Food & Drink Business Europe

June 2010

Top 100 Food & Drink Manufacturers in the UK and Ireland

Food & Drink Business Website:

www.foodanddrinkbusiness.eu

C o n t e n t s

- 43-51 S USTAINABILITY

- 3 N EWS B RIEF

Coca-Cola Hellenic leads the way in sustainability and energy efficienty.

Business news from the UK and international markets.

R EGULARS - 4 B REWING & D ISTILLING Developments in the global alcoholic drinks sector.

PAGE 3

Energy & Environment. . 25, 28, 39, 49, 51

Uwe Tillmann, ce, Vion Good Group.

Developing a sustainable CO2 business model with carbon capture . . . . . . . . . . . . . . . . . . 51

P AGE 15

Ralph Findlay, ce Marston’s.

Processing & Manufacturing . 29-35, 41, 56 Understanding chiller efficiency . . . . . . . . . . 35

- 6 M ERGERS & A CQUISITIONS

Bottling & Packaging . . . . . . . . . 40, 59-64

Coverage of British and international deals.

- 9 C OVER S TORY The Top 100 Food and Drink Manufacturers in the UK and Ireland.

EasyFairs Packaging Ireland – 16 & 17 June 2010 – RDS, Dublin . . . . . . . . . . . . . . . . . . 59

PAGE 9

Robert Schofield, ce, Premier Foods.

PAGE 21

Robert Watson OBE, ce, Hilton Food Group

Information Technology . . . . 47, 53-55 Tight integration with your ERP is essential for your online strategy . . . . . . . . . . . . . . . . . . 53

Materials & Ingredients . . . . . . . . . . 56 Control & Automation . . . . . . . . . . . . . 57

PAGE 43

Doros Constantinou, ce, Coca Cola Hellenic.

- 20 D AIRY Dairy Crest delivers on key objectives

Managing Director: Colin Murphy Editor: Mike Rohan Sales Director: Ronan McGlade Advertising: Susan Doyle Senior Sales Executive: Paul Lees Production Manager: Susan Doyle Production Assistant: Jackie Kinch

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- 21 M EAT

Stefan Barden, ce, Northern Foods.

Constant capital investment crucial to Hilton Food Group’s continued success.

GlaxoSmithKline invests in drinks production.

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FOOD & DRINK BUSINESS EUROPE, JUNE 2010

1

N N E E W W S S Refocusing at Tate & Lyle as Profits Fall Tate & Lyle has announced a series of major organisational changes in the wake of a 7% drop in adjusted pre-tax profit to £229m on sales down 1% to £3.51b for the year ending March 31st 2010. The group incurred a loss before tax after exceptional items and amortisation of acquired intangible assets of £61m compared to a profit of £113m in the prior year.

Adjusted operating profit from the group’s value added ingredients business rose by 22% to £131m in contrast to a 22% fall in profit to £98m from primary ingredients. Tate & Lyle will now concentrate on its speciality food ingredients activities as it continues its shift away from its traditional sugar business.

“We are refocusing our strategy, with our speciality food ingredients business being the key focus of investment and long-term growth, as well as making a number of important changes to the group’s organisation,” says Javed Ahmed, the new chief executive of Tate & Lyle. “Through these changes, and a strong focus on operational excellence and execution, we will build the platform to deliver sustainable long-term growth.”

Hull ready meals facility following the loss of the site’s anchor customer, and the impairment arising from the group’s Swansea site, profit before tax was £7.4m, down from £12.1m in the previous year when restructuring items totaled £35.4m.

“Northern Foods has traded solidly in challenging market condtions. We expect these conditions to continue, but we remain well positioned for the future,” says Stefan Barden, chief executive of Northern Foods. “Even during these uncertain economic times we continue to invest in brands, cost efficiency and technology to deliver long term shareholder value supported by our strong financial position.”

2008 that helped to increase production volume. Parts of the Vion Food Group were restructured during the year, as the company invested in product innovation, and sought to develop synergies and improve efficiency.

Continued Progress By Cranswick Increased expenditure by the consumers on products such as air-dried bacon, premium sausages, fresh pork and ham has helped Cranswick to increase pre-tax profit on continuing operations by 22% to £43.8m

Cargill is reported to be planning to construct a $30m chicken processing plant in Russia.

With an annucal capacity of 18,000 tonnes, the new plant is expected to come on stream by the end of 2011.

Improved Results at Vion Netherlands-based Vion Food Group, which is Europe’s largest meat processor, has reported a cautious recovery in 2009 as net profit grew from Eur54m to Eur62m. The growth was due to a combination of product innovation, focused commercial activity, and cost reductions.

Turnover increased by 5% to Eur9b.

In spite of lower market prices, total turnover grew as a result of full year contributions from companies acquired in

Flat Sales and Underlying Profit at Northern Foods

Martin Davey, Cranswick.

chairman

of

on turnover ahead by 22% to £740m for the year to March 31st 2010. The UK meat processing group also reduced its net debt by £11.9m to £54.7m during the year.

“The company has continued to progress and has further established its presence in the UK food sector. There has again been significant investment in the group’s asset base to enable the organic growth of the business to be maintained,” says Martin Davey, chairman of Cranswick. “The company is well positioned to meet the increasing demand for UK pork products. The business has developed significant expertise in the supply chain, building on its origins in pig feed production and the rearing of pigs, and through acquisitions, joint ventures and organic initiatives it now has market leading positions in a number of categories.”

DAIRY Uwe Tillmann, chief executive and chairman of Vion Food Group.

decline in revenue from £1.648b to £1.63b for the year ended March 31st 2010, as strong sales growth of key brands and liquid milk to retailer was offset by planned lower sales of dairy ingredients and lower sales to doorstep and middle ground milk customers.

Adjusted profit before tax at the UK-based dairy group rose 5% to £83.5m. After adjusting for exceptional items and amortisation reported profit before tax was down 25% at £77.8m, which was chiefly due to the £50.4m exceptional gain on the sale of Dairy Crest’s stake in joint venture Yoplait Dairy Crest in the previous year.

FrieslandCampina to Expand in Vietnam

Cargill to Commence Chicken Processing in Russia

Javed Ahmed, chief executive of Tate & Lyle.

UK convenience food group Northern Foods has reported flat full year underlying profit of £39.2m on revenue slightly ahead from £975.2m to £977.0m. After restructuring items of £26.6m, primarily reflecting the closure of the

B B R R II E E F F

Dairy Crest Delivers on Key Objectives Dairy Crest has reported a slight

FOOD & DRINK BUSINESS EUROPE, JUNE 2010

Dutch dairy co-operative FrieslandCampina is investing $12m (Eur8.8m) in a major expansion of production capacity at its factory at Binh Duong in Vietnam. The expansion, which should be fully operational by 2010, is necessary to meet the increasing demand for dairy products under the Dutch Lady, YoMost and Friso brands.

The production plant in Binh Duong was FrieslandCampina’s first in Vietnam and has been operational since 1996.

Record Year For Robert Wiseman Dairies UK fresh liquid milk specialist Robert Wiseman Dairies achieved record levels of volumes, turnover and profits during its last financial year ended April 3rd 2010. Volume sales jumped by 9.1% to 1.77b litres, resulting in turnover increasing by 4.5% to £886.2m. Operating profit rose by 43.1% to £50.3m, including a £1.9m reduction in a previously imposed fine from the Office of Fair Trading, and profit before tax grew 59.9% to £49.2m.

The main contributing factor to the volume growth was the large gain with the Co-operative Group, which amounted to 116m litres of additional business and commenced in June 2009 following the collapse of co-operative Dairy Farmers of Britain.

The growth in volumes 3

N N E E W W S S resulted in Wiseman filling the second phase of development at its Bridgwater dairy in the south of England. Volumes at Bridgwater are currently running at the equivalent of 375m litres per annum and Wiseman is proceeding with the final phase of expenditure to take the overall capacity at the site to 500m litres per annum, at an estimated cost of £10m. The additional capacity will be available in November and, when utilised, will further improve operating costs and efficiencies at the site, as well as facilitating the growth in sales targeted over the next few years as the group continues its expansion in the south of England.

Meanwhile, Wiseman is to partner its biggest customer, Tesco, in its plans to continue the substantial growth in the sales of Tesco Pure milk which is filtered to be fresher for longer. Following discussions with Tesco about its plans for continued growth of this product type, Wiseman plans to invest £8.0m to double its processing and filling capacity for filtered milk.

Robert Wiseman, who is currently chief executive of Robert Wiseman Dairies.

FrieslandCampina to Concentrate Dutch R&D Royal FrieslandCampina plans to concentrate the majority of its Research & Development activities in the Netherlands at Wageningen. This will entail combining into one site the existing R&D operations at Deventer, Tilburg and Wageningen, which employ 250 professionals working on research and product and process development for consumer dairy, cheese and ingredients.

4

Acquisition of Glanbia’s Irish Dairy and Agri Businesses Rejected The proposed Eur299.6m acquisition of Glanbia’s Irish dairy and agri businesses by Glanbia Co-operative Society has failed to gain the necessary 75% support from members of the co-op. The transaction, if approved, would have given

John Moloney, group managing director of Glanbia.

Glanbia Co-operative Society, which owns 54.6% of Glanbia, full ownership and control of the Irish dairy and agri businesses but its shareholding in Glanbia would have been reduced to 20%. The disposal would have transformed Glanbia, increasing the streamlined group’s focus on international nutritional ingredients and cheese, while significantly improving its financial flexibility.

“We did not undertake this process lightly and of course, it is a big disappointment that it did not receive the necessary endorsement from the members of the society to take the deal forward. While it is important for us now to take some time to reflect on this outcome, we remain very confident of the underlying strength of the group’s businesses,” says John Moloney, group managing director of Glanbia.

B B R R II E E F F ket share gains across its core brands of Pepsi, 7UP, Tango, Robinsons, J2O and Fruit Shoot.

Group operating profit advanced 27.6% to £40.7m and the operating margin improved by 150 basis points from 6.6% to 8.1%. The largest element of Britvic’s business, GB & International, increased operating profit by 23.5% to £39.4m.

Despite the difficult trading conditions within the Irish soft drinks market, Britvic Ireland returned to profit and expects to mainly realise the remaining 2010-11 synergies of around Eur12m, announced in January 2009, this year.

“Britvic has put in another strong performance during the period, delivering double-digit growth in both operating profit and earnings,” says Paul Moody, chief executive of Britvic. “Our brands have continued to take market share across key categories. Our portfolio has also been further strengthened by the new GB innovation programme consisting of both Britvic and PepsiCo brand launches.”

He continues: “During the period we saw sustained market growth in GB, and recent conditions across the wider market have continued to demonstrate elements of recovery. However visibility in both GB and Ireland beyond the short-term remains limited.”

SOFT DRINKS Strong First Half From Britvic Britvic continues to outperform the British soft drinks market and has increased pre-tax profit by 39% to £27.8m for the 28 weeks ended April 11th 2010 compared to the corresponding period in the previous year.

Group revenue rose by 4.6% to £505.3m as Britvic made mar-

Paul Moody, chief executive of Britvic.

Brazilian Orange Juice Merger Two Brazilian orange juice producers - Citrosuco and Citrovita – are to merge. With annual sales of $1.1b, the combined group will become the largest orange juice producer in the

FOOD & DRINK BUSINESS EUROPE, JUNE 2010

world with the capacity to meet 25% of global demand.

The new joint venture will operate six factories in Brazil and one in the US complemented by eight shipping terminals at ports and eight ships. Brazil is the world’s leading producer of oranges, growing a third of global output, and is also the world’s top orange juice exporter.

Nestle Launches Pioneering Tea Machine System Nestle has launched Special.T, a pioneering tea machine system, designed to provide consumers at home with the highest quality portioned tea beverages.

Special.T offers a selection of 25 tea varieties - ranging from green, black, blue, red and white teas to flavoured teas and organic herb teas - which are carefully sourced from selected tea farms in China, Japan, Sri Lanka, India and South Africa.

Special.T by Nestle will be launched in France in September 2010 and will be exclusively commercialised via the internet, with orders shipped to homes or offices within 48 hours. In a second stage, Nestle plans the roll-out of Special.T in other European markets.

BREWING & DISTILLING European Volume Sales and Profit Down at SABMiller Helped by prices rises and cost efficiencies, SABMiller increased group revenue by 4% to $26.35b and EBITA by 6% to $4.38b, with margin growth of 30 basis points for the year to March 31st 2010. Lager volumes of 213m hectolitres were in line with the prior year on an organic basis.

In Europe, the group’s lager volumes declined 5% on an organic basis, as beer markets across the region contracted under severe economic conditions compounded by significant excise increases in some key markets. Against this backdrop, SABMiller gained market share in Poland and Romania and held share in the Czech

N N E E W W S S Republic and Russia. Despite the volume decline, robust pricing taken predominantly in the prior year, combined with cost efficiencies, supported constant currency EBITA growth of 4% on an organic basis. Reported EBITA declined 8% to $872m reflecting a significant weakening of central European currencies against the US dollar.

“Although the economic environment began to improve for some of our emerging market businesses in the latter part of the financial year under review, a broader recovery in consumer spending is not expected before the second half of the current financial year,” says Graham Mackay, chief executive of SABMiller. “Price increases will be taken selectively, predominantly in the second half, and we expect raw material input costs for the year to be level with, or marginally down on, the prior year. We will continue to implement our cost productivity initiatives while increasing investment in our brands. The group’s brand equities and its financial position remain strong and we are well positioned to take advantage of any improvement in trading conditions.”

Graham Mackay, chief executive of SABMiller.

New Finance Director at Diageo Deirdre Mahlan, currently deputy finance director of Diageo, will replace Nick Rose on the board as chief financial officer when he stands down on October 14th. Nick Rose will remain with Diageo until the end of December 2010.

Slight Increase in Profit and Sales at Marston’s UK regional brewer and pub 6

B B R R II E E F F

group Marston’s has improved profit before tax and exceptional items by 0.4% to £27.8m on revenue ahead by 0.6% to £309.2m for the 26 weeks ended April 3rd 2010, reflecting a modest improvement in trading conditions and consumer confidence. Underlying operating profit edged up 0.2% to £65.5m.

Marston’s is the UK’s leading brewer of premium cask ales and operates an estate of around 2,200 pubs and bars situated across England and Wales, comprising 1,688 tenanted or leased pubs, and 496 managed pubs.

“We are pleased with the encouraging performance of the business in the first half year.

The economic environment remains challenging, but there are two key areas which provide the basis for continuing outperformance in this market: our new-build programme for large managed pub-restaurants; and the introduction of innovative agreements in our tenanted and leased pub estate,” says Ralph Findlay, chief executive of Marston’s. “We are confident of meeting our expectations for the year as a whole.”

consistent, long-term growth.

During FY10, we significantly strengthened our position in the long alcohol drinks sector through the acquisition of the Tennent’s and Gaymers businesses for a total consideration of Eur268.6m,” comments John Dunsmore, chief executive of C&C Group. “Our intention to focus strategically on cider and long alcohol drinks is clarified further by our agreement to sell the group’s Spirits & Liqueurs business for a total consideration of Eur300m. The group’s strong underlying free cash flow generation and balance sheet strength will support the continuing development of a ciderled drinks portfolio.”

Recovery at Refocused C&C Group

MERGERS &

Helped by its recent acquisitions of the Tennent’s beer and Gaymers cider businesses, C&C Group has reported a 20.9% increase in operating profit before exceptional items to Eur89.5m on revenue up by 16.4% to Eur568.8m for the year ended February 28th 2010.

However, operating profit after exceptionals fell 11% to Eur89.5m and underlying revenue (excluding the impact of acquisitions) declined by 8.6%to Eur446.4m. Profit before tax was Eur78.8m against a loss of 65.8m in the previous year.

C&C’s core cider business increased volume sales by 5.9% year on year but excluding acquisitions cider volumes fell 2.4% - still a major improvement on the 14% slump in the prior year.

“Over the past 12 months, we have taken a series of steps to position the business to deliver

John Dunsmore, chief executive of C&C Group.

ACQUISITIONS

2 Sisters to Acquire Storteboom Group UK-based 2 Sisters, which is a subsidiary of Boparan Holdings, is strengthening its standing within the European poultry industry with the purchase of Netherlands-based Storteboom Group for an undisclosed price. The acquisition will be completed as soon as possible following appropriate merger clearance and approvals.

2 Sisters was established in 1993 by chief executive Ranjit Singh and still remains a privately owned company, supplying retail, food service and manufacturing companies worldwide, from sites in the UK, Holland and the US. The company has evolved from a small cutting operation to a world class food manufacturer, employing over 5,500 dedicated staff and annualised sales

FOOD & DRINK BUSINESS EUROPE, JUNE 2010

exceeding £750m.

Employing over 1,200 staff in Holland and Poland and with group sales in excess of Eur400m, Storteboom is well established within the European poultry market for fresh and frozen products.

“This intended acquisition is a strategic next step within our long-term business plan which is focused on growth through long term partnerships. The Storteboom Group and 2 Sisters’ existing Dutch business are complementary, providing an established platform to support expansion in Central Europe,” explains Ranjit Singh.

Bernard Matthews Acquires Lincs Turkeys Bernard Matthews has strengthened its position within the UK turkey market with the acquisition of Lincs Turkeys. Specialising in free range and fresh turkey products, Lincs Turkeys produces about 1m turkeys per annum, of which a about a third are free range. Lincs Turkeys will continue to be run as a standalone business within Bernard Matthews Holdings, retaining its own corporate identity and name.

“Lincs Turkeys brings additional skills and expertise to the group, which will enhance and support our long term growth plans,” says Jeff Halliwell, UK managing director of Bernard Matthews. “It will allow us to

Jeff Halliwell, UK managing director of Bernard Matthews.

N N E E W W S S expand our offering in the fresh and free range turkey markets, areas of particular importance to Bernard Matthews, as we continue to promote the health benefits of turkey.”

Moy Park to Acquire O’Kane Poultry Norther Ireland’s leading food company, Moy Park, is acquiring its smaller rival O’Kane Poultry. Moy Park, which is owned by Brazilian meat group Marfrig, is one of the largest poultry processors in Europe.

The enlarged Moy Park will produce around 200m chickens and 1.5m turkeys per year and employ some 8,500 people; of which around 5,000 are based in Northern Ireland.

“The poultry markets of Ireland, the UK and Europe are growing. By bringing the resources and expertise of Moy Park and O'Kane Poultry together, we are creating a business with the scale and sus-

B B R R II E E F F

tainability of supply needed to meet the very significant growth opportunities that exist across Europe,” says Nigel Dunlop, chief executive of Moy Park.

Previous food industry investments by Langholm include Dorset Cereals, the leading premium cereal brand in the UK, and Tyrrells Potato Chips.

Bart Spices Bought by Langholm Capital

Britvic’s €237m French Acquisition

Private equity firm Langholm Capital has completed the acquisition of Bart Spices in a management buy-out backing chief executive Matthew Shaw.

Steven Esom, operating partner at Langholm Capital, has joined the Bart Spices’ board as non-executive chairman.

Bart Spices was established in Bristol in 1963, and has grown into one of the UK’s leading herbs and spices suppliers. Its broad range of cooking ingredients, sourced from around the world, has been at the forefront of Fairtrade and Organic innovation. Bart Spices also pioneered wet herbs and spices innovation, with its range of ready-to-use pastes.

In line with its ambitions to expand internationally, UKbased Britvic is to acquire Fruite, an independent French soft drinks producer with market leading positions in syrups and ambient juice with brands such as Teisseire and Moulin de Valdonne, Fruite and Pressade, for Eur237m. The proposed acquisition of Fruite is subject to the completion of a consultation process with employee representatives.

The acquisition of Fruite would provide Britvic with entry to the attractive Eur12.5b French soft drink market and provide a platform for targeting other markets in mainland Europe. Britvic

FOOD & DRINK BUSINESS EUROPE, JUNE 2010

anticipates Eur10m of cost synergies by 2013 from a number of areas including procurement and supply-chain, along with a Eur7m contribution from revenue synergies through the marketing and launch of some of Britvic’s existing stills brands in France and beyond.

