Food and drink business europe june 2015 issue by Colin Murphy

June 2015

2015

Food & Drink Business Website:

www.fdbusiness.com

C o n t e n t s

- 3-13 C OVER S TORY

- 65 D ISTILLING

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

Great Northern Distillery to play key part in the Irish whiskey renaissance.

- 15-33 T OP 100 S POTLIGHT Challenging times for Associated British Foods. Long-term outlook remains bright for Diageo.

PAGE 3

James Staughton, MD, St Austell Brewery Company.

- 74 C ONFERENCE & E XHIBITION Creating an efficient and sustainable food industry through data - 7th July, 2015 Motorcycle Museum, Birmingham.

P AGE 27

James Lousada, CEO, Carlsberg UK.

R EGULARS

Further progress for Arla Foods UK in a challenging market.

Information Technology . . . . . . . . . . 34 & 74

Mondelez UK is global innovation and R&D hub.

Energy & Environment. . . . . . . . . . . . . 35-37

Coca-Cola Enterprises GB to invest further in sustainable manufacturing.

PAGE 29

Andy Dawkins, MD, Faccenda Foods.

Bottling & Packaging . . . . . . . . . 42, 53 & 54 PAGE 5

Nestlé UK & Ireland emphasises sustainability and CSR.

Jeff van der Eems, CEO, United Biscuits.

Carlsberg UK – More than just a beer company.

Materials & Ingredients . . . . . . . 43, 75 & 76 Quality & Hygiene . . . . . . . . . . . . . . . . 44-47 Storage & Logistics . . . . . . . . . . . . . . . . . 52

Faccenda Foods moves up the pecking order.

Processing & Manufacturing . . 55-59 & 70-73

PAGE 49

Ramon Laguarta, CEO, PepsiCo Europe.

Continuous innovation keeps McCain ahead. Tangerine Confectionery’s fruitful development.

- 39 M EAT & P OULTRY

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

PAGE 13

John Polman, CEO, Unilever.

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- 49 B EVERAGES & S NACKS PepsiCo Europe remains focused on sustainable growth.

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PAGE 25

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FOOD & DRINK BUSINESS EUROPE, JUNE 2015

COVER STORY

The Top 100 Food and Drink Manufacturers in the UK and Ireland Food & Drink Business Europe presents its twentieth annual ranking of the top one hundred food and drink manufacturers in the UK and Ireland, while highlighting some of the key corporate developments within the industry during the past twelve months.

he Top 100 companies are - Müller Dairy, Müller Wiseman ranked according to their Dairies, Müller Minsterley and most recently available TM Telford. turnover figures, with preThe disposal will leave Dairy tax profits also listed. Businesses Crest focused on its profitable, listed range in scale from the predominantly branded, cheese, £116.6 million turnover St spreads, butter and whey operaAustell Brewery Company, the tions, which recorded revenues of leading independent brewer in £448.2 million and increased the South West of England and product group profit by 19.3% to the operator of 167 pubs, up to £66.9 million in the year ended Unilever’s refreshment and foods 31 March 2014. The proposed business, which achieved global deal is subject to the approval of sales of Eur21.5 billion (£16.6 the UK Competition and Markets billion) in 2014. Authority. The top 29 places are occupied by companies with a turnover in Supermarket Price Wars excess of £1 billion. UK meat James Staughton, managing director of St Austell Brewery Company, which A central feature of the past year and convenience food processor is ranked 100th in the Top 100. has been the intensifying competiCranswick is the latest to join tion between UK supermarket this group having increased revenue by 1% ness is Dairy Crest, which is disposing of groups as the major players attempted to to £1.003 billion for the year ended 31 its dairy operations for £80 million to halt the flow of shoppers toward discount March 2015. Müller UK & Ireland Group. The business chains Aldi and Lidl by cutting prices. This An existing £1 billion turnover company being sold comprises Dairy Crest’s fresh resulted in the UK grocery market actually that is substantially streamlining its busi- liquid milk, flavoured milk including the contracting for the first time since Kantar FRijj brand, bulk and pot- Worldpanel started its analysis in 1994 ted cream, bulk butter and with deflation reaching a record low of milk powder operations, 1.6%. including dairy facilities at The ongoing supermarket price war has Severnside, Chadwell increased margin pressure on suppliers and Heath, Foston and the number of UK companies involved in Hanworth together with around 70 depots. In the year ended 31 March 2015 Dairy Crest’s Dairies operations recorded revenue of £881.6 million. Müller UK & Ireland Group is wholly owned by Germany-based Unternehmensgruppe Theo Müller. A feature of the past year has been the intensifying competition It operates nine dairies and between UK supermarket groups as the major players attempted to ten depots in the UK and halt the flow of shoppers toward discount chains Aldi and Lidl by employs almost 6,000 peocutting prices. ple across four business units Mark Allen, chief executive of Dairy Crest. FOOD & DRINK BUSINESS EUROPE, JUNE 2015

the value also increased from £5.8 billion to £6.7 billion, according to leading business and financial advisory firm Grant Thornton. This level of activity shows no signs of abating with a total of 37 transactions involving UK and Irish targets and/or acquirers completed in the first quarter of 2015, similar to the four previous quarters, driven by consolidation of

small and medium sized targets in a business environment where only the strong will survive. “Brands are under pressure and producers are responding by taking a hard look at their businesses, both for the potential to become more efficient, but also to look at new routes to market and whether they have the right mix in their portfolios to be

Jeff van der Eems, chief executive of United Biscuits, which was sold for £2 billion to Yildiz Holding.

food production which entered insolvency increased by 28% in 2014, amounting to 146 food producers compared to 114 in 2013, according to research by Moore Stephens, the leading accountancy firm. UK grocery share figures from Kantar Worldpanel, published for the 12 weeks ending 26 April 2015, show supermarket sales have slowed to a revenue growth of 0.2% compared to last year. Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel, explains: “Growth in the market has declined thanks to a record low for grocery price deflation: a typical basket of everyday items is now 2.1% cheaper than it was in 2014. Lower costs are the result of both falling commodity prices and the ongoing supermarket price war, with all major retailers offering cheaper like-for-like goods. This is good news for consumers, saving the average household £20 in the last three months. But many of the country’s largest grocers have struggled to enjoy substantial growth, with lower prices taking £532 million out of supermarket tills.” M&A Activity Intense competition within the UK grocery market continues to fuel merger and acquisition activity in the food and drinks industry. Deal activity increased during 2014 with the number of transactions up 13% on 2013 (153 deals against 125) and

Company 1 (1) Unilever (Refreshment & Foods) 2 (2) Associated British Foods 3 (3) Diageo 4 (4) Kerry Group 5 (6) Boparan Holdings

Turnover

Pre-tax Profits

Ownership/Status

£16.58b £12.94b £10.26b £4.43b £3.42b

£3.19b* £1.02b £2.71b £428.1m -£163.3m

6 (7) Glanbia 7 (5) Tate & Lyle 8 (12) Arla Foods UK

£2.71b £2.69b £2.41b

£134.0m £51.0m -£18.8m

9 (16) Heineken UK

£2.08b

-£45.8m

10 (21) Mondelez UK 11 (9) Coca-Cola Enterprises

£1.83b £1.79b

£51.2m £237.0m

12 (8) ABP Food Group

£1.77bE

£1.75b £1.69b

£25.2m £15.6m

plc plc plc Irish co-op/plc Incorporating 2 Sisters Food Products – Independent Irish co-op/plc plc Arla Foods, Denmark/Sweden Heineken, Netherlands Kraft Foods, US Coca-Cola Enterprises, US Formerly Irish Food Processors - Irish independent Nestle, Switz. Independent

13 (13) Nestle UK 14 (14) Bakkavor Group 15 (10) Ornua (formerly Irish 16 17

Stefan Descheemaeker, chief executive of Iglo Group.

Dairy Board) £1.64b (11) Princes £1.61b (-) Muller UK & Ireland Group £1.50bE

£17.7m £65.2m na

18 (19) MolsonCoors Brewing

£1.35b

-£9.0m

19 (18) Britvic plc 20 (17) Dairy Crest

£1.34b £1.33b

£120.1m £22.1m

Irish dairy co-ops Mitsubishi, Japan Alois Muller, Germany Molson Coors Brewing, US plc plc

Source: KEY NOTE, Irish Times, company accounts. * operating profits. Eur = £0.77. Figures in brackets indicate previous year’s rankings.

FOOD & DRINK BUSINESS EUROPE, JUNE 2015

competitive in today's harsh environment,” explains Trefor Griffith, partner and head of Food and Beverage at Grant Thornton. “Portfolio optimisation, which involves companies both rationalising the size of their portfolios and also acquiring new, often faster growing businesses continues to be one of the key investment themes driving M&A activity in the food and beverage sector.” A deal of this nature was the acquisition of Merseyside-based Aimia Foods for $80 million (£50 million) by Cott Beverages to accelerates its diversification strategy, bringing a strong hot and cold beverage platform and multiple food service rela-

Company 21 (24) Greene King 22 (22) Greencore 23 (23) Moy Park 24 (15) Iglo Foods Holdings 25 (28) William Grant & Sons Holdings 26 (26) Tulip

The UK beer market returned to volume growth in 2014 after five consecutive years of decline.

Turnover £1.30b £1.27b £1.20b £1.16b

Pre-tax Profits £105.2m £44.4m £33.8m £235.6m*

Ownership/Status plc plc Marfrig, Brazil Nomad Holdings

£1.12b £1.12b

£138.0m* £26.0m

27 (25) AB InBev UK

£1.11b

£12.6m

28 (27) Hilton Food Group 29 (30) Cranswick 30 (31) Carlsberg UK 31 (32) Chivas Bros

£1.09b £1.00b £991.7m £920.6m

£25.2m £52.8m £11.3m £416.0m

32 (20) United Biscuits (UK)

£907.0m

£546.3m

33 (36) HJ Heinz Manufacturing UK £848.8m

£149.9m

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

nd £100.6m -£59.2m £49.7m £33.5m -£135.6m £4.6m

Independent Danish Crown, Denmark Anheuser-Busch InBev, Belgium plc plc Carlsberg, Denmark Pernod Ricard, France Yildiz Holding, Turkey Kraft Heinz Co, US Irish independent Mars, US plc plc Independent plc independent

£845mE £833.5m £815.3m £804.0m £791.4m £767.4m £716.0m

Source: KEY NOTE, Irish Times, company accounts. * operating profits. Eur = £0.77. Figures in brackets indicate previous year’s rankings.

FOOD & DRINK BUSINESS EUROPE, JUNE 2015

tionships into its portfolio. Cott Beverages is the UK subsidiary of Cott Corporation, the world’s largest supplier of retailer brand soft drinks. Also in soft drinks, AG Barr acquired Funkin, a producer of cocktail mixers and syrups, in a deal worth up to £21 million. The acquisition strengthens AG Barr’s portfolio, and takes the group into a new segment of cocktail mixers. A similar move within the UK bakery sector saw Finsbury Food Group, one of the UK’s leading cake and bread bakery goods manufacturers, acquiring Fletchers Group, which supplies morning goods and specialist bread products to leading UK grocery retailers and food service customers, for £56 million from private equity firm Vision Capital. The enlarged group has become one of the largest speciality bakery groups in the UK, with sales of more than £270 million and a broad spread of customers across the food retail and food service channels. Biggest Deal The biggest deal involving a Top 100 company during the past twelve months involved the sale of United Biscuits for £2 billion to Yildiz Holding, Turkey’s largest food and beverages group. The deal made Yildiz the world’s third largest biscuits manufacturer. United Biscuits is the leading manufacturer and marketer of biscuits in the UK and second largest in the Netherlands, France, Belgium and Ireland. Among United Biscuits’ popular brand names are McVitie’s, Penguin, go ahead!, McVitie’s Jaffa Cakes, Jacob’s Cream Crackers, Twiglets, Mini Cheddars and Carr's in the UK, and BN, Delacre, Verkade and Sultana in Continental Europe. United Biscuits is a £1.3 billion turnover business which owns and operates 16 manufacturing facilities, of which seven are in the UK. Yildiz Holding acquired United Biscuits from private equity firms Blackstone Group and PAI Partners, which had purchased the UK-based biscuit and snacks group for £1.6 billion in 2006. United Biscuits subsequently disposed of its KP

Giles Turrell, chief executive of Weetabix.

As a leading provider of barcode traceability solutions, software and professional services, we enable our clients to capture and process information in real time. We specialise in innovative technologies including RFID and mobile computing to automate processes across the organisation

Snacks business in 2012 for £500 million to German-based Intersnack, one of the largest manufacturers of savoury snacks in Europe. Yildiz Holding’s acquisition of United Biscuits reflects the growing interest in well-established western brands by buyers in emerging markets. For example, Bright Food, one of China’s largest food groups, has now purchased the remaining 40% of Weetabix, the second largest branded manufacturer by value of ready-to-eat cereals and cereal bars in the UK, having initially acquired a 60% stake from private equity firm Lion Capital for £720 million in late 2012. Acquiring full ownership of Weetabix cost Bright Food £1.2 billion. £1 Billion-plus Acquisitions Another deal worth more than £1 billion completed during the past year was the sale of Iglo Group for Eur2.6 billion (£1.9 billion) by Permira to fellow private equity group Nomad Holdings. Under the Permira‘s ownership, Iglo Group established itself as Europe’s largest frozen food business with iconic brands including Birds Eye in the UK and Ireland, Iglo in Germany and other continental European markets, and Findus in Italy. Iglo Group has achieved leadership in seven out of the twelve countries in which it operates, including the UK, Germany and Italy, which account for about 85% of sales.

Stella David, chief executive of William Grant & Sons.

The company recently reported revenues of Eur1.5 billion and EBITDA of Eur306 million for the 2014 financial year. Meanwhile, Diageo has completed the acquisition of a further 26% of United Spirits for £1.117 billion to increase its stake in India’s largest spirits group from 28.8% 54.8%. India has now become one of Diageo's largest markets and will be key to the group’s growth ambitions. Diageo has also strengthened its portfolio and its position in Mexico by acquiring

The British brewing industry is growing at over 10% a year, with nearly all new breweries producing caskconditioned real ales as their core products.

Company 41 (42) Hovis

Turnover £654.6m

Pre-tax Profits £21.9m*

42 (41) Dairygold Co-op 43 (44) Kepak 44 (49) First Milk 45 (46) Edrington Group 46 (48) Noble Foods Group

£653.6m £650mE £610.5m £607.7m £603.2m

£20.9m nd -£4.3m £159.4m £26.1m

47 (47) Young’s Seafood

£595.6m

£36.5m

48 (50) Warburtons 49 (-) Karro Food Group 50 (51) C&C Group 51(60) Faccenda Foods

£562.1m £533.0m £526.6m £520.0m

£36.3m -£3.3m £81.7m £15.0m

52 (-) Lucozade Ribena Suntory 53 (53) Lakeland Dairies 54 (54) Sun Valley Foods 55 (52) Birds Eye 56 (56) McCain Foods GB

£489.2m £481.9m £451.2m £446.3m £444.8m

£15.9m £8.4m -£8.0m £62.7m £54.7m

57 (64) Meadow Foods 58 (57) Heineken Ireland

£420.7m £367.3m

£11.3m nd

59 (61) Weetabix

£366.4m

£116.0m

60 (58) Irish Distillers Group

£345mE

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

Source: KEY NOTE, Irish Times, company accounts. * operating profits. Eur = £0.77. Figures in brackets indicate previous year’s rankings.

FOOD & DRINK BUSINESS EUROPE, JUNE 2015

breweries producing cask-conditioned real ales as their core products, according to CAMRA (Campaign for Real Ale). The growth is being fuelled by small independent breweries, which are being launched across all regions of Britain. SABMiller Enters Craft Beer Market Reflecting the growing popularity of craft beers, SABMiller, the world’s second largest brewer, has entered the market

through the acquisition of London-based modern craft brewer Meantime Brewing Company for an undisclosed price. With beer volumes up by 58% in 2014, outpacing the overall beer market’s 1.3% growth, Meantime is one of the top-performing modern craft breweries in the UK. SABMiller plans to grow sales of Meantime’s beers nationally, complementing its imported super-premium lagers such as Peroni Nastro Azzurro and Pilsner Urquell, and explore export oppor-

Mike Gallacher, chief executive of First Milk.

full ownership and control of the Tequila Don Julio brand from Casa Cuervo, the Mexican tequila and spirits group. The deal entailed Diageo selling the Bushmills Irish whiskey business to Jose Cuervo and resulted in a net payment of $408 million (£260 million) to Diageo. UK Beer Market Returns to Growth A feature of the past year has been a return to volume growth by the UK beer market after ten consecutive years of decline with sales up by 1.3% in 2014. However, volume sales of cider fell by 0.8% in 2014 and value sales grew by just 1% to £3.05 billion, according to Mintel. This contrasts with the robust growth the category experienced in previous years, with value sales rising by 10% in 2012 and 6% in 2013. The British brewing industry has benefited from the continued growth of craft beer, which is the fastest-growing segment of the UK beer market. With more than 1,200 breweries currently in production across the country, Britain has the highest number of breweries since the 1930s and 1940s and more breweries per head of population than any other country in the world. The British brewing industry is growing at over 10% a year, with nearly all new

Agust Gudmundsson, chief executive of Bakkavor

Company Turnover 61 (65) Burton’s Biscuit Company £336.0m

Pre-tax Profits £22.3m

62 (74) Foyle Food Group 63 (78) JW Galloway 64 (62) Bernard Matthews 65 (-) Refresco Gerber UK

£317.2m £308.9m £306.8m £300.0m

-£2.3m -£2.9m -£8.5m -£2.5m

66 (66) Cott Beverages

£296.9m

£130.8m

67 (80) Dale Farm

£292.8m

£4.0m

68 (70) Fuller Smith & Turner 69 (67) Icelandic Group UK

£288.0m £278.7m

£33.5m £1.3m

£275.0m

£3.4m

£272.6m £268.5m £265.9m

-£1.5m £15.5m -£9.5m

74 (75) AG Barr 75 (85) Ferrero UK

£260.9m £259.7m

£38.6m -£4.0m

76 (76) Wrigley Company 77 (68) Whyte & Mackay Group

£245.2m £231.1m

£63.9m £12.1m

78 (81) Halewood International 79 (-) Thorntons 80 (82) McCormick UK

£226.8m £222.4m £221.3m

-£0.1m £6.0m £8.9m

70 (73) Yeo Valley Group 71 (72) The Real Good Food 72 73

Company (79) William Jackson & Son (-) KP Snacks

Ownership/Status Ontario Teachers' Pension Plan, Canada Independent Independent Independent Refresco Gerber, Netherlands Cott Corporation, Canada United Dairy Farmers Group plc Icelandic Group, Iceland Independent plc Independent Intersnack, Germany plc Ferrero International, Switzerland Mars, US Emperador, Phillipines Independent Plc McCormick, US

Source: KEY NOTE, Irish Times, company accounts. * operating profits. Eur = £0.77. Figures in brackets indicate previous year’s rankings.

Group.

