Food and Drink Business Europe December January 2009

December/January 2009

Friesland Foods and Campina finally merge

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- 3 N EWS B RIEF

Logistics & Distribution. . . . . . . . . . 12

Business news from the UK and international markets.

Information Technology . . . . . . . . . 13 Energy & Environment . . . . . . . . . . 16 Inproving boiler energy efficiency.

- 4 B REWING & D ISTILLING

PAGE 9 Cees ’t Hart, ce, FrieslandCampina.

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Developments in the global alcoholic drinks sector.

Patrick Coveney, ce, Greencore.

Bottling & Packaging . . 19-21 & 46-48 Kosme UK offers the total beverage solution. . . . . . . . . . . . . . . . . . .46 Quality & Hygiene . . . . . . . . . . . 22-26 Hygiena technology delivers ‘more with less’. . . . . . . . . . . . . . . . . . . . .23

- 6 M ERGERS & A CQUISITIONS Coverage of British and international deals.

- 9 C OVER S TORY

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Friesland Foods and Campina finally merge.

Muhtar Kent, president, CocaCola.

- 11 D AIRY

Processing & Manufacturing . . . . . . . 27-28 & 32-42 Food Grade Lubricants. . . . . . . . . . . . . . .27 Total Evaporation & Drying Solutions. . . .36 Total baking systems solutions from Gouet. 38 Total mixing solutions from Silverson Machines. . . . . . . . . . . . . . . . . . . . . . . . .40 Materials & Ingredients. . . . . . 30 & 52 Product Handling . . . . . . . . . . . . 43-44 Total product handling solutions from Sigpack Systems. . . . . . . . . . . . . . . . . . . .43 Materials Handling . . . . . . . . . . . 49-50 ‘The buck stops here’ – Materials Handling, chilling and freezing solutions. . . . . . . . . .49

New era dawns for global dairy market.

World’s top 10 dairy companies.

PAGE 9

Kees Gielen, cfo, FrieslandCampina.

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Theo Spierings, coo consumer products international, FrieslandCampina

Managing Director: Colin Murphy Editor: Mike Rohan Sales Director: Ronan McGlade

- 17 M ARKET F OCUS Ten trends to watch in packaged goods in 2009.

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Advertising: Susan Doyle Sales Manager: Dave Thornton

Carlos Brito, ce, Anheuser-Busch InBev.

Production Manager: Susan Doyle Production Assistant: Jackie Kinch

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€19b Russian bakery market shows eastern promise.

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N N E E W W S S Profits Down at Greencore Higher raw materials costs and a weakening sterling have impacted upon annual profits at Dublin-based Greencore, which is one of the UK’s largest convenience food manufacturers. Pretax profits for the year ending September 26th last dropped from Eur65m to Eur55.3m (£46.9m) before an exceptional gain of Eur9.2m. Operating profits fell from Eur81m to Eur76.6m and revenues rose by 3.2% or 13.3% on a constant currency basis to Eur1.3b. The UK market accounts for 91% of group sales and 80% of operating profits. Indeed, the weakness of sterling transformed a 5.5% increase in operating profits into a 4.5% decline.

“These results represent a resilient response to a challenging year which saw double digit food inflation, a dramatic weakening in sterling, declining confidence in all consumer markets and the negative impact of a cost concealment issue at our Mineral Water business. Despite these headwinds, our group has delivered constant currency growth in sales, profit and EPS. Our portfolio continues to work well in each of our core markets, we have a well financed balance sheet and we have made excellent early progress in our new North America Convenience Foods business - a strategy that will in time transform the scale, shape and returns of our group,” says Patrick Coveney, chief executive of Greencore.

Patrick Coveney, chief executive of Greencore.

Profits Rise at Heinz HJ Heinz has lifted net income

by 17% from $432m to $506m in the first half to October 29th last, although the rise includes a $97m increase in currency gains, reflecting the company’s strategic decision to hedge translation exposures on key currencies. Sales grew by 8.9%, with organic sales growth of 7.9%. Net pricing increased sales by 6.2%, as price increases were taken across the US food group’s portfolio to help offset increases in commodity costs.

Volume increased 1.7%, due to solid growth in the North American consumer products segment, Continental Europe, Heinz branded products in the UK and the emerging markets, partially offset by volume declines in the US food service segment and frozen desserts and potatoes in the UK.

Northern Foods Broadens Customer Base Northern Foods, one of the UK’s leading convenience foods manufacturers, has taken a significant step to broaden its customer base beyond the retail sector after winning a major contract to supply in-flight meals and sandwiches to British Airways for its short-haul flights from Heathrow Airport.

Northern has teamed up with logistics group DHL for the 10 years contract.

Unilever to Invest €26m to Consolidate French Ambient Foods Operations Unilever’s Amora-Maille French ambient food business is to consolidate production from three facilities into a single site at the Chevigny-SaintSauveur near Dijon. The plants at Dijon and Appoigny will close and Eur10m will be invested in Chevigny, as well as an additional Eur16m for moving production lines. An R&D centre will also be created in Chevigny dedicated to mustards, vinegars and pickles, which require specific expertise for the French market. The transition will involve the loss of 265 jobs.

Since 2003, the French market in mustard has decreased by

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COMPANIES

Acor; 6 Amora-Maille; 3 Anheuser-Busch InBev; 6 Arcus Gruppen; 8 Ardo; 6 Arla Foods; 4,11 Asahi Breweries; 8 Associated British Foods; 6 Austria Frost; 6 Azucarera Ebro; 6 Baltiyskiy Khleb; 31 Beamish & Crawford; 6 Britvic; 4 Brown-Forman; 6 Cadbury; 3,8 Campina; 4,9 Coca-Cola Hellenic; 8 Coca-Cola; 4 Dairy Farmers of America; 11 Danone; 11

IN

THIS

Dayla Liquid Packaging; 8 Dean Foods; 11 Dr Oetker; 8 Ebro Puleva; 6 Fazer Group; 31 Fonterra; 11 Foster’s; 6 Freiberger Group; 8 Friesland Foods; 4,9 Friesland Campina; 4,9,11 Fuller Smith & Turner; 6 Fun Foods; 8 Greencore; 3 Greene King; 4 Greggs; 4 Grupo Nutrexpa; 8 Grupo SOS; 8 Gruppo Italiano Vini; 6 Heineken; 6 Heinz; 3 Khlebniy Dom; 31

5%, mayonnaise by 9%, pickles by 12% and dressings by 16%.

During the period, the sales of Amora-Maille products have particularly suffered, losing 20% to distributor own brands and hard discounters which have seen their sales rise by 23% between 2001 and 2007.

“In an extremely difficult market, Amora-Maille is currently not competitive.

Overcapacity and an industrial organisation scattered across three sites coupled with the complexity of our portfolio, with high production costs, means we have to take significant steps to simplify our organisation and portfolio,” says Herve Laureau, president of Amora-Maille.

Cadbury Appoints New Financial Officer Cadbury has appointed Andrew Bonfield as chief financial officer (CFO) designate. He will join the board in February 2009 and take over from current CFO Ken Hanna, when he retires in April 2009.

Andrew Bonfield has ten years of experience as a CFO, including eight years at two of the world’s largest pharmaceutical companies. Most recently, he was CFO of Bristol-Myers Squibb.

FOOD & DRINK BUSINESS EUROPE, DECEMBER/JANUARY 2009

ISSUE

Kraft Foods; 11 Lactalis; 11 Marston’s; 6 Maxxium; 6 Milk Link; 4 Moet Hennessy; 8 Nestle; 11 Newlat; 6 Nichols; 8 Northern Foods; 3 Parmalat; 6 Pernod Ricard; 8 Pinguin; 4 Pinguin-Lutosa; 4 Proletarets Bakery; 31 Remy Cointreau; 6 Rieber & Son; 8 Schwan Food Company; 8 Schweppes Australia; 8 Socib; 8 Tereos; 6 Unilever; 3,8,11

Ken Hanna will retire as chief financial officer of Cadbury in April 2009.

Unilever Reshapes Global R&D Unilever is to combine its three global R&D operations into one organisation. The move, which is part of the ‘One Unilever’ programme is designed to deliver an integrated R&D programme, reduce overlap in activities between sites and increase the speed and impact of innovations. For research Unilever has chosen six strategic sites Vlaardingen (Netherlands), Port Sunlight and Colworth (UK), Trumbull, (USA) Bangalore (India) and Shanghai (China).

For product design and deployment Unilever has decided to consolidate activities in the Americas to Englewood Cliffs (USA), Valinhos (Brazil) and 3

N N E E W W S S Mexico City (Mexico). The intended changes are expected to result in a net reduction of 250 jobs.

Greggs Withdraws from Belgium and Announces UK Rebranding Greggs, the UK’s largest retail baker, is retreating from the Belgium market, where it has built up a portfolio of ten shops since 2003. The withdrawal will entail an exceptional financial loss of £3.5m.

Meanwhile, Greggs has announced that it will now convert the remaining 160 Bakers Oven outlets in the UK to the Greggs fascia – so leaving the group focused on a single brand.

Ken McMeikan, chief executive of Greggs.

Pinguin to Change Name Pinguin, the Belgian frozen food producer, is to change its name to Pinguin-Lutosa.

Belgian deep frozen potato company Lutosa, which was acquired by Pinguin in 2007, now accounts for about 50% of the latter’s sales. Pinguin also owns UK-based Padley Vegetables.

Irish Pork and Bacon Recall Early in December, the Food Safety Authority of Ireland ordered a national recall of Irish pork and bacon products.

The recall was a precautionary measure due to the illegal presence of a dioxin contaminant discovered in a portion of the Irish pork and bacon available on the market. The contamination has been identified as arising from animal feed. The feed was provided to ten Irish farms 4

which produce approximately 10% of the total supply of pigs in Ireland.

The FSAI subsequently identified dioxin contamination in samples of Irish beef. However, the health risk to consumers from the contaminated beef was not found to be sufficient to trigger a recall.

B B R R II E E F F that nobody could have predicted only a few months ago a fall that has been intensified by the financial crisis,” says Peder Tuborgh, chief executive of Arla Foods. To alleviate the effects of reduced earnings, Arla will be focusing on cost savings in 2009.

DAIRY EC Approves Merger between Friesland Foods and Campina The European Commission has approved the proposed merger between Friesland Foods and Campina. However, to meet the objections of the EC, the activities of Friesland Foods Fresh (fresh dairy) in Nijkerk, the cheese production plant of Campina Holland Cheese (naturally matured cheese) in Bleskensgraaf and the Yogho Yogho and Choco Choco brands (long-life dairy drinks) in the Netherlands and Belgium will have to be divested. These business units jointly account for revenue of about Eur367m, representing some 4% of the combined group’s total sales of Eur9.1b.

Interim Profits Rise at Milk Link Milk Link has reported a 14% rise in EBITDA to over £17.5m in the first half of its 2008/2009 financial year on turnover up 18% to £278m.

Pre-tax profits (before interest paid to members and exceptional non-cash items) increased by 24% to £9.3m at the UK dairy co-operative.

Group turnover per litre improved by 24% to 41.8p.

Peder Tuborgh, chief executive of Arla Foods.

SOFT DRINKS Underlying Profits Growth at Resilient Britvic Britvic, the British and Irish soft drink producer, has exceeded expectations by increasing underlying profits from £61.3m to £70.1m in the year to September 28th last on revenues up 29.3% to £926.5m. However, after an exceptional charge of £18.3m relating to restructuring, pretax profits fell from £55.6m to £51.8m. The group’s core Pepsi, Robinson’s and FruitShoot brands all increased sales.

Muhtar Kent, president of CocaCola.

New Chairman for CocaCola Muhtar Kent, president of Coca-Cola, will succeed Neville Isdell as chairman of the soft drinks giant in April.

Muhtar Kent took over the chief executive’s role from Neville Isdell in July 2008.

BREWING & DISTILLING

Profits Down at Greene King

Profits Warning by Arla Foods Scandinavian dairy giant Arla Food has warned that developments in the second half of its financial year will impact on profits which are now projected to fall from DKr900m to DKr600-700m. “At the beginning of the autumn, we still believed that we would meet the budget. In recent months, however, global market prices for milk have fallen at a rate

(Eur236m) in the establishment of a new flavour manufacturing and innovation centre at Wexford in Ireland. The new centre will incorporate manufacturing, laboratory and pilot plant facilities for process development and product commercialisation. The project will create 60 new jobs in its first year. “This facility will help to support the current and future growth strategies necessary for the Coca-Cola Company to continue to succeed in a rapidly changing and dynamic marketplace,” says Muhtar Kent, president of Coca-Cola.

Paul Moody, chief executive of Britvic.

Coca-Cola to Invest $300m in Irish Flavour and Innovation Centre Coca-Cola is investing $300m

FOOD & DRINK BUSINESS EUROPE, DECEMBER/JANUARY 2009

First half pre-tax profits at Greene King, the UK regional brewer and pub operator, have fallen 70% to £24m but include a £38m write down on the value of some underperforming pubs. Operational profits dropped 4.5% to £106.8m following what chief executive Rooney Anand describes as, “one of the toughest trading periods for many years.” He also expects conditions to deteriorate in 2009.

N N E E W W S S

B B R R II E E F F including a contribution from 47 recently acquired managed pubs. The smoking ban in British pubs, the poor summer weather and weakening consumer spending impacted upon like-for-like sales which fell by 0.6% compared to 2007.

Marston’s has almost halved its 2009 capital expenditure budget for upgrading pubs from £117m to below £60m.

Rooney Anand, chief executive of Greene King.

Carlos Brito, chief executive of Anheuser-Busch InBev.

Profits Falls at Fuller Smith & Turner

Heineken to Integrate Irish Operations

English regional brewer and pub group Fuller, Smith & Turner has reported a 6% decline in pre-tax profits to £12m in the first half to September 30th last. Turnover rose 1% to £94.4m, helped by the group’s focus on cask ales, pub sales of which are proving resilient in contrast to a decline in the overall on-trade beer market.

Heineken is to close its Beamish & Crawford brewery in Cork, Ireland, in March 2009. All the company’s Irish draught beer operations will then be located at the Murphy brewery site, also in Cork. The Beamish & Crawford brewery was recently acquired as part of the purchase with Carlsberg of Scottish & Newcastle. About 40 jobs from Beamish & Crawford will transfer to Heineken Ireland and it is anticipated that 120 personnel will be made redundant.

Heineken is Ireland’s second largest brewer behind Diageo.

Mixed Results at Remy Cointreau An exceptional Eur19.4m gain relating to its exit from the Maxxium distribution venture has helped Remy Cointreau to increase net profits by 27% to Eur48.3m ($63m) in the first six months to September 30th 2008. However, operating profits declined by 4.7% to Eur62.5m but rose by 4.2% in constant currency terms.

Turnover slipped by 2.5% to Eur365m.

Anheuser-Busch InBev to Restructure US Beer Business Anheuser-Busch InBev is to cut about 1,400 jobs in it US beer business as part of its strategy to achieve annual synergies of at least $1.5b from integrating Anheuser-Busch into InBev. The enlarged company expects to achieve these synergies by 2011. Total pre-tax expense associated with the reduction will be approximately $197m.

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Foster’s Changes Nordic Approach Foster’s Group will move to direct sales, marketing and distribution of its leading wine portfolio in the key Nordic markets of Norway, Sweden and Finland, from early 2009.

Foster’s new sales, marketing and distribution business will be a top three supplier of wine in each market and will build on the current strength of brands including Beringer, Lindemans, Penfolds, Rosemount and Wolf Blass. Foster’s portfolio was previously distributed in the Nordic region by V&S Group, recently acquired by global drinks producer Pernod Ricard.

Profits Slump at Marston’s UK regional brewer and pub operator Marston’s has reported a 20% drop in annual pre-tax profits to £76.2m on turnover ahead by 2% to £666.1m,

etables to 52 countries, achieving a turnover of Eur520m.

Parmalat Disposes of Dairy Unit Italian food group Parmalat is selling its dairy business unit at Lodi to Newlat. The Lodi operation produces and sells cheese and had net sales of about Eur36m in 2007. Newlat operates under the Buitoni (pasta and bread substitutes) licenced brand and is projecting a turnover of about Eur200m for 2008.

Spanish Sugar Deal

Ralph Findlay, chief executive of Marston’s.

MERGERS & ACQUISITIONS

Brown-Forman Sells Italian Wine Brands Brown-Forman has sold its Bolla and Fontana Candida Italian wine brands to Gruppo Italiano Vini for an undisclosed sum.

GIV has produced the Fontana Candida wine for BrownForman since 1987 and began producing Bolla wines for Brown-Forman in 2006. The disposal is in line with BrownForman’s strategy of focusing on the best opportunities for growth.

Ardo Acquires Austrian Business Ardo, the Belgian family-owned frozen fruit and vegetable producer, has acquired Austrian company Austria Frost, adding further value to its product portfolio and Eur40m to its turnover. The move is in line with Ardo’s search for new crop areas. Ardo owns fifteen production and packing units in nine European countries. In 2007 Ardo grew, froze and sold 513,000 tonnes of fruit and veg-

FOOD & DRINK BUSINESS EUROPE, DECEMBER/JANUARY 2009

French sugar co-operatives Tereos and Acor are forming a joint venture to strengthen their position within the Iberian Peninsula market. Under the agreement, a refining unit will be developed at Acor’s factory in Olmedo (Valladolid), currently Spain’s largest sugar factory, and will provide important refining cost efficiencies with minimal investment. Starting in 2010, this unit will have a refining capacity of 120,000 tons per year. It will be managed by Acor. On a long-term basis, Tereos will guarantee the supply of raw sugar to be refined in Olmedo.

In addition, Tereos and Acor will act together to market sugar through a company 60% owned

by Tereos and 40% by Acor.

Starting on the 1st of October 2009, this company will market sugar produced by the new refining business, as well as sugar beet from the Acor co-operative and sugar beet imported by Tereos for Spain. The partnership between the two co-operatives will produce 450,000 tons of sugar per year.

ABF Expands International Sugar Business in €350m Deal International food, ingredients and retail group, Associated British Foods is strengthening its EU sugar operations by acquiring Ebro Puleva’s Spanish sugar business, Azucarera Ebro, for Eur350m. The transaction is subject to regulatory approval but is likely to be completed in early 2009.

