July 2010
TINE joins global elite
Food & Drink Business Website:
www.foodanddrinkbusiness.com
C o n t e n t s
- 45 R ESEARCH & D EVELOPMENT
- 3 N EWS B RIEF
Teagasc and UCC launch strategic alliance in Irish food research.
Business news from the UK and international markets.
- 3 B REWING & D ISTILLING Developments in the global alcoholic drinks sector.
- 4 M ERGERS & A CQUISITIONS
R EGULARS PAGE 3
Processing & Manufacturing . . . . . 16 & 48
Paul Bulcke, ce, Nestle.
Dairy Processing . . . . . . . . . . . . . . . . . . . . 16-18
P AGE 11
Hanne Refsholt, ce, TINE.
Bottling & Packaging . . . . . . . . . . . . 22-26
Coverage of British and international deals.
Weighing Solutions . . . . . . . . . . . . . . . . . . . . 25
- 11 C OVER S TORY
Information Technology. . . . . . . . . . . . . 27
TINE joins global elite.
- 21 D AIRY
Neil Kennedy, ce, Milk Link.
Control & Automation . . . . . . . . . . . . . . 29
- 13 & 15 N EWS B RIEF – D AIRY Developments in the international dairy industry.
PAGE 21
PAGE 4
Owen Killian, ce, Aryzta.
Solid performance by Milk Link.
Materials Handling . . . . . . . . . . . . . . . . 33 Materials & Ingredients . . . . . . . . . . . . . 37 Quality & Hygiene . . . . . . . . . . . . . . . . . 38
- 31 A LCOHOLIC B EVERAGES
Colour Measurement . . . . . . . . . . . . . . . . 38-40
PAGE 31
John Dunsmore, ce, C&C Group.
C&C Group strengthens cider-led drinks portfolio and sharpens focus
- 35 E NERGY E FFICIENCY
Managing Director: Colin Murphy Editor: Mike Rohan Sales Director: Ronan McGlade
Coca-Cola HBC Italia’s €22m cogeneration project.
Production Manager: Susan Doyle Production Assistant: Jackie Kinch
- 36 I NDUSTRY F OCUS
Advertising: Susan Doyle Senior Sales Executive: Paul Lees
PAGE 6
Bent Pultz Larsen, ce, Lantmannen Unibake.
Innovation and investment at heart of UK food and drink industry success.
GSK to launch Lucozade brand in the US.
TSL Projects completes new Jersey Dairy facility.
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- 36 B EVERAGES - 41 P ROJECT M ANAGEMENT
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Javed Ahmed, ce, Tate & Lyle.
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FOOD & DRINK BUSINESS EUROPE, JULY 2010
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N N E E W W S S Nestle Investing in Greenfield Factory in Russia Nestle Rossiya is investing SFr60m (Eur45m) in the construction of a greenfield factory in the Vyazniki district of Vladimir region (some 300 kilometers east of Moscow) to produce a wide range of culinary products under the Maggi brand. When the first phase of construction is completed in the third quarter of 2011, the new plant will produce more than 30,000 tons of Maggi products to meet the growing demand for these products in Russia and CIS countries. The state-of-the-art factory will create 500 new jobs. The development of the new factory is part of Nestle’s strategy to consolidate its production operations in Russia. Over the past 15 years, Nestle has build up a strong presence in Russia. The new plant will be the group’s 14th production site in Russia. With double-digit growth rates and sales of around SFr2b in 2009 in Russia, Nestle is market leader in coffee, chocolate, infant cereals and culinary products.
Paul Bulcke, chief executive of Nestle.
Improvement at Lossmaking Bernard Matthews UK turkey processor Bernard Matthews has reported a loss before tax, but after exceptional items, of £4m for the year ended January 3rd 2010 on turnover from continuing operations down slightly from £335.1m in 2008 to £330.5m. However, operating profit from continuing operations before exception-
al costs rose to £2.5m, from £0.9m in 2008, as initiatives to reduce operating costs continued to deliver significant savings in 2009. Exceptional cost of £2.5m (£0.9m in 2008) were incurred chiefly as a result of restructuring at the group’s Hungarian subsidiary. According to Noel Bartram, group chief executive of Bernard Matthews, the strategy to move towards profitable growth across the group has continued to bear fruit, with the core UK business showing encouraging results and early signs of improvement at the Hungarian subsidiary following the implementation of a restructuring and cost saving programme. Nevertheless, the Hungarian trading environment remains challenging. The group’s small German subsidiary, Bernard Matthews Oldenburg, has continued its steady improvement in both sales and profitability. “In the UK, we are two years into a four year strategy based on sustained investment while simultaneously reducing operating costs, which have delivered significant savings in 2009. Going forward, our focus will be on championing turkey as a healthy meat and advocating greater turkey consumption, whether that is through the Bernard Matthews Farms brand, retail customers’ own-label products, or food service,” explains Jeff Halliwell, UK managing director of Bernard Matthews. “We believe there is significant scope for growth, especially considering that consumption of turkey in the UK is half that of other European countries.” Since the year end, Bernard Matthews has completed the acquisition of Lincs Turkeys, an established turkey farmer, based in Lincolnshire, England, specialising in free range and fresh turkey products. Lincs Turkeys complements Bernard Matthews’ UK business and enhances its offering by building its freerange and fresh turkey capability, whilst also supporting the
B B R R II E E F F group’s long term growth plans.
expected to be ready for operation by mid 2011.
Real Good Food Company Expands Hayden's Bakeries
Jeff Halliwell, UK managing director of Bernard Matthews.
Lantmannen Unibake Continues UK Expansion International bakery group Lantmannen Unibake has completed the takeover of UK’s leading supplier of sweet and savoury pastries and specialty breads, Bakehouse, by acquiring the remaining shares in the company. To further consolidate its position in the UK market, Lantmannen Unibake plans to make a major investment in new UK production capacity. In May 2009, Lantmannen Unibake became the majority shareholder in Bakehouse. The acquisition continued Lantmannen Unibake’s investments in the UK, which is now the group’s biggest market. After firstly acquiring Eurobuns in 2008 and now Bakehouse, a natural next step in Lantmannen Unibake’s ambitious growth strategy is to set up new production capacity in the UK. “The UK is our biggest market, and the new bakery gives us a strong position with a complete production setup. It will bring us even closer to our UK customers and put us in the best possible position to meet the growing demand we are experiencing in the UK,” says Bent Pultz Larsen, chief executive of Lantmannen Unibake. When complete, the new bakery will house three state-ofthe-art production lines. The exact location of the bakery is yet to be decided, but it is
FOOD & DRINK BUSINESS EUROPE, JULY 2010
Hayden's Bakeries, a subsidiary of Real Good Food Company, the UK bakery, ingredient and sugar group, will create up to 150 new jobs over the next 2-3 years. Hayden’s has opened an additional 33,000 sq ft of capacity close to its current site in Devizes, Wiltshire. The expansion is part of the Hayden's management team’s strategic plan for the next three years. The strategy aims to double the current turnover within the plan period, to create a new distribution facility over the next 12 months and to modernise the manufacturing capability.
Peiter Totte, chairman of the Real Good Food Company.
Raisio Launches Benecol Bread in Romania Finnish food group Raisio has introduced Dobrogea Benecol, a cholesterol lowering bread, in the Romanian market. Launched by Raisio’s Romanian partner Doprogea Grup, Benecol bread is the first cholesterol-lowering foodstuff in Romania. The launch will not only open a new market for cholesterol-lowering foods in Romania but will also increase the awareness and visibility of the Benecol brand in Eastern Europe.
BREWING & DISTILLING Strong Performance From Fuller Smith & Turner Despite the challenging environment for the UK economy and 3
N N E E W W S S the drinks industry, British regional brewer and pub operator Fuller Smith & Turner increased revenues by 8% to £227.7m in the 52 weeks ended March 27th 2010 and adjusted profit before tax (excluding exceptional items) by 17% to £26.6m (2009: £22.8 million). Profit before tax was up 86% to £26.8m. The Fuller’s Beer Company performed well, with operating profit before exceptional items up by 7% to £8.9m. The company’s own beer sales, headed by the London Pride brand, grew in popularity with volumes up 2%, increased market share in the UK, and the export business continued to grow strongly
all UK beer market. The Cornwall-based group has reported a 20% increase in underlying profit to £9.0m for the year ended January 2nd 2010 on turnover up by £6.6m to a record £93.3m. Pre-tax profit advanced by £389,000 to £7.8m. Sales of draught ale rose by 18% and packaged ales jumped 29%. St Austell Brewery’s flagship brand, Tribute, increased sales by 22% and now accounts for 69% of total volume of 52,000 barrels. “This is the first time in the history of the company that we have sold more than 50,000 barrels and is an indication of how well our ales are received by customers throughout the country,” points out William Michelmore, chairman of St Austell Brewery.
Cognac Fortifies Remy Cointreau
James Douglas (left), finance director, and Michael Turner, chairman of .Fuller Smith & Turner.
Reprieve For British Brewery Strong sales of Budweiser lager have prompted Anheuser-Busch InBev to defer the planned closure of the Stag Brewery at Mortlake in South London. The brewery was scheduled to shut at the end of 2010 with the loss of 180 jobs as part of a £690m cost saving programme following the merger of InBev and AnheuserBusch. The position of the brewery will be reviewed in May 2011 but it will stay open until at least December 2011.
Record Year for St Austell Brewery St Austell Brewery, the English regional brewer, pub operator and drinks wholesaler, is continuing to increase sales of its cask ales and to outperform the over4
Helped by a strong performance from its cognac division, French drinks group Remy Cointreau has reported a 7.2% organic growth (2.2% on a published basis) in operating profit to Eur140m for the year ended March 31st 2010 on turnover of Eur807.8m, up by 12% organically (13.1% published). Group organic operating profit margin fell from 19.2% to 18.4%, primarily reflecting increased advertising and promotional investment. Net profit from continuing operations was Eur86.0m after tax, reflecting a more favourable tax rate than in the previous year, which was affected by the non-tax deductible capital loss incurred on disposing of the group’s shares in the Maxxium distribution joint venture. Within the cognac division, Remy Martin recorded a remarkable 28.2% growth in turnover to Eur405.7m, benefiting from significant price increases, distribution integration and an excellent performance by its premium cognacs, particularly in Asia which has become the brand’s leading export market. However, the champagne division, which is significantly export-oriented, was
B B R R II E E F F adversely affected by the international economic climate.
Molson Coors Enters Russian Beer Market With Coors Light Molson Coors Brewing Company, the North American beer group, has launched the Coors Light brand in Russia. With consumption per capita at around 71 litres and a market size of approximately 100m hectolitres in 2009, Russia is the fourth largest beer market in the world by volume and has seen significant growth in beer sales in the past decade. International premium brands that are locally produced, in particular, have grown in popularity in Russia and despite this year’s decline due to new taxes, the category shows signs of even greater growth potential in the coming years.
MERGERS &
ACQUISITIONS
Aryzta Makes Strategic Acquisitions Worth $1.08b Switzerland-based speciality bakery group Aryzta has made two strategic acquisitions to significantly strengthen its position in Europe, North America and in other international markets. Aryzta has acquired Fresh Start Bakeries (incorporating Pennant Food and Sweet Life) and Great Kitchens for $900m and $180m respectively. Operating 29 specialist production facilities across the US, Canada, Germany, Poland, Sweden, Spain, Brazil, Australia and New Zealand along with joint ventures located in North America, Chile and Guatemala, .Fresh Start Bakeries is a global supplier of speciality bakery products with a leading position in the Quick Service Restaurant (QSR) segment. Pennant Foods is a leading provider of speciality bakery products and solutions to the North American QSR, food service and retail in-store-bakery channels. Sweet Life is a leading innovator and manufacturer of
FOOD & DRINK BUSINESS EUROPE, JULY 2010
sweet baked goods servicing the North American and Asian QSR channel. Great Kitchens is a leading supplier of pizza and appetisers with a focus on the deli segment of the North American retail grocery channel. The combined revenue of the businesses being acquired is $1.03b, with associated EBITDA of $133m. The acquisitions double Aryzta’s manufactured volumes and permit greater access to a broader customer base within the expanding QSR and retail segments. Moreover, they also provide Aryzta with a more balanced exposure to its core markets of North America and Europe, while extending its geographical footprint in rapidly expanding developing markets. “From a business perspective we will operate with a greater geographic footprint and with much better channel access to consumers. These acquisitions double our manufactured volumes with an additional 30 production locations in nine countries,” says Owen Killian, chief executive of Aryzta. In Europe Aryzta has a mixture of business to business and consumer brands, including Hiestand, Cuisine de France, Delice de France and Coup de Pates.
Owen Killian, chief executive of Aryzta.
Emmi Strengthens Position in Swiss Cheese Emmi has consolidated its position within the Swiss cheese market following approval of its proposed acquisition of Fromalp by the competition authority.
N N E E W W S S Fromalp, which specialises in the manufacture and distribution of typical Swiss cheese products, employed 150 people in 2009 and generated sales of approximately SFr100m (Eur70m), with exports accounting for 40%. Emmi expects that the integration of the Fromalp business will increase efficiency and reduce costs. This will give Emmi greater financial leeway to strengthen its standing within the liberalised domestic cheese market and to boost its sales abroad.
Vandemoortele to Extend Margarines and Fats Business Belgium-based Vande-moortele Group, which specialises in the production of frozen bakery products and margarines and fats, is acquiring the margarine and frying fats activities of Dutch company Van Dijk Food Products, part of the EFS Group, for an undisclosed sum. Located in Zeewolde, the margarine and frying fats business of Van Dijk Food Products, achieved a turnover of about Eur138m in 2009 and employed 145 people. Group Vandemoortele has 5000 employees and a turnover of Eur1.1b, of which Eur450m is generated by margarines and fats. The acquisition is subject to approval by the competition authorities.
Newly Weds Foods Strengthens International Business With Acquisition of Witwood Food Products US-based Newly Weds Foods, the producer of food coatings, seasonings and functional ingredients for the food processing and food service industries, has acquired Witwood Food Products, the UK’s largest independent food ingredients business, for an undisclosed sum. Witwood Food Products produces food coatings from production sites in the UK, Australia and Thailand. Its customer base comprises the frozen 6
and chilled value added food markets worldwide.
Coca-Cola Hellenic to Take Full Control of Serbian Operation Coca-Cola Hellenic Bottling is purchasing all shares in CocaCola HBC Serbia that it does not currently own for Eur16.9m. Coca-Cola Hellenic indirectly controls 89.1% of the shares of Coca-Cola HBC Serbia.
Heineken Disposes of UK Drinks Wholesale Business Heineken has sold Waverley TBS, its loss-making UK wholesale drinks subsidiary, to private equity firm Mansfield Partners for an undisclosed sum. Heineken took over Waverley following its joint £7.8b acquisition with Carlsberg of Scottish & Newcastle in 2008.
Ardo Acquires Ploegmakers Food Ingredients Ardo Group, the Belgium-based frozen fruit and vegetables producer, has acquired Dutch company Ploegmakers Food Ingredients for an undisclosed price. Established in 1963, Ploegmakers Food Ingredients specialises in processing vegetables, herbs, potatoes and fruit. Its products are supplied as fresh-frozen or refrigerated semimanufactured products to be used in soups, sauces, snacks, ready meals, salads, bakery products and baby food.
Lantmannen Unibake Continues International Expansion With Hungarian Acquisition In line with its international expansion strategy, Lantmannen Unibake, which is one of Europe’s leading frozen bakery products suppliers, is acquiring a new fast food bakery from Hungarian milling and bakery group Elso Pesti for an undisclosed fee. The acquisition of new production capacity in Hungary strengthens the Danish bakery group’s position in the Central European market.
B B R R II E E F F “We want to follow our international customers into the Central and Eastern European market and with production in Russia, Poland and now Hungary we have the best possible set-up for matching our customers’ needs and demands for the future,” explains Bent Pultz Larsen, chief executive of Lantmannen Unibake. The new Hungarian bakery also secures Lantmannen Unibake a solid production platform and direct access to a wellestablished sales and distribution network throughout the region. “With its location in the Central European region, the Hungarian market has a remarkable potential for future growth both in existing as well as new and unexploited sales channels,” he adds. The deal marks Lantmannen Unibake’s fifth major investment in expanding its international presence since 2008. In February 2008, it acquired Baco Oy, the largest fast food bakery in Finland, as a step toward expanding its market share in the Baltics and Russia. In April 2008, the company took its first steps toward establishing itself as a major player in the American bread market with its acquisition of Euro-Bake, one of the Southeast’s premier artisan bakeries, a 200-person bakery specialising in European inspired bread types. In June 2008, Lantmannen Unibake acquired production capability in the UK for the first time with the purchase of Eurobuns, a leading bakery just outside London. The acquisition opened the door to the frozen bread market in the UK, of which Eurobuns at the time controlled around 50%. In May 2009, Lantmannen Unibake became the majority shareholder in Bakehouse, the UK’s leading supplier of sweet and savoury pastries and speciality breads. The purchase continued Lantmannen Unibake’s massive investments in the British market making it the group’s biggest market. Including the Hungarian bak-
FOOD & DRINK BUSINESS EUROPE, JULY 2010
ery, Lantmannen Unibake now has 86 bakery lines in 26 bakeries in 11 countries. It employs 4,000 people and has an annual turnover of Eur727m.
