Food & drink october issue 2014

October 2014

William Grant & Sons opens â‚Ź35 million Irish whiskey distillery

Food & Drink Business Website:

www.fdbusiness.com

C o n t e n t s

- 3 M ERGERS & A CQUISITIONS

- 45 S OFT D RINKS

Coverage of British and international deals.

British sales of sports and energy drinks surpass £1.5 billion.

- 7 C OVER S TORY

William Grant & Sons opens €35 million Irish whiskey distillery.

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P AGE 13

Jean-François van Boxmeer, Chairman& CEO, Heineken.

Kate Allum, CEO, First Milk.

R EGULARS Bottling & Packaging . . . . . . . . . . . . . . . . 12

Energy & Environment. . . . . . . . . . . . . 14-23

Processing & Manufacturing . . . . . . . . 27-31

- 13 D AIRY

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Dalton Philips, CEO, Morrisons.

Quality & Safety. . . . . . . . . . . . . . . . . . . . 33

Adding value at First Milk.

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Siobhán Talbot, MD, Glanbia.

Materials Handling . . . . . . . . . . . . . . . . . . 37

Storage & Logistics . . . . . . . . . . . . . . 39-43

- 11 I NDUSTRY O UTLOOK UK food and drinks producers prepare for a tough year ahead.

ECSLA – The voice of the European cold storage and logistics indistry . . . . . . . . . . . . . . . . . . . . . . . . . . . . .39.

PAGE 35

Materials & Ingredients . . . . . . . . . . 47 & 48

Philippe Haspeslagh, Chairman, Ardo.

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

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- 25 G ROCERY M ARKET Record low for UK grocery market growth as inflation disappears.

Cees ‘t Hart, CEO, Royal FrieslandCampina.

Enlarged Ardo has firm foundation for future growth.

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!

Morrisons to price match the Discounters.

- 35 F ROZEN F OODS

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

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Stella David, CEO, William Grant & Sons.

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FOOD & DRINK BUSINESS EUROPE, OCTOBER 2014

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M E E R R G G E E R R S S M Heineken Receives Approach From SABMiller In response to recent press speculation, Heineken has confirmed that it been approached by SABMiller regarding a potential acquisition of the Dutch brewing giant. However, following consultation with its majority shareholder, Heineken has concluded that SABMiller’s proposal is non-actionable.

The Heineken family has informed SABMiller of its intention to preserve the heritage and identity of Heineken as an independent company.

The Heineken family and Heineken’s management are confident that the company will continue to deliver growth and shareholder value.

Jean-François van Boxmeer, chairman and chief executive of Heineken.

Arla Foods Makes Nonbinding Bid For Egyptian Dairy Arla Foods is making a nonbinding bid for a majority stake in Arab Dairy Products Company, a listed company based near Cairo in Egypt. If successful, the deal will make Arla one of the top five or six players in the Egyptian dairy sector.

Arab Dairy has a strong position in both the retail sector and food service, which ties in well with Arla’s focus on these particular sales channels. The acquisition would give Arla a market share of 1315% in the cheese categories.

Arab Dairy sold 43,000 tonnes of dairy products in 2013 and is ranked in the top four in several of the main cat-

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

egories, primarily feta-like cheese, processed cheese and yellow cheese. It has a production capacity 80,000 tonnes at its modernised facility 50 km outside Cairo – with land for possible extension.

Glanbia Acquires Sports Nutrition Brand Glanbia, the global performance nutrition and ingredients group, has agreed to acquire The Isopure Company for $153 million (Eur120 million) in cash. Isopure is a USbased provider of premium branded sports nutrition products. The business focuses on powders and ready-to-drink (RTD) formats, primarily through the specialty, internet and direct distribution channels.

Isopure generated net revenues of $74.6 million for the twelve month period to the end of July. This represents a CAGR of 20% for the period from end December 2011 to end July 2014.

Isopure's premium brand complements the portfolio of Glanbia's Global Performance Nutrition (GPN) business and the acquisition further consolidates GPN's market leading position. The acquisition is expected to be earnings accretive from 2015 and will be

Siobhán Talbot, group managing director of Glanbia.

funded from Glanbia's existing debt facilities.

Green Light For Acquisition of WILD Companies by Archer-Daniels-Midland Company The European Commission has approved the acquisition of WILD Flavors and the related company WILD Dairy Ing-redients (WDI) by the Archer-Daniels-Midland Company, the US-based agricultural commodity trader and processor. WILD Flavors, which is headquartered in Switzerland, manufactures flavour systems used in the food and drink industries.

WDI produces fruit-based preparations for use in dairy products, ice cream and bakery products.

Archer Daniels Midland Company is acquiring WILD Flavors in an all-cash deal valued at Eur2.3 billion. WILD Flavors has more than 3,000 customers worldwide and estimated 2014 net revenues of about Eur1 billion.

Acquisition of Drambuie Whisky Liqueur Business William Grant & Sons has acquired the Drambuie Liqueur Company which owns the Drambuie whisky liqueur brand. Drambuie is a natural addition to William Grant & Sons’ portfolio of premium consumer led brands which include Glenfiddich and The Balvenie single malt Scotch whiskies, Tullamore DEW Irish whiskey, Grant’s blended Scotch whisky, Hendrick’s gin and Sailor Jerry spiced rum.

Drambuie is a unique blend of aged Scotch whisky, spices and heather honey which boasts a glorious history going

FOOD & DRINK BUSINESS EUROPE, OCTOBER 2014

back to 1745. An iconic brand and bartender’s favourite, it rose to fame as the key ingredient of the Rusty Nail, the classic cocktail favoured by the Rat Pack in the 1950s.

Irish Dairy Board Acquires Spanish Cheese Plant The Irish Dairy Board has acquired Luxtor, a Spanish pizza cheese and cheese blends plant which is a subsidiary of Telepizza, the fifth largest pizza chain in the world. The deal includes Luxtor’s long term contract for the supply of cheese to Telepizza. The acquisition for an undisclosed sum was made via the newly established business, Irish Dairy Board Espana.

The acquisition strengthens IDB’s position as a global provider of cheese to the quick service restaurant (QSR) and food service sectors and complements similar investments made in US and UK customised cheese solution businesses. It will also provide an immediate route to market for Irish dairy products and opens up further opportunities for Irish dairy products post milk quota removal in 2015.

The deal is in-line with IDB’s growth strategy to invest in milk deficit regions.

The IDB has annualised sales of over Eur2 billion and is responsible for about 60% of Ireland’s dairy exports to over 100 countries.

Parmalat to Become Second Largest Dairy Company in Brazil Parmalat is acquiring the dairy 3

M E E R R G G E E R R S S M business of Brazilian food group BRF for R$1.8 billion (Eur610 million). Incorporating 11 plants, BRF’s dairy division had 2013 pro forma revenues of R$2.6 billion (Eur880 million). The transaction is subject to approval by the regulatory authorities.

Parmalat only recently acquired the UHT milk and cheese manufacturing facilities along with certain brands of Brazilian dairy business Lácteos do Brasil for R$250 million (Eur83 million).

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

mately one million. The deal is expected to increase Eden’s annual turnover by about 30%, from over Eur280 million to approximately Eur370 million, and strengthens its brand within the European water and coffee market.

The acquisition reflects Eden Springs’ confidence in the present and future growth of the European water and coffee market following a period of contraction during the recession. The company believes now is the time to harness the opportunity to expand its offerings of both water and coffee to a larger potential client base in Europe.

Constellation Brands Completes Tequila Acquisition Eden Springs Acquires Five Water Cooler Businesses From Nestlé Waters Direct Eden Springs, a leading provider of office water and coffee solutions in Europe, has confirmed the acquisition of five water cooler businesses, for an undisclosed sum, from Nestlé Waters Direct (NWD), a division of Nestlé Waters.

The deal involves the acquisition of NWD’s water cooler activities in five European countries.

Already servicing offices with water and/or coffee across 15 countries, this acquisition provides the Swiss-headquartered Eden Springs with important new markets in Germany, Russia and Portugal, and enhanced positions in Poland and the Netherlands. The NWD acquisition will increase Eden’s installed client base from over 650,000 to approxi-

Constellation Brands has completed the acquisition of the Casa Noble tequila brand. The transaction includes the Casa Noble trademark and inventories. Terms of the purchase were not disclosed. Casa Noble super premium tequila is a high quality brand that has posted consistent, double-digit growth.

Constellation Brands has operations in the US, Canada, Mexico, New Zealand and Italy. It is the world's leader in premium wine selling brands including Robert Mondavi, Clos du Bois, Kim Crawford, Rex Goliath, Mark West, Franciscan Estate, Ruffino and Jackson-Triggs. Constellation is also the number three beer company in the US with imported brands including Corona Extra, Corona Light, Modelo Especial, Negra Modelo and Pacifico. The company's premium spirits brands include SVEDKA vodka and Black Velvet Canadian whisky.

Cargill to Expand its Chocolate Footprint in North America and Europe Cargill has agreed to purchase

The production facility in Abidjan processes local fresh milk and milk powder into sweetened condensed milk and evaporated milk which are sold on the local market under the brand name ‘Pearl’.

Archer-Daniels-Midland Company’s global chocolate business for $440 million. The acquisition is an excellent fit with Cargill’s existing chocolate business. The transaction includes ADM’s three North American chocolate plants, located in Milwaukee, Hazleton, and Georgetown, and three in Europe – at Liverpool (UK), Manage (Belgium) and Mannheim (Germany). These new facilities will extend and complement Cargill’s existing chocolate footprint across North America, Europe, Asia and Brazil, and increase production capacity, particularly in North America.

Cargill’s product portfolio will also add ADM’s Ambrosia, Merckens and Schokinag brands. Upon completion Cargill will gain approximately 700 new employees. The combined business will be able to offer enhanced capabilities and broader product ranges to support the long-term needs of the chocolate market. There will also be real benefit to customers’ final products through access to Cargill’s extensive application capability and deep understanding and experience of texturizers, oils, fats and sweeteners.

FrieslandCampina to Acquire Dairy Business in Côte d’Ivoire Royal FrieslandCampina is acquiring Olam International’s dairy business and its dairy production facility in Côte d’Ivoire. The acquisition will increase the presence of FrieslandCampina in the West African country, where it is already marketing its premium brand Bonnet Rouge. The production facility is located in Abidjan, the primary economic center of Côte d’Ivoire.

FOOD & DRINK BUSINESS EUROPE, OCTOBER 2014

Cees ‘t Hart, chief executive of Royal FrieslandCampina.

Heineken Disposes of Mexican Packaging Operations Heineken has agreed to sell its Mexican packaging business Empaque to Crown Holdings in a deal worth $1.225 billion.

The transaction is expected to close by the end of the year.

Divesting the Empaque packaging operations will allow Heineken to focus its resources fully on brewing, marketing and selling its beer brands. In 2013 Empaque generated revenue of Eur495 million ($660 million), mostly intercompany, and EBITDA of Eur96 million. Following the divestment, Empaque will remain a key strategic supplier to Cuauhtemoc Moctezuma, Heineken's wholly owned subsidiary in Mexico, through long-term supply contracts.

Heineken expects to reach its target net debt/EBITDA (beia) ratio of below 2.5x by the end of 2014. The proceeds of this divestment will provide further financial flexibility.

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COVER STORY

William Grant & Sons Opens €35 Million Irish Whiskey Distillery William Grant & Sons, the independent family-owned Scottish distiller, has opened a new Irish whiskey distillery at Tullamore in Ireland to support its continued growth in this fast expanding drinks category.

T

he Eur35 million investment will meet the long-term production demands for Tullamore DEW, the world’s second largest Irish whiskey brand, which has seen global sales double to more than 850,000 (9L) cases since 2005. Tullamore DEW was acquired as part of William Grant’s Eur300 million acquisition of the spirits and liqueurs business of Irish and UK cider maker C&C Group in 2010. The Scottish group subsequently sold the liqueurs business to Campari of Italy for Eur128 million. Entering the Irish whiskey market with the acquisition of Tullamore DEW is in line with William Grant & Sons’ strategy of developing the nonScotch element of its business.