The business being acquired

N N E E W W S S had pro-forma revenue of Eur586m and operating profits of Eur44m for the year ended 31st December 2007. The value of the gross assets acquired as at 31st August 2008 was Eur536m.

The acquisition is expected to be earnings accretive for ABF in the 2010 financial year.

Azucarera Ebro is the leading sugar producer in Iberia supplying some 50% of the 1.6 million tonnes of sugar consumed.

Historically the business processed sugar from eight beet factories and had a beet quota of 741,000 tonnes. Following its agreement to permanently renounce 363,000 tonnes of quota from October 2009 it will process at three factories in northern Spain and a factory at Guadalete in southern Spain. To supplement the reduced beet quota of 378,000 tonnes a cane refinery is being built at Guadalete, which is near the port of Cadiz. It will have a capacity of 400,000 tonnes of sugar and is expected to be operational in late 2009.

ABF’s British Sugar business is the second largest sugar producer in the world and has extensive operations in the UK, Poland, China and southern Africa.

development of its North American food business.

Dr Oetker will integrate the UK pizza plant, which has been in operation in Leyland in the north of England since 1989, into its UK division. Dr. Oetker UK will continue production at Leyland. The Schwan’s pizza plant at Osterweddingen near Magdeburg in Germany is being bought by Freiberger Group, which has finalised a supply agreement with Dr Oetker to manufacture branded pizza products to sell across Europe.

Freiberger Group will continue production in Osterweddingen.

Meanwhile, Dr Oetker has moved into the Indian market with the acquisition of Delhibased Fun Foods, which produces packaged foods such as mayonnaise and sandwich spreads.

Dr Oetker Acquires Schwan’s European Pizza Business German food company Dr Oetker is acquiring the European frozen pizza business of US-based Schwan Food Company. Dr Oetker is acquiring Schwan’s UK pizza plant, Schwan’s business in 15 European countries, the ‘Chicago Town’ trademark, and licences for the ‘Freschetta’ and ‘Tony’s’ trademarks. Schwan’s will now focus on the continued 8

enable Nichols’ dispense systems operation direct access to the growing premium juice market.

Unilever Completes Bertolli Disposal Unilever has completed the previously announced sale of its Bertolli olive oil business to Grupo SOS for a consideration of Eur630m. In addition to the Bertolli brand for olive oil, premium vinegar and olives, the deal also includes related assets, such as a factory in Inveruno, Italy, as well as the sale of the Dante, Maya and San Giorgio olive oil and seed oil businesses.

Unilever will retain the Bertolli brand for all other categories including margarine, pasta sauces and frozen meals. The Bertolli brand remains a priority for Unilever with strong growth plans for the future in Mediterranean food products.

Moet Hennessy Acquires Champagne House In line with its strategy of strengthening its global leadership in luxury wine and spirits, Moet Hennessy, which is owned

by LVMH, the world’s leading luxury products group, is acquiring the Montaudon champagne house for an undisclosed sum.

Founded in 1891, the Montaudon family business is situated at the heart of Reims in France. Montaudon will join LVMH’s portfolio of champagne brands including Dom Perignon, Moet & Chandon, Veuve Clicquot Ponsardin, Krug, Ruinart and Mercier.

Grupo SOS Sells Cuetara Biscuit Unit for €215m George Weston, chief executive of Associated British Foods.

B B R R II E E F F

Spain’s second largest food company, Grupo SOS, is disposing of its Cuetara biscuit business to Grupo Nutrexpa for Eur215m.

The deal is part of SOS’s strategy of focusing on businesses with the potential for international development such as vegetable oil and rice.

Nichols Acquires Stake in Dayla Liquid Packaging UK soft drinks business Nichols has taken a 50% stake in Dayla Liquid Packaging for £2.78m with the option of acquiring the remaining 50% in 2011 or 2012. The investment will

Patrick Cescau, chief executive of Unilever.

Rieber & Son Expands in Poland Rieber & Son has become the biggest company in the sweet bakery and dessert category in Poland following the acquisition of the Gellwe brand for about PLN135m (Eur33m). Gellwe achieved net sales of PLN90m in 2007.

CCHBC Expands in Italy With €270m Acquisition Coca-Cola HBC has significantly extended its presence within the Italian soft drink market by completing the acquisition of Socib, a family-owned bottler, for Eur270m. The acquisition of Socib will add five regions in Southern Italy with a population of nearly 14m people and increase Coca-Cola Hellenic’s sales volume in Italy by approximately 25%. Coca-Cola Hellenic had previously operated

FOOD & DRINK BUSINESS EUROPE, DECEMBER/JANUARY 2009

mainly in the north of Italy.

Pernod Ricard Divests Brands to Arcus Gruppen Pernod Ricard is disposing of the Gronstedts Cognac, Star Gin, Red Port and Dry Anis brands to Norwegian company Arcus Gruppen, which is 83% owned by Swedish investment company Ratos. The divestment is in line with commitments given by Pernod Ricard to the European Commission as part of the acquisition of Vin & Sprit, which was finalised in July 2008.

Cadbury Sells Australian Soft Drinks Business for £550m Cadbury is to sell its Australian soft drinks business, Schweppes Beverages, to Asahi Breweries of Japan for £550m. “The successful sale of Schweppes Australia will complete Cadbury’s divestment of its beverage operations.

As a result, Cadbury will focus solely on growing its chocolate, gum and candy portfolio in line with the Vision Into Action strategy, announced in June 2007,” says Todd Stitzer, chief executive of Cadbury. Cadbury disposed of its European beverages business for £1.2b in 2005 and demerged its North American beverages operations in May 2008.

In the year ended 31st December 2007, Schweppes Australia, which is the second largest soft drinks producer in Australia, generated revenues of £313m, EBITDA of £33m and had gross assets of £279m.

Coca-Cola has an option to buy the Schweppes Australia business and has until the end of March to make an offer. However, analysts regard this as unlikely to happen.

Todd Stitzer, chief executive of Cadbury.

COVER STORY

Friesland Foods and Campina Finally Merge Friesland Foods and Campina have merged, a year after the two Dutch co-operatives first announced their intention to join together to create one of the world’s largest dairy groups.

B

ased on 2007 figures, FrieslandCampina’s annual revenue is Eur9.1 billion and the combined group ranks fourth in the world by dairy sales after Nestle, Danone and Lactalis (see Table on page 11). The group’s 17,000 member dairy farmers jointly produce 8.3 billion kilos of milk annually. FrieslandCampina employs 22,000 people and has about 100 production and sales locations in 24 different countries.

The alliance has now been agreed to by members of both Cees ’t Hart, chief executive officer of Campina and Friesland Foods, FrieslandCampina. and approved by the European Commission, subject to certain divestments. The combined business will have to dispose of some of its fresh dairy activities in the Netherlands, one cheese production plant in the Netherlands and two long-life dairy drink brands in the Netherlands and Belgium.

To reduce FrieslandCampina’s share of the Dutch raw milk market and guarantee the availability of milk for third parties, a maximum of 1.2 billion kilos of milk will be made available for sale annually via a newly set-up independent foundation to new and existing producers of fresh dairy products or naturally matured cheese in the Netherlands.

Appropriate Timing “The preparations for the merger have taken more than a year.

Based on 2007 figures, FrieslandCampina’s annual revenue will amount to Eur9.1 billion and the combined group will rank fourth in the world by dairy sales after Nestle, Danone and Lactalis.

During that period we have become even more convinced that the merger is coming at the right time,” says Cees ’t Hart, chief executive officer of FrieslandCampina. “Now we can actually start doing business together based on our combined innovative strength and the milk expertise of our employees. We expect to be able to grow more strongly in brands and new concepts. This not only applies to consumer products, but also to dairy ingredients.”

The newly combined dairy group is expected to be better placed to anticipate and respond more dynamically and effectively to the constantly accelerating changes in market conditions, the ongoing liberalisation of international markets and the increasing competition, both regionally and worldwide.

“The need for this has only increased further in the past year,” points out Kees Wantenaar, chairman of the supervisory board of FrieslandCampina: “When the merger was announced a year ago, we were going through times of unprecedented high prices in the dairy sector. The situation on the global dairy market has changed drastically since then. When we started with the merger in 2007, there was no sign of a financial crisis, let alone a recession. So the new company will start in a challenging market and will have to prove itself in these testing conditions. FrieslandCampina has scale in research, production and marketing, local market knowledge, entrepreneurship and highly skilled and motivated staff.”

Organisational Structure The new FrieslandCampina consists of four business groups - consumer products Western Europe, consumer products international, cheese & butter, and ingredients.

Consumer products such as liquid milk, powdered and condensed milk, yoghurts, desserts, dairy drinks, cream, coffee enhancers, Kees Gielen, chief financial officer infant and children’s food form of FrieslandCampina.

FrieslandCampina’s major product group, accounting for more than 50% of group turnover. Cheese and butter represent more than a quarter of turnover while ingredients account for 15%.

More than a quarter of turnover from all product groups is generated outside Europe. In Western Europe, FrieslandCampina is active in practically all product groups, although the extent differs from country to country. In Central and Eastern Europe (including Russia) the emphasis is on added-value dairy products.

FrieslandCampina has a strong presence in the Middle East with concentrated milk, cream, yoghurt and powdered milk. In Asia and Africa FrieslandCampina sells a broad range of consumer products.

Indeed, FrieslandCampina is an important supplier of ingredients

FOOD & DRINK BUSINESS EUROPE, DECEMBER/JANUARY 2009

9

in all continents, including America.

Integration of the two Dutch dairy co-operatives is expected to yield annual synergy benefits of Eur175 million by 2012.

Executive Board In addition to Cees ’t Hart, the other members of the executive board are Kees Gielen, chief financial officer; Andre Boudewijns, chief integration officer; Piet Hilarides, chief operating officer cheese & butter; Freek Rijna, chief operating officer consumer products Western Europe; Theo Spierings, chief operating officer consumer products international; and Frans Visser, chief operating officer ingredients. The head office is located in Amersfoort in the Netherlands.

“Together we want to Theo Spierings, chief operating officer take up the battle with consumer products international of the likes of Nestle and FrieslandCampina.

Danone,” comments Theo Spierings. “We see further consolidation in the European sector and we want to be well-positioned.”

Kees Gielen remarks: “We want to grow our health and wellnessproducts in Europe and introduce them in Asia. We want to grow our cheese brand Milner internationally. In our consumer products business we will also look for growth through joint ventures and acquisitions.”

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Integration of the two businesses is expected to yield annual synergy benefits of Eur175 million by 2012.

European Commission Investigation Merger talks with the European Commission commenced early in 2008. However, the Commission decided that the enlarged business would hold too dominant a position in the markets for fresh dairy and naturally matured cheese in the Netherlands, in long-life flavoured dairy drinks in the Netherlands and Belgium and in the raw milk market in the Netherlands.

“We are delighted with the permission from Brussels, but we regret that we are required to divest certain parts of the business,” Cees ’t Hart explains. “At the same time our aspiration to take a stronger stance in the international dairy market remains fully intact. All arguments in favour of the merger are as valid now as they were a year ago.” J

FOOD & DRINK BUSINESS EUROPE, DECEMBER/JANUARY 2009

I DAIRY

New Era Dawns for Global Dairy Market

T

he global dairy market has entered a new era with growing world consumption of dairy products, combined with reducing growth in supply, expected to underpin sustained higher, though volatile, prices into the future, according to a recently-released industry report. ‘The Global Dairy Industry – Reshaping in a New Market Era’, a report by leading agribusiness lender Rabobank, says despite current short-term challenges facing the sector – including a recent moderation in dairy commodity prices – the medium to long-term outlook is robust, with the market for dairy moving into a fundamentally changed era.

“In this new era, global demand for milk at any price point has shifted upwards, based on income growth in many parts of the world, and favourable demographic and cultural trends that have increased the number of people that are aware of dairy, have access to dairy, want to consume it and can afford to do so,” the report says.

“Rabobank remains convinced that the medium-term equilibrium price for dairy products has shifted upwards from its long-term average. Economic growth and cultural changes have substantially increased the price the market will pay for milk.”

The increased world demand for dairy products – along with constraints on long-term global supply growth – is expected to see prices recover and to continue trading in a higher price band in the future.

Prevailing negative forces have been at play in late 2008 weighing on the previously buoyant dairy industry, the report acknowledges.

After an extraordinary boom in global dairy prices in the past two years which culminated in a phenomenal peak in late 2007, international dairy prices have fallen during most of 2008.

Global dairy demand is likely to remain below trend level through the first half of 2009 assuming continued weak economic conditions. However, Rabobank expects to see a turnaround later in the year on the back of factors including an eventual improvement in the global economy, increased consumer demand due to more competitive pricing and the continuance of demographic and cultural trends favourable to dairy consumption.

The new dairy market era is expected to significantly reshape the sector in the years to come and heralds the need for all players involved in the industry to reconsider their strategies, the Rabobank report finds.

Domestically-oriented dairy processors face a battle to restore margins in very difficult conditions (with the focus on areas such as input sourcing, product range and brand) while export dairy processors will need to adjust their strategies and develop competencies to suit changed conditions, such as huge increases in export volumes. J World’s Top 10 Dairy Companies by Turnover, 2007 Company Country 1 Nestle Switzerland 2 Danone France 3 Lactalis France 4 FrieslandCampina Netherlands 5 Dairy Farmers of America USA 6 Dean Foods USA 7 Fonterra New Zealand 8 Arla Foods Denmark/Sweden 9 Kraft Foods USA 10 Unilever UK/Netherlands Source: Rabobank International

Dairy Sales (Eur) 16.9b 10.2b 9.6b 8.8b 8.1b 7.6b 7.6b 6.4b 4.7b 4.4b

FOOD & DRINK BUSINESS EUROPE, DECEMBER/JANUARY 2009

11

Thermo King Introduces EcoPower PLUS for Gensets spring of 2007, Thermo King Iandnlaunched its SG-3000 series of gensets its optional EcoPower fuel saving technology. With the only electronic microprocessor controller in the genset industry, this technology combines the latest electronics to sense not only the type of reefer it is powering, but also its mode of operation.

Armed with this knowledge, the genset automatically determines the most energy-efficient operation mode - EcoPower or standard, while respecting the ISO1496-2 standard. As a result, operators get the most efficient operation possible while never compromising cargo care. But it just got better. Thermo King now has EcoPower PLUS. The benefits of the original EcoPower application of technology have been enormous. Fuel savings of more than 20% were easily achieved compared to its nearest competitor. This translates into approximately 300 gallons of diesel saved per genset, based on a 2,500 hours/annum operation. With fuel hav-

ing been as high as $4/gallon, this is as much as $1,200/annum. In 2007, 95% of Thermo King gensets were sold with the EcoPower option, and at customers’ requests, the remaining 5% were retrofitted in early 2008.

Now, Thermo King’s engineers have topped this achievement. A year’s worth of data from thousands of genset data loggers has helped them further improve on the already- industry-leading perfor-

mance of EcoPower. And once again, they have done it while continuing to care for the cargo while respecting the ISO1496-2 international standard.

Users of SG3000 gensets with the new EcoPower PLUS option will save 30% or more fuel over traditional gensets. In addition, the environmental benefits are equally outstanding, regardless of fuel price fluctuations. Every gallon of fuel saved equals 10.1 kg of CO2 emissions avoided. So implementing EcoPower PLUS will save 513 gallons/annum, avoiding 5.2 tonnes of CO2 emissions per annum. For more information on Thermo King’s products and services please visit www.thermoking.com. J

EFACS Customers to Benefit from New Government Training Initiative xel Computer Systems, the leading UKE based author and developer of the innovative EFACS ERP system, is encouraging small and medium sized enterprises (SMEs) to take advantage of new funding available for training covering between 50% to 100% of the overall cost. This would apply not only to existing EFACS customers but also to new potential users, which could make the difference for some SMEs looking to invest in a fully integrated ERP system during the current economic climate.

The £350 million scheme entitled ‘Train to Gain’ was announced by Skills Secretary John Denham as a new package of support to help small businesses get through the tougher economic climate by building the skills and expertise of their workers. It will deliver funding for training, with the mini12

mum level of bureaucracy or delay.

“Small businesses are an important engine of our economy and we must make sure that we support them during tough economic times. We are overhauling the training system to make sure that they can get help with training their staff with the very minimum of bureaucracy,” says John Denham.

“We know that firms which invest in skills do better than those that don't, which is why we will be urging small businesses to take up this offer from Government."

To be eligible, customers need to be private sector SMEs with up to 250 employees and register for the scheme. If accepted, Exel would provide the relevant training in business critical areas which include business improvement techniques, business systems/processes review, and training on new or existing EFACS modules.

The customer will then be able to claim back a percentage of the costs from the scheme. In recent cases this has been up to 60% of the costs of the training.

Further information about ‘Train to Gain’ can be found online at www.traintogain.gov.uk while customers wanting specific advice about how to make best use of this training in the use of EFACS should contact Exel Computer Systems directly. J

FOOD & DRINK BUSINESS EUROPE, DECEMBER/JANUARY 2009

I ADVANCED PLANNING & SCHEDULING

Highland Spring: A Clear Case for the Benefits of Preactor APS ighland Spring is the leading UK H produced brand of spring water. It is the number two overall brand in the bottled water sector in Britain; number one sparkling water brand and the leading children’s bottled water. Every drop of Highland Spring falls on protected land in the Ochil Hills, and it was the first bottled water in the UK to have its land certified organic by the soil association.

Working on a 24x7 basis, at maximum output Highland Spring bottled around 240 million litres of water in 2006 which equates to up to 90,000 bottles per hour, which can be delivered in a bewildering number of possible configurations. There can be 65 different case configurations which in turn are dependent on the bottle size, shape, colour, and material.

To complicate things further, different markets have different labelling requirements which need to be factored in.

Promotional campaigns requiring further customisation also have to be taken into consideration.

The actual processes involved from start to finish of the product are in fact relatively simple with the majority of bottles being made from plastic on-site at the company’s bottle manufacturing facility which has four dedicated production lines while glass bottles are sourced externally. These are then supplied to the filling/bottling lines which are then labelled and packed accordingly before undergoing a three day quarantine process after which they are sent to storage ready for dispatch.