Bent Pultz Larsen, chief executive of Lantmannen Unibake.
R&R Ice Cream Increases Presence in Mainland Europe R&R Ice Cream, with operations in the UK and Germany, is expanding its international business with the proposed acquisition of Rolland, the third largest ice cream manufacturer in France, for an undisclosed sum. Producing private label, branded and licensed products, Rolland produces about 65m litres of ice cream a year with roughly 25% exported to more than 20 countries. The acquisition, if approved by the French competition authority, would create the second largest ice cream group in terms of supermarket sales in the UK, Germany and France. The combined business would have annual sales of over 500m litres of ice cream. “This acquisition marks an important stage in our strategy to grow our company on mainland Europe. The ice cream manufacturing sector continues to consolidate. This period of consolidation within the industry will also result in further growth opportunities and I fully expect to be announcing more acquisitions soon,” explains James Lambert, chief executive of R&R Ice Cream. R&R Ice Cream was created following the £180m acquisition
N N E E W W S S of UK-based Richmond Ice Cream by US investment company Oaktree Capital in 2006 and its subsequent merger with Roncadin, the largest own label ice cream manufacturer in Germany.
includes Kandia-Excelent brands (Rom, Magura, Kandia, Laura, Sugus and Silvana and others), related trademarks and the manufacturing facility in Bucharest
Private Equity Group Grabs Plum Baby Darwin Private Equity has completed the acquisition of UK organic baby food business Plum Baby for £10m. Launched in 2006 by Susie Willis, Plum has pioneered the premium baby food sector in the UK and is on track to achieve retail turnover of £15m in 2010. The acquisition by Darwin comes at a critical point in the development of Plum as the business is transitioning from an early stage entrepreneurial operation into a professional consumer branded business.
Kraft Foods Sells Cadbury Businesses in Poland and Romania Kraft Foods is selling Cadbury’s E Wedel branded chocolate and sugar confectionery operations in Poland to Lotte Group of Tokyo for an undisclosed sum. The sale, which is subject to customary regulatory approvals, includes the E Wedel business, its related brands and a manufacturing facility in Warsaw. Approximately 1,000 Cadbury Wedel employees will transfer to Lotte Group. Kraft Foods will keep the remaining Cadbury business in Poland, including the Halls brand and other non-E. Wedelbranded chocolate and sugar confectionery products sold in Poland and two manufacturing plants in Skarbimierz. Subject to approval by the European Commission, Kraft Foods will also retain a third Cadbury plant in Bielany Wroclawskie, Poland. Kraft Foods is also selling its Cadbury’s Kandia-Excelent chocolate, soft cake and sugar confectionery business in Romania to Oryxa Capital, an international investment fund, for an undisclosed sum. The sale 8
Irene Rosenfeld, chairman and chief executive of Kraft Foods.
Heinz Continues Drive into Emerging Markets With Expansion in China HJ Heinz is acquiring Foodstar, a leading manufacturer of soy sauces and fermented bean curd in China, from Transpac Industrial Holdings, a private equity firm. The acquisition will increase Heinz's annual sales in China to about $300m and enable the group to enter the nation's fast-growing $2b retail soy sauce market. The purchase price consists of a cash payment at closing of $165m and an earn-out potentially payable in 2014 based on the performance of the business. The completion of the proposed acquisition is subject to regulatory approval in China.
Danone and Unimilk to Create Leading Dairy Business in Russia and the CIS Global food giant Danone is to merge its fresh dairy products business in the CIS area with Unimilk, Russia’s second largest manufacturer of dairy products and baby food. Established in 2002, Unimilk operates 28 production plants in Russia, Ukraine and Belarus and has 14,000 employees. Unimilk’s sales in 2009 amounted to Eur1b (up 7% on 2008). Spanning operations in
B B R R II E E F F Russia, Ukraine, Kazakhstan and Belarus, the merger covers all dairy products. It will make Danone-Unimilk the leader for dairy products in the CIS area as a whole, and particularly in Russia, where it will account for around 21% of the total market and hold strong positions in high-value, high growth segments. The new entity will generate annual sales of approximately Eur1.5 billion and employ over 18,000 people. It will be chaired by Andrey Beskhmelnitsky, current chief executive of Unimilk, while Filip Kegels, current general manager of Danone Fresh Dairy Products in Eastern Europe and Central Asia, will take charge of operational management. The two businesses are highly complementary: In terms of geographical presence, Danone operates mainly in western Russia, while Unimilk has a higher profile to the east. The product ranges are also complementary with Danone’s strength in the value-added health segment enhancing Unimilk’s strong positions and powerful brands in core markets. Danone will control 57.5% interest in the new entity, while the current shareholders of Unimilk will hold 42.5%. “Almost 20 years after taking our first steps in Russia, Danone-Unimilk represents a strategic move for Danone in a region which is offering a promise of growth in the years ahead, and where we will be pursuing ambitious goals for the future,” says Franck Riboud, chairman and chief executive of Danone. “It is also an important new step in Danone’s drive to extend business into new geographical markets.” The transaction is subject to regulatory approvals in the countries concerned. Closing is currently expected to take place towards the end of 2010.
FOOD & DRINK BUSINESS EUROPE, JULY 2010
Franck Riboud, chairman and chief executive of Danone.
Hain Celestial Acquires Churchill Foods US-based natural and organic products company Hain Celestial Group has acquired Churchill Food Products, a manufacturer and distributor of food-to-go products in the UK, for an undisclosed sum. Located in Nottingham, Churchill's production is expected to complement Hain Celestial's existing Daily Bread brand. The acquisition is part of Hain Celestial’s plan to return to profitability in the UK, which is expected to occur in its 2011 financial year.
Atlantic Grupa Expands With Slovenian Acquisition Atlantic Grupa, the largest food and healthcare company in Croatia, is acquiring Slovenian food manufacturer Droga Kolinska from energy, tourism and food group Istrabenz. In addition to Slovenia, Droga also has production units in Croatia, Serbia and Bosnia. The purchase price is Eur382m but will be reduced by Droga’s net debt, which was not disclosed.
William Grant Completes €300m Irish Acquisition Independent Scottish distiller, William Grant & Sons, has completed the acquisition of C&C’s spirits and liqueurs business for Eur300m. The deal gives William Grant ownership of a portfolio of Irish spirits and liqueur brands, including Tullamore Dew Irish whiskey, Carolans, Frangelico and Irish Mist. The newly acquired business
N N E E W W S S will operate as William Grant & Sons Irish Brands with immediate effect and a total of 63 employees plus other support from C&C will join the new company including 42 employees from Clonmel and 15 from Dublin. As a result of the deal, Tullamore Dew, which at 600,000 cases is the world’s second largest Irish whiskey brand, will become William Grant & Sons’ sixth core brand in a portfolio which also includes Glenfiddich and The Balvenie single malt Scotch whiskies, Grant’s Scotch whisky, Hendrick’s gin and Sailor Jerry spiced rum. “This acquisition provides us with a complementary portfolio of brands and a unique opportunity to accelerate our growth in non-Scotch and enter the dynamic Irish whiskey category,” comments Stella David, chief executive of William Grant & Sons. “We shall invest significantly in the Irish operations and are committed to building a strong business in Ireland and to maintaining and developing current operations in Clonmel.”
Stella David, chief executive of William Grant & Sons.
Tate & Lyle Disposes of EU Sugar Operations For £211m Tate & Lyle is selling its EU sugar refining operations to American Sugar Refining, the largest cane sugar refiner in North America, for £211m in cash. The deal reflects the change in development strategy adopted by Javed Ahmed, the new chief
executive of Tate & Lyle. EU S consists of the cane sugar refineries in London, UK, and Lisbon, Portugal, the Lyle’s Golden Syrup factory in London, the associated sugar and syrup brands and the Tate & Lyle Process Technology consulting business. In the year ended 31st March 2010, these businesses had external sales of £689m and made an adjusted operating profit of £14m (after transitional aid of £17m), and had gross assets of £374m at 31st March 2010. The sale excludes historic UK pension assets and liabilities and is expected to give rise to a book loss on disposal, before costs, of approximately £55m, subject to exchange rate movements and the timing of completion. In May, Tate & Lyle announced its clear intentions to ‘focus, fix and grow’ its business. The sale of the EU sugar operations is intended to achieve a more focused, less volatile business, and a solid platform to deliver sustainable long-term growth in Tate & Lyle’s speciality food ingredients business, supported by cash generated from its bulk ingredients activities. Tate & Lyle is also looking to sell the remaining businesses within its sugars division, principally Molasses and Vietnamese sugar. “Tate & Lyle’s clear priority is to grow its speciality food ingredients business, supported by cash generated from bulk ingredients. This disposal will enable us to concentrate our resources on delivering our strategic objectives as we focus, fix and grow our business,” says Javed Ahmed, chief executive of Tate & Lyle. The acquisition marks the third large-scale transaction between the two companies. ASR purchased Tate & Lyle North American Sugars (Domino Sugar) and its three refineries in 2001. More recently, ASR acquired Tate & Lyle Canada. (Redpath Sugar) in 2007, which included Canada’s largest refinery. ASR’s expertise lies in the operation of cane sugar refineries and the logistics of the related supply
B B R R II E E F F chain as well as the marketing of recognised retail sugar brands.
Javed Ahmed, chief executive of Tate & Lyle.
CEDC Withdraws From Ukrainian Vodka Acquisition Warsaw-based Central European Distribution Corporation (CEDC), the world’s largest vodka producer with annual sales exceeding 270m litres, has decided not to pursue an acquisition of Nemiroff, the Ukrainian vodka producer. Nemiroff is the world’s third biggest vodka company in terms of sales, and is estimated to be worth more than $300m. In addition to CEDC, other parties reported to be interested in Nemiroff include Russian Alcohol Group, Brown-Forman, Pernod Ricard and Stock Spirits of Poland. Founded in 1992, Nemiroff saw its net sales fall 14% in 2009 to $217.6m and net profit by 50% to $38.3m with debt standing at $10.5m.
Cott Extends Private Label Beverages Leadership With $500m Acquisition Cott Corporation, the world’s largest retailer brand soft drinks company, is acquiring Cliffstar Corporation, the leading private label manufacturer of shelf stable juices, for a cash consideration of $500m. Founded in 1970, New Yorkbased Cliffstar is one of the leading suppliers of private label beverages and the largest private label producer of apple juice, grape juice, cranberry juice and juiceblends in North America. With revenues of $654m, Cliffstar operates eleven facilities in the US and has approximately 1,200 employees.
FOOD & DRINK BUSINESS EUROPE, JULY 2010
Cott has identified cost synergies of $20m on an annualised basis from the deal, of which $14m are expected to be realised in 2011. The combined business has pro forma annual revenue of $1.8b in North America and $2.3b globally with adjusted EBITDA of $246m. Employing about 2,800 people, Cott operates bottling facilities in the US, Canada, the UK and Mexico. Cott markets nonalcoholic beverage concentrates in over 50 countries around the world.
Sara Lee Refocusing Continues With €320m Disposal US-based food, household and body care products group Sara Lee has completed the sale of its air care operation to Procter & Gamble for Eur320m. The deal is part of the disposal of Sara Lee’s household and body care business as it seeks to refocus on its global food and beverage activities. To date, Sara Lee has completed the sale of its 51% stake in its Godrej Sara Lee joint venture to Godrej Consumer Products for a total consideration of Eur185m. In addition, Sara Lee expects to close the sales of its global body care and European detergents businesses to Unilever and its remaining insecticides business to SC Johnson by the end of 2010. This will leave Sara Lee focused on five businesses - North American Fresh Bakery, North American Retail, North American Foodservice, International Beverage and International Bakery.
Brenda Barnes, chairman and chief executive of Sara Lee.
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COVER STORY
TINE Joins Gobal Elite Following a solid financial performance in 2009, TINE of Norway, which celebrates its 130th anniversary next year, has become one of the top 20 dairy groups in the world and one of the ten leading European players. ith a turnover of NOK18.9 export markets. TINE’s goal is to be the billion (Eur2.4 billion) last preeminent specialty cheese brand leader year and employing more in selected international markets. than 5,600 people, TINE is More than 23,000 tonnes of Jarlsberg Norway’s biggest producer and are consumed worldwide each year. exporter of dairy products and also the Indeed, Jarlsberg is the third largest country’s largest food manufacturer. As export product from Norway. TINE’s a co-operative, TINE is owned by other export brands include Ski Queen, 15,000 dairy farmers who annually Nokkelost, Normanna, Graddost, supply it with 1.4 billion litres of cow’s Snofrisk, Norvegia and Ridder. milk and about 19 million litres of goat’s milk. Evolution Comprising five regional dairy comThe co-operative derives its name from panies, TINE operates 44 dairy plants, the ‘tine’ (pronounced teeneh), a tradifive milk terminals and eight other Hanne Refsholt, chief executive of TINE. tional Norwegian wooden container for food and beverage production plants. keeping butter and cheese fresh. Within Norway, TINE supplies about 500 different products ranging TINE can trace its roots to 1656, when the first dairy co-operative from various types of milk and butter, almost 70 different cheeses to in Norway and Northern Europe was founded with 40 members and yoghurts, sauces, puddings and flavoured milks. TINE places great consisted of a dairy building and a cowshed for 100 cows. In 1881, emphasis on new product development and continuous innovation, due to the increase in dairy farming, the first nationwide co-operative adding approximately 50 new product lines annually. Den Norske Meieriforening (the Norwegian Dairy Association) was TINE also incorporates several wholly owned and partially owned formed. The forerunner of the current TINE business was established subsidiaries. To supplement it dairy portfolio, TINE also manufactures in 1928 with the aim of organising the export of Norwegian dairy other products such as juice and ice cream. The group has subsidiaries products. in Sweden, Denmark, England and the US. Development Strategy International Markets Because TINE is a relatively small player in the international dairy TINE has been steadily expanding its export sales since the start of the market, it concentrates on the premium segment. A key step in 1960s. The Norwegian cheese Jarlsberg accounts for over 80% of its TINE’s recent international expansion was its acquisition of UK-based total exports. Available in many markets globally, Jarlsberg is now the dairy business Ilchester Cheese Company in autumn 2008. most sold foreign cheese in the US and Australia - the brand’s largest The leading producer of blended cheese in the UK market, Ilchester Cheese Company has a broad range of added value cheeses in a variety of formats, and is well established in the retail sector. It has also develRabobank’s Global Dairy Top 20 oped an extensive export business, selling cheese to 25 countries. Of its £25 million turnover at the time of the acquisition, about 25% was Company Country Dairy Turnover (Eur) from international markets. 1 Nestle Switzerland 18.55b The acquisition is part of TINE’s export development strategy of 2 Danone France 10.60b focusing on selected international markets, where Jarlsberg and its 3 Lactalis France 9.09b 4 FrieslandCampina Netherlands 8.01b other speciality cheeses have growth potential.
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5 Fonterra New Zealand 6 Dean Foods US 7 Arla Foods Denmark/Sweden 8 Dairy Farmers of America US 9 Kraft Foods US 10 Unilever Netherlands/UK 11 Meiji Dairies Japan 12 Saputo Canada 13 Parmalat Italy 14 Morinaga Milk Industry Japan 15 Bongrain France 16 Mengniu China 17 Yili China 18 Land O’Lakes US 19 Bel France 20 Tine Norway Source: Rabobank 2010.
7.28b 7.00b 6.19b 5.82b 4.88b 4.57b 3.69b 3.56b 3.53b 3.46b 3.28b 2.69b 2.53b 2.31b 2.22b 2.17b
Financial Performance A tight focus on costs and the ability to improve efficiency and streamline its operations in response to intensifying competition in its home market allowed TINE to perform solidly during its 2009 financial year. The Oslo-based company increased turnover by NOK1.2 billion to NOK18.9 billion and profit before tax by NOK335 million to NOK 848 million. TINE ’s operating income in 2009 amounted to NOK911 million, an increase of NOK291 million on 2008. The improvement was largely due to a combination of good cost control and increased sales of higher margin dairy products in conjunction with a reduction in those of lower profitability. A rise in sales of yoghurt and fresh milk were the two main reasons for the better performance on the home market, although non-dairy drinks showed a slight reduction. TINE's domestic dairy operations achieved an operating income of NOK977 million
FOOD & DRINK BUSINESS EUROPE, JULY 2010
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last year, although other activities were loss making. “Quality, efficiency and productivity are closely connected and can be applied to everything we do and stand for. This is very important if we are to reach our objectives, whether it concerns the products we make or the TINE is Norway’s biggest producer and work processes we use. We exporter of dairy products and also the stand out because we are country’s largest food manufacturer. good, and we are good because we focus on quality in all stages,” points out Hanne Refsholt, chief executive of TINE. TINE’s international dairy business grew significantly in 2009, with operating income reaching NOK43 million, reflecting a contribution from Ilchester Cheese Company, which has since been merged with TINE’s other operations in England. The American and Swedish cheese businesses also made solid profit contributions. Jarlsberg continues to be popular in the US market and this trend is likely to continue in the current year and the brand is also expected to benefit from better access to the UK market following the Ilchester Cheese acquisition. Innovation Despite intensifying competition from other national food manufacturers and retailer own brands, TINE strengthened its brand portfolio in 2009 by launching several new products and by re-launching some others to meet the growing consumer demand for natural and healthy products. For example, last year the Norwegian dairy group launched TINE Engfrish, a new lower fat white cheese, and Tine Yoghurt Ja, which has a maximum of 3% sugar and no artificial sweeteners and is the first
N N E E W W S S Austrian Dairy Merger Austria’s largest and fourth biggest dairy groups, Berglandmilch and Tirol Milch respectively, are planning to merge. The deal is subject to agreement by the two companies’ 16,000 dairy farmer members and approval by the competition authority.
