowered this movement through the introduction of a suite of modular, flexible software products. The company’s product suite not only provides powerful and flexible control and reporting of production line devices, but provides end-users with the ability to connect and integrate existing devices and platforms via ubiquitous standard-

FOOD & DRINK BUSINESS EUROPE, JUNE/JULY 2016

37

The second annual Food and Drink IT Summit will be held on 5th of July in the Motorcycle Museum, Birmingham – see Page 35 in this issue.

ised technologies such as RESTful APIs (Application Program Interfaces). An AutoCoding solution consists of one or more modules from the software suite, which can either form a fullyfeatured automation solution, or an ability to provide connectivity and data exchange to the end-user’s incumbent systems and software.

Latest Research and Development One of AutoCoding Systems’ latest Research and Development outputs is its Driver Gateway product. This platform provides the ability to both parameterise, and obtain operating data from, a range of production line devices.

“Rather than having to write potentially complex and errorprone integration software to communicate with these devices from existing MES (Manufacturing Execution Systems) or other automation platforms, the ACS platform provides easy-to-use and standardised programming interfaces to communicate with the devices,” Dan Cartwright explains. “The result for the enduser is an integration platform with long-term robustness, efficiency, and cost benefits.”

Factory of the Future The AutoCoding Systems Software Development Manager envisages a ‘food factory of the future’ as one in which process and equipment efficiency is achieved through the seamless sharing of data throughout a connected factory infrastructure. He elaborates: “Important drivers for this movement will be both proactivity from device manufacturers in integrating standardised, network-connected communication protocols to their equipment. In cases where this level of standardisation is not intrinsic to the device, a software solution such as those provided

by AutoCoding can provide solutions to ‘enable’ such devices.”

fying six key themes that the industry would need to address in the coming years – People, Big Data, Technology, Collaboration, Value and Resilience. These themes set the agenda for the partnership’s next phase of research, which has uncovered five pathways and a number of key actions that will lead the food and drink industry towards its vision of sustainable manufacturing – see Page 47 in this issue.

“We found five key areas from our research that I believe will lead us to the future of manufacturing - Anticipating the future – sharing more information with customers, Providing nutrition – offering new services that deliver on a broader value, Sharing the benefits – engaging with society in product creation, Inspiring the next generation – integrating with educational organisations, and Joining forces – becoming agents of change,” explains Leendert den Hollander, vice president and general manager of Coca-Cola European Partners’ business in Great Britain.

Leendert den Hollander adds: “The research team identified the need to develop strong, meaningful connections across the full supply chain, from the very source of products through to the end-user.”

Human-Robot Collaboration Another research project, which is being supported by Schmersal Group, is examining human-robot collaboration and how they can work together in a closer and safer environment. Schmersal Group offers its customers the largest range of safety switching appliances and systems worldwide for the protection of human life and machines.

According to Schmersal Group, for the realisation of Industry 4.0 (Industrial Internet of Things) concepts, mobile robots that collaborate with humans are indispensable. If complicated protective gates are to be dispensed with, however, and the principle that humans and robots must always work in separate areas is to be waived, the demands on safety technology increase.

A project launched by the Bonn-Rhein-Sieg University in April 2016, which is to run for three years, is researching new technologies to this end: Optical sensors and special image processing algorithms are to be used here, among other things, to detect human skin and identify the silhouette of a human. In this way, industrial robots should be able to recognise if they get too close to a human and stop any dangerous movement in good time. J

Food and Drink IT Summit Reflecting current industry trends, the theme of the second annual Food and Drink IT Summit is ‘Creating an Efficient and Sustainable Food & Beverage Manufacturing Industry Through Data’. The Food and Drink IT Summit is an annual gathering of the leading food and beverage companies interested in improving their business through data, IT, software etc. The 2016 event will be held on 5th of July in the Motorcycle Museum, Birmingham – see Page 35 in this issue.

In Great Britain, Coca-Cola Enterprises, which is now part of the newly launched Coca-Cola European Partners, is a leader in the field of sustainable manufacturing. It has formed a new industry research partnership with Cranfield University entitled ‘Sustainable Manufacturing for the Future’.

Sustainable Manufacturing For the Future The partnership with Cranfield University began in March 2015, with a roundtable event, attended by leading academics and industry experts. This resulted in a first white paper identi-

In Great Britain, Coca-Cola Enterprises, which is now part of the newly launched Coca-Cola European Partners, has formed a new industry research partnership with Cranfield University entitled ‘Sustainable Manufacturing for the Future’.

FOOD & DRINK BUSINESS EUROPE, JUNE/JULY 2016

39

I FUTURE FOOD FACTORY

Smart Solutions From AutoCoding Systems utoCoding Systems has recogA nised that there is a growing requirement to communicate with and collect data from a wide range of devices, as well as interface to various business information systems to enable factories to work smarter.

As a global provider of automation solutions to factory production and packaging areas, AutoCoding Systems has developed a suite of modular software products to facilitate processes such as device integration, data collection and integrity, code deployment and packaging verification.