Key Challenges There are, however, a number of key business challenges involved as stock supply manager Kenny Tannock explains: “Demand for our product can be highly volatile depending on weather and promo-

tional activity. For example, if we have a run of hot weather, demand can spike by 50-60% with little warning. Because we have a three day quarantine process, we can’t simply produce more water according to demand so we have to keep buffer stocks.” This is compounded by the fact that larger customers expect orders to be delivered within 24-48 hours of placing an order.

Daniel Muir is customer supply and logistics manager and outlines the problems this causes. “Big fluctuations in demand cause more than just production difficulties. They also have a big impact on our manufacturing resource at very short notice which can mean using costly agency personnel in addition to our full time employees. They impact on our material suppliers, and they put immense pressure on our warehousing facilities and distribution partners.”

While drawing water from a number of springs, this still requires careful planning to ensure that unnecessary loading isn’t placed on any individual spring which is again sensitive to customer demand. This is inevitably linked to basic storage constraints of the water prior to use and the finished products afterwards.

Difficulties Prior to investing in Preactor’s Advanced Planning and Scheduling (APS) production control software, Highland Spring relied on a combination of complex Excel spreadsheets and manually intensive reports extracted from the company’s MAX ERP system. As Daniel Muir remarks: “Production planning used to be a process of continual fire fighting, with Kenny’s time being almost completely used just try-

ing to keep everything up to date with little time left to do any longer term or more refined planning or other value-added activity.”

Kenny Tannock agrees saying that visibility of ‘what was actually happening and where’ was practically non-existent with planning being by definition entirely reactive to changes in demand or production difficulties.

“Because of this it was difficult to establish a real awareness about the impact of any one planning decision on the rest of the plant. We couldn’t see the effects of what we were doing until they were actually occurring or had occurred.” Add to this version control issues to do with multiple spreadsheets and an inability to have a reliable planning horizon further than a rolling 10 day basis and the problems Highland Spring faced become more than apparent.

It became increasingly obvious that compared to the benefits already being delivered by the company’s MAX ERP system, more ought to be able to be done concerning the company’s production planning and scheduling capabilities. Organisational changes accelerated this thinking and in 2003 Kenny Tannock began looking at a range of systems that would integrate tightly with MAX. Several companies were quickly identified, though as Kenny Tannock comments, the choice was not difficult. “We soon discovered Preactor was widely used in our industry with both the product and the company having a good reputation.” A series of site reference visits was organised by Preactor Solution Provider RMS within the food and drink sector, including Diageo, where Kenny Tannock was able to see at first hand just how versatile Preactor’s production planning and scheduling software really is.

“While the feedback was consistently the same in that Preactor was very good, what impressed us the most was the sheer variety of ways that food and drink manufacturers were using the product.”

Implementation Implementation began in January 2004 with Kenny Tannock and Daniel Muir taking charge of the project with support from RMS. While RMS did all the complex algorithm generation concerning planning and workflow, it was left to Kenny

FOOD & DRINK BUSINESS EUROPE, DECEMBER/JANUARY 2009

13

Tannock and Daniel Muir to begin the process of documenting much of the additional information which was currently held in various spreadsheets or was knowledge that Kenny Tannock had acquired during his time in the role. This included essential items such as changeover times, water constraints, product groups, and even localised variances in production line speeds in certain conditions. Kenny Tannock adds: “Even when we had identified what our key requirements were in terms of how Preactor needed to work, we then had to prioritise these and adapt them if they clashed.”

Highland Spring went live with Preactor in April 2005 with the first noticeable benefit being an immediate confirmation that with Preactor, there would be no need for an additional production planner to assist Kenny Tannock. “I went from spending the majority of my day simply trying to keep up with generating the plan to being able to have viewed, amended and actioned the plan within an hour. I could then review this at 3pm to ensure that everything was in place for the next shift.” In real terms this has saved a minimum of half a day, every day and whereas MRP used to be run twice a week, it can now be run every day with a full Preactor update taking a matter of minutes.

Visibility Not only did Preactor save time, it also provided the much needed visibility required by Highland Spring. As Daniel Muir says: “Not only did we now have the means to easily view what was happening at any point in the business and across the entire plan, the information itself was much more accurate. This meant that the production people saw benefits right away because they now had planning information they knew they could trust.”

A consequence of this has been the ability to trim off areas of stock and buffer excess which the company had previously relied on in order to avoid not being able to make a delivery. A further consequence was that the planning horizon went from a rolling 10 days to four weeks and beyond. This again benefited the manufacturing teams because they could see what orders were scheduled for the coming days/shifts which enabled them to feedback further fine tuning information into the planning process. The increased accuracy of planning also directly contributed to substantial cost saving as a result of substantially reduced agency staff levels.

Return on Investment Taking all things into account, Highland Spring believes it achieved an ROI (Return on Investment) in under a year. For Kenny Tannock, it has freed up the majority of his time which can now be put back into the business in terms of developing long term strategic planning refinements which will only serve to increase the company’s efficiency. J 14

FOOD & DRINK BUSINESS EUROPE, DECEMBER/JANUARY 2009

I OPTIMISATION SOLUTIONS

Coca-Cola Enterprises Taps JDA Software to Optimise Space and Category Performance oca-Cola Enterprises has deployed sevC eral applications in JDA Software Group’s Space & Category Management

planogram, users can create one in just five to 20 minutes.

“Implementing JDA Software solutions has provided Coca-Cola Enterprises with one synchronised view of demand,” Luisa Eichman says. “Given the expanded variety in beverage consumption and shopper demographics, determining the right beverages to carry for consumers needs to be done at the store level to improve sales and shopper satisfaction.”

solution suite, including JDA® Space Planning, JDA® Space Automation, JDA® CategoryAdvisor and JDA® Intactix Knowledge Base solutions, to streamline productivity and leverage retail shopper insights to drive positive business results.

Coca-Cola Enterprises is the world’s largest non-alcoholic bottler, with annual revenues of $21 billion. Coca-Cola Enterprises sells approximately 80% of The Coca-Cola Company’s bottle and can volume in North America and is the sole licensed bottler for Coca-Cola’s products in Belgium, France, Great Britain, Luxembourg, Monaco and The Netherlands.

Robust Platform The JDA solutions provide Coca-Cola Enterprises with a robust platform for planogram creation and analysis with integration to retailer point-of-sale (POS) data.

JDA Space Automation and Space Planning applications enable the execution of top-level category plans to optimise store-specific assortment management. The company utilises JDA Intactix Knowledge base to better manage planograms, product

The Coca-Cola polar bear.

allocation, store and merchandise data, as well as performance data and other key elements.

“We were looking for a solution that would allow us to deliver merchandising solutions that reflect the differences across stores to effectively bring the right products

US Coca-Cola advert from 1945.

to consumers at the right locations,” explains Luisa Eichman, director of space planning services at Coca-Cola Enterprises.

“We also needed to create a business process to ensure quality checks on storelevel planograms, while at the same time increasing the productivity, efficiency and effectiveness of the planogram process.”

The solutions that Coca-Cola Enterprises selected also had to support its Shopper Segmented Mer-chandising program, a major initiative launched in 2007 to optimise sales and shopper satisfaction.

Increase in Sales Volume and Value Since deploying the JDA Space & Category Management solutions and implementing new and streamlined processes in more than 4,000 grocery stores, Coca-Cola Enterprises reports that it has achieved a 2% increase in both unit sales and dollar sales, and has significantly improved the quality, accuracy and consistency of the consumer-centric store-level planograms it delivers to retail customers. Coca-Cola Enterprises’ planogram generation process has also improved significantly, instead of taking a few days to create a single

Streamlined Processes David Johnston, JDA Software senior vice president of manufacturing and wholesale distribution, comments: “The solutions selected by Coca-Cola Enterprises proved to be ideal for streamlining its processes and achieving its performance goals. As a result, Coca-Cola Enterprises discovered what many JDA customers in the competitive beverage market have already experienced: that JDA’s merchandising solutions can provide the powerful leverage needed to optimise space and category management, from the store level to the strategy level.”

JDA Software Group is focused on helping customers to rapidly realise real supply chain and revenue management results.

JDA Software delivers integrated merchandising as well as supply chain and revenue management planning, execution, and optimisation solutions for the consumer-driven supply chain and services industries.

Through its industry leading solutions, leading manufacturers, distributors, retailers and services companies around the world are growing their businesses with greater predictability and more profitably.

For more information about JDA Software’s Space & Category Management solutions, visit www.jda.com. J

Coca-Cola international bottles.

FOOD & DRINK BUSINESS EUROPE, DECEMBER/JANUARY 2009

15

Improving Boiler Energy Efficiency o halt the effect of T climate change, globally we need to

are many unseen variables which can give misleading results. If reduce carbon emispossible run your own sions by at least 50% calculations using the by 2050. Interim tarsame fuel calorific valgets have been set by ues (don’t mix nett or Ireland of 20% reducgross values), the same tion by 2020 comambient air temperapared to 2005 emisture and the same stansions, and the UK’s dard method of calculatarget is 21%. tion.

One key area targetHaving specified the ed is energy efficiency most energy efficient in buildings and boiler, then look to furindustry, and a signifther reduce emissions by icant proportion of installing extra features energy use in this area which will be effective relates to industrial on that site. In the case steam or hot water of steam boilers this may boilers. 2020 may be flue gas economisers, The latest range (the Yorkshireman2) from Byworth Boilers incorporates unique X-ID firetube seem a long way off, TDS and blowdown with internal helical ribs. but it is only 11 years controls, and heat recovand industrial boilers ery systems. Variable installed now will only be part way First Steps speed drives on burner fans and feed through their life span (on average over Obvious first steps towards improvement pumps will reduce electrical consumption 25 years). It is crucial, therefore, that are to ensure that all boiler and pipe insu- and make further improvement to the carany new industrial boilers installed now lation is present and in good condition. bon footprint. are the most energy efficient possible in Before rushing into installing add-on o r d e r t o a t t a i n t h e 2 1 % e m i s s i o n s gadgets to the existing boilers to improve The Yorkshireman Range reduction. efficiency take the opportunity to review The Yorkshireman industrial steam boiler Boiler efficiency is a measure of the the boilers themselves. It is astounding range from Byworth Boilers, based in proportion of useful heat output com- how many 40 year old boilers are still in Yorkshire, has already proved to be probapared with heat input. A recent survey operation. The boiler men may have bly the most energy efficient boiler of its of 300 boilers over 100 sites shows an given them pet names and have grown type. The latest range (the Yorkshirea v e r a g e b o i l e r e f f i c i e n c y o f 7 4 % attached, but the truth has to be faced. man2) incorporates unique X-ID firetube ( A c t i o n E n e r g y ) , s o t h e r e i s a m p l e They are probably not the right size and with internal helical ribs. This tube o p p o r t u n i t y f o r i m p r o v e m e n t . T h e will certainly be inefficient. Replacement increases heat transfer from the tubes by 26% losses will most likely arise from with new boilers of the correct size, opti- over 80% and in some installations is a inefficient boiler design which can’t mum design and efficiency will give pay- better alternative to a standard boiler with utilise all the heat input before it reach- back in a relatively short term. a flue gas economiser. es the flue outlet; heat losses from the When comparing boilers from differFor further information contact boiler, pipes, valves and blowdown ent manufacturers, it will pay dividends Byworth Boilers on Tel +44(0)1535 water; and poor load scheduling, opera- to ask exacting questions about the way 665225, E-mail sales@byworth.co.uk or tion and maintenance. efficiency figures are calculated, as there visit www.byworth.co.uk. J

CBI and Carbon Trust Join Forces BI and The Carbon Trust have partnered to work with business C and government to maximise the opportunities that the move to a low carbon economy will create for UK companies and deliver significant carbon savings that will help meet national targets. The broad membership of the CBI and the networks already established by the Carbon Trust mean that together they can reach businesses across the UK and beyond, from FTSE 100 firms to SMEs. The partnership will promote the business case for immediate concerted action on climate change to the wider CBI membership by sharing expertise and highlighting opportunities for all business16

es which both improve energy efficiency and deliver financial savings against the bottom line.

The partnership will support business through these difficult economic times and beyond to help them integrate emissions reduction into corporate strategy, manage and reduce the direct and indirect emissions and provide a wide range of advice and support for companies of all sizes.

The partnership will also facilitate the sharing of policy solutions that create the appropriate policy frameworks to enable business to invest over the long term in low-carbon goods and services. J

FOOD & DRINK BUSINESS EUROPE, DECEMBER/JANUARY 2009

I MARKET FOCUS

Ten Trends to Watch in Packaged Goods in 2009 Datamonitor’s Product Launch Analytics identifies and examines some key trends in consumer packaged goods for the coming year, including beauty foods and drinks, floral flavours and detox products. t wasn’t all that long ago that consumers were told to avoid nuts. Too much fat, the experts said. Well, the experts have reversed course and nuts are now hailed as nutritional powerhouses which is why they are showing up in more new product launches. Snack bars, in fact, are increasingly going ‘naked’ to showcase nut ingredients. You won’t find Quaker True Delights Chewy Granola Bars (USA) covered in chocolate as the PepsiCo product claims ‘you can actually see large chunks of macadamia nuts’. Seeds too are getting their due on the health front, including flax seeds, sunflower seeds and pumpkin seeds.

dandelion root as active ingredients, but regardless of the science behind the trend, consumers are paying attention to celebrities making a name for detox diets including Beyonce and Oprah Winfrey. Recent ‘detox’ launches include Function Urban Detox Goji Berry Drink (USA), V Water Detox Vitamin Water (UK) and Biore Detoxify Daily Scrub (USA).

I

Touting ‘good for your brain’ ingredients like DHA omega-3’s are recent entries like Kellogg’s

Don’t Energise - Relax Energy drinks have certainly taken the world by storm. But is there a potential change in the offing? If economic woes caused by an overly-caffeinated worldwide financial system are a metaphor for what may happen in food and beverage markets, then get ready for more relaxation offerings.

New product offerings going the relaxation route include Drank Relaxed Energy Beverage (USA) dubbed the ‘world’s first extreme relaxation beverage’ that induces a natural calming and soothing effect when consumed. Also new are Purple Stuff ProRelaxation & Calming Elixir (USA), Nescafe Body Partner Relax Coffee which is decaffeinated coffee infused with chamomile (Philippines) and Lotte Relax Gum Apple Tea Mint (Japan). The latter is a new functional chewing gum with theanine from green tea that delivers a relaxing effect.

Beauty You Can Eat or Drink Move over cosmetics. The new way to look beautiful is with an emerging generation of specially-formulated foods and drinks. Though the trend is very much in its infancy, it has attracted some attention from heavy-hitters in the food industry like Nestle and Masterfoods. Nestle’s new Glowelle Beauty Drink Supplement Powder (USA) fights signs of aging from

LiveBright Brain Health Bar (USA).

the inside out with skin-beautifying antioxidants. Masterfoods’ Dove Beautiful Milk Chocolate has skin nourshing ingredients like vitamins C and E along with biotin, zinc and cocoa flavanols. And in the UK, Beauty Spring Water touts its Praventin ingredient as rich in Lactoferrin to help reduce acne.

Steam it Up What says both ‘fresh’ and ‘tasty’ to today’s consumer? Steam and steam cooking.

Steam literally has a head of steam in the frozen food market as a growing number of food makers introduce products showcasing the cooking power of steam. Buoyed by a new generation of microwave cook-in-bags that vent excess steam during the cooking process, the trend is picking up momentum with launches like Dole Easy Steamer Potatoes (USA), Birds Eye Steamfresh Specially Seasoned Rice (USA) and Bonduelle Vapeur Vegetables (France).

Detox Me Worldwide financial markets are trying to detoxify themselves from bad loans.

Consumers are doing some detoxification of their own thanks to new products hitting the market that promise to ‘detoxify’ in one way or another. Some food-based detox products use liver-friendly ingredients like

Get Ready for Stevia It’s been called the ‘holy grail’ of sweeteners. Stevia is a natural sweetener that comes from the South American stevia plant and has the potential to turn the sweetener world upside down. This zero calorie sweetener has been used for years in South America and Japan, but has been banned in processed foods and beverages in the USA and much of Europe. That could change in 2009 as the US Food and Drug Administration is preparing to decide if stevia variant Rebaudioside A may be safely used in processed products. If approval is granted, the new product floodgates could open quickly as both Coca-Cola and PepsiCo are both ready to roll with new stevia-sweetened drinks.

‘Eco’ Friendly World Worldwide economies may be dipping, but that does not seem to have dampened the desire for companies and products to be perceived to be environmentally-friendly.

Mentions of the word ‘eco’ for new food and non-food packaged goods from around the world have nearly doubled in the last two years, according to Datamonitor’s Product Launch Analytics. Nature Babycare Eco Sensitive Fragrance Free Awarded Wipes (Finland), Plush Eco Fabric Softener (Brazil) and Nvey Eco Organic Erase Corrective Makeup (Australia) are some products that are definitely ‘on trend’.

Flower Power Flowers are great to look at, but they are beginning to play a bigger role in new product formulations. Floral flavours like

FOOD & DRINK BUSINESS EUROPE, DECEMBER/JANUARY 2009

17

lavender, hibiscus and jasmine have long enjoyed success in non-foods, but are newer to the food and drink markets. Examples include OOBA Sparkling Refreshing Hibiscus Beverage (USA) which is said to have a high level of antioxidants, Simply Hibi Health Drink (UK) and LavenderJalapeno flavoured Theo Caramel Collection Chocolates (USA). Subtle, nonfattening and aromatic, floral flavours look to surprise in 2009.

Brain Power In today’s world, mental fitness may well be more important than physical fitness.

Packaged goods makers seem to have come to the same conclusion as a growing number of brain health products are hitting the market. Touting ‘good for your brain’ ingredients like DHA omega-3’s are recent entries like Kellogg’s LiveBright Brain Health Bar (USA), IQ Plus Brain Drink (Austria and Germany) and Unilever’s Rama Idea! Margarine (Europe). Mentions of the word ‘brain’ in new food and beverage products worldwide have nearly tripled

in the 2007-2008 period versus the 20052006 period, according to Datamonitor’s Product Launch Analytics.

Hold the Water Stratospheric oil prices during 2008 caused companies to re-examine how they do business. One realisation firms made is that transporting water is expensive and it is cheaper to have consumers add their own water when possible. That’s the idea behind Arm & Hammer Essentials (USA), a new line of cleaning products including Glass Cleaner and Multi-Surface Cleaner that is comprised of empty 32 fl oz trigger sprayer bottles sold with attached 1.2 oz (35ml) bottles of liquid concentrate to be mixed with water. Kilrock Aquo Refillable Trigger Cleaning Spray is a UK product that follows the same principle. Look for this trend to really blossom in 2009 as the cost-cutting intensifies.