German Dairy Merger Moves Closer Nordmilch, Germany’s largest dairy group, is close to merging with fellow co-operative Humana Milchindustrie. The two German dairy co-operatives have already bundled their sales activities together to form Nord-Contor Milch. The boards of management and supervisory boards of Nordmilch and Humana Milchindustrie have now proposed a full merger. However, the proposal requires the consent of the members of both cooperatives and of the German Federal Cartel Office. The representatives of the co-operatives’ farmer members will be
yoghurt in Norway to carry the Keyhole symbol. TINE also launched Norway’s first lactose-free milk Investment in Enhanced Efficiency and Flexibility TINE is investing heavily to streamline its business and to improve efficiency. “Changes take place fast, and if we look around us today, the picture is a completely different one than from just a few years ago. We must work continuously to strengthen TINE ’s competitiveness, so that we are solid and have the necessary muscle to meet an increasingly challenging present and future,” says Hanne Refsholt. TINE is currently spending up to NOK1.4 billion in building a new dairy at Jaeren, which will be among the Nordic countries’ most modern, environmentally-friendly and future oriented dairies. Due to be completed in the autumn of 2011, the new plant will replace four other dairies. Environmental considerations have been taken into account in designing the Jaeren plant, which will feature reduced energy consumption and CO2 emissions. Energy consumption is expected to be reduced by 34% and CO2 emissions by 38% compared to the four existing plants. “In TINE ’s important environmental work, we have set a goal to reduce CO2 emissions by 30 per cent by 2020. It will be demanding and binding, but this work is also an important part of the quality delivered by TINE,” TINE of Norway has become one of she says. The Jaeren plant will the top 20 dairy groups in the world,
B B R R II E E F F
informed of the merger details at their annual assemblies and the final decision will then be passed at extraordinary assemblies no later than the end of the year. “A comparison of the development of the dairy industry in Germany with that in neighbouring European countries clearly reveals that Germany needs further consolidation to survive in international competition in the long term,” says Dr Josef Schwaiger, chief executive of Nordmilch.
Dr Josef Schwaiger, chief executive of Nordmilch.
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D D A A II R R Y Y
The Kerrygold Company and North Downs Dairy to Merge The Kerrygold Company and North Downs Dairy, both wholly owned British subsidiaries of the Irish Dairy Board, are merging to create one consumer foods business, Adams Foods. This will take effect from 3rd October 2010. The new company will combine the marketing capability of both organisations to grow the Kerrygold and Pilgrims Choice branded portfolio and will harness the respective strengths of the two cheese packing operations to efficiently deliver the broadest range of pre-packed hard cheeses to the UK market. The combined business will have an annual turnover of £335m and will aim to drive an aggressive added value growth agenda in the UK market. The factory facilities of both The Kerrygold Company, based in Leek, Staffordshire, and that of North Downs Dairy, based in Wincanton,
FOOD & DRINK BUSINESS EUROPE, JULY 2010
Somerset, will remain fully operational. Carl Ravenhall, currently managing director of The Kerrygold Company, will become the managing director of Adams Foods.
Sodiaal Closes in on Acquisition of Entremont Alliance French dairy group Sodiaal has reached a preliminary agreement to acquire Entremont Alliance, its loss making rival. The deal would create the fourth largest dairy group in Europe with combined annual sales of more than Eur4b and processing over 5b litres of milk annually. Sodiaal owns French milk brand Candia and also has a joint stake in Yoplait, the international yoghurt brand. 13
Acrylicon lasts longer All floors wear, some faster than others. Floors laid in industrial environments are often subjected to extremes in terms of wear and tear. Truck damage, impacts from heavy objects, friction, abrasion and chemical attacks are common in many industries. Acrylicon has qualities that deliver long-term durability, no matter where the floor is installed. Our customers vouch for that.
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AcryliCon Norge AS P.O. Box 3984-Leangen, N-7443 Trondheim, Norway
+47 73 90 10 00 +47 73 90 10 16
improve TINE’s productivity and profitability, and will also provide the co-operative with the flexibility to adapt to changing market trends. The new dairy will have a milk pool of about 200 million litres per year. The Jaeren dairy will chiefly produce white cheese, butter and margarine, as well as processing the whey into food ingredients. The work of disposing of the existing four dairies has already commenced. TINE is also investing up to NOK1.8 billion at its plants at Verdal and Oslo. Although an earlier decision to build a whey factory at Verdal was postponed in December 2008, due to rising construction costs and fluctuating international whey prices, TINE has since started a stage-by-stage development of the Verdal dairy. The first phase entails investment in a new fat processing plant, which is in line with TINE’s plans to consolidate its pro- TINE is investing heavily to duction of fat, dried products and con- improve efficiency. centrates in Eastern and Central Norway. TINE has a co-operation agreement with Arla Foods Ingredients for the marketing and sale of whey products. TINE also plans major investment at its dairy in Oslo, where a new highly automated warehouse for convenience products will be constructed. Looking ahead to the 2010-2012 period, TINE will invest at its
N N E E W W S S Valio Opens New €40m Butter Plant in Finland Finnish dairy group Valio has officially opened a new Eur40m butter facility at its plant at Seinajoki. According to Valio, the new 100,000 tons per annum production unit is the most modern of its type in the world. Built in 1979, the Seinajoki plant produces all of Valio’s butter and spreads and also houses a powder plant. The recent investment programme in state-ofthe-art production and packaging lines has raised capacity for butter and spreads as well as increasing the range and volume of other value-added dairy products. Meanwhile, Valio is constructing a new processed cheese plant in Russia.
Pekka Laaksonen, chief executive of Valio.
Tunga dairy outside Trondheim, where a new refrigeration plant is planned. TINE also intends to relocate its dairy in Bergen to a more suitable site and to this end has purchased some land near Flesland Airport outside the town. Top Global Player TINE’s steady financial performance in 2009 allowed it to push its way into Rabobank's new Global Dairy Top 20 for the first time, during a period when many international dairy companies experienced declining sales due to depressed commodities markets. According to Rabobank, companies that operate in a relatively stable price environment, such as TINE and the Japanese companies Meiji Dairies and Morinaga Milk Industry, managed to improve their position relative to the other companies without significant sales growth. streamline its business and to “We have the best commodities in the world. That, combined with colleagues with expertise, experience and a love of food and TINE provide fantastic opportunities and good future prospects. It is our task to manage this in the best possible manner.” Hanne Refsholt continues: “TINE is a significant company in Norway, and we wish to be an important player well into the future. The way we show responsibility and serve the market, clearly demonstrates that we have long-term ambitions.” J
B B R R II E E F F
Royal FrieslandCampina to Focus on Creating Added Value Netherlands-based dairy multinational Royal FrieslandCampina, which operates production plants in 24 countries and markets its products in more than 100 countries, has unveiled its new strategic plans and priorities for the coming decade. Entitled ‘route2020’, the new strategy focuses on extra investment in products such as dairy, branded cheeses and infant and toddler nutrition ingredients in order to achieve growth, and on geographical expansion of consumer products in Europe, Africa and Asia. FrieslandCampina will aim for 5% average annual volume growth in added-value products. The dairy co-operative is also committed to improving energy efficiency throughout the dairy chain and reducing associated greenhouse gas emissions. The new strategy is designed to add extra value to the milk supplied by FrieslandCampina’s member farmers.
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D D A A II R R Y Y
“The route2020 strategy marks the next step towards achieving our ambitions. After our merger in early 2009 we focused on integrating the two organisations and establishing a strong management team, while also putting in place plans for a better streamlining of various parts of the production chain. Now, 18 months after the merger, we can consider the integration a success,” explains Cees ’t Hart, chief executive of FrieslandCampina. He continues: “Worldwide we are seeing sharp movements in dairy prices, as well as a shift in the economic focus towards Asia, a globalisation of markets and businesses, increasing attention to sustainability and growing consumer demand for good, healthy food. We firmly believe that we are well-positioned in this market thanks to our expertise throughout the dairy chain, our broad-ranging product portfolio, our geographical spread and our strong brands. We will be using our route2020 strategy to continue reinforcing our international presence and increasing the focus on our activities that create added value.”
FOOD & DRINK BUSINESS EUROPE, JULY 2010
By increasing sales volumes of its differentiated products by an average of 5% a year, route2020 will lead to further improvement in FrieslandCampina’s financial results, with larger numbers of addedvalue products, fewer commodities and a strong focus on cost management. This in turn will be reflected in the performance price paid for all milk supplied by member farmers. FrieslandCampina expects to be able to fund the costs of implementing route2020 from profits.
Cees ’t Hart, chief executive of Royal FrieslandCampina.
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I BABYFOOD
Drying of Modern Babyfood Formulations By Gert Andersen, Dairy Technologist, Anhydro abyfood is a popular term, which covers a B wide range of different formulations designed for infant nutrition of different age groups. In addition, a number of nutritional products are designed for older people, and have many characteristics common to the infant formulations. These different products are often produced by the same manufacturers. Babyfood formulations have changed significantly over time. Initially, babyfood was milk powder with addition of various sugars. Over the years, manufacturers designed babyfood powders with tailored levels of proteins, fatty acids, carbohydrates etc to simulate real mother’s milk. In the past 15 years, special development has taken place, as manufacturers have started to design for added health and nutritional benefits. Hence, modern babyfood formulations now typically include Alfa-lactalbumin, galactooligosaccharides (GOS), Fructooligosaccharides (FOS), omega-fatty acids etc. These components have now entered most modern babyfood ingredients and present a challenge for the drying process. At the same time, babyfood consumers are now requesting formulations with a number of improved powder properties. Better re-constitution properties (dispersibility, wettability, baby-bottle test), well-defined bulk densities, colour, bacteriological quality etc. are also becoming integral requirements when designing up to date babyfood processing equipment. High Demands
The combination of modern babyfood formulations and higher functional powder properties pose a number of high demands to the process and the associated equipment. Important developments have taken place especially in the heat treatment, evaporation and drying process steps in order to cope with the new conditions. Heat treatment is essential to secure an adequate micro-bacteriological quality. This may, however, affect powder properties negatively if not designed carefully. Evaporation is essential to provide better de-hydration economy in the process, but is also required to secure optimal powder properties. The most significant development in the process equipment, however, is the design of the spray drying step. A couple of decades ago, typical babyfood dryers would be either boxdryers, Tall-Form Spray Dryers or conical single-stage dryers. In the past two decades, more and more multi-stage dryers producing agglomerated powders have been adopted. 16
Only lately, has a sophisticated Triple-A Dryer In response to the more recent version of Multi-stage dryers been developments in the babyfood introduced to accommodate the market, Anhydro has designed a requirements associated with new and sophisticated multimodern babyfood formulations stage dryer called ‘Triple-A’. and tougher consumer demands. This dryer is particularly In the design of these new and designed for flexible agglomeraspecialised babyfood dryers, a tion of powders which have number of parameters are high sticking tendencies. taken into account: Process air distribution patterns • De-humidification of process air and product spray trajectories is becoming widely used, as this secures better drying economy Gert Andersen, Dairy have been carefully modelled and uniform process condi- Technologist at Anhydro. through Computational Flow tions, thus preventing quality fluctuations Design (CFD) tools to ensure that the primary drying takes place before the particles can caused by seasonal and ambient variations. • High flexibility in the dryer process is interfere with vessel surfaces. Compared to becoming very important, as most babyfood traditional dryers, completely different flow manufacturers produce an increasing num- velocities are applied, securing low thermal impact on the powders. Agglomeration flexiber of different formulations • The dryer design must be able to produce bility is a controlled combination of impingepowder with instant properties. In order to ment agglomeration, fines return and entraindo so, the integrated agglomeration step ment of particles into the spray cloud. The ability to adjust and control these parameters must be extremely flexible. • Drying temperatures need to be lower to exactly provides the manufacturer with the avoid heat degradation and powder deposits flexibility needed to handle many different formulations. in the dryer. The Triple-A chamber design is provided • The introduction of GOS and FOS and other minor components is a challenge to with a steep conical section compared to tradithe spray drying process in general. Due to tional dryers. This helps to reduce powder the glass transition temperatures of these deposits. The dryer principle is designed with components, the powders tend to stick multiple air curtains, also to prevent product inside the dryer and build up deposits. It is deposits. A dry air curtain from the integrated essential that the dryer design is tailored to fluid bed up along the cone prevents deposits handle this issue, as traditional dryer designs in this zone. Another cooling air curtain situated around the hot air entrance to the chamare no longer adequate. • Drying of babyfood is an energy-consuming ber reduces heat transfer to the chamber ceilprocess. As the dryers tend to be large and ing, which is known from traditional dryers to the competition between babyfood manu- produce discoloured particles. The design of the atomizer assembly allows facturers is escalating, energy cost is becoming increasingly important. As a conse- for continuous exchange of individual nozzle quence, energy-optimized solutions are inte- rods allowing babyfood producers to operate continuously with large batches over long perigrated in a modern babyfood dryer. ods minimizing CIP time and costs. Energy Efficiency
Fluid Bed Systems connected to a Triple A.
FOOD & DRINK BUSINESS EUROPE, JULY 2010
Anhydro is designing and supplying Triple-A dryers which have been energy-optimized, and it is today possible to reduce the energy consumption by 15-30% per kg of final powder compared to traditional multi-stage dryers. Although developed only 3 years ago, more than 20 Triple-A dryers have already been delivered by Anhydro and have proven to be very successful compared to the more traditional multi-stage dryers. For more information, contact gert.andersen@anhydro.com or visit www.anhydro.com. J
I DAIRY PROCESSING
When Knowledge Makes the Difference – DSS Silkeborg
A UF plant that DSS previously delivered to TINE.
SS Silkeborg was started ten D years ago with the aim to serve the global dairy industry with world class membrane filtration technology - quite an ambition for a young company. The ambition was based on a few enthusiastic employees all having 15 or more years of relevant experience. The strategy of being focused on one technology for one industry has proven to be successful. Today, DSS is the biggest group serving this market segment and the result is more than 500 systems sold – more than 50 per year! Expanding the Scope of Supply - A Strategy For Future Growth
Although, still loyal to its focused strategy DSS is looking for other separation technologies to com-
plement its present product program. There is no doubt that the dairy industry in the future will demand new and sophisticated technologies to separate and purify the individual fractions and components in milk based products and ingredients even more than today. By applying new technologies and processes DSS intends to maintain its present position as the leading supplier. Over the years DSS has executed larger and larger projects. There is a natural expectation from customers that DSS has both the capacity as well as the competence to do so. This means that not only does DSS include other process equipment and integrate it with its core technology; the company also manages installation and commissioning on a turn-key basis.
bly no single supplier could provide ‘best technology’ in all areas. This approach makes the definition of interface between each supplier very important and the tender documents had great focus on this point. As a specialist supplier with a focus on membrane filtration for the dairy industry, DSS was pleased by the view taken by TINE to split up the project in process areas suited to DSS’s business philosophy. DSS would otherwise have been disadvantaged and most likely not in a position to enter the contest. With its previous trading history with TINE for similar technology in mind and the concept of splitting up the project DSS felt it was in a good position to pursue and secure the contract. The bidding and negotiation process was lengthy but always conducted in a positive atmosphere with all bidders evaluated
are also included in the DSS scope of supply. The basis being design, build, supply, install, commissioning and training of everything within the designated process area. The customer pointed out that the main differentiators for choosing DSS as the nominated supplier for this process area was dedication to the required key technology, previous track record and a good feeling between the parties.
on their technology and other merits on a fair basis. The overall project in the process area of interest to DSS consists of two virtually identical projects from incoming pre-treated whey to output of high quality refined WPC and pre-concentrated lactose. Various intermediate processes and storage facilities
For DSS all three points are equally important and form the cornerstones of its business philosophy. Being at the front with the latest technology and securing its reputation with a proven track record together with good understanding of its customers’ main issues are essential for the future success of DSS. J
TINE Chooses DSS for Large Contract
All in all this led the Norwegian dairy group TINE to nominate DSS as the supplier for its new green field project near Stavanger and a comprehensive upgrade of the present factory in Verdal. From the beginning it was TINE’s strong wish to split up the total project in smaller process areas. This decision was based on a desire to source the best possible technology in each area and a realisation, that proba-
FOOD & DRINK BUSINESS EUROPE, JULY 2010
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I DAIRY PROCESSING
SPX to Provide TINE With Advanced Continuous Margarine and Butter Processing System PX Corporation’s Flow Technology segment has S been awarded a contract valued at over $10 million to custom design and install a fully automated, continuous margarine and butter processing system at the new TINE Jaeren plant in southwest Norway. The system will utilize the technology of Gerstenberg Schroder, which SPX acquired earlier this year. The new facility is being constructed by TINE BA, Norway's largest producer, distributor and exporter of dairy products. SPX Flow Technology manufactures, engineers and installs components and turnkey solutions for the global food pro-
cessing industry, leveraging its core product lines, including APV, Waukesha Cherry-Burrell and Gerstenberg Schroder. The fully automated system will be designed to enable TINE to continuously process both butter and margarine spreads in the same production facility. The system will be configured to deliver environmental benefits through low water and energy consumption. Gerstenberg Schroder’s endto-end processing system will be designed to enable TINE to minimise the operational water consumption on the butter maker. The system will be built to capture most of the fluids used during the cleaning in
SSHE for fat crystallization.
place process, and thus reduce the costs and disruption of the disposal process versus systems that do not capture most fluids. Fluids will be preconditioned to the temperature required for the cleaning which can result in a reduction of cleaning time.