Located on a 58 acre site in Clonminch on the outskirts of Tullamore, the new distillery is capable of producing 1.84 Mla of triple distilled pot still and malt whiskeys annually - the equivalent of 1.5 million cases of Tullamore DEW. Tullamore DEW's award-winning range includes Stella David, chief executive of William Grant & Tullamore DEW Sons, with fifth generation Grant family member Original, Tullamore Peter Gordon at the opening of the new Tullamore DEW Phoenix, TullDistillery. amore DEW 12 Year Old Special Reserve and Tullamore DEW 10 Year Old Single Malt.

The Tullamore Distillery is the first new distillery to be constructed on a greenfield site in Ireland in over 100 years and marks the return of whiskey production to the town of Tullamore 60 years after the original distillery closed.

Securing the Future “This new facility will secure our future production demands for the rest of the century as Irish whiskey embarks on its most exciting chapter yet,” says Stella David, chief executive of William Grant & Sons. “Distilling began in Tullamore 185 years ago and this is a significant day for both the town and Tullamore DEW as the opportunities now open to the

category are unprecedented. We are committed to Tullamore DEW and are focused on building the brand and investing for the long-term.”

Indeed, the opening of the new distillery, following two years of construction, is one of the largest projects ever undertaken by William Grant & Sons.

The Tullamore Distillery has been designed to combine William Grant and Sons’ 127 years of distilling knowledge and expertise with world The distillery features hand crafted copper stills, leading innovation and designed to resemble the original stills from the technology. The dis- old Tullamore distillery. tillery features four hand crafted copper stills, designed to resemble the original stills from the old Tullamore distillery, six brew house fermenters each with a 34,000 litre capacity and warehouse storage for 100,000 casks The construction project was led by William Grant & Sons’ head engineer, John Stevenson, with more than 1,200 specialist distillery engineers and construction workers spending a combined 475,000 working days to complete the build on-schedule and on-budget.

In addition to Tullamore DEW, the William Grant & Sons’ brands portfolio encompasses some of the world’s leading brands of Scotch whisky, including Glenfiddich and The Balvenie single malt Scotch whiskies and Grants, the world’s third largest blended Scotch, as well as Hendrick’s gin and Sailor Jerry spiced rum.

Heart of the Distillery At the heart of the new distillery is the custom-made spirit safe. As part of the distillation process, the master distillers apply their skill and specialist knowledge through the spirit safe to identify the middle cut, or ‘heart’ of the spirit before filling it into casks for maturation. It allows the spirit to be fully analysed by the distiller without compromising the integrity of the distilling process. Only the finest ‘cut’ of the spirit is used, with the first and the last cut, referred to as the ‘top and tail’, retained and added to the next distillation.

FOOD & DRINK BUSINESS EUROPE, OCTOBER 2014

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Tullamore Distillery’s spirit safe was made by the Forsyth Group, based at Rothes in Moray, Scotland. The 10 cu m glass and polished brass spirit safe is uniquely designed in a triangular shape, reflecting Tullamore DEW’s complex triple-distilled, triple blend of all three types of Irish whiskey.

Process leader, Denise Devenny, who heads production operations at the new distillery, explains: “The spirit safe is the most important element in the distillation process and is used to select the finest cut of spirits. There is no better sight than seeing pure spirit washing around the mouth of the collection bowl and disappearing to be matured in casks knowing that it will only re-appear many years later to be enjoyed by generations of whiskey connoisseurs.”

“Tullamore DEW’s success is built on its resilience, optimism and progress - attributes that have certainly led us to the opening of Tullamore Distillery,” comments Caspar MacRae, global brand director for Tullamore DEW. “This development has been met with great anticipation in our markets around the world - with consumers in Central Europe, the Nordics, North America and emerging markets like South Africa and Russia keenly following the success of Tullamore DEW and Irish whiskey.”

rent projects move forward. Last year, our companies exported 6.2 million 9-litre cases worldwide; we expect that number to double to 12 million cases by 2020 and double again to 24 million cases by 2030.”

In terms of global scale, Irish whiskey’s annual sales of about 6 million cases are paltry compared to the 90 million cases for Scotch whisky.

“Irish whiskey is dwarfed by Scotch but there is no good reason for that,” points out Stella David. “Irish whiskey The 10 cu m glass and polished brass spirit safe is globally is really an uniquely designed in a triangular shape. undervalued category.

It’s so small versus its potential.”

Irish Whiskey Renaissance Irish whiskey is currently the fastest growing sector within the global spirits market and is set for sustained sales expansion, as the industry continues to successfully recruit a new generation of £1 Billion Business consumers. This inter- In addition to Tullamore DEW, the William Grant & Sons’ national ‘renaissance’ brands portfolio encompasses some of the world’s leading brands of Irish whiskey has of Scotch whisky, including Glenfiddich and The Balvenie single been headed by Jame- malt Scotch whiskies and Grants, the world’s third largest blended son, Ireland’s top sell- Scotch, as well as Hendrick’s gin and Sailor Jerry spiced rum. ing whiskey brand, Founded by William Grant in 1887, William Grant & Sons has which has now remained an independent family-owned distiller. It is now a £1 The Tullamore Distillery is the first new distillery to reached annual sales of billion turnover business. be constructed on a greenfield site in Ireland in over 4 million cases.

William Grant & Sons increased turnover by 5.2% to £1.12 over 100 years.

Sold in more than 120 billion for 2013 with group operating profit advancing 10.6% to markets worldwide, £138.0 million. Turnover of the company’s core brands increased Jameson is produced by Irish Distillers Pernod Ricard. by 12.5% year on year.

Irish whiskey exports have grown by 220% since 2003 and are Despite some challenging global economic conditions the comnow valued at Eur350 million. Irish whiskey sells into 77 countries, pany continued to strengthen its business by investing behind its with the USA, France, Germany, Russia and the UK accounting for brands and global infrastructure for the long term. “Whilst 2013 almost 75% of total sales. saw some challenging global economic conditions, the company Volume sales are expected to grow to 12 million cases by 2020 continued to perform well thanks to our consistent focus on and reach 24 million cases by 2030, according brand building and investing for the longto the recently formed Irish Whiskey term,” remarks Stella David. “In short we Association. To support this projected export want to inspire our consumers with our growth, the industry is set to invest over Eur1 great liquids and the great stories our brands billion during the next ten years, with more have to tell.” than 15 new distillery projects. As well as the new Eur35 million Tullamore Distillery, Irish Acquisition Distillers Pernod Ricard has recently invested The independent Scottish distillery group Eur100 million to expand its distillery in continues to expand its brands portfolio by Midleton, County Cork, to facilitate future acquisition, recently purchasing the growth, along with a further Eur100 million Drambuie Liqueur Company, owner of the in additional maturation capacity.

Drambuie whisky liqueur brand. Drambuie Peter Morehead, chairman of the Irish is a unique blend of aged Scotch whisky, Whiskey Association and production director spices and heather honey. at Irish Distillers says: “There has been sus“We have a passion and a reputation for tained growth in Irish whiskey over the last 20 nurturing and building brands,” says Stella years, with the category experiencing doubleDavid. “Drambuie is a natural fit for our digit growth since the turn of the millennium portfolio, it has a very rich history and a and the trend set to continue. Three years ago, great story to tell and we are delighted to be the island of Ireland had four distilleries in in a position to start to re-engage with existoperation - in the next three to five years that Caspar MacRae, global brand director for ing drinkers and to connect the brand with number will grow to over fifteen if all the cur- Tullamore DEW. an entirely new generation of consumers.” J FOOD & DRINK BUSINESS EUROPE, OCTOBER 2014

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INDUSTRY OUTLOOK

UK Food and Drinks Producers Prepare For a Tough Year Ahead The UK’s largest 150 food and drink producers are bracing themselves for a difficult year ahead as they face increased pressure from supermarkets trying to oppose the discounters, according to research by OC&C Strategy Consultants in collaboration with The Grocer.

C&C’s Food & Drink 150, the only analysis of the financial statements of the top 150 British food and drink producers ranking them by annual turnover, has revealed an incremental improvement in food and drink companies’ financial performance, with revenues increasing from 5.6% in 2012 to 5.8% over 2013. However, profit margins have flat-lined near an all-time low of 5.2%, unchanged from 2012 and already lower than at the height of previous supermarket price wars in the early 1990s.

“We are in a time of fundamental change for the UK’s grocery retail sector, as shopping missions fragment and convenience stores, discounters and online continue to grow at the expense of large stores. This has meant that grocery retailers are continuing to put a lot of margin pressure on food and drink producers.

But with producers’ margins at an alltime low, there is little scope to squeeze them any further, leaving producers under more pressure than Engaging consumers by providing genuine differentiation on ever before. Fundamental products is proving hugely successful, with brands like Yeo changes are required to adapt to Valley and Tyrrells great examples. these challenges without further margin declines. The gap between ing operating conditions have meant winners and losers will become smaller, nimble players have seen the biggest improvements in performance in greater than ever.” this year’s rankings, showing that mobility is outstripping size in the current climate.”

Profit Margins The Food & Drink 150 has revealed that the best performers of 2013 have Important Considerations been companies that have reacted He elaborates: “In order to succeed, there quickly to the changing grocery retail are a number of important considerations landscape and changes in shopping producers need to have front of mind.

The best performers of 2013 have been companies that habits. Smaller branded food and Engaging consumers by providing genhave reacted quickly to the changing grocery retail drinks producers have adapted best, uine differentiation on products is proving landscape and changes in shopping habits. seeing a 0.2% increase in profit mar- hugely successful, with brands like Yeo gins from 8.3% in 2012 to 8.5% in Valley and Tyrrells great examples in this Challenging Conditions 2013. In contrast, bigger businesses with a space. Brands are also reaping the benefits Pressures in the grocery retail market, par- turnover of more than £500 million have of rethinking their product, price and ticularly among the big supermarket continued to face declining margins, with pack architecture to reflect changing shopchains, are creating challenging conditions large branded businesses’ margins falling per habits in different types of stores. for food and drink producers. The perfor- by 0.1% from 7.4% in 2012 to 7.3% in Finally, developing in-house capabilities mance of the grocery retail industry has hit 2013 and unbranded producers seeing a to react quickly to the changing grocer historic lows this year, with year-on-year 0.5% decline from 3.4% in 2012 to 2.9% environment, such as infrastructure that allows for a more flexible supply chain, growth down from 3.7% in 2012 to 2.8% in 2013. in 2013. There has been a continued The changing fortunes of large and small will also be essential as conditions contindecline in like-for-like sales at Morrisons (- branded businesses is even starker when ue to evolve.”

2.8%) and Tesco (-1.3%), and a slowdown looking back over the past five years, with The best performers for 2013 include in like-for-like growth at Sainsbury’s and large branded business’ margins declining soft drinks producer Innocent (now Asda. In addition, profit margins across the by 4.1% points since 2008, whilst smaller owned by Coca-Cola), meat substitutes Big Four supermarket chains declined a branded players margins have grown by market leader Quorn, meat processor Cranswick, and confectionery manufacfurther 0.1% in 2013 to 4.4%.

1% point over the same period.

Will Hayllar, Partner at OC&C, says: Will Hayllar continues: “The challeng- turer Haribo. J

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FOOD & DRINK BUSINESS EUROPE, OCTOBER 2014

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Picked to Perfection – The FANUC Way n 12 months, FANUC has experienced Ienquiring a 35% rise in food manufacturers about automation of food handling and packing operations. This growth has inspired their latest development; a food picker cell combining two food grade robots, the latest vision technology and in-built energy reduction technology, cutting power consumption

FANUC’s food picker cell includes new iRPickTool software which simplifies setup for line tracking.

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by an average of 20%.

Designed to orientate and pack a wide variety of unpackaged and packaged foods and accommodating quick product and pack changes, the cell incorporates a ceiling mounted four axis M3iA/6s delta style loading robot. To aid queue management, a single iRVision camera can visually track the line and direct up to four robots.

Distributing equal volumes of incoming product to each robot and programming specific packing volumes is also easier with FANUC’s new iRPickTool software.

Capable of 120 picks per minute, the M3iA/6s robot has a 6kg payload and can withstand tough cleaning regimes helping food processors maintain IP67 certified hygiene standards.