Datatmonitor’s Product Launch Analytics (formerly Productscan Online) is the world's largest and longest running NPD database, located at www.datamoni-

Floral flavours like lavender, hibiscus and jasmine have long enjoyed success in non-foods, but are newer to the food and drink markets. Examples include OOBA Sparkling Refreshing Hibiscus Beverage (USA) and Simply Hibi Health Drink (UK).

tor.com. Part of the Consumer Markets Knowledge Center, Product Launch Analytics is published by New York-based Datamonitor. J

I FOOD RETAIL

Tesco to Become World’s Second Largest Retailer by 2012 esco is expected to overtake Carrefour in terms of global turnover within the next T four years to become the world’s second largest retailer after Wal-Mart, according to

Over half of Tesco’s selling space is now outside the UK.

IGD’s latest report, ‘Global Retailing: Preparing for Change.’

The report predicts that Tesco will grow at a faster pace than the French retailer, with forecasts suggesting a compound annual growth rate of 11% for Tesco, compared with 7% for Carrefour, between 2007 and 2012.

Since the mid-90s, Tesco has been investing in new markets overseas, seeking out new opportunities for growth. Today the UK retail group operates in twelve markets outside the UK, in Europe, Asia and North America. Over 160,000 employees work in its international businesses, serving over 28 million customers and generating £13.8 billion sales and over £700 million profit. More than half of Tesco’s selling space is now outside the UK. J

Sir Terry Leahy, chief executive of Tesco.

Recession to Transform Retail Trade ccording toAndy Bond, chief executive A of Asda, recession will change consumer behaviour and retailers will have to respond by adapting their business models if they are to survive. “We can already see how changing attitudes are affecting customers’ shopping habits. Consumers are not prepared to pay a premium when they cannot taste the difference. The era of 18

conspicuous consumption is over. Saving money by cutting out waste of all kinds will be the priority. I don’t see this as being a short-term response to the recession but a fundamental shift that will see the emergence of a new breed of customer,” he points out.

“The new emerging consumer will demand more value for their money than

ever before and genuine price transparency,” he adds. “Retailers with authentic low-cost operating models, who embrace sustainability as a means of reducing costs and who are transparent about how they pass savings on to their customers will be the winners. Those who continue with high/low pricing will become increasingly distrusted.” J

FOOD & DRINK BUSINESS EUROPE, DECEMBER/JANUARY 2009

Amcor Flexibles wins a 2008 Bioplastics Award Amcor Flexibles has received the 2008 Bioplastics Award in the category 'Best Bioplastics Application – Packaging' for its NaturePlus compostable film that is used to pack Sainsbury's SO Organic Wild Rocket salad.

The film is part of Amcor's NaturePlus range of biodegradable, compostable and recyclable products offered in response to the global demands for more sustainable packaging solutions. “Sainsbury’s challenged us to deliver a nongenetically modified, compostable film for their organic salads. It has to run in a wet environment with no adverse impact on packing speeds,” explains Peter Ettridge, sustainable product development manager at Amcor Flexibles.

The Bioplastics Awards are intended to raise the profile of bioplastics and recognise the best innovations in this area.

This is the second time Amcor Flexibles has won the Bioplastics Award. For further information visit www. amcor.com. J

Making Convenience Easy – The Linpac Way Linpac Packaging, in partnership with Anchor USA, has launched a new microwavable range of platters and dishes into the UK and European food service market, to meet demand from the growing convenience market segment. The new range, manufactured in polypropylene includes a wide variety of dishes and bowls which can be heated up to 170 degrees Centigrade in the microwave and are dishwasher safe as well as reusable. The range includes self-venting lids

to allow steam to escape from pack during microwaving, that also have an anti-fog coating to give good product visibility when on display. Linpac Packaging has produced a new brochure, ‘Convenience Made Easy’, which can be obtained by calling the customer service team on Tel +44(0)1977 692400. J

Sharpak Lifts the Wraps on a Double Recycle First In what is a first Sharp Interpack (Sharpak) has launched a range of polypropylene (PP) poultry and mushroom trays incorporating both PP industrial waste and post consumer recycled high density polyethylene (r-HDPE) from a UK waste stream. Sharp Interpack was the first rigid thermoformed packaging company to introduce recycled PET into its family of fresh produce punnets with up to 60% post consumer waste and now the company has introduced the first 100% r-PET fresh produce punnets. Both these launches are good news for the environment as they dramatically reduce the reliance on virgin petro chemicals and with rAPET achieve the company’s zero virgin objective. For further information visit www.sharpinterpack.com. J

Packaging Automation Celebrates 45 Years at the Top Packaging Automation is celebrating 45 years as a leading UK designer and manufacturer

of tray sealing and filling equipment. The business has come a long way since founder Arthur Penn designed his first heat sealing machine at the family home in Green Hedges, Cheshire in 1963. “Whilst there have been huge changes in terms of technology and machine design over the past 45 years, some things at Packaging Automation have stayed the same - the commitment to manufacturing the best machines, our pride in being a truly British company, the constant drive to improve and innovate to meet the needs of the market, and offering a level of service which is second to none,” says chairman Anthony Penn, son of the founder. J

Measom Freer Shows Green Credentials Measom Freer believes it has an important duty to ensure good environmental performance in all of its business operations and to provide the necessary organisation, commitment and training to fulfill this obligation. It is so committed to achieving this aim that it is currently working towards a British Standard 8555 Certified Environmental Management System. “We are currently working towards Phase 3 and are already seeing benefits with reduced amounts of waste going to landfill and paperless invoicing and energy monitoring both helping to reduce costs,” says managing director Mark Freer. “We have always had in house recycling of production materials and we now source outlets for our plastic waste.” For UK manufactured quality plastic packaging contact Measom Freer on Tel +44 (0)116 2881588, Fax +44 (0)116 2813000, sales@measomfreer.co.uk or visit www.measomfreer.co.uk. J

FOOD & DRINK BUSINESS EUROPE, DECEMBER/JANUARY 2009

Lynx Link Gives Riggs Substantial Growth in Ireland Collaboration with a leading supplier of packaging machinery has helped Riggs Autopack expand into new areas and secure its position within the Irish market. Riggs Autopack's link with packaging specialist, Lynx Automation, has significantly raised the profile of the UK-based company's range of automatic and semi automatic depositing and filling machines in Ireland. Lynx Automation's depth of knowledge of the Irish markets has been invaluable to the success of the collaboration in Ireland, whilst Riggs Autopack's vast technological knowledge and reputation within the food industry has significantly increased the number of sales leads in the region.

Together Riggs Autopack and Lynx Automation provide a single, local point of contact for Ireland's artisan industries such as dairy and condiments, as well as offering bespoke solutions for the highly automated producers such as ready meals manufacturers. J

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I PACKAGING LOGISTICS

Fresh Produce - Unintended Consequences When companies choose to distribute fresh produce in plastic trays rather than corrugated, they make themselves subject to the law of unintended consequences, argues Andrew Barnetson of the Confederation of Paper Industries (CPI). The result of their decision can be a negative impact on the environment in the form of higher transport costs. here are few black and white answers T when it comes to developing packaging logistics. The issues are more complicated than many people realise. However, I’m sure we are all in agreement that environmental arguments about packaging should be worked through on the basis of fact and scientific method. But the use of plastic trays to replace corrugated is in danger of becoming conventional wisdom unsupported by careful examination of all the facts.

Environmental Impact When they are properly examined, particularly in the context of environmental impact, the facts cast doubt over current practices. Let’s just take one big fact to start with: with corrugated, you have the ability to vary the height of trays instead of having ‘one size fits all’. This leads to far greater efficiencies and lower costs.

Why? Because corrugated trays make much better use of space on pallets. A recent study showed that standard large corrugated produce trays (600 x 400mm), for example, outperform plastic trays in terms of space efficiency - 91-98% utilisation versus plastics at 66-81%.

For example, the transport of cucumbers in a plastic 400 x 300mm tray typically uses

a fixed height of 135mm and much of this is not used. With corrugated, bespoke design allows a reduced height of 80mm, which means the full height of the tray is used. A pallet might typically have 10 trays per layer and this means, with corrugated, you can have 20 layers and 200 trays on a pallet compared with just 10 layers and 100 trays using plastic.

More products per pallet lead to greater efficiencies, lower costs and fewer trucks on the roads.

It is not always understood that some produce arrives at the retailers’ distribution centres packed in corrugated trays which is then decanted into plastic trays for the journey to the retailer. The corrugated is sent for recycling after the produce has been counted out into plastic trays. But the impact of decanting is that there can be as many as four times more truck journeys for the onward journey using plastic trays instead of corrugated. The retailer may have good commercial reasons for this action but it has a big impact in terms of CO2 emissions.

Recycling Another argument often made in favour of plastic trays is that they are reusable, but reuse is not always better than recycling. Indeed, the Waste Framework Directive (2008/98/EC), which has just been published, recognises the ‘reduce-

20

reuse-recycle’ waste hierarchy, but importantly identifies that there may be situations when recycling is better than reusing.

We believe that, in many cases, the transport of fresh produce is one of those situations, especially as the supply of corrugated is more easily calibrated to seasonal demand.

If everyone is really signing up to reducing environmental impact, such considerations should be factored into the design of truly sustainable distribution systems.

Transport Implications We realise the potential complexity of calculating the full environmental impact of packaging choices, but we argue that companies need to take fully into account the transport implications of using plastic trays which may counter the benefits of returnable systems. Indeed the unintended consequence of the constant circulation of plastic trays on lorries may well be more cost and more pollution. We call for a re-examination of all the facts before any more such decisions are made.

For further information please contact Andrew Barnetson, Corrugated Sector Manager, on 07775 771662 or email abarnetson@paper.org.uk. J

FOOD & DRINK BUSINESS EUROPE, DECEMBER/JANUARY 2009

Corrugated In – Cost Out ne of DS Smith Packaging’s most funO damental beliefs is that corrugated packaging can act as a catalyst for significant cost reductions throughout the supply chain. When analysing customers’ packaging requirements, DS Smith Packaging sets out to help them achieve three things – reduce cost, boost sales and increase profit.

Pack It Up For many years now, automated packing systems have helped drive costs down and this remains a very important aspect of improving productivity. Less well known perhaps is the fact that a well designed pack can also speed up manual packing times.

This keeps labour costs down and can have major health and safety spin offs as well. In this context, the design issues are to work out the optimum geometry of the pack and ensure ease of assembly and closure.

Stack It Up Space really is the new frontier as far as corrugated packaging is concerned. The savings that can be made by getting the equation between pack size and strength absolutely right are enormous.

The objective is simple - to make sure that pallets and lorries are filled to the brim, safely and securely. This requires a detailed analysis of the packaging supply chain so that the minimum weight and area of paper material is used to ensure true fit for purpose packaging.

Rack It Up Retail ready packaging is a phenomenon when it comes to cost savings. This is where DS Smith Packaging’s design knowledge and skill can pay serious dividends for customers. A retail ready pack may be able to remove one tier of packaging from the system as it acts both to proImprove productivity through faster packing times. tect and display the products. These packs save time, and that and stock range. means money, as they are quickly identified by store staff and just as quickly set up to Recycle display the goods on the shelf.

With corrugated it is possible to go green Because retail ready packs have been and save money. Far from seeing environdesigned with many different parameters in mental issues as a problem, DS Smith Packaging sees them as an opportunity to reduce costs and improve performance at the same time.

By switching from other materials to corrugated it is possible to increase mind, they make full use of all the three recycling substantially, and that means dimensions on shelf. The size of the packs avoiding landfill. The carbon effectively is related to shelf fixture dimensions and remains locked up in the box as the same linked to the rate of sale in order to facili- fibres go round and round the corrugated tate almost continuous availability of stock loop. for customers to shop. By optimising this space, retailers can increase both availability It All Adds Up Corrugated packaging saves costs directly and indirectly and it can all add up to very significant sums of money. DS Smith Packaging has a very sophisticated suite of tools with which to analyse every aspect of packaging’s impact on the supply chain

Efficiently designed corrugated means less lorries on the road.

Recycling corrugated saves landfill costs.

called ‘PackRight’. These tools enable customers to create corrugated packaging which takes cost out of the supply chain, has more impact at point of sale and enhances environmental credentials. What more could you ask?

For more information call DS Smith Packaging on 0845 260 70 80, E-mail sales.support@dssp.com or visit www.dssmith-packaging.com. J FOOD & DRINK BUSINESS EUROPE, DECEMBER/JANUARY 2009

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QUALITY

& HYGIENE

Quality Hygienic Stainless Steel Furniture and Equipment From Teknomek eknomek is a leading manufacturer and T supplier of quality hygienic stainless steel furniture and equipment. With over 20 years of experience within the stainless steel manufacturing sector, Teknomek has the knowledge, expertise and up-to-date technology to produce finished products of the highest calibre at competitive prices.

Continuing growth and a solid reputation saw Teknomek expand into a purpose built office, warehousing and manufacturing unit, which allows consistent communication through all areas of business, the offer of a next day delivery for 100s of standard

products and the ability to design and produce custom–built products.

In response to customer demand, Teknomek is able to stock many standard products ready for a next day delivery, including tables, sinks, shelves, clipboards, cupboards and clearing trolleys.

Teknomek is able to supply and manufacture complete working areas to ensure consistency in product design and finish, ease of ordering and maintaining hygienic standards throughout. Quality and durability is guaranteed with all Teknomek’s manufactured products, providing an incomparable service to all areas of the food industry.

The company also offers after care information and products to enable customers to maintain the quality of their products.

All standard products can be ordered online at Teknomek’s website, where extensive product information can be obtained.

For further information and to request a free catalogue contact Teknomek on Tel +44 (0)1603 788833, Fax +44 (0)1603 418380, E-mail mail@teknomek.co.uk or visit www.teknomek.co.uk. J

Silver Technology Helps Businesses to Shine ioCote, leaders in silver antimicrobial surface proB tection, will be at Hospitality showing how its technology can help businesses differentiate their products to stay ahead of the competition in today’s challenging economic climate. BioCote provides product manufacturers with the technology and technical support to make their products antimicrobial.

BioCote utilises silver ion technology, which is incorporated into products at the time of manufacture.

With built-in antimicrobial protection, products are able to reduce bacteria, such as E.coli and Salmonella, 22

on their surface by up to 99.9%.

Products are therefore cleaner, safer and more hygienic to use, making them ideal for environments where hygiene is a priority. Matthew Harte, managing director comments: “Hospitality service providers, such as hotels, gyms and restaurants need to offer their customers the cleanest, most hygienic environments possible for their safety and comfort.

By utilising BioCote, manufacturers can help meet these requirements and add value over their competitors.” J

FOOD & DRINK BUSINESS EUROPE, DECEMBER/JANUARY 2009

QUALITY

I

& HYGIENE

FOOD QUALITY & SAFETY

Hygiena Technology Delivers ‘More With Less’ ost businesses today are trying to achieve ‘more with less’ and the food M and drink industry is no exception. Cost saving measures such as just-in-time and reduced inventory are being used and rapid tests for quality and safety can offer significant benefits.

The implementation of management systems for food safety and quality, provide evidence of due diligence and traceability that enable quality and shelf life improvements whilst reducing the risk of downgraded product, product recalls and bad press that all have major cost implications.

These requirements and associated audits

increase the demands on staff operating management systems.

Skilled technical labour can be difficult to find and pressures to reduce labour costs can result in a lack of skills in some technical functions particularly in the laboratory or hygiene departInSite Listeria. ments that are in the frontline of monitoring and protecting quality and safety of products. These pressures demand that test methods are simple, convenient and low cost.

ATP Bioluminescence

ATP bioluminescence is being used for several test applications within the food and drink industry, and recent developments have made it more cost effective.

The most widely used test application of ATP bioluminescence is that of rapid hygiene monitoring because it delivers a direct, objective test with simple, easy-touse equipment at low cost. The technology and application has been established for over 30 years and is widely recognised as a test of cleaning efficiency. The benefits include: • Direct detection of product residue that should have been removed by cleaning.

• Improved cleaning efficiency and optimisation of cleaning chemicals giving potential savings of 25–50%.

• Result in 15 seconds permitting immediate corrective such as re-cleaning. Rapid results also enable fast trace-back and trouble-shooting to quickly identify and prevent problems from escalating out of control.

• Reduced risk of cross contamination that facilitates the production of high quality products with best shelf life.

• Generation of data that provides evidence of due diligence for auditors and trend analysis for continuous improvement.

Senior technical professionals from leading independent organisations around the world concur that the ATP test is a direct, objective method that detects product

residues on surfaces, and that the test is not intended to be a direct replacement for the traditional cultural microbiological test. Put simply, ATP hygiene monitoring is a product residue test, not a bacteria test.

What is ATP Hygiene Monitoring?

The method uses the enzyme luciferase to convert a chemical compound (Adenosine Triphosphate, ATP) into a light signal which is measured by the instrument that gives results in Relative Light Units (RLU). The enzyme is very specific for ATP only and does not detect ADP or AMP. The test is very sensitive, gives results in seconds that are linear, repeatable and reproducible.

In summary, the application of ATP bioluminescence for rapid hygiene monitoring has been established for many years and now makes a well recognised contribution to food quality and safety systems. These systems deliver a rapid, direct, objective measurement of cleaning efficiency, hygienic status and risk, primarily by the measurement of product residues.

ATP hygiene monitoring provides cost savings to the business as well as improvements in product quality. The results from ATP hygiene monitoring are different to those of microbial enumeration methods and give additional information that the microbial test cannot provide.

ATP tests are not intended to replace microbial tests and there is coincidental direct correlation between the results of the two methods. The ATP test is not suitable for the enumeration of microbes on products contact surfaces because it does not have the desired sensitivity. ATP detection

FOOD & DRINK BUSINESS EUROPE, DECEMBER/JANUARY 2009

23

QUALITY

& HYGIENE

SystemSURE Plus and steps in the process.

systems with low background noise deliver the better performance.