The entry level web-based AutoCoding product can be used to set-up and control packaging line devices, such as coders, barcode scanners and inspection equipment, irrespective of brand. The centralised application automatically deploys secure set-up and message data to one or more packaging line devices, thereby reducing downtime, as well as eliminating the risk of coding and

40

packaging errors. The resulting business benefits include increased speed and reliability of line set-up, reduced job changeover time, reduced risk of human error and the ability to manage complex packaging formats.

The AutoCoding suite of modules gives additional functionality and greater scope for the collection of data. For example, the Paperless Quality module automates both in-line and off-line routine quality checks.

FOOD & DRINK BUSINESS EUROPE, JUNE/JULY 2016

The AutoCoding line terminal can be configured to individual requirements creating various methods for capturing data which can then be used for reporting purposes. Details of all QA checks are consolidated into the AutoCoding audit log resulting in a reduction in the amount of physical paper records that have to be retained and subsequently stored The latest concept developed using the latest software engineering technologies is the AutoCoding IIoT Gateway. IIoT technology provides consistent mechanisms for cross-application and cross-device communication. This enables the collection of rich data and statistics from production line devices which previously could not easily participate in the movement towards a connected factory floor. The AutoCoding IIoT Gateway aims to reduce the cost and increase the effectiveness of integrating users, data and applications with data and equipment on the plant floor. J

I FUTURE FOOD FACTORY

Educating the Benefits of Automation to Food Manufacturers – As They Face Short Retail Contracts

By Paul Wilkinson, Business Development Manager of Pacepacker Services inning a large retail contract is a coup W for any food manufacturer. However, supermarket price wars and changing food presentations to gain and maintain the interest of consumers, means that many manufacturers are being squeezed out of the market.

Today, most manufacturers understand the efficiencies gained from automation.

Even so, many are still reluctant to invest in equipment for fear of not being unable to recoup their costs if the contract is terminated. Although the short-term nature of retailer contracts is a contributing factor to their reluctance to invest, other issues also come into play, including lack of technical knowledge, space constraints and the belief that systems are inflexible.

tangible asset, one that can be moved between lines to meet changing demands and new contracts.

We are all too familiar about how fast trends change, especially in the retail business. Yet, this shouldn’t deter food companies from exploring automation. Once the payload, reach and speed capacity has been determined it is relatively straightforward to re-programme a robot to perform another task. Similarly, if products are a different size then some changes may be required to the end of arm tooling or even replaced, but by no means is the robot redundant.

Tangible Asset Some robots can even be re-deployed into a completely different role within the business, for instance from pick and place to Flexibility palletising. Also, a robot is a tangible asset Switching from packing cakes to pork pies with a saleable value. So, worst case sceis simple with half a dozen manual workers, nario, the sale proceeds can be reinvested but what if you have invested in a robot to into an alternative business project. pack those cakes? The belief that robots and Likewise, space should not be an issue. automation won’t flex to changing packing There’s a vast range of robotic devices in needs is a common misconception shared different sizes, and the ability to customise by many customers. They need their sys- Cartesian systems using components and tems to not only boost efficiency but to be a linear drives at specified lengths is perfectly feasible. Whatever the manual operation is, a robotic provider should be able to provide an automated solution.

Re-programming a robot may sound daunting to many and put companies off investing. Any reputable supplier will work closely with all project stakeholders to ensure appropriate training and ongoing support is provided. Remote assistance can also be provided if With increased handling capabilities, flexibility and output, required so that office based automation can provide a solution for even the shortest of engineers can take control contracts. of the HMi screens and

Paul Wilkinson, Business Development Manager of Pacepacker Services.

help operators through the required steps or monitor what is happening through CCTV cameras.

Return on Investment For most, if not all customers, return on investment (ROI) figures can be the deal breaker. When looking to achieve ROI inside a year, manufacturers shouldn’t be swayed by price alone. A well-engineered solution will provide low cost of ownership for many years at a fraction of the cost of manual labour.

Pacepacker recently developed a new ROI calculator - a comparative tool - that quickly measures the real value that a business can realise when automating different aspects of a production line. So, even with short UK retail contracts, an appropriate automated solution can be developed and accomplish the desired payback. J

FOOD & DRINK BUSINESS EUROPE, JUNE/JULY 2016

41

I LEVEL & VOLUME MEASUREMENT

Measure the Smallest and the Tallest, With One Sensor

By Doug Anderson, Marketing Manager at VEGA Controls Ltd ith increasing demands for special editions and seasonal product variants in the food sector, there are more demands on process plant flexibility to produce these different formulations. A new solution for level and contents measurement is needed especially for control during processing. We are at the beginning of a technology revolution for level and volume measurement and control in the food and beverage industries.

As we see the introduction of the first contactless radar level sensors for liquids that operate at a 80 GHz frequency, these are similar frequency ranges to those seen in the automotive sector. It is worth production engineers in the food and beverage sectors to learn about some real benefits that can be exploited using this technology in the food processing and beverage sectors.

Contactless radar is known by many instrument and process control engineers for its immunity to temperature, pressure, viscosity, vapours or surface conditions.

However, previous devices with lower frequencies and larger antenna systems had restricted measuring range capability and limited performance on some processes.