“With a portfolio of iconic, market-leading still brands and as France’s leading independent soft drinks company, Fruite is an excellent strategic fit for Britvic. The contemplated acquisition would extend our soft drinks focus into continental Europe, would drive our already strong portfolio into new markets and would enhance our GB offering,” explains Paul Moody, chief executive of Brtivic. “Our successful integration of Britvic Ireland gives us the confidence that we will deliver significant cost synergies and revenue upside, and therefore deliver material incremental value for our shareholders.”

7

COVER STORY

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

T

he Top 100 companies are ranked by turnover and pre-tax profits are also listed. The 2010 Top 100 incorporates companies ranging in scale from R&R Ice Cream UK with a turnover of £132 million up to Unilever’s food and beverage business, which by virtue of its extensive global businesses is the clear leader of the annual league table, achieving sales of Eur21.0 billion (£18.5 billion) in 2009.

Diageo is the largest beverages group and Premier Foods is the biggest UK domestic food processor. Companies with turnovers in excess of £1 billion occupy the top 21 places within the 2010 listing.

Subdued M&A Activity Merger and acquisition activity within the UK food and drink industry remained subdued throughout 2009 as a consequence of the global economic downturn and the credit squeeze. The number of food and drink sector deals involving UK businesses declined by 30% to just 70 transactions during 2009, according to sector experts Grant Thornton UK. This is in sharp contrast to the buoyant market conditions

Paul Pulman, chief executive of Unilever.

Paul Walsh, chief executive of Diageo.

of 2007 when 132 deals were reported.

“Deal volumes were down by 47% and over half of the transactions completed related to acquisitions from insolvent companies or businesses in distress,” comments Phil Jackson, head of food sector at Grant Thornton.

Deal activity, however, has picked-up since the start of 2010 and there have been some major M&A deals. With many food and businesses now reporting improved profitability as efficiency improvements take effect and previously high input costs have receded, buyers are being encouraged back into the market.

Biggest Deals The two biggest deals involving Top 100 companies both emanated from the US. Kraft Foods’ £11.9 billion acquisition of UK-based Cadbury ended a five months takeover battle.

The final offer represented a multiple of 13.0 times Cadbury’s underlying 2009 EBITDA. However, the Cadbury board had criticised an earlier offer from Kraft as “derisory” and for valuing Cadbury at only FOOD & DRINK BUSINESS EUROPE, JUNE 2010

12.0 times 2009 EBITDA, far lower than any comparable transaction in the sector (14.3-18.5 times EBITDA) and a significant discount to Kraft’s own publicly stated branded food benchmark of 14 times EBITDA. The enlarged Kraft has now overtaken Mars-Wrigley to become the global confectionery leader, with number one positions in both the chocolate and sugar confectionery segments and a strong number two in the high growth gum segment, still headed by Wrigley.

The deal also gave Kraft leadership of the UK confectionery market, increasing its share from 2-3% to about 30% by adding the top ranked Cadbury business. Mars, which purchased Wrigley in 2008, is second with 24%, followed by Nestle on 16%.

CCE Focuses on Europe The second deal with US origins involved Coca-Cola Enterprises, which is the largest

Robert Schofield, chief executive of Premier Foods.

9

turkey market with the acquisition of Lincs Turkeys while Moy Park, which is Northern Ireland’s largest food company, is acquiring its smaller rival, O’Kane Poultry.

Both deals are for undisclosed prices. Moy Park, owned by Brazilian meat group Marfrig, is one of the largest poultry processors in Europe.

Meanwhile, 2 Sisters Group, which is a leading UK chicken processors and a subsidiary of Boparan Holdings, is

Food and Drink Manufacturers in the UK and Ireland

Peter Lauritzen, chief executive of Arla Foods UK.

soft drinks producer in the UK.US-based Coca-Cola Enterprises is now focused purely on the European market, following the sale of its North American bottling operations to Coca-Cola and the acquisition of Coca-Cola’s bottling business in Norway and Sweden for $822 million in a cashless deal worth $15 billion.

In addition to Great Britain, Coca-Cola Enterprises operates in France, Belgium, Luxembourg, Monaco and the Netherlands as the sole licensed bottler for Coca-Cola products and other well-known beverage franchises. CCE employs more than 10,000 people in Europe. CCE has also obtained the right to acquire Coca-Cola’s 83% stake in its German bottling operations within the next three years for fair value.

The acquisition of CCE's North American operations means that Coca-Cola has taken direct control over 90% of its total North American volume. Coca-Cola already had a 34% equity stake in CCE. The refocused CCE is now the third largest bottler of Coca-Cola products in the world, having previously been the number one.

Consolidation in Poultry In the past few weeks, two deals have been announced which advance the ongoing process of consolidation within the UK poultry industry. Bernard Matthews has strengthened its position within the UK

strengthening its standing within the European poultry industry with the purchase of Netherlands-based Storteboom Group for an undisclosed price. Employing over 1,200 staff in Holland and Poland and with group sales in excess of Eur400 million, Storteboom is well established within the European poultry market for fresh and frozen products.

2 Sisters operates from sites in the UK, Holland and the US. The Storteboom

Company

Turnover

Pre-tax Profits Ownership/Status

1 2 3 4

(1) Unilever (Food)

£18.49b £2.26b*

plc

(2) Diageo

£12.28b £2.02b

plc

(3) Associated British Foods £9.26b

£495.0m

plc

(4) Cadbury

£400.0m

Acquired by Kraft Foods,

£5.38b

US

5 (5) Kerry Group 6 (6) Tate & Lyle 7 (9) Aryzta 8 (7) Premier Foods 9 (8) Total Produce 10 (23) Princes 11 (13) Heineken UK 12 (15) Bakkavor Group 13 (14) Dairy Crest 14 (10) Glanbia 15 (11) Irish Dairy Board 16 (18) Coca-Cola Enterprises 17 (16) Arla Foods UK

£3.98b

£221.6m

Irish co-op/plc

£3.51b

-£61.0m

plc

£2.82b

£191.8m

Irish plc

£2.66b

£46.7m

plc

£2.14b

£25.0m

Irish plc

£1.81b

£39.1m

Mitsubishi, Japan

£1.66b

-£990.6m

Heineken, Netherlands

£1.65b

-£11.8m

Bakkavor Group, Iceland

£1.63b

£77.8m

plc

£1.61b

£125.8m

Irish co-op/plc

£1.60b

£33.2m

Irish dairy co-ops

£1.49b

£206.0m

Coca-Cola Enterprises, US

£1.43b

£28.6m

Arla Foods, Denmark/Sweden

18 (21) Nestle UK 19 (19) MolsonCoors Brewing 20 (20) InBev UK

£1.38b

£48.5m

Nestle, Switz.

£1.34b

-£282.9m

Molson Coors Brewing, US

£1.31b

-£83.5m

Anheuser-Busch InBev, Belgium

Source: KEY NOTE, company accounts. * operating profits. Eur = £088. Figures in brackets indicate previous year’s rankings.

Stefan Barden, chief executive of Northern Foods.

FOOD & DRINK BUSINESS EUROPE, JUNE 2010

11

Company produces about 1.5 million hectoliters of cider, which is almost twice the size of current volumes of Magners.

Having strengthened its UK cider portfolio and diversified into lager, C&C then 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.

Refocusing Greencore, which is one of the leading convenience food groups in the UK, has also refocused its business. Last November, Greencore announced the sale of its bottled water business to Highland Spring, the UK’s largest bottled water supplier, for up to £17.5 million. More recently it disposed of its malt business to French co-operative

Food and Drink Manufacturers in the UK and Ireland

Patrick Coveney, chief executive of Greencore.

Group and 2 Sisters’ existing Dutch business are complementary and will provide an established platform to support expansion in Central Europe. 2 Sisters chief executive Ranjit Singh, through his Boparan Holdings business, also recently purchased Five Star Fish, the Grimsbybased seafood company, from the administrators for an undisclosed sum, having earlier acquired the famous Harry Ramsden’s chain of fish and chip restaurants.

Most Active C&C Group, the Irish and international drinks group which owns the Magners premium cider brand in the UK, was the most active company within the Top 100 on the M&A front, concluding three deals during the past year. Last September, C&C acquired the Scottish and Northern Irish operations of Anheuser-Busch InBev for £180 million. The business acquired included the Tennent’s lager brand, the Wellpark Brewery in Glasgow and the distribution rights to certain ABI brands in Ireland, Northern Ireland and Scotland, including Stella Artois and Beck’s.

C&C then moved to strengthen its UK cider business with the acquisition of The Gaymer Cider Company for £45 million from Constellation Brands, the world’s leading wine producer. The Gaymer Cider

Company

Turnover

Pre-tax Profits Ownership/Status

21 (17) Wrigley Candy UK 22 (28) United Biscuits (UK)

£1.20b

£204.4m

£999.4m £60.9m

Mars, US Blackstone, PAI Partners & Kraft Foods

23 (27) Britvic 24 (24) Northern Foods 25 (22) Greencore 26 (25) Greene King 27 (26) Tulip 28 (31) Robert Wiseman Dairies

29 (30) Carlsberg UK 30 (35) Hilton Food Group 31 (32) Dawn Meats Group 32 (34) Irish Food Processors 33 (44) Cranswick 34 (42) Moy Park 35 (38) HJ Heinz 36 (36) Atlantic Industries 37 (39) Pepsi Cola International

38 (41) Kepak 39 (40) Marston’s 40 (37) Fyffes

£978.8m £66.2m

plc

£977.0m £7.4m

plc

£970.6b -£0.4m

Irish plc

£954.6m £118.5m

plc

£953.9m £20.9m

Danish Crown, Denmark

£886.2m £49.2m

plc

£872.5m -£59.0m

Carlsberg, Denmark.

£826.0m £20.1m

plc

£790mE

nd

Irish independent

£748mE

nd

Irish independent

£740.0m £43.8m

plc

£737.7m -£38.3m

Marfrig, Brazil

£734.4m £145.7m

HJ Heinz Co, US

£700mE

nd

Coca-Cola, US

£660mE

nd

PepsiCo, US

£660mE

nd

Irish independent

£645.1m £21.4m

plc

£639.6m £18.7m

Irish plc

Source: KEY NOTE, company accounts. * operating profits. Eur = £088. Figures in brackets indicate previous year’s rankings.

Kate Allum, chief executive of First Milk.

FOOD & DRINK BUSINESS EUROPE, JUNE 2010

13

of its French operations and since the start of 2010 has completed the £18.0 million sale of the Netherlands businesses and sold off its German and Polish businesses for £25.7 million. The net proceeds from disposals are available to fund a planned capital investment programme in the UK. “We have successfully completed Uniq’s transformation into a focused UK operation,” says Geoff Eaton, chief executive of Uniq. However, with turnover

from continuing operations now down to £287.2 million in 2009, Uniq has plummeted down the Top 100 rankings.

International Expansion and Diversification In contrast to Uniq, which has retrenched in the UK, Britvic, Britain’s second largest soft drinks producer, is continuing with its international expansion. Britvic has just announced its intentions to acquire Fruite,

Roger White, chief executive of AG Barr.

group AxerealUnion De Cooperatives Agricoles for up to Eur116.3 million (£102 million).

“The transaction completes Greencore's journey into a focused convenience foods player, with clear leadership positions in the UK market and a growing regional presence in North America,” points out Patrick Coveney, chief executive of Greencore. “Looking ahead, this deal will tighten our strategic focus, strengthen our balance sheet and provide capital to fund future growth over time in both our UK and US convenience foods markets.”

Uniq is another convenience foods group which has been busy reshaping its business.

Following the disposal of its overseas operations, Uniq has successfully completed its change into a focused UK business. Indeed, the streamlined UK business, centred on desserts and food to go, is now in profitable growth, having achieved an operating profit of £4.4 million in the year ended December 31st last compared with a prior year loss of £1.3 million. However, at group level Uniq reported a loss before tax from continuing operations of £18.5 million significantly impacted by £11.3 million of pension related finance expense.

Uniq raised £60.9 million from the sale

Food and Drink Manufacturers in the UK and Ireland Company

Turnover

Pre-tax Profits Ownership/Status

41 (43) Constellation Europe 42 (53) Boparan Holdings

£639.2m -£13.8m

Constellation Brands, US

£631.9m £27.0m

Incorporating 2 Sisters – Independent

43 (46) Kellogg UK 44 (-) Vion Food UK 45 (49) Gerber Emig Group 46 (50) William Grant & Sons Holdings

£627.9m £8.4m

Kellogg Co, US

£626.7m £19.2m

Vion, Netherlands

£626.4m £0.8m

Quadrigo Holdings

£598.3m £129.2m

Independent

47 (45) Samworth Bros Holdings £597.2m 48 (48) Kraft Foods UK £539.3m 49 (55) Warburtons £510.5m 50 (52) C&C Group £500.5m 51 (47) Dairygold Co-op £488.6m 52 (59) Noble Foods £467.8m

£42.0m

Independent

£16.6m

Kraft Foods, US

£62.8m

Independent

£69.3m

Irish plc

£9.2m

Irish co-op

£18.6m

Independent – formerly Deans Foods

53 (51) Birds Eye 54 (57) Chivas Bros 55 (67) Edrington Group 56 (54) Muller Dairy UK 57 (56) Irish Distillers Group 58 (60) Young’s Seafood

£458.6m £10.4m

Permira

£451.3m £65.2m

Pernod Ricard, France

£419.9m £82.1m

Independent

£400.5m £36.9m

Alois Muller, Germany

£395mE

Pernod Ricard, France

nd

£381.9m £1.9m

Part of Foodvest – Lion Capital, UK

59 (63) Allied Domecq Spirits

Ralph Findlay, chief executive of Marston’s.

& Wine

£372.0m £182.0m

Pernod Ricard, France

60 (64) McCain Foods GB

£351.3m £38.8m

McCain Foods, Canada

Source: KEY NOTE, company accounts. * operating profits. Eur = £088. Figures in brackets indicate previous year’s rankings.

FOOD & DRINK BUSINESS EUROPE, JUNE 2010

15

profit turnaround in its last financial year with a loss of £11.8 million compared with a £154.2 million loss in 2008. The restructuring involved closing 11 underperforming manufacturing sites and consolidating production across sites in both the UK and France in order to optimise capacity and reduce costs.

“Our 2009 results demonstrate a strong improvement in profit delivery, good sales growth in our key UK fresh prepared foods

business and a return to significant cash generation. After two years of considerable effort to return the business to more expected performance levels we are very optimistic about our future prospects,” points out Agust Gudmundsson, chief executive of Bakkavor.

Another Top 100 company to achieve a notable turnaround in financial performance after restructuring is The Real Good Food Company, the bakery, sugar

Food and Drink Manufacturers in the UK and Ireland

Geoff Eaton, chief executive of Uniq.

an independent French soft drinks producer, for Eur237 million. The acquisition would give Britvic entry to the attractive Eur12.5 billion French soft drinks market and provide a platform for targeting other markets in mainland Europe.

Noble Foods (formerly Deans Foods), the largest supplier of eggs and egg products in the UK, has completed a series of acquisitions to diversify into value added fresh food categories with attractive growth potential. Its most recent transaction involved the purchase of a majority stake in London-based premium chocolate dessert company, Gu Chocolate Puds, in a deal reported to be worth up to £35 million.

The move follows the acquisition by Noble Foods of Serious Desserts, the South Wales-based premium desserts business in August 2008.

Major Restructuring A number of major players within the UK convenience foods market have made significant progress during the past twelve months in reorganising their businesses to meet changing market requirements and to improve financial performance.

Radical restructuring activity undertaken in 2008-2009 has helped Icelandic food group Bakkavor to achieve a significant

Company

Turnover

Pre-tax Profits Ownership/Status

61 (71) Sun Valley Foods 62 (74) AarhusKarlshamn UK

£348.9m £4.0m

Cargill, US

£347.5m £21.5m

AarhusKarlshamn, Sweden/Denmark

63 (61) Bernard Matthews Holdings

64 (70) Faccenda Group 65 (66) Weetabix 66 (69) Farmers Boy

£337.2m -£4.4m

Independent

£337.2m £7.8m

Hillesden Investments

£314.3m £76.9m

Lion Capital, UK

£304.5m £34.8m

W Morrison Supermarkets plc

67 (65) Heineken Ireland 68 (68) Burton’s Foods Holdings 69 (33) Uniq

£304.4m nd

Heineken, Holland

£301.0m £50.7m

Duke Street Capital

£287.2m -£18.5m

Plc – results from continuing operations

70 (58) Lakeland Dairies 71 (75) The Cheese Company 72 (72) Icelandic Group UK 73 (-) Meadow Foods 74 (76) Tata Tea GB 75 (73) Anheuser-Busch Europe

£286.6m £1.2m

Irish co-op

£253.9m £5.5m

Milk Link Co-op

£248.5m £7.7m

Icelandic Group, Iceland

£246.7m £4.4m

Independent

£238.0m £142.9m

Tata Tea, India

£230.6m -£38.9m

Anheuser-Busch InBev, Belgium

76 (78) Pura Foods 77 (82) Walkers Snack Foods 78 (62) Whyte & Mackay Group 79 (77) The Real Good Food Company Scotch whisky distillers have earmarked investment of £600 million during the past two years for extending production capacity – including distilling, bottling and warehousing.

80 (80) Fuller Smith & Turner

£228.5m £3.0m

ADM, US

£223.5m £31.1m

PepsiCo, US

£216.0m £31.7m

UB Group, India

£215.6m £1.6m

plc

£210.0m £14.4m

plc

Source: KEY NOTE, company accounts. * operating profits. Eur = £088. Figures in brackets indicate previous year’s rankings.

FOOD & DRINK BUSINESS EUROPE, JUNE 2010

17

and ingredients group. The Real Good Food Company returned to profit, converting a pre-tax loss after exceptional items of £421,000 in 2008 into a profit of £1.6m for the twelve months ending December 31st last. However, sales slipped 1% to £215.6 million in 2009.

Record Exports The relative weakness of sterling against other currencies has aided the efforts of UK food and drink companies in selling their products overseas. Indeed, exports of British food and non-alcoholic drinks have reached record levels. According to the Food and Drink Federation, food and drink exports grew in value by 4.4% to £9.65 billion in 2009, a fifth consecutive year of growth.

Whisky and Milk Worldwide exports of Scotch whisky also reached record levels in 2009 despite the global economic downturn. Figures published by the Scotch Whisky Association reveal that exports rose by 3% in value to reach £3.13 billion in 2009 and volumes increased by 4% worldwide, with the equivalent of 1.1 billion 70cl bottles of Scotch whisky shipped.

The industry is continuing to invest for long-term growth. Scotch whisky distillers, including the major players such as Diageo, John Dewar (Bacardi), Glenmorangie and Edrington, have earmarked investment of £600 million during the past two years for extending production capacity – including

distilling, bottling and warehousing.

Although 2009 was a tough year, the UK dairy industry is also investing heavily and capital investment projects worth over £320 million are currently ongoing or were recently completed. For example, Arla Foods is planning to invest in building a new one billion litres liquid milk dairy located on the outskirts of London. The dairy will be the largest, most efficient and environmentally advanced in the world.

Meanwhile, Dairy Crest is investing £75 million to enhance the efficiency of its liquid milk operations.

In Northern Ireland, Dale Farm, which is owned by co-operative United Dairy Farmers, is investing £39 million across its three sites in support of its rapidly growing sales in consumer products and specialist ingredients. The expansion programme is the largest ever investment in the Northern Ireland dairy sector by a single company. J

Food and Drink Manufacturers in the UK and Ireland Company

Turnover

81 (83) Wells & Young’s Brewing £209.9m 82 (79) Cott Beverages £206.4m 83 (-) First Milk Cheese Company £206.2m 84 (91) AG Barr £201.4m 85 (-) Barry Callebaut Manufacturing

Pre-tax Profits Ownership/Status £3.1m

Charles Wells & Young’s

-£38.7m

Cott Corporation, Canada

-£6.5m

First Milk Co-op

£24.4m

plc

£192.9m £1.4m

Barry Callebaut, Switzerland

86 (89) Coca-Cola Northern Irel 87 (85) McCormick UK 88 (90) Finsbury Food Group 89 (88) Yeo Valley Group 90 (87) Dale Farm

£192.7m £0.3m

Coca-Cola HBC, Greece

£185.7m -£6.0m

McCormick, US

£178.9m £1.8m

plc

£177.9m £4.5m

Independent

£176.0m £4.0m

United Dairy Farmers Group

Pictured left to right: Billy Keane, Robert Wiseman and Gerry Sweeney.