The M430iA/2P articulated arm (at the other end of the cell) has many handling capabilities, for example removing product like baked good from trays, and placing them back onto the conveyor.

For workspace flexibility, the six-axis arm can be mounted on the floor, wall or invert. J

O-I Extends its Range to Enhance Presentation of Premium Beers wens-Illinois (OI), the world’s largest glass O container manufacturer has introduced a new bottle to enhance its standard range and help brewers differentiate their premium and craft beers. The new standard combines a champagnestyle shape with a highly functional format in terms of size, closure and light weight. It complements an already extensive range of O-I glass packaging available to breweries.

O-I is responding to market needs with this pack which supports the authentic, craft image many brewers are seeking for their premium products.

The design retains the deep push up base and shape of a champagne bottle with the convenient 500ml capacity, 300g weight and 26mm crown closure familiar to most UK and continental brewers. This ensures it can run along existing filling lines with very little adaptation of plant settings. J

FOOD & DRINK BUSINESS EUROPE, OCTOBER 2014

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DAIRY

Adding Value at First Milk British dairy farmers co-operative First Milk is continuing to make progress in its quest to develop into an added value food business, whilst maximising the returns for its members. eadquartered in Glasgow, First Milk is the UK's only major dairy company that is 100% owned by British farmers. It supplies a wide range of dairy products and dairy ingredients to customers in both national and international markets including block cheeses, soft cheeses, raw milk, butter, skimmed milk powder, whey proteins and sports nutrition brands. With annual revenues of £530 million (2012/13 figures), First Milk operates seven manufacturing sites across England, Scotland and Wales.

First Milk has assembled a strong brands portfolio including Mull of Kintyre, Isle of Arran, Scottish Pride, Pembrokeshire and Kingdom Cheese Company. First Milk’s two flagship brands are The Lake District Dairy Company and CNP. The Lake District Dairy Company brand encompasses a wide range of dairy products; from mild through to vintage cheddars, Red Leicester and Double Gloucester cheeses, dairy drinks, as well as naturally fat-free Quark and Cooking Sauces. CNP is First Milk's premium lifestyle nutrition brand, aimed at both elite athletes and gym enthusiasts.

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Strategic Supply Partnerships In line with its commitment to maximise returns from its members' milk, First Milk has concluded two key strategic supply partnerships in the past year. The dairy cooperative has commenced a long term partnership with Adams Foods, a subsidiary of the Irish Dairy Board and one of the UK's leading suppliers of cheese, to establish a fully integrated supply chain for hard cheese in the UK retail, food service and wholesale sectors.

First Milk has assembled a strong brands portfolio.

Adams Foods will utilise its best-in-class facility at Leek in Staffordshire to cut, pack and market 50,000 tonnes of hard cheese, including branded cheddars, produced at First Milk's award winning Lake District and Haverfordwest creameries. Adams Foods will take on the business for the sale and marketing of this cheese to British retail, food service and wholesale customers. First Milk will continue to manage the sales and marketing of its cheddars to export markets.

Adding Value "Our partnership with Adams Foods is directly in line with our objective of adding value to our members' milk and in doing so delivering a sustainable future for them.

It will provide us with secure and competitive returns for our cheese and allow us to invest further in our Lake District and Haverfordwest creameries,” explains Kate Allum, chief executive of First Milk. "The partnership is a big piece of the jigsaw coming together in defining the strongest core base we have ever had as a business.

Additionally, it will enable us to focus more of our time and resources on priority growth areas like brand development, lifestyle nutrition and exports."

First Milk has also been confirmed

by Nestlé as its long-term dedicated supplier of fresh milk in the UK for the Kit Kat and Nescafé brands. In 2010, a dedicated group of First Milk farmers was set up around Nestlé’s site at Girvan in Ayrshire, Scotland.

The partnership has now been expanded with a farmer supply group now established around Nestlé’s Dalston site in Cumbria, England.

The milk for Nestlé Girvan comes FOOD & DRINK BUSINESS EUROPE, OCTOBER 2014

from First Milk farms, all from within a 50 miles radius of the plant. The milk is made into chocolate crumb, a key ingredient in the production of Nestlé's chocolate in the UK. Nestlé Dalston site is home to products such as Café Menu sachet products, including hot chocolate and cappuccinos.

Supplying farmers will be included in the Nestlé First Milk Sustainability Partnership, with all parties committed to benefit the whole supply chain and the environment through measures including reductions in greenhouse gas emissions and developing on-farm biodiversity work.

Kate Allum, chief executive of First Milk.

Innovation Reflecting its strategy to develop added value sales and its brands portfolio, First Milk recently extended its Lake District Dairy Co brand into the cooking sauces sector with the launch of three productions - garlic & herb, tikka, and tomato & basil.

The brand extension builds on the continuing success of First Milk's Quark range that was launched in 2013.

Export Development First Milk has also been building its added value export sales. The farmer-owned company’s export sales are about £50 million per annum. First Milk is currently focusing on developing new sales leads with customers in Europe, the Middle East, Asia and South America. For example, First Milk recently commenced exporting its Lake District, Isle of Arran and Mull of Kintyre cheddars to Taiwan. J 13

I SUSTAINABILITY

Cutting Fuel Costs With Maxsys Fuel Systems s part of the international burner and A combustion equipment manufacturer, Selas Heat Technology Co LLC, Maxsys Fuel Systems provides energy saving tech-

nology proven to cut gas/oil consumption and CO2 emissions by at least 5% across all types of burners and combustion plant. The savings are such that a return on investment is within two years.

For example, First Milk’s Haverfordwest creamery has fitted Maxsys Fuel Systems to its three oil fired steam-raising boilers, resulting in an impressive 7.5% fuel consumption saving and a return on investment in less than one year. A reduction in CO2 emissions equal to around 1,393 tonnes each year has also been achieved.

Indeed, latest figures supplied by Maxsys Fuel Systems’ customers within the food and drink industry show that the 1,570 systems installed globally will save them £840

million in fuel costs, and 6 million tonnes of CO2 over the lifetime of the systems.

For further information visit www.maxsysltd.com. J

Help Reduce Compressed Air Consumption With SMC’s New Stand-by Valve ith rising energy costs, static leakage of W compressed air is increasingly becoming an important cost factor for many manufacturing organisations.

Experts at SMC, the world leaders in pneumatics, have now addressed this problem following the launch of their new Stand-by valve which allows for exhaust, shut off or standby all in one unit.

Typically, machine stoppages can be split into two categories - short periods, which often occur when tool changes are required, during operator shift change overs, when planned or unplanned maintenance is required, when a breakdown happens and, longer periods such as evenings and weekends when manufacturing plants are often not operational.

For example, when a tool change is

required, the Stand-by valve automatically reduces the main line pressure via an electro pneumatic regulator to a lower figure to enable the tool change and, once completed, the system is then re-pressurised in a second thanks to the large flow air valve enabling machine availability to be maximised.

SMC’s Stand-by valve, which can be specified as part of a new installation or simply retro fit to existing plant, features a digital pressure display which can set up to four pressure levels. The Stand-by valve can also be integrated into existing energy monitoring software allowing for enhanced analysis of a machine or a facilities overall compressed air consumption.

For more information simply contact SMC Pneumatics (UK) Ltd on www.smcpneumatics.co.uk. J

BIOGEN Continues to Expand AD Processing Capacity IOGEN is the UK’s leading food waste B recycling company. Its anaerobic digestion (AD) plants recycle waste food from homes, shops, pubs, restaurants, hotels, offices and food manufacturers across England and Wales to generate renewable electricity for the national grid. What’s left from the AD process is a nutrient rich biofertiliser which is returned to the land to 14

grow more crops.

BIOGEN plans to have 9 fully operational plants across the UK by 2017 meaning 300,000 tonnes of AD processing

capacity. The multi-site operations mean you can access BIOGEN’s service wherever you are.

If you are considering options for food waste treatment BIOGEN can help with a cost effective and sustainable solution. Call BIOGEN today on 0844 3267241.

Visit BIOGEN at: www.biogen.co.uk.

Follow BIOGEN on Twitter @BiogenAD. J

FOOD & DRINK BUSINESS EUROPE, OCTOBER 2014

I SUSTAINABILITY

Qube Renewables – Benefits of Onsite Food Waste Processing hilst sustainability is sometimes a niceW ty to have for a business, it’s the commercials that are at the core for many food

On-site 7kW combined heat and power plant with a biogas to biomethane upgrader providing fuel for Howard Tenens, Logistics and Transport Company.

and drink companies operating objectives.

The sector is increasingly under pressure to reduce costs and improve environmental performance- both of which can go hand in hand.

Companies are continually faced with the challenge of disposal and treatment of waste, resulting in many looking towards anaerobic digestion - turning problems into opportunities and waste into something beneficial, both environmentally and commercially.

QUBE Renewables Ltd are proof that anaerobic digestion does not always have to happen on a large scale and off-site. With their modular digestion system, small scale food waste problems can now be processed on site to provide localised heat and power.

Located in Somerset, QUBE Renewables Ltd design and build small scale containerised anaerobic digestion systems processing from as little as 500kg per day. The systems are portable and modular with the ability to process most biodegradable materials, converting waste into biogas (a mixture of methane and CO2) and digestate fertiliser.

The biogas can then either power a small scale generator, producing electricity and

hot water, or be upgraded for use as a transport fuel with subsidies from energy production and benefits from a 20 year government subsidy. The process is also able to incorporate pasteurisation and de-packaging, with the whole system neatly designed into a number of standard 20ft shipping containers depending on waste volumes, ready to plug and play anywhere in the world.

Installation is fast and simple - only taking up a small footprint. QUBE technology can save on disposal gate fees, reduce waste to landfill, off-set energy usage, export to the grid, and cut carbon emissions. Find out more about the QUBE systems at www.quberenewables .co.uk or call +44 1984 624989. J

FOOD & DRINK BUSINESS EUROPE, OCTOBER 2014

15

I SUSTAINABILITY

The Complex Task of Measuring and Reporting on Sustainability Data

By Ailsa Burns, Marketing and Communications Executive, SustainIt easuring and reporting on corporate social responsibility and sustainability M is a powerful tool for food and beverage manufacturers. Collecting data on a wide range of subjects including energy use, waste production and staff volunteer hours

allows these large, complex organisations to both comply with government regulations and position themselves in the best light to their consumers and their investors. There is no doubt that the process of reporting on sustainability is a must, however, there is a

large degree of uncertainty associated with the process of measuring sustainability data.

Food and beverage manufacturers can be massive conglomerates, working on a global level, across a variety of disciplines and employing hundreds of thousands of staff over several brand families that have been acquired at different points throughout the organisation’s lifecycle. The implications of this complex structure and the hangover from company acquisitions and hostile takeovers make the process of collecting sustainability data a daunting and complex task. However, food and beverage manufacturers should not despair.

Maximising the potential of powerful sustainability data management software and ensuring staff who are reporting data are fully trained can mitigate the maze of sustainability data. Utilising experts who understand sustainability software can negate the wasted resource of using internal personnel and strategic project management can ensure that mergers do not result

in inconsistent data available for reporting.

Furthermore, better management of data allows the sustainability team to focus and utilise their expertise on issues specific to sustainability in the food and beverage industry.

SustainIt, the leading sustainability data consultancy, have been helping their clients for almost a decade and specialise in performance managing sustainability data.

SustainIt have provided several food and beverage manufacturers with the expertise they need to transform and streamline their data to ensure compliance and excellent communication of sustainability. J

Delivering Sustainability to Supply Chains

By Matthew Brennan, Senior Environmental Consultant, Promar International elivering sustainability to supply chains D is becoming an increasing priority for businesses across the world. In addition to the direct impact on the environment and public image, our experience and knowledge has shown that investors are increasingly using sustainability as a core component of business decisions.

Unfortunately many companies take the view that improving sustainability is an additional cost to the business that they cannot afford. However, while in some cases there may be initial costs, there are a wide variety of measures which can be undertaken which help to improve efficiency, resource consumption and ultimately reduce operational costs. Through targeted use of practical audits and environmental footprinting, companies can

Matthew Brennan, Senior Environmental Consultant, Promar International. o

identify where there is unnecessary cost to their organisation that can be removed to improve their environmental impact through effective, forward-thinking strategy and visioning.