Some sectors have also used guided wave radar devices, but these use probes protruding inside the vessel, which require contact all the way down the process measurement range - not always a very desirable solution in the food sector for cross

W

With a new, amazingly small antenna system and narrow focusing, the new 80Ghz contactless radar senssors are ideal for use in the smallest vessels, where equally small process connections are often neeeded in the food industry.

contamination issues and CIP. Compatible For All Sizes For Liquid or Bulk Solid

With a new, amazingly small antenna system and narrow focusing, the new 80Ghz contactless radar sensors are ideal for use in the smallest vessels, where equally small process connections are often needed in the food industry. However, there is also a long range capability with this narrow focusing too, enabling it to also work very well in tall, narrow vessels tens of meters high.

That applies not just for liquids, but bulk

solids too, with the already established 80GHz solids level sensors introduced almost two years ago for reliable powder and grain level measurement.

By using this higher 80GHz transmission frequency, the sensor sizes can be 3 times smaller. This enables much smaller process fittings, from only 20mm or 3â „4, a significant advantage in small vessels that may only be a few hundred millimetres high. Being able to use slightly larger connections offers very narrow beam angles that avoid agitators and obstructions, to clearly and reliably follow the liquid level, especially useful in larger, taller vessels with agitators, heating coils and mixers.

Increasing Capacity, Reducing Waste

This new innovation means level and volume of storage and processing vessels can be measured with much higher accuracy, unaffected by density change, both right up to the process fitting and down to the very bottom of the container.

Just as importantly, resistance to condensation and build up on the sensor face means even heavy splashing of viscous products like sugars, spreads and pastes don't block out the radar signal.

Condensation from process or cleaning, turbulence from mixers or even surface foam has little or no effect on the measurement.

80 GHz radar can be used effectively in

Figure 1: Narrow 80 GHz radar beam avoids internal obstructions and agitators completely to measure the liquid level reliably and accurately and various vessel sizes.

FOOD & DRINK BUSINESS EUROPE, JUNE/JULY 2016

This new innovation means level and volume of storage and processing vessels can be measured with muuch higher accuracy, unaffected by density change, both right up to the process fitting and down to the very bottom of the container.

43

Figure 2: Contactless radar with antenna fitting size of a Euro coin handles condensation and build up.

pressurised vessels of all sizes, with inert gases and clean in place systems - flush, hygienic sensor designs mean they clean efficiently too. Processes with mixers and agitation, rapid heating and cooling, condensation, even products with surface foam can also be measured reliably and accurately, with high resolution, down to the last drop. These capabilities are crucial for the food sector, because it maximises capacity and productivity - minimising waste, especially important in batch production with varying product types.

With this innovation, 80 GHz contactless radar devices look set to become the new standard in level measurement across a number of food and beverage industries that hadn’t considered the technology viable before. Their tight, narrow focusing, tolerance for process extremes and transducer size add up to a very versatile package in terms of both sensor installation and performance reliability. When you also include another new technology in encrypted wireless Bluetooth communication, which can be used for set up and operational management via a free App on smart phone, tablet or PC, they have the potential to provide the ultimate in time saving and productivity returns. J

Looking Through Vessel Walls

Since microwave based radar signals can pass right through plastic and glass containers or windows, (like they do in a domestic microwave) the sensor can even be mounted outside, above the tank itself in some applications. As a level control solution, it is especially interesting for containers like IBC food containers, GRP storage vessels, small plastic tanks for acid and caustic dosing systems, for example. This minimises contact with sensitive foodstuffs or hazardous chemicals, saving on time and disruption.

For example, as it can be mounted well above IBC’s or dosing tanks, when they are being changed over there are no time consuming disconnections and potential sensor damage. It facilitates the safety of personnel and better maintains the product and process hygiene, measuring level without penetrating the vessel at all.

In Summary

These devices are being introduced with a range of hygienic materials and process connections also offer the necessary process compatibility needed in the sector. The small dimensions of the sensors and availability with relevant aseptic process fittings (meeting FDA,3A and EHEDG requirements) mean that where existing process connections are available, the new sensors can be easily installed without costly production interruptions and vessel modifications.

44

FOOD & DRINK BUSINESS EUROPE, JUNE/JULY 2016

With this innovation, 80 GHz contactless radar devices look set to become the new standard in level measurement across a number of food and beverage industries that hadn’t considered the technology viable before.

New System Delivers Major Enhancements For Partner Logistics new Warehouse Management System A (WMS) has been successfully introduced at the Partner Logistics cold store in

very pleased with the successful outcome of our WMS implementation at Wisbech. The new system is highly-advanced and will play

into the future.”

The Wisbech warehouse is the second site to implement the new system, following a Wisbech following a four month implesuccessful ‘Go Live’ at Partner Logistics mentation project.

Gloucester earlier in the year. The next The new WMS, which is part of a sites to convert to the new system will group-wide ICT platform upgrade, aims be Leper in Belgium and Bergen op to standardise the software used across all Zoom in the Netherlands this Autumn, six Partner Logistics warehouses in order followed by Bodegraven and Waalwijk to improve flexibility, increase potential in 2017. synergy between warehousing and transPartner Logistics is a market leader in port and create opportunities to broaden Europe for the provision of state-ofthe service portfolio. the-art, highly automated warehousing Based on Microsoft Dynamics NAV, primarily for frozen foods. It operates the WMS has been developed alongside six facilities – two in the UK, three in the Netherlands and one in Belgium.