FOOD & DRINK BUSINESS EUROPE, JUNE 2015

be turning. BMI Research (a Fitch Group Company) predicts that primarily through the use of lower prices the big four will successfully counter attack in 2015. The research company does not expect discount food retailing to become as popular in the UK, where Aldi and Lidl currently account for less than 10% of the market, as in parts of continental Europe such as Germany where the share is about 30%. BMI Research concludes that the big winner will be the UK consumer and the big loser the food and drink manufacturers who supply to the retailers as their margins are squeezed further. J

John Polman, chief executive of Unilever, which heads the Top 100.

tunities in its European markets. Although until now, SABMiller had no production units in the UK, it has opened a new £3 million research brewery at the University of Nottingham, putting England at heart of its global brewing research. Furthermore, SABMiller has its primary listing on the London Stock Exchange. Brewing and Pubs Industry Growth in the brewing and pubs industry has been helped by successive cuts in beer duty by the British Government. A major development within the market is Greene King’s agreed acquisition of Spirit Pub Company in a £774 million deal, which will create the country’s leading managed pub operator with over 3,100 pubs, restaurants and hotels, with over 1,000 in London and the south east of England. The combined Greene King/Spirit business will have revenue in excess of £2.1 billion and EBITDA of approximately £49 0 million. Integration of the two companies is expected to yield significant operational efficiencies and cost savings of at least £30 million. However, the deal has been referred to the Competition and Markets Authority, although Greene King still expects to complete the acquisition by the end of June. Another leading brewer and pub operator, Marston’s, has agreed to acquire the beer division of Daniel Thwaites for a total cash consideration of £25.1 million. The acquisition includes two leading, premium brands - Wainwright and Lancaster Bomber ales. The acquisition is consistent with Marston's brewing strategy to focus on popular premium ales with local and regional appeal, and provides an opportunity to capitalise on the developing free trade market and wider consumer interest in the beer category. Continued Margin Squeeze While the big four UK food retailers – Tesco, Sainsbury, Morrisons and Asda – have seen their market share eroded by discounters Aldi and Lidl, the tide may

Company Turnover 81 (-) Innocent £202.2m 82 (84) Coca-Cola HBC Northern Ireland £197.2m

83 (-) Charles Wells 84 (83) Lactalis McLelland 85 (89) Menderley Food Group

Pre-tax Profits £9.5m

Ownership/Status Coca-Cola, US

£7.1m

Coca-Cola HBC, Greece Charles Wells Lactalis, France

£187.1m £186.0m

£8.2m £2.3m

£179.0m £175.7m £169.7m £160.7m £160.6m

£6.4m £6.6m £4.9m £0.1m £16.1m

90 (-) Pork Farms Group 91 (-) Symington’s 92 (98) Kellogg Co of GB

£152.6m £148.3 m £139.1m

-£12.3m £5.0m £29.0m

93 (94) Daniel Thwaites 94 (95) Shepherd Neame 95 (97) Walkers Shortbread 96 (-) Marlow Foods 97 (96) Lantmannen Unibake UK

£138.7m £138.7m £137.1m £137.1m £136.3m

-£3.8m £7.7m £14.5m £19.8m -£6.0m

£128.1m £123.0m

£8.4m £1.7m

Independent plc Independent Independent PAI Partners, France Indendent Independent Kellogg Company, US plc plc Independent Independent Lantmannen, Sweden Independent Independent

£116.6m

£10.4m

Independent

86 87 88 89

(Tayto) (86) Finsbury Food Group (-) Tangerine Confectionery (90) Baxters Foods Group (91) R&R Ice Cream UK

98 (100) Aston Manor Brewer 99 (99) SA Brain & Co 100 (-) St Austells Brewery Company

Source: KEY NOTE, Irish Times, company accounts. * operating profits. Eur = £0.77. Figures in brackets indicate previous year’s rankings. FOOD & DRINK BUSINESS EUROPE, JUNE 2015

I TOP 100 – 2ND

Challenging Times For Associated British Foods With annual turnover of £12.9 billion and pre-tax profits of £1.02 billion, Associated British Foods is one of the UK’s and Europe’s largest food groups and ranks second in the Food & Drink Business Europe Top 100. owever, with group operating profits in decline, ABF faces significant challenges. ABF is a long established diversified international food, ingredients and retail group operating in 47 countries. Its activities are divided into five business segments –Agriculture, Retail, Sugar, Grocery, and Ingredients. AB Agri is at the heart of the UK agricultural industry supplying technology-based products and services to farmers, feed and food manufacturers, processors and retailers. It also buys grain from farmers and supplies crop inputs via its joint venture arable operation, Frontier. Through a number of businesses operating across the agricultural supply chain, AB Agri manufactures high performance compound feeds, provides world leading analytical services, nutritional advice and poultry marketing services for customers. It provides an added value service to the food, drink and bioethanol companies internationally by marketing their co-products as animal feed. It also supplies the livestock and pet industries with premixes, enzymes and other technical ingredients. Primark is ABF’s retail textile business with operations across the UK, Republic of Ireland, Spain, Portugal, Germany, the Netherlands, Belgium and Austria.

Food and Ingredients Businesses AB Sugar, ABF’s sugar processing business, is a leading multinational in the growing market for sugar and sugar derived products and co-products. In the EU, Azucarera is the major producer in Iberia and British

George Weston, chief executive of Associated British Foods.

Sugar is the sole processor of the UK sugar beet crop and supplies half the UK’s requirement for sugar. Illovo is the largest sugar processor in Africa and is one of the world’s foremost low-cost producers. The group has substantial businesses in China with cane sugar in the south and beet sugar in the north east. AB Sugar operates 31 plants in ten countries and is capable of producing some 5 million tonnes of sugar and 600 million litres of ethanol annually. ABF’s Grocery business produces a range of both branded and private label products across three continents. Some of its best known household brands include Twinings, Ovaltine, Ryvita, Kingsmill, Silver Spoon, Tip Top, Mazola and Spice Islands. George Weston Foods in Australia enjoys a 75% penetration of Australian households and Tip Top is the country’s leading food brand. The Ingredients business comprises AB Mauri and ABF Ingredients. AB Mauri has a major global presence in bakers’ yeast, with significant market positions in the Americas, Europe and Asia. It is a technology leader in, and supplier of, bakery ingredients. ABF Ingredients markets enzymes, lipids, yeast extracts and cereal specialities worldwide, with manufacturing facilities in Europe and the US. FOOD & DRINK BUSINESS EUROPE, JUNE 2015

Financial Performance For the year ended 13 September 2014, ABF reported a 3% decline in revenue to £12.9 billion with operating profit down 1% to £1.163 billion as adverse currency movements and commodity price deflation impacted performance at its sugar and food businesses. On a constant currency basis, group revenue increased by 1% and adjusted profit rose by 2%. With the prices of wheat, barley, corn oil, rice and sugar all falling during the year, ABF’s food businesses were unable to sustain the revenue growth achieved in recent years. However, ABF’s Agriculture, Grocery and Ingredients businesses managed to improve profit and margin. AB Sugar was impacted by the changes in the EU sugar regime.

Operating profit fell again in the first half ended 28 February 2015, down 5% to £474 million as group revenue grew by 1% on a reported basis. At constant currency, first half profits were 2% lower and revenues were 3% ahead. Significant progress was made in operating profit by the Agriculture and Ingredients businesses, and further improvement was achieved in the Grocery division’s margin. As expected, profitability at AB Sugar was substantially lower as a result of much weaker euro-denominated EU sugar prices. However, ABF remains confident that its well-invested sugar assets make it one of the world’s lowest cost sugar producers. J 15

I TOP 100 – 3RD

Long-term Outlook Remains Bright For Diageo Despite reporting a drop in profits and sales in its last financial year, Diageo continues to invest in building its brands and routes to the consumer, to deliver long term profitable growth. iageo’s operating profit before exceptional items declined by 10% to £3.134 billion and net sales fell by 9% to £10.258 billion for the year ended 30 June 2014, as the global drinks group’s top line was adversely impacted by foreign exchange factors and weakness in emerging market economies although stability returned to Western Europe. Net sales again declined on an organic basis in the nine months ended 31 March 2015, reflecting continued tough conditions in the emerging markets and subdued consumer demand in some developed markets, but Diageo has strengthened both its market reach and brands portfolio through acquisitions, principally United Spirits, during this period. Diageo now holds a controlling 54.78% in United Spirits, the largest spirits group in India, at a total cost of £1.84 billion.

Diageo recently completed a Eur169 million (£122 million) expansion and modernisation programme at its famous St James’s Gate Brewery in Dublin.

Although the market environment across its global markets remains challenging, the long-term outlook for Diageo is bright. “The catalysts for a near term recovery of consumer spend in the emerging markets are still weak however the future growth drivers for this industry, its aspirational nature as consumers in the emerging markets see increasing disposable income, are undiminished,” says Ivan Menezes, chief executive of Diageo. “Diageo has leading brand and market positions and financial

Ivan Menezes, chief executive of Diageo.

strength and our recent acquisitions have given us a strong emerging market footprint. The opportunity for Diageo to realise our full potential and deliver our performance ambition remains an exciting one.” Key Strengths Diageo’s strength is in its geographic reach, with exposure to both emerging and developed markets, and its formidable brands portfolio. The group operates as 21 geographically based markets around the world and its products are sold in more than 180 countries. About 40% of Diageo’s business is in the emerging markets in Latin America, Asia, Africa, Eastern Europe and Turkey. This presence is balanced through strong businesses in the world’s most profitable beverage alcohol market, the United States, and an integrated Western European business. The brands portfolio includes Johnnie Walker, Crown Royal, J&B, Buchanan’s and Windsor whiskies, Smirnoff, Ciroc and Ketel One vodkas, Captain Morgan rum, Baileys cream liqueur, Don Julio tequila, Tanqueray gin and Guinness beer. Brand Leadership Indeed, Diageo’s brands are continuing to extend their leadership of the global spirits market, as reflected by their performance in FOOD & DRINK BUSINESS EUROPE, JUNE 2015

Impact Databank's most recent Top 100 Spirit Brands lists. Brands owned by Diageo, which for the first time includes United Spirits’ brands, now account for nearly a quarter of all volume in the top 100. With 14 brands in the top 100 by volume - including five in the top 20 - sales volume in litres for Diageo brands is now more than double that of its nearest competitor. Retail value has also increased with the United Spirits acquisition, with Diageo's spirits now accounting for over 28% of the value of all the top 100 brands, up from 23% last year. Overall Diageo owns 20 brands in the top 100 by value and seven in the top 20, more than any other company. For the eighth consecutive year, Smirnoff and Johnnie Walker have topped the rankings, as the number one brands by volume and value respectively. £1.1 Billion Investment Although Diageo is now a global business, its traditional home of Scotland and Ireland are still key production hubs for the business. Diageo has been investing heavily in its Scottish and Irish production facilities to support the continuing growth of its whisky and beer export businesses. Diageo has embarked upon £1 billion five-years investment plan for Scotch whisky production to meet growing global demand for its brands and also recently completed a Eur169 million (£122 million) expansion and modernisation programme at its famous St James’s Gate Brewery in Dublin, which is the home of Guinness, and where all Irish beer production has now been consolidated. J

Diageo’s strength is in its geographic reach and its formidable brands portfolio.

I TOP 100 – 8TH

Further Progress For Arla Foods UK in a Challenging Market Despite challenging local and global conditions, 2014 was a year of growth for Arla Foods UK, the largest dairy company in Britain. rmed with a powerful brands portfolio that includes Lurpak, Anchor and Cravendale – all ranked among the top 100 grocery brands in the UK – Arla Foods UK is the number one in fresh liquid milk, butter and spreads and dairy ingredients and the UK’s largest cheese manufacturer. The British business is part of Arla Foods, the global dairy company and cooperative owned by 13,500 dairy farmers across northern Europe, with about 3,000 in Britain. Indeed, the UK business generates 27% of Arla Foods’ global revenues and is its biggest market ahead of Sweden, Germany and Denmark. In line with group performance a strong first half of the year was impacted in the second half by downward pressure on worldwide prices for commodity products, driven by increased global supply and weakening demand, predominantly as a result of the Russian trade embargo on dairy products and weakening growth in China. In response, Arla Foods implemented a number of key measures to maximise revenue and minimise costs in order to continue delivering a leading milk price for its farmer owners.

Significant Developments Significant UK developments during the year included the official opening of the world’s largest fresh milk facility at Aylesbury, Buckinghamshire, the roll out of the biggest cheddar cheese contract in the company’s history and further measures to pave the way for the increased presence of the Arla brand in the UK market. Arla Foods UK launched a number of new products during the year including Anchor Cheddar, Lurpak Cook’s Range, and Cocio Chocolate Milk. Against a backdrop of declining category sales, key Arla Foods brands Lurpak, Anchor and Lactofree delivered growth and Cravendale was able to hold its share in an extremely competitive fresh milk category. To support business growth and strengthen its position as Britain’s number one dairy company, last year Arla Foods UK continued to invest significantly, not only at its state-of-the-art dairy at

The world’s largest fresh milk facility at Aylesbury in Buckinghamshire.

Aylesbury but also in new technology across several sites, such as its packing operation at Oswestry, Shropshire, where it has created new packing facilities for Anchor Cheddar and own label cheese. These investments will enable the business to create new and exciting product ranges in 2015 particularly for the Arla brand where the business will focus on the inherent naturalness of dairy. This investment will continue in 2015 with almost £40 million being spent by Arla Foods UK across its sites. Platform For Sustainable Growth “The UK business has delivered in a very challenging market and we have embedded some of the measures needed for sustainable growth in the long-term,” says Peter Giortz-Carlsen, executive vice-president of Arla Foods UK. “We are acutely aware of

Peter Giortz-Carlsen, executive vice-president of Arla Foods UK.

FOOD & DRINK BUSINESS EUROPE, JUNE 2015

the continuing challenge, but it is vital we remain firm in our approach to build an organisation that is competitive today and into the future.” Having invested over £650 million in its business since 2007 to create a solid operational platform, including its merger with Milk Link, opening the world’s largest fresh milk facility at Aylesbury and building a much improved supply chain, Arla Foods UK is now embarking on the next stage of its development to add value and bring innovation to the British dairy sector as well as meet future competition in what remains a challenging trading environment. Arla Foods UK plans to tighten its organisation through a restructure so that it can further invest in its commercial and marketing areas as well as become more agile, efficient and competitive. Peter Giortz-Carlsen continues: “Our focus remains on adding value to our owners’ milk by improving our efficiencies, and having a strong position across all our dairy categories and global brands as well as maximising our revenue by moving our milk into the categories that offer us the best returns. At the same time, we have implemented a number of measures to increase efficiencies and control costs. Together, focusing on increasing brand strength and operational efficiency should help us build upon the firm foundations already in place and ensure we stay competitive in 2015.” J 19

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I TOP 100 – 10TH

Mondelez UK is Global Innovation and R&D Hub US-based Mondelez International has become one of the UK’s biggest branded food manufacturers since acquiring Cadbury in 2010 for $19.5 billion. mploying more than 5,000 people across ten locations, including six manufacturing facilities and two Global Centres of Excellence for Research and Development, Mondelez UK produces some of the Britain’s most popular brands, including Cadbury and Bassett’s confectionery, Oreo biscuits, Kenco coffee and Philadelphia cheese spread. With a turnover of £1.8 billion, Mondelez UK ranks tenth in the Food & Drink Business Top 100.

Operations Mondelez UK’s factory at Bournville near Birmingham in England is the headquarters of Cadbury. In addition to producing chocolate confectionery such as Cadbury Dairy Milk and Creme Eggs, it also houses Mondelez International’s Global Centre of Excellence for Chocolate Research & Development, which was opened in 2012. Every new chocolate product created by Mondelez International for any of its chocolate brands anywhere in the world, starts life in Bournville. The site at Banbury is the home of Kenco and is the largest instant coffee plant in the Mondelez International network. It also incorporates the US parent group’s Global Centre of Excellence for Coffee Research & Development, which means it is the starting place for any new coffee product launched anywhere in the world by Mondelez International. Mondelez UK’s Sheffield factory produces sugar confectionery brands including Maynards, Trebor and Bassett’s. It is the

largest sugar confectionery plant in the Mondelez International’s European network. The Sheffield site has also been producing BelVita breakfast biscuits and Oreo cookies to supply markets in Britain, Ireland and continental European since 2013, following a £6 million investment in new lines. Mondelez UK’s other manufacturing sites are at Chirk in North Wales, at Marlbrook and at Crediton. In addition to the global R&D research centres at Bournville and Banbury, Mondelez UK also operates a science centre based on the University of Reading campus. The only global Mondelez International science centre outside of the US, the Reading Science

Centre focuses on the science behind the creation of new products. The centre researches and tests new and improved products, ingredients and processes for Mondelez International’s markets around the world.

Ongoing Investment Mondelez International is currently in the process of investing over £100 million in its UK manufacturing base as part of its strategy to meet growing demand for its products while improving competitiveness. It is investing £75 million over a three years period on upgrading the Cadbury factory and headquarters at Bournville. The investment programme entails the installation of new production lines and new equipment. According to Mondelez International, the investment will focus on improving capabilities, reducing costs and changes to ways of working that will help to close the Mondelez International is to invest £30 million in its Banbury factory competitiveness gap between to build two new lines that will manufacture Tassimo beverage Bournville and rival confeccapsules. tionery manufacturers as well FOOD & DRINK BUSINESS EUROPE, JUNE 2015

Mondelez UK’s factory at Bournville near Birmingham in England is the headquarters of Cadbury.

as sister factories in Germany and Western Europe. Since acquiring Cadbury in 2010, Mondelez International has invested more than £130 million in its UK operations. On the beverages side of its UK business, Mondelez International is to invest $50 million (£30 million) in its Banbury factory to build two new lines that will manufacture Tassimo beverage capsules. Tassimo is Europe's fastest growing single-serve system, brewing a wide variety of beverages including Jacobs and Costa coffees and Cadbury hot chocolate. Coffee Spin-off Having been created in October 2012 after being separated from Kraft Foods’ North American grocery business, Mondelez International is now in the process of spinning off its coffee business. The coffee portfolio will be combined with DE Master Blenders 1753 to create the world’s leading pure-play coffee company with revenues of $7 billion. The new joint venture, Jacobs Douwe Egberts, will be armed with some of the world’s top coffee brands, such as Jacobs, Gevalia, Kenco, Tassimo and Millicano from Mondelez International, and Douwe Egberts, L'OR and Pilao from DE Master Blenders 1753. Of course, the creation of Jacobs Douwe Egberts will entail the Banbury operation moving from Mondelez UK to the new global coffee group. DE Master Blenders 1753 and Mondelez International recently received conditional approval from the European Commission for the deal. J 21

I TOP 100 – 11TH

Coca-Cola Enterprises GB to Invest Further in Sustainable Manufacturing Coca-Cola Enterprises GB is investing £66 million into its operations this year, surpassing the £52 million spent in 2014 and bringing total investment by the business to nearly £300 million over the last five years. oca-Cola Enterprises GB employs some 4,000 people across England, Scotland and Wales at its various manufacturing sites and depots. In addition to Great Britain, Coca-Cola Enterprises is the sole licensed bottler for products of The Coca-Cola Company in Belgium, continental France, Luxembourg, Monaco, the Netherlands, Norway, and Sweden. Although part of a the world’s third largest independent Coca-Cola bottler, Coca-Cola Enterprises GB operates as a truly local business with 97% of its products made at six factories across Great Britain.