Reliable and Affordable ATP Hygiene Testing

SystemSURE Plus from Hygiena International incorporates novel state-ofthe-art detection technology that delivers simplicity and affordability, and was recognised in Business Excellence Awards for Innovation in 2008.

One of the unique features of the systems

is the very low background noise that means that the system can clearly differentiate between results at very low RLU values unlike other systems. This low background confers a high degree of precision and sensitivity to the system at low ATP levels.

Other unique features of systemSURE Plus include self-calibration and Ultrasnap swab. negligible servicing

costs.

Hygiena International commissioned CCFRA (the largest membership based food and drink research centre in the world) to test the new Hygiena systemSURE Plus Instrument. Whilst CCFRA does not endorse specific products or services its conclusions were that SystemSURE Plus produces accurate and repeatable results.

The ATP and the food residue detection experiments demonstrated the sensitivity and repeatability of the SystemSURE Plus system to detect ATP over a range of concentrations and for a range of food groups with reproducible results. J

Risk Management and Listeria Monitoring Listeria is found in most food factories particularly in floors, drains, coolers and drip trays, as well as on raw materials, pallets, trucks etc. Accordingly it is almost impossible to eradicate.

Listeria is a genus of 8 named species of which only one (Listeria monocytogenes) is pathogenic with a 30% mortality rate causing 2,500 deaths per annum in the US in young , old , infirm or immuno-compromised patients.

It is these characteristics that make Listeria a significant hazard in the manufacture of ready-to-eat (RTE) foods. Following thermal processing, the main environmental control measures are containment and prevention ie: • effective cleaning, • segregation, • prevention of cross contamination, and • Temperature controlled storage and distribution.

European regulation 2073/2005 includes requirements for managing Listeria in foodstuffs and lists two types of criterion. These criteria are: • Food safety criteria to assess the safety of the product and process itself • Process hygiene criteria to “ensure the production processes are operating properly”.

Food companies must take corrective action if these criteria are not met.

There are several different types of methods for the detection of Listeria, and many take 1–5 days to produce results and required skilled laboratory analysts.

steps and a hands-on time of 2 minutes. The traditional cultural method has 9 steps and a hands-on time of the order of 67 minutes per sample.

InSite Listeria generates results in as little as 30 hours which is faster than most of the other methods currently available.

The test results of many finished product and samples from product contact surfaces will be negative if good processing and environmental controls are in place. Simple, rapid screening methods provide a significant benefit because they quickly eliminate the negative samples and do not require a skilled analyst or expensive hardware. This will save time and cost, and allow production to proceed with confidence. Two rapid screening methods can be used in conjunction for an effectively Listeria risk management program. They are: • non-specific rapid hygiene monitoring test based on ATP bioluminescence (such as Hygiena SystemSURE Plus) that will demonstrate that effectiveness of cleaning procedures, and • Simple, specific, cultural indicator tests (such as InSite Listeria) that will demonstrate the presence or absence of Listeria sp.

Any presumptive positives from Listeria screening can then be sent for further analysis and confirmation, while immediate investigations can be initiated to identify potential sources of contamination using both rapid screening methods.

Simplicity is Key Simplicity is a key consideration when considering which test method to choose for monitoring Listeria in environmental samples. A method that has few steps also reduces the opportunity to introduce errors. Reduced operator hands-on time also reduces labour costs through greater efficiency and requires less training. Results delivered quickly enable greater control in the manufacturing process. InSite Listeria allows environmental testing for Listeria to be done quickly and easily on-site without the need for complex procedures or expensive equipment.

It can be seen from the chart that InSite is the simplest test available. After taking the sample, the device is simply activated with a “snap and squeeze”, then placed in the incubator.

Result interpretation is by a simple colour change. A total of 4

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FOOD & DRINK BUSINESS EUROPE, DECEMBER/JANUARY 2009

QUALITY

& SAFETY

X-RAY INSPECTION

I

Mettler Toledo Safeline Takes to the Road ettler Toledo Safeline, the world leader in inline X-ray inspecM tion, takes to the road in 2009 giving customers the unique opportunity to get involved with hands on demonstrations using the latest technology for contamination detection.

The 2008 tour was a huge success with customers delighted to have the opportunity to test their products on the Safeline X-ray machines without having to take significant time out of their busy work schedules.

Nick Hobson, technical manager at Isleport Foods comments: “I was impressed with the amount of effort and commitment that Mettler-Toledo invested into this project. The visit of the van gave us the opportunity to see a live hands-on demonstration involving our product which helped us understand the value of x-ray inspection technology.”

Mettler Toledo offers solutions for food and pharmaceutical applications related to contamination detection, portion control and package integrity inspection for bulk, glass and packaged products.

All systems feature industry-

leading detector and image processing technology, simple set-up and use, user-friendly intuitive operator interfaces and sealing to IP65 as standard, with IP69K optional.

The X-ray inspection van is on tour in the UK throughout 2009.

Visit www.mt.com/fairs to book your demonstration or contact the Product Inspection Marketing Team on Tel 0116 2357070 or Email pi.mtuk@mt.com. J

RESEARCH & DEVELOPMENT

I

Teagasc Food Researcher Wins Enterprise Ireland Award for Contribution to Food Industry r Paul Ross, head of Biotechnology at Teagasc’s Moorepark D Food Research Centre in Cork, has won Enterprise Ireland’s Lifescience and Food Commercialisation Award 2008. Dr Ross

Dr Paul Roben, Enterprise Ireland, presenting the Lifescience and Food Research Commercialisation Award to Dr Paul Ross, head of Biotechnology at Teagasc Moorepark in Cork.

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won the award for the high levels of research results he has turned into new technologies and licensed to food companies.

Dr Ross has also been heavily involved in the recently an-nounced Functional Foods Research Centre in which Enterprise Ireland is investing Eur20 million to facilitate the delivery of new high-value innovative food products for health conscious consumers. J

FOOD & DRINK BUSINESS EUROPE, DECEMBER/JANUARY 2009

I FOOD GRADE LUBRICANTS

Q & A – With Colleen Flanagan, Petro-Canada’s Specialty Fluids & Food Grade Lubricants Category Manager Petro-Canada blends and packages more than 350 different lubricants, specialty fluids and greases that are exported to more than 60 countries on six continents. Products are manufactured from 99.9% pure base oils – among the purest in the world. The company is a leading global supplier of food grade lubricants. Their PURITYTM FG food grade lubricants are designed for many food processing applications in food processing plants. The lubricants are effective under severe operating conditions – from food acids and juices to by-products and temperature swings.

Q: Why is Petro-Canada recognised as an industry leader in providing innovation solutions?

Colleen Flanagan: There are several reasons why. For starters, Petro-Canada manufactures over 350 different lubricants, specialty fluids and greases, which we export to more than 60 countries in six continents. We are one of the largest manufacturers of white oils in the world, and a leading supplier of automatic transmission oils, in what is known as the “first fill” business. With more than 30 years of experience in the blending of Groups II and III base oils, we offer a wide range of innovative lubricant products, which fulfill the different international standards.

In addition, Petro-Canada has a constantly growing network of sales partners.

We pride ourselves on providing tangible savings solutions to our customers. We help to determine the optimal lubricant and the amount expected to be needed for each customer and for each application. This means that our customers profit, on the one hand, from the transparency of expected cost levels, and on the other hand, from much greater intervals between oil changes and services, thanks to the expert selection of the optimal lubricant.

Q: Petro-Canada is proud of their patented HT process. What is the HT difference?

facturing Practice (GMP) plans, and carry a full set of food grade credentials meeting NSF H1 requirements.

Colleen Flanagan: In general, the performance of a lubricant increases with the purity of the base oils used. This is where the strength of Petro-Canada lies. We start our formulations with the patented HT purity process to produce 99.9% pure base oils – among the purest in the world. The result is a range of lubricants, specialty fluids and greases that deliver maximum performance for our customers.

Q: Petro-Canada has made some exciting announcements and product launches over the past few years, especially relating to your food grade and general manufacturing lubricants.

What’s in store for 2009?

Q: Can you tell us more about PetroCanada’s food grade lubricants, PURITY FG? Colleen Flanagan: Absolutely. The PURITY FG product line includes lubricants for compressors and vacuum pumps, hydraulic fluids and light transmission lubricants, high-performance transmission lubricants, white oils, trolley fluid, multi-function aerosols, greases, light and heavy chain lubricants as well as heat carrier oils. The products are specially formulated to deliver long life and excellent wear protection for fewer production disruptions and higher productivity. They also fit perfectly into Hazard Analysis and Critical Control Points (HACCP) and Good Manu-

Colleen Flanagan: You’re right, it has been an exciting couple of years, what with the launch of PURITY FG with MICROLTM† in 2007 and the 2008-launch of REFLOTM XL Synthetic Blend Refrigeration Lubricating Fluid. Rest assured, 2009 will be yet another exciting year for us. I can’t divulge too much just yet, but I can let you know that we’ll soon be announcing the launch of PURITY FG Synthetic Compressor Fluid – a synthetic PAO-based product, scientifically formulated to provide a multitude of performance benefits.

Stay tuned, and visit www.lubricants.petrocanada.ca for more details.

For more information contact Colleen Flanagan on Tel +1 905 804 3631, E-mail flanagan@petro-canada.ca, Website lubricants.petro-canada.ca. J TM Trademark of Petro-Canada † MICROL is an antimicrobial product protection agent

FOOD & DRINK BUSINESS EUROPE, DECEMBER/JANUARY 2009

27

I FLUID HANDLING

AxFlow Ireland – The ‘Total Solution Provider’ ithin food and beverage W production, pumps represent an essential part of an integrated processing system, which is why selecting the most appropriate pump type is most important in order to attain optimum product quality and processing efficiency. This is where a company such as AxFlow Ireland can play an important role for it has the capabilities to design, construct, commission and maintain process packages.

Being a member of a panEuropean organisation that specialises in the provision of fluid handling systems and components enables AxFlow Ireland to draw on a vast amount of expertise and technical experience in all areas of process technology and in particular soft and alcoholic beverages production. It also means that engineering maintenance services and spare parts are readily available at the company’s Dublin workshops, and it is these resources which set the company apart from others that are simply pump distributors.

Simple, Lower Cost Installations

Pumps that have been designed for specific duties, although sometimes more expensive at the outset, can often repay their extra cost in more simple/lower cost installations. This is achieved by contributing to lower maintenance costs and higher plant availability.

AxFlow Ireland offers long term product service-repair to ensure that pumping installations continue to maximise productivity. Offering a variety of planned maintenance programmes - either on site or as a service return – all AxFlow’s work is carried out to meet customers’ specific needs and to allow scheduled maintenance.

Two of AxFlow Ireland’s most widely specified pump technologies for food and beverage production are Waukesha 28

Waukesha Cherry Burrell Universal II.

Cherry Burrell’s rotary piston pumps and Bran + Luebbe’s dosing/metering pumps.

Waukesha Cherry-Burrell’s Universal Pump

high viscosity fluids and solids are involved, the large fluid cavities of the rotors, together with the large easy-entry anti-cavitation ports enable efficient pumping.

Waukesha Cherry-Burrell’s Universal pump is a rotary pis- Bran + Luebbe’s ton pump that employs an Dosing/metering Pumps operating principle known as The Bran + Luebbe reciprocatthe external circumferential pis- ing positive displacement ton (ECP). In this design the process pump is a very different arc-shaped rotary pistons, or technology and is a proven rotor wings, travel in annular- method for the in-line proporshaped cylinders machined in tioning and dosing of liquids the pump body. The resulting and provides the highest levels long sealing path reduces slip- of accuracy and repeatability page and produces a smooth available. The factors affecting product flow without destruc- the choice of a metering or dostive pulses or pressure peaks, ing pump as opposed to other and without the need for valves types of pump are normally or complex parts. associated with precision over a However, unlike progressing range of flows and the fact that cavity and rotary lobe pumps, the capacity is not influenced the WCB Universal pump is by pressure fluctuations within not adversely affected by vary- the process. ing or viscous products even The metering pump is very with large particles that may adaptable and due to its design settle in the pump. Because the is ideal for the continuous, inrotors of the Universal Series phase metering of single or ECP pump produce a scooping action, they do not squeeze and compact the medium being pumped.

Manufactured from stainless steel and suitable for CIP cleaning, the pump’s close clearances allow the pumping of water against back pressures, whilst its simple design enables operators to completely strip it down for inspection in situ without the need to remove connecting pipework. Where Bran + Luebbe ‘ProCam Sanitary’ pump.

FOOD & DRINK BUSINESS EUROPE, DECEMBER/JANUARY 2009

multiple liquid systems at varying rates. It is the only pump with two flow adjustment methods, speed and stroke length, that can be used independently or simultaneously to provide optimum performance. For instance in a process where an ingredient has to be added accurately to a varying main flow, the proportion can be maintained by speed adjustment, whilst any corrections necessary to maintain product quality can be made by adjustment of stroke length. This means that the metering pump can be finely tuned to the requirements of the system.

Within the brewing industry an example where the metering pump can be used is in a cask conditioned ales racking plant.

Here the pumps and control systems can be used for adding finings, alginate and yeast.

Accurate dosing control enables operators to calculate the amount of finings, yeast and alginate being used which in turn leads to more economic use of these ingredients. A further benefit is that it can also guarantee quality control at all times.

In Axflow’s experience, many fluid handling problems arise because the pumps used are neither designed nor suitable for applications and/or conditions for which they have been selected. It is the application and the nature of the medium being pumped that will always determine the type of pump to be used. By consulting AxFlow’s process engineers and providing them with specific details of the properties of the pumped medium, together with the requirements of the processing system, the correct pump technology and materials used in the construction of the pump components can be selected. J

To find out more, visit: www.axflow.com Ireland tel. +353 1 830 07 44

SuperiorPowders Acquires Spray-drying Operation From Agrisales uperiorPowders has acquired a S European contract drying facility located near Bristol from Agrisales.

SuperiorPowders is a new joint venture between DD Williamson and Marigot – two, well-established food ingredient suppliers. As an independent, contract manufacturing company certified to ISO 9001 standards, SuperiorPowders provides a number of capabilities in processing and blending for European customers in the food, beverage, and pharmaceutical industries. Located in Bason Bridge, near Bristol, UK, the company processes only food or pharmaceutical grade ingredients.

“SuperiorPowders offers impressive drying scale choices on modern equipment for customers in the food, beverage and pharmaceutical industries,” says Ted Nixon, chairman of DD Williamson. Customers developing R & D prototypes can opt for small batch or large batch dryers.

“Beyond spray-drying, SuperiorPowders offers extensive value-added possibilities for dry mixing,” adds Les Auchincloss, chairman of Marigot. SuperiorPowders meets customer demands for dry mixes to reduce freight costs, and to extend shelf life.

Spray Drying Spray drying transforms a fluid into powder by atomising a fluid into a drying chamber, where liquid droplets pass through a hot air stream. The objective is producing a spray of high surface-to-mass ratio droplets, and then uniformly and rapidly evaporating the water. Evaporation keeps product temperature at a minimum to prevent high-temperature deterioration.

Computerised process systems control quality and consistency.

SuperiorPowders has the expertise and experience in spray drying a wide variety of ingredients and volumes. It analyses solids specifications in the starting liquid to meet customer requirements for moisture content in the final, dried product. Customer quality requirements also include particle size, measured by sieve specifications, and functional characteristics such as clarity upon reconstituting in solution. Some customers specify additional requirements for flavour intensity, dispersibility, and solubility.

30

SuperiorPowders works to control costs by optimising the highest possible yield to reduce customer’s solids loss in drying.

Several options in modern drying equipment enable customers to utilise three of SuperiorPowders’ spray dryers capable of handling between 10 and 2,000 kgs per hour. Customers have needs for both regular and spot drying – requiring shorter leadtimes. SuperiorPowders’ scale and capacity allow for flexibility to service both types of demands.

SuperiorPowders offers several packaging options to meet customer requirements.

Customers request moisture resistant packaging in cartons, bags, bulk bags, and various other types. Either the customer or SuperiorPowders can supply packaging.

Net weight of packaged powder is typically 25 kgs, and other weight specifications are welcome.

Customers supply the starting liquid for drying. SuperiorPowders has the storage and processing equipment to mix/blend the liquid prior to drying, if required.

Pilot Plant for R & D A pilot plant services customers for product development, small batch runs, and fullscale production. SuperiorPowders’ small-

scale equipment and process development capability aim to minimise risk and reduce development costs for customers. The company offers flexible, specialised capabilities from lab-scale samples to scaled-up quantities. On staff scientists help customers develop products that are capable of being spray dried. By validating ingredients and achieving a process evaluation prior to scale-up, associates at SuperiorPowders can help customers optimize a liquid formula for drying.

The Pilot Plant dryer operates from 0.2 to 15.0 kgs per hour, depending on solids content. Larger dryers operate at 60 to 2,000 kgs per hour.

Pilot Plant dryers handle only food-grade materials for products that can be used in flavours or taste tests. SuperiorPowders’ capabilities help customers move quickly from their initial trials to full-scale production.

Agglomerating Fluid bed technology provides for mixing and fusing to increase particle size. A second refusing process, with or without fluid additions, further boosts agglomeration to meet customer’s bulk density and sieve test requirements. Modern, state-of-the-art controls and equipment allow SuperiorPowders to make a range of particle sizes and densities with accurate and consistent results.

Power Blending SuperiorPowders offers blending capabilities to combine two or more dry ingredients for customers. Its equipment can handle customers’ out-of-specification material for corrective reprocessing.

Customers interested in Superior Powders’ contract processing services can phone the company at +44 (0)1278 784521 and find further contact details at www.superiorpowders.com or www.superiorpowders.co.uk. For company background, visitwww.ddwilliamson.com andwww.marigot.ie/. J

FOOD & DRINK BUSINESS EUROPE, DECEMBER/JANUARY 2009

I BAKERY

€19 Billion Russian Bakery Market Shows Eastern Promise Western-style products have been gaining popularity within the vast but highly traditional Russian bakery market. he Russian bakery and cereals bakery goods started in Moscow, the market was worth Rub652.5 country’s leader in terms of conbillion (US$25.5 billion) in sumer tastes, they are also now gain2008 and has grown at a ing in popularity in other major CAGR of 4.5% since 2001, according Russian cities. to Datamonitor. The market is expected to maintain the same pace of expanLeading Players sion in the future with the growth rate The Russian bakery market comprisranging between 3% and 5%. es about 1000 bread factories, each The strengthening of the ruble, staproducing between 30 to 50 tons a ble growth in personal incomes and day, along with 10,000 small and changing consumer preferences are medium-sized businesses. expected to help expand the bakery The leading Russian baker in 2006 market in Russia as consumers show a was Baltiyskiy Khleb, followed by willingness to pay extra for premium JSC Proletarets Bakery and Khlebniy products.

