food and drink business europe by Colin Murphy

April/May 2011

Still top of the world after 125 years

Food & Drink Business Website:

www.foodanddrinkbusiness.com

C o n t e n t s

- 46 B AKERY

- 3 C OVER S TORY

Kingsmill powers Allied Bakeries.

Constant renewal is Coca-Cola’s winning formula.

P AGE 11

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

Coca-Cola is 125 years old.

- 48 N UTRACEUTICALS & D IETARY S UPPLEMENTS

Ranjit Singh Boparan, ce, Boparan Holdings.

Vitafoods Europe and Finished Products Expo make their return.

R EGULARS Bottling & Packaging . . . . . . . 9, 15, 34-36

- 11 C ONVENIENCE F OODS

Process & Manufacturing 14, 27-31, 40-43

Boparan creates £2 billion business with Northern Foods acquisition.

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Lean Manufacturing . . . . . . . . . . . . . . . . . . . . . . . . . . . 40-43

Muhtar Kent, chairman & ce, Coca-Cola.

Logistics & Distribution . . . . . . . . . . 16-19

PAGE 21

Roger White, ce, AG Barr.

Quality & Hygiene . . . . . . . . . . . . . . . . . 32 Colour Measurement.

- 21 S OFT D RINKS Another sparkling performance by AG Barr.

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Ken Powell, chairman & ce. General Mills.

- 25 D AIRY Healthy prospects for whey ingredients.

Engineering and project management outsourcing.

PAGE 25

Energy & Environment. . . . . . . . . . . . . . 45

Peder Tuborgh, ce, Arla Foods.

Managing Director: Colin Murphy Editor: Mike Rohan Sales Director: Ronan McGlade Advertising: Susan Doyle, Stuart Atkinson. Senior Sales Executive: Paul Lees Production Manager: Susan Doyle

Food & Drink Business Europe is published by Premier Publishing Limited, 51 Parkwest Enterprise Centre, Nangor Road, Dublin 12. Tel: + 353 1 612 0880 Fax: + 353 1 612 0881 E-Mail: info@prempub.com Website: www.foodanddrinkbusiness.com London Office: Premier Publishing Limited, CTS, 34 Leadenhall Street, London, EC3A 1AT Tel: 0171 247 3238 Fax: 0171 247 3239

DMK and Arla Foods to invest €44 million in whey processing partnership.

- 39 P ROJECT M ANAGEMENT

Information Technology. . . . . . . . . . . . . 45

Premier Publishing Limited can accept no responsibility for the accuracy of contributors’ articles or statements appearing in this magazine. Any views or opinions expressed are not necessarily those of Premier Publishing and its Directors. No responsibility for loss or distress occasioned to any person acting or refraining from acting as a result of the material in this publication can be accepted by the authors, contributors, editor and publisher. A reader should access separate advice when acting on specific editorial in this publication!

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FOOD & DRINK BUSINESS EUROPE, APRIL/MAY 2011

COVER STORY

Constant Renewal is CocaCola’s Winning Formula The Coca-Cola Company is celebrating the 125th anniversary of its iconic, flagship brand this year.

oca-Cola originated as a syrup, devised bling an international network of bottlers – by pharmacist Dr John Pemberton, for the Coca-Cola system. The Coca-Cola mixing with carbonated water and sold Company manufactures and sells concenfor five cents a glass in Jacob’s trates, beverage bases and syrups to bottling Pharmacy in Atlanta in 1886. The drink was operations, owns the brands and controls connamed Coca Cola by company accountant sumer brand marketing initiatives. The botFrank Robinson, who thought the two Cs tling partners are responsible for manufacturwould look well in advertising and penned the ing, packaging, merchandising and distributdistinctive Spencerian script logo. ing the final branded beverages to customers The Coca-Cola Company has since evolved and vending partners, who then sell to confrom a single product business to a global sumers. empire marketing more than 500 brands in The Coca-Cola Company currently supmore than 200 countries today. From selling plies more than 300 bottling partners worldjust nine drinks a day in 1886, The Cocawide, ranging from large multinational busiCola Company now supplies 1.7 billion a day Muhtar Kent, chairman and chief executive of The nesses, such as Coca-Cola Hellenic and Cocato consumers and has become the world’s Coca-Cola Company, showing off the group’s Cola Enterprises, to small, family-owned largest beverage company. It is the global fourteen $1 billion brands. operations. number one in sales of sparkling beverages, juices and juice drinks, as well as number two in sports drinks and Globalisation ranks third in sales of bottled water. The US soft drinks group opened its first bottling plants in Europe Having achieved solid worldwide volume growth of 5%, The at Paris and Bordeaux in 1919. In the same year, The Coca-Cola Coca-Cola Company achieved a 3% increase in operating income Company was purchased by a group of investors led by Ernest to $8.4 billion for 2010 on net revenue ahead by 13% to $35.1 bil- Woodruff for $25 million. Ernest Woodruff’s son, Robert, was lion. elected as president of The Coca?Cola Company in 1923 and proceeded to lead the business for more than six decades, guiding its $70 Billion Brand international expansion. Global branding consultancy Interbrand calculated Coca-Cola to During the 1920s bottling operations commenced in many be worth $70.45 billion in 2010, making it the world’s most valu- countries including Belgium, Bermuda, China, Colombia, able brand, ahead of IBM, Microsoft and Google. Indeed, Coca- Germany, Haiti, Italy, Mexico, the Netherlands and Spain. In Cola has now held this accolade within Interbrand’s annual rank- 1926 the Coca-Cola Foreign Department was formed to supply ing of the 100 best global brands for eleven consecutive years. concentrate to overseas bottlers, and four years later the Coca-Cola According to Interbrand, the brand’s success and longevity is due Export Corporation was created to market Coca-Cola outside the to its continual ability “to adapt to whatever challenges the market- US. place throws its way.” During the Second World War, Coca-Cola was made available Armed with Coca- to US troops and 64 portable bottling plants were sent to Asia, Cola and its other bil- Europe and North Africa, where more than 5 billion bottles of lion dollar brands, Coca-Cola were distributed. By 1959 Coca?Cola was being distribThe Coca-Cola Com- uted by a network of 1,700 bottlers, operating in more than 100 pany has come to epit- countries. omise the rise of globCoca-Cola re-entered the massive Chinese market in 1978 after alisation and the an absence of almost 30 years. The first Coca-Cola bottling plant growth of mass con- in China was opened sumerism in the mod- in 1981 and by 2010 ern world. Indeed, it more than 40 bottling has pioneered some of plants were operating the marketing and in the country. Other advertising techniques significant milestones involved. in the company’s international expanThe Coca-Cola sion include the comSystem mencement of botThe global reach of tling operations in The Coca-Cola Com- Russia in 1985 and pany has been ach- the move into East Coca-Cola is currently marketed in more than 200 A Coca-Cola advert from 1945. ieved through assem- Germany in 1990 fol- countries. FOOD & DRINK BUSINESS EUROPE, APRIL/MAY 2011