Leendert den Hollander, vice president and

Sustainability The current investment programme is a continuation of Coca-Cola Enterprises’ commitment to advance its business in all areas of operational efficiency but in a sustainable way. Among Coca-Cola Enterprises GB’s investments in 2014 were a Combined Heat and Power system at its Wakefield factory, Europe’s largest soft drinks plant by volume, which will save 1,500 tonnes of CO2 a year; the development of a new production line at Wakefield dedicated to making the iconic contour Coca-Cola bottle in larger PET packaging; and the completion of a new high-speed canning line at its Sidcup facility.

Coca-Cola Enterprises GB operates as a truly local business with 97% of its products made at six factories across Great Britain.

The new £16.6 million high-speed canning line at Sidcup, replacing an older line on-site, is the company’s only multi-for-

general manager of Coca-Cola Enterprises GB.

matted line in Great Britain designed to produce both the 150ml mini cans and 250ml slim line cans. The investment, which forms part of a £41 million investment by Coca-Cola Enterprises into manufacturing upgrades and facility developments at Sidcup over the past five years, will increase on-site production with the line’s capacity increasing from 57,600 cans per hour (cph) to 110,000cph. Coca-Cola Enterprises is committed to minimising the environmental impact of its products and operations, with a particular focus on sustainable packaging and recycling, water stewardship, and energy and climate protection. As well as increased production capacity, the new line will bring a number of sustainability benefits for the site. Most significantly, a 20% reduction in water usage as a result of new air powered can rinsers, which have replaced the water rinsers along the line. “At CCE, sustainability is in the DNA of everything we do - both for the environment and in our role as a British business,” says Steve Adams, director, Supply Chain Group Operations at Coca-Cola Enterprises GB. “We recognise that sustainability is just as much a societal issue as it is a concern for business, running through the communities where we operate, as well as being embedded within all aspects of the value chain.” FOOD & DRINK BUSINESS EUROPE, JUNE 2015

New ‘One Brand’ Strategy Earlier this year Coca-Cola Enterprises and The Coca-Cola Company introduced a new marketing approach in Great Britain and across other territories in Western Europe designed to unify the Coca-Cola portfolio of products – including CocaCola, Diet Coke, Coca-Cola Zero and Coca-Cola Life – under a new ‘one brand’ strategy to promote the full choice of CocaCola variants. The four Coca-Cola ranges had previously each had distinct individual designs and marketing strategies, targeted at different consumer groups. However, the new approach will entail a single advertising campaign featuring all the packs with a linked design. “We would like to extend the appeal of the brand across our other Coca-Cola variants and make the choice we offer much clearer to consumers. As a result, we expect that Great Britain will become the first country in the world where our lower and no-calorie products will account for more than 50% of our cola sales,” explains Leendert den Hollander, vice president and general manager of Coca-Cola Enterprises GB.

The Coca-Cola Enterprises GB chief continues: “This new approach is one of the important elements of our ambition to leverage our portfolio of 19 brands and 96 different products to ‘inspire sustainable soft-drinks choices’. To inspire, we need to bring new consumer ideas through product, packaging and commercial innovation. On choices, it’s about offering the right range and communicating it in a way that helps shoppers make the most appropriate decisions for themselves and their families. And we know that health is a key element of sustainable choices.” J 23

I TOP 100 – 13TH

Nestlé UK & Ireland Emphasises Sustainability and CSR Employing 8,000 people across 20 sites, Nestlé UK & Ireland ranks 13th in the Food & Drink Business Europe Top 100. estlé UK & Ireland produces some of Britain’s and Ireland’s best loved brands such as KitKat and Smarties confectionery, Buxton water, Nescafe coffee, Shreddies breakfast cereals and Go Cat pet food. The Nestlé subsidiary sells almost two billion products every year to 97% of households in the UK and Ireland. With businesses spanning a diverse range of products, from healthcare nutrition through to bottled water, from catering products through to confectionery, the group is not only one of the UK and Ireland’s leading food manufacturers but also a major exporter, selling almost £350 million worth of products to over 70 countries every year. Nestlé’s operations in the UK and Ireland encompass a number of businesses Nestlé UK (Food & Beverage, Confectionery and Food Services), Nestlé Ireland, Nestlé Purina Petcare, Nestlé Waters, Nestlé Nutrition, Nespresso, Cereal Partners UK (a joint venture with General Mills) and Lactalis Nestlé Chilled Dairy Company (a joint venture with Lactalis).

Nestlé UK & Ireland has also been at the forefront in tackling youth unemployment and providing young people with an opportunity to gain the skills they need to get into work.

Living Wage Employer Like its parent group, Nestlé UK & Ireland places great emphasis on sustainability and corporate social responsibility. For example, Nestlé is the first major manufacturer to receive accreditation as a Living Wage employer in the UK. This accreditation covers approximately 8,000 employees across Nestlé UK and its sister companies,

Fiona Kendrick, chairman and chief executive of Nestlé UK & Ireland.

which include Nestlé Nutrition, Nestlé Professional, Nestlé Waters, Nestlé Purina Petcare, Cereal Partners and Nespresso. Nestlé UK & Ireland has also been at the forefront in tackling youth unemployment and providing young people with an opportunity to gain the skills they need to get into work. Fiona Kendrick, chairman and chief executive of Nestlé UK & Ireland, comments: “At Nestlé we are meeting the challenge of the UK skills gap through the Youth Employment Initiative and our Nestlé Academy. In the UK and Ireland we will create 1,900 employment opportunities across our business by 2016 across all areas of our business and at all levels – from operators on the factory floor to field sales assistants and business management. We believe it is vital that the food and drink industry works together to engage with young people and demonstrate first-hand the diverse and exciting careers we offer.” As part of the company’s ongoing commitment to the Nestlé Youth Employment Initiative the Living Wage also applies to the company’s graduate, internship and Fast Start school leaver programmes. All staff employed directly by Nestlé UK are already paid the Living Wage. The company is now working closely with contractors to ensure that their employees working across Nestlé sites will also be paid the UK Living Wage by December 2017. Zero Waste & Climate Change Nestlé is committed to eliminating food waste at every level of operations and has set a goal of achieving zero waste to landfill from all factories in the UK by 2015. FOOD & DRINK BUSINESS EUROPE, JUNE 2015

Nestlé UK & Ireland has been working to develop Climate Change Adaptation Plans for each of its manufacturing sites. One specific example is the company’s Tutbury site in Derbyshire, which is of key strategic importance to Nestlé globally. It is one of only two centres in the world set up for volume production of Nescafe Dolce Gusto, and exports to 51 countries on five continents. Nearly 1,000 people work there, 50% of whom live within a five-mile radius of the plant. Nestlé has invested £420 million in the factory over the past six years. The area around the plant has, however, experienced increasing incidents of major flooding as the climate changes. To tackle this, Nestlé UK worked with the Environment Agency and local community, contributing £1.65 million to a new £8.7 million flood defence project in the area, completed in late 2013. Now, over 1,600 homes and businesses are protected from the River Dove and Nestlé has been able to expand its coffee operations, creating over 400 new jobs.

Nestlé UK & Ireland is also on target to achieve 100% cocoa from sustainable sources by the end of 2015, becoming the first major confectionery company in UK and Ireland to achieve this milestone.

“At Nestlé, we understand that manufacturing and distribution models need to evolve as climate change increasingly impacts supplies of materials, energy and water,” says Fiona Kendrick. “One of our main areas of focus at Nestlé UK has been to create Climate Change Adaptation Plans for all UK factories. We are determined to play our part in protecting the communities around our sites as we build future business resilience.” J 25

I TOP 100 – 30TH

Carlsberg UK – More Than Just a Beer Company Owning four of the top 15 beer brands in the UK and producing over one billion pints of beer each year, Carlsberg UK is the country’s number three brewer in both the on-trade and off-trade channels with a 14% share of the overall beer market. art of Carlsberg Group, the fourth largest brewer in the world, Carlsberg UK operates a modern brewery in Northampton, 12 Cask Marque accredited distribution depots across the UK and employs around 1,700 people. Carlsberg UK produces many of the leading beer brands in the UK including Carlsberg, Carlsberg Export, San Miguel, Tetley’s and Tuborg. The brewer also imports under licence premium world beers such as Staropramen from Prague and Mahou from Spain. Furthermore, Carlsberg’s Tapster’s Choice portfolio provides business customers with a handpicked selection of British traditional and contemporary cask ales to suit every consumer taste and occasion. However, Carlsberg UK is more than just a beer company. Through its Crown Cellars division, the company sources a variety of specialist wines and spirits from across the globe. Indeed, Carlsberg UK is the only national brewer with its own distribution network. Customers include national pub companies, independent free houses, supermarkets, grocers and wholesalers across the UK.

Carlsberg is the fourth ranked lager brand in Britain.

Carlsberg also has its own cider brand, Somersby, which was launched into the UK on and off-trade in 2013. Now available in over 40 markets, Somersby Cider is the fastest growing cider brand in the world with year-on-year growth of 41% across the brand. Lost Market Share According to Carlsberg Group, the UK market grew by approximately1% in 2014

James Lousada, chief executive of Carlsberg UK.

driven by a growing off-trade channel, although the on-trade continued to decline. Carlsberg’s UK business lost market share in both channels partly as it chose not to participate fully in various promotional activities during the year. The company’s price/mix improved slightly and the Somersby Cider brand continued to grow. In 2015, the focus is on revitalising the flagship Carlsberg lager brand, further developing the Somersby Cider brand and increasing the real ale portfolio to meet changing consumer demands. “The number one challenge for us is to reinvigorate Carlsberg,” says James Lousada, chief executive of Carlsberg UK. “We probably lost sight of the brand and didn’t spend enough time cherishing the bread and butter of our organisation. After all, 40% of Carlsberg sold worldwide is sold in the UK, so it’s really important for us to have a strong brand here and I’d say the value of the brand really declined over the last three or four years.” Selling 500 million pints annually, Carlsberg is the fourth ranked lager brand in Britain, behind Foster’s, Heineken and Stella Artois. “In business terms we have a 15% share of the market with the nearest rival ten points ahead of us,” he points out. To help revitalise the brand, Carlsberg UK is investing £12million on a 40-week television, radio and online marketing campaign. FOOD & DRINK BUSINESS EUROPE, JUNE 2015

Cider and Cask Ale Carlsberg UK has also recently launched a national campaign for Somersby Cider involving a £7 million media spend to support the brand across TV, digital, social, radio and at summer festivals. The new campaign is designed to build on the 115% year-on-year on-trade volume growth for Somersby Original, and the brand has been extended with the launch of three new fruit flavours – Somersby Apple Burst, Somersby Cranberry and Somersby Blackberry. Carlsberg UK is extending the range of cask ales it sells through its distribution business. “One in five cask ales sold in Britain now goes through our network,” says James Lousada. “It’s a point of difference for us and a great way of nurturing new business. Beer probably had become a little bit too staid and people were looking for something a little bit different.” Encouraging Investment Carlsberg UK has been an active campaigner for a reduction or freeze in Beer Tax in order to encourage investment and growth in the British brewing and pub industry. Indeed, like other brewers, Carlsberg UK has benefitted from successive cuts in Beer Taxes. “Locally Carlsberg UK has made significant investment in its brewery, production Carlsberg is the fourth facilities and logis- ranked lager brand in tics operations in Britain. recent years, creating and securing jobs for local people across Northamptonshire,” says James Lousada. “It’s successive cuts in beer duty that enables us to invest in our business, which is good for everyone.” J 27

I TOP 100 – 51ST

Faccenda Foods Moves Up the Pecking Order Having recently posted year-on-year sales growth of 12% to £520 million and an increase in pre- tax profits to just over £15 million for its 2013/14 financial year, Faccenda Foods has achieved a fourth consecutive year of improvement in both top line growth and financial performance. vertically integrated business controlling the whole product supply chain, Faccenda Foods employs more than 3,000 people at its sites across England and Wales, including chicken processing facilities at Brackley in Northamptonshire, Telford in Shropshire and Dudley in the West Midlands.

Andy Dawkins, managing director of Faccenda Foods.

Still wholly owned by the Faccenda family, the company has been supplying the UK poultry market for over five dacades. Having developed into one of the UK’s largest poultry processors, Faccenda Foods supplies both the retail and food service sectors. Faccenda Foods’ latest financial results reflect the full integration of Cranberry Foods, the UK’s second largest turkey producer behind Bernard Matthews, following its acquisition in May 2012 for an undisclosed price. The deal increased Faccenda’s turnover by about £100 million and has allowed it to benefit from clear synergies between the two businesses and to extend the scale and range of its products. Generating Growth Andy Dawkins, managing director of Faccenda Foods, comments: “Despite a gen-

eral economic environment that continues to challenge we have been able to generate growth through working closely with our retail and food service partners, growing and succeeding with them. Performance has been strong in both chicken and turkey operations and in particular we have been encouraged by the success of our expanding convenience ranges.” He continues: “Our strategy of growth in scale, product innovation and trusted delivery has paid dividends for our customers. We remain committed in the next few years to significant investment in farming, manufacturing and most importantly our people, who we firmly believe are key to our long term success as a business.” Further Diversification Faccenda Foods has since further diversified its business by purchasing Cherry Valley Farms’ duck processing business, Cherry Valley Foods. Cherry Valley Foods is one of two major duck producers in the UK and has a strong reputation in the food service sector. With a turnover of £45 million, its facilities include a factory in Caistor supported by a local agriculture operation of farms and a hatchery. The acquisition of Cherry Valley Foods for an undisclosed price has further strengthened Faccenda Foods’ market position, as the only UK supplier of chicken, turkey and duck creating further opportunities for growth in all

Faccenda Foods has developed into one of the UK’s largest poultry businesses.

FOOD & DRINK BUSINESS EUROPE, JUNE 2015

Simply Roast in the Bag products use an innovative packaging system to enable consumers to put the product straight in the oven without having to remove the packaging first.

three areas across a broader customer base. £35 Million Investment To supports its rapid development during the past few years, Faccenda Foods recently expanded its flagship site at Telford site following investment of £35 million. The completion of the expansion project at Telford underlines Faccenda Foods’ growth into a wider range of convenience poultry-based products and its desire to supply innovative fresh and convenience food solutions to customers. Food Safety Faccenda Foods has been at the forefront of efforts to tackle the problem of campylobacter in fresh poultry, recently highlighted by the Food Standards Agency. The company is focusing on two key areas - factory processing intervention to significantly reduce the amount of Campylobacter in chicken and packaging innovation to improve food safety in the kitchen. Faccenda Foods has adopted a new factory process called Sonosteam, which has the potential to reduce Campylobacter by 90%. The technology kills Campylobacter and other micro-organisms on the skin and internal cavity of chickens through the simultaneous application of both steam and ultrasound. Working in partnership with UK supermarket chain Asda, Faccenda Foods has adopted an innovative packaging system for its award-winning Simply Roast in the Bag range, which enables consumers to put the poultry product straight in the oven without having to remove the packaging first, taking food safety in the kitchen to another level. J 29

FOOD & DRINK BUSINESS EUROPE, JUNE 2015

I TOP 100 – 56TH

Continuous Innovation Keeps McCain Ahead McCain Foods GB, the Scarborough-based frozen food manufacturer armed with the best selling frozen potato brand in the UK, ranks 56th in the Food & Drink Business Europe Top 100. cCain Foods GB’s strategy is to stimulate growth through innovation, quality and service, and by taking advantage of its position as market leader to retain its competitive edge. The company is part of Canada-based McCain Foods, one of the world’s leading frozen food producers, employing 18,000 people and operating 50 production facilities on six continents. The company is the world’s largest manufacturer of frozen French fries. Its products are sold to retailers and food service operators in more than 160 countries around the world. Privatelyowned, McCain Foods generates annual sales in excess of C$6 billion (Eur4.4 billion). McCain Foods entered the UK market in 1965, initially with imports before building its first production facility at Scarborough in 1968. Indeed, Britain was its first major overseas market and the company then expanded into continental Europe throughout the 1970s and 1980s.

McCain Steakhouse Ridge Cut Fries and McCain Spicy Peri-Peri Fries are specifically targeting adults.

Operating five factories in England and a seed potato business at Montrose in Scotland, McCain Foods GB leads the retail and food service industries in frozen potato products such as French fries, potato specialties, and appetisers. McCain Foods GB generated pre-tax profits of £54.7 million on turnover of £444.8 million for the year ended June 30th 2014.

McCain is the best selling frozen potato brand in the UK.

Continuous Innovation Continuous innovation enables McCain Foods GB to deliver both variety and quality to consumers via its retail and food service customers. The company invests continually in new technology in order to meet customer demand for more varied products while minimising manufacturing costs. For example, McCain Foods GB recently launched a new range of fries designed to appeal specifically to adults. 1+2 person households now account for 60% of the UK population and often take their inspiration from the experiences they have when eating out of home. Building on this insight, McCain worked with BrandOpus, the strategic design agency specialising in brands, to develop two new products – McCain Spicy Peri-Peri Fries and McCain Steakhouse Ridge Cut Fries, emphasising the big, bold flavours available at casual dining restaurants. Another new addition to the McCain Foods GB product portfolio is frozen mashed potato, which can be heated up in the microwave in three minutes. Food Service To improve its service, McCain Foods GB recently launched a new website for its food FOOD & DRINK BUSINESS EUROPE, JUNE 2015

service customers in the UK. The new McCainfoodservice.co.uk website offers users a bespoke experience, with information, videos and product baskets that have been tailored to provide solutions for the specific business challenges that they face, whatever sector they are working in. The site is fully responsive, ensuring that busy caterers are now able to access the website whenever and wherever they like, via mobile, tablet or desktop. Designed to be quick, simple and easy to use, the website allows caterers to find the right product solutions for their business. Sustainable Business Model McCain Foods is determined to reduce its environmental impact and develop a sustainable business model. It is committed to a vertically integrated farm to fork approach, encompassing all aspects of the group’s business from the way it prepares food products to the way it works with farmers to its relationships with customers. In line with its corporate social responsibility strategy, McCain Foods invests significantly in reducing its environmental impact and carbon footprint while also boosting productivity. For example, McCain Foods GB has invested over £10 million in green initiatives at its Whittlesey site, the largest chip factory in the UK. In addition to the introduction of the latest technology to capture waste cooking heat and recycle it to heat water, the Whittlesey site is the first major UK food plant to be powered mainly by wind. Sustainable sourcing of its raw materials is crucial to McCain Foods’ ability to demonstrate where its products come from all the way through the value chain and to prove the cultivation techniques used have minimal impact on the environment. McCain Foods GB processes over 10% of the national potato crop. The frozen foods company forward contracts the growing of specialised varieties of potatoes with UK farmers, supplying them with seed potato. McCain Foods GB seeks to develop longterm partnerships with its potato growers and has encouraged the establishment of grower groups, which can benefit from economies of scale. J 31

I TOP 100 – 87TH

Tangerine Confectionery’s Fruitful Development Tangerine Confectionery, the leading UK independent manufacturer of sugar confectionery and branded popcorn, has increased its turnover from less than £40 million to over £170 million through organic growth and acquisitions since being created in 2006. lackpool-based Tangerine Confectionery owns some of the Britain’s favourite sugar confectionery lines including Sherbet Fountains, Dip Dab, Refreshers, Blackjacks and Fruit Salads, which are incorporated in the Barratt brand, Henry Goode’s liquorice, Princess marshmallows as well as the well-known Butterkist popcorn brand.