As well as reducing costs, effective action can promote an improved company image and public profile, as well as improving investor confidence to support both environmental and financial sustainability for the future.

For tailored advice on the efficiency of your supply chain, and in supporting and developing sustainable leadership and strategy for your organisation, contact Promar International Ltd and speak to our Environment Unit representatives on 01270 616800 or email matthew.brennan@genusplc.com. J

FOOD & DRINK BUSINESS EUROPE, OCTOBER 2014

17

I ENERGY EFFICIENCY

High Efficiency Via Low Carbon Power CHP ith offices in 16 countries worldwide, W Clarke Energy are specialists in CHP using gas engines. A British company founded in 1989 primarily as a stationary engine service company for the production of power, Clarke Energy now delivers power plants for a wide range of different gas applications including natural gas, biogas, landfill gas and coal gases. The links to the food industry are varied including supply of CHP facilities to food processing factories, or using food wastes to generate biogas and hence renewable electricity.

In 1995, the company entered a relationship with Jenbacher AG, an Austrian company that was involved in the production of the Jenbacher gas engine. Jenbacher went on to be acquired by GE in 2003.

“In the early days, Jenbacher was a relatively small company but because of the strong product that they developed they soon excelled technologically, so we grew alongside Jenbacher, hand-in-hand” explains Alex Marshall of Clarke Energy.

The Guinness Ogba brewery in Nigeria has been successfully operating GE’s Jenbacher gas engines since 2008. The site expanded in 2010 to incorporating a further 3MWe J620 with exhaust linked to an absorption chiller to provide chilling, coupling with heat recovery the site is now configured for trigeneration. Most recently the company has ordered an third J620 to expand the site’s total capacity to 9.3MWe. Guinness Ogba’s sister brewery in Nigeria at Benin City also operates Jenbacher gas engines.

Growing List of Projects The list of projects continues to grow nationally and internationally.

“We provided a CHP plant for King’s Cross station, London last year,” says Alex Marshall. “It’s a 2MW engine, which notably

is painted bright pink in aid of Breast Cancer Awareness. We also won a major CHP contract for Bolivar Waste Water Treatment Plant near Adelaide, Australia which handles 80% of Adelaide’s wastewater.”

The 306m glass Shard building in London utilises a GE Jenbacher JMS416GS-NL gas engine and cogeneration facility that was engineered, installed and will be maintained

by Clarke Energy.

Alex Marshall says: “We provide a quality product and quality installations with a heavy focus on a delivery of the highest standards of after sales support on the basis that once you have installed an engine, without long-term backup to that unit the running time for the engine would be reduced. Therefore ensuring long-term customer satisfaction is very important for repeat business.”

He continues: “We add value to our core product – Jenbacher gas engines – via our engineering, installation and maintenance of the turnkey facility. We’ve got the largest network of dedicated gas engine service engineers in the industry throughout many countries where we operate in and also the largest investment in parts stock holding.

India and recently completed a 4MW power plant project with Honda Motorcycles and Scooter factory in Haryana.”

Also in 2012, Clarke Energy was conferred with the title of Large Business of the Year in the Knowsley Business and Regeneration Awards. “We received this in recognition for the work we’ve done promoting the local area and employment and our general success,” says Alex Marshall. “We’ve also been sited in Insider’s Top Companies in the North West of England.”

For further information contact Clarke Energy on Tel +44 (0)151 546 4446 or visit www.clarke-energy.com. J

Significant Year Last year was a significant year for Clarke Energy with a hefty investment from ECI Partners that will provide them with the capital to push ever onwards on their expansion plans.

“We continue to grow geographically, expanding into Tanzania in 2012,” says Alex Marshall. “We’re also performing strongly in FOOD & DRINK BUSINESS EUROPE, OCTOBER 2014

19

I ENERGY EFFICIENCY

Forward Thinking Boiler House Control ost production due to unplanned boiler L downtime is something we all fear.

Downtime on your daily operation can cost you thousands, and with the boiler being at the heart of many industry applications, one thing you don’t need is the stress caused by a boiler breakdown.

‘feed-forward’ control loops, and to identify developing problems. An example of such a control considers the boiler pressure, flue gas temperature and the boiler firing-rate.

Significant drift in the flue gas temperature can be an indication of fouling of the heating surfaces or a problem with the burner, both of which cause unnecessary expenditure and, eventually, unplanned downtime.

Improved Diagnostics Explaining the thought processes that drove the innovation, the system developer, Jason Atkinson of Byworth comments: “Current integrated systems are simply not using the data they collect in an effective manner.

With Unity, we’ve thought about how all of these discrete signals can be brought together and made to work in a user-friendly system that is far greater than the sum of its parts. What we’re offering is a boiler house that makes intelligent decisions based on multiple pieces of information.”

Modern burner and boiler controls include a wealth of information that aid boiler service people to identify what went wrong and when; greatly reducing the amount of time lost in getting a boiler back up to working condition. However, the Holy Grail would be a system that is able to predict these failures before they happen, allowing you to schedule your downtime or even to take preventative action whilst the boiler is still on-line.

‘Unity’ from Byworth Boilers is showing great promise in this area by utilising the normally discrete signals collected by individual components to form sophisticated,

Technological Advantages Unity readily integrates with PC, smartphone and tablet devices ensuring that oncall engineers are quickly notified of key events and are able to remotely assess the boiler from anywhere with an internet connection, including over 3G mobile networks.

Stephen Fleming, Scottish Area Sales Manager for Byworth, says: “Unity has proven particularly popular with sites in remote locations. Where engineers have remote access, Unity has vastly improved the response time to maintenance issues such as low water events. As a result, this improved customer satisfaction has leading brands flocking to Unity’s calling.”

Service – A long-term Support With year-round remote monitoring, Byworth are often aware of problems at the same time as the engineers on-site. With real-time and historic data readily available, Byworth personnel are able to track their customers’ boiler houses from the head office in West Yorkshire and remotely diagnose and fix problems, whereas previously they would have had to attend site.

Accurate diagnostics ensure that when they do attend site they arrive with the correct parts, significantly reducing down-time.

Summary Unity operators can view processed boiler house data and trends relating to numerous values including: • Boiler and Manifold Pressures • Boiler Water Levels and Conductivity • Hotwell Levels and Temperature • Blowdown Temperature • Flue Temperature and Gas Analysis • And many more.

All alarms and tests conducted are logged and can be exported to a network printer if required; whilst a straightforward ‘traffic light’ warning system keeps users up-todate with any changes in plant conditions and draws focus to areas requiring attention or adjustment. This comprehensive, ‘joined up’ approach to the management of multiple processes means Unity offers significantly less downtime than other control systems. J

I SUSTAINABILITY

Appetite For Sustainable Food is Good For Business ood businesses that demonstrate positive F values can reap rewards from the growing demand for sustainably produced food.

In the UK, ethical consumerism increased by 7.8%, between 2010-11, to be worth £7.5 billion (The Co-operative Ethical Consumer Markets Report 2012).

Doing business sustainably provides ways for micro, small and medium sized (SME) food companies to innovate, to save money and to gain competitive advantage. It opens

doors to new markets because larger buyers will actively seek out suppliers that can help them meet their corporate social responsibility targets and legal obligations.

Ecostudio works with SMEs across the food supply chain to build strategies, brands, products, packaging and services that position them to take advantage of the growing demand for sustainable food. Find out more at www.ecostudio.org.uk or call us on 08452 696105. J FOOD & DRINK BUSINESS EUROPE, OCTOBER 2014

21

I EFFLUENT TREATMENT

Part IV – Water & Material Re-use in the Food & Beverage Industry

By WEHRLE Umwelt GmbH n Part III of this mini-series about indusIgeneration trial effluent treatment, the topic was the of biogas from wastewater. In some cases it is not the energy in the form of biogas, heat, electricity that can be regained, but other substances, like water, nutrients or other materials that otherwise would be wasted.

Several technologies can be used to recycle substances. Nanofiltration (NF) and Reverse Osmosis (RO) might be some of the easiest to run pieces of equipment. The sugar producer Omnicane, for instance, uses a simple-to-install NF container to recover brine after the decolourisation of the brown sugar molasses – reducing the need to purchase new salts by over 70%.

For most industries, the re-use of water might be the most interesting option. Even though technologically simple to solve, treated water can probably not be used in the food & beverage production for accep-

22

tance reasons – even if needed with conventionof excellent quality and al biological processes. reliability. Other use NF and RO can also may be for the sanitary be an important step system, lorry cleaning towards the Zero Liquid or pre-wash of delivered Discharge (ZLD) factogoods. ry. With this technology Naturally, this makes the effluent will be cononly sense if the price centrated and a followfor fresh water is high ing evaporation step can or if there is a corporate be much smaller and philosophy to reduce cheaper. the environmental As with all equipment Nanofiltration for brine recovery in impact of a factory. If for effluent treatment, it Omnicane (sugar industry), Mauritius. the prior effluent treatis quite advisable to use Picture: WEHRLE Umwelt GmbH. ment step is a MBR – suppliers that are not i.e. producing a stable tied to a single technoloand reliable output without any germs and gy, but can engineer a complete solution to microorganisms - the refitting of an your particular needs.

NF/RO step is very simple, as no cumberPart V: “Industrial Effluent Treatment in some disinfection steps are needed to make the Food & Beverage Industry – Case Studies” the effluent fit for the equipment like it is in the next edition. J

FOOD & DRINK BUSINESS EUROPE, OCTOBER 2014

I CASE STUDY

Improving Environmental Peformance at Deli Solutions eli Solutions, part of the Winterbotham D Darby Group, supply high quality delicatessen style foods to some of the UK’s best known food retail outlets. The operation at Clitheroe has grown in recent years and waste was an increasing problem as production grew. The business was looking for a waste management partner that could achieve a high level of recycling and reuse, whilst having the ability to flex the service with demand. To help Deli Solutions demonstrate to its customer base that it had the right environmental credentials, comprehensive management information and reporting was also required.

After a formal tender process, Cory Environmental Recycling Services were selected to manage all waste streams from the Clitheroe site, commencing in March 2013.

“Cory were asked to tender for the waste collections business for Deli Solutions,” says Roy Patchell, the H&S and Environment Manager for Deli Solutions. “Their package offered a total waste solution for the company expanding several waste streams that had not been used. Targets were set right at the onset that within 12 months Deli solutions would be 100% diversion to landfill, and I am proud to say this target has been achieved.

Over the past 10 months a good working partnership has developed between both companies. As a company we can be confident that there is always somebody at the other end of the phone ready and willing to help.”

After the rollout of a detailed mobilisation programme, Deli Solutions were quickly able to benefit from Cory’s experience and innovation applied within the food and beverage sector. Some of the initial strategies launched are detailed below: * All scheduled wastes produced considered for their value as recyclable commodities in every case * The waste collection system across the site

was redesigned to enhance the collation of source segregated materials * Clear and accurate monthly reporting template designed for ease of use and to help identify trends

* A Cory Account Manager assigned to the contract to help drive change and maintain performance * Niche recycling routes found for all plastic grades of containerised food.

With all parties fully committed to improving the environmental performance for the site, by Dec 2013, Deli Solutions achieved 100% landfill diversion. Through continuous improvement measures, Deli and Recycling Services are assessing new ways to manage any wastes from the site which are not currently recycled. J

I GROCERY MARKET

Record Low For UK Grocery Market Growth as Inflation Disappears he latest grocery share figures from T Kantar Worldpanel, for the 12 weeks ending 14 September 2014, show overall grocery market growth slowing to a new record low of 0.3% as price inflation falls to zero.

Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel explains: “Consumers are currently benefitting from intense price competition between the grocers. For the first time ever we’ve seen the average basket of everyday goods bought today costing exactly the same as it did a year ago. With some staple groceries such as vegetables, milk and bread prices are actually falling as the big retailers all compete for a bigger slice of shoppers’ wallets. As a result the grocery market is currently growing by just 0.3%,

the lowest level since our market data was first compiled in 1993.”