lowing the fall of the Berlin Wall.

acquired in 2007 to provide access to the vitaminwater and smartwater categories.

Increasing Control The Coca-Cola Company’s performance is closely linked to that of its bottling partners. Indeed, the company takes a shareholding in many of its Coca-Cola polar bear character. franchise bottlers across the globe. To ensure a closer alignment of these interests, The Coca-Cola Company merged all its company-owned bottlers with several independent bottler groups supplying the North American market in 1986 to create CocaCola Enterprises. An independent, publicly listed company, Coca-Cola Enterprises sells approximately 80% of The Coca-Cola Company’s bottle and can volume in North America. To improve co-ordination and performance in its international markets, The Coca-Cola Company established the Bottling Investment Group in 2006 to manages the operations of company-owned bottling plants around the world. Last year, to assert greater control over its North American business, The Coca-Cola Company acquired all the bottling operations of CocaCola Enterprises in this region. This left Coca-Cola Enterprises focused on Europe, where it generates annual sales of $7.3 billion, operates 18 manufacturing facilities and employs 13,000 people.

$1 Billion Brands Earlier this year Minute Maid Pulpy became The Coca-Cola Company's 14th $1 billion brand. Developed and launched in China in 2005, Minute Maid Pulpy reached the $1 billion milestone in only five years. The Coca-Cola Company has also been highly innovative in developing new packaging and dispense formats. For instance, it recently unveiled Coca-Cola Freestyle, a fountain dispenser that allows consumers to select from more than 100 beverages, and introduced two-litre contour packaging. To enhance its sustainability credentials, The CocaCola Company has pioneered PlantBottle PET packaging, a range of plastic bottles made partially from plant-based materials that are completely recyclable.

Broadening the Brand Portfolio Of course, The Coca-Cola Company now represents more than just one brand. During the 1960s, after seventy years of successfully building the Coca-Cola brand, the company started to add new flavours to its drinks portfolio. Fanta Orange, which had been introduced to Italy in 1955, was launched in the US in 1960. Sprite, a lemon-lime beverage, was introduced in 1961, followed by TaB, the first diet drink produced by the company, in 1963. Earlier, in 1960, The Coca-Cola Company had acquired The Minute Maid Company to diversify its business into the juice sector. The company entered the sports drinks arena with Powerade in 1992.

The evolution of Coca-Cola’s distinctive contour bottle.

Diet Coke, the first extension of the Coca-Cola brand, was launched in 1982 and within two years had become the top low-calorie drink in the world. Other variations of the brand were subsequently added Vanilla Coke in 2002, Diet Coke with Lime in 2004 and Coca-Cola Zero, a zero-calorie cola, in 2005. Not all of Coca-Cola’s brand modifications have been successful. The biggest failure was the move to change the formula for Coca-Cola, for the first time in 99 years, in 1985 with the launch of “New Coke’. Following a consumer backlash the new tasting drink was quickly abandoned and The Coca-Cola Company reverted to using the original formula, as ‘Coca-Cola Classic’ was re-instated, turning a marketing disaster into a triumph. The product range has also been expanded through acquisition and joint venture. In 2001, The Coca-Cola Company and Nestle joined forces to create Beverage Partners Worldwide, to market ready-to-serve coffee and tea beverages. More recently, Energy Brands (glaceau) was 4