Board Changes at Robert Wiseman Dairies Alan Wiseman will resign as a director of Robert Wiseman Dairies in July 2010 and be succeeded as executive chairman by his brother, Robert Wiseman, who is currently chief executive. Billy Keane, the current group finance director, will then assume the role of managing director for the group.

The role of group finance director will be filled by Gerry Sweeney, current finance director for the main trading subsidiary Robert Wiseman & Sons.

91 (93) Key Country Foods 92 (84) Lactalis McLelland 93 (94) William Jackson & Son 94 (92) Daniel Thwaites 95 (99) JW Galloway 96 (95) Cumbrian Seafoods 97 (86) Milk Link Processing 98 (96) Ferrero UK

£170.4m £0.4m

Vion, Netherlands

£168.0m £3.2m

Lactalis, France

£167.7m £3.2m

Independent

£158.5m £9.0m

plc

£154.1m £6.0m

Independent

£146.0m £6.8m

Independent

£137.7m -£10.9m

Milk Link Co-op

£137.1m £2.2m

Ferrero International, Switzerland

99 (98) Yoplait UK 100 (97) R&R Ice Cream UK

£132.8m £14.6m

Yoplait, France

£132.2m £17.8m

Oaktree Capital, US

Source: KEY NOTE, company accounts. * operating profits. Eur = £088. Figures in brackets indicate previous year’s rankings.

FOOD & DRINK BUSINESS EUROPE, JUNE 2010

19

I DAIRY

Dairy Crest Delivers on Key Objectives Dairy Crest is continuing to reap the benefits of its development strategy of brand investment, cost reduction and cash generation.

D

airy Crest has reported a slight decline in revenue from £1.648 billion to £1.63 billion for the year ended March 31st 2010, as strong sales growth of key brands and liquid milk to retailers, which together increased by £52 million, was offset by planned lower sales of dairy ingredients and lower sales to doorstep and middle ground milk customers. Adjusted profit before tax at the UK-based dairy group rose 5% to £83.5 million.

After adjusting for exceptional items and amortisation reported profit before tax was down 25% at £77.8 million, which was chiefly due to the £50.4 million exceptional gain on the sale of Dairy Crest’s stake in joint venture Yoplait Dairy Crest in the previous year.

Investment until now had been focused on the cheese business, where following the opening of the new Nuneaton packing plant, Dairy Crest has a world-class supply chain supporting its Cathedral City brand. Dairy Crest has also continued to invest in other parts of the business; for example, at Foston where a modern greenfield dairy has been created, readily capable of further expansion.

Development Strategy “We have consistently delivered on our strategy of brand investment, cost reduction and cash generation, and have strengthened the business for the future. During the year, we have increased operating profits and significantly cut our borrowings, and at the same time we have continued to develop our key brands and other added value sales,” remarks Mark Allen. “Dairy Crest has changed from the predominantly commodity focused, UK based business that it was fifteen years ago to an added value dairy food company with a significant profit stream from continental Europe. We have shown that we can grow added value sales both organically and through acquisitions and we are well placed to continue this.” J

Mark Allen, chief executive of Dairy Crest.

During the year, Dairy Crest was able to successfully progress its development strategy of continuing to build market-leading positions in branded and added value markets; of focusing on cost reduction and efficiency improvements; and driving cash generation in order to reduce debt. Sales of key brands increased by 9% and sales of milk to major retailers were up 8%. Dairy Crest has introduced new initiatives to generate £20 million in annualised cost reductions. Net debt was reduced by £78.6 million or 19% to £337.2 million by the year end, which was better than expected.

Investing For Future Growth Dairy Crest is continuing to invest for the future. Increased marketing investment has strengthened key brands for further growth and the group has embarked on a major capital investment programme at its dairies division in order to improve the efficiency and infrastructure of its liquid milk operations. Dairy Crest will spend £75 million over the next three financial years in addition to its normal replacement capital expenditure, to be funded from cash generated by the business.

“The increased investment in our liquid milk dairies will allow us to drive further cost efficiencies, remain competitive and maintain high levels of service to our customers,” says Mark Allen, chief executive of Dairy Crest.

20

FOOD & DRINK BUSINESS EUROPE, JUNE 2010

I MEAT

Constant Capital Investment Crucial to Hilton Food Group’s Continued Success UK-based Hilton Food Group, the leading specialist meat-packing business supplying major international food retailers in ten European countries, is committed to continually reinvesting in its packing plants, which operate across five countries. ilton Food Group has developed dedicated partnerships with individual retailers and currently supplies Tesco, Ahold, Albert Heijn and ICA, from state-of-the-art facilities located in the UK, Ireland, Holland, Sweden and Poland.

Hilton Food Group was originally established in 1994 to develop and operate a beef and lamb central meat packing facility for Tesco in England. The meat group moved into the Netherlands in 1999 following the acquisition of a beef and lamb packing plant in Zaandam. In 2004, Hilton constructed a new beef, lamb and pork packing factory at Drogheda in the Rebublic of Ireland to supply Tesco, and later in the year set up another operation at Vasteras in Sweden. The Polish operation commenced in 2006.

H

Strong Financial Performance In its last financial year, Hilton Food Group increased operating profit by 7.5% to £21.7 million and pre-tax profit by 16.2% to £20.1 million on turnover up by 13% to £826 million in the 53 weeks ending January 3rd 2010. Volume and turnover growth were 14% and 11% respectively on a 52 weeks basis.

The group’s businesses in Western Europe, covering the UK, Ireland, Holland and Sweden, continued to make progress with volume growth of 9.4% and turnover up 11.2% to £755.7 million and operating profit advancing from £18.9 million to £ 19.4 million.

Hilton Food Group’s packing plant at Tychy in Poland supplies Ahold stores in the Czech Republic and Slovakia, Tesco stores in Hungary, Czech Republic, Poland

and Slovakia and, for the first time in 2009, Rimi stores in Latvia and Lithuania. This rapidly growing Central European business achieved volume growth of 52.9% in 2009, with turnover up 41.3% to £70.4 million and operating profit increasing from £1.3 million to £2.3 million.

Successful Year “2009 has been a successful year over which the Hilton Food Group has achieved continuing growth across each of the five countries in which it currently operates central meat packing plants. Measured in terms of both sales and profit growth, our performance has remained strong, over a year which, in terms of overall macroeconomic conditions, has probably been the most challenging faced for many decades across Europe,” says Robert Watson OBE, chief executive of Hilton Food Group.

Hilton Food Group has managed to cope well with changing consumer demands and spending habits, which saw a marked rise in the popularity of ‘value’ products and promotions.

“We have been working with all our retail partners in all our markets, both in Western Europe and Central Europe, to readjust the product ranges to the consumer mood,” he explains. “We have experienced some trading down in all our markets. We have found that as the year progressed this has regressed somewhat. Because we are a company that supplies retailer own label products right from the value range through the standard range then to the premium ranges, we can quickly adapt our products and our focus to suit the mood of the consumer.

What we are seeing now is more of a shift towards the standard and upper end of the business again.”

Business Model The group’s business model is sharply focused on unit costs, quality and product development. This has necessitated continued heavy investment in both new and existing facilities to increase capacity and product quality and to enhance the company’s processing technology.

“We have continued to invest to improve FOOD & DRINK BUSINESS EUROPE, JUNE 2010

Robert Watson OBE, chief executive of Hilton Food Group.

the operational efficiency of our packing plants, expand and develop our product ranges and put in place the required capacity for anticipated future growth,” says Robert Watson. “Over the six years to December 2009 capital expenditure on the group’s packing facilities has totalled £92 million, the larger part of which has been spent on major capacity expansion projects, replacement of equipment with the most efficient currently available packing technology and new product development initiatives.”

He elaborates: “We pride ourselves on continually maintaining state-of-the-art facilities across all our operations through very prudent capital expenditure. We focus on maintenance capital expenditure and our target is about £10 million a year that we are willing to invest in our business.”

Development Strategy Hilton’s future development strategy is to expand the business by developing the existing partnerships with its retailer customers and also to explore opportunities for operating its proven business model in new geographical territories, with either current or new customers. “We are currently talking to a number of interested parties and they are not only in Europe, some are outside Europe,” Robert Watson concludes. J 21

I BEVERAGES

Universal Beverages Offers the Complete Package After £100 Million Investment Universal Beverages has just commissioned a 90,000 cph Krones Volumetric can line to complete the latest phase of an ambitious investment programme, which has created one of the largest fruit mill and juice storage facilities in Europe, complemented by an extensive contract drinks production capability at Ledbury in Herefordshire, England. he newly installed can line incorporates the latest can filling technology and has the capability to fill slimline (200e), sleek (202e) and standard 440ml, 500ml as well as 568ml cans.

As well as having flexibility of can size, the line can also provide a comprehensive range of secondary packing options, including multipack and hi- and mid-cone application.

Product is supplied to the line from the new process area via a Krones Conti-Flow unit, which has a dilution blending facility and in-line carbonation. The line fills a

range of products, including beers, ciders, wines, RTD’s, soft drinks, energy drinks, carbonates, juices and has the option of accurately controlled tunnel pasteurisation.

22

FOOD & DRINK BUSINESS EUROPE, JUNE 2010

T

Contract Production Solutions Universal Beverages offers a wide range of contract production solutions to the drinks industry, including juice production and storage, fermentation, blending, glass bottling, can filling as well as NPD services.

The Ledbury site is currently producing beers, ciders, wines, RTD’s, soft drinks and juices.

Universal Beverages was formed in December 2007 as a joint venture between Q Group, a local Herefordshire-based company, and Scottish & Newcastle (Heineken UK), Britain’s biggest brewer, which also owns the country’s leading cider maker, HP Bulmer.

The rationale behind the joint venture was that the strong growth in the UK cider market was outstripping the capacity at HP Bulmer’s cider production facility in the centre of Hereford. Consequently, HP Bulmer needed to add new milling and cider making capacity. Due to the con-

lion for 2011.

While Universal Beverages’ chief activity is currently fruit processing and contract production of ciders for HP Bulmer, it is also rapidly developing contract production and distribution work for other drinks companies.

“We produce for several drinks companies and have around 50% of our Universal Beverages has just commissioned a 90,000 cph Krones Volumetric can line.

straints of Bulmer’s existing site, the decision was taken to build the new capacity out of town and in partnership with Q Group at nearby Ledbury. £100 Million Investment Programme The new facility at Ladbury incorporates a 2000 tonnes per day capacity fruit processing mill, juice storage of 15,000 tonnes and an alcoholic/non-alcoholic liquid production and blending facility capable of producing 2 million hectolitres per annum.

The packaging side of the operation features a glass bottling line operating at 500bpm (300,000 hl/annum), a wine bottling line with a speed of 180 bpm (250,000 hl/annum) and the new 90,000 cph (1.5 million hl/annum) can line. The site is also served by an anaerobic wastewater treatment plant.

Total investment to date is in excess of £100 million. Universal Beverages is currently installing a second filtration/ blending stream along with a new road tanker intake facility.

Scale of Operation Universal Beverages employs 190 people and current year turnover is £21 million but, with the plant at Ledbury now completed, this is projected to jump to £35 mil-

As well as having flexibility of can size, the line can also provide a comprehensive range of secondary packing options, including multipack and hi- and mid-cone application.

capacity dedicated for this. We offer contract fruit processing and juice storage, fermentation, non-alcoholic drinks production, glass filling and can services. We also offer a NPD/product development service and can provide storage and distribution services. Products we supply include cider, fruit ciders, RTD's, fortified wines, table wines, energy drinks, etc,” explains Chris Newall, business development director of Universal Beverages.

Universal Beverages is achieving steady progress in filling out its spare capacity. “As soon as we commission new production plant there is an immediate interest amongst customers. The can line has received enormous interest because of its

versatility – for example, it fills standard cans and also slim and sleek cans,” he remarks.

Market Trends Universal Beverages is active in both the alcoholic and non-alcoholic drinks markets. So what markets trends is the company encountering? “If we go by our enquiries, we have noticed an increasing trend towards can, which probably reflects the on/off trade split. Also, there is huge interest in energy drinks and mixers. Own branded drinks enquiries are also on the increase,” Chris Newall replies.

Universal Beverages is responding to the changing market demands “by installing modern, flexible and efficient plant and processes and by supplying a range of products and services so that our customers can use us as a supply chain solution, with Universal Beverages providing a complete one-stop solution or just part of the supply chain requirements,” he adds.

Development Strategy Having only completed the Ledbury site in Spring 2010, Universal Beverages expects to achieve 50% capacity utilisation

The newly installed can line incorporates all the latest can filling technology and has the capability to fill slim-line (200e), sleek (202e) and standard 440ml, 500ml as well as 568ml cans.

in 2010. “Our objective is to fill our production cap-acity with profitable business, preferably with mid-long-term partners and also some spot production. We are also able to provide strategic opportunities for companies looking to re-engineer their production base and contract out for ease,

simplicity and cost,” he concludes.

For more information on contract production services contact Chris Newall, business development director, Universal Beverages on Tel +44 (0)7966 110089 or E-mail chris@universalbeverages.co.uk. J

Puresep Chosen by Universal Beverages to Provide State of the art Filtration and Water Treatment Plant Solutions niversal Beverages Limited has U chosen Herefordshire based Puresep as its key partner in providing top of the range filtration and water treatment plant. UBL commissioned Puresep to provide two PureFlow Crossflow systems as well as a range of water treatment solutions to facilitate its production plant requirements.

The PureFlow Crossflow system, used for product clarification following fermentation, boasts high performance and productivity through quality design and engineering along with maximum filtration efficiency. The system is made of stainless steel, ensuring a long service life as well as preventing odour pick-up and adverse taste. It utilises high quality 0.2 micron membranes, ensuring exceptional product clarity. The system is fully integrated and automated with a self cleaning facility that requires no operator intervention.

It is scalable to suit production require24

ments.

The Puresep Water treatment plant boasts cost effective and efficient water supply for process, product and CIP use across the plant.

A duplex ion exchange softener system is used to remove scale forming salts such as calcium and magnesium from the incoming FOOD & DRINK BUSINESS EUROPE, JUNE 2010

water. The softeners operate on an ‘on demand’ basis and automatically regenerate when the set volume of water has passed. Whilst one softener unit is in regeneration the second unit is bought online.

The Triplex Granular Activated Carbon filters are in place to remove chlorine from the incoming water supply down to very low levels. The carbon filter vessels also operate on an ‘on demand’ basis and each will backwash on manual initiation.

A PureChlor Chlorine Dioxide system was installed to ensure sterility to softened water for CIP applications and for treating the carbon filtered water for process applications.

This is an effective and efficient way of generating Chlorine Dioxide, with a central PLC control system it is fully automated. The PureChlor system is fully scalable allowing multiple points of use across a site. J

ENERGY EFFICIENCY

Raising the Bar For Steam Boiler Efficiency yworth Boilers, based in Yorkshire, has B added another energy saving concept to its ranges of fuel efficient steam and hot water boilers, thereby raising the bar for boiler efficiency yet again.

This latest energy saving concept from Byworth Boilers has been around for many years on water tube boilers, but never implemented on industrial shell boilers.

The concept is to pre-heat the air which will be fed to the burner using waste heat from flue gases. Hot flue gases pass through an air to air heat exchanger, transferring heat to the combustion air. This increase in air temperature has a direct reducing effect on the fuel required to raise steam.

Two Yorkshireman2 steam boilers, rated at 3500 kgs/hour, currently being installed in Surrey are the first to incorporate this feature. Testing is underway to verify expected fuel savings and an overall nett efficiency of 94.3% is likely. These boilers are probably the most fuel efficient boilers of their type available today.

X-ID High Performance Firetubes In addition to pre-heated combustion air these boilers also include X-ID high performance firetubes. First introduced in the UK three years ago, X-ID is now extensive-

ly proven in the field to improve efficiency by up to 3.5%. It is suitable for all fuels even heavy oil.

In order to achieve the expected overall nett efficiency of 94.3%, flue gases are also utilised to preheat feed water for these super-efficient boilers through a flue gas economiser.

industrial sites throughout Yorkshire. This will give industry a chance to prove the ease of use and financial benefits of using renewable fuels. ” J

Emphasis on R&D Peter Baldwin, managing director of Byworth Boilers, comments: “We have placed a great deal of importance on R&D in the past few years, the goal being reduced energy costs for our customers. As an independent boiler maker, with all production taking place here in the UK and having our own expert design team, developing new concepts is perhaps relatively easy for us.”

He continues: “We are now looking towards alternative and renewable fuels as an answer to our customers’ high fuel bills. We have manufactured a wood pellet fired boiler giving 2000kgs/hour steam output, the first industrial sized boiler to utilise this fuel in the UK. CO2 Sense, part of Yorkshire Forward, commissioned this plant which is fully self-contained and going to be leased to FOOD & DRINK BUSINESS EUROPE, JUNE 2010

25

Developing a preliminary idea or a complete production line? VME assist in the complete cycle of your liquid food projects.

VME offer: • advice • engineering • implementation • various support activities VME conduct small assignments with the same dedication as large turnkey projects.

SERVICES • Basic design and pre project Engineering.

• Process Engineering • Packaging Engineering • Project Management • Automation Engineering • Piping Design • Filling Line Layout • Information Management

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I INGREDIENTS & CONSUMER FOODS

Technological Expertise Gives Kerry Competitive Edge Kerry Group is a world leader in food ingredients and flavour technologies serving the food and beverage industries, and is also a major consumer foods processor in the UK and Ireland. erry Group is Ireland’s tomer-specific innovation largest food company requirements and product soluand ranks fifth within tions. The new centre provides the Food & Drink industry access to all Kerry Business Top 100 (see page 11). ingredients and flavour techKerry is one of the leading and nologies through dedicated cusmost technologically advanced tomer application suites, culimanufacturers and innovators of nary theatres, sensory services application specific food ingrediand customer application pilot ents in the world, working in production facilities. partnership with multinational Stan McCarthy, chief executive of food manufacturing and food Kerry Group.

Centres of Excellence service companies. Through a Investment in centres of excelstrategic acquisition programme Kerry has lence build “on the group’s ‘go-to-market’ established a global processing and technical strategy - leveraging Kerry’s unrivalled range of network with an ingredients portfolio extend- technology based ingredients, flavours and ing to some nine thousand products in over integrated solutions in food and beverage 120 different countries. growth markets,” explains Stan McCarthy, Kerry’s ingredients and flavours business chief executive of Kerry Group. “Today’s congenerated 73% of group turnover of Eur4.5 sumer markets and changing food and beverbillion last year, with the consumer foods divi- age consumption trends call for renewed sion contributing the balance. vigour in product innovation and development of cost effective product solutions and menu Consumer Foods offerings.”

Kerry Foods is a leading supplier of added He continues: “Kerry’s systems approach to value chilled foods across Ireland and the UK. innovation capitalises on our breadth of ingreIt holds the number one brand position in dients and flavours technologies and unique most of its markets, including ready meals, end-use-market applications capability - worksausages, bacon, cooked meats and dairy ing in collaboration with our customers to spreads, and has developed a well balanced derive maximum synergies from this industry business supplying supermarket private label. leading expertise. This creates real value for our For instance, Kerry Foods is a major producer customers by way of quick delivery of conof chilled ready meals under retailers’ private label sumer-relevant product development, product and has also launched branded chilled ready improvements, cost reduction or process meals. Kerry Foods’ Rye Valley Foods business is enhancement.” a leading supplier of frozen ready meal solutions Kerry’s expenditure on research and develto both the Irish and UK markets. opment amounted to Eur147.8 million in 2009 – a similar amount to that spent in 2008.

Commitment to R&D Kerry’s success has been built on a total com- Robust Financial Performance mitment to ongoing technological innovation Despite the tough market environment both in all sectors of its business, providing integrat- domestically and globally, Kerry proved its ed customer-focused product development. resilience in its last financial year, ended The group invests heavily in highly focused December 31st 2009. Trading profit was research, development and application centres Eur422 million, reflecting a 3.8% like-for-like of excellence. This gives Kerry a ‘technological increase and an 80 basis points improvement edge’ in its chosen sectors, allowing it to proac- in the group trading profit margin to 9.3%. tively meet customer and market needs.