Windows and Microsoft products and Established in 1998, Partner Logistics incorporates the latest technology.

A new Warehouse Management System has been Extended logistics modules are develalso works innovatively with transport successfully implemented at Partner Logistics Wisbech. partners to provide an integrated supoped and maintained by Boltrics, who ply chain solution for clients that are specialists in developing software for cold stores. a vital role in ensuring Partner Logistics is include Lamb Weston, Birds Eye, Pinguin Peter Bryssinck, Implementation equipped to deal with the ever-changing and many other leading names in the frozen Manager at Partner Logistics, says: “We’re demands of the frozen food market well food industry. J

FOOD & DRINK BUSINESS EUROPE, JUNE/JULY 2016

45

I SOFT DRINKS

Coca-Cola European Partners is Launched Coca-Cola European Partners, the world’s largest independent Coca-Cola bottler based on net revenues, has commenced trading on the Stock Exchanges in New York, London, Amsterdam and Spain. he result of the merger of CocaCola Enterprises (CCE), Coca-Cola Iberian Partners (CCIP) and Germany-based Coca-Cola Erfrischungsgetranke (CCEG), Coca-Cola European Partners operates more than 50 bottling plants, employs approximately 25,000 people and generates volume sales of 2.5 billion unit cases.

The combined business achieved pro forma 2015 net sales of approximately Eur11 billion and pro forma 2015 EBITDA of approximately Eur1.8 billion. CocaCola European Partners will now serve a consumer population of over 300 million in 13 countries across Western Europe, including the four largest markets for nonalcoholic ready-to-drink beverages in the region – Germany, Spain, Great Britain and France.

Coca-Cola Enterprises’ shareholders own 48% of Coca-Cola European Partners with Coca-Cola Iberian Partners’ shareowners holding 34% and The Coca-Cola Company controlling the remaining 18%.

T

Outstanding Platform John Brock, formerly chairman and chief executive of Coca-Cola Enterprises and now chief executive of Coca-Cola European Partners, comments: “This is a very exciting time for Coca-Cola European Partners, as Europe continues to represent an outstanding platform for long-term, profitable growth. Coca-Cola European Partners has the portfolio, the customer relationships, and the innovation, flexibility, scale, and speed needed to capture this opportunity.”

Pictured (left to right): Muhtar Kent, chairman and chief executive of The Coca-Cola Company; Sol Daurella, chairman of Coca-Cola European Partners; and John Brock, chief executive of Coca-Cola European Partners.

He adds: “In addition, our people are among the best in the business and understand what it takes to win in Europe. All of this as we grow together with our customers, employees, and local communities, is in support of our ultimate goal: delivering increasing levels of shareowner value.”

Capturing Growth “As a new company, we will start with only a 29 percent market share in value across the region, so we see a lot of headroom,” points out Sol Daurella, who was executive chairwoman of Coca-Cola Iberian Partners and is now chairwoman of Coca-Cola European Partners. “We will have a 4,000-strong sales force that will make more than 12 million customer visits every year. So we see this as a great platform to capture growth through our local connections.

And our increased scale will drive efficiencies we can reinvest back into the business.”

She believes that the three bottling

partners bring complementary strengths to the enlarged business. “For example, the German bottler (CCEG) is way ahead when it comes to working with hard discounters. In Spain, we’re great at working with smaller customers through feet on the street and in our commercial approach.

And CCE is very good at supply chain management. We’re ready to build on these best practices, serve the market and serve our customers together – the people who sell Coke directly and those who help sell Coke – from day one,” she explains.

Integrating the three soft drinks partners is expected to result in improved efficiency and cost savings. “We are projecting between 315 and 340 million euros in synergies and cost efficiencies,” she says.

“We’ve already seen the first good examples of how we can standardize best practices in supply chain and procurement such as light-weighting our 1.5 litre PET bottles and improving our execution of in-store merchandising by building smaller product pallets.”

FOOD & DRINK BUSINESS EUROPE, JUNE/JULY 2016

47

Coca-Cola Enterprises (CCE) is the biggest of the three merged businesses. Encompassing 17 manufacturing sites across Europe, it operates with a local focus, manufacturing nearly 90% of its products in the markets in which they are consumed.

Global Headquarters CCE’s offices at Uxbridge in England which served as its Great Britain and European base has become the global headquarters for CocaCola European Partners. With its history as a hub for Coca-Cola bottling operations, and with Great Britain presenting one of the most developed markets for CocaCola’s portfolio of soft drinks in Europe, Uxbridge was the clear choice for the new company’s home.

Coca-Cola European Partners employs 4,000 people and operates six production sites across Great Britain from Sidcup in Kent to East Kilbride in Scotland.

Cola European Partners’ business in Great Britain, explains: “We found five key areas from our research that I believe will lead us to the future of manufacturing: Anticipating the future – sharing more information with customers, Providing nutrition – offering new services that deliver on a broader value, Sharing the benefits – engaging with society in product creation, Inspiring the next generation – integrating with educational organisations, and Joining forces – becoming agents of change.”

Leendert den Hollander elaborates: “We recognise the importance of partnerships in making progress towards common goals. This is an area where I believe we can achieve clear benefits and valuable synergies through resource sharing.