Distinctive Contour Bottle The contour bottle, which has become such a distinctive feature of the Coca-Cola brand, was designed and patented in 1915. After being modified to work with the bottling equipment of the time, it began mass production in 1916. The contour bottle was the only packaging used by The Coca-Cola Company for 40 years until the king-size package was introduced in 1955. Today, it is still the most recognised bottle in the world, and the shape has been retained for use for packaging from the new aluminum can to the 2-litre family size bottle. Advertising and Sponsorship Clever global brand building through advertising and sponsorship are a hallmark of The Coca-Cola Company. The first newspaper advert for Coca-Cola appeared in Atlanta in 1886. The brand has since come to be associated with some of the most successful and famous marketing and advertising campaigns ever created, such as the Christmas print adverts produced by illustrator Haddon Sundblom between 1931 and 1964, the “I’d Like to Buy the World a Coke” television ad created in 1971 and the Coca-Cola polar bears characters from the popular ‘Northern Lights’ commercial, which was first screened in A Christmas print advert from 1931. 1993. Coca-Cola has been advertising on television for over 60 years and sponsored its first radio programme in 1927. Coca-Cola is one of the few brands with the worldwide presence and ability to sponsor the two biggest sporting events in the world – the Olympic Games and the FIFA World Cup. The company’s association with the Oly-mpic Games stretches back over 80 years and it first started sponsoring FIFA in 1976. In fact, Coca-Cola’s connection with sport started in 1907 with a series of adverts featuring notable baseball players of the time. The Coca-Cola Company has also mastered the use of social media, attracting about 11 million Facebook fans and about 96,000 Twitter followers. Constant Renewal “The fact that we are a thriving business after nearly 125 years is a testament to our youth, not our age. There is something special indeed about an enterprise that is in a state of constant renewal and dynamic growth,” says says Muhtar Kent, chairman and chief executive of The Coca-Cola Company. “And while we recognise that challenges remain in our worldwide marketplace, we are confident that we are advancing our global momentum to deliver long-term sustainable growth and value for our shareowners.” J

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Diamond Foods Bags Pringles in $2.4 Billion Deal

Bonduelle and Ardo Establish Spanish Joint Venture to Supply Findus

Provimi Pet Food Business Sold to Private Equity For €188 Million

US-based snacks group Diamond Foods is acquiring the Pringles business from Procter & Gamble in a deal worth $2.35b. Pringles is the world’s largest potato crisp brand with sales in over 140 countries and manufacturing operations in the US, Europe and Asia. The brand has been built over 45 years with a combination of proprietary products, unique package design and significant advertising investment. Pringles will join Diamond Foods’ portfolio of brands, which includes Diamond of California and Emerald nuts, Pop Secret microwave popcorn and Kettle potato chips, creating a premium snack focused company with total revenues of approximately $2.4b. Diamond acquired the Kettle Foods businesses in both the US and the UK from private equity group Lion Capital for $615m in cash last year. The addition of Pringles will more than triple the size of Diamond’s snack business and leverage its sales and distribution infrastructure through a more than doubling of snack sales in the US and UK, which are Pringles’ two largest markets. The deal will also allow Diamond to gain access into key growth markets around the world, including Asia, Latin America and Central Europe. International sales will account for approximately 49% of the enlarged Diamond’s revenues on a pro forma basis.

The Ardo and Bonduelle groups are to set up a joint venture to supply frozen vegetables to the Spanish and Portuguese markets. Ardo and Bonduelle have also signed an exclusive supply agreement with Findus, which is returning to the Spanish and Portuguese frozen foods markets. The agreement between Bonduelle and Ardo provides for a joint venture to be set up in Spain involving the Benimodo production sites of Bonduelle and Ardo’s packing and storage site at Marcilla. The new entity will be owned equally by the two groups, and will have a turnover of approximately Eur100m. At the same time, Bonduelle will transfer its Frudesa and Salto brands to Findus and Findus will take back the direct responsibility for sales and marketing of its Findus brand in Spain and Portugal, which it had granted under licence to the Ardo group in 2005. This signals the return of Findus in Spain and Portugal. Based at Ardooie in Belgium, Ardo has a turnover of Eur600m, annual production of 600,000 tonnes and is one of Europe’s leading suppliers of frozen vegetables. Bonduelle group is a world leader in prepared vegetables with turnover of Eur1.7b, with 27% of its business coming from frozen vegetables, for which it is the leader in Canada and the number two in Europe.

The Provimi Group, a world leader in animal nutrition, is selling its pet food business, Provimi Pet Food, to private equity firm Advent International for an enterprise value of Eur188m. Headquartered in Budapest, PPF is a European leader in pet food, with total sales of Eur236m in 2010 and around 1000 employees. PPF serves customers in 27 countries from eight production locations throughout Europe. PPF has a strong position as preferred pet food supplier for large retail food chains across Europe. Provimi has managed its pet food business separately from its core animal nutrition business as the two have different profiles and dynamics. Following this sale, Provimi will be able to concentrate on the extensive growth opportunities available in the animal nutrition industry. The transaction is expected to complete within the next two months following regulatory and works council processes Advent International has been investing in the retail and consumer products sectors since 1984 and has been investing across Central Europe with local funds and offices since 1994. Recent investments include Devin, Bulgaria’s leading mineral water bottler and distributor of soft drinks, and Uno, Turkey’s leading producer of branded, packaged bread and bakery products.