Tangerine Confectionery was created in 2006 following a management buy-in at the UK confectionery division of Toms of Denmark, which operated three facilities in Blackpool, Liverpool and Poole manufacturing boiled sweets, marshmallows, gums, jellies and toffees. Acquisitions followed which served to diversify the product portfolio and add scale to the business. Later in 2006, the confectionery division of Burtons Foods, which also operated a factory in Blackpool making gums and jellies and Liquorice Allsorts, was acquired for an undisclosed sum. Transformational Deal In 2008, Tangerine Confectionery completed a transformational deal with the £56 million purchase of Monkhill Confectionery from Cadbury (now part of Mondelez

International). The acquisition not only significantly expanded Tangerine’s sugar confectionery range, which already included favourites such as Princess Marshmallows, Taveners and MOJO, but also added popcorn to the portfolio. Monkhill Confectionery manufactured the popular Butterkist popcorn brand, the iconic Barratt Sherbet Fountains and Jameson’s chocolate confectionery along with an extensive range of branded boiled sweets, gums and jellies at its three factories in Yorkshire at York, Cleckheaton and Pontefract. It also operated its own distribution centre in Derbyshire at Holmewood, near Chesterfield. The deal created one of Europe’s biggest sugar confectionery businesses with a turnover well in excess of £100 million. It also increased Tangerine Confectionery’s workforce from 600 to 1,500 people as the new factories were added to the company’s existing sites at Poole, Liverpool and two sites in Blackpool. The large distribution facility also enhanced the enlarged company’s service capabilities. In 2011, Growth Capital Partners, the UK private equity firm which had backed the original MBI with an investment of £8 million, sold out to Blackstone Group, one of the world’s leading investment and advisory firms, in a £115 million deal. Blackstone bought a majority stake in Tangerine Confectionery, alongside management which re-invested significantly in the business. Through continual innovation, Tangerine Confectionery has been able to expand in tandem with the UK confectionery market and has also developed exports sales. Turnover reached £169 million in 2012, up from £156.6 million in 2011. In the year ended December 2013, Tangerine Confectionery posted pre-tax profits of £4.9 million, up from £3 million in the previous year, on turnover up marginally to £169.7 million, reflecting intense market competition. New Head Tangerine Confectionery is now under the leadership of former United Biscuits’ head Benoit Testard. Taking over as chief executive FOOD & DRINK BUSINESS EUROPE, JUNE 2015

Benoit Testard, chief executive of Tangerine Confectionery.

in March 2014 to position the company to pursue its next phase of growth, Benoit Testard had been a non-executive director of Tangerine Confectionery since October 2013. After joining United Biscuits in 1999 as managing director of its French business, Benoit Testard took charge of its Northern European operation in 2001, went on to become managing director of its UK business in 2004, and took the role of group chief executive in 2011. Benoit Testard is a food industry veteran with a career spanning three decades, also including time spent at Reckitt & Colman and Fromageries Bel Group. Rationalisation Tangerine Confectionery has recently been rationalising its manufacturing base and has closed one of its factories in Blackpool with the loss of about 75 jobs. Production from the site, which was part of the original acquisition of the confectionery division of Toms of Denmark, has been transferred to Tangerine Confectionery’s other site in the town at Vicarage Road.

Tangerine Confectionery now operates six factories across five UK manufacturing sites, including Vicarage Lane, Cleckheaton, Pontefract, Liverpool and York, and employs about 12,000 people. J 33

VisionID Offers Enterprise-wide Auto-identification and Visibility Solutions isionID is a leading, independent supplier V of Mobile Computing, Identification and Barcoding solutions to all industrial sectors throughout Ireland, with particular emphasis on the food and drink industry. VisionID’s core products and services focus on Auto-identification and Visibility solutions across the enterprise. From a manufacturing perspective this could entail capturing data on the factory floor all the way through to the point of delivery at the end of the supply chain. Established to provide Barcode and Data Capture solutions in today’s ‘real time’ society, VisionID is aligned with the world’s leading manufacturers of Barcode Printers, Barcode Scanners, Handheld Mobile Devices, Wireless Solutions as well as Plastic Card Printing Systems.

We adopt a clear ‘Plan, Implement and Run’ strategy which is particularly relevant for our customers in the food and drink industry as traceability after delivery is as important as productivity and down time throughout production. Around the Clock Support From its headquarters at Clonmel in County Tipperary and its regional offices in Limerick, Dublin and Belfast, VisionID is able to provide around the clock support to customers from its Service Centres and also on the customer’s site through its team of Engineers. “On a daily basis we are challenged with continuous improvement philosophies through our broad customer base across a number of sectors,” points out Robert Jones, Managing Director of VisionID. “We deal with leading companies from pharmaceutical and medical device manufacturing, retail and healthcare to name a few, and we find our 34

US with ease. This gives them a successful tried and tested template that they can rely on across the world,” explains Cathal Murtagh, Sales and Marketing Director of VisionID. experience across these verticals allows us to not only provide solutions to the food and drink industry that are brought to us but also to be proactive in bringing the best practices to our customers on a continual basis. We adopt a clear ‘Plan, Implement and Run’ strategy which is particularly relevant for our customers in the food and drink industry as traceability after delivery is as important as productivity and down time throughout production.” Tailored Solutions VisionID can tailor-make an offering that best suits the specific needs of any particular customer to ensure that the right solution is implemented but also supported to fit the required operation. This could be round the clock, involve process improvement sessions or user training but also a full Managed Service where VisionID can take on more responsibility and free up critical resources for the customer to re-distribute elsewhere. For example, within the food and drink industry, VisionID is currently deploying a global rollout for one of its customers across the supply chain incorporating leading edge rugged mobile computers and barcode label printers. “This is one component of a larger project for this customer that will allow them to improve efficiency for all their sites in every Continent. Core to the offering is the configuration and remote management of the devices via a cloud based option that allows us to diagnose and troubleshoot issues across Europe, Asia, Arica and the

Providing the solution is only the start for us – ensuring it is running 100% after the fact very quickly becomes the focus. FOOD & DRINK BUSINESS EUROPE, JUNE 2015

The ‘Mobile’ Worker VisionID is facilitating its customers in adapting to the increasing focus on the ‘Mobile’ worker as companies try to eradicate paper-based processes while simultaneously presenting to their employees as much information as they require and at whatever time and location they require it to help them best perform.

We do not offer a one size fits all solution forcing our customers to change and adapt their processes – we leverage not only our experiences but also those of the leading global manufacturers that we are partnered with. “We have developed a strong Managed Service offering that allows companies to have full visibility of their assets and data to complement this need,” adds Cathal Murtagh. “Providing the solution is only the start for us – ensuring it is running 100% after the fact very quickly becomes the focus.” VisionID believes this approach distinguishes it from competitors. “As a company we focus as much on the initial planning before any solution is deployed as much as the ongoing service and support from when it is fully up and running,” stresses Robert Jones. “We do not offer a one size fits all solution forcing our customers to change and adapt their processes – we leverage not only our experiences but also those of the leading global manufacturers that we are partnered with.” J

I ENERGY EFFICIENCY

Vayu Energy Signs New Gas Supply Deal With C&C Group rish gas supplier Vayu Energy has signed Iadds a new deal with C&C Group plc which C&C’s production sites in Glasgow and Somerset to Vayu’s existing gas and electricity supply arrangements with C&C in Ireland, with a combined value of Eur5 million over the next three years. The deal represents a milestone for European energy deregulation by enabling, for the first time, a multinational company with operations in the UK and Ireland to procure natural gas centrally from a single supplier. This means that natural gas for C&C’s key manufacturing and distribution sites across Ireland and the UK are now supplied by one provider: Vayu Energy. Significant Cost Savings The deal provides C&C Group with direct access to wholesale gas prices in the UK and Ireland, allowing the company to achieve significant cost savings by taking full advantage of cheaper prices available in the wholesale gas markets. As part of a fully managed service, Vayu Energy will also provide C&C Group with a suite of procurement tools to manage consumption risk in addition to continuous market analysis and advice to minimise energy spend. Since its expansion into the UK in 2014 targeting the business gas market, Vayu Energy has invested heavily in winning customers in the industrial and commercial sector – including those with operations spanning both the Irish and UK markets. The Irish energy supplier, which is backed by international commodity group Glencore as its largest shareholder, has grown steadily since 2003 when it became the first independent supplier to be awarded a gas shipping and supply licence in Ireland. The company now supplies 22% of Ireland’s largest natural gas business customers and 15% of the midsized gas user segment. Gas customers include companies such as William Grant, Argos, IBM, Debenhams and DHL. Denis Cronin, head of energy procurement at C&C Group comments: “The deal is an important part of our strategy to drive continuing efficiency across our

Simon Firth, head of energy services at Vayu; Denis Cronin, head of energy procurement at C&C Group; and Stephen Behan, energy specialist at Vayu.

operations and will significantly streamline our approach to gas procurement in Ireland and the UK. The deal provides our business with increased flexibility and cost benefits and is backed up by Vayu’s deep expertise and understanding of the gas market.” Landmark Deal Colm Kennedy, managing director of Vayu Energy, says that the deal is a landmark for gas procurement in the UK and Ireland given the number of businesses with operations spanning both countries – providing a more integrated and effective model for managing energy related expenditure. “The energy market is undergoing a fundamental change with businesses seeking more effective ways to procure and manage their energy – moving toward more sophisticated solutions that minimise the per-unit cost of energy purchased,” says Colm Kennedy. “Energy services based in the cloud is the future, and Vayu are at the forefront of this change.” FOOD & DRINK BUSINESS EUROPE, JUNE 2015

Competitive Alternative Having shaken up the Irish gas market, Colm Kennedy says Vayu Energy is focussed on becoming a leading provider of gas and energy procurement solutions to businesses across the UK, giving customers a competitive alternative to other suppliers in the sector. Valued at over £7 billion per annum, the UK’s business gas sector is almost ten times the size of Ireland’s, offering significant growth potential for Vayu. Colm Kennedy adds: “We have established a business model that has worked exceptionally well in Ireland, creating flexibility for gas users that wasn’t there previously. Our model is highly transferable – similar to the approach used by telecoms – which means we can follow our existing customers into the UK while also pursuing new business wins in this market. In large part, this is made possible by the continuing evolution of Europe’s energy markets and our backing by Glencore – one of the world’s largest natural resource companies.” J 35

I WASTEWATER TREATMENT

Integrating Veolia Solutions for Sustainable Growth upporting Food and Beverage producers S on their sustainability path is a key focus area for Veolia’s integrated approach to resource management. Veolia’s expertise in managing the full water cycle, optimising and recovering energy, while treating, recovering and converting organic and material waste into valuable resources, supports Food and Beverage producers on their sustainability path. The engagement of the sector with Origin Green, Bord Bia’s sustainability programme, underlines a shared commitment to retain and further grow Ireland’s reputation as a producer of the highest quality. The technologies deployed to manage the water and wastewater processes of manufacturing plants must be intrinsically energy efficient. Veolia has developed metrics to help large water users to grasp the obvious and hidden cost of water so they can make sustainable business decisions while ensuring long-term profitability. The ‘True Cost

of Water’ tool combines traditional Capex and Opex calculations with analysis of water risks and their financial implications, to ensure that optimal investment and operational decisions are taken over the lifetime of a plant. In Ireland, Veolia has helped some food and beverage producers achieve 100% reuse of water and steam from manufacturing processes and up to a 20% reduction in energy usage. In the UK, Dairycrest Creamery has succeeded in reducing its factory’s net carbon emissions by 20,000 with the construction of a 12MW biomass steam plant by Veolia – a major step towards meeting the commitment to achieve 28% carbon reduction by 2020. Extracting Sustainable Value From Production Treatment plants must be fully capable to handle the increased loads resulting from rising production volumes and ensure that

FOOD & DRINK BUSINESS EUROPE, JUNE 2015

quality of final effluent meets and exceeds environmental discharge regulations now and into the future. Veolia is helping producers to minimize the amount of nutrients they are discharging to local rivers system by applying Phosphorous removal technology. Phosphorous, a waste stream from the production process is a increasingly scarce and valuable resource and Veolia in Ireland and across Europe is transforming this into a valuable fertilizer for use within local agriculture. Converting waste streams from food and beverage production into reusable products for reuse within the wider economy is Veolia’s core expertise. This fully integrated management of vital resources is how Veolia is helping clients across industry to make the step change towards reuse, recovery and resource creation – the cornerstone of sustainable growth. J

I WATER & WASTEWATER TREATMENT

NVP Energy Among the Big Winners at the UK’s Top Water & Energy Awards VP Energy, a clean-tech company with N an innovative technology (Lt-AD) that can turn wastewater into a revenue generator for end-users in the food and drink (eg dairy, brewing, malting, distilling, meat processing etc.) and municipal wastewater industries, was recently the recipient of two prestigious awards from the UK Water and Energy sectors not to mention a substantial grant from the UK Department of Energy and Climate Change (DECC). NVPE was announced the winner of the Most Innovative New Technology of the

Year award at the Water Industry Achievement Awards. NVPE then went on to win the Innovation Award for Energy from Waste at the Environment & Energy Awards. In addition to this impressive recognition, NVPE has been successfully awarded the Energy Entrepreneurs Fund from DECC thus further reinforcing the high calibre of the Lt-AD technology. This grant will financially support the delivery of a full-scale Lt-AD reactor at a large food and drink customer’s wastewater treatment

plant by March 2016. This recent recognition follows the success NVPE had at the start of the year when it was one of only 155 companies out of 2662 companies throughout Europe to be awarded Horizon 2020 Phase 1 SME funding. For further information visit www.nvpenergy.com. J

Aqua Enviro to Exhibit at ADBA’s UK AD & Biogas 2015 xperts from wastewater and organic waste specialist Aqua Enviro E will be speaking and exhibiting at this year’s AD & Biogas 2015 exhibition and conference. The environmental consultancy and technical conference organiser, based in Wakefield, will be showcasing its wastewater, organic waste treatment and technical training services at the event, held at Birmingham’s NEC on July 1st and 2nd. Experts will be on hand to discuss wastewater and sustainability issues, including helping customers realise the value of wastewater, investing in anaerobic digestion technologies, reducing waste costs and achieving environmental and business compliance. Guest speakers at the show include Dr David Tompkins, Aqua Enviro’s Organics Technical Man-ager, who will be presenting and chairing at the industry-leading show. He will be speaking on ‘Digestate Management – AD - Is it a case of biogas or bio-fertiliser’ between 3pm and 3.55pm on the first day of the show, and will later chair the ‘Digestate Management Technology and Innovation’ session from 4pm until 4.55pm. Process engineer, Dean Herron, will present on ‘Understanding the Challenges of Dewatering Food Waste Digestate to Improve Plant Economics’ from 3pm on day two of the show. Throughout the two days senior staff will be on hand at stand K201 to discuss consultancy, technical conferences and training services, as well as offering their knowledge and expertise on the anaerobic digestion process. To arrange an informal meeting at this year’s UK AD and Biogas, please contact Marketing Executive, Sarah Dawson, by email at sarahdawson@aquaenviro.co.uk. For further information visit www.aquaenviro.co.uk. J FOOD & DRINK BUSINESS EUROPE, JUNE 2015

I MEAT & POULTRY

The Top Meat and Poultry Processors in the UK and Ireland Many of the largest meat and poultry processors based in the UK and Ireland (see Table) are also major players within the wider European industry.

opping the Table is 2 Sisters Food Group, one of the largest privately-owned food processors in the UK and Europe. Established in 1993 by Ranjit Singh Boparan, the business has been developed from a small scale poultry operation into an international convenience food group, serving the retail, food service and manufacturing sectors. 2 Sisters produces a third of all the poultry products eaten in the UK and also operates six poultry sites in Holland and one in Poland. In line with its strategy of serving more meal occasions, 2 Sisters has now diversified into red meat, following the acquisition of part of Vion Foods’ UK operations. In addition to its poultry and red meat activities, 2 Sisters is one of Britain’s largest convenience food processors and a major branded player within the UK grocery market after its £342 million acquisition of Northern Foods in 2011. Moy Park is another UK-based poultry business that has been diversifying into convenience foods. One of Europe’s leading poultry companies and the UK’s largest producer of organic and free range chicken, Moy Park has been part of Brazilian meat group Marfrig since 2008 which has substantially expanded its product portfolio. Indeed, Moy Park is now responsible for Marfrig’s entire European business. Reflecting its continued growth in sales, chiefly to customers outside its Northern Ireland base, Moy Park has commenced a £170 million expansion programme across its three Irish sites at Dungannon, Craigavon and Ballymena.

largest farming co-operatives. Some Eur100 million will be invested over the next three years in modernising Elivia’s production facilities and developing new information systems. Dawn Meats has the option to increase its shareholding to 70%. The deal allows Dawn Meats to play a role in the ongoing consolidation of the European meat industry. “It’s a case of eat or be eaten,” says Niall Browne, chief executive of Dawn Meats. “The reality is that consolidation is happening, and Irish businesses in the food industry must adapt to this.” Specialist Meat Packer Ranked fifth in the Table with a turnover of £1.09 billion in The Top Meat & Poultry Processors in the UK and Ireland

Irish Presence Processing more than one million cattle each year across its facilities in Ireland, the UK and Poland, ABP Food Group is the largest processor of beef in Ireland and the UK, and one of the top three in Europe. Indeed, ABP Food Group has become the first company to win a supply deal to the US following the recent lifting of the US ban on exports of beef from the EU which had been in place since 1998 following the BSE crisis of the 1990s. Dawn Meats is another privately-owned Irish meat processor which has become a leading player in the Europe. With sales of over Eur1 billion, the company exports beef and lamb products to more than 40 countries. It recently acquired a 49% stake in Elivia, France’s second largest beef processor. Elivia has sales of Eur1 billion but is loss making and is owned by Terrena, one of France’s

Company 1 2 Sisters Food Group (Boparan Holdings) 2 ABP Food Group 3 Moy Park 4 Tulip 5 Hilton Food Group 6 Cranswick 7 Dawn Meats Group 8 Dunbia Group 9 Kepak 10 Karro Food Group 11 Faccenda Foods 12 Sun Valley Foods 13 Foyle Food Group 14 JW Galloway 15 Bernard Matthews

Turnover

Pre-tax Profits

£3.42b £1.77bE £1.20b £1.12b £1.09b £1.00b £845mE £716.0m £650mE £533.0m £520.0m £451.2m £317.2m £308.9m £306.8m

-£163.3m nd £33.8m £26.0m £25.2m £52.8m nd £4.6m nd -£3.3m £15.0m -£8.0m -£2.3m -£2.9m -£8.5m

Source: Food & Drink Business Europe Top 100, 2015

FOOD & DRINK BUSINESS EUROPE, JUNE 2015

2014, Hilton Food Group is a specialist retail meat packing business supplying major international food retailers in thirteen European countries and Australia. Hilton Food Group was originally established in 1994 to develop and operate a beef and lamb central meat packing facility for Tesco in England but has since expanded internationally. The group’s strategy is to expand the business by developing the existing partnerships with its retailer customers and also to explore opportunities for operating its proven business model in new geographical territories, with either current or new customers. Hilton Food Group is currently completing a major capacity expansion in the UK at its Huntingdon site. Robert Watson OBE, chief executive of Hilton Food Group, comments: “The high level of investment made in our meat packing facilities in 2014 was essential to facilitate the group’s planned future growth. We will continue to seek out available opportunities to progressively and profitably expand the scale and scope of our operations, employing a business model that remains resilient, relevant and internationally transferable.”