The research team identified the need to develop strong, meaningful connections across the full supply chain, from the very source of products through to the end-user.

We truly believe that new Coca-Cola European Partners will serve a consumer population of over innovation, solutions and 300 million in 13 countries across Western Europe. fresh approaches to how we Sustainability operate as an industry can be achieved by The newly combined business is expected more collaboration up, down and across to continue to maintain a sustainable local the supply chain. A key enabler for this will manufacturing model. This has been a fea- be the open sharing of ideas, data and best ture of the CCE’s approach in Great practices between companies and across Britain, where the company has formed an industries.” industry research partnership with Cranfield University entitled ‘Sustainable Fundamental Change Manufacturing for the Future’.

This sustainability vision and roadmap The initial collaboration with Cranfield offers a picture of what the ‘factory of the University identified six key themes that future’ may look like in Great Britain by industry would need to address in the com- 2050, presenting the challenges and opporing years – People, Big Data, Technology, tunities to be addressed in order to achieve Collaboration, Value and Resilience. These rapid and fundamental change. themes set the agenda for the partnership’s “To achieve this means ensuring that next phase of research which has uncovered throughout the development process we are five pathways and a number of key actions collaborating with each area of the busithat will lead the food and drink industry ness,” Leendert den Hollander adds. “The towards its vision of sustainable manufac- vision that we share for 2050 includes turing. being more directly connected to consumers. By allowing them to input into the Five Key Areas creation process we can ensure that their Leendert den Hollander, head of Coca- demands are met in the end product.”

Operational Investment Plan Taking into account the findings of the research, CocaCola European Partners has embarked on a £56 million operational investment plan in Great Britain, increasing total investment to £356 million over the last six years. The current investments, ranging from automation to water treatment, will help to accelerate the company’s journey towards sustainability in Great Britain.

Steve Adams, group director of supply chain operations in Great Britain, comments: “Our research with Cranfield University has revealed valuable insights on how sustainability will evolve across the food and drink supply chain. Identifying five key pathways and suggested actions to support the sustainable journey to 2050 and beyond, is helping us shape how we think about the future of our own business. We’re excited to already be putting these actions into practice.”

The projects currently being implemented across the business in Great Britain include a new £33 million Automated Storage and Retrieval System (ASRS) warehouse at the Sidcup site as well as a new £11 million line to support local production of Capri-Sun. At the Morpeth factory, £14 million is being invested to help build a new high speed, fully automated waterprocessing and bottling line. A new £2.3 million water treatment plant is being installed at the East Kilbride factory, while a new £3.5 million Pallet Flex system is being introduced at the Wakefield site to provide greater efficiencies.

Elsewhere in Europe, Coca-Cola European Partners recently invested Eur40 million in two new production lines in Dongen, Netherlands and Grigny, France. J

Leendert den Hollander, vice president and general manager of Coca-Cola European Partners GB.

FOOD & DRINK BUSINESS EUROPE, JUNE/JULY 2016

49

I CONVEYORS & END-OF-LINE TECHNOLOGY

Flexibility and Performance – The End of Line Marked ‘ACMI’ CMI project managed and installed at A the French based Coca-Cola group in Socx-Bergues, a completely automatic endof-line system to handle a number of different packaging solutions. Such a solution is only possible thanks to the flexibility and efficiency of the palletising and stretch wrapping system projected by ACMI.

advantage for all those customers such as the Coca-Cola group, who need to reduce to a minimum or better still eliminate the requirement of any operator intervention thus favor a highly automated system which guarantees a high level of line efficiency.

Palletising Group ACMI installed at the CCE factory a mixed type of palletising system, which allows the handling of both packs and trays with bulk bottles on the same machine. The machine, or better still the system focuses on the palletising robot system Condor P136. The machine is fed on one side by an automatic bulk bottle channeling system and on the other by the Twisterbox continuous layer Pallet with shrinkpacks. formation system. The bulk bottle channeling system is equipped with a pressureless system and special guides Twisterbox System which maintain the integrity of the product The Twisterbox continuous layer formabeing handled along with the label. Seeing tion system is one of the principle compothat the Condor robot is equipped with an nents of the ACMI end-of-line systems, automatic head changeover system, the for- and it represents the top of its product mat changeover times are extremely rapid range: speed, performance, flexibility, preciand simplified along with the function of sion and reduced maintenance are its points the operator. From the same touch-screen of strength. The system projected by panel the operator can manage both the ACMI, is one of a kind in its range, it is Twisterbox functions along with the format capable of handling with high efficiency changeover functions without any mechan- even small unstable packs (2x2 or 3x2 conical intervention. This type of operational figurations) without the need of any over function which characterises the packaging packing, which substantially reduces packsystems projected by ACMI, represents an aging costs.

Trays with bulk bottles.