Revenue at Eur4.5 billion was down 4.8% on For example, last year Kerry opened a new a like-for-like basis and group profit before tax $50 million innovation and commercial centre rose 4.8% to Eur251.9 million. in Wisconsin, USA. The move was in line with On a like-for-like basis, sales revenue in ingreKerry’s ‘integrated approach’ to meeting cus- dients and flavours declined by 4.5% to Eur3.3

K

FOOD & DRINK BUSINESS EUROPE, JUNE 2010

billion but trading profit grew by 4.9% to Eur340 million, contributing a 90 basis points improvement in trading profit margin to 10.4%.

Like-for-like sales revenue at the consumer foods division declined by 6.1% to Eur1.7 billion and trading profit was unchanged at Eur122 million. Business efficiency programmes, including ‘lean manufacturing’, enabled the division to grow its trading profit margin by 40 basis points to 7.1%.

During 2009, Kerry completed the restructuring of its ingredients and flavours regional businesses and is well advanced in the re-organisation of its consumer foods division.

“The Kerry business model performed robustly in what was a challenging environment in 2009 – delivering excellent product and business development opportunities, good margin improvement and cash generation,” says Stan McCarthy.

Outlook Kerry Group is well positioned across global growth markets and its strong technology platforms will allow the group to continue to be a leader in innovation and category growth. Stan McCarthy is confident that good growth rates are achievable through application of its ingredients and flavours technologies in global food and beverage markets.

Due to the underlying strength of Kerry Foods’ brands, its focus on product innovation and strong positioning in convenience growth categories, Kerry Group expects its consumer foods division will continue to outperform market growth rates. Furthermore, Kerry will continue to pursue strategic acquisition opportunities which will support top-line and earning growth into the future. J

Kerry provides integrated customer-focused product development. Schnitzel (pictured) is a complete solution for manufacturers seeking to provide improved coating adhesion and increased crispiness.

27

Dalco Saves Norbev 50% on Nitrogen orbev switched from bulk N bottled nitrogen to a Dalco nitrogen gas generating system in 2002 and haven’t looked back. Sam Fleck Project Manager at Norbev found the system to cost “approximately 50% of bottled gas and the equipment paid for itself in just over a year.”

Norbev is a leading beverage packing company for brands such as Lucozade, Coca-Cola multipacks and the Britvic beverage group. Norbev uses nitrogen at several stages of the packaging process for still beverages.

Previously Norbev purchased bulk bottled nitrogen but had difficulties keeping a 24/7 supply. Stoppages resulted as the banks of nitrogen were disconnected and reconnected.

Dalco Nitrogen Systems held the solution, they installed a customised nitrogen generating system, which allowed Norbev control their availability of nitrogen and prevent stoppages. Following the success of the first system, Norbev have purchased a second unit.

Dalco Engineering is a wholly Irish owned manufacturer, installer and maintainer of customised nitrogen generating systems, with offices in Ireland, the UK, UAE and Australia. Its customers include Kerry Group, Bewleys Coffee, Tayto Crisps and Mr Crumb Foods. For details of Dalco Nitrogen Systems please visit www.dalcoengineering.ie. J

Holistic Approach From Dalkia alkia employs over 500 D people in Ireland and provides a holistic approach to Energy & Utilities Management, Mechanical & Electrical and Facilities Management services for a wide range of blue chip commercial and industrial clients throughout the island.

Specifically in the energy sector, Dalkia provides solutions to industrial and commercial customers designed to deliver cost savings, operational and management efficiencies and lower CO2 emissions, thus allowing clients to focus on core activities through outsource of their non-core energy services to Dalkia.

Dalkia’s solution includes feasibility study, engineering, design, construction and finance, leading to immediate and sustainable delivery of benefits through operation and maintenance of energy assets such as industrial utility systems (boiler plant, compressed air plant, refrigeration plant) and Combined Heat & Power (CHP) plant.

Dalkia understands the unique challenges food and drink manufacturers face today.

Drawing on industry experience, the company understands your production process and supply chain issues as well. With its extensive experience and knowledge of these challenges in the Irish market Dalkia can provide a complete Utilities & Facilities management solution tailored to the unique needs of each client.

For further details, please contact Colm Flanagan, Commercial Director on 01.870.1200 – colm.flanagan@dalkia.ie or visit www.dalkia.ie. J 28

FOOD & DRINK BUSINESS EUROPE, JUNE 2010

Carbon Counting as Important as Calorie Counting to Britain’s Shoppers he full extent of the British public’s carT bon consciousness has been revealed, as research by the Carbon Trust shows that carbon counting now stands shoulder to shoulder with calorie counting when it comes to the weekly shop. When asked about what they put in their shopping trolley, a quarter of people say it is not just carbs but carbon that now influences their shopping habits.

The research is a clear call to action for British businesses to show their carbon commitment and sign up to the Carbon Reduction Label in order to satisfy our appetite for green shopping: • 86% of consumers want their favourite brands to help combat the threat of climate change by reducing their carbon footprint.

• Almost half (43%) are actively seeking information about the carbon impact of the products they buy and more than half (52%) would be more loyal to a brand if they could see at a glance they were taking steps to reduce their footprint.

• It seems we are more ready than ever to stand by our carbon principles, with almost a quarter (22%) of respondents willing to stop buying their favourite brands if they didn’t commit to bearing the Carbon Reduction Label.

• Cars, electrical goods and food were the products we most wanted to see making the carbon commitment.

Staples such as Kingsmill bread, Walkers crisps, Tate & Lyle sugar and Tesco milk, orange juice, lightbulbs, and washing detergent already bear the Carbon Reduction Label.

“People are increasingly looking for simple ways to reduce their carbon footprint, without sacrificing on price, taste or convenience.

They want to protect the environment, but are often confused about how they can make a difference,” points out Euan Murray from The Carbon Trust. “They want to see at a glance which companies and brands are doing their bit to tackle climate change. The Carbon Reduction Label is on a wide range of our favourite household brands and is a badge of assurance that consumers can look for to help them decide what makes it into their trolley.” J

I PROJECT MANAGEMENT

Capital Projects Management – Avoiding Buyer’s Remorse

By John Fenton, Director of Coriolis here is an almost endless stream of graveT yard jokes about projects, and most people who have been involved in a project will wince when they hear them rather than chuckle. There are a host of reasons why this should be so, some valid and others not, but anyone thinking of undertaking a major investment would be well advised to have a clear picture of the pitfalls and how they may best be avoided. The purpose of this article is to give a few brief and unpretentious (ie with a fighting chance of being remembered) guidelines for those brave enough to venture into the world of Capital Expenditure.

“At the heart of every large project is a small project trying to get out”

People like to spend other people’s money, and Capital Expenditure is an exciting way of doing it. A result of this is that once an idea is put forward, the drive becomes one of finding a justification. If it doesn’t quite meet the required criteria, benefits become exaggerated.

To reduce the chance of this happening several options should always be considered based on the same criteria, and if the objective is an increase in capacity, one of the options should ideally be one that involves no capital expenditure at all.

“If there is a 50% chance of something going wrong then 9 times out of 10 it will” - “The more you plan the luckier you get”

If the project has passed the first stage, the next thing people want to do is bring in that well known oxymoron, the civil engineer.

Unfortunately what is actually required now is detailed planning. An extra day spent at this stage costs a good deal less than the cost of rectifying an error later on, so you are well advised to invest in it. The most overlooked area is risk and contingency planning. It’s difficult, so it’s given to someone with a very high forehead who works in a cellar somewhere in sector C. Think of it this way, would you rather say…?

“A problem has arisen but there is a contingency in place and the project will still finish on time and within the allowed costs anticipated” or “A problem has occurred that could not have been foreseen (you may

plan then we were expecting that the ‘Turn Key’ solution would be just that. No learning curve, all the equipment working in perfect harmony with no communication bugs etc. In fact a triumph of hope over experience. be challenged at this point, hindsight being so perceptive) and the project will now finish over budget and 2 months late.”

A quick note on risk. The insurance industry shares major risks, and so should any business investing significant capital.

External contractors must have rigorous acceptance criteria to ensure it is in their interest, as much as yours, to succeed. It’s not because you want to sue them it is to ensure you that they are genuinely confident and keen to do the work as specified. Skillful management and oversight of the contractors who supply the goods and services that a project requires has always been crucial to maximizing its economic value. Anyone who has ever had an extension on their house will have experience of this at first hand “There is no such thing as scope creep, only scope gallop”

Good project execution is a business process requiring tight control of activities, times and content. Leaving it to the ‘Project Engineers’, whose interest is rightly focused on the planned physical changes, is an abdication of responsibility. A good project manager will know at the end of every week exactly what is ahead and behind and have plans in place to recover the off-schedule conditions. Running a project is a little like being the captain of a ship. You need to ensure the effective coordination of all the crew; Commercial, HR, Supply Chain, Operations etc, but above all, you need to know where you are and that you are travelling in the right direction.

“The first 90% of a project takes 90% of the time; the last 10% takes 90% as well”

Once all the construction and installation work has taken place the new equipment can start to operate in anger. Its initial performance will in all probability be well below that targeted. If the original plan was a good one this will have been expected and the ramp-up will be on schedule. If it was a poor FOOD & DRINK BUSINESS EUROPE, JUNE 2010

“Some projects finish on time in spite of project management best practices”

The purpose of the post programme assessment, despite views to the contrary, is not to allocate blame for the difficulties experienced. Its most important function is to identify possible areas in which the original expectations are not yet being met and to plan a way to close the gap. Done well, this will make sure that the project is ultimately a complete success. Only once this has been completed should the project be critically reviewed to determine what can be done differently in future. Experience suggests that most of the time future ‘fixes’ are focused on symptoms rather than root causes. The result of this is that whilst those symptoms are avoided next time, a new batch will arise. As with the original planning, the quality of thinking at this point will be fundamental to future success.

“What is history but a fable agreed upon” – Napoleon.

“Powerful project managers don't solve problems, they get rid of them”

The management of capital projects can be critical to businesses effectively implementing their strategies. Given this it is surprising how many key business capital projects are poorly thought through and indifferently managed.

Effective, powerful management of capital projects is critical to the successful delivery of business strategy. Despite this, many capital projects are poorly thought through and indifferently managed. Done well, project management can transform a business and turn vision into reality. This can only be achieved when project managers think and act as business and operational managers, ensuring that all areas; HR, Finance, Engineering, Planning, Sales, Operations, Marketing, etc work together to deliver the best possible financial and operational outcome. For further information visit www.coriolis.co.uk J 29

Urschel Celebrates 100 Years of Precision Food Cutting Equipment ounded in 1910, Urschel Laboratories is F the world leader in food cutting equipment manufacturing. Urschel is not just a

around the world. In 1972, Urschel developed a stronger presbuilder of machines. The company works ence in the UK with with customers to develop solutions to pro- the opening of cessing problems, finding – or creating – Urschel International the best Urschel machine to fit any produc- in Leicester, Engtion situation. land. Other Urschel Commemorating a century in the manu- International subfacturing of precision food cutting equip- sidiary offices ment, Urschel Laboratories continues to throughout Europe enhance its worldwide reputation for excel- soon followed. In lence by working in partnership with cus- 2004, Urschel effectomers to meet the ever-changing chal- tively launched lenges in the market-place. Increases in pro- direct offices in Asia, ductivity, new products, energy-saving beginning with machinery, and cleaner, more precise cuts, Urschel Asia Pacific The Urschel plant in 1929. are just a few ways the engineers at Urschel in Singapore. Other have – and continue – to rise to the direct sales offices soon followed in China, wait for spares. Replacement parts for demands of this dynamic industry.

Thailand, and India. Indeed, a diverse Urschel machines are shipped from an Precision in manufacturing means that international network of knowledgeable extensive multi-million dollar inventory in every cutting machine is carefully designed service and sales staff are key elements in a matter of hours. from the engineering drawings to close tol- the ongoing success of the group.

Urschel seeks to help customers’ busierances on interior cutting parts. Today, “One hundred years of being in business, nesses by manufacturing machinery that Urschel Laboratories manufactures more especially a family-owned business, is pretty performs with precision and reliability. A than 40 precision-engineered size reduction amazing. I've grown-up in this business, global network comprised of Product Test machines, including a wide range of slicers just like my dad and the previous Urschel Cutting Facilities, factory-trained service and dicers for hundreds of processing appli- generation. As fast as manufacturing tech- staff, and knowledgeable, hands-on sales cations. nology changes, it can be hard to keep up representatives work together to fully assist with, and that's why we continue to look customers.

Global Network into the best way to make different parts While Urschel has continued to grow in and machinery. A perfect example of this is Quality Control manufacturing technology, it has also suc- the state-of-the-art foundry that we “A company that manufactures 99% of all cessfully expanded its global sales. In the installed a few years ago. It is one of very parts in-house is very rare these days.

1960's, the company organised a sales force few in the world, and we are able to be at Quality control is a major factor in the across the US and established exclusive the forefront of this new technology,” decision to keep things in-house. The averUrschel distributors in key locations explains Rick Urschel, vice president of age Urschel employee has worked here operations and a about 15 years, and the majority of the member of the people that are hired also retire from here,” fourth generation of points out Dave Whitenack, plant manager with 22 years of service at Urschel. the Urschel family.

A recent expansion of the Urschel Prompt Delivery Product Test Cutting Facility in While other suppli- Valparaiso, Indiana, USA enables Urschel ers may take weeks to meet a growing number of customer to deliver needed requests. Customers are welcome to view parts, Urschel Labor- the test cutting of their product. A compreatories delivers parts hensive report with photos and/or video promptly. The com- can be compiled to fully assist customers in pany realises cus- the evaluation process. A visit to Urschel is tomer concerns of not complete without a tour of the 235,000 the potentially high sq ft factory including Urschel’s newest cost of lost produc- state-of-the-art foundry. Contact Urschel tion time and wasted to schedule a no-charge, no-obligation test product.

With cut of your application - E-mail Urschel Laboratories, info@urschel.com, Tel (219) 464-4811 or An overview of Urschel’s state-of-the-art foundry today. clients don’t have to visit www.urschel.com. J 30

FOOD & DRINK BUSINESS EUROPE, JUNE 2010

Grundfos F & B Hygia Wins Prestigious Award

The Grundfos Hygienic Centrifugal Pump - F&B Hygia - has won ‘Hygienic Solution of the Year’ at the recent Food Processing Awards 2010. Since its launch the F&B Hygia has been making waves in the Food and beverage industries. This cost effective pump, has been designed to meet the strict hygienic requirements of the food industry and is the first hygienic pump range available with high efficiency EFF1 motors fitted as standard.

Designed for CIP (Clean in place), and highly reliable, the F&B-Hygia is made from AISI316 stainless steel with an open impeller and mechanical seal positioned in the flow of the product for optimum clean ability. Its compact design makes it highly mobile and adaptable to any system. For further information about the Grundfos F&B Hygia, contact the sales office on Tel +44 (0)1525 775450. J

tuberculosis. Current thinking on these issues provides essential reading for microbiologists.

For your copy of this informative journal, contact your local Oxoid representative, or email val.stroud@thermofisher.com or visit www.oxoid.com where this, and past issues of Culture, can be viewed and downloaded. J

Bulk Bag and Manual Dump Weigh Batch System

Flexicon (Europe) has introduced a combination Bulk Bag

The latest issue of Culture focuses on two key areas: the newly designated genus Cronobacter, and Mycobacterium bovis, the causative bacterium of bovine tuberculosis.

Oxoid Provides Food Testing Labs with Simple Remel RapID Range of Biochemical Identification Panels

Oxoid Culture Journal Focuses on Cronobacter Species and Mycobacterium bovis

class, with the potential to save time, labour and money.

Unlike alternative methods that require separate inoculation of individual wells, RapID identification panels have a simple, one-step inoculation procedure. Furthermore, each RapID panel uses the same simple procedure, so if you can use one panel, you can use them all. RapID systems provide rapid, same-day results (refs 1,2,3), unlike some alternative methods that require 18-72 hours. For further information contact Oxoid on Tel +44 (0)1256 841144 or visit www.oxoid.com. J

The Remel RapID microbial identification systems are now available alongside the Oxoid range. The onestep inoculation procedure of RapID makes it the easiest ID system on the market to use, according to Oxoid. Results are available in just four hours, making it the fastest and most convenient ID system in its

ers, then empties the batch into mobile storage bins. The sanitary system consists of a bulk bag unloading frame, two hoppers and two flexible screw conveyors that feed a central gain-in-weight hopper under automated control. Material contact surfaces of the system are of stainless steel finished to sanitary standards, with the exception of the polymer conveyor tubes which are removable for rapid, thorough wash down. For further information contact Flexicon (Europe) on Tel +44 (0)1227 374710 or visit www.flexicon.co.uk. J I INGREDIENTS New Appointment Makes Dough For Ulrick & Short

Ulrick & Short, one of the UK's leading clean label ingredients developers, suppliers and manufacturers, has announced a new appointment as part of its ongoing expansion plans. Richard Boulding has taken up the new post of business development executive for the bakery and dairy desserts sector and will be responsible for generating sales leads, researching customer needs, identifying new market opportunities and securing new business.

Having achieved a degree in applied food studies from Sanitary Weigh Batch System sources Brackenhurst College, Mr ingredients from bulk bags and Boulding has worked for well manually dumped sacks, boxes and known companies including other containers, under automated Northern Foods. J control.

and Manual Dump Batching System that weighs bulk materials discharged from bulk bags and/or manually dumped from sacks, boxes and other contain-

The latest edition of Oxoid’s journal, Culture focuses on two key areas: the newly designated genus Cronobacter, an organism that has come to prominence due to its association with severe neonatal infections, necrotizing enterocolitis, septicaemia and potentially fatal meningitis, and Mycobacterium bovis, the causative bacterium of bovine

Richard Boulding, Ulrick & Short's new business development executive.

FOOD & DRINK BUSINESS EUROPE, JUNE 2010

31

I CHILLING & COOLING

ICS Industrial Cooling Saves LVF Over 32% in Kilowatt Hour Usage In Big Business Refit Upgrade CS Industrial Cooling has replaced old, I£40,000 chillers, using an interest-free loan of from the Carbon Trust’s ‘Big Business Refit’. Steve Richmond, works manager at Leeds Vacuum Formers (LVF), says: “The new air-cooled water chiller provided by ICS Industrial Cooling will provide the company with energy savings of over 32% per kilowatt hour, which will pay off the Carbon Trust loan within a few years, after that the savings will go straight onto our bottom line. In the economic downturn, it’s a real boost to cut energy costs by replacing old equipment, especially as we can channel the significant cash savings elsewhere in the business.”

Big Business Refit

The Big Business Refit, an equipment scrappage scheme run by the Carbon Trust, is offering UK small and medium businesses up to £500,000 in interest-free funding, to help them scrap their old power-guzzling equipment and replace it with energy saving models that are more efficient and cheaper to run. The loans are designed to pay for themselves through direct energy savings, so once the loans are repaid; savings go straight onto the bottom line.

“LVF’s use of a Carbon Trust loan to pay for the installation of ICS Industrial Cooling’s energy saving Air-Cooled Water Chiller has created a win, win, win situation. LVF has slashed its energy spend without having to spend company cash upfront on the installation. ICS Industrial

Cooling has increased its revenues through the sale,” says Hugh Jones, director, solutions, the Carbon Trust. “Finally, we at the Carbon Trust are achieving our aim of reducing carbon emissions. We’d urge all other businesses to check their eligibility for the £100 million fund available, and to start saving money now.”

Richard Metcalfe, ICS Industrial Cooling, regional sales director, remarks: “The Big Business Refit has made more businesses aware of the unnecessary burden

that old chillers put on their bottom lines.

With unsecured, interest-free funding available to help businesses replace it, there’s a growing desire amongst our customers to resist the urge to ‘make do and mend’ with old, energy guzzling equipment.”