He adds: “Aldi has continued its run of double-digit growth, which now stretches back to February 2011, by recording a sales increase of 29.1% compared with last year. Similarly, Lidl has increased sales by 17.7%, showing that shoppers still have a

strong appetite for the discount stores. At the other end of the market Waitrose has grown its sales faster than in previous months, up 4.5%, which has brought its market share back up to 5.1%.”

Asda has recorded the best results among the big four supermarkets this period. It is the only one of the major grocers to increase its market share, now at 17.4%, and to see an uplift in its sales which have grown 0.8% compared with last year. There is no sign yet of recovery at Tesco; sales are down 4.5% leaving its market share at 28.8%. Morrisons’ market share remains under pressure, with sales down by 1.3%, although the rate of decline has slowed considerably as its fresh food promotional voucher scheme has taken effect. J

Morrisons to Price Match The Discounters response to the continued growth of the discount chains Aldi I&nandMore’ Lidl, UK supermarket group Morrisons is launching ‘Match its new price match and points card. Match & More is the

Lidl, Tesco, Asda and Sainsbury’s. If the customer’s comparable shop would have been cheaper elsewhere, Morrisons will make up the difference in points on the ‘loyalty card’. For example, if first programme of its kind to provide a price match guarantee Lidl is the cheapest and is 60 pence cheaper than Morrisons against Aldi and Lidl as well as Tesco, Sainsbury’s and Asda. If a then 600 points are added to the customer’s Match & More comparable grocery shop is cheaper at any of these supermarkets, account.

Match & More users will automatically get the difference back in • And More - Shoppers will receive additional points on hundreds points on their card. Shoppers will also be able to collect extra of featured products across Morrisons stores which will accumupoints on hundreds of featured products and fuel. late with each shop. They will also earn 10 points on every litre Dalton Philips, chief executive of Morrisons, says: “In May, we of fuel they buy from Morrisons petrol stations. announced that we were lowering our prices permanently. Now Dalton Philips continues: “For our customers, the Match & we’re launching Match & More the most comprehensive price More card could not be simpler. We have learned from other price match and points scheme in the UK. match programmes so our customers Because it price matches the discounwill not collect lots of small vouchers ters, the Match & More card will proor have to redeem them through a vide the ultimate guarantee about website when they get home from Morrisons’ value-for-money.” their shop.”

Using Match & More, customers To ensure that customers can trust the earn points in the following ways: price match, comparable prices will be • The Match – Morrisons’ technology collected by independent research group automatically checks all the prodProfitero. The Price Match will cover ucts in the shopper’s basket against branded and own-brand products as well a database of thousands of prices as items that are on promotion elsecollected by independent pricing where. The Morrisons ‘Match & More’ card will undergo a phased roll out experts Profitero. Where there are across the country and will be in stores comparable products, these are price in time for the Christmas season. J matched against those from Aldi, Dalton Philips, chief executive of Morrisons.

FOOD & DRINK BUSINESS EUROPE, OCTOBER 2014

25

I SUSTAINABILITY

Product Recovery Solutions From HPS PS provide product recovery solutions H to customers in the food and beverage, cosmetics and personal care, household

experience in providing quality customer solutions.

products and pet food processing industries.

Specialising in the design, development, and installation of pipeline pigging and product transfer solutions, HPS increase customers’ profitability by maximising their product yield, while helping them to reduce their environmental impact.

Headquartered in Nottingham, United Kingdom, HPS also have offices in the USA and Australia and operate globally elsewhere through a network of approved agents.

HPS have worked hard to achieve a growing base of delighted and loyal customers. HPS have 20 years of experience in product recovery, and have successfully completed over 1,200 system installations (both for new processing lines and retro-fitting existing facilities) for major blue-chip clients such as Unilever, Procter & Gamble and Nestle, as well as many smaller independent operators.

HPS have recently relocated their USA headquarters to the Mid-West, enabling them to provide a more efficient and responsive service to customers, and is led by Jim Rowe, National Account Executive North America, who has more than 25 years’

Sustainability at HPS

Sustainability and reducing impact on the environment is a key priority for most of HPS’s customers. HPS’s systems help clients achieve this by reducing water usage, reducing the use of harmful cleaning chemicals, and by reducing the amount of waste transportation and disposal required, in addition to wasting less raw materials because of improved yields.

HPS’s clients are at the heart of everything the company does and HPS share this key environmental priority with customers.

HPS have recently appointed a Sustainability Officer who is responsible for reviewing the sustainability of operations and implementing initiatives throughout the business to help improve performance in this area. It can be difficult and costly at times, but the commitment to do the right thing runs throughout HPS’s business.

Wickham Hill have resulted in over 40 million litres of water savings per annum, in addition to increasing wine yield by over 400,000 litres per annum.

“Everyone is trying to be environmentally conscious and Pigging has significantly reduced our waste discharge,” says Stephen Cook, Wickham Hill Winery.

Southcorp – Owned by Foster’s, Southcorp is one of Australia’s largest wine producers, owning brands such as Penfolds, Rosemount Estates and Lindemans. Southcorp management were determined to lead the way forward in plant waste reduction, and in particular reducing water consumption, effluent treatment and removal costs. They approached HPS to install a pipeline pigging and cleaning system in a new line.

“Effluent production has been reduced by 1,500 litres per bottling run, which equates to around 500,000 litres per year. There is no dilution of the wine with water or contamination with oxygen, safeguarding the quality and integrity of the wine whilst ensuring it is consistently delivered as specified with no variation in dissolved oxygen from the tank figures,” says John Ide, Senior Project Engineer, Penfolds Wines.

Why HPS?

Case Studies

Pernod Ricard, Wickham Hill Winery – Wickham Hill were faced with new waste charges and stringent demands on effluent levels as a result of new legislation and approached HPS for help in devising a solution.

HPS implemented the world’s first wine must pigging solution. This and further projects undertaken by HPS at FOOD & DRINK BUSINESS EUROPE, OCTOBER 2014

• • • • • •

Reduce environmental impact Improve profitability High ROI and short payback period Industry leading technology Tailored solutions Quality customer service and communication • Highly skilled and experienced engineers.

Please visit www.hps-pigging.com for more information on how HPS can help you improve profitability while reducing environmental impact. J 27

I HIGH PRESSURE PROCESSING

Maintain Freshness and Nutritional Value While Extending Shelf Life – with HPP p until about 25 years ago, heat was U chosen as the pasteurization standard because it was practical and easy to apply to large volumes of product. But when applied to juices and other beverages for shelf stability and sterilization, it comes at the expense of flavour, nutrition, and texture.

High pressure processing, or HPP, applies ultra-high pressure to a food product in its final packaging to inactivate liste-

ria, salmonella, and E. coli, as well as other spoilage microorganisms, without harming healthy enzymes or removing vitamins. If

HPP applies high pressure to a food product in its final packaging to inactivate listeria, salmonellla, and E. coli, as well as other spoilage microorganisms, without harming healthy enzymes or removinng vitamins.

applied properly to the product, HPP allows processors to maintain freshness, texture, flavour and healthy nutrients that are vital to good health – without heat or chemicals.

With the ability to extend shelf life with HPP, the fresh juice market has seen explosive growth worldwide, offering today’s consumers exactly what they want - fresh taste, nutrition and safety.

One example of very successful use of HPP for fresh juices is Vegesentials (www.vegesentials .co.uk), an award-winning producer of delicious fresh bottled juices such as “Beetroot, Pomegranate & Carrot” and “Carrot, Peach & Cucumber”.

Vegesentials worked with Juicy Line, a contract HPP services provider using Avure HPP equipment in The Netherlands, to define objectives, standardize recipes, conduct microbiology validations and shelf-life tests, satisfy regulatory requirements, evaluate packaging options, and perform other important steps involved in successful delivery of HPP products.

Along with the high capacity, reliability and low operating costs desirable in HPP equipment options, Avure, the global leader in HPP solutions, and its network of contract HPP service providers, bring proven expertise to help processors of all sizes in their HPP journey.

A short video presentation on the benefits of HPP to juices and other beverages can be viewed at http://info.avure.com /foodbevbiz.

FOOD & DRINK BUSINESS EUROPE, OCTOBER 2014

With the ability to extend shelf life with HPP, the fresh juice market has seen explosive growth worrldwide, offering today’s consumers exactly what they want - fresh taste, nutrition and safety.

Learn how Avure enables delivery of successful HPP products at Pack Expo Chicago at Booth #8754 [Lakeside Upper Hall]. J

Avure, the global leader in HPP solutions, and its network of contract HPP service providers, bring proven expertise to help processors of all sizes in their HPP journey.

29

I PUMPS & FLUID HANDLING

New Verderflex Dura 55 Peristaltic Pump

Reduce Filtration Time With a Packo Mash Pump

ow available from Verder UK is the new Verderflex Dura 55 peristaltic dosing N pump, delivering over 20% more flow - the highest continuous and intermittent flow of any pump in its size category.

P

umping mash is mostly done with vortex impeller type of pumps or with more complex pump types. It has always been like that and brewers saw no reason to change it, or is there?

Packo has used CFD (Computional Fluid Dynamics) studies to improve the flow and reduce the risk of damaging mash during pumping. An improved casing and impeller design installed in Packo pump serie MCP3 lead to shorter filtration times as well as in less energy consumption!

Again a proof that Packo Optimizes Your Flow! For further information contact pumps@packo.com or visit www.packopumps .com. J

The Dura 55 model extends the Dura range to allow flow rates from below 1L/hr to 15.3m3/hr up to 16 bar.

The Dura 55 is part of the next generation of peristaltic pumps from the Verderflex family.

The range has been developed to meet the demands of engineers tasked with reducing the total cost of ownership over the life of a pump, increasing the plant’s uptime and performance, even with arduous, heavy duty applications.

As a peristaltic pump, the Dura 55 performs exceptionally well with shear-sensitive fluids such as polymers or brewing yeast, highly viscous sludges or pastes and abrasive fluids and even those that are off-gassing Where a fluid stream may run dry, require a suction lift, contain solids or need to self-prime the peristaltic principle is perfectly suited, thanks to no wearing parts being in contact with the fluid. A simple hose design with a rotor providing a compression pushes the fluid through the pump, eliminating abrasive wear, permitting solids to pass and minimizing shearing effects on the fluid.

These qualities make the Verderflex Dura 55 ideal for use in water treatment, chemical process, anaerobic digestion, brewing and filter press applications. For further information vist www.verder.co.uk. J

Wangen Eco Twin Hygienic Twin Screw Pump angen Pumps of Germany are a long established pump manuW facturer, specialising in progressing cavity and twin screw positive displacement pumps. HpE Process are the UK distributors for Wangen.

The food and beverage industry has many challenges to face when pumping products from A-B, such as maintaining strict levels of hygiene, handling diverse products with differing viscosities, avoiding damage to shear sensitive products, and transferring soft solids in suspension without damage.

Some of the more common problems with positive displacement pumped systems encountered in the food industry can be resolved by using the EcoTwin: • Low system NPSH – such as experienced on vacuum cookers or evaporators, or when handling hot products with low suction head – Ecotwin has much lower NPSH requirement.

• Shear damage – the EcoTwin screw elements transfer product with much lower shear • Wear of rotors or pumping elements – EcoTwin is much less susceptible to wear and when it does occur, can be compensated for by increasing speed.

• Cleaning – ALL other PD pumps need to use a by-pass arrangement for CIP but the EcoTwin can pump high volumes of CIP and low volumes of product because of the wide speed range that it can work in.

• Pumps air-locking – lobe pumps cannot handle air entrained products, but the EcoTwin can handle up to 60% air. J 30

FOOD & DRINK BUSINESS EUROPE, OCTOBER 2014

I EFFICIENCY

CeramicSpeed Hybrid Bearings Optimize Maintenance Costs mproved bearing performance is key to optimizing production, Icompetiveness. saving maintenance costs and at the end of the day increasing It is a simple way of saving operating costs and the industry seems to have grabbed the idea.

Save Money and Increase Competitiveness

Does this sound too good to be true? Without going a step deeper into it, the answer would be yes, this might also be the reason that some companies still have not utilized the opportunity.

However, those companies, which have chosen to go a step deeper, have cut down both production costs and downtime costs as well.