These features, along with the fact that the electric motors are often controlled by a frequency converter, are expected to help minimise the plant's overall energy consumption. In January 2010, SPX announced the strategic acquisition of Gerstenberg Schroder to broaden and strengthen the company's global food processing technology, equipment offerings and systems capabilities. Based in Denmark, Gerstenberg Schroder is a prominent designer, manufacturer, installer and service provider of processing systems and components serving the global food industry. J
Flooring Solutions By Acrylicon was non-porous, free of pinholes and easy to clean and disinfect. The floor system must retain its cleanability for life, not just for the first year or two. Because of Acrylicon’s high compressive strength, dirt always remains on the surface and can therefore always be cleaned away.
an industry where hygiene is paraIthenmount, Acrylicon has proven itself to be easiest to clean flooring on the market. The flooring requirements for general production areas have changed very little over the last 30 years. When Acrylicon conducted its first survey in 1977 the company found that the main requirements of 95% of the companies who took part were as follows: • Hygienic • Good looking • Easy to clean • Long lasting with minimal repairs • Protect the substrate. This is still the case today. Acrylicon was developed based on these requirements and has been fulfilling them since then with
non-toxic high-end flooring solutions. With efficient factories working 24/7 the inability to shut down can leave floors looking unsightly and unhygienic. Therefore the ability to carry out maintenance quickly and easily is of great importance when choosing a floor surface. Longevity
TINE Dairy Group continues to choose Acrylicon floors, not just for their exceptional performance, but also for their longevity. Most conventional floor systems tend to deteriorate over time due to plastic fatigue or plasticiser loss. This is often seen as map cracking as the floor becomes brittle, or discolouration after regular washing. Due to Acrylicon’s unique chemical construction, its floors do not suffer the ageing or plasticiser loss, and its floors are lasting for in excess of 30 years. Cleanability
TINE Dairy Group required a floor that 18
FOOD & DRINK BUSINESS EUROPE, JULY 2010
Down Time
Most resins must be applied in moderate temperatures and traditional resin systems can take days to fully cure. Often other commercial pressures mean that the floor is used too soon after installation, resulting in premature damage, blooming and other complications. Acrylicon fully cures, even at temperatures below zero, and can be put into use within two hours of installation. J
APLIX Fasteners UK Ltd. The Old Foundry Long Melford Sudbury Suffolk CO10 9EA ‘As used by Milk LInk – Grip Strip®’
+44 1787 880878 caine@aplix.co.uk
I DAIRY
Sold Performance By Milk Link Despite the difficult trading environment, Milk Link, the vertically integrated UK dairy co-operative, made strong progress during its last financial year, consolidating its position as the largest producer of British cheeses and strengthening its financial position as it continued to recruit new members, broaden its customer base and expand its added-value dairy processing business. wned by British dairy farmers, Milk Link employs about 1,200 people and operates seven processing facilities producing cheese and a wide range of dairy products including long life milk and creams, flavoured milks and milk powders. Since deciding to become a vertically integrated dairy business in 2001 by processing its members’ milk, Milk Link has Neil Kennedy, grown by acquiring existing of Milk Link. businesses with excellent production facilities and by developing strong strategic alliances. Its most important acquisition entailed the purchase of The Cheese Company, the UK’s largest producer of British cheeses, buying 75% of the equity in 2004 and taking full control in 2006. For the year ended April 3rd 2010 Milk Link increased profit before tax to £10.6 million, up from £0.5 million in 2009 when the British dairy co-operative incurred exceptional charges of £9.6 million. EBITDA rose by 1.7% to £28.7 million in the 2010 financial year and turnover edged up 0.5% to £550 million. The amount of milk handled by Milk Link during the year increased by 13% to over 1.4 billion litres as the co-operative was successful in recruiting about 600 additional new members and ‘direct supply’ farmers
O
Leading British Cheese Producer Despite the acquisition of the Llandyrnog Creamery in North Wales for £25.6 million during the year, net bank debt at £80.9 million was only £4.8 million higher than the prior year. The acquisition reinforces Milk Link’s position as the largest producer of British cheeses. During the year, Milk Link undertook a strategic refocusing of its long life milk and cream and flavoured milks business. This entailed the closure of its Kirkcudbright facility and consolidation of all milk pro-
duction into its Crediton Dairy, which benefited from a major capital investment programme to create the most advanced production facility of its type in the UK.
stock management. This perhaps can be summed up by our determination, in everything we do, to ‘add value efficiently’. Indeed, given the ongoing economic and market pressures all in the dairy industry face, this will continue to be a constant mantra for the business.” Milk Link’s growing range of branded and licensed cheeses and milks is benefiting from increased marketing support, innovation and extra distribution through retail multiples and food service outlets. Reflecting the success of the group’s strategy to increase the added-value element of its milk processing business, sales of Tickler, an extra mature Cheddar, and Flora pro-activ milk rose by 56% and 15% respectively during the year. Milk Link’s new ‘lighter’ cheese, which has 30% less fat than standard Cheddar, also performed strongly.
Building the Customer Base Milk Link managed to continue to build its customer brand business with major retailers such as Sainsbury, chief executive Waitrose, Tesco, Marks & Spencer, Morrisons, Iceland and the Co-op. On the food service side, it further developed its relationships with customers including 3663, Booker and Brake Bros. To complement is strong standing within the production of Blue Stilton and crumbly territorial cheeses, Milk Link has established a new Speciality Cheese business, fol- Outlook lowing the construction of a new £1.4 mil- Milk Link is committed to further lion speciality cheese packing facility at its strengthening and streamlining its business Reece’s Creamery site in Cheshire. Milk over the next year and its increasing finanLink has also entered a strategic alliance cial strength and flexibility leave it well with Cornish Country Larder, a leading placed to take advantage of opportunities British manufacturer of soft cheeses. that will arise in a rapidly changing dairy “Despite extremely difficult trading con- market. “Looking forward, over the next ditions, particularly in relation to the twelve months the trading and economic cheese market, where the impact of imports environment will continue to be extremely of cheap cheese combined with deep and challenging, whilst global dairy commodity sustained discounting by the major cheddar markets will remain highly volatile,” Neil brands served to erode Kennedy predicts. “At the value from the market, same time, although there the group’s financial are some welcome signs performance was that farmer confidence is strong,” says Neil improving across the dairy Kennedy, chief execuindustry, we must ensure tive of Milk Link. that this is developed and He adds: “This sustained. This will be reflected the strengthvital if we are to give farmening of our customer ers the confidence to make and product mix; our the necessary levels of continued emphasis on investment in their dairy driving out costs and enterprises and to encourimproving efficiencies age the next generation of across the business; dairy farmers who will be and our rigorous Milk Link is the largest producer of the lifeblood of the indusapproach to cash and British cheeses. try.” J FOOD & DRINK BUSINESS EUROPE, JULY 2010
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Milk Link Launches Next Generation of Cheese Packaging ilk Link, the largest British cheese manufacturer, has launched M Grip Strip, an intuitive food packaging open and closure system. Exclusive to Milk Link for use in the dairy sector, the new packaging format is available in stores nationwide and used on the majority of Sainsbury’s Named Creamery pre-packed cheese and Milk Link’s Cadog and Lockerbie regional cheese brands. It sets a new ‘gold standard’ in cheese packaging by delivering both freshness and ease of use for the consumer. Grip Strip is a unique format which represents a major step forward in comparison to the traditional zip lock and resealable packs currently available. It has hook and loop self gripping fasteners which firmly seal the pack and maintain product freshness and is designed for everyday, long-term and repeat use. The material is a food-grade heat-sealable polyethylene. Milk Link’s Innovation Centre worked in partnership with Aplix, a specialist technology company, to apply the hook and loop technology to food packaging. J
Milk Link’s Innovation Centre.
Hook and Loop Technology From Aplix plix is a world leader in hook and loop A technology development with over 50 years of experience. Employing over 800 people across five manufacturing sites and producing over 1 billion meters of product per year, Aplix has a depth of extrusion know how. Aplix, the dominant player in the aerospace and medical markets felt
packaging was a natural extension of its core competence of micro extrusion. “The market was in clear need of an innovative solution with greater performance and ease of use. Our unique technology already exploited by many demanding blue chip customers was an obvious starting point. We worked with the key brands, machine and film suppliers to produce our patented Aplix hook to hook system made from FDA approved LDPE,” says Caine Folkes-Miller, managing director of Aplix UK. Aplix is looking forward to delivering this unique solution for a wide range of products including; sliced meats, cereal products, detergents, frozen foods and confectionery to name but a few. Products benefit from a closure that does not require precise alignment or strength to close, allowing the whole family to use it with ease.
Alfresco Gastro 2010 at Sharpak he sizzling Summer weather has fired the coals of T barbecue products. Sharp Interpack (Sharpak) has the largest range of barbecue meat trays (over 30 different styles and designs) anywhere in Europe and is busy meeting the high demand. The comprehensive range of Oval burger trays form the backbone of the portfolio along with a mixture of cavity, shingle, barbecue, sausage, ribs, chops, kebab and grill steak trays in the D13 range for adults and children alike and the large D18 & 21multi cavity family packs. There is also the smooth wall versions of D2, D13 and D45 and the poultry ‘S’ range with 8 cut sizes and multi22
Recent consumer tests have shown a preference of 70% towards the Aplix system over others on the market. The unique hook system literally punches through contamination in the closure to ensure continued ease of use. Aplix is already an award winning system, taking the innovation prize at Packinnove last year. For further information about the Aplix system contact caine@aplix.co.uk or call +44 (0)1787 880878. J
ple depths. The trays are all stocked through leading supermarkets and manufactured in recycled APET (meat and burger trays) and recycled PP (poultry trays). The products tick all the boxes for environmental concern, product integrity and pure design aesthetics. The award winning shingled burger trays incorporate an improved a-b denest facilitating packing and optimising palletisation With all eyes on the weather the supermarkets are busy re-stocking shelves with burger products, poultry and BBQ lines – Sharpak is well placed to ensure that they remain amply stocked throughout the Summer. For further details visit www.sharpinterpack.com or email sales@sharpinterpack.com Tel *44 (0) 1278 435000. J
FOOD & DRINK BUSINESS EUROPE, JULY 2010
I PACKAGING DESIGN
More Innovation from DS Smith Packaging Material Take Away At DS Smith Packaging Livingston the pressure was on to deliver a cost effective and sustainable solution to its customer, Patak’s. To prevent damage the customer's Indian bread was transported in a case turned on its side. For strength, the fluting ran around the case and had to be produced on two machines meaning two passes in the factory. When in store, the packs were turned the right way up for maximum product visibility on the supermarket shelf.
The pack was re-engineered to have a conventional flute direction eliminating the need for an additional machine process at Livingston. The designer saw an opportunity to improve the aesthetics of the pack and designed a tuck over on the display face to give a much better and cleaner finish in store. The material used was reduced by 20% and the factory even saved on corrugator trim. The stronger box meant the customer could put the box upright on the pallet, increasing pallet utilisation by 8% as well as reducing logistical costs and carbon emissions. It just goes to show how by design, DS Smith can help customers save money, improve environmental impact and support all the way through to the point of sale. Fine Packaging For Fine Confectionery DS Smith Packaging Clay Cross has supported the launch of a new product, under the Henry Goode’s Soft Eating Liquorice brand, with high quality retail ready packaging. Originating from Tangerine’s Pontefract site, the new product has already won the Gold award in the confectionery category
at the 2010 National Food and Drink Awards run by grocery trade publication, The Grocer. The product was highly rated for its overall market appeal, product taste and packaging. The one-piece easy open pack, meets the needs of Tangerine’s packing processes and fulfils retailer requirements. The corrugated pack has been optimised using DS Smith Packaging’s PackRight tools. The performance of the case, in terms of stacking strength vs. perforation opening, is integrated with other factors such as pallet size and transit requirements. This 4 colour pre-printed pack, developed to coordinate closely with the primary pack, offers outstanding visual impact for this brand. Highly visible, the product is easy to find in the back of store and, when arranged as a family on the shelf, the unit provides strong visual differentiation against other brands in the category.
in a wide range of retail outlets. DS Smith Packaging’s development work involved both structural and creative artwork design as well as static and transit testing. Once approval had been given to the artwork and structural design, the unit was printed, converted and delivered in just six weeks. Eve Roberts, customer marketing manager of Thorntons, comments: "This type of unit is a great way to communicate brand values via premium cues, colours and design and the display achieved our Melts brand objectives of driving awareness and generating trial of the new Melts proposition.” DS Smith Multigraphics offers high quality Point of Purchase (POP) and Point of Sale (POS) materials, with everything produced in house. There is wide range of capabilities in screen, digital, litho and flexo print, creative visuals and artwork, conversion and fulfilment services. This means that whether you need 2D or 3D displays, DS Smith Multigraphics can supply either individual elements or the whole package. J
Outstanding Display For New Melts Brand The ability to create high levels of product awareness is fundamental to the success of a new product launch. That is why Thorntons chose DS Smith Multigraphics to design and manufacture a very appealing freestanding display unit (FSDU) for the new Melts range. The brief was to ensure that the unit was highly visible in store, standing out from other displays and matching brand colours perfectly. The purpose was to communicate the benefits of the new product, announce new promotions and give the brand more presence and impact in store. It would also help Thorntons achieve rapid coverage of the new product FOOD & DRINK BUSINESS EUROPE, JULY 2010
23
I WEIGHING SOLUTIONS
Gourmet Salads and Other Products: Reliably Guided Through Weight Checks hen every gram counts, HOMANN, a W gourmet salad producer, leaves nothing to chance and relies on dynamic weighing solutions provided by OCS Checkweighers. The approved system not only checks the weight of HOMANN's products, but is also responsible for the detection of any foreign objects before the world-famous gourmet salads; dips and spreads reach the plates of customers. Why apply these quality checks? By implementing the following quality controls, OCS can help to reduce overhead costs by giving a 100% check of each individual HOMANN product. HOMANN is based in Dissen, Lower Saxony, Germany. The production of Homanns gourmet products has benefited greatly from the implementation of dynamic checkweighers and reliable foreign object detection from OCS. These systems reduce the need for time-consuming and costintensive manual sample checks and guarantee the compliance with all legal requirements for pre-packaged products. Technical Requirements Fulfilled For several years, OCS has been the pre-
HOMANN is based in Dissen, Lower Saxony, Germany.
ferred supplier for providing HOMMANN with product inspection solutions. Several OCS checkweigher systems can be found in HOMANN’s production lines. Each system is individually designed and integrated into the production line to meet the requirements of the specific application. “When we initially began working together, there were some queries relating to our technical requirements, however we found that OCS provided the best and fastest solution to fulfill all these needs,” says Hermann Spreckelmeyer, technical manager at HOMANN. OCS investigated various forms of packaging, a broad weight range of up to 6,000g and special product properties in order to find the best solutions for HOMANN. For example HOMMANN produces salads, which are filled, packaged and weighed within hot and cold temperatures. Therefore, OCS metal detectors need to operate in the so-called multi-mode function, as the system is working at different frequencies depending on the product type. Within the production industry available space can often be limited and therefore smart solutions are called for. With this in mind, OCS has developed a special solution - a four-track system with two metal detectors, with each metal detector simultaneously monitoring two tracks. This distinctive solution uses a mechanical design, which means all four tracks can be joined to only one within a few seconds. This provides weighing, metal detecting and a sorting devise within an extremely tiny space. Highest Standards Process reliability is crucial for modern production facilities. Strict legal regulations concerning the hygiene of pre-packaged products is needed to meet manufacturers’ and the retailer’s requirements. A sophisticated and product-specific solution from OCS is used in line 3 at HOMANN. In line 3, North Sea shrimp salad is filled into cups of 125g by a WALDNER six-track cup filling machine. After the cups are sealed, they are transported in groups of six at a time to a belt and then guided to an accumulation conveyor. This belt holds the products in the FOOD & DRINK BUSINESS EUROPE, JULY 2010
Flat belts for reliable product handling.
correct position whilst an ink-jet printer head prints the best-before date and batch number onto them At HOMANN, it is important that the sides and base can be printed on. This is why OCS used a flat belt conveyor with separate belts to provide enough space for the integration of a printer head. The printed cups then travel over acceleration conveyors, where two separate conveyor belts are used to allow enough space for the ink to dry. The acceleration conveyors separate the cups, in order to create the correct spacing before reaching the HC checkweigher and integrated metal detector. Each product is then weighed and inspected for foreign objects. Due to hygiene requirements the system is compliant to IP65 rating and uses stainless steel parts. This includes a stainless steel weigh cell, motors and conveyor bodies, which allow for the highest level of hygiene standards. An additional requirement for this solution was a special custom-built stainless steel rejection bin, which can be easily removed and cleaned within seconds.