The Big Business Refit was launched by Dragon’s Den star, Theo Paphitis, to promote the £100 million scrappage scheme after Carbon Trust research revealed that: • 52% of British businesses don’t have the cash to upgrade old, inefficient kit.

• 46% are unaware that they can cut energy costs by replacing old equipment.

• 60% of British firms wait until their kit breaks down completely before replacing it.

For more information visit: www.bigbusinessrefit.co.uk or call 01865 885 873. J

Energy Efficiency Loans Scheme The minimum loan size is £3,000, and the maximum size is £400,000. There are no arrangement fees and applying is straightforward.

All loans are unsecured, interest-free and repayable over a period of up to four years. The loans are designed to pay for themselves through energy savings, so once the loan is paid off savings go straight onto the bottom line.

Energy Efficiency loans are available to firms meeting one, or both, of the following criteria: • Companies that meet the EU definition of a small or medium-sized enterprise, i.e. companies with less than 250 employees and a turnover of less than ?50m (around £42m at today’s exchange rate).

• Companies that are not eligible to participate in the Carbon Reduction Commitment, ie companies consuming less than 6,000MWh of half hourly metered electricity. This typically equates to an annual electricity spend of £500,000.

For more information please visit www.carbontrust.co.uk/loans.

Refrigeration Road Map Shows the Way he commercial refrigeration T market suffers from high carbon emissions coupled with barriers to reduction that are hard for individual companies to overcome. The costs of switching to new refrigeration technology, improving maintenance or changing consumer behaviour are high and having multiple parties involved along the chain makes it difficult to bring about change.

The Carbon Trust is working to bring supermarkets, manufacturers, maintenance companies, industry bodies and con-

sumers together to tackle the problem in a systematic way.

In partnership with the Institute of Refrigeration (IoR) and the British Refrigeration Association (BRA), the Carbon Trust is developing a Refrigeration Road Map that will advise users how to approach carbon reduction over the next 1 to 10 years.

Stakeholder workshops, one to one interviews and written feedback have been used as mechanisms to collate a wide range of views from every group.

This data is being combined with extensive technical research to produce a Road Map that is simple to understand, but highly sophisticated in the way it handles multiple variables and interdependencies.

Each strand of the Road Map will lead to a series of practical

FOOD & DRINK BUSINESS EUROPE, JUNE 2010

recommendations that can be implemented by energy managers and contractors ‘on the ground’. The first of these leakage reduction - is being supported by a series of REAL Zero Workshops run by the Carbon Trust in conjunction with the IoR. o 33

Understanding Chiller Efficiency nergy efficiency for liquid chillers is key E to the Total Cost of Ownership (TCO), and energy efficiency ratios are often used (sometimes misused) to evaluate and compare different chiller types and chiller manufacturers. Care should be taken in using theoretical benchmarks as there are many different industrial standards and chiller performance varies under different operating conditions and in real process circumstances.

Energyst designs and builds chillers to meet the lowest TCO under a wide range of operating conditions and this case study, with one of the company’s customers, demonstrates how chiller and application design can give energy efficiencies that are better than quoted theoretical figures.

Efficiency Ratios

The most common European efficiency ratios for commercial and industrial chillers are the Energy Efficiency Ratio and European Seasonal Energy Efficiency Ratio: Energy Efficiency Ratio (EER) - The Ratio of the cooling capacity to the total power input of the chiller (excl. liquid pump), under conditions specified by an independent institute, eg Eurovent. It is also generally known as the Coefficient of Performance (COP). The EER specified conditions do not often reflect real process conditions and over a period of time actual operating conditions fluctuate.

European Seasonal Energy Efficiency Ratio (ESEER) - The Ratio that is a specified, weighted formula taking into account the possible variations of EER with the (part) load rate and the variations of ambient air and liquid outlet temperatures. The ESEER, in Energyst’s opinion, is the most realistic measure of energy efficiency.

• 3x Energyst EC750 chillers parallel connected to chilled water circuit customer.

Equal flow rate over each chiller is provided by customer (internal pump not operational and in by-pass).

• Total required maximum cool load: 2 MW @ LWT +5 C and + 30 C ambient.

Production chilled water for batch process, improving product quality and increasing production volumes • Project period: 14 months.

Test Methodology

For a fixed period of time during the summer months each identical chiller was monitored (24/7) and data logged with an external power analyser. The parameters monitored were: • Fixed and equal flow for each chiller • Chilled fluid specified (specific heat/density) • Inlet temperature and outlet temperature for each chiller • Total power (kW) consumption per chiller (excluding internal pump).

Chillers were maintained by Energyst technicians in optimal condition, including refrigerant circuit and clean condensers.

Test Results Case Study

Energyst’s approach on this project was to openly demonstrate actual energy efficiencies and relate these directly to the total cost of ownership. The project parameters comprised:

EER calculations were made but, in order to reach a realistic outcome, only data taken during the hottest part of the day (11.00-19.00hr) was used. The results were as follows: • Cool load per chiller varies between 485 kW and 899 kW • Power consumption per chiller varies between 135 kW and 260 kW • Average EER of 3.37 versus theoretical peak load EER of 2.76 • 22% improvement against theoretical value.

Test Reliability

To ensure reliability Energyst defined parameters as described above. Also a sufficient number of measurements were taken which made it possible to use the widely recogFOOD & DRINK BUSINESS EUROPE, JUNE 2010

nised Gaussmethod: • Measured data was analysed and results confirmed by an independent process specialist • The lower average was proven statistically accurate.

Conclusions

Thoroughly understanding how chillers interact and work together in a process application and the many factors contributing to chiller efficiency are key factors in engineering the best solution for a given application against the lowest TCO. Chillers rarely operate at full load for long periods in time, and under the right conditions they can operate at efficiency levels above quoted theoretical values.

The design of chillers should allow them to be adapted to give high efficiencies throughout their operating range.

Technicians involved in designing, specifying and maintaining temperature control solutions must ensure that chillers operate in their most energy efficient mode.

To compare chiller energy efficiencies in use the most realistic standard is the ESEER. Finally, the features to look for when selecting high efficiency chillers include: High Performance: Outlet temperature down to –15 C * Monitoring with GSM modem link * Variable speed pump built into the unit (above 100 kW) * Perfect temperature regulation * Master/slave possibility in combination with heat pumps or air handlers.

Easy to use: Connections that enable units to be attached to existing systems rapidly * Easy to transport with a forklift or a crane * Pump by-pass * Easy to use control panel.

Environmental Friendly: Low noise level * Drip trays * Use of R407C gas (non ozone depleting refrigerant). J 35

CCL Label Auto-Sleeve CCL Label Auto-Sleeve Triple S® – Stretch Sleeves with a difference For some time now, GlaxoSmithKline has been a pioneer in that it is the first company world-wide to use an exciting new labelling technology developed by CCL Label in their Austrian plant situated in Voelkermarkt.

The new technology is a traditional stretch sleeve with a difference. Instead of being limited to containers with parallel or slightly curved label panels, CCL Label’s newly developed Super Stretch Sleeve (or Triple S®) will allow them to apply sleeves to bottles which previously could only be labelled with shrink sleeves.

Capable of handling in excess of 50% stretch, the range of containers which can be labelled using stretch sleeves has suddenly opened up.

The Triple S 120 fully automatic rotary application machine can operate at 30,000 bph and is capable of applying Stretch Sleeves with the same appearance as Shrink Sleeve and OPP RoSo products.

The Triple S applicator allows manufacturers to apply sleeves to bottles which could only be labelled with shrink sleeves.

• Twin Film Feed eliminates sleeve roll change downtime • No expensive heat tunnel required – reducing energy consumption • Application on filled or empty bottles with up to 35% variation in bottle diameter • Sleeves are pre-perforated – eliminating knife-cutting • Quick change modular sleeve stretching stations Application speeds of 30,000 bph can be achieved on the CCL Label designed and built Triple S applicator.

Werner Heissenberg-Str. 6 A-9100 Voelkermarkt, Austria Tel: +43(0)4232 4983 www.ccllabel.com/voelkermarkt/

Depending on the configuration of the container and the required sleeve height, application speeds of 25,000 to 30,000 bph are attainable on the CLL Label designed and built Triple S® 120 applicator. The Triple S® 120 has a twin film feed allowing the machine to maintain a level of efficiency while one roll of sleeves is being changed and Triple S® Technology means that no expensive heat tunnel is required, thereby eliminating an energyconsuming operation from the labelling process.

Another advantage of the system is that the Triple S® 120 can also be used to apply Standard Stretch (up to 10% elasticity) and Modified Stretch (up to 20% elasticity).

The high elasticity of the Triple S® film, coupled with recently developed stretchable inks applied on a 12 colour press means that Triple S® applications would typically use some 40% less material than a comparable shrink sleeve.

When the Environmental Footprints of both Triple S® and other labelling types (Shrink, OPP wraparound and RoSo) are compared, Triple S® comes out on top by a clear margin.

The combination of lower material requirements, no solvents for sealing and no need for shrink tunnels, means that the advantages of Triple S® are not only environmental but economical in that the on-bottle cost is some 30% less than shrink on a like-for-like basis.

The project started on GSK’s Lucozade Sport 500ml bottle some two years ago and has now advanced to a point where an entire production line is entirely dedicated to Triple S® sleeves. The project was timed to coincide with the launch of the ‘Masterbrand’ identity artwork which saw Lucozade Sport convert from a short label to a contoured sleeve offering increased bottle coverage.

Triple S® offers GSK the opportunity to introduce Masterbrand’s market identity into the Lucozade Sport brand at minimum environmental impact and at minimum cost.

I BEVERAGES

GlaxoSmithKline Invests in Drinks Production In line with its strategy of improving productivity while also reducing its environmental impact and carbon footprint, GlaxoSmithKline is investing more than £70 million at its factory at Coleford in Gloucestershire, which produces the famous Lucozade glucose energy and sports drinks along with Ribena, the popular fruit juice-based drinks.

SK is constructing an in-house bottle blowing and moulding operation at the Coleford site for packaging the Ribena and Lucozade brands. The new facility will produce about one billion bottles per year from 25,000 tons of polyethylene terephthalate PET and recycled PET (rPET).

Ribena had already become one of the first bottled drinks brands to move to using 100% recycled PET in 2008. Operating around the clock and employing about 500 people, the Coleford site operates a zero waste-to-landfill policy, reflecting GSK’s sustainability strategy.

new capacity for the production of Lucozade Sport. Coleford now produces about one thousand million units per year.

Coleford is one of 20 GSK sites in the UK. Indeed, the global pharmaceuticals and healthcare giant operates 85 sites across 37 countries.

The Lucozade and Ribena brands are part of GSK’s Nutritional Healthcare division, which also encompasses Horlicks, the well known range of milk-based malted food and chocolate drinks.

G

New CHP Plant To facilitate the expansion of the Coleford factory, GSK has installed a new combined heat and power plant. The new CHP system is a key element in GSK’s policy to reduce its carbon footprint. Indeed, GSK is planning to install other CHP plants at is UK sites.

The Coleford factory has been producing Ribena since 1947. Today, 95% of the total blackcurrant crop in the UK is processed into Ribena. Last year GSK processed nearly 12,000 tonnes of blackcurrants which produced nearly two mil-

Andrew Witty, chief executive of GSK.

lion litres of concentrate – enough for over one billion servings of Ribena.

Evolution The first Lucozade line was installed at Coleford in 1957 and the factory has developed as the two brands have evolved to meet changing consumer demands.

Table One: The consumer appeal of the Ribena brand has been broadened by the addiLeading Suppliers in the £6.2b UK Soft tion of other fruit bases and various Drinks Take-home Market, 2009 lower sugar versions. Lucozade has Value Change on 2008 been transformed from a glucose drink 1 CCE £1.710b 4% to aid recovery of people who were 2 Britvic £728m 6% unwell into a premium range of nutri3 GlaxoSmithKline £468m -3% tional and sports drinks.

4 Danone 5 Tropicana UK 6 Red Bull 7 AG Barr 8 Innocent 9 Gerber Foods 10 Nestle Waters

£325m £301m £186m £160m £107m £63m £63m

-3% -7% 0% 9% -4% -13% 12%

Source: Nielsen Scantrack, MAT 26 December 2009

Heavy Investment To accommodate the growing popularity of both brands, heavy investment has been made at Coleford.

Between 2000 and 2005 over £40 million was spent including refurbishment and upgrade of the Ribena blending area and the installation of

FOOD & DRINK BUSINESS EUROPE, JUNE 2010

Leading Player in UK Soft Drinks 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 (see Table One). Indeed, 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 (see Table Two).

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.

Mixed Performance Nutritional Healthcare turnover grew by 3% to £851 million in 2009, driven by the strong performance of Horlicks, which increased sales by 17% to £255 million.

However, this was partly offset by a decline in Lucozade sales - down 3% to £376 million - which was impacted by lower sales in the ‘impulse’ channel of the UK soft drinks market.

However, in the first quarter of GSK’s current financial year, all three brands are performing well with sales growth of 17%

by Horlicks to £87 million, Luzozade up 5% to £82 million and Ribena ahead by 11% to £43 million.

37

The Nutritional Healthcare business contributed about 18% of the sales of GSK’s Consumer Healthcare turnover in 2009, which also includes over the counter medicine and oral healthcare.

Expanding Lucozade Internationally GSK is now launching its Lucozade brand, which is currently predominantly sold in Britain, Ireland and Hong Kong, in the vast Chinese market after signing an agreement with President (Shanghai) Trading Co, a trading arm of Uni-President China Holdings, a leading food and beverage company in China.

The move is part of the GSK’s strategy to increase its presence in emerging mar-

kets of the world. Andrew Witty, chief executive of GSK, plans other launches through partnership deals in markets such as the US, 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 overall sales. J

Table Two:

Top Brands in the £6.2b UK Soft Drinks Take-home Market, 2009 Value £1,018b £339m £307m £271m £270m £186m £127m £126m £116m £111m

1 Coca-Cola 2 Lucozade 3 Robinsons 4 Pepsi Cola 5 Tropicana 6 Red Bull 7 Ribena 8 Schweppes 9 Actimel 10 Volvic

Change on 2008 4% -3% 2% 5% -6% 0% -3% 4% 7% -7%

Source: Nielsen Scantrack, MAT 26 December 2009

Centrax Generates Energy For GSK entrax won the order to supply C GlaxoSmithKline with a CX501-KB7 generator set package for a new Combined Heat and Power energy centre at the Coleford factory, in the Royal Forest of Dean, Gloucestershire, England. The CHP plant was installed in order to support the implementation of a new, on-site bottle blowing and pre-form manufacturing operation which has increased the site’s heat load.

Continuity of supply, operational flexibility of the CHP package and integration of the package into the site’s current electrical infrastructure were all key points of focus for the project.

The gas-fuelled Centrax generator set provides 5.2 MW of power plus recovered heat for GSK’s Coleford factory, which manufactures Ribena and Lucozade energy drinks, producing up to one thousand million units per year.

In addition to the KB7 generator set, Centrax also supplied a waste heat recovery boiler, gas fuel compressor, black start diesel generator and control systems for the CHP plant.

Challenges Centrax had to meet a number of challenges during the project, including the limited space available with the existing building and noise issues due to the closeness of the plant to residential areas, according to Ian Clulow, regional sales manager at Centrax Gas Turbines.

The project management team worked to strict CDM (construction, design & management) criteria and HSE requirements.

During the work, GSK’s production lines remained operational, and the installation was carried out alongside several other con-

Lakeland Dairies Bailieboro, County Cavan, Ireland.

struction projects at the site.

The new Energy Centre incorporates a SCADA system based on a Centrax inhouse generator set monitoring system.

This was expanded to include boiler, gas compressor, water treatment plant, diesel generator and MV systems.

The monitoring system handles inputs from an independent and dedicated plant operating system and outputs from GSK’s central control system, and also features a remote diagnostics link to the Centrax headquarters.

Worldwide Reputation Centrax is based in Newton Abbot, Devon in the South West of England. The company was founded in 1946 by Richard H H Barr OBE and Geoffrey R White after both worked with Sir Frank Whittle in the Power Jets Design Team during the Second World War - pioneering the use of the gas turbine for use in aircraft propulsion. This background, together with over 60 years of experience in the industry, has given Centrax a worldwide reputation for quality FOOD & DRINK BUSINESS EUROPE, JUNE 2010

and reliability in the power generation and complex component manufacture markets.

Centrax comprises two manufacturing divisions – the Gas Turbine Division (GTD) and Turbine Components Ltd. Specialising in power generation, the Gas Turbine Division supplies gas turbine-driven generator sets - of their own design and exclusively incorporating Rolls Royce turbines - in the range 2.5 to 60 MW, for the power generation/cogeneration markets worldwide.

Turbine Components Ltd is an approved supplier of high-quality complex machined components and assemblies to many of the major Original Equipment Gas Turbine engine manufacturing companies (OEM’s) world-wide.

Project at Lakeland Dairies Within the food and beverage processing industry, Centrax also recently received an order from Dalkia Alternative Energy (a joint venture company with Fingleton White & Co) to supply a CX501-KB7 generator set for installation at Lakeland Dairies Co-op in County Cavan, Ireland.

The gas-fuelled KB7 package, located in a new purpose-built building adjoining an existing boiler house, is designed to supply 5 MW of power plus heat for the production process at the dairy as part of a CHP scheme.

Lakeland Dairies is Ireland’s second largest dairy processing cooperative. J 39

Taking PET Packaging to a New Level While Offering Lower Costs and Reduced Carbon Footprint CL Label Auto-Sleeve of Austria, part of CanadaC based CCL Industries, has developed TripleS Sleeve, a new super stretch sleeving technology that takes PET packaging to a new level by offering a sleek and contemporary look on shelf, while at the same time providing food and beverage manufacturers with lower costs and a reduced carbon footprint.

TripleS labeling technology is an unusually elastic stretch-sleeve film, capable of handling in excess of 50% stretch. It allows sleeves to be applied to bottles which previously could only be labeled with shrink sleeves. The sleeve fits the bottle like a second skin expanding and contracting with the bottle, making it ideal for squeezable sports drink bottles.

Application speeds of 25,000 to 30,000 bph are attainable on the CCL designed and built Triple S 120 applicator.

GlaxoSmithKline was the first company worldwide to use the new labelling technology developed by CCL Label Auto-Sleeve at its factory at Voelkermarkt in Austria.

Triple S sleeve technology provides food and beverage manufacturers with a number of environmental and cost savings benefits.

TripleS technology was used in Lucozade’s 3 Lions promotion

to

mark

England’s participation in the World Cup. In order to make space for extra promotional information the machines were modified to

Application speeds of 25,000 to 30,000 bph are attainable on the CCL designed and built Triple S 120 applicator.

Environmental Benefits The environmental advantages of TripleS sleeve technology include: • Carbon footprint is very favourable when compared with shrink sleeves.

• Recyclability - the sleeve requires no glue so recycling of bottles/containers is easy and above all clean as PET from the bottles and PE from the sleeves are easily separated in the recycling stream.

• Application requires no heat.

Indeed, CCL’s low carbon footprint LDPE stretch sleeves are used extensively by two of the UK’s largest dairies and their application without heat or glue allows clean, efficient and residue-free separation from HDPE flakes.

CCL Label Auto-Sleeve produces a complete range of stretch sleeves for a wide variety of dairy applications suitable for all common dairy containers regardless of shape. CCL can offer surface or reverse flexoprinted stretch sleeves in up to 12 colours with 360 degree graphics coverage.

allow application of a 195mm tall sleeve (the standard sleeve is 173mm tall).

40

Cost Savings The cost savings of TripleS sleeve technology include:

• Around 30% less than like-for-like shrink sleeves.

• Uses up to 40% less material.

Furthermore, with TripleS sleeve technology there is no requirement for heat tunnels on bottling lines thereby leaving more room in tight areas, which is a further cost saving in itself.

Partnership With Krones Indeed, Krones has recently acquired the rights to TripleS technology. The German bottling and labeling specialist will build application machines, which are due to be launched later this year, leaving CCL to concentrate on its core business of sleeve production.