Although the shift towards western-style bakery goods started in Dom in third place. Having invested Recent figures from investment bank Moscow, the country’s leader in terms of consumer tastes, they are about Eur130 million in developing Lehman Brothers reveal that the aver- also now gaining in popularity in other major Russian cities. its business in Russia during the past age earnings of Russians have increased ten years, Fazer Group has since from about $160 a month in 2002 to $540 Western-style bakery products offer high- emerged as one of the country’s leading at present. er profit margins compared to the 3% bakeries. The Finnish bakery giant also has available from dark breads. plans to establish a greenfield bakery in St Highest Consumption Rate Until recently, market demand was still Petersburg at a cost of over Eur100 million Russians have the highest per capita con- mainly for unpackaged bakery goods but (see Panel). sumption rate of bread in Europe with an the trend is now towards pre-packaged With the exception of Fazer, the Russian average of approximately 100 kilograms per products as supermarket chains realise the bakery market has remained the preserve of person each year. Although traditional benefits of this change. Specialty cakes, Russian companies but this is likely to Russian black breads still dominate the breads and snacks are popular as gifts in change as foreign bakers seek to make market, the demand for western-style bak- Russia, where bread and salt are traditional- inroads. Indeed, further penetration of the ery products such as pastries, croissants, ly served to welcome important guests and Russian bakery market by multinational baguettes and ciabatta has risen as dispos- to symbolise friendship and trust. bakery groups is expected as local compaable incomes have increased.

Although the shift towards western-style nies become acquisition targets. J

T

Fazer Group’s Russian Expansion Having invested over Eur130 million in its operations in Russia during the past ten years Frazer Group has emerged as one of the country’s leading bakers. Fazer first entered the Russian bakery market in 1997 following the acquisition of a majority stake in the Hlebnyi Dom bakery in St Petersburg. The Finnish bakery group currently controls about 30% of the market in St Petersburg and the surrounding area.

In 2005, Fazer purchased the Zvezdny bakery in Moscow, one of the biggest producers of frozen pizza and dough in Russia, and more recently acquired a majority stake in Volzhky pekar, the leading producer of fresh bread and coffee bread in the Tver region.

Fazer is now planning to build a new bakery in St Petersburg, involving total investment of over Eur100 mil-

lion, to support its growth strategy in Russia. “The new bakery will enable us to introduce new types of products and increase our deliveries to other areas in Russia. The bakery will produce value added fresh and frozen bread and coffee bread,” says Harri-Pekka Kaukonen, who is responsible for Fazer’s operations in Russia.

During the past three years, Fazer’s bakery operations in Russia have grown at an average rate of about 40% annually.

Fazer’s Russian turnover in 2007 was Eur170 million (14% of total group revenues) and the division employs 3,700 people.

Indeed, Fazer Russia is one of three divisions operated by the Finnish bakery group. The others are Fazer Amica, a leading contract catering company in the Nordic and the Baltic countries, and Fazer Bakeries, which produces bakery products in Finland, Sweden, Estonia, Latvia and Lithuania.

FOOD & DRINK BUSINESS EUROPE, DECEMBER/JANUARY 2009

31

I BAKERY

Ibonhart and the Russian Bread Market

By Michael Shcherbinin, Russian Agent for Ibonhart he importance of bread for Russians can scarcely be over stated. For many cenT turies bread has been of sacred significance to them.

In the years of famine bread was the only food for the poor people. And even in modern history during the recent crises in Russia (the depression of the early 90’s and the crisis of 1998) the consumption of bread dramatically increased. Taking this into consideration, at the time of the Soviet Union bread was considered as a social product of great importance and its price was strictly regulated.

For example 20-25 years ago when the average salary in Russia was 150 roubles a month, a 400 grams loaf of bread cost 1825 copecks (0.18-0.25 roubles). At the same time the polythene bag cost 10-15 copecks, equivalent to up to 80% of the price of the loaf. Such imbalances were possible due to the non-market economy where the prices for all products were set by central government.

It is quite understandable, given such a price ratio (price of packaging material was equal to almost 80% of the product price), that almost all the bread loaves were sent to the shops unpacked. If no one had bought this bread it would have become stale and would have been sent back to the bakeries for recycling.

When an open market society emerged the price of the bag for packaging was 5% of the bread loaf price.

Under Russian hygienic standards bagged bread loafs can be kept on the shop shelf for up to 72 hours, so increasing the possi-

there. As a result they chose the equipment supplied by Ibonhart, based in Norwich, England.

The Ibonhart equipment attracted their attention due to its service and maintenance simplicity as well as because of the reliability and durability of its design While visiting the Allied Bakeries plant in London, members of the committee saw the Ibonhart equipment, which has been working there since 1980. When Edward Zaitsev, chief technical specialist of the committee, saw the machines working smoothly in spite of bread crumbs, he exclaimed: "These machines are for us!"

Market Debut The LB90 Top Belt slicer.

bility of the bread selling. Furthermore, the potential for the packed bread being contaminated is almost reduced to zero.

Packaging Programme

In 1995 the Moscow government started a packaging program for the Moscow bakeries. A special committee was established for this purpose, consisting of bakery and market specialists.

The committee analysed the situation with regard to bread packaging on the European market and came to the conclusion that the most advanced kind of packaging was plastic bag with the tied neck.

Unlike other methods, such as flowwrapping and shrinking, this type of package/bag is not thrown away immediately after opening, but serves as a disposable (single-use) bread bin. It can be opened and closed many times. This method of packaging also allows for the packing of sliced bread loaves.

Thus in 1996 the first three Ibonhart machines appeared in Russia. One of them was installed at the ‘Khlebozavod No6’ bakery, the other two were linked with the cooler at the ‘Cherkizovo’ bakery.

Although machines from other European and American companies were later bought, further experience showed that the Ibonhart equipment combined both high quality and acceptable price.

In 1998 the ‘Kolomenskoye’ bakery bought its first Ibonhart IB360 machine to pack only unsliced bread and five years later in 2003 this machine was linked with the Ibonhart reciprocating slicer LB90.

It was the first Ibonhart slicer in Russia and for the Ibonhart specialists it was their first encounter with Russian bread slicing.

The machine was provided with top oiling and a frame stroke of 65 mm.

The installation of the first slicer showed that this machine was able to slice only free-baked and panned white bread but not

European Experience

The IB360 ST6b is one of an order of ten bagging and slicing machines supplied by Ibonhart to four Moscow bakeries in 2007.

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Between 1995 and 1996 members of the committee visited some European bakery plants to get to know the equipment installed and used

FOOD & DRINK BUSINESS EUROPE, DECEMBER/JANUARY 2009

In 2007, Ibonhart won a tender for ten bagging and slicing machines to be installed at four Moscow bakeries.

rye and rye and wheat mixed bread (rye flour up to 50%). Russian bread is quite dense and sticky and its slicing directly depends on proper blade oiling By that time German producers of similar equipment were already familiar with rye bread slicing because the German bread is very similar to that in Russia. The German baggers were equipped with band (drum) slicers, where all the blades move in the same direction, making it much easier to provide the blade oiling option.

In 2005 the problem of the rye bread slicing arose again. However, Ibonhart was ready to solve it - the stroke of frames was increased up to 90mm and bottom blade oiling was implemented. With these options all the blades were totally oiled during slicing along their full length and the slicer could slice the rye and wheat bread loaves (rye flour up to 60%).

Major Contract

In 2007, Ibonhart won a tender for ten bagging and slicing machines to be installed at four Moscow bakeries. All the machines had a full set of options such as a half loaf bagging unit that can pack both sliced and unsliced loaf halves.

During the installation all the machines

were adapted for the packaging and slicing of different sorts of bread. All the machines were equipped with the built-in inverters to change the cutting frames speed. Operators can now choose the best frame speed to slice rye bread. This avoids the appearance of the unattractive gluten traces on the surface of rye loaves.

During the tests speeds of more than 60 loaves a minute were achieved for slicing bread with a high content of rye flour (80% of rye, so-called ‘Borodinskiy’ bread).

Ibonhart can now produce all-purpose slicing and bagging machines. In other words the Ibonhart machines can slice and pack bread loaves of any composition and of any shape including the free-baked loaves of various configurations.

Ibonhart has proved the durability and reliability of its equipment as all the Ibonhart machines installed in Russia since 1996 are still working.

Local Specialists

Because of the frontier and customs barriers between Europe and Russia, it is almost impossible to support and maintain English equipment directly from Great Britain.

Due to these difficulties many reputable European companies have failed to achieve

repeat sales in Russia. However, Ibonhart co-operates with a group of highly skilled Russian specialists that can provide all the necessary service and support to the bakeries. The local agents also recommend to Ibonhart’s designers how to meet the changing needs of customers in the best way.

Indeed, the success of the foreign companies in Russia is based on two key factors: 1.Constant improvement of the machines’ designs, to accommodate the specific peculiarities of the local bread and to meet the needs of customers.

2. Presence of a reliable Russian agent not only for selling but also for proper servicing and maintenance of the sold equipment. J

Ibonhart has proved the durability and reliability of its equipment as all the Ibonhart machines installed in Russia since 1996 are still working.

FOOD & DRINK BUSINESS EUROPE, DECEMBER/JANUARY 2009

33

Farexchange Supplying Good Lines of Communication

Farexchange Partnership, a new initiative for developing sustainable and secure food supply chains, is rolling out a series of seminars, forums and conferences aimed at connecting food processors with growers to help improve logistics, reduce waste and exploit new and existing markets. English Food and Farming Partnerships (EFFP) has been tasked with managing the Farexchange Partnership, in collaboration with the Regional Food Group, Country Land & Business Association, National Farmers Union, Fare Solutions, Askham Bryan College, Bishop Burton College, Yorkshire Agricultural Society, EBLEX and BPEX. Farexchange's planned get-togethers are being designed to bring food companies into contact with their suppliers for a frank exchange of ideas and solutions for issues involving continuity and quality of supply, reduction of waste, logistics and prices, in areas such as milling wheat, malt, milling oats, beef, poultry, pork, lamb and fresh produce.

traditional drum breaders. The linear breading application system features full belt-width product loading which allows the product distribution to be maintained throughout the coating process, greatly simplifying the product discharge.

Once products receive a top and bottom layer of breading, they gently descend through five star wheels, which simulate the manual breading process.

The multiple passes of the product through the wheels ensures uniform breading coverage without the typical product damage that occurs in a drum breader. 600 mm and 1,000 mm widths are available in both electrically and hydraulically driven formats. For more information contact Diane Kemp on 01234 846129 or visit www.jbtfoodtech.com.

CONVEYORS Micropitch Conveys Savings For Food Industry

A Neat Breading Solution

JBT FoodTech has launched the new Stein 5-STAR Home Style Breader. This innovative machine enables food processors to improve homemadestyle breading quality of their products whilst reducing production costs associated with 34

Belting manufacturer Habasit Rossi has launched a new conveyor belt predominantly aimed at the food industry. As the only belt of its kind the innovatively constructed HabasitLINK M0870 Micropitch Flat Top 0.3" pitch system is already bringing cost saving benefits to well-known bakery and confectionery companies. The Micropitch belt has been specifically designed for the smallest possible gaps in nose bar transfers by running over a 7mm diameter nose bar thus eliminating the need for dead plates. This extremely tight transfer leads to increased profitability by efficiently conveying a broad range of delicate, small footprint food products. Smooth running, gap reduction and less product damage have also been achieved within the manufacturing

process because the Micropitch facilitates smooth and tight transfers, enhanced tracking and product stability, whilst allowing recovery of dispersed products. For further information contact Habasit Rossi on Tel +44 (0)870 8359655 or visit www.habasitrossi.co.uk.

rated pumps the company produces that also saw it achieve overall Champion of Champions status.

Green Apple Awards 2008 - Peter Reynolds (left), general manager of Grundfos Pumps, with Andrew Selous MP.

PUMPS Environmental Award Win For Grundfos Pumps

For the fourth consecutive year, Grundfos Pumps is the recipient of a Green Apple Award.

Grundfos is the overall winners of the Gold Award in the Manufacturing and Engineer-ing category. This latest win recognises the many local environmental initiatives that include: a walk to work scheme, children’s art competition and the use of a wide range of e-communication tools that save huge amounts of paper. The Green Apple Awards are organised by The Green Organisation - an independent, non-political, non-profit environmental group dedicated to recognising, rewarding and promoting environmental best practice around the world. Previous Grundfos Green Apple Award wins recognised the importance of the wide range of ‘A’ energy

FOOD & DRINK BUSINESS EUROPE, DECEMBER/JANUARY 2009

Grundfos CAPS Success

Grundfos Pumps has been offering customers various tools to assist them to make specific pump selections to match their needs via their web site for over a decade. WebCAPS (the web based computer aided pump selection tool), has continued to evolve over the years with the technology that supports it becoming increasingly sophisticated to match the needs of the diverse and growing customer base. The facility today offers customers a wide range of choices including: product information, drawings, performance curves, a range of literature, service information, pump selection and replacement information as well as CAD drawings. Recent statistics show that customer visits have increased dramatically with almost 2 million visits by UK customer per annum now being recorded to the WebCAPS site at www.grundfos.com.

Total Solutions Providers

I TOTAL EVAPORATION & DRYING SOLUTIONS

Anhydro Wins Major $18 Million Contract in South America nhydro, a global leader in A evaporation and drying equipment, has been awarded

plies the high quality raw materials.

an $18 million contract for a state-of-the-art 100 tonnes a day permeate powder production line for Arla Foods Ingredients SA (AFISA) in Argentina. Featuring water recycling, energy recovery, noise and emissions control, the new line is scheduled to go on stream in March, 2010, and highlights Anhydro’s expertise in the latest energy efficient and environmentallyfriendly processing technology.

Indeed environmental and sustainability issues were key to the choice of Anhydro for the project.

Adding Value to a By-product

Anhydro provides a full range of evaporation and drying equipment for the global dairy, food,

AFISA decided to extend its whey processing plant with a new powder processing line for production of various whey products including whey permeate. The new production line is designed to produce added-value whey and protein mix products, including the permeate by-product that results from production of high-value whey protein concentrate. The latter is achieved by converting the liquid permeate into a powder with better transport and storage attributes.

High-quality whey and permeate powders are used in a large variety of applications such as the bakery, confectionery, dairy, baby food, meat and fish processing industries, and are in high demand in South America.

The contract for the new plant will increase AFISA’s processing capacity by up to 100 tonnes of powder a day. It includes evaporation, crystallization, drying, an outlet air filtration system, and a CIP system. The whey and permeate powders from the new line will be non-caking, high-quality, food grade powder products.

industrial, pharmaceutical, and starch and ethanol industries.

Based in the small town of Portena, some 600 km north of Buenos Aires, AFISA is a joint venture between Arla Foods Ingredients of Denmark, which operates production facilities in 18 countries worldwide, and SanCor Cooperativas Unidas Limitada, a leading dairy processor in Argentina. Arla Foods Ingredients provides the technology and know-how for producing specialised milk-based ingredients, while SanCor sup36

Environmetal and Sustainability Issues

New Managing Director for Anhydro A/S Thomas Holst, 44, has been appointed managing director of Anhydro A/S. In addition to his new role as managing director of Anhydro A/S, Thomas Holst is also taking over the responsibility of the Anhydro EMEA Region. This is part of Anhydro’s new organisational structure – ‘One Global Company in 4 Regions’.

In this capacity, Thomas Holst also has responsibility for the Anhydro companies in Kassel/Germany, Paris/France and Tonbridge/UK. Along with the EMEA region, as well as offices in Moscow/ Thomas Holst is the new Russia and Warsaw/Poland and the agents managing director of in this region.

Anhydro A/S. Thomas Holst takes over responsibility from Allan Jorgensen, who will now concentrate on his role as chief executive of the Anhydro Group. Allan Jorgensen has until now held this position as well as that of managing director of Anhydro A/S. With the new management structure, Allan Jorgensen will focus on the future development of the group and especially implementing the new global strategy.

Before joining Anhydro Group in 2004 as managing director of Anhydro GmbH and later being promoted to vice president of Starch & Ethanol Europe, Thomas Holst had a long career with Alfa Laval in Germany, Sweden and UK.

“The new Anhydro energyoptimized dehumidification system also played an important role in our decision.”

The new plant will be delivered, installed and commissioned in co-operation with Anhydro’s local sales agent, Maarten Dirkzwager, and Anhydro’s local technical collaboration partner.

“We are looking forward to providing a technically highly advanced production platform for an important ingredient,

AFISA maintains very high environmental and sustainability standards. “One of our reasons for selecting Anhydro for this project was their innovative environmental protection and sustainability technologies including energy recovery, water recycling, waste water reduction, noise reduction, and emissions control,” ex-plains Bjarne Schack Pedersen, chief executive of AFISA. Anhydro’s test center at Soborg in Denmark.

FOOD & DRINK BUSINESS EUROPE, DECEMBER/JANUARY 2009

which is in high demand throughout the region,” says Anhydro regional sales manager Svend Erik Bojgaard.

Anhydro provides a full range of evaporation and drying equipment for the global dairy, food, industrial, pharmaceutical, and starch and ethanol industries. Focusing on flexibility and attentiveness to individual customer needs, Anhydro enables excellence at every point along the value chain as part of its commitment to customers’ success.

Anhydro acts as a strategic development partner for leading manufacturers all over the world.

Through close collaboration with customers, Anhydro promotes the development of innovative concepts and optimisation of existing processes, enabling customers to introduce new products into the market as quickly and as cost effectively as possible. J

Total Baking Solutions From Gouet-Baking Systems he Gouet-Baking Systems test bakery T within the Mecatherm baking centre near Strasbourg is unique within the global bakery industry. Equipped with four fully automatic production lines and bakery machines representative of each aspect of the Mecatherm product range, the 3,000 sq m modern facility provides the group’s industrial bakery customers with the perfect environment for testing the production of varied bakery products at industrial scale.