HC checkweigher with metal detector.
25
Filling machine for North Sea shrimp salad.
Filling Control During the weighing process, the OCS checkweigher constantly communicates with the filling machine and plays a pivotal role in controlling all six filling heads. In track one the products are marked with an invisible, UV fluorescent dot. In the following production steps these cups can then be identified by the UV fluorescent dot and as they reach the checkweigher the cups can be matched to the corresponding filling head. An ingenious technical solution, which will show if one of the filler heads is over- or under-filling. The filler can then be directly compensated with a control signal to readjust the filling accordingly. The checkweigher also provides additional information on statistics for the filling heads and production data is always at hand. Products with incorrect weight or contaminations are reliably rejected. The North Sea shrimp salad cups are now ready to be transported to the packaging machine, then onto distribution; ready for
Stainless steel components for easy cleaning.
the chiller cabinet of our local supermarkets. HOMANN has specifically opted for solutions provided by OCS Checkweighers. Hermann Spreckelmeyer comments: “OCS understands our requirements and the systems always work reliably. We have found a supplier who provides a full service and who always has another technical ace up their sleeve.” For further information contact OCS Checkweighers Ltd on Tel +44 (0)1993 701970 or visit www.ocs-cw.com. J
I WEIGHING & METAL DETECTION
Tailor-made Cheese Demands Loma Wins Top Food Consistent Quality Control Processing Award N
oma Systems, a leading supplier of metal detection, L checkweighing and X-ray inspection equipment, has won the prestigious Technical Development award at this year’s Food Processing Awards for its pioneering Variable Frequency technology across its range of IQ3 metal detectors. Loma Systems has developed a Variable Frequency function inside the company’s metal detectors, allowing automatic detection of contaminants within a wide frequency range (31KHz-882KHz). The system can be configured to automatically select the correct frequency for numerous food products and packages during calibration, ensuring detection sensitivity remains at a peak regardless of which particular product is being inspected by the unit at any given time. This greatly reduces the possibility of operator error, which minimises product wastage or recall costs. Loma also picked up a finalist award in the Innovation category for its CW3 Combination Checkweigher and Metal Detector. Loma has been providing safe, reliable and tough inspection solutions to the food industry for over forty years. “This is the single most influential development in metal detection in years and is true testament to our ongoing research and development into making the best metal detection in the world,” says Simon Spencer, managing director of Loma Systems. For more information about Loma please visit our website: www.loma.com. J 26
etherlands-based Kaas-Pack Holland specialises in customised production and delivery of cheese products, including slices, sticks, grated cheese and cubes. All products are tailor-made to customer specifications. The incoming cheese is directly transported to the grate drums and the various cutting machines and the processed cheese packed under protected environment for optimum shelf life. During the process, several quality inspections take place. Potential metal contaminations are checked with the use of Mettler Toledo’s Safeline metal detectors and the quality of the pre-packed products is constantly measured with the Statistical Quality Controlsystem FreeWeigh.Net. This software monitors on random base the net content and the remainder of oxygen in the selected bag. In addition the packages are tested for leakage. A fixed number of pre-packages go through a series of random quality checks at regular intervals. First, the product data is entered with barcode scanners on the Mettler Toledo FreeWeigh.Net workstation, after which the packages are weighed on a Weights and Measures approved BBK462 15 kg ? 0.5 g scale. Then leakage tests are performed by means of a PBI-Dansensor leak testing system. Since all mentioned equipment is connected to the FreeWeigh.Net system, a compact and efficient quality procedure is achieved for all pre-packed products. The information is directly processed and the production process can be immediately adjusted, resulting in less over- and under-filling, thus preventing any legal and customer complaints. J
FOOD & DRINK BUSINESS EUROPE, JULY 2010
I PLANNING & SCHEDULING
Preactor Sends NFP’s Planning Problems Packing icholl Food Packaging UK N (NFP) is the head office of the successful Nicholl Group, a leading manufacturer of aluminium foil containers predominantly used by the food industry. The £58m turnover group sells to the major mainland European markets and the UK where it supplies trusted food companies including Heinz, Danone, Unilever and Manor Bakeries (Mr Kipling) with end users including Marks & Spencer, Tesco, Asda, Morrisons and Sainsburys and perhaps your local Chinese or Indian takeaway. Market share is approximately 55% in the UK with NFP alone forecast to produce 1.7 billion trays in 2010 to meet demand. Recent ventures include sales in America, Canada and Australia. Planning and scheduling on this scale and for such household brands requires a solution with an impeccable pedigree – one of the reasons NFP invested in Preactor. Foil trays come in a bewildering variety of size, shape, gauge and finish with NFP
Foil trays come in a bewildering variety of size, shape, gauge and finish with NFP having over 800 different product types to choose from in addition to bespoke product.
having over 800 different product types to choose from in addition to bespoke product. Annual demand ranges from 60,000 to 500,000,000 with the company handling approximately 400 orders a week as well as managing consignment warehouses for specific customers. Price and timely availability of product are key considerations for many of NFP’s customers so accurate planning and scheduling of not just what to make and when, but also how much and what type of foil to buy and when are vital to NFP’s success. This is complicated by finished product lead times averaging about a week while lead times for over 200 different types of raw material used are typically 6-12 weeks with NFP often having to commit to purchasing foil prior to having confirmation of orders. To assist this, NFP has 3 consignment stock facilities which help buffer against demand fluctuations and delivery disruptions but these also need careful planning as it might be more cost effective to call down stock from different facilities at different times. The production process itself is relatively simple albeit done on a large scale involving 46 process lines divided into 4 main types. These presses make use of over 250 live tools with different products requiring overlapping combinations of press, tool and stacking/collection system. Minimum production runs are 24 hours while others can be continual throughout the year and may involve several presses. Set-up times are relatively short and there is an appreciable degree of time saving by sequencing groups of jobs that require the same tool but with a slightly different setting. Similarly it is advantageous to place jobs that are automatically collected on adjacent presses so that they can be monitored by a single employee thus utilizing labour more effectively. Planning & Scheduling Challenges Chris Scattergood is operations analyst at NFP and has been with the company since 1999. Originally he worked for Ekco FOOD & DRINK BUSINESS EUROPE, JULY 2010
Chris Scattergood, operations analyst at NFP.
Packaging in Buckinghamshire but relocated to the Midlands when it was acquired by NFP. He describes the main planning and scheduling challenges that the company faces. “Given the importance of integrating forecasted and actual sales with purchasing and production planning, Christmas presents the biggest difficulty. This is not just because of the increased demand we experience but also because of the finite capacity constraints in production. We tend to get an increased amount of unpredictable short term orders, either as a result of promotions in the major supermarkets or sometimes because one of our competitors has a problem with their supply. We need accurate visibility of our current and projected plan in order to know whether we can fulfil these orders.” He continues: “We endeavour to supply all demand and have to adjust our plan on a regular basis in order to do this. Though our tools and presses are regularly maintained and serviced inevitably there are unforeseen breakdowns which also have an impact on our plan. If a tool or press fails, it may be a simple fix or a complex and lengthy issue, all of which has a knock on effect on the following jobs.” As previously mentioned, NFP’s final challenge relates to the long lead times in foil purchasing compared against relatively short notice on the majority of sales orders. Even allowing for 27
the cushioning effect of consignment stocks, NFP has to plan to have an optimum level of both finished goods and raw material at all times. According to Chris Scattergood, prior to investing in Preactor, scheduling and foil availability problems were “usually dealt with as they happened.” Foil stock levels as well as finished good levels were much higher than they are now on a ‘just in case’ basis. Previous combinations of systems and spreadsheets took no consideration of actual production capacity so and the system would assume the availability of the appropriate tool even if it was already in use on another press. As Chris Scattergood remarks: “The different areas within the company were totally distinct and had no interaction meaning much of what went on was educated guesswork.” A more immediate problem however was the complete lack of visibility of any sort of production plan. Preactor Lite The solution at this stage was Preactor Lite, the former entry level planning and scheduling solution from Preactor International. “Within a matter of days Preactor was providing levels of planning and scheduling visibility and control previously unknown for NFP.” He continues: “Preactor immediately identified our capacity issues based on the tooling information and running speeds that we had imported. The electronic planning board allowed for easy modification of rescheduling as and when required.” In 2005 NFP moved to its present location at Cannock and with this came a group directive to begin driving down costs. Prime candidate for NFP in this area was its raw materials and finished goods levels which meant that a more complex level of planning and scheduling was required. Having already been more than convinced by Preactor, NFP approached Preactor reseller Kudos Solutions in 2006 and after a thorough consultation, the company decided to upgrade to the Preactor P400 system. Chris Scattergood was very impressed not only by Kudos Solutions’ understanding of the issues involved but also their willingness to work with NFP in a way that played to the company’s strengths. “Because we knew we already had the data and experience of how the company worked, Kudos was happy to tell us what we needed to do and let us do it ourselves. This saved both time and money.” New Preactor System After an internal non-related delay, NFP’s 28
Nicholl Food Packaging UK (NFP) is a leading manufacturer of aluminium foil containers predominantly used by the food industry.
new Preactor system went live in 2008 and just as before, began to show immediate benefits, beginning with the much needed visibility the company required. In addition to overall capacity constraints, NFP could now clearly identify production bottlenecks and where individual capacity constraints were occurring. Preactor also gave an accurate view of how much product could actually be made thus enabling NFP to predict accurate stock levels based on the combination of forecast sales and actual sales. Because Preactor was fully integrated into the purchasing and production MRP systems, NFP at last had the means to accurately identify how much foil it needed to buy, and when. Chris Scattergood explains just how important this was. “Preactor has undoubtedly played a large part in enabling us to reduce raw foil sock on to approximately 1-2 weeks usage from a norm of 3-4 weeks and around 6 weeks at Christmas.” In terms of finished goods, some stock levels have been reduced from over 3 months worth to less than 3 weeks worth yet because of the valuable information from Preactor, stock levels of certain key products have been increased to capitalise on short-term promotions and unpredicted sales. Benefits Preactor has also saved Chris Scattergood considerable time. “Previously I would spend most of the day dealing with short term planning and scheduling issues and was solely a ‘Production Scheduler’.” He adds: “Now I can do everything I need to do much quicker thus freeing up my time to look strategically at further ways we can improve our systems and overall efficiency. FOOD & DRINK BUSINESS EUROPE, JULY 2010
This is reflected in my current job title of ‘operations analyst’.” NFP also saves time by now being able to group orders together on the shop floor to maximise employee usage when it comes to hand stacking etc and to optimise tool adjustment sequencing. Another benefit lies in NFP’s ability to accurately increase the planning horizon which is especially useful when it comes to dealing with the increased Christmas demand. NFP can commit to purchasing foil earlier for the Christmas surge and also to begin making these products earlier thus levelling out production and avoiding the need to add extra shifts nearer Christmas. Preactor’s flexibility is also regularly used when it comes to dealing with consignment stocks as Chris Scattergood explains. “The size of stocks held, the length of time they can be held, and also the cost of holding those stocks can fluctuate across our 3 facilities. This means it is sometimes necessary to call down stock from different facilities at different times – Preactor’s flexibility lets us do this with ease.” Looking forward, Ecopla (the French operation within the Nicholl Group) is currently evaluating Preactor because of its success at NFP. It is therefore no surprise that Chris Scattergood positively concludes: “We’ve been able to get Preactor to do everything we wanted and now have full visibility of our production and purchasing requirements. Preactor has helped join everything that was previously disconnected together to work as an integrated whole. Decisions across the whole planning window are now based on accurate, factual information and it has brought us considerable cost and time savings.” J
I CASE STUDY
The Mathematics of a Sausage – Automatic Placement into Thermoforming Machine Detection Torn-open areas in the sausage skin are lowcontrast, and therefore very difficult to detect. The texture operators used can nevertheless find and quantify these characteristics, even at a belt speed of approximately 18 m/min. An approach of mathematical morphology helps determine whether the sausage legs are of equal length. A center line - also called a skeleton line - together with its end points is extracted from the arriving products. The position of the two end points relative to each other provides the information on whether both legs are of the same length. The length of the center line represents a measure of the sausage length. The point of intersection of the center line with the main axis of the U-shape lies exactly on the crest of the bending and ideally serves as a picking point for the positioning of the pick-up tool.
nilever’s production plant in Oss in the U Netherlands is equipped with state-ofthe-art technology. Nevertheless, up to 230,000 smoked sausages were laid in the thermoforming machine by hand every day. The company searched for a long time for an automated process for this function that offers reliability at a price that quickly pays off thanks to the line output. In the end it was Gerhard Schubert, based in Crailsheim, Germany, that presented just such a line an individual solution consisting of standard components. The entire European market is supplied from Oss. To achieve a daily production of up to 230,000 pieces, the high-performance line runs continuously. In the past, eight employees per shift were required to lay the sausages in the film sheet of the Multivac deep-drawing machine. At a speed of 10 cycles per minute, they were faced with a real challenge. Hi-tech Application The machine which assumes the placement of the sausages must – figuratively speaking – be able to see and have delicate touch. And it must be fast, untiring and may make no mistakes. This is a high-tech application and would be very expensive purely as a special machine. Too expensive for this purpose. However, that doesn't apply to Schubert’s technology. TLM packaging lines consist of basic components proven 100's of times in
Robots lay the sausages in the film sheet. The control coordinates the continuous movement of the feeding with the intermittent mode of operation of the thermoforming machines. The robots transfer up to 162 sausages per minute or 2.7 pieces per second.
The suction gripper draws the sausages somewhat closer together after picking them up in order to insert them well into the film sheet’s cavities.
actual use. That reduces the effort of their production and configuration. The related VMS controller tackles highly complex tasks, offers a high degree of flexibility and enables a reduction in the scope of the mechanical system used. Compact Design And as a result, the limited space available is also not a problem: the reduction in the size of the mechanical system enables a compact design. So, the two TLM-F44 picker stations with two TLM-F4 robot units each, fit easily into the 4.8 meters of the extended product insertion section. A reflected light scanner detects the position and condition of the products on the feeding belt. The scanner has been developed especially for the use in TLM lines. Its advantage: distortion-free images and homogeneous lighting. On the image processing level, it is equipped with mathematically robust algorithms. This enables safe and correct decisions to be made even in demanding situations. FOOD & DRINK BUSINESS EUROPE, JULY 2010
Adaptation The tool is a particularly light-weight suction gripper especially produced for the customer. It was adapted to the product following precision work and many tests. The difficulties for the pick-and-place process are the surface moisture, the weight (with up to 375 grams) and the U-shape of the sausage, which is not always uniform. During transfer process the two vacuum suction cups will be moved so that the legs are pulled together somewhat. This achieves the required horseshoe shape during placement. The control coordinates the continuous movement of the feeding with the intermittent mode of operation of the thermoforming machines. A rotary encoder is integrated in the thermoforming machine, which always exactly detects the positions of the individual product placements. As a result, the picker can also insert products during film feed. This feed is not released until it has been ensured that complete packing patterns have been produced. The robots transfer up to 162 sausages per minute or 2.7 pieces per second. Once a day the entire line is subjected to wet cleaning. The design of the TLM machines is once again an advantage: their switch cabinets are located in the head area, making it extremely easy to access the line. The robot arms are manufactured of V4A steel. The line operates soundly and is almost immune to faults: the efficiency is consistently between 98 and 99.8 %. J 29
I ALCOHOLIC BEVERAGES
C&C Group Strengthens Cider-led Drinks Portfolio and Sharpens Focus C&C Group has just completed the Eur300 million sale of its spirits and liqueurs division to conclude a flurry of deals that has seen the Dublin-based cider producer restructure its business and tighten its focus on the long alcoholic drinks market in Ireland and the UK. &C Group owns the Bulmers premium cider brand in Ireland, which trades as Magners in the UK. The Irish alcoholic drinks group competes with much larger multinationals in its key markets of the UK and Ireland as its ciders battle with well known national and international brands for share of throat within the long alcoholic drinks (LAD) market. Following rapid initial success after rolling out its Magners premium cider brand in the UK, C&C’s sales stalled in the face of stiffening competition from its larger rivals and poor summer weather, which put a damper on cider consumption. The reversal forced C&C to scale back investment in new capacity to meet anticipated future demand for Magners in the UK. A new management team, under the leadership of John Dunsmore, took over in November 2008 in an attempt to restore C&C’s flagging fortunes. John Dunsmore had been chief executive of Scottish & Newcastle, the UK’s largest brewer and a major player globally, until its joint acquisition by Heineken and Carlsberg in April 2008.