CCL and Krones will market the TripleS technology together, chiefly to the beverage and dairy industries. For further information contact CCL Label Auto-Sleeve on Tel +43 (0)4232 4983 or visit www.ccllabel.com/voelkermarkt. J CCL Industries – A World Leader in Speciality Packaging and Labelling Solutions With headquarters in Toronto, Canada, CCL Industries is a world leader in specialty packaging and labelling solutions for the consumer products and healthcare industries. The company manufactures pressure sensitive, shrink sleeve and in-mould labels, aluminum containers and plastic tubes, providing specialty packaging solutions to global producers of consumer brands in the home and personal care, healthcare and specialty food and beverage sectors.

Employing over 5,000 people, CCL Industries operates 57 production facilities in North America, Europe, Latin America, Asia and Australia.

For over 50 years CCL has been providing innovative packaging and labeling solutions to companies such as Coca-Cola, Danone, GlaxoSmithKline, Nestle and PepsiCo. The company’s extensive capabilities give customers a range of options for enhancing brand image, security and functionality. For more information visit www.cclind.com.

FOOD & DRINK BUSINESS EUROPE, JUNE 2010

I FOOD GRADE LUBRICANTS

Petro-Canada Introduces PURITY FG2 With MICROL MAX Grease etro-Canada has enhanced its PURITY P FG with MICROL product line with the introduction of PURITY FG2 with MICROL MAX grease. As part of the first industrial strength food grade lubricant line to contain MICROL – an antimicrobial preservative registered by the US Environmental Protection Agency (EPA) for use in food grade lubricants – PURITY FG2 with MICROL MAX has the required industry credentials and fits perfectly in HACCP (Hazard Analysis and Critical Control Point) and GMP (Good Manufacturing Practice) plans.

The improvements made to the PURITY FG with MICROL product line address a number of factors including lubricant deterioration, fouling and odour caused by microorganisms.

High Performance

PURITY FG2 with MICROL MAX maintains consistency and lubrication in the presence of food acids, juices and by-products; it withstands higher temperatures; does not run from bearings under steam cleaning, as well as resists water washout, water jet spray and most sterilizing chemicals used in cleaning. These advancements continue to help Petro-Canada’s customers maintain the safest, most competitive food manufacturing plants under extremely demanding conditions.

PURITY FG2 with MICROL MAX also helps protect a company’s machinery, preventing seizure, scuffing and spalling under shock loading conditions and ensures longterm equipment protection from rust and corrosion.

PURITY FG2 with MICROL MAX is available as a grease and complements the MICROL hydraulic and gear fluid line. It is currently the only food grade lubricant on the market that is fully compliant with both the US Food and Drug Administration (FDA) and EPA regulatory requirements.

PURITY FG2 with MICROL MAX is H1 registered by NSF International and has received Halal Certification.

The product also maintains food allergy safety, it is free of gluten, contains no peanuts, tree nuts or their derivatives and is manufactured in a facility that does not manufacture, store or otherwise handle any peanut or tree nut product.

Innovation

“PURITY FG with MICROL continues to bring significant innovations to the food processing industry,” says Colleen Flanagan, category portfolio manager, Petro-Canada Lubricants. “The latest generation of PURITY FG with MICROL not only inhibits microbial growth in the lubricant to prevent degradation in planttough environments, it operates well under wide temperature swings and resists water washout, a major challenge and concern for most food manufacturing plant managers.”

Food processing machinery lubricants have some unique challenges.

Stringent regulations, harsh environmental conditions and rigorous plant operations require well designed food grade lubricants. Petro-Canada has established an excellent reputation in quality and performance with its PURITY industrial food grade line.

With the addition of MICROL, a FOOD & DRINK BUSINESS EUROPE, JUNE 2010

new level in lubricant product protection was achieved.

Now with the improvements to the PURITY FG with MICROL product line, Petro-Canada is set to change the face of food manufacturing once again.

Laboratory Testing

In recent Gelda Scientific laboratory testing, in a test modeled after those performed in the pharmaceutical industry, PURITY FG2 with MICROL MAX was found to create a zone of inhibition, an area surrounding the grease that protects it from the growth of microbes that can cause odour and product degradation, to help maintain the lubricant’s effective operating condition. Competitive calcium sulphonate and polyurea Food Grade greases that were tested were not able to produce the same zone of inhibition during the testing.

“Petro-Canada is breaking ground in the area of protecting food grade lubricants from deterioration caused by microorganisms,” says Dr Henry Sapiano, manager of R&D fluids and greases.

“Lubricants and greases are the fundamental building blocks of successful food manufacturing processes. Petro-Canada is helping its customers build a better way at each step in the processes.”

Petro-Canada is the world’s largest producer of pharmaceutical grade white oil used in a variety of food processing industries, offering a complete line of industrial lubricants suitable for ancillary use in food processing plants. Petro-Canada blends and packages more than 350 different lubricants, specialty fluids and greases that are exposed to more than 70 countries on six continents. J 41

I SUSTAINABILITY

Coca-Cola Hellenic Leads the Way in Sustainability and Energy Efficiency Coca-Cola Hellenic is continuing to lead the way in terms of sustainability within the global beverages industry. oca-Cola Hellenic has been listed on the Dow Jones Sustainability Indexes for the second consecutive year. This places the group among the top 10% of most sustainable companies worldwide and within the top five sustainable beverage companies.

Most recently, a coalition of global investors from 13 countries, who manage more than $2.1 trillion of assets, has commended Coca-Cola Hellenic for its leadership in reporting on environmental, social and corporate governance (ESG) activities.

C

Coca-Cola Hellenic has also been working with suppliers to develop a new generation of cold drink equipment that eliminates hydrofluorocarbons (HFCs) and is up to two-thirds more energy efficient.

Global Leader Serving a population of approximately 560 million people in 28 countries and selling over 2 billion unit cases annually, CocaCola Hellenic is the largest bottler of CocaCola products in Europe. Headquartered in Athens and listed on the Athens, New York

Sir Michael Llewellyn Smith, chairman of the Social Responsibility Committee, Coca-Cola Hellenic.

and London stock exchanges, Coca-Cola Hellenic’s two major shareholders are KarTess Holding, a private holding company, and The Coca-Cola Company.

Coca-Cola Hellenic achieved net profit of Eur437 million in 2009 on net sales of Eur6.54 billion. Coca-Cola Hellenic offers a broad range of soft drinks in the sparkling, juice, water, sport, energy, tea and coffee categories. The Athens-based group is an integral part of the global Coke System and accounts for about 9% of The Coca-Cola Company’s total volumes.

Broad Geographical Footprint Created in 2000 following the merger of the Athens-based Hellenic Bottling Company and the London-based CocaCola Beverages, Coca-Cola Hellenic has continued to expand its territorial reach and its drinks empire now extends from as far west as Galway in Ireland, to Petropavlovsk, the easternmost point of Russia. This broad geographical footprint provides attractive growth opportunities and reduces the company’s dependence on any particular market.

Coca-Cola Hellenic’s largest market is Russia, followed by Italy, Romania, Poland, Nigeria and Greece. Coca-Cola Hellenic divides is territories into three market cateFOOD & DRINK BUSINESS EUROPE, JUNE 2010

Doros Constantinou, chief executive of Coca Cola Hellenic.

gories – established, developing and emerging. Established territories include markets such as Italy, Ireland, Switzerland and Greece, while developing markets include Latvia, Poland, Croatia and Slovakia. The group’s emerging markets include Russia, Belarus, Ukraine, Romania, Bulgaria, Serbia, Moldova and Nigeria.

Strong Portfolio of Brands Coca-Cola Hellenic has a strong portfolio of premium international brands complemented by leading national brands. The portfolio comprises world leading brands such as Coca-Cola, Diet Coke, Coca-Cola Zero, Fanta and Sprite as well as brands owned by Coca-Cola Hellenic including Amita, Avra, Deep RiverRock and Fruice.

Coca-Cola Hellenic also distributes brands licensed by other companies, such as Nestea.

In recent times, Coca-Cola Hellenic has 43

Coca-Cola Hellenic is building 15 Combined Heat and Power (CHP) units in 12 countries.

successfully expanded its product range to meet changing consumer demands, especially the shift from carbonated to still drinks. Indeed, the group is now well positioned to capitalise on the growing health and wellness trend within the soft drinks market in Europe. In 2001, sparkling beverages generated 90% of total volume sales of 1.2 billion unit cases and water contributed 6% and still beverages 4%. The proportion of sparkling beverages has since declined to 62% of total volume sales, while water has increased to 21% and still beverages (including juice and tea) to 16%.

Commitment to Sustainability Coca-Cola Hellenic is committed to behaving in a socially responsible manner throughout all of its operations and has officially embedded the principles of sustainability into its business strategy.

“Sustainability is our goal,” stresses Doros Constantinou, chief executive of Coca Cola Hellenic. “We must ensure the sustainable growth of our business and contribute to the sustainable development of our communities.”

Coca-Cola Hellenic has pledged to combat global warming by building 15 Combined Heat and Power (CHP) units in 12 countries resulting in a 20% reduction of CO2 emissions across 80 beverage production plants (see Panel). As part of its commitment to sustainability and in line with its focus on improving operating efficiency, Coca-Cola Hellenic is also investing in installing photovoltaic panels on the roofs of bottling plants, and developing cold drink equipment (CDE) with a carbon footprint on average 50% smaller.

Low Carbon Strategy Like other European food and beverage companies, Coca-Cola Hellenic has had to adjust its strategy to the changed market and business environment but has still persisted in prioritising energy and climate protection.

“The global economic downturn continued to present major business challenges in 2009. By controlling costs and minimising impacts, we are well-positioned for recovery – and we are seeing signs of this in some of our territories. While cost-saving measures

were applied to every part of our business, we maintained our commitment to our Sustainability strategy, and to achieving results in programmes, throughout the downturn,” points out Sir Michael Llewellyn Smith, chairman of the Social Responsibility Committee, Coca-Cola Hellenic.

“Energy and climate protection remain a priority as we put our business onto a lowcarbon growth path. Incremental improvements are no longer enough. In the largest energy-efficiency initiative in our industry we constructed three more Combined Heat and Power (CHP) units during 2009.”

He continues: “By building highly efficient CHP units in 15 bottling plants across 12 countries, we will cut CO2 emissions from manufacturing by 20% before 2020 - the current EU target. As a result, we were named an Official Partner of the European Commission’s Sustainable Energy Europe Campaign.”

Cold Drink Equipment Coca-Cola Hellenic has also been working with suppliers to develop a new generation of cold drink equipment that eliminates hydrofluorocarbons (HFCs) and is up to two-thirds more energy efficient. “These groundbreaking initiatives dramatically reduce our CO2 emissions – and with immediate effect,” he adds.

The introduction of 10,000 cold drink

Coca-Cola Hellenic serves a population of approximately 560 million people in 28 countries and sells over 2 billion unit cases annually.

units in 2009 brought the total in the marketplace to 18,000 - a figure that will be trebled by the end of 2010, helping to reduce the company’s Scope 3 carbon emissions.

Energy Efficiency Helps to Fuel Coca-Cola Hellenic Coca-Cola Hellenic is constructing 15 highly energy efficient plants, designed to substantially reduce CO2 emissions, across the group’s territories in Europe and Africa, including eight EU Member States. The first combined heat and power (CHP) plant, constructed in partnership with power development company ContourGlobal, was opened at Coca-Cola Hellenic’s soft drinks bottling facility in the city of Ploiesti in Romania in 2009.

“The opening of the CHP plant represents a milestone to ensure the sustainable development of our operations, and of the communities we serve,” explains Doros Constantinou, chief executive of Coca Cola Hellenic. “Across all of our 28 territories we have been working to increase efficiencies and reduce CO2 emissions, the main culprit in climate change.”

The CHP plant supplies highly efficient, clean electricity as well as heat and cool- ContourGlobal Quad Gen plant at ing for the soft Ploiesti. drink production facility. At the same time, clean electricity is delivered to the local grid, providing energy efficient power for the surrounding community in Ploiesti.

The development of the Ploiesti CHP plant follows a pilot GE’s innovative Jenbacher cogeneration project in Hungary in 2006 which reduced CO2 emissions by technology is being used at Ploiesti.

43%, equivalent to a 20% reduction across all 80 beverage production plants, well ahead of the 2020 deadline for emission reductions set by the European Union. Coca-Cola Hellenic and ContourGlobal are scheduled to open up to three more CHP plants in 2009 with others following in 2010 and beyond.

Another two CHP plants were completed last year and the remaining 12 projects are due for completion by the end of 2011.

FOOD & DRINK BUSINESS EUROPE, JUNE 2010

45

ronmental impacts of our supply chain, which are considerably greater than those of our operations. The corporate water footprint which we have developed for the first time will be a major help in addressing such impacts.”

Another focus in 2009 was the strengthening of measures to protect employees. A structured three-year Health & Safety plan was begun aimed at substantially cutting accidents in the workplace. During the year a further five plants achieved the international occupational health certification, Through all of its actions in 2009, relative scope 1 and 2 emissions were reduced by 4%, bringing the total amount lowered since 2002 to 31%.

Packaging and Water Management Another aspect of Coca-Cola Hellenic’s climate strategy is the light-weighting of packaging, which improved efficiency by avoiding more than 4,500 tonnes of materials in 2009 - 9% more than the previous year.

Across operations, through company-wide recovery programmes, the equivalent of 66% of bottles and cans was recycled.

Special attention was also given to the protection and preservation of water resources. In addition to continuing the construction of water treatment facilities at bottling plants, partnerships with govern-

ments, NGOs and communities were established and further developed to conserve waterways, including those involving the Danube and Tisza river systems.

“Our packaging and recycling programmes are reducing a major source of indirect CO2 emissions, while our water stewardship programmes help our business adapt to growing water scarcity, the most tangible reality of climate change,” Sir Michael Llewellyn Smith remarks. “For the second consecutive year, we decreased our absolute water use and are now close to stabilising absolute CO2 emissions. By doing so, we are decoupling business growth from a corresponding increase in environmental impacts.”

He adds: “Nevertheless, we still have much work to do in addressing the envi-

OHSAS 18001, and the company recorded a drop in serious accidents of 26% compared to 2008.

Restructuring “The continued economic downturn in 2009 meant that we had to restructure our business to remain competitive. We do not lightly take decisions regarding lives and livelihoods, and worked hard to minimise redundancies, focusing primarily on natural attrition, hiring and pay freezes. We ensured that restructuring was conducted fairly and with respect to all those involved,” Sir Michael Llewellyn Smith explains.

Throughout the downturn, the soft drinks giant has continued to support the many partnerships that help it deliver effective programmes. For instance, Coca-Cola Hellenic continues to demonstrate its commitment to recognised principles of good corporate citizenship by supporting the UN Global Compact.

The group also actively participates in

the CEO Water Mandate and Caring for Climate and supports local networks in 13 countries.

Coca-Cola Hellenic is helping to raise awareness of the urgent need for climate action. The group attended the 2009 Copenhagen climate summit, where it promoted its low-carbon technologies.

“Although our sustainability goals are

long-term, we already see benefits. By developing new technologies and insights, we are positioning our business for more resource-efficient and lowercarbon growth. We also gain reputational benefit as an employer, business partner, member of the community and business in which to invest” he concludes. J

Coca-Cola Hellenic Uses Entropy Software to Improve Environmental and Health & Safety Management ustainability ambitions for a company S align with a culture of continuous improvement, which in turn means setting objectives and targets to enable a movement from compliance management to performance improvement.

In line with global reporting standards, Coca-Cola Hellenic Bottling Company publishes annual CSR reports which were once created with general-purpose spreadsheet software, but are now a result of investment in Entropy Software from BSI. The Entropy solution allows Coca-Cola Hellenic to improve its reporting process by providing a more efficient method of gath-

ering information and communicating effectively across the company’s 80 sites.

Entropy Software assists this leading non-alcoholic beverage group to heighten management of Corporate Social Responsibility (CSR) and sustainability commitments throughout its 28 countries of operation.

Entropy Software is a web-based platform which offers a proven solution for organisations to collect and report data with regard to environmental and health and safety compliance. It offers a proven solution for organisations to manage and mitigate risks; take accountability and allocate internal and external action planning (Corrective and Preventative Actions – CAPA); manage the whole audit process; improve and share sustainable business practices; and respond more proactively to external pressures.

Gary Brewster, operational sustainability director for Coca-Cola Hellenic, says: “Entropy Software helps us to assess and control risk, compliance and performance in FOOD & DRINK BUSINESS EUROPE, JUNE 2010

areas of CSR such as corporate governance, environment, health and safety, quality and supply chain compliance management. It also allows us to capture occupational health & safety incidents, which is another key area of importance.”

Rob Wallis, managing director of BSI for EMEA, comments: “With its extensive pan-European country network, the group’s deployment of Entropy Software will add considerably to the protection of the environment and the health and safety of many thousands of people, as well as helping drive Coca-Cola Hellenic towards sustainability.”

Find out more about how food and beverage companies across the world are gaining commercial benefit from using Entropy Software for sustainability management by emailing to info.entropy@bsigroup.com. J 47

I SUSTAINABILITY

Beverage Refrigeration Solutions From Frigoglass rigoglass is the leading player F in the global Ice Cold Merchandisers (beverage coolers) market and is the largest glass bottle producer in West Africa, meeting the needs of beverage companies across all drinks segments.

Being the most geographically diverse company in the ICM field, Frigoglass operations span over 19 countries across five continents, including production hubs in Romania, Russia, Greece, Turkey, India, China, Indonesia, South Africa, Nigeria, and the USA and sales offices in Poland, Norway, Ireland, Kenya, Philippines and Germany.

The company's customer base consists of the Coca-Cola Company Bottlers (such as Coca-Cola Hellenic, Coca-Cola Enterprises, BIG, Coca-Cola Amatil, CocaCola Sabco), brewers (such as Heineken, SABMiller, Carlsberg, ABInbev, Efes), and dairy companies (Nestle, Danone).

Frigoglass aims to provide superior, bespoke solutions in beverage refrigeration which are proven to drive cold drink sales, whilst at the same time promoting sustainable development in its operations in order to minimize the impact on the environment. In this context, Frigoglass continues to maintain its investment in Research & Development, and recently launched the Ecocool range of products.

Frigoglass also provides its customers with a fully integrated service offer through its independent business unit, Frigoserve, which provides best-in-class post-sales service, such as maintenance, refurbishment, and spare parts for all cold drink equipment.

Frigoglass was recognised amongst the top three companies in Europe for the Product Award in the Sustainable Development category, for the introduction of the Ecocool range of beverage cool-

ers (ICMs). The winners were announced at a ceremony on 2nd June 2010, during Green Week, the Commission's major annual environmental conference and exhibition event, in Brussels.

These units use natural refrigerants that significantly reduce the impact on the environment both in terms of greenhouse emissions and in terms of energy consumption.

While conventional refrigerants have an average Global Warming Potential (GWP) of 1,300 over a period of 100 years, these new cutting-edge alternatives have a GWP of less than three.

Additionally, all Ecocool units have active and passive energy conservation features that reduce power consumption by up to 50% compared to conventional models. J

Howard Tenens Wins Corporate Responsibility & Sustainability Supplier from CCE K-base haulage and wareU house supplier Howard Tenens has won the corporate responsibility & sustainability supplier for 2009 awarded by Coca Cola Enterprises. On 25th May, Coca-Cola Enterprises (CCE) held its first Supplier Sustainability Summit and Awards Ceremony in Brussels. The summit comprised a series of workshops to discuss ideas and opportunities for collaboration between CCE and its suppliers to address sustainability issues.

Peter Morris, chairman of Howard Tenens, accepting the award at This was followed by an Sustainability Summit in Brussels. awards ceremony, where CCE’s chairman and chief executive, John Brock, and president of to those suppliers who contributed most to Europe, Hubert Patricot, presented awards the success of the business in 2009.

“2009 was an excellent year for our business in Europe, and we partly owe this success to the strong relationships that we have built with suppliers,” said Stephen Moorhouse, general manager and vice president of CCE’s European Supply Chain.