Niall Browne, chief executive of Dawn Meats.

Continuing Investment Squeezed by escalating input costs and price sensitiveness by consumers, reflected in a shift towards buying cheaper meats, many meat and poultry processors have been investing to improve efficiency in order to protect profits margins. A case in point is Cranswick, which has benefited from exploiting the ongoing popularity of pork and pork products like bacon, sausage and cooked meats with consumers, while also diversifying the product range into convenience foods. The company has achieved major operational efficiencies following significant investment in the business infrastructure over the past five years.

FOOD & DRINK BUSINESS EUROPE, JUNE 2015

Despite the challenging trading environment, Cranswick has just reported a 10.1% rise in adjusted operating profit to £58.7 million for the year ended 31 March 2015 on revenues up 1% to a record £1.003 billion. Cranswick invested £21.1 million in its asset base during the year to provide additional capacity and to upgrade equipment in order to improve operational efficiencies and new product development capabilities. This brings total investment over the last five years to £137 million. “Cranswick benefits from some of the most efficient and well-invested production facilities in the UK food producer sector,” says Martin Davey, chairman of Cranswick. He remains confident that Cranswick’s strategy of continuing to grow its international export channels and diversifying its product portfolio leaves it well positioned to continue its successful long term development.

Jim Dobson, owner and managing director of Dunbia Group.

Latest Technology Northern Ireland-based Dunbia Group is also investing in the latest technology. Processing beef, lamb and pork for national and international markets, Dunbia is one of the leading multi-species meat processors in Europe with 12 sites located in the UK and Ireland and export markets across Europe. Dunbia is investing £27 million at its Dungannon site in Northern Ireland to establish an intelligent boning hall and to upgrade production lines to increase output and support export growth. Jim Dobson, owner and managing director of Dunbia Group, says: “Innovation has been at the heart of Dunbia’s success and this investment in new production technology will create a centre of excellence for beef deboning. It will help us to maintain our position as a leading meat processor in the UK and Ireland and to deliver on our growth strategy over the next three to five years.” Overseas Players Danish Crown Group of Denmark and US-based Cargill are two overseas businesses which have built up significant operations in

the UK. Tulip is the UK business of Danish Crown, which is Europe’s largest, pig slaughtering business and the world’s largest exporter of pork. Dutch group Vion Foods was also a major player in the UK until disposing of its meat and poultry operations, encompassed 38 sites employing 13,000 people, in late 2012. Vion’s UK pork division was sold to a management buy-out consortium with the business subsequently being renamed Karro Food Group. Vion’s poultry and red meat processing businesses in the UK were sold to 2 Sisters Food Group. Herefordshire in England has been the base for Cargill’s poultry business in Europe for more than 50 years. In addition to the Hereford site, Cargill has production facilities in Wolverhampton and Newent in the UK, and in France and Russia.

New Poultry Plants Cargill is currently implementing a £35 million phased investment over three years to focus its UK poultry business, Sun Valley, on the retail sector and key partners in food service. This entails improving efficiencies, upgrading technologies and creating a state-of-the-art processing facility in Hereford. The investments are designed to enable Cargill to expand its capacity to process and supply fresh UK reared chicken. Once the investment plans are complete, Cargill expects to be operating one of the most efficient and competitive poultry processing plants in Europe. A recently completed investment in a new poultry plant is Faccenda Foods’£35 million advanced processing plant at its flagship site in Telford in England. Family-owned Faccenda Foods has developed into one of the UK’s largest poultry businesses, supplying quality fresh and convenience chicken, turkey and duck products to both the retail and food service sectors. The new 125,000 sq ft Telford facility is designed to meet Faccenda Foods’ requirements in terms of future growth and capacity, while also allowing the company to streamline operations, improve efficiency and create better value for customers (see Page 29 in this issue). J

FFP’s Estercook Ovenable Packaging for Roast in the Bag Success ince being launched with Faccenda S Foods for Asda’s Butcher’s Selection Simply Roast in the Bag chicken range, Estercook Roast-In-The-Bag packaging has had a massive impact. Primarily used with whole chicken, but also in fish and pork, and with potential in other proteins, Estercook now dominates the Roast in Bag market. Estercook high temperature packaging allows people to cook a delicious whole chicken or roast joint of meat without ever having to handle the raw protein. Many people also miss out on the benefits of cooking because they lack confidence in handling and storing raw food. FFP’s Estercook packaging remedies this by taking the handling and the waste out of the equation. People take a convenient pack home and place it directly into the oven, so they 42

don’t come into direct physical contact with the food until it is fully cooked. All components of Estercook packaging are fully tested and comply with national and international standards for temperature resistance. FFP go beyond the requirements of UK and European legislation, adding in further tests that provide an extra level of FOOD & DRINK BUSINESS EUROPE, JUNE 2015

confidence in pack safety. To meet increasing demand, FFP have recently invested a six-figure sum in additional purpose designed, computer controlled Hot Room capacity, an important part of the production process that ensures a full cure of the high temperature inks and adhesives used. This investment, along with a further multi-million pound investment in new printing equipment has meant that FFP has the largest ovenable packaging capacity in Europe. Simply Roast in the Bag has received a number of prestigious national and international awards, including a major prize in the Product Of The Year Awards, voted on by members of the public. That follows a Gold Award in The Grocer’s Own Label Food and Plastic Flexible Packaging Pack of the Year in the UK Packaging Awards. J

History and Composition of Smoke Flavors and Smoke Condensates By Charles Lohmeyer, Red Arrow International moke flavors have an interesting history S that can be traced to the late 1800’s when a by-product of charcoal production was used in early attempts to flavor foods. This by-product known as “wood vinegar” lacked desirable smoke taste, could not develop smoke color or extend shelf life, and had serious health issues. The issues with early crude smoke flavors were solved when manufacturers like Red Arrow developed controlled burning technologies that produced smoke flavors with all the organic components found in smoldering wood smoke. These new manufacturing technologies rely on the unique water soluble property of the organic compounds in smoldering wood smoke. This unique feature of smoke allowed these compounds to be collected and condensed in water forming a water soluble smoke flavor with the ability to provide smoke taste, color, and shelf life. Another benefit of the new manufacturing process was the ability to remove undesirable Polycyclic Aromatic Hydrocarbons (PAH’s) through aging and filtering thereby resolving the health issues. Flavor Applications The smoke flavors produced by Red Arrow’s new manufacturing technology found immediate applications as a flavoring in sauces, seasoning mixes, and as a flavor enhancer. Smoke flavor in a flavor application is used like any other flavor and follows a recipe calling for a specific amount of smoke taste to be added and mixed internally into the food. This application will only provide a taste of smoke, and will not develop smoke color, or extend shelf life.

condensate made from smoldering wood, and containing all the components of smoke. The smoke condensate is combined in a nozzle with compressed air to create a particle size of <1.0 micron forming the particulate phase of a smoke cloud in the smoke house. Evaporation of the particulate phase forms a gaseous phase with all the organic compounds found in smoke. This water soluble gaseous phase is absorbed on the meat surface to provide smoke taste, shelf life, and reacts with meat proteins to produce a smoke color. Another popular smoke condensate smoking process is showering. The showering process is similar to steam smoking where the heated smoke is condensed on the cooler surface of a meat product, dried, and reacted to form the typical properties of smoked foods. A smoke condensate can be similarly showered on the meat surface, dried, and reacted with the surface protein to achieve the same smoked food properties. Smoking Process Even though the new smoke flavors produced from controlled burning technologies contains all the components of smoke, their use in a smoking process was limited due to the low concentration of the components in the water carrier. This problem was overcome by removing some of the water carrier though evaporative concentration creating a concentrated smoke condensate suitable for use in a smoking process. A popular smoking process application is smoking with regenerated smoke. In order to understand the regenerated smoking process it is helpful to take a closer look at smoking with smoldering wood. Smoke from smoldering wood produces a visible particulate smoke cloud, and a gaseous phase. The gaseous phase of smoke is water soluble and is absorbed by the >70% water component in processed meat. The absorbed smoke compounds provides smoke taste, shelf life, and reacts with the protein on the meat surface to create color associated with smoked foods. The process of smoking with regenerated smoke relies on a FOOD & DRINK BUSINESS EUROPE, JUNE 2015

Dual Applications and Other Benefits Smoke Condensates and Smoke Flavors are unique in that that they can be used in a flavor application that only provides a taste of smoke, or in a smoking process to produce smoke color, taste, texture, and shelf life. Other benefits include healthier, safer smoked foods, and environmentally friendly reductions in energy consumption, air emissions, landfill demands, and clean-up costs. For further information visit www.redarrowinternational.com. J 43

QUALITY

& HYGIENE

I CASE STUDY

Lean Safety Management at Around Noon Challenge: How can I connect my workforce to H&S standards in a meaningful way to create a more sustainable safety culture from the ground up? round Noon is a family business based in Northern Ireland that A produces and delivers sandwiches and snacks nationwide on a daily basis. Company CEO Gareth Chambers was concerned about the natural disconnect between paper-based safety policies and risk assessments sitting on his managers’ shelves, and what was actually happening in reality on the factory floor. His concern was highlighted when Around Noon recently moved to a brand new manufacturing facility to cope with the high demand for their top-quality products

“About 80% of our brain is dedicated to visual processing. Yet many organisations are still trying to communicate risk using complicated documentation. This documentation is often disconnected from the reality of how things really work on the factory floor,” says Dr Paul Cummins, MD of SeaChange. Solution: A Lean H&S System That Brings Risk to Life

SeaChange is an organisational development company that implements bespoke tools and systems leading to lasting change and sustainable results. Using a software tool, SeaChange enabled Around Noon to risk assess on-location, then quickly and easily create Job Safety Awareness (JSA™) posters which were then transferred to local displays at the work location. These bespoke visuals effectively communicated local risks, required controls, and best practice behaviours in an engaging way. SeaChange do this by ensuring that staff are engaged at every stage along the way. Result: A Lasting ‘SeaChange’ in Staff Motivation as Well as Safety Performance

Following the implementation of the SeaChange system there was

an immediate rise in employee awareness and engagement with general safety and the safety message. The SeaChange approach and their interactive tools provided the following benefits for Around Noon: • Less ‘human error’ variation because it’s clear what needs to be done • Sustainable engagement at operator level • Visual tools that transcended language & understanding barriers • Greater training compliance due to the in-built function • Quick & user-friendly interface that saved time for management and operations • Improved productivity and morale at operator and FLM level. J

“The SeaChange JSA™ system introduced a lean management approach to safety for our manufacturing facility, and greatly helped to engage staff, connect best practice to the reality on the ground, and grow a sustainable safety culture over time. We are all about investing in our people here and endeavour to achieve the best in every area of our business,” says Gareth Chambers, CEO of Around Noon.

FOOD & DRINK BUSINESS EUROPE, JUNE 2015

QUALITY

& HYGIENE

FLOORS, WALLS & CEILINGS

Sweet Hygienic Resin Flooring n food production it is vital that the correct flooring is chosen for Iflooring maximum safety and efficiency around the workplace. The main requirements in the food industry are a balance of durability, cleanability and an anti-slip profile, which all contribute to a safe and hygienic environment. Recently John Lord was commissioned to manufacture and install a suitable anti-slip flooring system throughout the Tilly homemade confectionary facility in Scotland. The production facilities differed from dry to wet processing where spillages occurred and a daily cleaning regime. Taking into consideration Tilly’s requirements, John Lord decided the best flooring to use was their Uragard HTAS, which was back-rolled to provide a sufficient compromise between a high grade, anti-slip profile and the cleanability of the floor. Tilly chose the bright ‘Buff’ yellow colour from the range to help differentiate from their dark fudge product.

British manufactured and installed throughout the UK and internationally, the Uragard polyurethane resin flooring range is ideal for the food processing industry. Each product has a different attribute offering a floor solution for any environment. In environments where meat, fat and grease is present, the most aggressive anti-slip grade floor is ideal and provides the vital safety under foot to all operatives in the area. In environments where dry processing and packaging is present, a lower grade of anti-slip is preferred decreasing cleanability times and providing excellent abrasion resistance for high volumes of pedestrian and vehicular traffic. John Lord takes a ‘Total Responsibility’ on every project involving their exclusive resin flooring range. From floor design, manufacture and substrate preparation, through to installation and after sales support, John Lord is committed to meeting your requirements. For advice on the best flooring system for your business, contact the technical sales team today; +44 (0)161 764 4617 or enquiries@john-lord.co.uk. J FOOD & DRINK BUSINESS EUROPE, JUNE 2015

QUALITY I

& HYGIENE

TEMPERATURE MONITORING

Add a ‘Touch’ of Smart Technology to Improve Food Safety otential danger is hiding as food makes P the journey to your customer. Introducing a touch of temperature-monitoring technology at critical junctures, however, can improve food quality – and help independently owned establishments be compliant with the latest food safety regulations. UK-based Comark Instruments recently introduced the new HACCP Touch, an easy and cost-effective system for caterers, hoteliers and restaurateurs to collect, record and store daily temperatures of critical items as they are received, stored, prepped, cooked and held – or at any other point along the way. The tamper-proof HACCP Touch even captures corrective actions that are taken when food temperatures are found to be outside of approved safe zones. Reports are available from an accompanying software

FOOD & DRINK BUSINESS EUROPE, JUNE 2015

solution that is both user-friendly and customisable. Users interface with the device through an easy-to-navigate touch screen. It measures temperatures that range as low as 73°C and up to 437°C with an accuracy of 0.5°C. It is also water resistant and highly durable to withstand commercial-grade environments. Interested in adding a touch of smart technology to your operations? Visit www.comarkinstruments.com, or call +44 (0)844 815 6599 to heat up your temperature-monitoring intelligence. J

QUALITY

& HYGIENE

HYGIENIC STEEL

Factory Protection for Food and Drink Processing n demanding food and drink processing environments where Itaining constant pedestrian and vehicular traffic passes through, maina hardworking and efficient factory is very important. One of the main elements in the food and drink industry is the construction and protection of the building. Having inappropriate or non-existent protection to the facility can be very costly in the long term. With light and heavy equipment and machinery travelling throughout the premises there is chance of collisions into the walls, columns or doors ways, or in worst cases the operatives working in the factory. The constant wear of the factory will therefore significantly increase if there is not sufficient protection installed. The increase of wear and dents to a factoryâ&#x20AC;&#x2122;s hygienic surfaces in turn increases the bacteria buildup in processing rooms making the cleaning regime harder. This could lead to product contamination. Recently, ASPEN Stainless has been working with a well-known food processing company by assisting with the construction of their new facility by manufacturing and installing wall kerb, low and high level bump rail and wall cladding from their durable, stainless steel range. The stainless steel wall kerb was installed to assist the construction of the various processing and packaging rooms while low level bump rail sits firmly in front to protect the wall kerb and walls against moving vehicular traffic and equipment. In the food production areas, high level bump rail was installed to protect the walls and columns from the food racking trollies, which also doubled up as a storage location for the racking when it is not in use. Stainless steel grade 304/316 provides the ideal protection against constant impacts in hygienic conditions. The stainless steel surface has excellent cleanability and impact resistance, and provides a reduced maintenance solution to any industry looking to improve their facilities. Aspen Stainless manufactures their full range of stainless steel products at their manufacturing site in Nottingham, UK and has their own installation teams working throughout the UK and abroad. ASPEN Stainless has their full product range available online at aspen.eu.com with full product technical data available to download. To discuss your stainless steel requirements for your food and drink environment, contact the technical sales team today; +44 (0)115 986 6321, aspen@canalengineering.co.uk. J FOOD & DRINK BUSINESS EUROPE, JUNE 2015

I BEVERAGES & SNACKS

PepsiCo Europe Remains Focused on Sustainable Growth Despite the adverse macro economic conditions across many of its markets, PepsiCo Europe still managed to achieve organic revenue growth and increase operating profit in 2014. epsiCo Europe is one of Europe's leading food and beverage companies. Employing over 50,000 people, the business covers 11 time zones and more than 45 countries, extending from Russia west to Portugal, and Turkey north to Norway. PepsiCo Europe offers more than 200 brands to over 880 million consumers. It produces many market-leading brands, including international household names such as Quaker, Lays, Pepsi and Tropicana and many loved local brands such as the UK’s Copella juice and Walkers crisps, Russia's Chudo yoghurts and Solgryn oatmeal in the Nordics. In the UK, PepsiCo employs 5,000 people across 14 sites including the Walkers factory in Leicester, the Copella site in Boxford and the Quaker facility in Cupar in Scotland. PepsiCo Europe is a strong and diversified business – it is the continent’s top savoury snacks producer; the number one juice company; the leader in RTD tea with its Lipton joint venture with Unilever; and is the second biggest cola company. PepsiCo Europe is also now a leading dairy company.

Accounting for 19.9% of group sales and 13.9% of group operating profits in 2014, PepsiCo Europe is one of six major divisions within the PepsiCo group. The others are PepsiCo Americas Beverages, Frito-Lay North America, Quaker Foods North America, Latin America Foods, and PepsiCo Asia, Middle East & Africa.

Indra Nooyi, chairman and chief executive of

Financial Performance PepsiCo’s European operations achieved organic revenue growth of 4.5% in 2014, reflecting 3 percentage points of effective net pricing, as well as volume growth of 2% in snacks and 1% in beverages. Reported net revenue declined 3% to $13.29 billion, reflecting an 8-percentage-point unfavourable foreign exchange translation impact, and operating profit rose by 3% to $ 1.33 billion. However, core constant currency operating profit increased by 4% for the full year, reflecting organic revenue growth and productivity savings, as well as a gain related to

PepsiCo.