General Mills Close to Yoplait Acquisition US-based food group General Mills has entered into exclusive negotiations with PAI Partners and Sodiaal to purchase a 50% stake in Yoplait, the interna6

& &

Ken Powell, chairman and chief executive of General Mills.

tional yoghurt business. Private equity company PAI Partners put its 50% stake in Yoplait up for sale last year. Under the proposed transaction, General Mills will partner with French dairy company Sodiaal, which owns the other 50% of Yoplait, in expanding and growing the Yoplait brand and businesses in France, Europe and around the world. General Mills and Sodiaal have been successful business partners for decades. General Mills has licensed the Yoplait brand since 1977, and is Yoplait’s largest licensee. It has grown its Yoplait business to the clear leadership position in yoghurts in the US, one of the world’s largest fresh dairy markets. General Mills has been marketing food products in France for 50 years. Leading General Mills products, including Haagen-Dazs super-premium ice creams and Geant Vert vegetables, are also produced in France.

Lactalis Takes Controlling Stake in Parmalat French privately owned dairy group Lactalis, which is the world’s largest cheese manufacturer, has increased its shareholding in Parmalat, the leading dairy group in Italy, to 29% following a Eur744m acquisition of a 15.3% stake. Lactalis is now the largest shareholder in Parmalat but has stopped short of taking a 30% stake, which would oblige it to make a full takeover offer. The move has raised strong opposition from the Italian Government, which regards Parmalat as a strategic national asset.

FOOD & DRINK BUSINESS EUROPE, APRIL/MAY 2011

Quorn Foods Created Following £205m Acquisition Following completion of its £205m acquisition of the meatfree business of Premier Foods, Exponent Private Equity has announced the creation of a new international food company, Quorn Foods. Headquartered in Stokesley, North Yorkshire, England, Quorn Foods makes and markets Quorn, the UK’s leading meat alternative brand, and Cauldron, the UK’s number one tofu brand.

M M E E R R G G E E R R S S The new company aims to create the world’s leading meatalternative business. Quorn is already sold in ten countries worldwide, including a rapidly growing business in the US. In 2010 Quorn Foods had a turnover of £128.8m and an operating profit of £16.1m. The company has around 600 employees on three UK manufacturing sites - Stokesley in North Yorkshire, Belasis on Teesside and Methwold in Norfolk.

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

PepsiCo and Strauss Group to Establish Joint Venture PepsiCo and Strauss Group, Israel’s second-largest food and beverage company, are to form a joint venture partnership that will produce and sell fresh dips and spreads in key markets outside of North America. The two companies have operated a successful North American joint venture since 2007 under the Sabra brand. In North America, Sabra is the number one brand of hummus and the leader in the chilled dips and spreads category. PepsiCo and Strauss will leverage their existing infrastructures and invest in manufacturing plants, technologies and employees to set up local operations on a country or regional level. Each partner will own 50% of the new joint venture business. Financial terms were not disclosed.

functional nutrition. PepsiCo has set a goal of tripling its annual revenues from nutritious and functional foods from approximately $10b in 2010 to $30b by 2020.

Astarta and Danone Form Joint Venture in Ukraine

Indra Nooyi, chairman and chief executive of PepsiCo.

The new joint venture follows recent efforts by both PepsiCo and Strauss to promote health and wellness throughout their product portfolios. In October 2010, PepsiCo formed its Global Nutrition Group to accelerate product development in the areas of fruits and vegetables, whole grains, dairy and

Astarta, the biggest producer of sugar and industrial milk in Ukraine, has entered a joint venture for the production and processing of milk with Danone, the world leader in dairy products, waters and baby nutrition. Operating a plant at Kherson along with eight regional offices, Danone is one of the largest producers of dairy products in Ukraine. Danone’s international experience will enable Astarta to take its dairy business to a new level of efficiency as it plans to double it milk production during the next five years.

MEA See u s T Ston UP Exh at War eleigh ibition, P w 21 icks ark, Stan /22 Junhire, d No e, . 31 5

FOOD & DRINK BUSINESS EUROPE, APRIL/MAY 2011

I CASE STUDIES

Healthy Savings in Costs and Carbon S Smith Packaging Livingston prides D itself on identifying and supplying its customers with packaging that has exactly the right specification for the right application. When reviewing best practice with customer Kellogg's, the Livingston team recognised that R-Flute®, DS Smith Packaging's major breakthrough in corrugated fluting, would offer some tasty benefits to the leading Nutri-Grain range. R-Flute® provides a better, flatter print surface than other more commonly used flutes, which means the packaging has great colour coverage with solid block colours. The previous competitor pack, produced in C-flute was reported to have looked ‘washed out’. The new pack now stands out