By systematically removing the bearings, which interrupt production and constrain your production capacity, you get the opportunity to carefully plan for fewer yet larger scheduled maintenance programs. This means that it is not breakdowns which are controlling the costs and production capacity. Instead it is the maintenance staff whom have the opportunity to plan the maintenance in periods where it causes least damage to production efficiency.

CeramicSpeed bearings make planned maintenance simple. This translates to reduced labor hours and costs, meaning that CeramicSpeed bearings typically pay for themselves by the 1st or 2nd lifetime of a traditional bearing. Including bearings in calculations of production efficiency highlights the size of potential savings, and the potential to increase your competitiveness.

Hybrid bearings are Just as Accessible as Steel Bearings

One of the reasons for such huge savings found with CeramicSpeed bearings comes down to the environment in which the bearings Bearing close-up. operate in. Environment plays an important role when choosing the right bearing solution. This combined with the precise construction and the Silicon Nitride balls, offers a hybrid bearing with a lifetime which is at least 4-8 times longer, and significantly better functionality than traditional bearings.

CeramicSpeed hybrid bearings are available in complete assortments. Readily available to replace traditional, all steel bearings without any additional changes to machinery. This offers the industrial sector a significant opportunity to lower cost and increase production efficiency, without any risk. J FOOD & DRINK BUSINESS EUROPE, OCTOBER 2014

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QUALITY

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& HYGIENE

CHECKWEIGHING & METAL DETECTION

Next Generation C3000 Checkweighers Improves Performance by 33% ettler-Toledo Garvens has launched a M new generation of checkweighers, entitled C3000 System. The innovative platform covers a weighing range of up to 10 kg and allows food and pharmaceutical manufacturers to inspect up to 600 products per minute resulting in increased overall equipment efficiency (OEE) and lower Total Cost of Ownership (TCO).

“As consumer demand for more convenience products continues to increase, the global marketplace has become increasingly competitive, with food and pharmaceutical manufacturers under constant pressure to produce multiple goods – and fast.

Manufacturers continually face challenges to produce high quality, safe products at the correct weight, at a low cost per package,” explains Kerstin Bernhart, head of Marketing and Product Management at Mettler-Toledo Garvens. “Our new generation of checkweighers guarantees supreme levels of weighing accuracy at high throughput production rates. This technology will further help manufacturers to improve their production line efficiency and future proof their business.”

The increased stability of the new C3000 System provides protection against vibrations caused by other production line machinery and offers enhanced performance by up to 33% throughput rate with higher weighing accuracy. The system’s modular design allows for a variety of configurations and manufacturers can choose from a range of optional product inspection technology combinations such as metal detection (CM model), x-ray inspection (CX model) or vision inspection (CV model). A CM3570 for example, combines state-of-the-art checkweighing technology with the proven ‘Profile’ metal detector technology to check that products are free from metal contaminants and at the correct weight within a single system.

The flexibility of the advanced metal detection technology allows processing lines to run at optimal speeds, inspecting a variety of products at correct frequency levels to ensure the best level of sensitivity is reached.

Metal detection sensitivity options incorporate two tuned frequency ranges respectively 100/300/800 Hz and 25/100/300 Hz, for optimum metal detection capabilities. A

single Human Machine Interface (HMI) seamlessly controls the checkweighing and metal detection technology enhancing OEE by reducing programming time and the risk of operational error.

The systems also integrate centralised inventory management technology, enabling faster more effective reporting on product changeovers and the rejection of defective products. For more information on the C3000 System visit www. mt.com/checkweigher-C3000. J

Triple Protection From a Single Machine recision weighing technology is an P important element of a meat processing operation, with the capability to reduce give-away remaining a significant contributor to profitability. Now, with the introduction of the Sparc Cerberus 420 from Interfood Technology, automated checkweighing can be delivered, along with metal detection and accurate labelling, all from a single machine.

By adopting automated processes and removing or minimising the need for human intervention, a repeatable and consistent product process can be achieved, driving increased efficiency, security and control of product quality. The Cerberus 420 can detect contaminants, weigh the product and also verify the pack label details: a three-pronged approach which provided the stimulus for the naming of the high speed pack inspection machine, Cerberus being the three-headed dog from

Greek mythology who guards the underworld.

Designed, engineered and constructed to the highest standards, a characteristic of the Cerberus 420 is its flexibility and accuracy of weighing and pack rejection, making it suited to all weighing and labelling applications. It can accommodate all pack formats in sizes up to 300mm x 300mm x 100mm.

FOOD & DRINK BUSINESS EUROPE, OCTOBER 2014

Fast and accurate rejection of out-of-tolerance or contaminated packs into dedicated lockable stations is provided by an in-line, servo driven reject system which removes the need for compressed air, offering potential savings of up to £4,000 a year on running costs compared with machines based on compressed air operation. Inaccuracies in product labelling are identified via the Sparceye continuous top and bottom label inspection. Clean down is performed without the need for any tools and with quick release connections and belts to minimise downtime.

The Cerberus 420 can be supplied with integrated data collection software to provide instant live OEE data and reporting directly to production, QA personnel.

Cerberus 420 is compliant to all existing COPs as standard, with its full reject integrity features and offering speeds of up to 200ppm. J 33

I FROZEN FOODS

Enlarged Ardo Has Firm Foundation For Future Growth The planned merger between two Belgian frozen food companies – Ardo and Dujardin Foods – has been approved by the competition authorities in the various countries affected by the deal and is now expected to be completed by the end of the year. he enlarged business, which will take the name Ardo, specializes in producing and supplying a broad range of fresh frozen vegetables and fruit, and fresh frozen herbs and ingredients to retail, food service and industrial customers. Ardo will operate 20 production, packing and distribution units in eight European countries, and will employ around 3,800 people. Ardo will grow, freeze and sell around 805,000 tonnes worldwide, and have an estimated consolidated turnover of Eur815 million.

The official merger will not be completed until the 31st of December 2014.

on the international retail, industrial and food service markets. Dujardin Foods has five production sites located in Belgium, France, and the UK.

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Similar Cultures Ardo and Dujardin Foods were started independently by two brothers forty years ago and have evolved similar corporate cultures. The merger deal entails private equity firm NPM Capital disposing of its minority stake in Dujardin Foods so that the new group will be completely owned by the Haspeslagh families.

Ardo began its activities in the 1950s, growing and trading vegetables at the family farm near the village of Ardooie, from which the company name was derived.

Venturing into freezing in the 1970s, Ardo has developed its production and sales of frozen vegetables throughout Europe.

Today, Ardo operates 15 production, packing and distribution units in eight European countries, and employs around

Philippe Haspeslagh, chairman of Ardo.

3,000 people. In 2013 Ardo grew, froze and sold 611,000 tonnes of vegetables and fruit worldwide, with a net consolidated turnover of Eur607 million.

Based at Ardooie-Koolskamp in Belgium, Dujardin Foods specialises in manufacturing and supplying fresh frozen vegetables, aromatic herbs, ingredients and ready-to-eat meals. The company employs around 800 staff, sells approximately 200,000 tonnes and has a turnover of Eur213 million. Dujardin Foods focuses

Business Rationale The rationale for the merger is to create a solid foundation to enable the enlarged business to operate sustainably in the frozen vegetable, fruit and herb sector for years to come, and to lay the basis for a third-generation, professionally-managed family business.

“Joining two complementary companies, where the owners are already closely related, is a natural step that prepares us for the future and ensures that the business remains family-owned,” points out Jan Haspeslagh, chief executive of Ardo. “With our similar approach to business and common desire to combine entrepreneurship and professionalism, I am confident that we will create a cohesive company.”

Future Development The new look Ardo will focus on developing as a financially successful business, which invests in the future. Its ambition is to expand and further strengthen its market-leading position in fresh frozen vegetables and fruit, fresh frozen herbs and ingre-

Ardo will operate 20 production, packing and distribution units in eight European countries, and will employ around 3,800 people.

FOOD & DRINK BUSINESS EUROPE, OCTOBER 2014

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mergers and acquisitions, will chair the board.

The combined business will be run by an executive committee of three - Jan Haspeslagh as managing director, Rik Jacob as chief executive officer and Bernard Haspeslagh as chief operations officer. The executive committee will be Ardo will grow, freeze and sell around 805,000 tonnes worldwide. responsible to the board on matters of strategy, investdients, through a dedicated segment-specif- ment proposals, the budget and superviic approach for customers. sion of all operational activities of the Rik Jacob, chief executive of Dujardin group.

Foods, comments: “The new Ardo will be As managing director, Jan Haspeslagh an even greater company with a unique will have a particular focus on sales, marEuropean footprint of large scale, spe- keting, new product development, purcialised plants, sound agricultural expertise, chase of frozen food, and further optimizaprofessional management and an entrepre- tion of the supply chain in the expanding neurial attitude.” group.

Chief executive officer Rik Jacob will be New Structure responsible for managing the central funcOn the completion of the merger, Ardo tions - human resources, information techwill operate with a board of directors con- nology, finance, internal business, quality, sisting of the seven family shareholders - and purchase of non-food items.

Bernard, Ignace, Jan, Marc, Paul, Philippe In his role as chief operations officer, and Xavier Haspeslagh. In addition, two to Bernard Haspeslagh will be responsible for three independent non-executive directors agriculture, investments, production techwill be appointed. Philippe Haspeslagh, nologies, health & safety and sustainability.

Ignace Haspeslagh will take on the posiwho is a leading academic specialised in

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FOOD & DRINK BUSINESS EUROPE, OCTOBER 2014

tion of international business development director (agriculture/production/sales).

This function forms part of central functions reporting to Rik Jacob. Paul Haspeslagh will support the executive committee as executive director.

Sustaining the Family Business “We are committed to creating further professional opportunities for our combined management teams whilst sustaining the family business for the next generation.

At shareholder level this signifies the coming together of seven cousins, with clear roles for the family, the board and the management,” explains Philippe Haspeslagh. J

MATERIALS HANDLING

Atelier Dumon: A One Stop Shop Company – For Your Materials Pallet Handling Needs espoke design and automation of mateB rial pallet handling solutions and hydraulic elevators is the core business of Atelier Dumon.

Atelier Dumon is a family owned company, based in Bruges, Belgium, specializing in internal goods moving systems, machinery and hydraulic elevators. For more than 60 years the company has been providing automatic solutions for production processes for a wide variety of applications. Atelier Dumon specialize in handling frozen goods products, but also have experience and reference sites in the distribution, food, beverage and transport industries.

Atelier Dumon have engineered mechanical handling solutions for Ardo since 1993. The first plant of Ardo where Dumon equipment was installed was at Ardooie, Dumon worked with Ardo to automate the different company processes.

The collaboration between the two parties has had a far-reaching effect on production operation, which has led to economic savings and technological added value for the company of Ardo. These production enhancements have been expanded, over the past 20 years, to different parts of the Ardo business, other plants around Europe have benefitted, such as the plant of Hesbayefrost (in Geer) and sites in France, The Netherlands, Portugal, Denmark and Austria.

A requirement from Ardo was to eliminate the use of long reach trucks and automate the pallet handling system as much as possible. To cater for this Dumon engineered unique solutions, at the ground floor level docks, it is now possible to load and unload with pallet trucks. An extensive check on the shape and integrity of the pallet is essential to successful transport throughout the factory. During transportation, Dumon systems can integrate with

robots, packaging machinery, label printers, wrappers, etc. Dumon specially developed, (for frozen vegetables), a drilling machine that separates frozen vegetables without damage before filling into packaging machines. After wrapping and putting into boxes, pallets are transported onwards to warehousing, or docks, already in the right sequence.

The engineering department at Atelier Dumon delivers bespoke systems to satisfy customer needs. Together with the client Atelier Dumon develop the best solution.

The strength of Atelier Dumon is that they are a "one stop shop". Atelier Dumon work with the client from the beginning of the project and then design, manufacture and install the whole project, including the electrical control and software.

Furthermore, customers of Atelier Dumon can count on a team of service technicians who are permanently available. J

Portal One From AmbaFlex mbaFlex has supplied the first A 300mm/12” belt width SpiralVeyor® Portal One. The need for a solution creating access for men and goods towards work stations along an assembly line, occurred at a US-based electronics company. The request was not quite simple, as the items to convey are small delicate smart phones.