The equipment is constantly being enhanced to integrate the latest innovations in terms of dough make up, proofing, baking, cooling and freezing technologies.

Providing Solutions

For some clients who are not used to fully automatic lines, the facility will provide the opportunity to fully understand how they work, the function of each module, the ease with which the line can be operated, and the range of products it is capable of manufacturing. The baking centre allows the customer to examine each element of a particular production process in minute detail in a way not possible during a visit to a line in full production.

“It gives our clients the opportunity to check that we can achieve at least the same standard of quality and preferably a higher one for their products,” points out Jerome Dartiguenave of Gouet-Baking Systems. “It is very common to have clients producing large volumes of high quality products with an artisan process but who have problems in meeting the growing demands of their customers. They cannot simply double the number of people in the factory and they know that in any case they could not main-

A fully automatic line.

38

tain the same level of homogeneity and quality. They come to us to see if we can industrialize their process without loosing one inch of the quality which is responsible for their success.”

World Leader

Mecatherm is, of course, well known for developing, producing and installing ovens, machines and automated production lines – more than 500 lines installed - for industrial bakery products worldwide, whether fresh or frozen, fully baked or par-baked.

The testing facility backed by the group’s extensive R&D resources are placed at the disposal of industrial bakers as part of Mecatherm’s philosophy of developing close partnerships with its customers and providing total baking systems solutions.

Each customer’s project is unique.

Taking into account product and process type and production rate, Gouet-Baking Systems aims to provide the optimum solution.

“Besides our state-of-the-art crusty and artisan bread lines, which can bake on trays, earth or stone to produce high quality products at high capacity, we also offer the Double Action Oven for families of product such as puff pastry, tinbread, flat bread, buns, cakes, pastry and vegetables,” says Jerome Dartiguenave.

Double Action Ovens

Gouet-Baking Systems’ Double Action Ovens are highly flexible and suitable for baking which needs high temperatures up to 500°C (for products such as pizza and pita), bottom convection (homogenous transfer of heat to the tins), high convection for a higher heat transfer (vegetables where up to 60% humidity has to be removed), or top radiation (for products that need to rise in the oven, like puff pastry, buns etc). Alternatively the Double Action Ovens can offer a finely tuned combination of radiation and convection in order to achieve the optimal quality, for instance by letting the product rise and then transfer as much heat as possible to shorten baking time, reduce weight loss and keep softness.

The power and versatility of the Double Action Oven is illustrated in the following examples: * A Toast Bread without lid will be baked predominantly with radiation heat to avoid the appearance of a crust during the

rising stage that would split while the product is reaching its final size. However, a Toast Bread with lid will be baked with maximum top convection because as the product is protected by the lid, it is possible to accelerate the heat transfer without taking risk to damage the product. * A Lebanese Pocket Bread that is thin and splits in the middle will be baked with high convection in order to have a very fast baking time without drying the product in heart while achieving the pocket effect. A Greek pita with a crumb will be baked with a combination of radiation and convection in order not to create a crust that would prevent heat to find its way inside the product. * A Muffin will be baked with convection but a Madeleine with dome will need strong convection bottom heat to raise the dome and soft top radiation heat to avoid the creation of a crust.

“These are a few examples of what can be achieved with the use of a real size laboratory to work with the client on the very same equipment that he will have, so that he can validate and improve the quality of his products,” explains Jerome Dartiguenave.

“This is why we are always very happy to have industrial customers come to us and spend a full day working together with either their own ingredients and recipes or with ours. At the end of the day, whether it is a big artisan baker wishing to industrialize or a major food manufacturer with a big R&D staff, we always have the feeling that for both parties it was worth the time spent.” J

FOOD & DRINK BUSINESS EUROPE, DECEMBER/JANUARY 2009

Total Mixing Solutions From Silverson Machines or nearly 60 years Silverson Machines F has specialised in the design and manufacture of quality high shear mixers for processing and manufacturing industries worldwide. Supplying customers in over 150 countries, and serving industries as diverse as food, beverages, pharmaceuticals, cosmetics and petrochemicals, Silverson has become a world leader in the field of high shear mixing.

Indeed, food processors of all sizes and throughout the world now specify Silverson mixers as the ‘standard’ equipment for their manufacturing processes.

Silverson’s new UHS Range ultra-hygienic InLine mixers are the only mixers in the world to gain both 3A tpv and EHEDG Certification, offering the highest possible standards of hygienic

Key to Success

The key to Silverson’s success is based on the professionalism and commitment shown to each of its customer’s needs.

Whether supplying machines from its standard range of mixers or designing equipment specifically to meet an individual customer's requirements, quality is guaranteed.

With a customer base that includes many of the world’s largest companies, Silverson is constantly at the forefront of new technologies. Developing and applying new high shear mixing techniques to meet these needs, Silverson has the experience, knowledge and commitment to both quality and service to solve today’s mixing needs and those of the future.

A truly international company, Silverson is represented by a network of associated companies, distributors and agents in over 60 countries, serving Europe, North America, Asia, Australasia, South America and Africa.

40

Silverson high shear batch mixers will process from 4 to 30,000 litres.

and

enhanced

challenges faced by the food and beverage industry, Silverson’s experts will work with customers to ensure they get the right mixer for their specific use. Whether tackling customer concerns with reducing production times, process hygiene, powder/liquid mixing, producing stable emulsions, dissolving sugar, disintegrating solids, blending liquids of different viscosities or dispersing and hydrating gums, thickeners and stabilisers, Silverson prides itself on having the optimum mixing solution.

Food and Beverage Expertise

Silverson customers get more than just a mixer they get mixing solutions.

Silverson’s unmatched level of expertise is the result of nearly 60 years of experience helping thousands of companies meet their unique mixing requirements.

Well versed in the constantly changing mixing

construction

performance.

ers with integral anchor stirring and Silverson mixers.

“We have received excellent advice on the various attachments that can be fitted to the Silverson machines to achieve either disintegration, emulsification, homogenisation or pumping of sauce mixes. Silverson has always given us extremely good after sales service and has provided loan machines when our own machines were being refurbished.”

Fred Key continues: “As a business we have grown with the help of Silverson equipment. We now employ some fifty people with a turnover approaching £6 million. The excellent communication and close working relationship we have with Silverson has contributed to our efficiency as a manufacturer.”

Case in Point

UK-based sauces manufacturer MH Foods has been a loyal customer of Silverson Machines for the last thirty years. Currently operating from a modern factory in Slade Green, Kent, MH Foods was established in 1978 and was one of the first manufacturers of soy sauce in the UK. The company now produces a wide range of sauces, marinades and condiments.

“I started the business with very little money. The first investment we made was a Silverson mixer,” says Fred Key founder and managing director of MH Foods. Further Silverson machines were added as the food company grew, the most recent investment entailing steam jacket cook-

Silverson high shear in-line mixers will selfpump at throughputs from 15 to 200,000 litres/hour.

Extensive Range of Mixers

Silverson has an extensive range of high shear mixers available that are ideal for food applications. Unlike some other equipment suppliers, Silverson has the flexibility to custom design and build machines to meet exact customer specifications. So whether the application is tomato sauces, yoghurts, gravies, jams and preserves, or a host of others, Silverson can help each customer to mix it right the first time.

The Silverson range of high shear mixers ideal for food applications encompass: • Batch mixers; • In-line mixers; • Flashblend powder/liquid mixers; • Laboratory mixers; • Disintegrators; • Sanitary mixers.

FOOD & DRINK BUSINESS EUROPE, DECEMBER/JANUARY 2009

• Improved vessel hygiene; • Liquid/liquid mix.

Laboratory Mixers

The multifunctional L5M features touch screen control with digital tachometer, programmable integral timer and amperage display, all accessed via the Mode button.

Batch Mixers and In-line Mixers

Silverson high shear batch mixers and high shear in-line mixers do not simply mix - they emulsify, homogenise, solubilise, suspend, disperse and disintegrate solids. Each mixer, with its precision-engineered Silverson rotor/stator workhead, far outperforms conventional mixers, cutting processing times by up to 90%, improving quality, product consistency and process efficiency.

Silverson high shear batch mixers will process from 4 to 30,000 litres, while Silverson high shear in-line mixers will selfpump at throughputs from 15 to 200,000 litres/hour. Both the batch and in-line versions will: • Eliminate agglomerates and fish eyes; • Create stable emulsions and suspensions; • Reduce particle size; • Rapidly dissolve solids; • Accelerate reactions.

The latest development in high shear laboratory mixing – the new Silverson L5 Series – is ideal for all laboratory work, research and development, QA analysis and small scale production in all industries.

The L5 Series of laboratory mixers are suitable for the widest range of applications – mixing, emulsifying, homogenising, disintegrating and dissolving – with unmatched efficiency and flexibility. With a capacity from 1ml up to 12 litres and the ability to mix in-line with flow rates up to 20 litres/minute, they offer excellent reproducibility when scaling up to full-scale production and provide an accurate and easy means of forecasting the performance of larger Silverson machines under full-scale working conditions.

The multifunctional L5M features touch screen control with digital tachometer, programmable integral timer and amperage display, all accessed via the Mode button. This level of instrumentation is invaluable for applications where process validation and reproducibility are required.

Disintegrators

Silverson offers a range of options for disintegration of larger solids and applications such as confectionery reclaim, disintegration of solid blocks of cheese, butter, compressed raisins and dried fruit, oleoresins and frozen meat.

Silverson’s mighty Disintegrator 2500 mixing system will disintegrate, solubilise or disperse the largest of solids - up to 1 metre across - in a single operation, and in unbelievably quick times.

The Disintegrator 2500 incorporates a powerful and unique Silverson mixer located in the bottom of a custom-built vessel. The

For hygienic applications, Silverson offers a full range of mixing designs including Ultra-hygienic in-line mixers, Ultramix, Flashblend and Bottom Entry Mixers.

mixer exerts a massive suction downwards from the surface of the liquid, pulling down even the most buoyant of solids, no matter what the size. These solids are literally ripped apart and dispersed throughout the mix, and with the refinement of a Silverson in-line mixer included in the system, are totally solubilised or suspended.

For smaller solids, Silverson offers the Duplex Disintegrator/Dissolver, which, like the D2500 was specifically developed for the disintegration and solubilisation of solid rubbers and polymers for the lube oil and adhesive industries but has since been applied in a wide range of applications and industries such as food.

Flashblend Mixers

Ultra Hygienic Mixers

Dispersing powders into liquids and achieving a consistent homogeneous product, time after time, is one of the most difficult of all mixing applications. To satisfy this need Silverson has developed the Flashblend, a high shear system for rapid incorporation of a wide range of powders, including problematic gums and thickeners. The Flashblend is designed to incorporate powders on a continuous and semi-continuous basis at rates of up to 15,000 kilograms/hour. The system can handle a wide range of viscosities, from low viscosity products through to viscous gels.

Advantages include: • Suitable for large scale production; • Agglomerate-free product; • Repeatability; • Speed; • Minimum aeration;

For hygienic applications requiring cGMP, 3A, USDA or FDA compliance, Silverson offers a full range of mixing designs including Ultra-hygienic in-line mixers, Ultramix, Flashblend and Bottom Entry Mixers.

Silverson’s new UHS Range ultra-hygienic In-Line mixers are the only mixers in the world to gain both 3A tpv and EHEDG Certification, offering the highest possible standards of hygienic construction and enhanced performance.

A number of advanced features have been incorporated into the new design including interchangeable single or multistage rotor/stator arrangements as standard, resulting in substantially faster mixing times and finer particle size. The units also feature ultra hygienic EHEDG approved interchangeable single or double mechanical shaft seals. J

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Silverson has developed the Flashblend, a high shear system for rapid incorporation of a wide range of powders, including problematic gums and thickeners.

FOOD & DRINK BUSINESS EUROPE, DECEMBER/JANUARY 2009

PRODUCT HANDLING

Total Product Handling Solutions From Sigpack Systems art of Bosch Packaging P Technology, Sigpack Systems is a leading global supplier of product handling and packaging systems and the latest in robotic technology to the food, beverage and pharmaceutical industries.

Sigpack Systems does not merely supply units or machines, but entire product handling and packaging systems.

Its integrated systems take products directly from the production process, for example from ovens, cooling belts or spiral freezers, through the various primary and secondary packag18 Delta robots XR31 in compact washdown design at US ing stages, including case packcompany Bama. ing and palletising, if required, and into the warehouse.

The product handling systems offered by its associated Bosch Packaging Technology Sigpack Systems encompass: flow-wrap- companies do not design and manufacture ping, robotics, cartoning, tray loading and the equipment, the most appropriate traditional wrapping. Product handling sys- machines or modules for the particular tems can be customised to meet the precise function are sourced from other suppliers. requirements of customers.

“We can easily team up with another “We assist customers in taking their prod- machinery supplier so our customers can uct all the way from the production process benefit from our ability to install entire sysand through to the warehouse,” explains tems,” he adds.

Martin Tanner, director of marketing and The food and beverage industry accounts business development at Sigpack Systems. for about 75% of Sigpack Systems’ busiIn instances where Sigpack Systems and ness, with confectionery, biscuits and

snacks, coffee and instant beverages being the main areas of activity.

In addition to numbering the leading global players within each sector amongst its customer base, Sigpack Systems also supplies regional and national food and beverage companies which require high volume, high speed product handling and packaging systems.

One-stop-shop Approach “We offer a one-stop-shop approach. Our aim is to make our customers’ lives easier so bakery they can place one contract with us and we take care of the rest,” Martin Tanner remarks.

Sigpack Systems’ one-stop-shop offering to customers covers all aspects of bringing a product handling system project from design stage to fruition, including project management, complete engineering services and overseeing all installation and commissioning.

“When a customer buys a system from us, we provide a guaranteed line performance,” he explains. “We also take care of all the interfaces and make sure that our sub-suppliers perform to spec.”

I CASE STUDY Panel One: Delicate Product Handling and Packaging at Simmers of Edinburgh Sigpack Systems was the partner of choice for Scottish bakery company ensure no damage to the product.

Simmers of Edinburgh when it was installing a new manufacturing line The product then enters the ZZP4 magazine feeders, which sit next to dedicated to its traditional Nairn’s Oat Cake range. Sigpack Systems was the infeed chain of the HBM pillow pack wrappers. The products have to able to supply a line to delicately handle and be carefully stripped from a vertical stack by package these easily broken products. means of a flexible programmable counting The fragile, delicate oatcakes make high system, complete with intelligent lane balancdemands on a system when they need to be ing. transferred from the oven exit into an airtight, The column is additionally gently braked pillow pack wrap style. The oatcakes are packand held during the stripping operation, with aged in individual piles before being safely a smart ZZP base plate mechanism which delivered to secondary packaging. This funcreleases pressure on the individual biscuit durtion has to be carefully controlled to eliminate ing the stripping and pushing operation of any damage and breakage of the products. stack building in the wrapper chain. The HBM The oatcakes arrive 16 across the oven band, pillow pack wrapper groups each individual are gently reduced on a 2:1 reduction system stack in the chain and consistently provides and presented to two downstream packaging airtight packaging, which is vital as these machinery legs, each having four lanes. The products are susceptible to moisture during oatcakes are gently stacked into a vibratory Gavin Love, technical director of Simmers: “In transit to the consumer. system, which provides a small amount of accu- Sigpack Systems we see a company who are proud The system is also very flexible and formats mulation for downstream machine stoppages of their equipment and its performance and this is are easily changed by means of the touchand additionally provides individual pressure reflected in the build and quality of our machinery screen when changing between biscuit counts, control on the stacked columns of biscuits to on site.” with no change parts required.

FOOD & DRINK BUSINESS EUROPE, DECEMBER/JANUARY 2009

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PRODUCT HANDLING

The scale of the product handling and packaging projects undertaken by Sigpack Systems range in value from Eur300,000 to Eur15 million. Payback time for projects is typically between two and three years.

Recent Projects Recently completed projects

by Sigpack Systems include an 18-robot system installed at US bakery company Bama, which specialises in hand-held pies, biscuits and pizza crusts. The line incorFast and gentle placing of the apple pies at Bama. porates a state-of-the-art vision quality control system, which ensures that only products of exact ogy. The system incorporates a HSM pilquality are accepted from the process low-pack unit, followed by a HBM multiequipment before being accurately placed pack machine. Through close collaboration into cases. Each of Bama’s shock frozen with the customer, this part of the system is fruit pies are inspected for precise colour, capable of producing 860 packages per pattern, and dimensional shape. The sys- minute (PPM), greatly exceeding the contem distinguishes very subtle parameter dif- tractual agreement of 600 PPM using heat ferences and all product information is seal technology. The line, with 95 m/min communicated to each of the 18 robot speed of foil, is probably the quickest heat cells. The sophisticated product handling seal pillow-pack application in the world. and packaging system runs at a rate of The line was created for double bars (two 1,400 pies per minute. bars in one flow wrap) and wraps up to 930 Leading Swiss biscuit and ice cream man- bars (465 flow wraps) per minute. With a ufacturer Midor also uses vison-based robot speed of 130 m/min, the conveyor is one of technology devised by Sigpack Systems for the fastest created by Sigpack Systems. gentle handling of its delicate biscuits. The system is capable of handling more than Global Presence 800 biscuits per minute and 18 different As part of the Packaging Technology busiproduct varieties. ness of the global Bosch Group, Sigpack Spanish food company Natra, which Systems can offer a comprehensive worldmanufactures cocoa and chocolate derived wide service. About 50% of its business is products, is also using specially designed currently in Western Europe, 30% in Sigpack Systems product handling technol- North America and the balance split

between Eastern Europe/ Middle East and Asia.

However, this spread is changing and Sigpack Systems is well prepared to cater for customers as they shift their focus to the emerging market regions of the world.

“Most of our customers are true global players in the food industry. Besides the technology we provide, another major benefit for customers is our global reach, in terms of our international and worldwide sales network but even more importantly our service presence,” he points out.

Innovation Sigpack Systems has a strong track record of innovation, both in developing new product handling technology and new packaging formats. Sigpack Systems specialises in handling delicate products that may also be sticky or soft and which require special techniques (see Panel One). Indeed, Sigpack Systems has been to the fore in developing technologies for difficult to handle products and in meeting food industry demands for higher speed and higher throughput product handling and packaging systems.

The latest example of Sigpack Systems’ innovation on the packaging front is the Stickpack in a Pull Pack (see Panel Two).