on the shelf far more, as well as being easy to find back of store, helping to drive on shelf availability. The closeness of the flute tips means R-Flute® also helps perforated packs form squarely and open reliably, another big factor when competing for sales. The benefits do not stop there. The change to R-Flute®, which has a smaller calliper than the previous C-flute case, has reduced Kellogg's pallet movements by 911. This equates to a massive 24 full loads less every year. Overall that is a saving of 22 tonnes of CO2 pa. The development also has removed the need for a rippatape opening system in the pack. It just goes to show how using the right application, R-Flute®

can help drive sales, save cost and reduce carbon. J

Fresh Innovation From DS Smith Packaging S Smith Packaging stepped coolly up to the D challenge when Vitacress, one of Europe’s leading growers of watercress, asked for a packaging design that would remove cost from their supply chain and help maintain the quality of the product in distribution. The result was a design that allows ice to melt cold water over the watercress to keep it fresh. A drain tray containing crushed ice sits on the top rim of the pack allowing melting water to drain over the watercress, keeping it cool for up to 48 hours. A moisture resistant film is laid on the inside of

the pack and silver metallised thermal PE liner on the outside. The recyclable corrugated pack replaces expanded polystyrene traditionally used with this type of application. The new pack offers a stunning fresh look, and has stimulated a significant increase in sales and reduced inbound shipments tenfold. In recognition of its highly innovative qualities the pack has recently won a UK Packaging award, a Starpack award and, most coveted of all, a Worldstar award. It is also a finalist in the President’s Shortlist and the Sustainability category of Worldstar. J

World-class Design For Surf Seeds S Smith Packaging Launceston D has won a coveted Worldstar design award for a very distinctive

divider. Both elements of the design mean that the product is held securely within the pack when open on the shelf. The unique ShelfMaster design from DS Smith Packaging means the top can be removed in a few seconds to form a display tray, and is die-cut rather than perforated to leave a clean front edge. This provides greater visibility of the primary packs for shoppers. This award-winning pack performs well in the supply chain, ensures product stability and looks great too! It has eliminated the need for shrinkwrap and is 100% recyclable. J

Surf Seeds retail ready pack, which was manufactured for Enviropak Supplies. Following a full review of the previous pack design, a low-sided tray with two fittings and shrink-wrap, the DS Smith Packaging team recognised the need for something visually distinctive on shelf. The new onepiece, two colour printed pack is made in a double E-flute corrugated board with an ‘exposed fluted’ internal liner that incorporates an autocrash base and an integral central FOOD & DRINK BUSINESS EUROPE, APRIL/MAY 2011

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Boparan Creates £2 Billion Business With Northern Foods Acquisition Food business entrepreneur Ranjit Singh Boparan, chief executive of Boparan Holdings, which is one of Europe’s largest chicken processors, is nearing completion of his audacious £342 million acquisition of Northern Foods. aving now effectively gained the retail, food service and food manucontrol of Northern Foods, the facturing sectors, is still the core busioffer has been declared unconness, Boparan has been developing ditional in all respects. The deal rapidly internationally. In 2009, the will create a £2 billion turnover powerbusiness generated sales of £27.9 milhouse within the British convenience lion in continental Europe and more foods market. The acquisition is one of than trebled its sales in North America the most significant in the UK food to £36.6 million. industry since Premier Foods’ £1.2 billion purchase of RHM in early 2007. Acquisition Spree Indeed, the combined Boparan/ Since filing its 2009 annual accounts, Northern Foods business will now rival Boparan has significantly expanded its Premier Foods as the UK’s largest Ranjit Singh Boparan, chief executive of Boparan Holdings. international poultry business and domestic food processor. diversified into seafood production. “The combined group will be one of small-scale retail frozen poultry cutting During 2010, Boparan acquired Britain’s major food suppliers with a operation, Boparan Holdings has developed Storteboom Group, a Eur400 million turnover of more than £2 billion. This will into a major international chicken business turnover Netherlands-based poultry procreate significant opportunities which will through a combination of organic growth cessing business; Five Star Fish, a leading benefit customers, consumers and employ- and acquisitions. Incorporating 2 Sisters £65 million turnover UK supplier of ees,” says Ranjit Singh Boparan: “We look Food Group, Boparan Holdings remains a added-value, prepared fish to the food serforward to working with the experienced private company owned by Ranjit Singh vice sector; and famous seafood restaurant Northern Foods team and combining our Boparan and his wife Baljinder. Now aged chain - Harry Ramsden’s. skills in product innovation and customer 44, Ranjit Singh Boparan left school when The acquisition of Storteboom is characpartnerships to create a larger business with 16 years old and commenced work in a terised by Ranjit Singh Boparan as a enhanced prospects.” butcher’s shop. His personal fortune is esti- “strategic next step within our long-term mated at about £100 million. business plan which is focused on growth Business Development In its last published annual results for the through long term partnerships. From humble beginnings in 1993 as a period ended August 1st 2009, Boparan Storteboom Group and 2 Sisters’ existing Holdings increased operating profit Dutch business were complementary, proon continuing operations by 7.6% viding an established platform to support to £33.9 million on turnover up 17% to £739.1 million. Profit before tax rose from £27 million to £30 million. The financial position of the group was also strengthened during the period with net assets increasing from £45.3 million to £51.6 million. Although predominantly a private label manufacturer, the group also produces a number of branded products, including As it prepares to integrate Northern Foods, Boparan is currently operating from thirteen manufacturing sites in Buxted chicken. The combined Boparan/Northern Foods business will rival While producing chicken the UK and eight in Europe, and employing approximately Premier Foods as the UK’s largest domestic food processor. products for UK customers in 6,000 people.