50

Wrapping At the Socx-Bergues factory two innovative rotating table pallet stretch wrappers of the Rocket series were installed. These stretchwrappers have been constructed with SCARA robotic technology, a type of technology skillfully used by ACMI in the packaging sector which allowed excellent results to be obtained in terms of performance, maintenance and simplicity of use. The Rocket stretch wrapper works with a spool reel height of 1000 mm and is equipped with a hermetic “waterproof” system. The machine reaches very high speeds thanks to a completely electronic pre-stretching system which perfectly handles the elasticity of the film. This innovative system can achieve speeds of 400%, if the film consents it, guaranteeing excellent containment of the pallet thanks to the perfect handling of the plastic phase of the extensible material. In the Coca Cola factory the two pallet stretch wrappers absorb a production of 36.000 bottles per hour (at the filler) handling full pallets or half pallets with half trays in cartons. In order to guarantee the maximum productivity, both machines were equipped with an automatic pre-stretching group changeover system, which apart from simplifying the operators function also improves the overall efficiency of the line as it allows the machine to pass from one pre-stretching group to another in a completely automatic manner. J

Rocket pallet stretch wrapper.

FOOD & DRINK BUSINESS EUROPE, JUNE/JULY 2016

I CONVEYORS & END OF LINE TECHNOLOGY

Rexnord Introduces The New 1005 XLBP-Series MatTop® Chain he trend for packages in the food and beverage industry T towards the use of lighter and more delicate packaging materials is ongoing. This drives the need for new conveying solutions that ensure optimal pack handling with the lowest risk of damage to the packs. At the same time these new conveying solutions need to contribute to important sustainability goals, such as conveyor safety improvement and energy saving.

Rexnord is proud to introduce the Rexnord 1005 XLBP Series MatTop® accumulation chain for packs to address these needs.

Safety Conveyors equipped with traditional “LBP” (Low Backline Pressure) chains, can create a potential safety hazard at the transfers between conveyors, where the chain opens and closes, due to gaps that form between the rollers on the chain links. This forces OEM’s and end-users to install safety precautions in the packaging area, to ensure no workers can get their fingers or clothes trapped between the chain and conveyor at any time. The Rexnord 1005 XLBP - Series Chain has been designed to optimize the safety of the conveyor system, by reducing the gaps between the rollers by 50% at the transfers. The rollers are made in a bright lime-green colour, to increase the visibility of the moving parts on the conveyor.

Protection of the Packs A complaint often heard at end-users, is that many plastic rollers on LBP conveyor chains do not rotate easily or even get stuck over time, which can cause a dramatic increase of backline pressure on the packs during accumulation. As a result, packs get damaged and the energy consumption of the drive motors will go up, as will the Total Cost of Ownership of the conveyor line. The Rexnord 1005 XLBP - Series Chain offers a solution to these issues: the rollers combine a 30% lighter rotation on the shaft, with less chance for contamination to end up in the rollers or between the rollers and the chain module. This

The Rexnord 1005 XLBP - Series Chain has been designed to optimize the safety of the conveyor m, by reducing the gaps between the rollers system by 50% at the transfers. The rollers are made in a brightt lime-green colour, to increase the visibility of the moving parts on the conveyor.

The Rexnord 1005 XLBP - Series MatTop Chain is the latest addition to the Rexnord portfolio and has all the features to set the new standard for LBP (“Low Backline Pressure”) conveyor chains for the coming years.

ensures the lowest backline pressure on the packs and minimal energy consumption of the conveyor over time.

Lower Energy Consumption Most end-users have a sustainability target to reduce energy consumption in all areas in their plants. In the packaging area it is not uncommon to have a great number of conveyor drives, since the packs have to travel a long distance from the packers to the palletizers. The power consumed by each conveyor is determined by the total weight of the chain plus the packs, multiplied by the friction factors and the speed. Since the weight of the packs and the speed is a given, Rexnord 1005 XLBP - Series Chain has a reduced chain weight of 40% compared to traditional modular LBP chains. In combination with the 30% lower friction between the packs and the chain during accumulation, this will translate into direct energy savings on each drive motor. In case line control permits, it is even possible to reduce the total number of drives required, since the conveyor lengths can be extended.

Innovative Leader Rexnord holds an unmatched track record of innovative conveying solutions for the food and beverage industry that have defined the new industry standards since 1938. Starting with the first metal TableTop® chains to engineered plastics to magnetic corner tracks (Magnetflex®). The Rexnord 1005 XLBP Series MatTop Chain is the latest addition to the Rexnord portfolio and has all the features to set the new standard for LBP (“Low Backline Pressure”) conveyor chains for the coming years.

For more information, please contact Rexnord at +31 174 445 111 or visit www.rexnordflattop.com. J

FOOD & DRINK BUSINESS EUROPE, JUNE/JULY 2016

51

I MEAT & POULTRY

Innovation Drives Linden Foods A strong focus on innovation in processing, packaging, new product development and throughout its supply chain is helping Linden Foods to maintain its steady expansion as the Northern Ireland-based meat processor continues to win new business in both domestic and international markets. inden Foods is a market leader within the Northern Ireland and UK fresh meat processing industry, sourcing and processing top quality beef and lamb. Operating from a state-ofthe-art processing, packing and product development facility at Dungannon, Linden Foods currently services a wide range of retail multiples, convenience food manufacturers and the wider meat packing industry in the UK, Europe and further afield.

The company is part of the Linden Food Group, which also incorporates Slaney Foods and Irish Country Meats – two meat processors based in the Republic of Ireland (see Panel).