350 million consumers in Russian, Eastern European and Central Asian markets. For instance, PepsiCo Europe recently invested Eur50 million at its Polish plants in Sustainable Growth Grodzisk Mazowiecki and Tomaszow The business is focused on sustainable Mazowiecki, and also opened a Eur20 milgrowth in the region. PepsiCo Europe has lion state-of-the-art potato chip production been making significant investments in line at its plant in Backi Maglic in Serbia, Eastern Europe, allowing it to reach around which produces the Marbo brand. PepsiCo Europe has also been concentrating on improving efficiency and competitiveness in its developed markets in Western Europe to maintain market share and profitability. The productivity programmes are designed to enhance cost competitiveness as well as PepsiCo Europe offers more than 200 brands, including Pepsi-Cola generate funding for beverages, Frito-Lay snacks, Tropicana juices and Quaker food products, future brand building and as well as well known regional brands such as Walkers crisps. innovation initiatives. FOOD & DRINK BUSINESS EUROPE, JUNE 2015

Ramon Laguarta, chief executive of PepsiCo Europe.

the sale of agricultural assets and the lapping of incremental investments in the prior year. These impacts were partially offset by an impairment charge associated with a brand in Greece, in addition to operating and commodity cost inflation, and charges associated with efficiency initiatives. The majority of PepsiCo’s European business is generated in Eastern Europe and Russia in particular. PepsiCo has been the leading food and beverage provider in Russia since its $5.4 billion acquisition of Wimm-Bill-Dann Foods in 2011, which was the US-based group’s largest ever international deal. “Clearly the currency picture and macros in Russia have made operations more challenging,” says Indra Nooyi, chairman and chief executive of PepsiCo. “While the Russian consumer has been quite resilient – at least for our business – the currency situations led to significant inflation because of the transaction forex (foreign exchange) on the materials we source from outside of Russia, resulting in significant input cost inflation.” She adds: “Despite these significant headwinds, Europe generated full year gains in volume, organic revenue and core constant currency operating profit.” Leadership Change Since the start of the year, PepsiCo Europe has been under new leadership after chief executive Enderson Guimaraes was promoted to head up Global Categories and Operations, PepsiCo, with responsibility for overseeing the Global Beverage, Global Snacks and Global Nutrition Groups.

PepsiCo Europe is the continent’s top savoury snacks producer; the number one juice company; the leader in RTD tea with its Lipton joint venture with Unilever; and is the second biggest cola company.

His replacement is Ramon Laguarta, who was formerly president, Developing & Emerging Markets, PepsiCo Europe, and is now in charge of overseeing the company’s food and beverage business across Europe and its food business in Sub-Saharan Africa. Ramom Laguarta is well qualified to face the current business challenges having pre-

viously held a number of senior leadership positions that have contributed to the success of PepsiCo’s European operations, including serving as president, PepsiCo Eastern Europe Region, which includes Russia and the Commonwealth of Independent States.

ed soft drinks are sugar free. To support its quest to develop healthier products, PepsiCo Europe has invested more than Eur20 million in a flagship European R&D centre at Leicester in the UK, which employs 100 scientists and is dedicated to creating new snacks for the European market. PepsiCo Europe has also opened a Eur15 million fruit and vegetable R&D innovation centre in Hamburg, Germany. Raw Materials As the parent company of Lays, Quaker, Looza and Matutano, PepsiCo is a major buyer of agricultural produce in Europe annually purchasing over 1 million tonnes of potatoes, over 120,000 tonnes of oats, over 70,000 tonnes of corn, more than 2,000 tonnes of nuts and in excess of 30,000 tonnes of apples. These ingredients for the production of its European products are sourced from over 2,500 farmers in around 30 European countries.

‘Performance With Purpose’ Central to PepsiCo’s development strategy is its ‘Performance with Purpose’ approach. The objective of ‘Performance with Purpose’ is to deliver top-tier financial performance while creating sustainable growth in shareholder value. In practice, Performance with Purpose means providing a wide range of foods and beverages from treats to healthy eats; finding innovative ways to minimise PepsiCo’s impact on the environment and to reduce operating costs; providing a safe and inclusive workplace for employees globally; and respecting, supporting and investing in the local communities where the group operates. “The corporations that win in today’s competitive, resource-scarce and hyper-transparent world are those that create real value for society. They are those who see their success In the UK, PepsiCo employs 5,000 people across 14 sites including as inextricably linked to the the Walkers factory in Leicester. success of the world around them,” says Indra Nooyi. “That’s why we To help farmers and the wider agricultural see Performance with Purpose as the cata- sector to be successful and sustainable, lyst for our success. It’s our contract with PepsiCo Europe has developed a far reachsociety and it’s also the driver of our inno- ing farming strategy spanning some 22 countries from Portugal to Russia and vation and our competitive advantage.” As part of its sustainability approach, Turkey to the Netherlands. The strategy is PepsiCo Europe is committed to improving based on three key approaches – supporting water use efficiency by 20% per unit of local farming, producing more and better production and energy use by 25% by with less, and innovating for better farming. In the UK, for instance, PepsiCo Europe 2015 versus the 2006 baseline. has embarked on a ’50-in-5’ journey to Healthier Products reduce its emissions by 50% in 5 years. To PepsiCo Europe is dedicated to reducing the achieve this target, the company has been sodium, saturated fat and sugar in its prod- working with growers to make them more ucts. For example, in Iberia, it has reduced energy efficient. It has been involved in the saturated fat by 70% and cut the levels of introduction of new varieties of potatoes sodium in potato chips and snacks by 10- that use less fertiliser and are less susceptible 25%, while in the UK, by switching to to disease. New methods of adding fertiliser Sunseed, it has reduced saturated fats in to reduce the amount of emissions released Walkers snacks and crisps by 70-80%. In into the air, and using lower carbon fertilisthe Netherlands, PepsiCo Europe has ers are also helping. PepsiCo’s UK potato reduced salt by between 15-60% in Snack a growers have reduced carbon emissions 27% Jacks, Smiths and Cheetos. In Russia, it has since 2010. reduced sodium by 39% in Hrusteam crisp Indeed, PepsiCo is working with its partbreads. PepsiCo Europe has invested heavily ners across the supply chain to find ways to in the marketing of tasty sugar free soft tackle other hotspots such as storage facilidrinks in Belgium and 80% of its carbonat- ties. J FOOD & DRINK BUSINESS EUROPE, JUNE 2015

STORAGE

LOGISTICS

I AUTOMATION

Load This in One Shot in 7 Minutes! oloda International have recently installed a new fully autoJ matic loading system for food giant PepsiCo to move 42 pallets of potato crisps, into a 25.25m road train in 1 load and also loads 26 pallets into a 13.6m vehicle. Where this loading process was completed by forklift truck, the automatic loading process now creates a time saving of 30 minutes per vehicle, down to 7 minutes for the road train and 6 minutes for the 13.6m vehicle. In the world of fast-moving consumer goods, speed is the most important factor. This drives the continued pursuit of everincreasing business process automation. In the area of logistics, Joloda helps customers, including those in the food and drink industry, achieve the full potential of the just-in-time philosophy. Sales director Wouter Satijn, explains: “We develop complete loading and unloading systems for our customers. We not only have the knowledge to bring together and install the technology, we also have our own production facilities in Liverpool and North Wales.” Prestigious Project One of the most prestigious projects Joloda have delivered is the fully automated loading and unloading system at PepsiCo in Broek op Langedijk (NL). The 25m road train consists of an 8.2 metre long trailer in front and a 13.3 metre long trailer at the rear. The bi-folding doors at the back of the front trailer are swung open, as are the doors at the front and back ends of the long trailer. The front trailer is then backed up tight against the rear trailer. This results in a cargo tunnel 21.5 metres long, capable of holding 42 pallets. “Now all the driver has to do is attach a cable to his truck to establish a connection with the control system,” explains Wouter Satijn. “Then he can take a coffee break, because our automatic loading system does the rest.”

Wouter Satijn explains how it works: “On the roller conveyor we group the pallets in three sections of 16, 10 and then another 16 pallets. As soon as the overhead door on the dock opens, a platform with two laser scanners is lowered from above. We use these scanners to make sure the truck is not positioned at too much of an angle and to measure the depth of the trailer. This distance measurement is necessary because the dock is not only used for road trains but also for ordinary 13.6 metre trailers. The 52

reason for this is that Kuehne + Nagel want to be able to decide up to the last moment whether, by chance, they have an empty trailer in the neighbourhood that can pick up a load from Broek op Langedijk.” Wouter Satijn continues: “If the laser scanners measure a distance of 13.3 metres, then 16 plus 10 pallets can be slid into the trailer. At 21.5 metres, all 42 pallets can be placed in the cargo tunnel of the road train, both loaded from the same dock!” Wouter Satijn says that the logistic case at PepsiCo is exceptional in terms of more than just technology: “Just looking at the ROI you can see that the investment pays for itself in less than 18 months! And keep in mind: the system will still be operational in twenty years.” Another benefit Wouter Satijn points out is the achieved space savings: “There is no way around it: forklifts simply require a lot of space. Our system is significantly more compact. The customer can use the remaining space for other purposes. And don't forget the safety aspect: our fully automatic system significantly improves occupational health and safety. After all, there are no longer any hands or forklifts involved in the logistic process.” Green Aspect The green aspect of the system also played a role in the choice for the Joloda system, stresses Wouter Satijn: “Many automatic loading and unloading systems make use of chains. That makes the trailers even heavier. Our solution, utilizing a pneumatic riserplate system, keeps the trailers light. An additional advantage of the trailers is that they are also easily accessible for forklifts. All you have to do is ensure the riser-plates are raised, and the forklifts can drive in and out of the trailer as if it had a flat floor. This means the trailers are suitable for multi-purpose use, which is important to the carrier.” This system has to be seen to be believed! - watch on YouTube https://www.youtube.com/watch?v=cj9XHKDsqD8. J

FOOD & DRINK BUSINESS EUROPE, JUNE 2015

The Amazing Twisterbox! wisterbox® is the synonym of efficient T layer formation. Invented by ACMI in 2001 and patented in 2002, the layer formation system has been appreciated by some of the most important names in the bottling industry on a worldwide scale, such as Pepsi, Nestlé, Danone, Coca-Cola, Heineken, Refresco, just to name a few. In over 15 years of activity, the hundreds of machines installed have always satisfied the customer expectations demonstrating unequaled reliability and efficiency. For this reason the continuous layer formation system is an indispensable element for the ACMI palletisers and a point of reference for those who desire a high efficiency bottling line.

Twisterbox.

Modular Structure The Twisterbox system is characterised by a modular structure constructed in a solid steel tubular frame which confers robustness and solidity to the system. Inside this structure you will find the sliding conveyor belt along with the gripping “plier” modules. The conveyor belt is composed of a material which allows the optimal handling of any type of container and is commanded by brushless motors. The entire area is protected by a system with sliding doors in Lexan® which allows the inside of the machine to be viewed in all of its parts. The Gripping Module The gripping module is the core of the system, each module is characterised by an arm which moves in a longitudinal sense along with a robotised plier that moves in a transversal sense with respect to the product flow. The selection plier in turn, carries out both a vertical up and down movement, as well as, a rotation movement with a maximum angulation of 180°. The

Twisterbox may be configured with one, two or three selection pliers depending on the production speed requested by the customer. The latest technical improvements have substantially modified the selection pliers, the latest pliers are constructed in carbon and are characterised by technical devices that have further improved their function, such as: the concentric closLayer formation. ing movement which implies more precision, the partial closing movement which implies faster The Compakt Palletiser speed, the increased tolerance The latest evolution that concerned the between different formats Twisterbox system was the creation of the which implies fewer format Compakt series of palletisers. On this new series of palletisers, unique in the change overs. market place, a telescopic trolley along Change Over with a fast, fixed palled type stretch wrapThe format change over per with a spool measuring 1.000 mm operation is one of the and an electronic pre-stretching device of advantages of the Twister- 400%, have been integrated inside the box layer formation system same structure of the Twisterbox. With invented by ACMI, which this configuration a single element can proceeds by means of soft- carry out the numerous end of line funcware, regulating the move- tions: layer preparation, palletisation and ment and the opening and stretch wrapping. All of this is grouped closing of the pliers. The into one single machine which is comoperator activates the proce- manded by a single operators panel, intedure from the operators con- grated in a single structure with high levtrol panel and does not have to intervene els of efficiency and reliability. The latest mechanically on any part of the machine. Compakt system is the “HS” version During the many years of activity, which is a low level palletiser capable of ACMI has confronted the different cus- reaching 520 layers per hour even with tomer requirements, further developing 2x2 packs and interlayer application the system and gaining unequalled know- (without overpacking). J how. Today the Twisterbox can handle any type of format or pack and may adapt to any type of production speed. For example, the system is capable of handling packs containing bottles of any type of dimension, plastic crates, cartons, trays, cluster of cans and glass bottles, packs of cans 2x2, loose bottles, large bottles of 3 or 5 litres, food cans and brik. The maximum speed reached by the Twisterbox is 140.000 cans per hour packed in formats 2x2 Compakt palletiser. without over packing. FOOD & DRINK BUSINESS EUROPE, JUNE 2015

I LABELS & LABELLING SYSTEMS

Primera Introduces New Industrialgrade LX2000e Color Label Printer ypically, labels are used for identiT fication, warning and instruction applied to boxes, bottles, containers, drums or other packaging materials. The application areas are diverse, so are the requirements for the product labels and the ink used for printing these labels. There are a variety of inks, dyebased or pigment ink, that can be printed on a large number of substrates. While dye-based ink consists of dissolved dyes, pigment inks receive their coloration by floating colour pigments in the ink. Dyebased inks infiltrate the printing substrate and contain a large colour spectrum, which enables the production of perfect, photo-quality labels, whereas the pigment ink’s colour particles stick to the surface and are not that bright as dye-based inks. On the other hand pigment inks offer far more stability against harsh conditions including water, chemicals, abrasion and exposure to long periods of UV light. Meeting BS5609 Standards Primera Technology Europe, a leading manufacturer of specialty printers, now offers new, specially designed pigment inks, which meet section 3 of the BS5609 standards. BS5609 is a British Maritime Standard. It is the measurement of extreme durability. BS5609 compliance means that a label has been tested and proven to be able to survive in salt water for up to three months. If a label is BS5609 compliant, it has met the most stringent tests for durability in the industry. The BS5609 regulation has two sections:

applications such as frozen or refrigerated foods, beverages, but also bath and shower products or containers and drums of chemicals. Large, separate ink cartridges for cyan, magenta, yellow and black keep cost per label low, while print speeds of 152.4mm (6’’) per second in draft mode, along with 203.2mm (8”) print width produce full colour labels extremely fast.

• Section 2 compliance requires testing: After being exposed to saltwater and sunlight, testing is conducted on the labels which include testing to coated base material. • Section 3 compliance tests labels that have print on them. After being exposed to weathering, testing is done of the labels. The abrasion resistance and the permanence of the print are tested. Conforming to this standard is required for producing GHS hazardous material labels on a desktop label printer (Source: http://www.smitherspira.com/services/mate rials-testing/adhesives-and-labels/subseaadhesion). Newest and Fastest LX2000e Color Label Printer is Primera’s newest and fastest pigment inkjet label printer using the BS5609 Section 3 certified ink. This industrial-grade printer represents an entirely new product class and is suitable for use in production lines not only due to it’s extremely robust construction. The LX2000e stands out especially for its reliability and consistency of the printing output, which is extremely important for example in the logistics or chemical sector. The combination of pigment-based inks and various synthetic materials like Primera’s Tuffcoat Extreme Polyjet material make LX2000e labels highly water and UV resistant. This durability supports FOOD & DRINK BUSINESS EUROPE, JUNE 2015

Easy Integration Wired Ethernet, USB 2.0 or wireless connectivity enables an easy integration of the LX2000e in existing production processes, allows printing jobs to be decentralized started and controlled and supports the cost evaluation. This feature is a must-have for companies with several production sites. The built-in “pizza wheel” label cutter, which is already a standard feature for an industrial-grade printer in the meantime, not only cuts individual paper labels but also through heavy papers and plastics. The LX2000e also features a front colour LCD control panel and a viewing window for label stock levels.

In summary Primera’s new LX2000e Color Label Printer is the perfect solution for industrial but also for retail and private labelling. For further information contact Primera Technology Europe on Tel +49 611 927770, Email: sales@primera.eu or visit www.primeralabel.eu. J

Processing and Filling Solutions From JBT ith eight technology centers on four continents and over 600 W engineers on staff, the scale, scope and reliability of JBT’s technologies surprise those who don’t know the group.

John Bean Technologies SpA is located in Parma. Italy, since 1960 as a leading provider of tailored processing solutions to the food industry. The company develops, manufactures and installs food processing systems in the following fields: product preparation and extraction; evaporation and concentration; sterilization; aseptic filling and packaging. The equipment is designed to process tuna, citrus, tomato, tropical and continental fruits. Processing for canned tuna, citrus juice, tomato paste-diced-sauces, fruit puree and baby food. John Bean Technologies NV is located in St Niklaas, Belgium, as a world leading supplier of integrated solutions for filling, closing and sterilization for metal, glass and plastic containers. From single machines to complete processing lines, the company enhances product value and safety. JBT equipment captures quality, nutrition and taste of your product at the lowest cost per unit produced. J

I MIXING & BLENDING

JR Boone Mixers Produce a Smoother Cake Mix For Avana Bakeries ohn R Boone Ltd has supplied innovative mixing equipment to J Avana Bakeries. The new equipment is a 300L horizontal helical blade mixer (HHBM), featuring a unique combination of rapid, gentle mixing with a tipping action to provide complete discharge of the unit into mobile containers. Utilising a variable speed drive the mixing system produces everything from wet cake mix to sugarpaste. Some of the mix materials, for example glace cherries, are relatively fragile and must not be damaged by the mixer. Sugar paste on the other hand has to be produced in a wide range of viscosities to both cover cakes evenly and produce decorative figures to stand on the cake. The fully integrated Mixer Control system provides variable mixing intensity and flexible recipe management with a touch screen input to give 50 programmable recipes. For further information contact John R Boone Ltd on Tel +44 (0)1260 272894, E-mail sales@jrboone.com. J FOOD & DRINK BUSINESS EUROPE, JUNE 2015

PPMA 29th Sept – 1st Oct 2015 NEC Hall 5 Stand A02

I MIXING & BLENDING

Industrial Mixers and Blenders For the Process Industry ased at Bellshill in Scotland, B Morton Mixers & Blenders has been a leading supplier of industrial mixers and blending technology since 1859. The strength of Morton Mixers & Blenders is its commitment to the core business of developing the technology and design to apply to its mixers and blenders to solve customers’ problems. Morton has gained a reputation for manufacturing equipment of quality and reliability. Whether you mix powders, pastes, creams, doughs, batters, slurries, sludges or granules, Morton can supply the mixer or blender designed to match your application. All mixers are manufactured to comply with ISO 9001:2008 Quality Standard. Morton Mixers & Blenders can also offer a full range of used and reconditioned mix-

ers with units offered at competitive prices. Morton Mixers & Blenders can offer customers the use of Test Facilities for test work using any of the machine types manufactured such as: Multi-Mixers, Ribbon Blenders, Duplex Mixers (Z-Blades), Gridlaps, Air Pressure Whisks, Batter Whisks and Mixer Granulators.

FOOD & DRINK BUSINESS EUROPE, JUNE 2015

All aspects of test work are carefully monitored and recorded in order that the customer’s process can be scaled up to the required production machine. As many customer products are new or in development, complete confidentiality is guaranteed by Morton Mixers & Blenders. Where it is essential that test work takes place on the customer’s premises, machines can be supplied for on-site test work with the assistance of Morton Mixers & Blenders’ experienced personnel. For further information contact Morton Mixers & Blenders, Grovewood Business Centre, Strathclyde Business Park, Bellshill ML4 3NQ, Scotland, Tel +44 (0)845 2770939, Fax +44 (0)845 2770949 or visit www.morton-mixers.co.uk. J

I PUMPS, VALVES & FLUID TREATMENT

Pumping Yeast in Wineries With a Peristaltic Pump inemaking or vinification starts with W the selection of grapes. After harvesting the grapes, they are taken to a winery for fermentation. Red grapes are made from the pulp fermented along with the skin, which gives it the real colour. Whereas white wine is made by fermenting the juice extracted from the grapes. Traditionally the grapes were collected in oak vessels for fermentation. Nowadays, many wineries adopt a more modern approach of fermenting in Stainless Steel containers open at the top. During this stage yeast may be added to catalyse the fermentation process. This usually takes one to two weeks during which the yeast converts sugar in the grapes into alcohol. The alcoholic fermentation takes place in the favourable conditions created by pumping over the mixture and pigeages (traditional stomping of grapes), along with the addition of yeast. At the end of the process, yeast is removed to avoid spoiling of flavor and to leave the wine with a clear, crisp appearance.