FOOD & DRINK BUSINESS EUROPE, APRIL/MAY 2011

expansion in Central Europe. The integrated business - 2 Sisters Storteboom – is now a division of 2 Sisters Food Group, and operates three slaughterhouses (two in the Netherlands and one in Poland), three processing plants for the production and processing of filleted products and two further processing plants. The overall slaughtering capacity of 2 Sisters Storteboom is around 3 million chickens a week. 2 Sisters Storteboom has a workforce of around 1,500 employees and turnover amounts to over Eur500 million per year. Having previously bought the Northern Foods’ new chilled division incorporates Fishworks seafood restaurant business sandwiches, salads and ready meals operations. out of administration and turned it around, the Harry Ramsden’s deal Northern Foods is not in this category. increased Boparan’s interests in the UK With annual sales of £977.0 million and food service market. operating profit pre-restructuring items of £54.6 million in its 2009/10 financial year, New Departure Northern Foods is a well invested business, Boparan is well known for its poultry pro- although its fortunes have been flagging in cessing activities through 2 Sisters but the recent time and the group is undergoing recent acquisition of Five Star Fish seems to restructuring. indicate a new departure. So what was the Headquartered in Leeds, England, thinking behind these acquisitions? “The Northern Foods currently operates from 24 acquisition of Five Star Fish was seen as a facilities (18 of which are manufacturing complementary move given our recent pur- facilities) in the UK and Ireland, directly chases of Harry Ramsden’s and Fishworks. employing over 9,000 people. Although We plan to apply our learning from the historically split into three divisions – poultry sector to this popular protein,” chilled, frozen and bakery – producing a replies Ranjit Singh Boparan. range of retailer own label and branded products, Northern Foods is being reUK Growth organised into two businesses – chilled and Boparan’s core UK poultry business is also branded. continuing to grow in line with industry Restructuring charges and a loss in its trends, which is about 2-3% each year. frozen foods operation, which offset “We pin our success largely on putting the improvements in chilled foods and bakery, customer first. This is achieved by under- resulted in Northern Foods reporting an standing their needs, the changing market operating loss of £9.5 million for the six place, communicating these requirements months to October 2nd 2010 on turnover to our people and developing a culture of of £453.0 million, down from £466.9 milcontinuous improvement which challenges lion in the corresponding period of the pretradition and drives performance forward,” vious year. The chilled division improved he remarks. profits from £7.2 million to £11.8 million As part of its ongoing expansion strategy, and bakery profits rose from £8.2 million 2 Sisters Food Group recently announced a to £10.3 million. However, the problemat£30 million investment in a state-ofthe-art food factory in Thetford, due to open in Spring 2011, which will serve as a springboard for growth for the company’s prepared foods division over the next decade. “It’s only through continual investment in our facilities and our people that allows us to adapt to change and offer better for less,” he stresses. As it prepares to integrate Northern Foods, Boparan is currently operating from thirteen manufacturing sites in the United Kingdom and eight in Europe, and employing approximately 6,000 people.

ic frozen business recorded a loss of £4.6 million, against a profit of £5.1 million in the first half of 2009/10. New Structure The new chilled division incorporates Northern Foods’ sandwiches, salads and ready meals operations along with its new supply business for British Airways. The branded division broadly combines Northern Foods’ frozen and bakery activities and includes Fox’s biscuits, Goodfella’s pizzas, Donegal Catch fish, Green Isle vegetables, McDougalls and Holland’s Pies, and the Matthew Walker Puddings. Northern Foods’ customer base encompasses all of the UK’s major food retailers and a number of discount retailers. Northern Foods has been broadening its customer base, to reduce reliance on the multiple retail sector and during 2010 began selling sandwiches to Costa Coffee and supplying British Airways’ short haul flights from Heathrow in conjunction with DHL, under a 10 year agreement. Linking up with Boparan should increase opportunities for Northern Foods to develop more business into the food service channel. Like Boparan, Northern Foods’ strategy has focused on developing long-term relationships with its customers and on providing high levels of service and maximizing efficiency. Northern Foods has also invested in developing its resources in science, technology and innovation to improve its product offering and to maximise efficiency.