L

Pictured (left to right): Gerry Maguire, chief executive of Linden Foods; Northern Ireland Enterprise, Trade and Investment Minister Jonathan Bell; and Elaine Willis, head of Business Development & Innovation at Linden Foods.

Linden Foods is owned by Fane Valley Co-operative.

Headquartered in Armagh City, Fane Valley Co-operative is one of Ireland’s most progressive agri-food businesses, with interests in red meat, porridge oats and breakfast cereals, feed compounding, agricultural supplies and renewable energy. Established in 1903, Fane Valley Co-operative remains 100% farmer owned by its 1800 shareholders.

“Profiling our Turf & Clover range at Anuga was tremendously successful for us and gave us an unrivalled platform to strengthen Linden’s worldwide reputation for our finest Irish meat cuts,” explains Gerry Maguire, managing director of Linden Foods. “Our customers appreciate our Fane Valley Co-operative roots and our 100 year history of supplying for and to the farmer.”

He adds: “After a challenging couple of years in the sector our sales outside the UK have stayed relatively stable at £42 million for 2015 complemented by new export contracts to countries such as Germany, The Netherlands, France, Denmark and Finland. We have high hopes for Turf and Clover internationally and our sales team have set targets for entering new markets for the forthcoming years, with customers from Dubai, Malta and Romania all extremely interested in Turf and Clover.”

Innovation Innovation is at the heart of the business and Linden Foods continually invests in its facilities, people, processes and new technologies to maintain a competitive edge. Linden Foods’ modern retail packing facility at Dungannon is specially designed to handle added value products, targeting high quality, convenience style food products. A distinguishing feature of the plant is that it can handle all proteins (beef, lamb, veal, pork, chicken, gammon and turkey) to provide as wide a market as possible.

Linden Foods is dedicated to innovation through new technology to deliver new business. For example, the company has purchased a new automatic kebab-making machine, the first of its kind in the UK, to ensure that it can deliver the volume required during peak season and to improve overall product quality. The new machine has enabled Linden Foods to introduce six new kebab lines for the summer season.

Linden Foods was the first company in the UK and Ireland to develop a system to produce Rose Veal in Ireland. With a devel-

Steady Growth Linden Foods has exhibited steady growth in recent times with turnover rising from £140 million in 2011 to £220 million in 2014. Employment has grown from 648 people to over 1,000 during the same period.

Having recently launched its new premium brand of Turf & Clover products, Linden Foods is expanding into new international markets as part of its strategy to double export sales. The Dungannon-based company introduced its new brand portfolio of beef, lamb, poultry and pork meats to trade buyers at Anuga 2015 and is now winning new business across Europe.

FOOD & DRINK BUSINESS EUROPE, JUNE/JULY 2016

53

Proposed Alliance With ABP Food Group The Linden Food Group recently announced details of a proposed restructuring of its Slaney Foods business in the Republic of Ireland, resulting in the creation of a new partnership with ABP Food Group, one of Europe’s leading privately owned agribusiness companies and the largest beef processor in Ireland and the UK. Slaney Foods comprises the Slaney Foods International beef business and the sheepmeat specialist Irish Country meats (ICM).

Established in 1992, ICM is the largest sheepmeat processor on the island of Ireland, with state-of-the-art production facilities in Camolin in County Wexford and Navan, County Meath. In addition to being the market leader in Ireland, ICM also supplies to an extensive range of customers, including leading retailers and food service providers, in over 30 countries worldwide including the UK, France, Germany, the Benelux region, Scandinavia and Switzerland.

Based at Bunclody in County Wexford, Slaney Foods International accounts for an estimated 6% of the national cattle kill while ICM processes about 40% of the Irish sheep kill.

Slaney Foods is currently owned jointly by the Allen family and Linden Foods in Northern Ireland. As part of the re-organisation, the Allen Family will retire from the red meat processing sector after more than 50 years to concentrate on their expanding wider business interests.

ABP Food Group will acquire the Allen family’s shareholding in Slaney Foods for an undisclosed sum to form a 50:50 joint venture with Linden/Fane Valley. The new partnership will not impact on the day-to-day operations of either Slaney or ICM with business to continue as usual at all sites. Fane Valley’s involvement in Linden Foods in the UK is unaffected by the proposed changes.

“The combined expertise and resources of Slaney and ABP will grow the businesses, deliver significant benefits and contribute positively to the

opment programme, which lasted four years starting with ten calves, Linden Foods now processes 200 Rose Veal calves a week, producing product for Marks & Spencer, along with Michelin Star restaurants in the UK, Sweden, Jersey and elsewhere.

Linden Foods has also installed Streamline butchery systems within its boning hall to provide the opportunity and capability to offer customers a more differentiated product than that supplied by competitors. This has allowed the speciality butchery element of Linden Foods’ business to grow from 130 tonnes a week to over 200 tonnes per week.

Linden Foods has also invested in a new piece of X-ray technology for processing beef trim, which the company pioneered with Marel Food Systems. The aim of the X-ray was to improve the processing speed of beef trim going through the boning hall and to produce a higher quality product than its competitors. Due to the guarantee that the beef trim is free from any bone chips and the

sustainability of our primary production,” says Trevor Lockhart, chairman of Linden Food Group.