Verderflex Hose Pumps in the Filter Press

The process to remove yeast is usually performed by introducing diatomaceous (kieselguhr) earth into the fermented wine. The fine particles of diatomaceous earth attract the yeast cells to form clumps, which remain in a suspension referred to as yeast slurry. The yeast slurry is then pumped through a filter press with a

Verderflex peristaltic pump, before the wine is finally stored or bottled. A German company manufactures chamber filter press system mounted on a skid with a Verderflex VF25 industrial hose pump as part of a standard filter press system. From the yeast slurry storage vessel, the slurry is fed into the peristaltic pump through a 32-mm suction line made from flexible Verderflex hose to reduce pulsation. The peristaltic Verderflex pump is fitted with DIN 11851, type SC stainless steel sanitary connections of 32 mm, with reducing inserts to suit the 25mm tubing. The drive of the pump is a 1.1 kW gear reducer giving a pump speed of 48 rpm, delivering 800 l/hr of product to the filter press. On the discharge side of the filter press pump, a 32mm flexible hose is used to feed the filter press. It is important to eliminate the pulsation on the discharge side of the peristaltic pump, so in addition to the flexible hose, an air dome is installed. The air dome has a volume of approximately 20 liters, allowing it to absorb pulsation, but also to act as a pressurized storage tank for the filter. The chamber filters are evenly filled with wine/yeast slurry mixture, to a pressure of 10 bar. This pressure is maintained and not exceeded, for effective operation. To achieve this a pressure sensor is installed on top of the air dome and is set to stop the Verderflex pump running when 10 bar pressure is registered. At least one pressing shoe of the pump is always positioned to be fully compressing the hose, acting as a valve, thus maintaining the pressure in the air dome and chamber filter. As the wine slowly flows through the filter the pressure inside the air dome reduces, until the sensor registers a pressure of 7 bar, at which point it is set to start the Verderflex pump again. The industrial hose pump continues to stop and start in this cycle, maintaining an even pressure between 7 and 10 bar until the filter is completely filled with the yeast solids. At the end of a batch, when the yeast slurry feed vessel is empty, the periFOOD & DRINK BUSINESS EUROPE, JUNE 2015

staltic Verderflex pump can run dry without damage. Or, if the filter is blocked in the middle of a batch, the hose pump can then be reversed to empty the filter and air dome of yeast slurry, leaving the filter dry, so the yeast cake can be removed. Some of the reasons why Verderflex hose pumps are popular in wineries.

Verderflex peristaltic hose pumps are also commonly used for transferring yeast in the brewery industry.

In these wineries in Germany the duty cycle is for approximately 500 running hours per unit per year. After each season, the hose inside the pump is replaced with a new one. Advantages

The advantages and benefits of the Verderflex hose pumps include: * Self priming, yeast product can be taken from the storage vessel, even if this is below the filter unit * Metering capability, constant flow to the filter at increasing pressures * No moving part in the liquid stream, only the hose in contact with the wine * Reduced maintenance, only the hose as wearing part * Dry running, at the end of each batch the pump runs dry without problems * Non return valves are not required as the pressing shoe close the hose completely. For further information contact Verderflex on Tel +44 (0)1924 221 020, Fax +44(0)1132 465 649, Email info@verderflex.com or visit www.verderflex.com. J 57

I PUMPS, VALVES & FLUID TREATMENT

NETZSCH Pumps & Systems – Solutions You Can Trust he NETZSCH group is a worldwide T active family-owned enterprise with its headquarters located in Selb/Bavaria. 35 companies in Europe, North America, South America and Asia - 54 sales and service offices and 158 agencies highlight the international profile. The business units Analyzing & Testing, Grinding & Dispersing and Pumps & Systems act independently with the goal to

plying worldwide NEMO progressing cavity pumps, TORNADO rotary lobe pumps, screw pumps, macerators/grinders, dosing systems and equipment for custom built and challenging solutions for your applications. Production and Sale Sites

With a production of over 50,000 pumps per year NETZSCH underlines its technology and world market leadership, which the company has gained thanks to the quality of its pumps and original spare parts. It is guaranteed by the core competence and vertical manufacturing which NETZSCH has built up over the many years. With more than 1,700 employees at five development and production sites around the globe as well as 26 sales offices, a cooperation partner in Japan and another 200 representatives, NETZSCH is close to you wherever you are. Strategy

provide every customer with the best possible solution. 140 years of experience stand for technology and market leadership. The common "roof" of the group - the NETZSCH Holding - ensures synergy between the business units by means of global communication.

NETZSCH’S development and sales activities are focused on trend-setting technologies and applications, to expand its market and technology leadership for the benefit of customers. NETZSCH does not see itself only as a developer and manufacturer, but more as your partner from project planning through case management to complete service concepts. Innovation Power

Experts in Pump Solutions For 60 Years

For six decades, NETZSCH has developed, manufactured and marketed positive displacement pumps worldwide. Designed specifically for difficult pumping situations, NETZSCH pumps range in size from the industry’s smallest metering pumps to high volume pumps for applications in the oil and gas or mining industries.

NETZSCH’s innovative and high quality products are globally much valued and accepted. Each year NETZSCH sets further benchmarks and get patents registered for various innovations.

Client Base

NETZSCH has an extremely diverse client base which spans all industries from the Oil and Gas sector, Food, Pharmaceutical, chemical, Mining, Marine and Environmental sectors. NETZSCH works with the major oil companies pumping heavy oil from the well through to the humble farmer transferring slurry from his storage lagoon. The widespread and successful use of progressing cavity and rotary lobe pumps in the Environmental sector makes it one of NETZSCH’s largest business areas. As a manufacturer of both Progressing Cavity Pumps and Rotary Lobe pumps, both from the positive displacement pump family, both technologies being proven and preferred equipment on anaerobic digestion plants pumping sludges, slurries, industrial effluents and various forms of viscous and solids laden fluid streams, NETZSCH is able to listen to the demands of the operator and the application and make an uncompromised best choice selection. J

Product Range

For six decades NETZSCH has been supFOOD & DRINK BUSINESS EUROPE, JUNE 2015

I DAIRY

Aurivo is Well Prepared For Post-quota Era Following a year of continued growth, despite the turbulence in global dairy markets, Irish dairy co-operative Aurivo is well placed for future expansion in the post-quota era. eadquarterd in the North West of Ireland, with businesses in consumer foods, dairy ingredients, retail stores, animal feeds, livestock marts and timber processing, Aurivo employs 700 people directly and has almost 1,100 dairy farmers. Aurivo (formerly Connacht Gold) is the result of consolidation within the Irish dairy industry. Connacht Gold was established in 2000 following the merger of the North Connacht Farmers’ Cooperative Society (NCF) and Kiltoghert Co-Operative Agricultural & Dairy Society. In 2012, Connacht Gold acquired the milk and agri-store businesses of Donegal Creameries to increase its milk pool by 30% to 350 million litres and its turnover to over Eur400 million. This move firmly established Connacht Gold as the largest milk processor and cooperative in the West of Ireland. The business was re-launched under its new identity – Aurivo – in 2013.

Aurivo has milk pool of 350 million litres.

retail milk and cream brand - and Organic for Us – a nationwide organic milk brand produced entirely from one organic farm in Inishowen, County Donegal. Aurivo’s Connacht Gold brand is an award winning, innovative and growing nationwide butter brand, with a range of nine products. The Connacht Gold butter brand is trading ahead of the yellow fats category and is achieving continued sales and category

Export Business About 75% of Aurivo’s current milk Tom Cunniffe (left), chairman of Aurivo, with chief pool of 350 million executive Aaron Forde. litres is exported in the form of bulk butter, enriched milk powder and yoghurt powder to almost 50 countries globally. Aurivo operates two milk processing sites - a liquid milk plant in Killygordon, County Donegal, which pro-cesses approximately 90 million litres of milk for the Irish market annually, and a dairy ingredients plant, which was established on a greenfield 55 acre site in Ballaghaderreen, County Roscommon in 1972. The dairy ingredients site exports enriched milk powder worldwide in partnership with Ornua (formerly the Irish Dairy Board). Key export markets for Aurivo include Afghanistan, Nigeria, Saudi Arabia, DRC, Congo, Iraq, Senegal, El Salvador, Costa Rica, USA, the UK and Germany. Domestic Market In Ireland, Aurivo has a portfolio of local, regional and national milk and butter brands, including Donegal Creameries - a local

Aurivo’s Connacht Gold brand is an award winning, innovative and growing nationwide butter brand.

FOOD & DRINK BUSINESS EUROPE, JUNE 2015

share growth year on year. The Connacht Gold brand is also the leading regional milk and cream brand in the West of Ireland. Financial Performance Aurivo delivered a strong financial and operational performance across its business units and global export markets in 2014. Despite volatile market conditions and a slight decline in turnover from Eur454 million to Eur447 million during 2014, Aurivo achieved a significant improvement in profitability, with operating profits increasing by some 70% to Eur8.9 million, while still managing to provide a strong milk price to its dairy farmers and reducing net debt from Eur12.9 million to Eur1.4 million. Aurivo’s dairy ingredients business generated the largest turnover of its five business units in 2014.

Aurivo’s dairy ingredients business generated the largest turnover of its five business units in 2014.

“I can say with some certainty that supplier confidence in Aurivo is very high as 98% of our suppliers have signed milk supply agreements, which bodes well for the cooperative in the post quota era we are operating in 2015,” says Aaron Forde, chief executive of Aurivo. Post-quota Era Aurivo has invested Eur30 million in the past four years in Aurivo has acquired leading UK sports nutrition preparation for the brands company, My Goodness Ltd. abolition of EU milk quotas. This has centred on investment in new processing technologies to allow Aurivo to grow and innovate by strengthening its customer relationships. Aurivo has also established a biomass energy facility at its dairy ingredients site at Ballaghaderreen, becoming the first large scale milk processor in the country to switch to this source of energy (see Panel). Following the abolition of quotas, Aurivo milk suppliers are expected to increase production by some 25% over the coming years. Aurivo is supporting suppliers to be as efficient as possible. In 2014, Aurivo introduced a Farm Profitability Programme to increase farm sustainability, by working with farmers, local stakeholders and the national industry to improve the efficiency and profitability of family farms.

FOOD & DRINK BUSINESS EUROPE, JUNE 2015

To meet the planned increased milk supply, Aurivo plans to invest a further Eur40 million by 2020 in upgrading existing plants and installing new technology to allow the dairy co-operative to expand into new markets. “World dairy consumption is projected to grow considerably over the next ten years and much of this growth is being driven by the developing markets of the Middle East, Asia and Africa. Africa has a billion people across 52 countries and it offers tremendous opportunity as population grows and income per capita grows,” Aaron Forde points out. He continues: “Me-eting the demands of a fast changing world, through innovation and new product development is key to the agrifood sector. Aurivo is maximising this potential through improved competitiveness and by responding to changing customer requirements by delivering tailored product solutions, flavours and textures.” Indeed, Aurivo has been strengthening relationships across its international business by making in-market visits in Africa, Europe and the Middle East.

New €5.25 Million Biomass Plant A new wood-fuelled energy system was installed at the Aurivo dairy ingredients plant in Ballaghaderreen in 2014. It will cut carbon emissions in half through a dramatic 70% reduction in usage of heavy fuel oil. The Eur5.25 million biomass plant, which became operational in May 2014, uses 30,000 tonnes of woodchip per annum. The plant is the first of its kind in the West of Ireland and Aurivo is the first large scale milk processor in the country to switch to biomass as a source of energy. The new facility will ultimately be developed into a combined heat and power (CHP) plant and by 2016 Aurivo plans to be exporting energy into the national electricity grid. The Dairy Ingredients site in Ballaghaderreen has won the prestigious Sustainable Energy Association of Ireland (SEAI) ‘Leadership in Energy’ Award 2014 for manufacturing businesses in Ireland. This National Award recognises the significant improvements in energy savings and efficiencies achieved on the site in recent years.

Development Strategy Aurivo has a defined development strategy- FOCUS 2020- which is underpinned by four key business pillars- Customer Focus, Operational Excellence, Innovation and People and Performance. “Aurivo has a will to win in all our markets – growth is in our DNA, whether organic or through acquisition, to deliver for our members,” he remarks. For example, earlier this year, Aurivo acquired leading UK sports nutrition brands company, My Goodness Limited. The acquisition provides Aurivo with significant access to the growing sports nutrition/protein drinks market in the UK, Ireland and further afield. Aurivo won the SEAI Leadership Award 2014.

Aurivo technical manager Robert Hosey strengthening customer partnerships in Africa.

The British company’s dairy based protein brands are widely available through leading supermarket chains in addition to specialist sports and leisure outlets across the UK. From being trialled by athletes in the Beijing Olympics, the For Goodness Shakes brand has gone on to be one of Britain’s biggest selling recovery and protein ready to drink brands. Innovation Capability Aurivo is also taking steps to improve its R&D and new product development capability. Along with other Irish dairy processors, Aurivo is investing in the national Dairy Processing and Technology Centre (DPTC) and Moorepark Teagasc Ltd (MTL). The two projects represent an innovation investment of Eur35 million by the Irish Government and industry and are designed to position Ireland as a world leader in dairy innovation, and help to maximise the long term growth opportunities created by anticipated increase of 50% in the Irish milk pool by 2020.

“Our global consumer base with diverse tastes and product functionality expectations, challenges our business to develop innovative product and ingredient solutions to deliver on our customer partnership programs. Our support of, and collaboration with the DPTC and MTL will strengthen and assist our business in delivering for our customers to both our mutual benefit,” says Aaron Forde. Aurivo expects to benefit in export markets from Ireland’s international reputation for top quality, sustainably produced food products and the county’s grass-based dairy model. Aurivo is a fully verified member of the Bord Bia’s Origin Green Programme and its Sustainable Dairy Assurance Scheme. The Sustainable Dairy Assurance Scheme is the first national dairy scheme of its kind anywhere in the world. It sets out requirements for best practice on Irish dairy farms in animal health and welfare, land management, biosecurity, safe farming practices and the production of safe milk. It also provides a framework for measuring the continuous improvement of each participating farmer, recording and monitoring sustainability credentials at farm level. Outlook Aurivo has entered the post-quota world in a solid position and is well prepared for significant growth in the years ahead. “Aurivo has a strong efficient operational platform, excellent global customer relationships and the people and innovation pipeline to deliver for our member owners,” says Aaron Forde. “The journey won’t be a straight line with expected volatility in prices. However world population is increasing and dairy demand is expected to grow, in global terms, by 2-2.25 per cent annually.” The Aurivo chief executive concludes: “Aurivo continues to work hard to add more value to our owners’ milk so we can return a competitive milk price. Our customer positions are built with this in mind. We have a customer base demanding more milk for growing markets and so we continue our journey of growth with our customers and for our owners.” J

FOOD & DRINK BUSINESS EUROPE, JUNE 2015

Caraher & Ward Limited CRV Buildings, Ardee Road, Dundalk, Co. Louth

General Engineering, Fabrication & Welding Specialists Vehicle Maintenance & Repairs

Tel. (042) 9339089 Fax. (042) 9336784 Email: caraherward@eircom.net

I DISTILLING

Great Northern Distillery to Play Key Part in the Irish Whiskey Renaissance Established on the site of the former Harp Brewery in Dundalk, the Great Northern Distillery is scheduled to commence Irish whiskey production in June 2015.

reat Northern Distillery (GND) encompasses two substantial distilleries - a 5 million Litre of Pure Alcohol (LPA) capacity pot still distillery and a 10 million LPA column distillery. GND will distil the full range of Irish whiskeys – grain, single malt, peated malt and pot still. The distillery will serve as an efficient low cost supplies of quality grain, pot still and malt whiskey to private label and retail own label customers as well as other distilleries. Irish whiskey is produced in three categories – grain whiskey, pot still whiskey and malt whiskey. Grain whiskey is produced from unmalted cereals normally maize or wheat with a percentage of malted barley, and is distilled in columns. Pot still whiskey is made from a combination of a minimum of 30% malted barley, the rest unmalted cereals, usually unmalted barley, and is distilled in pots. Malt whiskey is produced from a mash of 100% malted barley and is distilled in pots. Scottish whisky varies from Irish whiskey in that it has no pot still category. Substantial Benefits Building the two distilleries on the site of

the former Harp Brewery, which was established in 1895, has been advantageous for GND as 90% of the equipment was already in place. “The benefits are a substantial saving in CAPEX plus many services, water, gas, power, effluent are all on site and intact and will be utilised,” explains John Teeling, executive chairman of Great Northern Distillery and one of John Teeling, executive chairman of Great Northern Distillery. Ireland’s most successful business entrepreneurs. “There are major urations. It has been a good experience to benefits in converting a good brewery site. date.” Diageo, the owner of the Harp site, did In addition to purchasing the site, an everything to the highest quality standard. incremental investment of over Eur9 milMuch of the equipment and the facilities lion is required to adapt the existing plant were ready to go.” which had already had many millions spent He elaborates: “Where we showed inno- on it. vation is that we saw that old copper kettles and mash tuns could be adapted to become Cooley Distillery pot stills. The site in Dundalk where beer John Teeling has already been successful in was brewed since 1895 is well located by building from scratch an Irish whiskey the railway and has almost everything we business of scale, having founded Cooley needed. Adapting a brownfield site poses its Distillery in 1985 before selling the compaown problems as you are stuck with config- ny to US spirits group Beam (now part of Suntory of Japan) for $95 million in 2011. GND is a private company owned by the Teeling family and individuals who between them established Cooley Distillery and rebuilt Kilbeggan Distillery. The directors are John, Jack and Stephen Teeling, Jim Finn and David Hynes. Irish Whiskey Revival Indeed, John Teeling and his fellow cofounders of Cooley Distillery have played a key role in the revival of Irish whiskey. Irish whiskey was for a long period dominant in world markets. In the 19th century Irish whiskey accounted for 60% of global sales and there were over 1,000 distilleries operating in Ireland. However, Irish whiskey has since been eclipsed by Scotch whisky on the world stage and after a steady decline Ireland was left with just one distilling company – Irish Distillers - in 1973. The establishment of Cooley Distillery in 1987 heralded a revival in fortunes. Now, Pernod Ricard (owner of Irish Distillers),

Mash tuns at Great Northern Distillery.