“We have put Corporate Responsibility and Sustain-ability (CRS) at the heart of our business, and are therefore delighted to present haulage and warehousing supplier, Howard Tenens, with this year’s CRS award. This recognises their considerable achievethe CCE ments in helping us to reduce our CO2 emissions, through trialling gas-fuelled vehicles, and also in developing a new sustainable warehouse.” J

FOOD & DRINK BUSINESS EUROPE, JUNE 2010

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I SUSTAINABILITY

Developing a Sustainable CO2 Business Model With Carbon Capture he rise in awareness of T global warming has created heightened consumer, regulatory, and industry interest in clean forms of energy generation.

Specifically, the impact on the natural environment from the burning of fossil fuels has brought increased attention to technologies that capture carbon dioxide from flue gas.

A number of projects are in development around the world that aim to utilise more energy efficient absorption processes for the capturing of carbon dioxide from flue gases. These pilot projects are for very large scale carbon capture and storage applications. However, for smaller scale carbon capture applications, Union Engineering already has developed and supplied fully proven and commercialised technologies and is constantly improving their technology for the recovery of carbon dioxide from flue gases.

This technology can be used in a number of applications where the benefits are truly cleantech, meaning that the technology will improve operational performance, productivity, and efficiency while reducing costs, inputs, energy consumption, waste, and pollution.

The Capturing Process With capture plants from Union Engineering, carbon dioxide can be recovered from any gas stream based on the combustion of fossil fuels, including coal, heavy fuel oil-fired steam boilers, and natural gas-fired combustion engines. Moreover, the technology can be used to capture carbon dioxide from nonpower generation sources, like lime kilns.

The capture plants from Union Engineering are based on the most well proven absorption technology currently available on the market, namely monoethanolamine (MEA). MEA is a primary amine that reacts readily with carbon dioxide. Since the reaction is purely chemical absorption it works well with gas streams having low partial pressure

like CO2.

In addition to reducing carbon dioxide emission into the environment and turning the flue gas into a sellable product, the mandatory pretreatment of the gas can include the catalytic reduction of nitrous oxides and the removal of sulfur oxide and particles by wet scrubbers. By removing these environmentally unfriendly pollutants from the flue gas, the power plant emissions can approach zero.

Using Carbon Capture For On-site Supply of Beverage CO2 Since carbon dioxide is a volatile product it can only be transported over relatively short distances. The cost associated with the transport of carbon dioxide is often a significant part of the delivered cost to the end-user. Being able to produce high purity carbon dioxide on-site, therefore, can offer significant cost reductions.

An example of an industry where onsite production of carbon dioxide offers great benefits is the carbonated beverage industry. As in other energy intensive industries, bottling plants often establish their own utility supply systems so as to avoid the hassles from power cuts and other supply constraints.

In many bottling plants around the world, these utility systems are not integrated. A typical beverage producer that requires CO2 has a boiler for generating steam and hot water, a facility for power generation, and a distributor that delivers carbon dioxide.

FOOD & DRINK BUSINESS EUROPE, JUNE 2010

The CO2 produced offsite may be made by combustion processes that utilise fossil fuels or as a by-product of a process that uses fossil fuel combustion, such as an ammonia plant. These multiple utility systems each have associated costs that drive up the total cost of production and create a large carbon footprint. With capture system technology from Union Engineering, utilities can be integrated by means of simple gas engines.

A small on-site power plant run on natural gas, diesel, or heavy fuel oil engines can provide all of the above mentioned utilities from the same fuel input. Power is produced by a generator on the engine. Steam and hot water are generated by a heat recovery boiler system on the hot flue gas, and carbon dioxide is recovered from the same flue gas.

Combining the generation of these critical utilities into one common system significantly increases the total efficiency rate of the utility system and will significantly reduce the environmental footprint from the facility.

With on-site production, the beverage manufacturer has greater control of carbon dioxide supply and full control of a very critical bottling parameter, namely the quality of the final liquefied carbon dioxide.

Carbon Credits As these applications directly reduce the total emission of carbon dioxide to the environment, carbon capture projects often qualify for carbon credits under the United Nations clean development mechanism (CDM) trading scheme, boosting their economic advantage.

Headquartered in Fredericia, Denmark, Union Engineering is a leading supplier of CO2 technologies including CO2 recovery plants, CO2 generating plants, CO2 extraction plants, and consultancy services for CO2 technologies. The Company has subsidiaries in China, Brazil and the US and has delivered plants to more than 100 countries. For more information, visit www.union.dk. J 51

Tight Integration With Your ERP is Essential For Your Online Strategy t’s widely understood that an online stratImove egy can add valuable revenue streams and your supply chain closer to just-intime, but too many food and beverage organisations fail to integrate their online channel with their core ERP systems.

While many think this is just an added layer of technological nuisance, failure to integrate the two defeats the object of using the ERP system to manage purchase and sales order processing.

It is all too common within the food and beverage industry to have the simplest possible websites, online catalogues and credit card processing capabilities designed by the lowest bidder. But more often than not, the web developer lacks the skill and ability to integrate the website with the ERP. This results in all the data for the orders arriving through the online channel sitting separate to your core sales and stock information.

Failure By failing to integrate the web sales function with the remainder of the ERP system, there are two core business abilities that are instantly lost: 1. If your ERP system is your main source of business intelligence (which it arguably should be), then the data is immediately reduced in value as the entire online channel is not accounted for and you instantly lose the benefits of real-time stock information and sales ordering – a particular problem if yours

is a high volume business.

2. The online function loses all the usual advantages enjoyed by other channels.

This includes the customer service element of delivery tracking information being available to customers as the despatch function of the ERP is not connected to the web sales.

Full Overall Visibility In short, tight integration between the online channel and the other business functions, via the ERP, is absolutely crucial to provide full overall visibility of sales and stock activities. Without this holistic vision of stock levels and the popularity of individual items, the online and offline sales may as well be two different companies.

Furthermore it is not just the online sales function which needs integration with your ERP system, it is just as important to have a fully integrated online purchasing process.

How do you contact your suppliers to order more raw materials or ingredients?

Do you call them up and request a new delivery? And how often are you then told that it will take a day or two, or even more, to arrive at your premises?

While you may believe that you have a good working relationship with your suppliers, there is often substantially more that can be done. By giving your suppliers advance notice of when new deliveries may be needed, in what quantity and by what deadline, relationships are improved as sup-

FOOD & DRINK BUSINESS EUROPE, JUNE 2010

pliers are not caught out by last-minute requests and run the risk of failing to fulfil, and your productivity can grow as your supply chain moves closer to just-in-time.

Supply Chain Management By integrating an online portal with your ERP and granting your suppliers secure access to their own portions of it, you can flag your imminent supply chain needs, pre-empt time-consuming invoice enquiries and actually drive down supplier costs.

For example, you post on the portal that you need a delivery of your key ingredient in 48 hours. Your authorised suppliers then log on and submit their quotes and timeframes blind to what other suppliers are quoting, giving you the opportunity to choose the cheapest or most efficient deal.

Should you produce goods with multiple ingredients, this also allows you the most efficient way of managing the appropriate suppliers, which may number into the hundreds.

The portal, through its secure nature, also allows your suppliers to be shown where their invoices are in the payment process, negating the need for them to call in and query individual fees, and can also include a two-way instant messaging ability, avoiding the time-lag associated with email-based communications.

Food and beverage companies can only be as good as their own supply chain and few can afford to take shortcuts in their supply management. By implementing a method for two-way communication with your suppliers, you can create efficiencies within your own operations that will improve your ability to fulfil your own orders.

By integrating your supplier portal and your customer website directly with your ERP system, you will be able to streamline your processes, resulting in outstanding customer service and a competitive advantage. J 53

Preactor International Unveils Next Generation APS Solution reactor International, the leading specialist planning and schedP uling software company, has launched Preactor 11, the latest version of its award winning APS solution. Building on the combined experience of over 17 years tried and trusted development, Preactor 11 raises the standard even further for this proven area of planning and scheduling technology.

At the heart of Preactor 11 are a new User Interface and a range of functional enhancements which together offer an increased ease of use and a broader, deeper range of benefits. The new User Interface offers a whole new look and feel that allows the user to navigate more freely, intuitively and quickly between different areas of the system. Users familiar with the latest front office software will immediately feel at home with the way Preactor 11 allows multiple ways of quickly accessing, interrogating and editing data.

material plots which show the availability of materials over the schedule horizon.

As each order is selected in the Material Flow Diagram the corresponding set of materials plots are shown, one from each material consumed or produced by the selected order. The materials plots are also interactive allowing the planner to select a data point and see the corresponding order in the material flow diagram.

The Materials Explorer also simplifies the task of finding and navigating to items of interest. For example, a material search facility allows orders to be found by the material consumed or produced while lists of orders with material shortages and unused production provide a good starting point for troubleshooting material issues.

Presenting Data When it comes to presenting data, Preactor 11 offers the next generation of reporting with reports that can either be made ‘local’ or ‘server’ – the latter allowing them to be viewed remotely via an Internet browser even without Preactor running. Preactor 11 also includes an increased number of schedule analysis reports that let users at all levels quickly and easily generate genuine Business Delivering Competitive Advantage Intelligence (BI) at a tactical and strategic “Our continued growth in 2009 and Mike Novels, chief executive of Preactor. level. This is increasingly important for now in 2010 has shown APS to be a industries in highly dependent Supply solution that manufacturers consistently Chains where Capable to Promise (CTP) dates and accuracy of On turn to in order to deliver competitive advantage, even in the midst Time and In Full (OTIF) delivery information is critical. of a recession. Preactor 11 takes all the proven success of earlier versions used by over 3,000 companies in 67 countries and moves it to Materials Explorer the next level,” says Mike Novels, chief executive Preactor. “From Preactor 11 also introduces the Materials Explorer, a powerful tool small to medium sized companies right up to global corporations that provides an interactive, material-centric view of the production with multiple locations, Preactor 11 brings even greater functionalschedule. The Material Flow Diagram presents a graphical view of ity and flexibility combined with an unparalleled ease of use. This an order showing the materials involved in its manufacture as well is also shown by the growing number of strategic partnerships we as any related orders that are supplying or consuming materials. As are making with leading global software brands which will make the generated diagram is interactive, the planner can navigate Preactor available as a seamless integration with other solutions, quickly and easily through materials links from order to order to most notably MES and ERP systems.” J follow material flow through the produc“Preactor 11 takes all the tion process and deal “From small to medium sized companies right with any issues that proven success of earlier arise such as shortup to global corporations with multiple versions used by over 3,000 ages, changing priorlocations, Preactor 11 brings even greater ity of orders to overcompanies in 67 countries come delivery probfunctionality and flexibility combined with an and moves it to the next lems. unparalleled ease of use.”

This is complelevel.” mented by a set of 54

FOOD & DRINK BUSINESS EUROPE, JUNE 2010

Dutch Food Group Selects Lawson for Food & Beverage awson Software’s channel L partner Alfa-Beta Solutions has signed a contract for the implementation of Lawson for Food & Beverage with Agrico Cooperatie. Agrico will replace its legacy software with the industry-specific Lawson solution for the food and beverage industry and use it for the major areas finance, supply chain, enterprise performance management, manufacturing and customer sales & services.

The Lawson solution will help Agrico manage its supply chain and help drive business efficiency, which can ultimately help support the company’s market position.

Agrico, based in Emmeloord in the Netherlands, is a farming co-operative of 950 specialist potato growers who grow, breed, collect, process and sell seed potatoes, ware potatoes and organically grown potatoes throughout the world. Agrico sells several organic potato varieties (Agria, Ditta, Toluca and Sante) under the brand name Bioselect.

The company is committed to producing high quality products geared to the customers’ specific preferences and demands around the world. Agrico growers have upto-date cold store facilities and grading stations throughout their working area, and their produce complies with the most recent food safety standards.

The evaluation project has been driven

by Lawson partner Alfa-Beta Solutions.

tise which they have shown during the workshops.

Lawson and Alfa-Beta Solutions really understand the business processes and requirements of our specific Alfa-Beta Solutions has been a business partner of Lawson since 2001 and a fullsuite Lawson M3 channel partner, concentrating primarily on the food and beverage market. Based in Arnhem, the Netherlands, the company employs 16 industry experts and consultants with deep knowledge in management sciences and extensive experience in implementing ERP and business intelligence solution, Industry Specific Content “Lawson for Food & Beverage combines industry-specific content with built-in business tools based on Lawson’s experience and knowledge of the food and beverage industry. This made Lawson a great cultural and functional fit for our business,” says Norbert van der Leegte, project manager for Agrico. “We needed a flexible solution that can grow right along with our expanding business. Lawson and Alfa-Beta Solutions will support us to get greater visibility into customer orders, which helps us provide improved customer service and makes our day-to-day business easier.”

He continues: “We have been impressed during the evaluation project by the 100 percent commitment of Lawson’s partner Alfa-Beta Solutions and the industry exper-

industry.”

Efficient Solutions “We focus on providing the most valuable and efficient solutions to our customers,” comments Frank Resink, managing partner at Alfa-Beta Solutions. “Alfa-Beta Solutions food and beverage industry domain expertise in combination with solutions from Lawson will help us better meet the needs of our customers in this space and enhance customer experiences.”

Lawson Software is a global provider of enterprise software, services and support to customers primarily in three sectors: services, trade and manufacturing/distribution. Lawson’s solutions include Enterprise Performance Management, Human Capital Management, Supply Chain Management, Enterprise Resource Planning, Customer Relationship Management, Manufacturing Resource Planning, Enterprise Asset Management and industry-tailored applications.

Lawson solutions are designed to assist customers in simplifying their businesses or organisations by helping them streamline processes, reduce costs and enhance business or operational performance. For further information visit www.lawson.com. J

Agrico, based in Emmeloord in the Netherlands, is a farming co-operative of

Lawson for Food & Beverage combines industry-specific content with

950 specialist potato growers who grow, breed, collect, process and sell seed

built-in business tools based on Lawson’s experience and knowledge of

potatoes, ware potatoes and organically grown potatoes throughout the world.

the food and beverage industry.

FOOD & DRINK BUSINESS EUROPE, JUNE 2010

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TINE Chooses Anhydro nhydro has won an order for delivery of a process plant to A TINE, the largest dairy group in Norway. The order is the largest in the history of Anhydro with a total value in excess of Eur26m.

TINE will receive process equipment from Anhydro for the evaporation and drying of new products derived from whey produced during the cheese making process. A low-value by-product that was previously used for animal feed, the whey will now be refined into high-value whey protein concentrate (WPC) and permeate. Both of these products are used as food ingredients, for example in infant formula.

The total order embraces equipment for two new cheese plants, which are currently being built at Jæren near Stavanger, and at Verdal north of Trondhjem.

“After close scrutiny of offers from a number of suppliers, our choice fell on Anhydro with its existing impressive track record in our business sector,” says Finn Bjorgo and Kjertil Thu, Managing Directors respectively at TINE Midt-Norge and TINE Dairy Sør.

The new production plants will be completed in 2011 and 2012 respectively.

“Obviously, we are very happy about the agreement with TINE, which is the largest single order we have ever received,” says Anhydro director Soren S Rasmussen. ”The global economic crisis meant that we faced a difficult market for a period, but recently we

have seen more and more signs of renewed will to invest at the companies with whom we have a dialogue. This renews my confidence in the coming year and, not least, I am looking forward to a long and successful partnership with TINE and other customers in the dairy industry.”

Over recent months Anhydro has signed a DKr50m contract with Meggle in Germany and an even larger order from Chemtex in Venezuela. J

Cargill’s DB82 Cocoa Powder Provides a Breakthrough in Dark Taste argill’s Cocoa & Chocolate business has made a breakthrough in C dark cocoa powder taste with its innovative DB82 10-12% Gerkens cocoa powder. Until now dark powders provided the much valued intense colour for a range of applications, but with such intensity of colour there can be an off taste, sometimes associated with bitterness. However, Cargill’s specialised application centre in Baupte, France, has made a breakthrough that has produced a unique dark powder with a round, pleasant and smooth chocolaty flavour.

Piet van Amelrooij, director, worldwide powder sales, for Cargill’s Cocoa and Chocolate business, explains: “Cocoa powder producers have long sought the ultimate combination – a powder with warm intense dark colour, but with a rich smooth chocolaty taste. With DB82 we have achieved exactly that – and now we have a unique product to offer to the market for use in improving recipes in existing

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products and to develop new products.”

Cocoa powder is used in coatings and spreads, bakery and dairy applications, with Cargill offering the widest range of powders in the industry. DB82 is produced at Cargill’s Gerkens cocoa plant near Abidjan, Cote d’Ivoire.

It has a relatively high pH, but tests across a range of applications have shown that this does not have a negative effect on taste, stability or processing parameters.

“Innovation can mean creating something new, or finding creative solutions to transform existing products – and DB82 falls into both categories”, says Piet van Amelrooij. “In Cargill’s cocoa and chocolate business innovation is a vital part of our partnership with customers – and there are more innovations to be announced in the coming months.”

As one of the world’s largest food ingredient suppliers, with over 1,300 researchers, Cargill combines extensive food expertise with a deep knowledge of cocoa and chocolate to create innovations aimed at bringing new business to its customers.

“The feedback from our customers has been that DB82 produces great flavour from so dark a powder, without compromising on taste.

Commenting on DB82, one of our customers said ‘I was not expecting such good flavour from so dark a powder – where’s the bitterness? What’s the trick?’ There is no trick, just our innovation and expertise combined to produce a unique product. No other company but Cargill has the capability to do this,” concludes Piet van Amelrooij. J

FOOD & DRINK BUSINESS EUROPE, JUNE 2010

I ROBOTICS & AUTOMATION

This enables the various components to be assessed on a ‘virtual’ scale without creating any disruption to the company's current manufacturing operations.

“By evaluating the business before any physical changes are made, companies can save thousands of pounds. Flexible automated solutions have been designed to help businesses be better prepared for the challenges that lie ahead and it is important to explore all available options to ensure that

the most efficient end solution is chosen.

CenFRA can also help food and drink manufacturers develop bespoke systems and solutions where no suitable commercial option exists.”

Rounding off his keynote speech, Mr Taylor talked about CenFRA's commitment to being the beacon organisation for automation activities in the UK food and beverage industry, a sector lagging behind its global competitors in the use of robotics. J

CenFRA Gives World Leaders Food For Thought at Chicago ABB Robots Help Honeytop Conference Speciality Foods to Improve urope’s leading centre of excellence for E providing automation and robotic Productivity knowledge to the food and beverage manufacturing sector, CenFRA, took centre stage at the 4th annual Food Technology, Innovation & Safety Forum in Chicago.

Speaking at the two day event to some of the world’s most renowned food companies Michael Taylor, the chairman of the Yorkshire Forward funded organisation, discussed the significant impact automation and robotics can have in improving overall factory efficiencies, in particular within new product development, production, food safety and handling.

Leading representatives from companies including Cadbury, Kellogg, McDonalds and Starbucks heard Mr Taylor spell out the advantages of engaging with centres of excellence like CenFRA and to take advantage of the cost-effective automotive and robotic solutions available to help them to remain competitive.

Delegates were also treated to a demonstration of unique simulation capabilities that CenFRA has to offer both in terms of factory operations and bespoke machinery design.

He explained: “Simulation technologies enable businesses to successfully evaluate and quantify, at very little cost and in a very short period of time, the benefits and implications of integrating different automation techniques to their manufacturing process.

Michael Taylor, chairman of CenFRA.

BB’s robotic technology has helped transform the production of pancakes at the A Honeytop Speciality Food plant, by the installation of two lines each utilising four FlexPicker IRB 360 robots for the picking and stacking of pancakes. The solution,

FlexPicker IRB 360 robot.

designed, built and installed by ABB’s channel partner – RG Luma, ensures the company can meet its own stringent requirements for the hygienic handling of food, as well as introducing reduced labour costs and improved health and safety levels at the 120,000 sq ft manufacturing plant in Dunstable, Bedfordshire.

Honeytop Speciality Foods, the UK’s leading privately owned Naan bread producer and Europe’s leading volume manufacturer of speciality flatbreads, produces more than 100,000 artisanal breads an hour. J

Advanced Robot Palletising System From CSi Si has delivered a high-quality palletisC ing system at one of Holland’s largest co-packing companies in Etten-Leur. This customer manufactures a range of cleaning materials, and has the facilities to produce special one-off promotional ranges. The diverse product range requires a highly flexible production process, with the ability to handle a wide range of packaging formats and sizes.