Another recent packaging innovation is the Burgopack, which presents the product in an innovative sliding tray. While currently used primarily for the pharmaceutical industry, the Burgopak has potential applications within the food sector. J

I PACKAGING INNOVATION Panel Two: Innovative Solution Combines Stickpack and Pull Pack Packaging Sigpack Systems has developed an integrated packaging system for tea in sealed result and ensure product quality.

Stickpacks in partnership with German food service company The packaging combination is designed to replace the traditional tea Bistrozucker. The system produces the perforatbag with a modern lifestyle product that offers ed Stickpack as well as the secondary packagenhanced convenience to the consumer. In coing, in a Pull Pack or in a conventional Flow operation with Alcan Packaging the two compaWrap style. nies developed a ‘springback’ foil which springs The partnership between leading foil producback to a cylindrical form after filling. er Alcan Packaging and Bistrozucker resulted in The Stickpack filled with tea, also known as the combination of the perforated Stickpack tpod (tea portion of design), replaces the tradiand the Pull Pack, developed by Sigpack tional tea bag and is also used for stirring.

Systems. The Pull Pack packaging concept Further application possibilities for this conenables particularly fast and accurate opening cept include coffee and pharmaceutical prodfor clean dispensing. ucts.

The consumer holds the longer part of the Sigpack Systems developed the machine for product with one hand and pulls the seal fin of the production and filling of the perforated the shorter part with the other hand in the Stickpack, as well as the machine for the proopposite direction. Both packaging styles, Stickpack in Pull Pack – a combination of two duction of the secondary packaging of the Stickpack and Pull Pack, guarantee a flavour- innovative packaging styles. tpod.

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FOOD & DRINK BUSINESS EUROPE, DECEMBER/JANUARY 2009

Kosme UK Offers the Total Beverage Solution osme UK is a leading global machinery K equipment supplier to the beverage industry offering complete, flexible and cost efficient packaging solutions for all bottling lines. Kosme’s comprehensive range of turnkey filling, labelling, capping, packaging and conveying operations guarantee a total system approach which ensures a tailor made packaging solution to all customers’ requirements.

Kosme UK has seen its annual turnover rise dramatically since its inception in 2002, which is due to a culmination of excellent customer service coupled with its wide range of state-of-the-art bottling equipment.

Kosme has earned a name in the world of packaging. Its product range includes a vast number of systems for all requirements of technology, which range from medium-low to high capacity.

Working with customers, from comprehensive design to project management is integral to Kosme’s success. The company can now fully satisfy the most demanding of bottling requirements from a diverse equipment portfolio which includes stretch blow moulders, filling equipment, labelling machines, packaging and palletising systems and conveyor systems.

Bespoke Solutions Kosme has a strong, local UK presence and is able to undertake site evaluations to ensure clients’ needs are met and a bespoke solution is specified. Also this is the ideal time to optimise efficiency in the design phase of a bottling line. Using its expertise and knowledge Kosme can work with the client to clarify layout, ergonomics, traffic

An example of Kosme's modular labelling systems.

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Kosme’s ongoing high level of customer care and service gave us confidence to approach them again. The security of having an on-site engineer during the commissioning of the labeller and their ongoing UKbased servicing has given us the peace-of-mind we needed during a vital upgrade.”

Collaboration With Krones Based in Roverbella, Mantova, Italy, Kosme is an indepenOne of Kosme’s UK engineers on Britvic's Drench water dently run company that works bottling line. in close collaboration with its majority shareholder Krones, bottlenecks, equipment selection, automa- the world-wide market leading packaging tion and other possible issues before com- and bottling company. Through its missioning even begins. Kosme can identify research, development, manufacturing any production bottlenecks and install key facilities and synergy with Krones, Kosme equipment to improve production efficien- has increased its product offering to every cy. aspect of the bottling line, from the start to Kosme’s understanding of the bottling the finish product. industry means it has worked with some of Kosme machines are designed to process the biggest processors in the industry, glass, plastic and PET bottles and are ideal recently the company supplied a new for alcoholic products such as wine, spirits labeller to Britvic, to help production of and beer, as well as soft drinks and water. their new Drench spring water line. Britvic At the beginning of the line, Kosme offers project manager Max Collingwood had no custom blow moulding machines designed hesitation in choosing Kosme as he to the specific requirements of each cusexplains: “Kosme have supplied us a num- tomer. Furthermore, the company’s KSB ber of machines and when the need arose to stretch blow moulding machines have upgrade our water bottling line labeller we achieved a leading market position in the felt Kosme was an obvious choice, given PET bottle producing industry. The KSB the high standard of their service and Series represents a key step forward in the machines. Due to the urgent need and high design of complex beverage bottling plants, profile of the product line we also needed a field in which Kosme has extensive expeto be sure that the new machine could be rience in. delivered on time and within budget, so Fillers and Labellers Kosme has a wide range of fillers (from single machines to monoblocs, utilising simple rinsing or combined cycle, weight/volume fill, gas injection and capping) Kosme's fillers are an efficient solution to any requirements.

Kosme continues to produce cutting edge solutions for the labelling market. The company’s range of labellers are able to satisfy any application requirement by combining the most sophisticated models with high throughput (from 2,500 to 60,000 bph), top quality execution, low cost operation, minimal maintenance and complete ease of use.

There are over 60 basic models covering all the main labelling technologies, including cold glue, hot melt, self-adhesive and roll-fed.

FOOD & DRINK BUSINESS EUROPE, DECEMBER/JANUARY 2009

Kosme's new Flypack Shrinkwrapper.

Packaging Solutions Kosme maintains an understanding of the latest trends and developments that affect its customers. Kosme applies its knowledge and experience to design and develop cost effective packaging solutions that increase productivity and efficiency. One such example is Kosme’s modular labelling machines, which have the specific intention of appealing to production line managers providing them with ‘future-proof’ solutions. Planning the future of a production line in the longterm, with certainty, is a highly difficult task that can make decision makers think twice about investing in specific machinery.

When bottling, a combination of multiple neck, back and body labelling positions with either wet glue or self-adhesive labelling methods can easily be achieved with more versatility than conventional machines. Individual attachments can also be adapted, for multiple functions such as different label types, sizes and positions.

Kosme’s modular labelling system is particularly useful when production lines need to utilise a number of different product labels. Essentially one combination machine can perform the roles of several independent machines.

Flypack Shrink Wrapper Palletisers, depalletisers, case formers, cartoning machines, case sealers, wrappers and robots are additional key products that Kosme manufactures for companies both with medium-low output and with high throughput. Furthermore, Kosme continues to develop and invest, which is evident in the launch of its new high-speed end-ofline Flypack Shrink Wrapper to meet demand in response to the emergence of secondary packing as an important aspect of packaging lines.

The Kosme Flypack machine is ideal for 48

grouping together products, such as bottles, cans and glass jars in multi-packs, running at an impressive 45 packs per minute. It utilises separate product compacting, wrapper and heat-shrink units to unite already packed products together in a secondary pack. With its tray erector and layer pad inserter module, it can also handle trays.

The machine can easily cope with different formats of product including cylindrical, rectangular and square containers in glass, PET or aluminium.

invaluable as many bigger processors are finding out. Toby Heasman, brewery manager of Hall & Woodhouse which makes the famous Badger Beer brand, comments: “We are pleased with the work that Kosme did throughout the installation and commissioning of our labeller.

Also within the contract, we requested an after sales service. This was closely linked into training our operators and craftsmen

by Kosme technicians”.

Kosme continues to supply machines to a wide range of high profile production lines and producers and supplies updated machines to replace older Kosme equipment, on the strength that the originally supplied machines have proved to be reliable, efficient and cost effective. This is testament to the quality of engineering and after-sales support that the company continues to offer.

Through time, Kosme has maintained the essential features that established the company’s famous reputation over the years, custom solutions, high performance, highly reliability, and simplicity of use.

Richard Portman, managing director of Kosme UK has a clear vision for the future, one that continues the balance of retaining satisfied clients and promoting new products and services to a widening scope of potential customers.

Full National Service As processors are put under increasing pressure, more and more reliance is being put Complete Package onto packaging and processing machines, “Kosme UK offers the complete package, with many production houses running competitive price, durable, cutting-edge 24/7 to keep up with demand. Due to this technology, with a comprehensive back-up trend Kosme UK has also focused on offer- service to support every beverage packaging ing a full national service for maintenance, requirement,” Richard Portman comments. parts and spares for all past and present For further details on Kosme UK and its Kosme products. complete beverage solutions please phone Because Kosme UK works closely with 01283 523713 or visit the website at their engineering colleagues in Italy, Kosme www.kosme.co.uk J UK’s team all have extensive training and experience of the machines they work on and access to the very latest diagnostic and fault-finding equipment and software.

Kosme offers maintenance contracts to all customers, ensuring that a qualified engineer visits the customer either monthly or bi-monthly to identify if any parts need replacing ahead of time to prevent breakdown or downtime. Many companies benefit from this service as they use this time for the engineer to teach additional operators to use the Kosme machine.

PET bottles about to enter the Kosme labeller.

This ongoing training is

FOOD & DRINK BUSINESS EUROPE, DECEMBER/JANUARY 2009

MATERIALS HANDLING

‘The Buck Stops Here’ – Materials Handling, Chilling and Freezing Solutions at Odenberg Engineering are one of the premier turnkey “andWe solution providers of materials handling, conveying and chilling freezing systems in the world, and we work with our clients to find the best solutions,” says John Power, Odenberg’s manager for the customised solutions division.

“We work to deliver value with efficiently designed solutions, exactly what the customer needs to meet today’s tough production targets. That is simply what we do - a successful formula for both Odenberg and our clients and continues with a number of very large projects currently being delivered.”

Impressive Customer Base Having been in business for over 40 years, Odenberg has built up an impressive customer base with projects right across the globe from Australia and China to the US and Europe, with large and small companies alike. Food and drink processing and pharmaceutical companies, make up the majority of the client listing, particularly companies involved in the meat (pork and poultry) and dairy processing sectors.

Examples of current and recent projects are QPI Inc in Nebraska, USA and Newmarket Co-operative in Cork, Ireland.

Work at QPI QPI Inc (Quality Pork International) is unsurprisingly involved in pork production, so much so that it is one of the largest producers in North America. Looking to expand its capabilities and take advantage of productivity improvements the company engaged Odenberg in the design, implementation and turnkey delivery of a freezing facility to handle 500 tonnes per day of pork meat plus all conveying, automated palletising, wrapping and system SCADA control.

The QPI line under construction.

The new construction and equipment was to be developed alongside the existing plant with minimal disruption while day time temperatures dropped as low as -20C. So impressed was QPI with Odenberg’s performance, attention to detail and professionalism that the scope of supply was extended and effectively doubled to provide the complete turnkey package. Delivery on this multi-million project is on time and on budget for February 2009.

Newmarket Co-op Another turnkey project that has just been completed is at Newmarket Co-operative’s expansion in Cork. As part of a major multimillion expansion and to gain flexibility and productivity improvements, Newmarket wanted to automate its cheese block wrapping, cooling and handling process from its existing manual system. Due to site constraints it was not possible to place the new system adjacent to the cheese production area and as such an extensive conveying system to bring the blocks to the new cooler location and robot system to palletize the blocks was required.

Against a thorough, international tender process, Odenberg won the contract based on its past track record of total system integration and project responsibility.

Asked as to the success of the project, Bernard O’Connor, project leader for Newmarket Co-op. responds: ‘We chose Odenberg as the system supplier as they offered an excellent turnkey solution. The system handover was very smooth with milk volumes at 80% within two days and 100% within two weeks of final commissioning.

The design layout and equipment offered a very efficient solution.

We would rate the project as an example of how to make the transition from a manual to automatic production system. Operators were quick to take on the operation as the Odenberg team kept them in the loop during the installation and commissioning.’

3D design and simulation of the robotic handling system.

FOOD & DRINK BUSINESS EUROPE, DECEMBER/JANUARY 2009

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MATERIALS HANDLING

Key Issues extremely successful in this area with many hundreds of machines The project scope had a number of key issues which needed to be operating globally particularly in the potato, carrot and tomatoes satisfied in its integration: sectors. The key is that a very significant reduction in labour input • Be operator friendly – the solution and its interfaces should be of up to 80% whilst quality and overall productivity gains can be a intuitive and easy to use, with customer and product specific simply achieved using this technology. menus and auto set-ups.

• Perform a site analysis to identify areas and processes which could Steam Peeling Solutions be incorporated into the project scope at minimal cost but which The other division is Steam Peeling solutions, again for vegetable would produce clear operational and efficiency benefits for the processors. Odenberg is a market leader in this sector with the client. This includes existing site control systems may be inte- highest performance machines in their class. grated into the new equipment SCADA system.

• Non disruptive implementation - production at the plant should have minimal interruption despite the scale of the modifications.

This requires flexibility in hours of access and close liaising with the production department.

• Low cost of ownership – the solution should use best practice design and components to provide a robust, flexible system with easy access and low maintenance requirements.

• Future proof design – as much as possible to provide for future capacity. The backbone infrastructure, automatic cheese block frame, evaporator and shelving capability are sized for the future developments.

• Training and support - provide full hand over to and ownership acceptance from engineering, maintenance and operators in order Odenberg Peeling Line. to extract the full benefits from the system.

This is key to the usability success of the project. Odenberg has built a close relationship with the client and In both these division, Odenberg can boast some of the world’s offers full support capabilities. leading food processors and suppliers as satisfied and loyal clients Odenberg Engineering has over 150 employees and has sub- for over a quarter of a century. sidiaries and offices across the globe. In addition to the Customised Solutions Division, Odenberg has two other divisions.

Challenging Environment “Yes, it is a challenging environment but we have found that when our clients look to find greater efficiencies they turn to us. We have built our reputation quietly in providing a first class service throughout the process with the focus on delivering value and usability for both current and future customer needs,” says John Power.

Odenberg achieves this by focusing on the following areas: • Understanding clients’ needs.

• Being experts in its field.

• Deliver value to clients’ process.

• Engineer robust solutions.

• Use the company’s knowledge to engineer efficient/innovative solutions.

• Use the latest technology to improve efficiency.

It is certainly a challenging time for businesses operating in today’s unpredictable economic climate.

However, working with clients to deliver cost effective solutions and keeping to the budget will grow Odenberg’s business and its clients’ businesses into the future. J Titan Optical Sorter.

Optical Sorting Solutions The first, Optical Sorting designs and builds machines for the high capacity quality grading and foreign material removal in fruits and vegetables, both fresh and processed products. Odenberg has been 50

FOOD & DRINK BUSINESS EUROPE, DECEMBER/JANUARY 2009

High Oil Prices? A little Synergie Goes a Long Way ne of the UK's leading clean label O ingredients specialists Ulrick & Short has developed an exclusive fat replacer, which has proven to be an excellent cost effective alternative to vegetable oil or margarine. Synergie L526, a clean label tapioca

based starch, was developed for use in baked goods and can replace up to 25% of fat in muffins, sponges and cakes. This is approximately a third of the price of vegetable oil.

The new product comes in powder form and with no need to pre-hydrate, it can be combined with dry ingredients before water and other liquids are added to the mixture.

In addition to the significant cost saving benefits, Synergie L526 is helping the bakery industry overcome the growing pressures to reduce fat levels in line with FSA guidelines and supermarket traffic light systems. Synergie L526 is able to accomplish this without compromising on taste, texture or quality.

Ulrick & Short has a team of highly qualified food experts on hand to help integrate clean label ingredients into new foods and develop the finished products. The company's knowledgeable food technologists are available to give expert advice as well as deliver new ideas on the use of the

ingredients, according to Ulrick & Short.

As a fat replacer for vegetable oil or margarine, Synergie L526 complements Ulrick & Short’s Delyte range, which is used to replace butter in cakes and bakery fillings, and more recently the company has developed a product which can remove butter in ready meal sauces to give healthier nutritional profiles and reduce costs.

The development of these highly functional, clean label ingredients has been the perfect response to the increased cost of using butter and oil in food production, addresses the obesity crisis and meets the growing demand for added nutritional benefits.

Ulrick & Short has a broad range of innovative clean label ingredients, which include binders, emulsifiers, bakery glazes, fat replacers and phosphate alternatives.

For further information contact Ulrick & Short on Tel +44 (0)1977 620011 or visit www.ulrickandshort.com J

DD Williamson Pecan Deluxe Licking the Credit Launches Crunch Organic Burnt P Sugar in Europe D Williamson, Europe’s largest manuD facturer of caramel colour, has introduced its organic burnt sugar to the European market. Organic applications include flavourings, baked goods, dessert toppings, sauces, spirits, coffee drinks, cereals, and pet foods.

European food and beverage processors can use the new product for contributing flavour to applications that contain 70% to 100% certified organic agricultural ingredients. The Soil Association (SA) accepts DD Williamson’s certification by Quality Assurance International (QAI). The SA’s approval ensures the DD Williamson organic burnt sugar satisfies the requirements of SA organic standards, as well as European regulation (EEC) 2092/91. J 52

ecan Deluxe Candy (Europe), the UKbased food ingredients company, has invested heavily in new product development to meet the growing demands from its customers for new and unique ice cream sensations. Ice cream is still an affordable treat and Pecan Deluxe has successfully launched some credit crunching inclusions such as black pepper sponge and fruity melon bark.

The black pepper sponge gives a pleasant sharp, chewy tang with a hint of sweetness and a subtle spicy after taste, whilst melon bark adds a fragrant, fruity zest. Pecan Deluxe recommends that its customers combine these inclusions with vanilla ice cream and lemon sorbet to create an enchanting and indulgent luxury dessert.

Another of the company's latest offerings is called a mosquito bite cup - a rich melt in the mouth dark chocolate filled with treacly, fiery chilli syrup, which combined with refreshingly cool lemon lime sorbet, pro-

duces a sweet modern taste sensation.

As consumers continue to indulge in luxury ice cream, the pressure is on for ice cream producers to deliver innovative products, including the recently launched cookie dough. Pecan Deluxe is meeting this demand continually developing new flavours and textures. For further information contact Pecan Deluxe Candy (Europe) on Tel +44 (0)1977 681141 or visit www.pecandeluxe.com. J

FOOD & DRINK BUSINESS EUROPE, DECEMBER/JANUARY 2009