FOOD & DRINK BUSINESS EUROPE, JUNE 2015

Jose Cuervo (Bushmills), Jim Beam/Suntory (Cooley) and William Grant & Sons (Tullamore DEW) are operating distilleries in Ireland. Furthermore, new distilleries which are planned or are under construction now number in double-figures, although these are generally small pot still operations. Starting Again Having founded, developed and sold Cooley Distillery, what has prompted John Teeling to start a new Irish whiskey venture? “Most of the new distilleries are pot still and small. They need grain whiskey distilled in columns as most whiskey is a blend. GND will produce a cost efficient supply of grain and single malt for existing and new distilleries, retail own label customers and private labels,” he replies. His approach to GND will be somewhat different to the development of Cooley. GND will be “much bigger and focused on selling bulk new whiskey directly from the stills,” he adds.

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THE FIRST MICROBREWERY IN COUNTY CAVAN

OPENING SOON

FOOD & DRINK BUSINESS EUROPE, JUNE 2015

New Dublin Distillery John Teeling’s two sons, Jack and Stephen Teeling, are in the process of developing the Teeling Whiskey Company in the Newmarket area of Dublin. The company is investing Eur10 million in establishing a distillery and visitor centre in the Irish capital, making it the first new distillery in Dublin in 125 years. The first whiskey spirit to be produced in Dublin in almost four decades has now been distilled from the copper pot stills at the Teeling Whiskey Distillery. This will be matured for three

Asia, Africa and South America offer vast potential. According to the Irish Whiskey Association, there are 26 new or proposed distilleries across Ireland and annual exports of Irish whiskey are now valued at over Eur300 million, up 220% since 2003. The Irish Whiskey Association has recently published a strategy document which outlines the sector’s ambitions. This includes investment of over Eur1 billion between 2010 and 2025 to increase production by 41% over the same period, as the developing Irish whiskey industry seeks to grow exports from 6.5 million (9-litre cases) to 12 million by 2020 and to double exports again to 24 million cases by 2030 Stephen and Jack Teeling.

years to become true Dublin and Irish whiskey. Founded by Jack Teeling in 2012, the Teeling Whiskey Company was set up to revive his family-old trademark of Irish whiskey and bring distilling back to Dublin, where Walter Teeling had a distillery on Marrowbone Lane in the 18th century. The new distillery provides the Teeling Whiskey Company with complete control of all aspects of its whiskey production, from grain to bottle, so that it can be a category leader in terms of innovation. Jack Teeling, founder and managing director of the Teeling Whiskey Company, comments: “This is a huge milestone in the story of Teeling Whiskey. It has taken three years of planning, hard work and significant capital investment, but Teeling Whiskey is finally home. We are proud to be at the forefront of an emerging craft distilling movement and will continue to introduce high quality unique expressions of Irish whiskey to lead the expansion of the market in terms of depth and flavours.” The new business will be complementary to the activities of Great Northern Distillery. “The Teeling Whiskey Company in Newmarket is a medium sized pot still operation focused entirely on branded Teeling Whiskey. It will be supplied grain whiskey from GND for Teeling blended products. Jack and Stephen will ultimately manage and control GND,” explains John Teeling. Irish Whiskey Renaissance Irish whiskey is now the fastest growing brown spirit category in the world. Sales of Irish whiskey are expected to continue to accelerate, driven by young drinkers in America, the opening up of markets in Eastern Europe and the drink’s growing popularity amongst the expanding middle classes in other emerging markets. Irish whiskey’s main markets of the US and Western Europe are still growing strongly while the relatively untapped markets of

Assan, New Inn, Ballyjamesduff, Co. Cavan, Ireland Phone: 049 8545040 Fax: 049 8545040 E-mail: assanengineeringltd@eircom.net

ASSAN ENGINEERING LTD Est. 2004 Assan Engineering were principal Mechanical Contractors on the Great Northern Distiller y Project.

Process Pipe Installation specialists to the food and beverage industry.

Assan Engineering also offer turnkey systems from design through to commissioning.

Assan Engineering fabrication includes valve blocks, flowplates, water treatment systems, tanks, cip systems, refrigeration skids and Rotoclone systems.

FOOD & DRINK BUSINESS EUROPE, JUNE 2015

Drawbacks Although Irish whiskey is a very attractive category with emerging regions offering huge potential as consumer incomes increase, a key drawback is that Irish whiskey has to mature for several years. This demands high working capital to distil the spirit and to buy the maturation casks and invest in warehouse storage capacity. Economies of scale are also crucial, which places small distilleries at a serious disadvantage. In addition to the high barriers to entry in the form of capital costs, Irish whiskey is also a marketing and brand intensive business. A further challenge is the difficult route to market with the large spirits giants dominant, necessitating the need for smaller players to seek out partnerships to gain distribution. Perils and Opportunities “The perils facing Irish whiskey are totally outweighed by the opportunities,” says John Teeling. “Irish is only scratching the

Pot stills at Great Northern Distillery.

surface in most emerging markets and has no serious presence in Asia, Africa and South America. Irish is more suited to modern tastes than Scotch or Canadian.” However, he cautions that many of the proposed newcomers will struggle to make money. “Many of the new ventures do not realise the problems of ‘route to market’ and then ‘rotation off the shelves’. This supposes they can finance the early years of no revenue while their whiskey matures.”

Top of column stills.

John Teeling elaborates: “In addition, most new distilleries will have high unit costs due to small scale – so they will need a premium retail price to survive. They will all be fighting for the same small premium segment. GND unit costs because or scale and efficient CAPES will be half to a third of many new projects.” So does he expect the smaller ventures, if successful, to eventually be sold to large global drink groups with the necessary marketing and distribution muscle to develop major international brands? “I expect the smaller ventures will seek distribution partners earlier rather than later. A number of the international companies are in talks,” John Teeling replies. J

FDT Consulting Engineers & Project Managers Provide Total Engineering Service

New Industrial Automation Control System From Rockbrook Engineering

DT Consulting Engineers & Project F Managers provide a Total Engineering service covering Sustainability, Project

ockbrook Engineering is providing the new Industrial R Automation Control System for the Great Northern Distillery. The industrial automation system has been developed specifically for

Services, Process Support & Continuous Improvement and Asset Care. FDT have being working on the Great Northern site in Dundalk since the company’s foundation in 1991. FDT were involved in the Great Northern Distillery project from the start and provided Process Engineering and Project Management support to all the key work packages of the project including Dry Goods, Brewhouse, Fermentation, Pot Stills, Column Stills, Spirit Handling, Utilities and Automation. FDT are proud to have been part of the transformation of this site into the second largest distillery in Ireland and of the return of distilling to Dundalk after 90-years. J

distilleries using Siemens SIMATIC technologies including Siemens WinCC/Step 7 technologies. By Integrated the control system seamlessly into the Siemens platform the Great Northern Distillery can rest assured that its automation systems will be supported and easily adaptable to meet its production and business requirement for many years to come. J

FOOD & DRINK BUSINESS EUROPE, JUNE 2015

Virginia Beer & Brewhouse – County Cavan’s First Mico Brewery irginia Beer & Brewhouse is a micro V brewery/restaurant opening in Virginia, County Cavan in 2015. This will make it the first micro brewery in Cavan. The beer will be brewed on site in Virginia and served on site in the resturant, and will also be for sale in the local area. Virginia Beer will start small and hope to expand in the near future, both in the variety of beers and also markets. Virginia Beer & Brewhouse expects to be open for business by at the latest October, for the Pumpkin Festival that is held in Virginia. J

Nikal Steels Ltd is recognised as one of the top stainless steel stockholders in Ireland & the UK. Proud to service the dairy, brewing, food & petrochemical industries

Process Systems From Assan Engineering ssan Engineering are designing and installing A process systems for the food and beverage industry for over a decade. Assan Engineering work both in Ireland and abroad with projects in Belgium, France, England, Wales, Philippines and Peru. The comany are currently working on a project that will be aimed at the American market. Assan Engineering have also designed and developed a water filtration system, which should go into production in 2015. Assan Engineering are currently working on the Great Northern Distillery in Dundalk as the principle mechanical contractor. Assan would hope to be involved with other distilleries in the future. J

Assan, New Inn, Ballyjamesduff, Co. Cavan, Ireland Phone: 049 8545040 Fax: 049 8545040 E-mail: assanengineeringltd@eircom.net

Ireland’s Biggest Stainless Steel Stockholder & Distributor of L Pipe, Fittings, Flanges L Dairy & Metrics L Angles, Flat, Round Bars L Stainless Sheet & Plate L Valves & Actuation L Instrumentation L Official Distributor of Pipetite “Pipetite, a must for a hygienic panel/wall pass system in the process, food & beverage industry”

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FOOD & DRINK BUSINESS EUROPE, JUNE 2015

I ENGINEERING

Celebrating Over 25 Years in Business – Spectac International Moves to New Facility pectac International, a leading Irish stainless steel manufacturS ing company, has moved to a new facility at the Finnabair Business Park in Dundalk, County Louth. Spectac International specialises in the design, manufacture and installation of stainless steel vessels, tanks and turn-key solutions in the Brewing, Distilling, Food and Beverage, Chemical and Pharmaceutical industries. The new premises offer 44,000square feet of scope for the engineering facility, along with a newly built high bay building which is 18 metres tall, specifically structured for the manufacturing of larger tanks. The manufacturing floor is segregated into a LEAN facility where there is ample storage area, stock rooms, pipework stations, welding stations, cleaning stations and vast room for machinery such as their profile ring roller, Coiling machine and more. The move was decided last year with a packed order book and ongoing large scale projects for the engineering firm. Managing Director Tony Healy says “It was a no brainer to take this opportunity when the company is growing considerably. It also future proofs the establishment with a larger facility to think bigger than what we could before.” The firm’s increased growth in the Brewing and Distilling sectors has raised more than a few eyebrows and their move to the former National Pen Building is setting the standard for their competitors. Established in 1986, Spectac International is a family business, founded by Tony Healy, who has over 40 years of industry experience in the Stainless Steel Tanks and Pressure Vessel market. In 2012, his daughter Faye Healy joined and is now Director of company. “It has been a very long, tiring road to getting this place up-andrunning,” says Faye Healy “It was a derelict building and the entire place had to be gutted out at the beginning. Trying to create a concept that would fit the ethos of the company and making sure it would work was a challenge for me to project manage. It was hard to even imagine the place completed, but now to see the finished

Faye Healy, Director, and Tony Healy, Managing Director of Spectac International.

building and our new offices, it really is a great achievement.” Faye Healy pulled out all the stops to get the building ready for the big move from their old premises. “My main focus was to make a LEAN environment for everyone to work in, so it was important for me to get it done and get it done right, plus I couldn’t wait to start working from the new premises, so I made sure it happened on-time and under budget.” Since the engineering department has moved in, there have already been additional changes made to the site due to the growth in the company. The current car park is being extended to facilitate the rise in employee numbers for the firm, and the father/daughter duo has also purchased the site behind the plant for future growth for Spectac International in a bid to extend at some point in the future. J

FOOD & DRINK BUSINESS EUROPE, JUNE 2015

I CONFERENCE & EXHIBITION

Creating an Efficient and Sustainable Food Industry Through Data The 2015 Food and Drink IT Summit will be held on 7th of July in the Motorcycle Museum, Birmingham. he theme of this year’s event is ‘Creating an Efficient and Sustainable Food & T Beverage Manufacturing Industry Through Data’. The move towards a smart food business is increasing. More and more data is available throughout the food factory and across the whole food chain. This availability of data and the means to analyse it and effect improvements is leading to increased efficiencies, reduced waste, lower costs, increasing productivity etc. The 2015 Food and Drink IT Summit will bring together key stakeholders and regulatory bodies from food and beverage manufacturers, food retailers and food service companies, plus key suppliers of software, hardware, consultancy services etc that are pushing the limits in increasing the efficiencies of the UK food and beverage industry through the collection and intelligent use of data. The speaker line up is drawn from senior management throughout the food and drink industry who have delivered improved performance through the intelligent use of data to improve areas such as logistics and supply chain, traceability, quality & safety, production, human capital management, waste reduction, energy management etc. If you are interested in creating a smarter, more efficient and more sustainable food

industry, join your industry peers for a engaging and thought provoking event which will stimulate debate and help you to make the correct decisions to improve your food and beverage operations. Key topics will include: * Inventory management, * Planning and scheduling, * Data capture, * Process control and automation, * Sustainability, * IT Infrastructure, * Time management,

* RFID. Labelling, Coding, * Electronic Data Interchange, * Logistics & Supply Chain, * Recipe Formation, * Traceability, * Quality and Safety, * Energy Reduction, * Waste Reduction, * Production Optimisation, * Warehouse Management, * Plant Management, * Innovation, * Lifecycle Engineering, * Laboratory Information Management

FOOD & DRINK BUSINESS EUROPE, JUNE 2015

Systems, * Customer Relationship Management, * Human Capital Management, * Business Intelligence, * Business Transformation, * Manufacturing Performance, * Resource Planning. Whether you work for a food and beverage manufacturer, retailer or foodservice company and are interested in learning how to improve your business through data, or whether you are a supplier of software, hardware or consultancy services, then this is the event for you. In addition to hearing from an impressive line-up of speakers from food and beverage manufacturers, retailers and foodservice companies that are at the cutting edge of utilising data in their business, delegates will also have the opportunity to network with the leading food and beverage manufacturers, retailers and foodservice companies in the UK and Europe. The Food and Drink IT Summit 2015 will also provide a forum for visitors to be able to meet with the leading suppliers of software, hardware and consultancy services that are helping food and beverage companies create a smarter and more efficient food business. Register now for limited time Free Entry to the Conference & Expo at www.itfoodsummit.com/delegatesregister/. J

I COCOA

Growth in Dark Cocoa Powders Reflects More Adult Taste Trend Cocoa powder is a key ingredient for flavouring and colouring and Marcel Nouel, Product Line Manager, Cocoa Powder, for Cargill Cocoa & Chocolate, examines what dark cocoa powder can bring to a wide range of applications. ocoa powder is a wellC established ingredient with a key role to play in

in countries such as China, India and Indonesia. Cargill is ideally positioned to help manufacturers create these premium products – and with our cocoa processing plant in Gresik, Indonesia, we also have the regional presence too.

bakery, dairy and confectionery products – and its use is growing in markets across the world. In countries to the east of Europe, such as Russia and Ukraine, reduced consumer spending power has seen a move towards compound coatings, using cocoa powder rather than pure chocolate to provide great taste for affordable confectionery treats. In addition to economic variations, different markets and geographies also have different tastes. Darker Taste Trend A developing consumer trend is the move towards a less sweet, more adult taste profile in products like ice cream for

Tailored Powders But it isn’t just about quality and flavour. Key is the ability to create tailor-made powders for highly individualised products. Our expertise in blending and optimising recipes to create new products also comes in handy here for our customers. The expanding market for bespoke powders for premium products means this is a growth area for us, as more companies want their own signature powder and taste.

example, particularly in Europe in countries such as France and Germany, and in the US. This is why darker cocoa powders, such as Cargill’s Gerkens® high impact cocoa powders, are so suited to this developing taste trend, as it provides the deep dark colour and dark chocolate taste that consumers are demanding. As well as this taste trend there is also a growth in premium products providing affordable treats with a touch of luxury, particularly in the areas of confectionery and ice cream. This is not just the case in established markets but also in markets such as Asia where there hasn’t been a long tradition of chocolate consumption, FOOD & DRINK BUSINESS EUROPE, JUNE 2015

Application and R&D Expertise Specialists from across our business work together in our application and R&D centres around the world – with the crucial knowledge around local taste preferences and how individual ingredients fit together in the overall matrix of ingredients. Two examples of this expertise are projects we have undertaken for dessert and bakery manufacturers. The dessert manufacturer wanted to change the flavour profile of their product while retaining the same mouthfeel. We worked with them to create the right powder to give the flavour and colour required, without impacting on the stabiliser system which would have changed the mouthfeel. When a bakery manufacturer wanted to reformulate their product to reduce sugar, they understood that reducing sugar would result in a stronger flavour from their existing cocoa powder, so we worked with them to create a new powder enabling them to reduce sugar without altering flavour.

With the creation of such products come challenges in ensuring consistency in taste and colour, and ensuring the right mouthfeel to get the product just right. Cargill is a major supplier of a range of food ingredients as well as cocoa and chocolate so is in a unique position of being able to supply and give advice on a whole range of ingredients. What we call our T model approach integrates the broad food knowledge of our company with the depth of decades of experience in sourcing and creating our cocoa and chocolate. Our experience in other sectors and access to a large ingredient portfolio means we can provide solutions to complicated challenges, and deliver innovation

across all applications. Holistic Approach So as well as having the widest range of cocoa powders on the market, with a high impact range which gives exactly the dark colour and flavour demanded by todayâ&#x20AC;&#x2122;s consumer, Cargill can also provide a genuinely holistic approach to reformulation or new product development. We achieve this by creating a real, deep and lasting partnership with manufacturers and it is testimony to the level of trust and shared knowledge that so many of these partnerships are of many years standing. If you would like to find out more about how GerkensÂŽ cocoa powders combined with our development and innovation expertise can help your company email cocoa_chocolate @cargill.com. J

I COCOA

Mondelez International's Cocoa Life Sustainability Program Fully Operational in Indonesia ondelez International, the world's M largest chocolate company, has announced its $400 million Cocoa Life program is fully operational in Indonesia, the world's third largest cocoa origin and

the biggest cocoa origin in Asia. By the end of 2015, Cocoa Life will be operating in more than 100 Indonesian communities and will have trained 8,000 farmers in agricultural and business skills to help improve cocoa yields, protect the environment and boost farmer incomes. By 2022, the program plans to train 50,000 farmers and in turn benefit about 200,000 people in local communities, promoting women's empowerment and education for children. "Cocoa Life is taking root in Indonesia because it's focused on farmers," says Andi Sitti Asmayanti, Director of Cocoa Life for Southeast Asia. "Through Cocoa Life, we're empowering farmers to create action plans 76

with their communities and shape the future of cocoa. Together with the Indonesian government, our suppliers and partners, we're helping cocoafarming families create the kind of communities they want to live in, and inspiring the next generation." Cocoa Life is working with farmers in two Indonesian regions - Sulawesi and Sumatra - and along with suppliers Cargill and Olam aims to strengthen the country's position as a leading producer of high-quality, sustainable cocoa. And by partnering with the nongovernmental organization Save the Children, Cocoa Life will help promote gender equality through leadership and business training for women in cocoa farming communities, as well as agricultural education for youth. Together, farming families will create Community Action Plans to achieve specific development outcomes, such as improving health and nutrition education. "Save the Children knows when women and mothers do well, their children's lives improve, too," says Carolyn Miles, Save the Children President & CEO. "We believe our partnership with Cocoa Life will help parents in cocoa farming communities in Indonesia to have a sustainable income so they can FOOD & DRINK BUSINESS EUROPE, JUNE 2015

provide for their children and give them the opportunity to reach their full potential." Cocoa Life is already seeing results In Indonesia. Two years ago, a number of Indonesian farmers were abandoning cocoa for other cash crops as yields declined. Existing cocoa trees were aging, and there wasn't sufficient infrastructure to support new plantings. Today, Cocoa Life's partnership with the Indonesian Coffee and Cocoa Research Institute (ICCRI), Cargill and Olam has offered farmer inputs such as training, supplies and a new nursery so farmers have been able to continue growing cocoa and significantly boost their crop yields. J