The new building incorporates 23 production cells positioned around a central storage area. Each production cell has an out-feed conveyor which transports finished products towards CSi’s centralised palletising system consisting of 5 robot palletisers with each having 3 pick points.

This is an extremely advanced robot palletising system, being fully automated with very high capacities and the highest levels of reliability guaranteed. For further information contact CSi UK on Tel +44 (0)1244 341298 or visit www.csiuk.co.uk. J FOOD & DRINK BUSINESS EUROPE, JUNE 2010

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I PACKAGING SOLUTIONS

Packaging All Wrapped Up at easyFairs Packaging Ireland - 16 & 17 June 2010 – RDS, Dublin uropean packaging show specialist E easyFairs brings its highly successful event format to Ireland for the second time in June. The show offers an exciting opportunity for visitors to discover innovative new packaging solutions.

EasyFairs, which organises around 20 packaging shows across Europe, launched easyFairs Packaging Ireland last year, and the show is now going to be a permanent annual event. Almost 1,000 brand managers, product developers and packaging technologists, from companies such as Coca Cola Ireland, Kerry Foods, Diageo and Microsoft attended last year’s event, and this year’s visitor figures are expected to be even higher.

Irish Product Debuts EasyFairs Packaging Ireland, which takes place on June 16th and 17th at Dublin’s RDS will be playing host to the very latest developments in packaging with many products being displayed and demonstrated for the very first time in Ireland.

One company using the show as an Irish launch pad for its latest product is Italian manufacturer PFM Packaging Machinery.

The company will be giving a first Irish demonstration of its new integrated multihead weigher and bagging machine.

Designed for the smaller company the new ZC1S operates at speeds of up to 80 bags a minute.

suppliers of pharmaceutical and healthcare packaging will be hosting their very own packaging surgery at the show. Chesapeake will be prescribing visitors to their stand its latest innovations together with an unmatched range of packaging solutions.

Award winning self adhesive label manufacturer, Multi Labels, will give an Irish first demonstration of its Gallus EM280 combination press which has all the latest technology allowing Multi Labels to offer 10 colours with hot foil in any station and up to 3 screens in any station.

Gundlach Display + Box, a member of the Gundlach Group and one of Germany’s leading manufacturers of temporary point of sale displays, will be presenting its new patented display product, the ‘MegaWall,’ exclusively for Packaging Ireland.

Packaging specialists Croxans has added to its range thanks to the launch of its 330ml Skittle bottle, which it will be introducing for the first time to visitors at the show.

Other Exhibitor Highlights Following on from its success at the UK easyFairs Packaging Shows, which took place in February of this year at Birmingham’s NEC, Charpak will showcase its recently launched hinged lid pack aimed at the indulgent snacking market.

Chesapeake, one of the world’s leading

FOOD & DRINK BUSINESS EUROPE, JUNE 2010

LearnShops and Repak Consultations Jenny Thornton, FMCG brand specialist, is one of the highlights of a compelling seminar line-up taking place at the event.

After senior roles with Yoplait, Tayto and Musgrave, former tennis pro Jenny Thornton has developed a new marketing process which she claims can bring new life to FMCG brands, and really help improve company profits.

During the two days show Repak will be offering free one-to-one consultations with its technologists who will be advising retailers, brand managers and so forth on innovative ways to cut down on their packaging.

This is Repak’s second time supporting the show after a successful partnership last year.

Show Extras Along with the 120 companies expected to exhibit, and the free-to-attend learnShops and Repak consultations, easyFairs Packaging Ireland will also deliver plenty of inspiration and learning through the Lion’s Lair competition. At Lions’ Lair - a Dragons’ Den style contest – visitors will get the chance to see Europe’s leading companies putting their innovations to a panel of packaging experts.

“At easyFairs Packaging Ireland 2010 visitors will get to see first hand what packaging technology can offer them, what options are available to them, and the very latest in packaging innovations. With so many new product launches, show features, and a fantastic line-up of big name exhibitors and seminar speakers, we’re expecting a fantastic event. For anyone looking to improve their packaging solutions this is the place to be,” says easyFairs UK managing director, Matt Benyon.

Register free at www.easyfairs.com/packagingireland. For more information phone 020 86224417.

Some of the exhibitors at easyFairs Packaging Ireland 2010 are previewed on the following pages. J 59

PACKAGING IRELAND 2010 EXHIBITION We are Irish Manufacturers of bulk packaging solutions for use in the food and drink industry. Established in 1947 we have a strong history serving Irelands top exporters with UN approved and recyclable packaging and containers.

Visit us at Stand A13 at EasyFairs Packaging Ireland in the RDS on 16th & 17th June 2010.

We manufacture fibre drums for the transportation and storage of dry goods, Single-Trip Fibre IBCs for transportation and storage of liquids, as well as cardboard cores for use in the food industry.

We also supply all-plastic Hoppers and Silos, a range of plastic containers, liner bags and security seals.

M Pack Ltd is the sole Irish distributor of Markem-Imaje coders, spares, consumables and software providing coding solutions for pharmaceutical, food, electronics and manufacturing industries countrywide.

Visit our stand F7 – F9 to see: • SmartDate® - the world’s finest thermal transfer online coder, unrivalled for performance and reliability.

• Cimjet® - affordable online print and apply labelling for improved supply chain management.

• 9000 Series – best-in-class continuous inkjet -

technology for maximum line uptime.

• 6000 Series - small character solvent-free ink jet coding for high speed applications.

• 5000 Series - solvent-free touch dry ink jet coding of secondary generic cases to retail EAN28/ITF14 barcode standards.

• SmartLase™ - reliable, compact laser coding for low operating costs.

• Systems Integration – practical out-of-box software solutions to improve traceability and eliminate coding mistakes, incorrect packaging and other human errors.

More information: Orla Mulkerrins Tel: 01 2890077 Email: omulkerrins@mpack.ie

cover the services Repak provides, such as the ‘Prevent and Save’ programme, operated by Repak’s Packaging Technologists. This will be supported by relevant and recent case studies

by Repak members demonstrating how, with Repak’s assistance, they have reduced packaging, reduced costs and added to the bottom line.

Irish recycling body Repak has once again thrown their support behind the easyFairs® PACKAGING Ireland exhibition, which will take place on 16th and 17th June in the RDS. Repak will host a series of ‘Packaging Clinics’ at the exhibition. The ‘Repak Packaging Clinics’ will be held at the Repak stand over the two days and will enable visitors to have their packaging evaluated by Repak Packaging Technologists. The Repak Packaging Technologists provide a free service to Repak members offering advice on how to cut down on the amount of packaging placed on the market. Issues such as functionality, design and recyclability are taken into consideration.

Repak will also host seminars in the learnShop. The seminars will

Visit www.rolanddg.ie for further details.

Repak’s Colm Munnelly, said: “We’re encouraging visitors to bring small examples of their packaging along to the show; we’ll give feedback on submitted designs, offer advice on potential savings, and suggest redesign ideas that could reduce wastage and improve their carbon footprint. We’ll explore ways in which delegates can optimise their packaging and suggest quick design wins to help them save money and increase competitive advantage”.

Roland DG’s innovative white ink proofing solution, the VersaUV LEC-330, integrates your current industry packaging/labelling production design workflow with Roland print and cut technology to design and produce fully functional packaging prototypes on a wide range of media such as metallic and synthetic papers, foils, BOPP, PE and PET film, leather and fabrics.

The VersaUV LEC-330 creates one-off prints quickly and cheaply, with no need for complicated set up, plate creation or wet proofing. Its unique UV curing technology creates special effects such as Braille, embossing, gloss, and its integrated perforated cut functionality enables accurate packaging mock-ups.

specialty products they will also be exhibiting their key brands: AdaptUltra: A range of specialty products used for a wide variety of promotional applications for example: microsphere adhesives, drypeel coupons, bottle collarettes CD and greeting card labelling.

Smith & McLaurin at Packaging Ireland 2010 - Stand B17 Smith and McLaurin Ltd, a global supplier of self-adhesive label, ticket and tag materials will be exhibiting at Packaging Ireland 2010 on 16th & 17th June. In addition to their wide range of standard, niche and 60

AdaptDigi: An exciting range of digitally printable materials which offer customers time and cost saving benefits, as in-house testing on the HP Indigo machines (WS4050/4500/6000), have shown that their Gloss-Digi, Satin-Digi and DigiWhite PP face-stocks do not require additional processing to make them print receptive. The range also includes some Textured papers and a Silver Metallised paper, which are excellent for the

labelling of wines, whiskeys and other luxury products (Note: both the textured and the metallised papers require a digital prime-coat).

AdaptEco: A range of environmentally responsible materials including the largest range of FSC certified products available from a self adhesive laminating company; and PLA, TreeFree®, recycled and cellulose based materials.

Visit them at Stand B17 for all your labelling needs. www.adaptdigi.co.uk

FOOD & DRINK BUSINESS EUROPE, JUNE 2010

PACKAGING IRELAND 2010 EXHIBITION

Creating uniqueness with every product Today Greiner Packaging figures in the most important of package processing businesses. With many locations throughout Europe, we grant our customers the shortest production and lead times.

Griener Packaging will help to make your packaging a successful product, using our “unique packaging proposition”.

every brand. Greiner Packaging helps to create the uniqueness of every product to ensure it can compete with others internationally. We try to ensure that our packaging is a high quality marketing tool inviting both food and non-food based companies to enjoy Greiner’s unique packaging proposition.

Vision Greiner Packaging International strives to make packaging a trademark. Innovative solutions ensure the company is Europe’s first call for individual solutions.

Greiner Packaging Killyman Road, Dungannon, Co. Tyrone, N. Ireland BT71 6LN Tel: +44 (0)28 8772 3131 Web: www.greiner-gpl.com

UPP UPP products distinguish themselves by their appearance, giving a unique image to each and

At this year's easyFairs PACKAGING IRELAND trade show, NPP, specialists in flexible packaging, will be showcasing their NHY - NPP High Yield - product range on stand B6. These value engineered flexible packaging materials are produced using the latest extrusion techniques and polymer blends.

tonne than standard materials. Reel changes are reduced allowing for longer production runs, while oven temperatures can be reduced allowing producers to save on energy costs, and transport costs are also reduced with a decrease in the number of truck deliveries and pallet movements.

NHY has been proven to reduce packaging costs by reducing the user's required volumes of packaging materials by as much as 20%.

NHY is 100% recyclable and, because of its reduced thickness, companies can benefit from reduced waste disposal costs.

There are many advantages of using NHY. NHY produces more packs per

sealability and improved product freshness and storage. As well as being intuitive and fun to open and close, Plix-Pack offers other advantages over standard push to close zip systems, such as easy to open "grip strips", only light pressure is needed and precise alignment is not required. It is durable and simple to close with numerous openings and closings and is also reliably contaminant resistant.

UNICELT, part of the UNI Packaging Group, will be introducing Plix-Pack, a recently launched closure system that revolutionises the design of flexible packaging.

Plix-Pack is an innovative flow wrap pack using "hook to hook" re-sealable technology, sealed to flexible laminate film. Plix-Pack is at the forefront of packaging design and compliments efforts made by brand owners to meet consumer demand for ease of opening,

Goliath Packaging Systems Ltd supplies, installs & after-sales services a comprehensive range of end-of-line packaging, materials handling and washing equipment to the Irish food sector, via its trading division, Goliath Food.

The Goliath Food product range consists of the following distinct items; • Shrink Wrapping, Flow Wrapping & Tray Sealing

Contact Carl Bateman on +353 (0) 21 461476 www.unicelt.com

Stand A10

• Case Erecting, Case Packing & Bag-inBox • Liquid Filling Systems • Case Sealing (Tape & Glue) • Case & Load Conveying • Pallet Inverting (Fixed, Mobile & Automatic In-line) • Pallet Exchange & Freezer Spacer Removal • Lifting (Scissors & Vacuum) • Materials Handling Systems • Palletising (Gantry, Articulated Arm & Layer) • Stretch Wrapping

PRODUCTS & ESSENTIAL SERVICES PROVIDED Irish Papers is a leading supplier of Aluminium Foil Containers, Pizza Boxes, Paper Carrier Bags and Food Packaging Products in Europe with a reputation for innovation, quality and hygiene. Our comprehensive range of profiles, cover all sectors of the food industry and are at the cutting edge of packaging development. We are constantly introducing new products to meet both market needs and individual customer specific requirements.

FURTHER DETAILS Operating from our sites in Dublin we service

• Strapping Systems (Case & Pallet) • AGV Transport • Washing Systems (Pallet, Box, Dolav, •

Eurobin, Crate, Tray, Drum, Glove, Apron, Bottle & IBC etc) Packaging Materials (Film, Strapping, Tape etc)

Goliath Packaging Systems, Nenagh, Co. Tipperary 067-37893 / info@goliath.ie / www.goliath.ie

markets worldwide by offering a vast range of product choice and a wealth of experience in the packaging sector. Product and market development are the cornerstones of our growth. In order to provide our customers with the widest choice of packaging products we have trading links with

other manufacturers Worldwide.

These global alliances, allied to our own sales expertise, ensure that our customers are able to access the finest products and market knowledge to SEE US AT STAND NO. B4 meet the needs of today’s dynamic food sectors.

FOOD & DRINK BUSINESS EUROPE, JUNE 2010

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Brand Matters – DS Smith Packaging and the importance of matching colours ost people would agree that protectM ing a brand’s identity is an absolutely critical aspect of marketing, particularly across frontiers.

Presentation of the brand in store is increasingly reliant on retail ready packaging made from attractively printed corrugated board. Put those two thoughts together and you have the reason why DS Smith Packaging has invested heavily in digital colour matching.

People often interpret the same colour very differently, so it is essential to take out any guesswork in judging those allimportant brand colours. Ensuring consistent colour is critical, especially when the retail ready packs are designed to match the primary packaging. So a colour matching tool was developed which DS Smith Packaging calls ‘ImageRight’, part of the ‘PackRight’ suite of tools that is already helping many customers save money and boost sales.

Digital Technology Using spectrophotometers, devices that measure colour digitally rather than by eye, DS Smith Packaging printers make sure that the colour is right and remains right as each order is printed. This removes uncertainty and gives customers the results they expect. At DS Smith Packaging around tens of thousands of digital colour matching scans are taken every month.

This investment in new technology, backed by intensive training, means DS

At DS Smith Packaging tens of thousands of digital colour matching scans are carried out every month.

ImageRight ensures integrity of brand colours.

Gold Awards The recent EFTA print competition provided more evidence of ImageRight’s invaluable contribution to managing colour quality, when DS Smith Packaging won three gold awards, four silvers and one bronze.

The skills and technologies developed

by DS Smith Packaging are beginning to make a big impact on the aesthetic appearance of packaging in retail outlets. Flexographic pre and post print has advanced so far in recent years that brand owners can take full advantage of the extra stand-out that top quality printing provides in store.

Smith Packaging is achieving consistent, repeatable colour, within agreed tolerances, regardless of where a job is printed. Not only does this make it easier to use DS Smith Packaging’s factory network to make and print high volume orders at different sites, it also transforms the ability of customers to manage and protect their brands’ identity, even though the corrugated packaging is being made in different places.

Consistent Colours DS Smith Packaging’s work for Cadbury is a good example of this. When Cadbury automated three out of four packaging lines at their Yorkshire based plant, they needed to fill the packaging differently, whilst making sure that when the packs were opened, and on display in store, they all looked the same.

The challenge was to produce two different structural designs and three product variants, each with five colour print, using colour to differentiate flavour - all to be manufactured in two DS Smith Packaging locations, Clay Cross and Belper.

The sites set their designers to work on the structure, but when it came to colour they relied on ImageRight, using the digital colour matching technology now widely available on printing machines within DS Smith Packaging.

What is more, all parties were able to link seamlessly with the centrally managed digital database to ensure complete colour consistency.

FOOD & DRINK BUSINESS EUROPE, JUNE 2010

Award-winning colours on packs and sacks.

However, it still remains true that there are many companies in the UK that are not making full use of the latest thinking on colour matching. A walk down the aisle of any supermarket reveals the potential for much better colour coordination not just between primary and secondary packaging, but sometimes even between the corrugated packs themselves, especially if they are produced at different sites.

Brand managers are becoming increasingly aware of the need for high quality and consistent printing on retail ready packaging to make their brands realise their full sales potential – DS Smith Packaging is working hard to make sure they are not disappointed. J 63

I SHELF READY PACKAGING

Coffee Promotion From Kraft Foods Uses Pago Labelling Machine raft Foods’ coffee manufacturing plant K and global coffee Centre of Excellence, based in Banbury is responsible for producing 11 billion cups a year for major UK brands such as Kenco, Maxwell House and Mellow Birds. Pago produced the PAGO media labels, 40 mm diameter, applied to the caps of Kraft’s Kenco coffee jars to provide customers with the opportunity to purchase a Kenco Eco Refill pack. The labels are 3 pages, offset printed in 5 colours, allowing 6 sides for information on the Eco Refill pack, an offer to win one of ten eco-holidays or a free coffee container accessed via the Kenco website.

To apply the labels at over 300 products per minute a floor standing 2 x PAGOmat 6/2A 170 labelling unit was purchased.

Kenco Eco Refill’s success looks set to grow from strength to strength in 2010.

The pack’s launch has outstripped expectations. It is currently delivering 27% of the Kenco Rich & Smooth freeze-dried coffee volume and has helped increase market share by 1%. Kenco Eco-Refill was named as the Top Instant Coffee Launch for its great campaign around the packs that have 97% less packaging weight than the brand’s 100g and 200g jars.

This inspired business idea and the sustainable appeal of reducing waste – has put the Kenco Eco Refill pack centre-stage for much of the year’s brand programme.

“With the Kenco Eco Refill pack we will sell 1,500 tonnes less packaging – that’s equivalent to 80 bin lorries,” says Toby

Smart, Kenco brand manager.

For further information contact Pago on Tel +44 (0)1206 755206 or visit www.pago.com. J

Bottle-Matic I & II From Pinewood Label Systems he Bottle-Matic Label Applicators from Pinewood Label Systems have been T developed to apply 1 or 2 labels (front and back) to a wide range of cylindrical containers including bottles, jars, cans, tubs and tubes and are easily adapted to work with tapered, ridged and odd shaped containers. They are easy to set up and operate making them an economical solution to relatively short runs and bespoke labelling. The Bottle-Matic I is designed to apply one label to containers from a small patch to fully wrap around. The Bottle-Matic II is an advanced model with provision to apply one or two labels from the same roll, with a built in incremental dial to accurately space front and back labels on the same container. For further information contact Pinewood Label Systems on Tel +44 (0)1932 243724 or visit www.pinewoodlabels.com. J Roberts Mart’s Smart Printing Solution Roberts Mart, one of the UK’s leading printers of paper and plastic flexible packaging, is helping food and drink companies reduce their carbon footprint after investing in a new multi-million pound state-ofthe-art printing press. The family-run business recently purchased an eight-colour Fischer & Krecke 14S press, which features 'smartGPS', a graphic positioning system with automatic registration which allows for quicker turnaround times than conventional presses, leading to less material 64

waste. Other advantages for food industry customers include accuracy of calibration for greater consistency between print runs, better product presentation, and horizontal and vertical form fill and seal applications for both loose and prepacked products. For further information contact Robert

Mart on Tel +44 (0)113 202 6500 or visit www.robertsmart.co.uk. J Measom Freer Expands Oval Bottle Range Measom Freer has added a brand new 75ml bottle size to its popular Griffin bottle range. This attractive oval bottle with neck size 18mm (R4) stands out from the crowd with its arching shoulders and tall slim styling. These prestige bottles are available from stock now in 25, 50, 75, 100, 150 and 250ml sizes and are manufactured in house from clear PVC with other materials and colours to order. With a wide variety of caps, spray & gel pumps

FOOD & DRINK BUSINESS EUROPE, JUNE 2010

and closures also manufactured in house, Measom Freer also offers a screen printing service in one or several colours for all the company’s bottles and packaging products. For further information contact.

Measom Freer on Tel +44 (0)116 2881588, Fax +44 (0)116 2813000, sales@measomfreer.co.uk or online at www.measomfreer.co.uk. J