Industry Consolidation The acquisition of Northern Foods will allow Ranjit Singh Boparan to add scale to his food business empire and broaden its product range and scope, while improving overall efficiency and cost effectiveness. The UK food industry is continuing to consolidate and by participating in this process, Boparan and Northern Foods will strengthen their competitive positions. Now that the offer has been declared unconditional in all respects, Boparan can undertake a detailed business and operational review of Northern Foods in order to define its future strategic direction and identify cost savings. Areas of potential savings include the elimination of duplicated functions, business reorganisations and rationalisation of the combined group’s property portfolio. Of course, achieving cost savings could well involve office closures (or relocations) and restructuring of some parts of the combined group, which could result in some job losses. “Our approach is simple,” says Northern Foods’ branded division broadly combines frozen and Ranjit Singh Boparan. “It’s about proNorthern Foods Acquisition While Boparan’s recent acquisitions bakery activities and includes Fox’s biscuits and Goodfella’s ducing the best tasting product at the were of businesses in some distress, pizzas. lowest cost, with fantastic service.” J FOOD & DRINK BUSINESS EUROPE, APRIL/MAY 2011

Pharmafoods – The Irish Food Equipment and Consultancy Company harmafoods was established in 1995 to P supply food equipment to an increasing but more demanding industry. “Our philosophy is to supply equipment that gives our customers a distinct manufacturing advantage in the most cost effective manner. Our aim is to surpass our customers requirements by introducing where possible new equipment and product ideas,” says Dermot Brett, head of Pharmafoods. “This enables our customers to increase production with greater flexibility delivering cost effective solutions that give a distinct market advantage.” Pharmafoods initially started supplying Limitech Equipment to the Irish market. This Danish company provides excellent high quality and extremely efficient mixers/cookers/blenders. Limitech’s advantage allows you to mix/blend/cook/cool, homogenise, vacuum/decorate all in one vessel producing a better product in less time, as well as reduced labour cost and drastically reduced product losses.

poultry, ready meals, fruit, salads, desserts, pizzas, soups etc. To complement its product portfolio, in 2005 Pharmafoods started a partnership with Bilwinco, a Danish manufacturer of multihead weighing systems celebrating 55 years in the business and a wealth of knowledge in weighing difficult products such as fish, fresh red meat, spaghetti and fresh chicken. Bilwinco’s multiheads simplicity in design with extreme durability in harsh environments give outstanding reliability.

Features include direct loading to weighing pans that are durable and interchangeable even when the machine is running. They are completely waterproof to allow high pressure cleaning. Pharmafoods also offers customers trials at their site where within 15 minutes of arrival Pharmafoods can test the customer’s product on a full scale machine, which has proved to be a valuable asset.

Pharmafoods has now successfully supplied equipment for the manufacture of sauces, gravy, mayonnaise, jams, dressings, cream cheese, desserts, ointments, pastes, pharmaceutical cream, mashed potato, pet foods etc. Acquiring G Mondini, the world’s number one traysealing manufacturer, in 1999 helped Pharmafoods to secure a strong foothold in the country’s leading food manufacturer. In the last 10 years, Pharmafoods has been number one in Ireland supplying individual machines to complete production lines in red meat, 14

Since 2010 Pharmafoods now represents ULMA Packaging, a world leader in the manufacture of Thermaformer, Horizontal Flow Wrap, Vertical Form Fill & Seal and complete automation. ULMA is a truly global brand with subsidiaries worldwide and a wealth of knowledge with over fifty years in business.

In 2002 ULMA established a state-ofthe-art research facility - Ulma Packaging Technology Centre (UPTC) – dedicated to researching, promoting, developing, improving, innovating packaging technology. Pharmafoods has found this facility invaluable in bringing the latest innovation in packaging and automation to its customers. HM Systems of Denmark is the latest addition to the family, allowing Pharmafoods to now offer end of the line solutions. HM Systems manufactures high speed labelling and printing equipment, which also comprises solutions for barcode verification, software, weighing, checking and inspection.

“Pharmafoods is the only company in Ireland able to offer such a variety of packaging solutions in a complementary or alternative manner, providing a singular and customized offering, with innovative applications adapted to the clients needs,” says Dermot Brett. For further information contact Pharmafoods Ltd, Ivowen Retail Park, Kilsheelan, Co Tipperary, Ireland. Tel +353 61 33060, Fax:+353 61 33070, Email info@pharmafoods.net. J

FOOD & DRINK BUSINESS EUROPE, APRIL/MAY 2011

I FILLIING & SEALING

Proseal Invests to Meet Customer Demand eat sealing specialist Proseal has recently invested £1.5 million H in a new manufacturing facility, significantly increasing its production capacity to meet continued customer demand and enabling it to capitalise on growth opportunities in the UK and Europe as well as Australia and the USA. Proseal is a leading supplier of heat sealing equipment to a worldwide customer base, operating across a wide range of sectors in the food industry from ready meals and sandwiches to fresh meat, poultry, fish, bakery products and fruit. The company is renowned for the quality, reliability, speed and technical innovation of its equipment, which is backed up by high levels of customer service. This technical innovation can be seen in the wide range of tray sealers that Proseal offers to meet the varying and ever-changing needs of the food market: from the T2, a hand operated tray sealing machine with a manual feed system, through to the GT3, Proseal’s fastest ever tray sealer, which offers a top speed in excess of 180 trays per minute. Proseal’s advanced range of tray sealers also includes the GTR, a fully portable semi automatic two station rotary table machine with

The GT3 is Proseal’s fastest ever tray sealer, which offers a top speed in excess of 180 trays per minute.