Only the unique AmbaFlex “Portal One” concept (patent pending) could do the job.

The Portal One is an ongoing belt spiralling up, over and down without any

product transfer! It offers great accessibility throughout the line. The 100% closed top surface belt with high friction top layer ensures that items do no slip or disorientate on the go. Only more proof of AmbaFlex’s leading position in spiral conveyor solutions.

AmbaFlex is the partner for customised material handling systems based on spiral technology! AmbaFlex’s unique Spiral Veyor® is widely used for vertical transportation of single goods and packed products. With these systems, developed and produced in The Netherlands, United States and China, AmbaFlex supply reliable and cost effective solutions. AmbaFlex’s experience and supplied quality is appreciat-

ed by many users all over the world.

To maintain their position as market leader and trendsetter, AmbaFlex continuously invest in product innovation and in the relationships with customers. J

FOOD & DRINK BUSINESS EUROPE, OCTOBER 2014

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Industrial Cooling Solutions From SKT ounded in 1968, the family owned comF pany SKT is a major supplier of industrial cooling installations, with a continuous focus on energy efficiency and productivity.

Important investments in R&D and engineering keep SKT at the technological top.

SKT can offer the frozen food industry a package of both freezing tunnel(s) and engine room(s), and are able to deliver this throughout Europe. SKT also cool warehouses all

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over Europe and deliver cooling solutions to a wide range of industrial processes.

An impressive stock of spareparts and a 24/7 service availability guarantee SKT’s customers continuity in their production process.

SKT’s partner Datapolis ensures the automation of the project, and a remote control makes it possible to solve problems from SKT’s home office in Ypres (Belgium).

FOOD & DRINK BUSINESS EUROPE, OCTOBER 2014

SKT’s renewed website www.skt.be offers a clear look into the company’s activities and some useful information. J

STORAGE

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LOGISTICS

COLD STORAGE & LOGISTICS

ECSLA - The Voice of the European Cold Storage and Logistics Industry Headquartered in Brussels and representing the interests of thousands of refrigerated storage facilities and logistics operators throughout Europe, the European Cold Storage and Logistics Association (ECSLA) is the voice of the industry at EU level. he ECSLA provides its members with a T range of services, notably information and analysis on the latest relevant EU legislative developments, direct representation to the EU institutions and conferences and networking meetings.

The ECSLA offers customised services to the different segments in the market: * National associations of cold stores and distribution companies; * Individual public refrigerated warehouse, cold store and logistics operators; * Suppliers of product/services to the industry; * Scientists, researchers, universities, institutions, etc.

It offers to its members genuine monitoring of and lobbying services with European and international institutions on different policy areas, from food safety and food hygiene to environmental performance and energy efficiency in cold stores.

The focus of the organisation is on assisting warehouse and logistics operators with improving their performance and at the same

time helping members to reduce operational costs. Indeed, the ECSLA currently represents a capacity of more than 60 million cubic meters of cold storage.

The presence of ECSLA in Brussels has helped to represent the interests of the cold logistics companies with the European decision makers and has contributed to the development of a legislative and economic framework addressing the competitiveness of the industry.

For example, the ECSLA has joined forces

tains contacts with suppliers, academics, wholesalers, politicians and participants within the industry across the world, and the conferences provide the opportunities to discuss the most important problems and challenges within the sector.

Derk van Mackelenbergh, president of the ECSLA.

with other stakeholders of the European logistics sector in order to raise awareness about the challenges of the industry across the supply chain. In June, the ECSLA participated in the fifth event of the European Logistics Platform (ELP) in the European Parliament where 50 EU policymakers and industry stakeholders came together to discuss how to increase the value and the potential of the logistics and supply chain sector in Europe.

New Leadership The ECSLA has been under a new leadership team since the start of the year. The new president is Derk van Mackelenbergh, chief executive of Eurofrigo, a cold storage and logistics company based in the Netherlands. Derk van Mackelenbergh is an industry veteran with extensive experience of the international association world, who participated in the ECSLA’s management transition process in 2013.

Derk van Mackelenbergh’s experience will be invaluable as the ECSLA sets about innovating, while conserving the best of what is already in place. This includes affiliation with the US-headquartered Global Cold Chain Alliance, where Derk van Mackelenbergh is well-known.

“We are a modern industry and we want a modern organisation to defend our interests in Brussels, Strasbourg and in national capitals,” he says. “We are going to build that fast, strengthen our voice at EU level and work to get a joined up approach across the EU’s member countries.”

Christine Weiker is the new secretary general of ECSLA, responsible for both the critical EU representation and lobbying brief, as well as for member services. These roles were

Benefits For Members Membership of the ECSLA offers many benefits to cold store and logistics operators including being kept up to date with the latest legislative and technological developments.

Members also conduct industry surveys, set benchmarks and share their experiences and discuss key industry trends and developments.

The ECSLA organises two conferences annually in the Spring and Autumn. The conferences bring members together and put them in The ECSLA currently represents a capacity of more than 60 contact with other key players in million cubic meters of cold storage. the industry. The ECSLA mainFOOD & DRINK BUSINESS EUROPE, OCTOBER 2014

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STORAGE

Christine Weiker, secretary general of ECSLA.

split following the integration of the GCCA European Division into ECSLA in 2012, until the retirement of the long-serving former managing director Theo van Sambeeck at the end of 2013. Strategy development and day-to-day running of ECSLA is now handled by association services and EU government relations firm Eamonn Bates Europe in Brussels, after a competitive tender process in mid-2013.

LOGISTICS

iour.

“A trend we see is that companies integrate more and more services in their portfolio as third party logistics providers. They offer complete solutions for their clients and therefore cover a bigger segment within the temperature controlled logistics supply chain. We also notice more co-operation between companies as well as the creation of European and international networks, to be able to offer solutions for both frozen and fresh,” points out Christine Weiker.

She adds: “There are other issues as well, such as the new Regulation on Fluorinated Greenhouse Gases or F-Gases, or the challenge of attracting work force and retaining them (for which companies have internal programs, organise Masters’ classes and cooperate

New Relevance “It’s an exciting prospect to steer ECSLA towards new relevance for its members and greater prominence in Brussels,” says Christine Weiker. “Top priorities will be to help CEO’s across our industry better understand the impact of EU decisions on their business operations and on their bottom lines and ensure ECSLA becomes a more pro-active and influential player at EU level.”

She is supported in her role by newlyappointed strategy and business development advisor, Eamonn Bates, a Brussels veteran with thirty years of experience of both association management and EU government relations strategy.

“In the old days, managers in companies controlled all the critical elements that would make their businesses a success,” says Eamonn Bates. “That’s no longer true. We live in a super-regulated society where political or policy decisions can make or break a business.

These are decisions that company executives don’t control. So the best top managers today are also effective lobbyists. We hope to make ECSLA the meeting place and training ground for the temperature controlled supply chain.”

Growth Potential The chilled and frozen food industry, including cold storage and logistics providers, is regaining momentum and offers growth potential in both Western and Eastern Europe, despite the ongoing economic challenges which have impacted consumer behav40

FOOD & DRINK BUSINESS EUROPE, OCTOBER 2014

with universities via their federations), but overall our sector of temperature controlled logistics is growing and we believe that it will also continue to grow in the future.”

Indeed, the revised rules EU rules governing the use of F-gases come into force on 1 January 2015 and supersede the existing European legislation that has been in place since 2006. The new EU law will ban fixed refrigeration systems containing F-gases with a Global Warming Potential (GWP) of 2,500 or more by 1 January 2020. This means that as of this date building a new cold store that uses F- Gases with a GWP above 2,500 as refrigerant will not be possible. Servicing and maintaining existing cold stores with recycled or reclaimed F-Gases above a GWP of 2,500 will be possible until 1 January 2030. J

Top 100 Frozen Food Companies in Western Europe

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STORAGE

LOGISTICS

I COLD STORAGE & LOGISTICS

Partner Logistics Leads the Way in Developing the Future of the Supply Chain artner Logistics is well-known within P the frozen food industry for designing, constructing and operating highly-automated state-of-the-art cold storage facilities in the UK and mainland Europe.

However, with a scattered landscape of logistics providers across Europe and in response to their customers changing requirements, the company has chosen to move beyond the four walls of the warehouse and evolve into a fully integrated logistics provider, proactively servicing the whole frozen food supply chain.

Eelco Schnabel, Commercial Director at Partner Logistics, explains: “As a company, we are looking to explore new opportunities and expand upon our services so that our customers not only choose Partner Logistics for their cold storage but come to us with their transport and distribution requirements as well. Our mission is to offer a fully integrated frozen supply chain network in Europe that takes care of the complete logistics process: from factory collection till delivery to our customers.”

Partner Logistics is working with carefully selected transport partners to offer end-toend integrated distribution alongside their primary cold storage and value-added services. The six Partner Logistics sites, which are based in Bergen op Zoom, Bodegraven and Waalwijk in the Netherlands, Ieper in Belgium and Wisbech and Gloucester in the UK, will be multi-functional and continue to offer a number of additional ser-

Partner Logistics are working with selected transport partners.

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vices such as stickering, repacking and VMI. The company is also linked up with multi-modal distribution specialists. For example, the Bergen op Zoom site, which is the largest cold store in Europe, ships products via barge to the harbours of Rotterdam and Antwerp. Furthermore there is an existing network available that distributes to Southern Europe by train.

The Wisbech site, which is the largest cold store in the UK.

Creating Competitive USPs For Customers Eelco Schnabel adds: “We want logistics to part of our customer’s USP - showing that, through using Partner Logistics, they can be cost-efficient, offer a wide range of highquality services and, ultimately, be more competitive. By Partner Logistics offering a fully integrated solution and providing a true ‘one-stop shop’, our customers are saving valuable time and can divert energy and resources into their core business functions.”

By utilising the skills and expertise of chosen partners and analysing the frozen supply chain process, both upstream and downstream of the warehouse, Partner Logistics is able to gain valuable insights into how best they can help their customers.

Eelco Schnabel says: “Through engaging in conversation with our customers and FOOD & DRINK BUSINESS EUROPE, OCTOBER 2014

Each year Partner Logistics oversee 5.5 million pallet movements.

probing them about their existing supply chain, we can work together to identify areas where we can add value, improved performance and reduce costs.”

One example is in improving supply chain sustainability. Partner Logistics is already leading the way in sustainable operations; its facilities have all been designed to the highest environmental specifications to offer a carbon footprint that is one of the lowest in the industry. On average the Partner Logistics sites use 50% less energy than the European Cold Storage and Logistics Association (ECSLA) best standard.

As well as sustainability, there are many other benefits to outsourcing the end-toend supply chain. Compared to companies that ‘go it alone’ and manage their own transport and storage, businesses that outsource see significantly reduced costs, greater flexibility, supported growth, and access to a team of reliable and highlyknowledgeable logistics professionals.

Eelco Schnabel concludes: “We have a clear vision for the future which sees Partner Logistics leading the way as a smart and innovative supply chain partner. The new strategy encapsulates our business strapline of ‘Together we deliver’, encouraging a partnership approach with our logistics partners, customers and internally as colleagues and employees.”

For more information about the services Partner Logistics offer, please visit www.partnerlogistics.eu. J

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SUSTAINABILITY

Light Weight on Your Bottom Line – Even Lighter on the Planet! id you know The Climate Change Act D commits the UK to reducing emissions by at least 80% in 2050 from 1990 levels, and the Airlines Industry has committed to achieving carbon-neutral growth by 2020? Meaning that aviation’s emissions will not grow even as demand increases.

Amidst the Climate Change agenda, recent years have seen rising costs and

shortages in the timber pallet market that are predicted to continue for the long term.

The Alternative Pallet Company understands that freight logistics and the supply chain in the Food and Drinks sector runs on tight margins where the requirement to save costs and demonstrate environmental responsibility is paramount.

The Alternative Pallet Company’s PALLITES® are manufactured from upcycled waste materials from the paper industry and are 100% recyclable after use.

Being ultra lightweight, PALLITES® actively reduce environmental impact in logistics, thus contributing to both commercial and carbon savings.