The proposed joint venture has been referred to the EU competition authority. If successful, the deal will herald ABP Food Group’s return to sheep slaughtering in the Republic of Ireland after an absence of many years.

Paul Finnerty, chief executive of ABP Food Group, comments: “There has been considerable speculation about this joint venture; however consolidation within the industry is absolutely necessary in order for our sector to remain competitive. This consolidation trend is the result of an increasingly challenging international background where we compete against global players, many of whom have processing capacity multiple times that of the entire Irish industry.”

exact control of the fat level, Linden Foods has gained a significant point of difference compared to the rest of the market-place that has allowed it to charge a premium.

New Product Development Linden Foods has a strong track record for new product development. The innovative company is continually developing new products for the UK retail market, food service and food manufacture sectors. The Innovation & New Product Development team’s achievements have been highly recommended and continue to deliver new business though innovation, with approximately 50 new products a year.

Elaine Willis, head of Innovation & New Product Development, has been central to Linden Foods’ success in the marketplace. “We work hard to stay on top of social trends, and we work very closely with all of our customers to make sure that we’re producing and

FOOD & DRINK BUSINESS EUROPE, JUNE/JULY 2016

55

supplying the right range of added value products for their shelves and for the end customer to purchase. It means constant research and a sharp eye on the wider consumer marketplace. Even factors like the weather, where people are going on holiday and what TV cookery programmes they watch can have an impact on what they want to buy.”

point of sale, through batch, right back to date of kill, maturation window and animal eligibility. “We want to ensure that our supply chain is transparent and 100% traceable. Using DNA verification is a very reliable way to achieve this,” points out Gerry Maguire.

Sustainability Linden Foods is committed to operating a sustainable business model which is central to all strategic decision making.

Launched in 2014, GreenTrack is the company’s sustainability strategy for all aspects of its business.

“Sustainability is about doing business better,” says Gerry Maguire.

“Linden Foods is committed to operating in a responsible and sustainable way in everything we do. We have always known the importance of having in place sustainable farming practices, of minimizing waste, of ensuring our colleagues are valued and rewarded with a safe and challenging workplace with opportunities to train further and develop.” J

Supply Chain Linden Foods sources its cattle and lambs from over 2,000 livestock farmers each year to meet the growing demand from its wide range of food service, industrial and retail customers.

Linden Foods is committed to 100% DNA traceability of all beef slaughtered.

This enhanced traceability capability enables the company to effectively monitor its beef supply chain.

The DNA TraceBack® technology being used is a scientifically proven traceability system which enables meat processors, grocery retailers and food service businesses to accurately trace the exact source of meat products from

I BRAND FOOTPRINT

Kantar Worldpanel Reveals the UK’s Most Chosen Brands n its fourth annual barometer of the nation’s most chosen FMCG Itinuing brands, Kantar Worldpanel has revealed that British brands are conto outperform their foreign counterparts as six home-grown favourites make up the UK top ten.

The 2016 Brand Footprint ranking measures which brands are being bought by the most consumers, the most often. Bolton-based Warburtons leads the ranking – its products have been chosen by 85.4% of the population, on average 26.7 times a year, meaning it was picked from supermarket shelves 611 million times during the course of the year. The bread maker has continued to develop new products to widen its appeal beyond standard wrapped loaves and launches including its Thin Bagels range contributing to a 6% increase in consumers’ purchase frequency.

While Heinz remains in second place it declined in both frequency and penetration this year. The brand is currently bought by 89.9% of the population 16.0 times a year but its position in Britain Bolton-based Warburtons leads the ranking. remains ahead of total Europe, where it sits in fourth place.

In third place with a penetration of 88.8% and purchased an average of 14.8 times a year, McVitie’s increased its popularity with shoppers particularly through its flagship chocolate digestives – a strong performance at a time when sales in the overall biscuit category are down.

56

Hovis is this year’s fourth most chosen brand and the third British brand on the list, having managed to increase both penetration and frequency this year with its ‘Good Inside’ range tapping into the increasing trend for health-conscious consumption. Kingsmill follows it in fifth place with 74.6% of the population buying it 14.3 times a year.

Soft drinks giant Coca Cola retains first place in the worldwide Brand Footprint ranking this year. However, the enduring popularity of domestic brands has led it to slip into tenth place in the British table, with penetration down by 2.9 percentage points this year.

Only Heinz and Coca Cola appear in both the British and European top 10, though the most chosen products across the continent will not be unfamiliar to most consumers – Kinder, Knorr, Activia and Dr Oetker all feature.

Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel, explains: “British brands remain an important part of our shopper repertoire and it’s encouraging to see so many continue to succeed in a world of multinational conglomerates. This doesn’t just extend to the overall top ten – looking at sector specific rankings we see familiar names including Robinsons, PG Tips, Radox and Andrex coming in Heinz remains in second ahead of their global competitors.” J place.

FOOD & DRINK BUSINESS EUROPE, JUNE/JULY 2016

CONFERENCE & EXHIBITION CITYWEST, DUBLIN

|

SEPTEMBER 14TH 2016

Fine Food Fair 2016

I R E L A N D

14th September

•

Citywest, Dublin

The All Ireland Conference & Exhibition for Food Industry Professionals

www.fooddrinkevent.com