Tennent’s is an iconic plete range of brands across brand that dates back to the cider spectrum, as well 1885 holding a major share as strengthened routes to of the LAD market in both market. Combined with the Northern Ireland and synergies and knowledge Scotland,” John Dunsmore that will be transferred explains. “Tennent’s strong between the businesses, the relationships with both the acquisition of Gaymers will on and off-trade offers the help us to grow further and group new and established enhance our production routes to market. Accessing and distribution in Ireland this pipeline provides an and the UK,” the C&C excellent platform from head points out. which to build sales of the Magners cider brand.” Restructuring C&C then moved to Gaymers is currently being strengthen its UK cider integrating into C&C’s business with the acquisi- C&C Group has launched a pear existing cider business in tion of The Gaymer Cider cider, which appeals to a younger Great Britain and both Company for £45 million audience and is preferred by female businesses will be managed from Constellation Brands, drinkers. as a single business unit. the world’s leading wine Indeed, since the two acquiproducer. The Gaymer Cider Company sitions, C&C has restructured its enlarged produces about 1.5 million hectoliters of cider and lager business into core geographicider, which is almost twice the size of cur- cal regions - England & Wales, Northern rent volumes of Magners. Ireland, Republic of Ireland, Scotland and “We believe the acquisition provides the Rest of World – with a managing director group with excellent opportunities to appointed to each. Acquisition Spree improve our market performance in Great “By focusing on the local market and its C&C has concluded three major deals dur- Britain,” he says. customers, we believe that these units will ing the past year. Last September, it acquired Gaymers is the second largest cider pro- have a competitive advantage over their the Scottish and Northern Irish operations ducer in the UK, although a long way global counterparts. They will work closely of Anheuser-Busch InBev behind market leader HP with customers and respond more quickly to for £180 million. The Bulmer, which was previ- market needs and opportunities,” he business acquired included ously part of Scottish & remarks. the Tennent’s lager brand, Newcastle and is now John Dunsmore continues: “Ultimately, the Wellpark Brewery in owned by Heineken. The these two acquisitions strengthen our brand Glasgow and the distribuacquisition significantly proposition, give us greater market reach tion rights to certain ABI broadens C&C’s cider and improved production and packaging brands in Ireland, portfolio as Gaymer’s flexibility with the addition of two producNorthern Ireland and products cover several tion facilities in GB. They have also given Scotland, including Stella cider categories including us greater scope and opportunities, specifiArtois and Beck’s. mainstream, specialist/ar- cally in GB, the world’s largest cider mar“As C&C continued to tisan, regional and own ket.” build its Magners brand in label. Gaymers also has Indeed, C&C’s increased scope and the UK, an opportunity to Tennent’s strong relationships with both the UK’s number two strength in Great Britain has enabled it to purchase Tennent’s from the on and off-trade provide an excellent pear cider and is also renegotiate its draught cider distribution AB InBev presented us platform from which to build sales of the strong in the off trade. contract with Molson Coors, Britain’s secwith a ‘perfect fit’. Magners cider brand. “We now have a com- ond biggest brewer.
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Financial Recovery Helped by the acquisitions of the Tennent’s beer and Gaymers cider businesses, C&C reported a 20.9% increase in operating profit before exceptional items to Eur89.5 million on revenue up by 16.4% to Eur568.8 million for the year ended February 28th 2010. However, operating profit after exceptionals fell 11% to Eur89.5 million and underlying revenue (excluding the impact of acquisitions) declined by 8.6% to Eur446.4 million. Profit before tax was Eur78.8 million against a loss of 65.8 million in the previous year. C&C’s core cider business increased volume sales by 5.9% yearon-year but excluding acquisitions, cider volumes fell 2.4% - still a major improvement on the 14% slump in the prior year. Innovation Having pioneered the popular Bulmers/Magners bottled cider ‘on ice’ drinking format, C&C has also been successful in developing new products to recruit consumers and to maintain interest in the cider sector. It has launched a pear cider, which appeals to a younger audience and is preferred by female drinkers, on the Irish and UK markets under the Bulmers and Magners brands respectively. “With Pear, we have proved our innovation capabilities. These are essential for our evolution and driving the business forward. Since the year end, we have extended our cider offerings with the launch of Bulmers Berry in the Republic of Ireland and Magners Golden Draught in Scotland,” he John Dunsmore, chief executive of C&C Group. remarks, Disposal Having strengthened its UK cider portfolio and diversified into lager, C&C has just sold its spirits and liqueurs division to Scotch whisky distiller William Grant & Sons for Eur300 million. Incorporating the Tullamore Dew and Irish Mist brands, the acquisition provides William Grant with entry to the Irish whiskey category. C&C will use the proceeds to reduce debt. “While these international brands have strong market positions in niche categories, it was our belief that the business was subscale.” John Dunsmore elaborates: “Given that our long-term aim is to build a substantial international cider-led, LAD business through a combination of organic growth and selective acquisitions; the limited synergies between this division and our cider and beer businesses; and the significant ongoing investment that would be required to develop this business, we took the view that investment in the group’s LAD businesses provides greater scope for the creation of shareholder value.” Outlook Good progress has been made on integrating Tennent’s and Gaymers with C&C’s existing business although there are still significant challenges to be addressed over the summer months to complete this process. The acquisitions and restructuring over the past year have positioned C&C to deliver consistent, long-term growth, according to John Dunsmore. “Our strong underlying free cash flow generation and balance sheet strength will support the continuing development of a ciderled drinks portfolio while the acquisitions give us greater scale in our core markets and provide opportunities for both revenue and cost synergy benefits,” he concludes. “While we remain cautious on the macro economic outlook for both Ireland and Great Britain, in the medium term, we have confidence in our brand strengths and trading strategies.” J 32
FOOD & DRINK BUSINESS EUROPE, JULY 2010
Introducing the Toyota Tonero lready the world leader in internal comA bustion (IC) counterbalanced trucks, Toyota sets new standards in safety, productivity, durability, comfort and environmental performance with the Tonero. The Toyota Tonero is available in seven models with load capacities ranging from 1.5 to 3.5 tonnes and offers a choice of diesel or LPG engines. Customers have confirmed that there are five important factors for them when acquiring engine-powered forklifts: safety, productivity, durability, comfort and the environment. Customers will find that the Toyota Tonero delivers world leading standards in all of these areas. Every customer has unique business requirements. For this reason, Toyota offers the Tonero+ formula, which allows customers to specify additional features in the areas of safety, productivity, durability and comfort to meet their specific business needs. Safety Features The Toyota Tonero offers a range of classleading safety features, including enhanced visibility for drivers when the forks are at ground level, at lorry bed height and at maximum height, thanks to a new overhead guard and mast design and lowered dashboard. The Tonero also offers worldclass Toyota safety technologies, including the System of Active Stability (SAS), which dynamically protects both driver and load, and Operator Presence Sensing (OPS), which only allows truck operation if the driver is seated. Productivity and Power The Toyota Tonero delivers unparalleled productivity and power with heavy-duty diesel and LPG engines designed and manufactured by Toyota specifically for forklifts. Drivers will also appreciate the automobile-style pedal layout, which offers an intuitive driving experience for optimal operator productivity. To ensure the truck’s long-term durability and protect customer
investments, the Toyota Tonero has a heavy-duty chassis designed for intense applications in wet, dusty and corrosive environments. The truck’s electrical components are water-protected and electronic control units are fully enclosed for added protection from moisture and dust. The Toyota Tonero’s comfort features also help to protect the health and safety of drivers, who have easy access to the truck using the low step and large assist grip. Plenty of foot space, an ergonomic seat and very low vibration provide a comfortable driving experience, while low engine noise improves the working environment. The environment is a fundamental part of the Toyota Tonero’s design. The trucks are manufactured at Toyota’s ISO 14001certified plant in Ancenis, France, and all components are also produced at ISO 14001-certified plants. And the trucks are 99% recyclable at end-of-life, further reducing their environmental impact. Meeting Specific Needs The Toyota Tonero provides this wide array of benefits as standard, and customers can also use the Tonero+ formula to fulfil their specific needs in the areas of safety, productivity, durability and comfort. FOOD & DRINK BUSINESS EUROPE, JULY 2010
With Tonero+ Safety, customers handling loads at height can enjoy even greater levels of safety with a load weight indicator, maximum drive speed setting, and features that limit the maximum drive speed and acceleration rate when moving elevated loads. Operators who must reverse frequently can do so quickly and comfortably thanks to the swivel seat and rear assist grip available with Tonero+ Productivity. In addition, hydraulic cushioned forks enable faster, more comfortable driving on uneven surfaces and outdoors. Customers working in dusty environments can optimise their truck’s durability with Tonero+ Durability, which includes an enhanced cooling system featuring a plate fin radiator, high-speed fan and hydraulic oil cooler. And drivers who operate their trucks intensively can enjoy enhanced ergonomics with Tonero+ Comfort featuring a telescopic steering wheel that can be adjusted vertically to the most comfortable position for any driver. The choice of electronic mini-levers or multifunction levers integrated into an ergonomic armrest ensures comfortable, productive material handling. For futher information visit www.toyota-forklifts.ie. J 33
I ENERGY EFFICIENCY
Coca-Cola HBC Italia’s €22 Million Cogeneration Project Coca-Cola HBC Italia and ContourGlobal, an international energy operating and development company, have inaugurated an innovative cogeneration plant at the Nogara bottling facility outside of Verona. he plant, with a power output of 75 million kilowatt hours, will allow Coca-Cola HBC Italia to reduce CO2 emissions by as much as 66% and increase energy efficiency by up to 83% versus traditional power generation. Eur22 million has been invested in the cogeneration project.
largest producer and distributor of products of The Coca-Cola Company in Italy. Formerly called Coca-Cola Bevande Italia, the company started operations in Italy in 1995. Part of the Coca-Cola Hellenic Group, Coca-Cola HBC Italia has grown both organically and by acquisition. In 2006, in order to expand its The official opening of the Coca-Cola HBC Italia and ContourGlobal cogeneration product portfolio, Coca-Cola HBC plant at the Nogara bottling facility. Doros Constantinou, chief executive of Coca Italia, together with Coca-Cola Cogeneration ‘Cogeneration’ involves the clean Cola Hellenic, is pictured third from the right and Ulrik Nehammer, managing Italia, entered the mineral water and efficient production and cap- director of Coca-Cola HBC Italia, is fourth from the right. sector by purchasing Fonti del ture of energy by taking advanVulture. tage of a single source. In a cogeneration sys- owned and operated by Coca-Cola Hellenic. In 2007, to consolidate its presence in the tem, through the use of a natural gas powered Under the arrangement, ContourGlobal vending sector, Coca-Cola HBC Italia generator, electricity is produced, waste heat is will own and operate the systems, which will acquired Eurmatik, a firm operating in all segcaptured to make steam, and a heat exchanger be built by ECD using its Uni-Solar brand ments of the vending business, including hot is used to provide cooling. These three ele- photovoltaic laminates with development and cold drinks, mineral water and snacks. ments are essential in the operation of a bot- resources provided through ECD subsidiary More recently, in 2008, Coca-Cola HBC tling plant, and by combining them in one Solar Integrated Technologies. The initial Italia acquired Socib, the Soft Drinks Bottling source; the process becomes twice as efficient. stage of the project, which is expected to be Company of the Gruppo Capua, active in the As a result, fuel use declines and CO2 emis- completed during calendar year 2010, will south of Italy since 1960. sions to the atmosphere are reduced. involve approximately 3.4 MWs of Uni-Solar Based in Milan and employing 3,300 peoThe Nogara cogeneration plant will provide laminates at four Coca-Cola Hellenic facilities ple, Coca-Cola HBC Italia operates eight bota reduction in CO2 emissions, from 20.500 to in Italy. The parties intend to expand their tling plants across Italy along with five ware7.000 tons per annum. collaboration to include an additional 4 MW houses and a technical service and equipment Additional benefits include: reduction in on four Coca-Cola Hellenic sites in the near centre. nitrogen oxide emissions to the atmosphere, future. Parent company Coca-Cola Hellenic acoustic isolation of the entire structure, and “We are successfully working with CCH on Group is one of the largest bottlers of Cocarecovery of CO2 produced in the process for a number of innovative energy projects as part Cola products in the world, and the biggest in industrial use. of its sustainability initiative, and we are Europe. Coca-Cola Hellenic operations span The Nogara plant will utilise approximately pleased now to be collaborating with USO to 28 countries, serving more than 560 million two thirds of the energy generated with the furnish rooftop solar solutions as an important people. The company is headquartered in remainder feeding into the national grid. element toward this goal,” says Joseph Brandt, Athens and listed on the Athens, New York president and chief executive of and London stock exchanges. J Innovative Energy Projects ContourGlobal. “The Uni“This is the first of three cogeneration plants Solar solutions are ideally suitthat we are building in Italy and it highlights ed for these projects because our responsibility to the environment, to the they meet both our financial region and to the people of Veneto. But it is metrics and CCH’s requirenot our only commitment to sustainability. In ment for low impact on the the coming months we will be introducing rooftop. We expect to quickly photovoltaic panels in all production sites complete the first stage of this across the country,” says Ulrik Nehammer, project and then extend our managing director of Coca-Cola HBC Italia. co-operation with USO to ContourGlobal and commercial photo- develop additional systems to voltaics expert Energy Conversion Devices, meet CCH’s objectives.” through its wholly owned subsidiary United Coca-Cola Hellenic and ContourGlobal are building 15 cogeneration Solar Ovonic (USO), are co-developing Italian Business rooftop solar systems for buildings in Italy Coca-Cola HBC Italia is the plants in 12 countries.
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I INDUSTRY FOCUS
Innovation and Investment at Heart of UK Food and Drink Industry Success n ongoing commitment to innovation and high-value production are key reaA sons why the UK’s food and drink industry has emerged from recession in better shape than many other manufacturing sectors, according to a new report commissioned by the Food and Drink Federation from the Institute for Manufacturing at the University of Cambridge. From May 2008 to May 2009, the production index for food and drink fell by only 1.9 compared to 13.1 for manufacturing overall – a clear indication of the industry’s resilience. “We have placed innovative research and development at the heart of our industry and continued to invest in our products, our factories and our people in a hugely challenging economic climate – and are now well-placed to capitalise on these strong foundations as the country emerges from recession,” says Melanie Leech, director general of the Food and Drink Federation. “We are a high value added sector offering world-beating capabilities and a rich range of career choices. The Government can place us with confidence at the heart of its strategy for recovery.” Focus on R&D The UK food and drink industry invests more than £1.1 billion a year on R&D - a comparable level with the automotive sector. It has launched 1,500 new products each quarter since the beginning of 2008.
As well as NPD, the UK food and drink industry has expended considerable resource in responding to consumer demands for products that are lower in salt, fat or energy. UK food products are also in demand overseas – 2009 saw the 5th consecutive rise in food exports, growing in value by 4.4% to £9.65 billion in 2009, significantly outperforming other manufacturing sectors, which experienced an 11.8% slump in overseas sales. Increasing Investment Indeed, the food sector has been one of the most resilient manufacturing sectors in terms of output during the recession and FDF members are confident about increasing their investment in UK production facilities in the next three to five years. Business expenditure by the food and drink industry also supports its increased commitment to investment. According to ONS time series figures, between Q1 2009 and Q1 2010, UK manufacturing business expenditure dropped by almost 25%. Within the same time frame, the food and drink industry increased its business investment by 7.2%, raising its percentage of total manufacturing business expenditure from 13% to 19%. The report also shows that: • 65% of UK food and drink manufacturers have more than 75% of their produc-
The food sector has been one of the most resilient manufacturing sectors in terms of output during the recession.