PALLITE® usage aligns with IATA to play a significant role in reducing the load weight for air freighted goods that achieves an immediate reduction in carbon

FOOD & DRINK BUSINESS EUROPE, OCTOBER 2014

emissions and fuel use. Similarly using PALLITES® to ship freight by road, rail or sea will achieve a corresponding carbon emissions reduction, reduced fuel usage and commercial savings.

PALLITES® have ISPM15 exemption for easy international border crossing, and are hygienically clean, thus allowing their use deeper into clean manufacturing environments. Their robust design ensures that PALLITES® are built to match the performance of their identical competitors, and with added advantage of being compliant with automated systems.

PALLITES® are available both in the standard sizes and bespoke sizes to align with specific client needs.

Want to know more? Contact Marketing & Sales on (01933) 283920 or visit www.pallite.co.uk J

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I SOFT DRINKS

British Sales of Sports and Energy Drinks Surpass £1.5 Billion New research from Mintel reveals that half (54%) of British consumers claim to often feel tired, rising to six in ten (60%) women. In line with this, throughout the economic downturn the sports and energy drinks market saw steady growth, rising from £1 billion in 2009 to an estimated £1.5 billion in 2014. oday, three quarters (75%) of Brits say they are more fun to be around when they’re feeling energetic (rising to 82% of women) and 64% say they get irritated easily when they’re tired (rising to 75% of women). Further to this, it seems that many have been looking to fight their fatigue with sports and energy drinks as 61% of Brits have drunk a sports drink and 46% an energy drink in the past year.

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Sports Drinks in Decline However, despite its relatively high penetration, the sports drink market is declining - with sales of this drink down from 173 million litres in 2011 to a predicted 156 million litres in 2014, falling in value terms by 15% from £236 million to £218 million over the same period. This comes despite sales of energy drinks rising from 454 million litres to an estimated 550 million litres between 2011 and 2014, rising from £1 billion in 2011 to a predicted £1.3 billion in 2014. Indicating the continued strong performance of the energy drinks sector, sales are expected to rise to 647 million litres in 2019, compared to the sports drink sector which is expected to sink to 115 million litres.

David Zhang, Research Analyst at Mintel, comments: “The growth of the sports and energy drinks market has slowed down dramatically over the past couple of years since peaking in 2011, due to the ailing sports drink market. The decline in sales of sports drinks at a time when sports participation is rising highlights that consumers are opting for other sources of hydration when undertaking sports. With strong overlap between users of sports and energy drinks, cross-category competition between the segments looks likely to remain intense.”

The UK sports and energy drinks market has exhibited steady growth, rising from £1 billion in 2009 to an estimated £1.5 billion in 2014.

When it comes to energy drinks, over three-quarters (77%) of Brits would like clearer information on what the different ingredients in the energy drinks do and 43% would be interested in trying energy drinks made with all natural-ingredients in the future. Furthermore, 72% would like clearer information on what each ingredients in sport drinks do and 44% would be interested in trying sport drinks made with all-natural ingredients.

In addition, it seems that there are further questions among consumers about the effects of energy drinks with 69% of Brits saying it’s hard to know how much energy drink it is safe to drink per day and 62% agreeing it would be a good thing for supermarkets to impose an age limit on

Natural High Indeed, the research shows that there is strong consumer demand for sports and energy drinks providing a natural high.

FOOD & DRINK BUSINESS EUROPE, OCTOBER 2014

the purchase of energy drinks. Meanwhile, highlighting the shift in demand in the sports drink market, over two-thirds (68%) of Brits think it’s hard to tell if sports drinks actually work and one in five (21%) say that they are beneficial to athletes only.

Market Differentiation David Zhang continues: “The high proportion of consumers wanting to understand how energy drink ingredients work offers a way for brands to differentiate themselves in the market by highlighting the ingredients used. Also, as functional claims are highly regulated, this interest suggests scope for brands to move the focus onto the various ingredients or the unique formula of their drinks in their marketing campaigns.”

Finally, despite their ‘on-the-go’ positioning, Mintel’s research shows that sports and energy drinks are mostly consumed in the home with 55% of Brits who drink sports drinks and 47% of those who drink energy drinks consuming them there. In contrast, just 24% of those who drink sports drinks consume them at the gym, compared to 26% for energy drinks. J 45

Open For Business 24 Hours a Day, 365 Days a Year hanks to an innovative search engine T called Prospector®, food and drink manufacturers now have a new way to find and access ingredients easily The food and beverage industry is one of the fastest-paced markets in the world.

Manufacturers have to react quickly in order to satisfy demand for innovations and to reach new consumers with products that fit with the latest health and lifestyle trends or flavors. This rapid pace is a real challenge for R&D: Concepts have to be developed quickly and the time it takes to transfer them into real products on retailer shelves has to be minimal. But creating new products can be very time intensive. And even before they reach the formulation stage, the search for the right ingredients often causes annoying delays.

Prospector® from US-based product safety specialist UL (Underwriters Laboratories) offers a solution to this problem: As a comprehensive database of food and beverage ingredients, it provides access to a vast range of suppliers and ingredients in one on-line marketplace that’s open for business 24 hours a day, 365 days a year.

certification details and starter formulations. These documents are linked to the relevant personnel to enable direct contact for sample enquiries and other queries. With its high degree of transparency, Prospector® makes it easy to compare what’s on offer: For example, when searching by ingredients, products from multiple suppliers are shown and official documentation can easily be viewed or downloaded at the click of a button.

Reliable and Free to Use Using Prospector® is free of cost; manufacturers simply have to register. After registration, all of the site’s many functions can be used. Offering far more than ingredients, the database also lists suppliers of additional services and food manufacturing equipment.

Prospector® is accessible to users all over the world and is available in several languages: English, German, Spanish, French, Portuguese and Chinese.

UL understands that fast access to reliable technical information and contact details is vitally important for manufacturers. Discussions with R&D formulators from different companies have revealed again and again that researching ingredients is still a very time consuming and ultimately frustrating process that takes valuable time away from

Finding the Right Ingredients The database contains technical information on more than 70,000 food and beverage ingredients from thousands of suppliers. The search is extremely simple and flexible: visitors can perform a keyword search or search by supplier, ingredients category or application type. Manufacturers who visit the site will find everything they need to know in the extensive array of technical datasheets, safety information, FOOD & DRINK BUSINESS EUROPE, OCTOBER 2014

product development. It seems surprising that this should be the case in this day and age, but although our modern world is so highly connected, a dynamic tool that brings manufacturers and suppliers together has been lacking for a long time.

Easy Updating The highly dynamic nature of Prospector® ensures that suppliers can easily update any changes in their portfolios, ingredients approval, certification or contact personnel as soon as they occur. “It’s obvious that a database is only as good as the information it contains”, explains Jill Frank, Food Industry Champion, UL Information & Insights. “When we were developing Prospector® we knew it had to be easy for suppliers to update their details so that manufacturers can trust they are receiving current information.“ More Than “Just” Ingredients Prospector® was launched in April this year and bundles together the search engines of both Innovadex and IDES. Each of these has its own particular strengths, and they meld together to create a perfect whole. Product developers and engineers profit from a powerful database of specialized raw materials and ingredients information.

Covering the whole supply chain, from ingredients and packaging to equipment solutions, the database offers real added value for food and drink manufacturers.

To find out more, visit ULprospector.com. J 47

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SWEETENERS

Changes in Consumer Behaviour Having Major Impact on Demand For High-intensity Sweeteners he high-intensity sweetener market is a T study in contrasts. Although new, natural sweeteners like stevia extract are gaining ground, consumption growth for high-intensity sweeteners as a class has slowed to near zero in North America and Europe, due, in part, to the decline in soft drink consumption in these regions. In contrast, demand for the entire range of high-intensity sweeteners remains strong in South America and Asia, according to new research from IHS, the leading global source of critical information and insight.

Growing concern over health and nutrition is driving increased interest in natural sweeteners. Stevia extract, which is derived from the leaves of the stevia shrub and grows naturally in South America, has been the primary beneficiary.

“Worldwide consumption of high-intensity sweeteners is largely dependent on production of diet carbonated soft drinks and low-calorie food,” says Marifaith Hackett, director of specialty chemicals research at IHS Chemical and principal author of the IHS Chemical Economics Handbook - High Intensity Sweeteners Report. “Beverages are the largest end-use for high-intensity sweeteners, followed by food, tabletop sweeteners, personal care products (such as toothpaste), and pharmaceuticals.”

Global Consumption ”Global consumption of high-intensity sweeteners for all applications totalled more than 139,000 metric tons in 2013. Global consumption of these products for sweetener applications totalled more than 129,000 metric tons in 2013, equivalent (in terms of sweetness) to more than 18 million metric tons of table sugar. The value of the market for highintensity sweeteners in sweetening applications was more than $2 billion dollars in 2013.”

China is the world’s largest source of high48

intensity sweeteners, accounting for more than 70% of world production in 2013. Indonesia was a distant second, followed by the US and Western Europe.

Diet soft drinks, low-calorie yogurt, and sugar-free jam taste as sweet as their “regular” counterparts because they contain high-intensity sweeteners, the IHS report notes.

Aspartame, sucralose, acesulfame K, saccharin and other high-intensity sweeteners have zero calories, but they are many times sweeter than table sugar. In addition, high-intensity sweeteners are non-cariogenic – they don’t cause cavities.

Growing Concerns “Growing concerns regarding obesity and the connection between diet and major diseases such as diabetes and heart disease have caused consumers to re-examine their diets and lifestyles and seek healthier alternatives, including low- or no-calorie versions of food and beverages,” Marifaith Hackett adds. “Highintensity sweeteners enable food producers to deliver reduced-calorie products that taste good. Sugar-free gum, for example, outsells regular gum.”

The use of high-intensity sweeteners by food producers can also be impacted by regulations, and an increasing number of national and local governments - concerned about the rise of obesity and diabetes - are considering taxes on high-calorie soft drinks and processed foods.

Notably, the IHS report states, the Mexican government recently enacted a tax on highcalorie processed foods, including carbonated soft drinks.

Decline in Soft Drinks Consumption In North America and Europe, consumption of soft drinks – a major end use for high-intensity sweeteners – is declining. As a result, demand for some artificial sweeteners is flat or decreasing in these regions. “We are seeing a significant shift in consumer behaviour and preferences in Western Europe and North America,” Marifaith Hackett points out.

“Health-conscious consumers are drinking fewer sodas. In addition, they are seeking out beverages and foods made with natural ingredients, including sweeteners such as stevia extract. The challenge for food producers is to find sweeteners that meet consumer expectations but also taste good and meet cost and performance parameters. When it comes to FOOD & DRINK BUSINESS EUROPE, OCTOBER 2014

taste, refined sugar remains the ‘gold standard’.”

Marifaith Hackett continues: “Beverage companies are slow to tinker with marquee products but they do experiment with new sweetener combinations when they introduce new products. For example, the Coca-Cola Company introduced Coca-Cola Life™, a reduced calorie soft drink sweetened with stevia extract and sugar, in Argentina and Chile in 2013. Coca-Cola Life will make its debut in US and UK markets in 2014.”

Natural Sweeteners According to the IHS report, the growing concern over health and nutrition is driving increased interest in natural sweeteners. Stevia extract, which is derived from the leaves of the stevia shrub and grows naturally in South America, has been the primary beneficiary of consumer interest, followed by monk fruit extract. Monk fruit, a green melon-like fruit from China, is a relative of watermelons and pumpkins. Both stevia and monk fruit have been used as sweeteners in their native countries for hundreds of years.

Marifaith Hackett comments: “Last year, global demand for stevia extract was slightly more than 2 thousand metric tons, which is quite small when compared to demand for some of the more established sweeteners such as saccharin or cyclamate, but demand is growing in both developed and developing markets, and by 2018, we expect demand for stevia extract to reach 3 thousand to 4 thousand metric tons annually.” J

The Coca-Cola Company introduced CocaCola Life, a reduced calorie soft drink sweetened with stevia extract and sugar, in Argentina and Chile in 2013. Coca-Cola Life will make its debut in the US and UK markets in 2014.