•
• • • •
tion in the UK. UK manufacturers also invest heavily in UK design and research work, with very similar percentages to UK production; Nearly 40% of UK food and drink manufacturers plan to increase investment in production and research and design over 3-5 years; 94% of employees in the UK food and drink sector are full-time; UK food and drink employees are paid well above the national average; Average tenure within the food and drink industry is 9 years; 20% of employees are graduates. J
I BEVERAGES
GSK to Launch Lucozade Brand in the US K-based global healthcare group U GlaxoSmithKline is planning to launch its Lucozade energy drink in the US, which is the world’s biggest nutritional health market. The Lucozade brand, which had sales of £376 million in 2009, is currently predominantly sold in Britain and Ireland. However, it was recently launched in the vast Chinese market, after GSK signed an agreement with President (Shanghai) Trading Co, a trading arm of UniPresident China Holdings, a leading food and beverage company in China. The moves into China and the US are in line with GSK’s goal of increasing its presence in emerging markets of the world. Andrew Witty, chief executive of GSK, plans other launches through partnership 36
deals in markets such as Mexico and Brazil. Indeed, the roll out of Lucozade is part of his wider strategy of creating a global and diversified business. Investment in the consumer business, which in the past had been considered a candidate for disposal, is now seen as means of growing GSK’s FOOD & DRINK BUSINESS EUROPE, JULY 2010
overall sales. The Lucozade brand along with Ribena and Horlicks are part of GSK’s Nutritional Healthcare division. Although the Nutritional Healthcare division is only a small part of GSK’s global operation, which achieved pre-tax profits of £7.9 billion on sales of £28.4 billion last year, its is still a sizeable and lucrative business, armed with its powerful brands portfolio. GSK is the third biggest player within the £6.2 billion UK take-home soft drinks market, behind leader Coca-Cola Enterprises and second ranked Britvic. The top three players account for almost half of this market. Lucozade was the second biggest brand within the take-home market last year and Ribena was in seventh place. J
I COLOURS
DD Williamson Launches Innovative Product in Europe D Williamson has developed an acidD proof, Class One caramel colour for customers in Europe. The darkest Class One caramel colour in DD Williamson’s product line, the new product provides stability below pH 2.5 and in alcohol up to 65% ABV. Customers may label ‘Colour Plain Caramel’ or ‘Burnt Sugar’ depending on the function the product is serving in the food or beverage application. “Flavour and beverage developers can now select a darker, Class One with acid stability,” says Greg Kreder, product development scientist. “It is minimally processed and demonstrates superior stability in acid compared to standard Class One caramel colours.” If colour represents the purpose of the new product in the customer’s application, then ‘Colour Plain Caramel’ is a label option. If flavour represents the purpose, then ‘Burnt Sugar’ is a label option. The European Technical Caramel
American market. For a sample of Caramel Colour 520 or Burnt Sugar 720, please contact your DD Williamson sales representative or e-mail info@ddwmson.com. DD Williamson manufactures caramel colour in Manchester, UK; Cork, Ireland; and four additional facilities located on four continents.
Association, chaired by DD Williamson’s Barry Foley, agreed on ‘decision-tree’ labelling of Burnt Sugar in November 2009. The company has also recently announced the product to the North
FOOD & DRINK BUSINESS EUROPE, JULY 2010
Colour With Confidence DD Williamson's wide array of natural colouring, along with its sought after caramel colour, helps sell 1.5 billion servings of foods and beverages every day. DD Williamson improves the allure of foods and beverages through visual appeal. A trusted and recognised provider of colour solutions for the food and beverage industry, the company operates ten manufacturing sites on five continents. Visit www.ddwilliamson.com for more information. J
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Colour Measurement Solutions From Think Stothard hink Stothard provides instruments T that duplicate how our eyes see colour and appearance. They measure your product’s colour and overall appearance and give numerical values that correlate to what you see. These objective measurements optimise the confidence of your quality decisions. Think Stothard offers expertise, experience and a range of quality products and solutions, including portable instruments for measuring raw materials, bench top instruments that will be based in a laboratory and online instruments that are built into the production line. The company can also create custom made systems that will enable the most difficult and non-uniform products to be easily measured. Think Stothard supplies Hunterlab Colour & Appearance instruments that were designed and created by Richard Hunter, the founder of the LAB colour
scale some 60 years ago for the Procter & Gamble company. These instruments can measure quite complicated applications such as food, chemicals and pharmaceuticals. Food and Drink
Think Stothard provides solutions that measure reflected and transmitted color/colour of food and drink products. The company’s quality control tools give numerical values that correlate to what you see and are ideal for measuring raw materials through to the final product. These include liquids such as sauces, juices, alcohol and solids such as spices and meats, as well as non-uniform products such as cereals and snack foods. Think Stothard looks after the complete process for its customers and enables them to specify the colour/appearance, create the colour/appearance and keep the
colour/appearance consistent by using either a portable, benchtop or online instrument. Think Stothard offers quite an extensive range of benchtop and online instruments that work alongside each other and can report the same values - a bonus when you are trying to keep the production line, inline with research and development and quality control. For further information visit www.colourmeasure.com. J
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Lovibond Tintometer Focuses on the Food and Drink Industry he Tintometer Ltd has been at the foreT front of technical innovation for the colour measurement of liquids and solids for 125 years and has recently developed and refined a number of technologies specifically tailored to the requirements of the food and beverage industry. Founded in 1885 by Joseph Lovibond, a brewery owner who devised the ‘colorimeThe Tintometer Ltd has just launched its new ter’ as a means of ensuring the quality of his PFXi series of high precision spectrobeer, the company has become widely photometric colorimeters. accepted as an international expert in the field of colour measurement and colour analysis. developing products specifically for this The company’s colour measurement and market.” analysis systems and instruments are widely used across the full spectrum of the food Remote Calibration and Maintenance and drink industry, including the edible oils Via the Internet and fats, beer, soft drinks, bakery, flour The Tintometer Ltd has just launched its milling, sugar, biscuit and confectionery new PFXi series of high precision specsectors. trophotometric colorimeters, which introSold under the respected Lovibond® duces a unique concept in liquid colour brand name, the current product range measurement - the new Lovibond® RCMSi incorporates both visual and automated technology (Remote Calibration & instruments, reference liquid and coloured Maintenance Service via internet). This new glass standards and a variety of precision technology offers the capability for remote fused cells, along with spectrophotometers calibration and servicing via the internet for transmission and reflectance; colorime- eliminating any costs and time delays associated with servicing and guaranteeing comters and colour comparators. With food and beverage processors pliance with standards. RCMSi is the process in which a number increasingly demanding a scientific, precise and certifiable means of measuring and of tightly controlled calibration liquids are analysing the colour of their products, The measured in a 50mm cell via the Tintometer Ltd has recently developed Calibration function of a PFXi. The data is communicated via the internet to a secure industry specific solutions. “Colour measurement is in common use server and compared to Master Data. If the in many industries and, while some of the data passes within tolerance, then a certifiexisting technology will transfer to the food cate of calibration is e-mailed to the user. and drink industry, some will need refining This allows The Tintometer Ltd to ensure a to meet the specific requirements of food PFXi instrument is operating correctly and and drink processors,” explains Matthew is fully traceable to national and internaRussell, sales manager-colour at The tional transmittance scales using ISO17025 calibrated reference Tintometer Ltd: materials. “There are other colour measurement New Digital companies but they Imaging are mainly focused on Technology textiles, graphic arts Based on innovative and the automotive digital imaging techindustry and not on nology, the newly the food industry. We introduced Lovihave a good underbond® CAM-Systanding of the needs stem 550 is particuof the food and drink The Lovibond® CAM-System 550. larly well suited to industry and we are FOOD & DRINK BUSINESS EUROPE, JULY 2010
measuring products with non-uniform or variable colour properties, such as biscuits and sweets, which cannot be measured easily with conventional colorimetric spectrophotometers. The Lovibond® CAM-System 550 is designed for the assessment and control of product quality and enables the user to decide quickly and objectively whether a product meets acceptable colour and appearance criteria or if it has undesirable defects. On-line Colour Analyser
Another recent development by The Tintometer Ltd is the Lovibond® TA4 Online Colour Analyser, a system designed for the ‘real time’ continuous analysis of colour within a production process environment, such as edible oils refining. The Tintometer Ltd has focused on developing a new generation of on-line analysers that use diode array spectrometers, which measure across the entire visible spectrum, between 380 nm and 780 nm down to wavelength intervals as small as 1 nm. The result is, the TA4 on-line is a highly accurate spectrophotometric system that can be used for the measurement of constituent concentrations, early detection of trace contaminants and quality assurance analysis. In addition, analytical results can be fed back for automatic process control and optimisation. Real-time analysis eliminates the delay in obtaining results, often avoiding costly rework of product processed out of specification. “There are other systems available but they are typically limited to one or two wavelengths – they are not a true spectrophotometer which analyses the whole colour spectrum,” Matthew Russell points out. Problem Solving
In introducing new techniques to bring colour measurement and quality control to an even higher level, The Tintometer Ltd works closely with its customers. “If food or drink processors have any colour measurement issues or problems, we can usually solve them by analysing their samples in our fully equipped colour laboratory and then make appropriate recommendations,” he says. J 39
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Controlling Product Colour With DigiEye he colour and visual appearance of food T has a major influence upon the consumer’s decision to purchase and maintain brand loyalty. In the eyes of the consumer, a direct correlation exists between the colour and appearance of food and it being, ‘fit for purpose’, eg of good quality, having nutritional value and freshness. This creates a significant quality control challenge for food producers to ensure their consumer’s visual expectations are met and continually maintained in an increasingly competitive and complex industry with its geographically disparate supply chain. Controlling product colour would be incredibly easy if all foods were simple, homogeneously coloured items, but they are not. They are irregularly shaped with uneven surfaces, some have an inherent sheen, are often multi-coloured and can be viscous or semi-viscous liquids.
DigiEye – Non-contact & non-destructive Colour Measurement of Food.
Traditional colour measurement instruments give satisfactory measurements for foods which are smooth, uniform and of solid structure. However for heterogeneous items, as are the vast majority of food products, the restrictions and limitations of these types of instruments accentuate the need for a method of measuring colour unrestricted by product shape, colour or form. The DigiEye system, manufactured by VeriVide, is a non-contact, non-destructive digital imaging system, with many diverse and proven applications. It is designed specifically to measure the colour of items previously considered immeasurable and is ideally suited for the heterogeneous array of foods and ingredients. It offers accurate, quantifiable colour measurement from raw 40
DigiEye can make comparative colour measurements of specific areas of interest e.g. colour of meat but excluding the areas of fat.
material to end product, supported by colorimetric data and colour accurate product images, all of which can be communicated electronically. The diverse applications include the creation of highly colour accurate photographic standards and specification sheets, post harvest shelf life colour stability analysis, visual inspection and instrumental measurement for quality control and quantifiable and unambiguous tolerance management. The systems offer significant and tangible benefits over traditional instrumentation techniques, in terms of scope, accuracy, repeatability and flexibility, creating substantial production efficiencies and real cost and time savings not previously realised by either R&D or commercial enterprises within the food sector. One of DigiEye’s applications is the ‘Colour Clustering’ function which automatically groups pixels of the same colour together to facilitate calculations of the percentage distribution of the surface characteristics of the chosen sample. Dr Martin Whitworth, at the UK based
Original image (left) and the analysed DigiEye image (right) – with permission of Campden BRI.
FOOD & DRINK BUSINESS EUROPE, JULY 2010
food & drink research organisation Campden BRI, used this DigiEye function, with additional software, to identify the differently coloured regions of a slice of cherry cake and objectively measure the visual quality attributes of the product; crumb colour and uniformity, the colour, size and number of the cherries and the crust thickness. Dr Whitworth comments: “The cherry cake example illustrates very well how we are able to use the DigiEye System within Campden BRI to apply image analysis methods to identify regions of interest and to make a variety of measurements from these types of images in project work for food industry clients.” Warburtons, the UK's largest independent baker, use DigiEye to create objective, colour accurate, photographic standard for each of their products, helping to deliver consistent product quality to their consumers. Warburtons recognise the importance of having one unequivocal quality standard, towards which everyone within their company can strive. These DigiEye generated standards allow the entire bakery team to see exactly how each finished product should appear in terms of the visual quality characteristics; shape, dimensions, the quality of the packaging and product code identification and of course, the bake colour which Warburtons acknowledges can be quite subjective. The use of DigiEye removes this subjectivity, making possible further improvements to the visual consistency of Warburtons products. This greatly assists in the ultimate aim for any food company - consumers are able to buy product in store which conforms to the colour and appearance they want and expect, every time. Warburtons have noted tangible improvements in product consistency since the introduction of the DigiEye System; everybody now works to the same defined standards and there is a greater awareness of what the standards actually are, supported with the colour accurate visuals of each product and most significantly, the bakery team now has greater confidence that their customers are receiving the quality they want, every time. J
I PROJECT MANAGEMENT
TSL Projects Completes New Jersey Dairy Facility The construction of a new £9.5 million state-of-the-art dairy at Trinity, in Jersey, is now complete and Jersey Dairy has commenced production marking the dawn of a new era in the Island's agricultural history. K-based high care construction company TSL Projects was appointed as the main contractor and has worked with the forward-thinking Jersey Dairy management team to plan specify and construct the turnkey facility capable of The new £9.5 million state-of-the-art dairy at Trinity, in Jersey. taking the business to the next stage in its development. Head of marketing and sales Christopher TSL Projects won the contract in the face Journeaux adds “The new dairy will allow of significant competition from some of the us to consider a whole raft of possible new industry’s major players. The purpose-built products.” 3,000 sq m plant was completed during a Jersey Dairy’s project manager Andy Cox rapid and smooth ten month construction worked very closely with TSL Projects and period and is built to the latest hygiene their team and he further comments: “It is standards demanded by regulatory authori- state-of-the-art, so it will be more efficient, ties and major retailers. with a better designed layout, the potential “The move is an important step to to produce greater volumes while offering enhancing the future of the Island’s dairy significant improvements on the environindustry and we are thrilled with our new mental impact and significant flexibility for site and believe it will be a focal point for the future.” regeneration,” says Eamon Fenlon, managTSL Projects managing director Jackie ing director of Jersey Dairy. Wild comments: “This is a significant step change for the co-operative members, management and staff of Jersey Dairy. We have worked very closely with the management team to provide an efficient, environmentally sound facility that we are all very proud of and it will be a credit to the island for many years to come.”
vices including steel fabrication and erection (from temporary works to full portal frames) including a stainless capability, demolition and site strip out, groundworks, equipment removals and relocations. It is a given that food construction projects are fast track whether they are internal refurbishments, extensions or new build. TSL Projects has always understood this and has specifically developed this range of skills to enable a rapid start to projects that is fully under the company’s control enabling a ‘Start Right – Stay Right’ philosophy. The overall principle is to manage all the work faces so that when a specific work package is due to start, all the preceding work has been completed in readiness.
Unique Skills This achievement marks one of the latest significant projects successfully completed by TSL Projects. Based near Maidenhead, just ten miles from Heathrow Airport, the company is now in its eighth year and rapidly becoming one of the leading companies specialising in high care construction projects in the food industry, and also the pharmaceutical and high tech manufacturing sectors. As part of the Tonroe Group, TSL Projects not only fulfills the role of a main/principal contractor but in addition, through its sister company Tonroe steel, can provide a unique wider range of ser-
The confidence that this approach generates has led to high levels of repeat business and direct negotiation of additional contracts and, in a recent example, a two year £20 million term agreement to refurbish a complete production facility whilst maintaining full production!
U
The fresh approach taken by TSL Projects has led to significant growth in the last eight years involving a wide range of projects in the dairy, meat, snack food, bakery, condiments and beverage sectors.
FOOD & DRINK BUSINESS EUROPE, JULY 2010
Forward Thinking The fresh approach taken by TSL Projects has led to significant growth in the last eight years involving a wide range of projects in the dairy, meat, snack food, bakery, condiments and beverage sectors. The company’s approach is to work in a collaborative, open way that provides full 41
visibility of project costs combined with innovative contractual approaches which in some cases provide a shared savings formula. These approaches are designed to minimise cost and time whilst maintaining the correct quality for the specific built environment being considered. All projects are different and have their own challenges. Budgetary, time and technical issues will arise on any project and it is the proactive approach to achieving the right solution that has helped to develop the reputation of TSL Projects as a ‘can do’ company. Some examples of this ethos are: In Northamptonshire, Phase 1 of a significant development of a cooked meats facility had been completed and handed
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over. Whilst construction was progressing on Phase 2 there was an unfortunate fire in the processing area of Phase 1. TSL directors went immediately to site to assist the client and the fire service in the fire containment and then subsequently provided significant assistance with the resulting rebuild – all this whilst construction proceeded on Phase 2! The first phase of the complete regeneration of a dairy site in Somerset involved complicated foundations on a brown field site immediately adjacent to a river. Significant buried obstructions were discovered that necessitated a rapid redesign of the foundation scheme which TSL initiated and
FOOD & DRINK BUSINESS EUROPE, JULY 2010
advised on. The project was completed on time ready for internationally sourced equipment to be installed.
By working with major international companies such as Ardo, Bakkavor, English Provender Company, Heinz, Walkers, Uniq, TMI Foods, Anglo Beef Processors, Jersey Dairy to name a few, TSL Projects can provide a wide range of specialist services and help to transform those early ‘what if’ thoughts into a completed facility that everyone can be proud of. It would seem that TSL Projects has a well deserved role in the food sector and through an open and innovative approach to high care construction projects is well placed to continue to expand and serve existing and new clients for many years to come. J
I PROJECT MANAGEMENT
Coriolis Appoints New Directors ike Shelton, director of Coriolis, the M UK-based project management specialist, has recently taken the decision to step down from the board to pursue other interests. Mike Shelton joined the company in January 1998. He has been instrumental in the development and growth of the business along side managing director, Mark Dudley. The departure of Mike Shelton has created the opportunity for the restructuring of the board. Stepping across from his current role of projects director, Mark Schubert, becomes a board director with additional responsibilities for capital investment projects management. Mark Schubert joined the business in 1998 and has over ten years of consulting experience. He is a qualified mechanical engineer and is also a CIMA trained accountant. Also stepping onto the board is John Fenton, who joined Coriolis in 2002 as projects director. John Fenton will have responsibilities for the Lean, Systems and
Mark Schubert.
John Fenton.
Implementation practices. John Fenton has a Masters in Engineering Science and has been in the management consultancy industry for over twenty years. “These changes signal our ambition, capability and passion to develop our people and I would personally like to thank Mike for his contribution and support as he
takes the time to pursue other interests and wish Mark and John every success in their new roles” says Mark Dudley, managing director of Coriolis. The appointments are effective from May 1st and will be based at the head office in Nottingham. For further information visit www.coriolis.co.uk..urther information visit www.coriolis.co.uk. J
Food Packaging From Abco Kovex in Ireland ublin-based Abco Kovex is a leading D importer and distributor of packaging materials and machinery. The company’s goal is to provide complete packaging solutions to industry, whilst reducing the amount of packaging material required to pack, ship and protect products successfully. Abco Kovex offers an extensive range of food packaging. Two such products are Huthtamkai Moulded Fibre Pulp Trays and Omni PVC cling film. Huhtamaki is the world leader in environmentally-friendly moulded fibre/pulp packaging, producing egg packaging, fruit trays and berry boxes, apple and melon trays, wine bottle carriers, can carriers, dairy trays and medical disposables. For Huhtamaki’s Food Service division cup carriers and the premium Chinet disposable tableware are manufactured, the latter in a special, proprietary moulding process. Huhtamaki develops and manufactures various customized three-dimensional protective packaging shapes. Cushioning trays, buffering parts and positioning trays for display presentation are produced for example for the electronics and consumer goods industries. Huhtamaki Molded Fiber Technology sup-
plies Leotech fibre moulding machines, finishing equipment and process technology that is used to produce moulded fibre products. Egg tray and carton moulds, spare parts and technical and commercial support are part of the services rendered. Huhtamaki Paper Recycling collects, processes and recycles recovered paper. This recovered paper trade extends worldwide, from Europe to the Far East and the USA.
• Premium stretch film for meats and perishable products • Keeps freshness and flavours at their peak • Optimal clarity ensures that visual is combined with product quality and freshness • Broad range of innovative packaging films • Conforms to irregular shapes • Forms tight, wrinkle free packages • Manufactured in ISO- and AIB-certified facilities.
Abco Kovex offers a range of PVCStretch/Cling Films:
For further information contact Abco Kovex, Swords Business Park, Swords, Co Dublin, Ireland. Tel +353 1 807 7600, Fax +353 1 807 7650, Mobil Mobile +353 87 230 3049, E-mail cherrity@abcokovex.com, Website www.abcokovex.com.J
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I RESEARCH & DEVELOPMENT
UCC/Teagasc Strategic Alliance in Food Research CC and Teagasc have enjoyed a long history of collaboration in food science U and technology, and by bringing together the resources of the two largest State providers of food R&D in a new and managed Alliance, a major step has been taken towards establishing a single co-ordinated food research programme to support innovation and development in the Irish food industry. The Alliance will bring an already vibrant interaction between the two organisations to a new level with: • joint strategic planning for food research; • joint education, training and skills enhancement programmes; • a common approach to supporting key stakeholders (the consumer and the Irish food industry); • joint staffing appointments; • co-development and sharing of technology platforms which will avoid any duplication in terms of personnel, equipment or facilities; • a common approach to funding .
Benefits of the Alliance
The formation of the Alliance will create a critical mass of expertise (more than 200 researchers/postdocs/postgrads) across Food Science and Technology, Nutrition, Health, Consumer Behaviour and Business; will allow for the sharing of very considerable physical resources (equipment, analytical capability and pilot scale production facilities); and will be the driver for streamlined and more effective engagement with the food industry. It will involve the development of a single point of contact for industry in accessing the combined resources of the two organisations and will create a ‘Food Hub’, which will further mark Ireland as a world centre for fundamental and applied food research focused on excellence, innovation, development of human capital and technology transfer to industry. The core strategy will be to establish a common food research programme in consultation with industry and government agencies. The research strategy will focus on three main thematic areas:
* Food and Health, * Food Science and Technology, and * Food Business and the Consumer. Under these themes, the Alliance will build on the existing strengths of the partners, will share minds and resources, will apply its combined technology platforms to supporting the research agenda and will develop new programmes in consultation with stakeholders (including both industry and the consumer). The Alliance will seek to engage fully with the national and international food sector in the development of its research programme. It will develop linkages in technology transfer to the food industry and encourage and support the development of commercial outputs through intellectual property rights, licensing, and the establishment of spin-out companies. Over time, it is expected that other research organisations will become part of the Alliance, further consolidating publicly-funded R&D for the benefit of industry. J
UCC / Teagasc Strategic Alliance in
Food Research
Research, Innovation, Training & Technology Transfer for Ireland's Food Industry
For further information please contact:
UCC: Professor Patrick Fitzpatrick e-mail headofcollege@sefs.ucc.ie Teagasc: Professor Paul Ross email paul.ross@teagasc.ie
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I RESEARCH & DEVELOPMENT
Teagasc and UCC Launch Strategic Alliance in Irish Food Research A major step towards establishing a single food research programme in Ireland to support innovation and development in the food industry has been taken with the launch of the UCC/Teagasc Strategic Alliance in Food Research. his new alliance International Standing moves collaboraIn addition to establishing a tion between the single portal for food compatwo organisations nies in Ireland, enabling in food science and techthem to more easily access nology to a new level, the world-class research and through the sharing of innovation expertise in both resources, working to a organisations, the Alliance is joint research programme expected to further strengthand the establishment of a en Ireland’s reputation as a single portal for food comworld centre for fundamental panies to access internaand applied food research. tional quality research and “UCC and Teagasc have a innovation. long history of collaboration. “The food industry has This has led to some of the been identified as a major most important, internationdriver in the future of ally recognised, food research Ireland’s economy. The programmes in Ireland, such UCC/Teagasc Strategic as the SFI-funded Alimentary Alliance in Food Research Pictured at the launch of the UCC/Teagasc Strategic Alliance in Food Research were (left Pharmabiotic Centre (APC) will ensure that Irish food to right):: Professor Michael Dowling, Chairman, UCC/Teagasc Strategic Alliance; and the Enterprise Irelandcompanies have improved Brendan Smith, TD, Minister for Agriculture, Fisheries and Food; Professor Gerry Boyle, funded Food for Health access to excellent scientific Director, Teagasc; and Dr Michael Murphy, President, UCC. Ireland (FHI),” points out capability, facilities and President of UCC, Dr critical mass that will support the delivery consumer. The resources of both organisa- Michael Murphy. “The Alliance will proof products, processes and jobs for the Irish tions will be deployed to build a common vide a platform for strengthening and deepeconomy,” explains Minister for food research and innovation programme. ening the relationship between our two Agriculture Fisheries and Food, Brendan More than 250 researchers, post doctor- institutions, which will enable us jointly to Smith, TD. ates, and post graduates are currently work- take a longer-term approach to strategic The Irish agri-food industry is Ireland’s ing across a wide variety of disciplines in planning for food research, in close comost important indigenous sector, with food science, food technology, nutrition, operation with our industry partners.” 800 companies employing over 45,000 food for health and food business. The Chairman of the UCC/Teagasc Strategic people and producing over a third of the Alliance creates the opportunity to share Alliance Steering Committee Professor country’s net export earnings from the pri- the research infrastructure and facilities Michael Dowling, says: “With an impormary and manufacturing sectors. According such as the pilot scale food processing facil- tant input from industry into the direction to Brendan Smith, collaboration between ities at Moorepark Technology and at of the food research programme, the industry and academia is “vitally important Teagasc Ashtown, the UCC processing hall Alliance can play a critical role in conto the growth of the industry into the and the new PRTLI–supported GMP man- tributing to the expansion of the food future.” ufacturing facility at UCC. industry, and to the future economic He adds: “Since 2000, my Department, “The enhanced capability will permit growth of the country.” through the Food Research Institutional both UCC and Teagasc to accomplish goals Funding from the Department of Measure, has awarded a total of Eur140 together that they could not achieve sepa- Agriculture, Fisheries and Food through the million to food research projects across the rately,” comments Director of Teagasc FIRM programme has been hugely imporisland of Ireland, of which Teagasc and Professor Gerry Boyle. “The launch of this tant in developing collaboration between UCC have been awarded funding of Alliance represents a further step in my goal the institutions and helping to build the Eur86.5 million.” of building a culture of collaboration internationally-competitive research capacibetween Teagasc and other organisations to ty Ireland now enjoys in food research. The Focus on Three Thematic Areas generate critical mass that will yield eco- partners in the Alliance have benefited to The UCC/Teagasc Alliance will focus on nomic dividends to the industry. I would the tune of over Eur80 million in the last three thematic areas - food and health, food hope that other institutions will participate ten years or so and resulted in over 250 science and technology and food and the in this Alliance in the future.” joint peer-reviewed publications. J
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I INTERNATIONAL TRADE
Increasing European Focus For Irish Food and Drink Exporters lthough the UK remains the biggest market for Irish food and drink exporters, mainland Europe is continuing to grow in A importance and will play a key role in the future development of the Irish food and drink processing industry. The value of Irish food and drink exports declined by 12% last year to Eur7.12 billion, according to Bord Bia, the trade development and promotion agency for Ireland’s food and drink industry. The sharp fall was due to a sustained decline in the value of sterling combined with the economic downturn and severe difficulties in the global dairy market. Despite sales to the UK decreasing by 15% to Eur3.1 billion, this market still accounted for 44% of total Irish food and drink exports last year. However, the proportion of exports destined for other EU markets increased to 34% in 2009, from 32% in 2008, helped by a higher share of beef exports destined for the Continent, together with a stronger focus on the region by prepared foods manufacturers. Indeed, Ireland’s positive image as a food producer and its proximity to the premium European market will form the basis of the Irish food and drink industry’s export-led development strategy in the future. According to a new report entitled ‘Pathways for Growth’ prepared for Bord Bia by Professor David Bell and Mary The proportion of Irish food and drink exports Shelman of the Harvard destined for EU markets, excluding the UK, Business School, Ireland increased to 34% in 2009, from 32% in should adopt a strategy 2008, of developing a worldclass agricultural industry by 2016 and set itself the goal of becoming the most efficient, most highly innovative food and drink country in the world. The report states that Ireland has an enviable starting point in the race to produce exactly the type of food that a growing number of consumers are demanding. The agriculture and food industry plays an important role in the Irish economy and remains its largest indigenous sector accounting for almost 9% of employment and 10% of exports. As much as 65% of manufacturing exports by Irish-owned firms are estimated to consist of food and drink. The long-term outlook for the sector, with its high export orientation, remains positive. Bord Bia is predicting some recovery in exports this year due to the potential for stronger revenues from the key dairy and meat sectors, and investments by prepared food companies to broaden their market presence on the Continent. J 46
New Dublin-Europe Ferry Link Launched nternational shipping company Compagnie Luxemburgeoise de I(Ro/Ro) Navigation (CLdN) has introduced the first direct Roll-on-Roll-off sailing from Dublin to Holland and Belgium, following the launch of its new Eur48 million MS Mazarine, a state-of-the-art Ro/Ro cassette, trailer, car and truck ferry. The new vessel is 195.4 metres in length with a gross tonnage of almost 26,000 tonnes and has a speed of 18.5 knots. CLdN has introduced four new sailings between Dublin Port and the ports of Rotterdam in The Netherlands and Zeebrugge, Belgium, which has increased the number of Ro-Ro units handled through Dublin Port. The new sea links also demonstrates the further development of the ‘Motorways of the Sea’, an EU-wide initiative promoting a modal shift of goods from road to sea and the international trend towards larger, more efficient vessels. The MS Mazarine is one of six sister vessels employed by CLdN. With three kilometres of truck lanes, the vessel can carry 360 trucks and double stacked cassettes. According to Christian Cigrang, chief executive of CLdN, the investment of Eur48 million “demonstrates our commitment to providing our customers with a reliable, direct service to and from continental Europe and the heart of Dublin city.” Enda Connellan, chief executive of Dublin Port Company, comments: “This significant investment by CLdN is an endorsement of Dublin Port as a key strategic access point to Ireland’s largest market and demonstrates the importance of the strong trade links between Ireland and continental Europe. It also highlights the trend towards larger, more efficient vessels that will require deeper water to service.” J
FOOD & DRINK BUSINESS EUROPE, JULY 2010
Tetra Pak CPS Takes an Educated Approach Tetra Pak CPS is putting the finishing touches to a new multi-million pound state-ofthe-art teaching dairy before its launch as a 'hands-on' training facility and resource for industry. Custom built at Reaseheath College in Cheshire, the modern training unit is already playing a major role in the groundbreaking dairy education initiative, Project Eden, which has been set up to provide higher level qualifications for those in the dairy processing and manufacturing industry. In order for the new training equipment to be used for commercial production, the Tetra Pak CPS team of specialist engineers is currently carrying out due diligence tests to ensure that all process parameters have been followed and that the machinery is safe to use for commercial production. For further information contact Tetra Pak CPS on Tel +44 (0)1935 818800 or visit www.tetrapakcps.co.uk. J
Oxoid Brilliance Bacillus cereus Agar Improves Detection of Micro-organisms in Food Oxoid reports that its agar for identifying Bacillus cereus (B. cereus) can accurately test food and beverages for this illnesscausing micro-organism. Brilliance Bacillus cereus Agar allows laboratories to significantly improve the detection and recovery of B. cereus. Food microbiologists in both manufacturing companies and research laboratories rely on Brilliance Bacillus cereus Agar for rapid identification of the bacterium. With Brilliance Bacillus cereus Agar, B. cereus 48
is quickly isolated, appearing as coloured colonies for precise identification. Food manufacturers can rapidly extract B. cereus if present, investigate the cause of the contamination and, if necessary, alert consumers. For more information about the Brilliance Bacillus cereus Agar, visit www.oxoid.com or speak to your local Oxoid representative, Tel +44 (0)1256 841144. J
Oxoid Brilliance Bacillus cereus Agar allows laboratories to significantly
improve
the
detection and recovery of B. cereus.
Next-day Listeria Results With BAX Listeria 24E Assays Oxoid now enables food microbiologists in Europe, Australia and Canada to obtain next-day Listeria results with the rapid DuPont Qualicon BAX System Listeria monocytogenes 24E and BAX System Genus Listeria 24E assays. The speed of these assays enables food manufacturers to obtain a ‘yes
or no’ answer before products are released from the factory. A recent outbreak of Listeriosis in Austria and Germany affected 14 people, four of whom died1. When Listeria is discovered in a food or environmental sample after a product leaves the factory, this can lead to costly product recalls and damage the reputation of the company. For further information contact Oxoid on Tel +44 (0)1256 841144 or visit www.oxoid .com. J Single Trip Bulk Bag Discharger Flexicon (Europe) has introduced to its permanent portfolio of bulk bag dischargers a dedicated option for processors or movers of bulk solids who receive raw material in flat bottomed, single trip, bulk bags. The system incorporates a receiving hopper with a centrally mounted, pyramid shaped cutter, designed to make the process of raw material discharge, quick, simple and cost effective. Using either a fork lift truck or a cruciform attached to an electric hoist, an operator positions the bag onto the discharge frame immediately above the pyramid shaped cutter. As it is lowered to sit on a dust confining, thick rubber membrane on all four sides of the hopper, the four-bladed cutter simultaneously splits the bag, bottom dead centre, enabling material to be gravity fed into the hopper. For further information contact Flexicon (Europe) on Tel +44 (0)1227 374710 or visit www.flexicon .co.uk. J
K-Tron’s Stainless Steel Receiver For Free Flowing Powders and Granular Dry Bulk Materials The K-Tron Premier 2415 Stainless Steel Receiver is designed to convey free flowing powders or granular dry bulk materials for continuous conveying applications such as hopper loading and loss-inweight refill applications that may not require a high level of sanitary design or frequent cleaning. The design includes a variety of discharge valve types including gravity flap, orifice slide gate and butterfly valve. The receiver body is made of stainless steel (AISI 304) with internal and external mill surface finish as standard. Models are also available in painted aluminum and units are equipped with quick-release clamps to facilitate easy clean-up, filter maintenance and fast disassembly. The 2415 receiver offers a conveying rate of up to 1000 kg/hr (2200 lb/hr). Other models in the 2400 series of receivers provide convey rates up to 6,800 kg/hr (15,000 lb/hr). For further information visit www.ktronprocessgroup .com. J
Food microbiologists can obtain next-day Listeria results with the rapid DuPont Qualicon BAX System Listeria monocytogenes 24E and BAX System Genus Listeria 24E assays that are available from Oxoid.
FOOD & DRINK BUSINESS EUROPE, JULY 2010
K-Tron Vacuum Receiver, Model 2415.