Proseal has recently invested £1.5 million in a new manufacturing facility, significantly increasing its production capacity to meet continued customer demand.

sealing speeds of up to 30 packs per minute. The GT0 is a high quality compact fully automatic tray sealer, while the GT1 and GT2 are both high speed machines, capable of up to 75 and 90+ packs per minute respectively. Other innovations include the AP60 high throughput modular linear tray sealing system, with the flexibility to be incorporated into a fully automated turnkey production line, and the SP30 and SP60 sandwich packing systems for the de-nesting, erecting and sealing of cardboard sandwich skillets. All Proseal’s heat sealing machines offer a range of options to meet the particular requirements of each application, including gas flushing for Modified Atmosphere Packing, ensuring both speed and flexibility on tray sealing lines. “This latest expansion is another significant development for Proseal, enabling us to keep pace with customer demands both in the UK and overseas,” comments Proseal director Rob Hargreaves. “Moreover, customer service underpins our entire company philosophy and this investment will enable us to maintain and enhance this strategy.” J

Depositors and Filling Machines From Riggs Autopack iggs Autopack is a UK market leader R with an excellent reputation in the design and manufacture of depositors and filling machines supplied to the food pro-

duction industry. With almost 40 years proven design and build experience, the company specialises in volumetric filling. Its Model 1000 range of depositors and filling machines provide damage free and highly accurate depositing of hot or cold liquid, semi-liquid and suspended solid products. Riggs Autopack’s depositing and filling equipment is machined in-house at its UK factory and provides increased production capacity for food manufacturers of varied type and size. Clients typically range from start-up companies and cottage industries through to multi-national and international factories. If you're seeking to improve your compa-

ny's food manufacturing process by investing in a semi or fully automatic depositor to accurately fill jars, bottles, pots, tubs, trays, buckets, pouches and bags, then Riggs Autopack could have the solution. For further information contact Riggs Autopack Ltd, Southfield Street, Nelson, Lancashire BB9 0LD, UK. Tel +44 (0)1282 440040, E-mail info@autopack.co.uk, Website www.autopack.co.uk. J

FOOD & DRINK BUSINESS EUROPE, APRIL/MAY 2011

Langdons Network Investment K-based controlled-temperature logisU tics specialist Langdons has announced a major investment in the Midlands this year. For nearly eight years the company’s base in the region has been a rented chill store in Redditch. Whilst adequate, the pallet throughput capacity at this site is very limited and so the company have been seeking alternative premises for some time. After failing to find any available suitable existing premises in the area, Langdons has purchased a disused factory in the Park Farm district of Redditch which has already been demolished and groundworks are now under way. A new building is now under construction which when complete in late July or August this year, will have storage capacity for 3500 pallets of frozen food and 1600 pallets of chilled foods. The site will have a large chilled marshalling area accessed by 13 dock-levelled doors. In total the investment at Redditch will be in excess of £8 million. As well as covering collections and deliveries throughout the Midlands region the new

Steelwork going up at Redditch.

site will become the central hub of the eight depot Langdons network. Articulated vehicles connect all these depots overnight, thereby providing a next day delivery service for palletised frozen and chilled foods through-

out almost all of the UK mainland. The company also offers services to and from Ireland and as part of the Nagel Group of Germany Langdons is able to connect with the EU–wide network operated by Nagel. J

Irish Retail and Wholesale Seminar Unlocks UK Export Opportunities he second in a series of successful seminars focusing on the UK T retail and wholesale market, aimed at Irish food producers and manufacturers looking to explore export opportunities, took place in Cork on Thursday 24th March. Continuing to gather momentum and interest, the event, organised by Oakland International, welcomed many Irish businesses and included a number of keynote speakers - Gordon Walker of Landmark Wholesale; Liam Gilbert from IGD; Mark Hancock from Kozy Shack; Rob Cross from The Dairy Trader; Peter Massey from May & Raeburn; Tadhg O’Donovan from Glenilen Farm; and Dean Attwell from Oakland International, summing up and then closing the Pictured (left to right): Rob Cross from The day’s proceedings. Dairy Trader; Mark Hancock from Kozy Event speakers Shack; Dean Attwell of Oakland International; detailed crucial eleIGD's Liam Gilbert; Gordon Walker of ments involved when Landmark Wholesale; Tadhg O'Donovan from dealing with UK Glenilen Farm; Paul Ziolek of Oakland retailers. Oakland International; and Peter Massey from May & International's manRaeburn. aging director, Dean 16

Attwell, said: “As an experienced multi temperature supply chain specialist, we are well placed to advise on the many complex factors involved when working with UK retailers and wholesalers.” Market globalisation and economic climate Pictured (left to right):- Steve Young, conditions continue to logistics director from Musgrave Retail focus industry's attenPartners Ireland with Oakland International tion on supply chain managing director, Dean Attwell. efficiencies. Godfrey Lydon from the Irish Exporters Association commented: “I thought the speakers were very informative and interesting and everything was very well organised.” Dean Attwell added: “We have a successful model which is proving extremely effective at explaining and then opening new export opportunities for Irish businesses, with our Cork event once again delivering just that.” Oakland's next ‘Breaking in to UK Retail’ event will be held in Belfast on Thursday 16th June 2011. Further details and information, and to register your attendance at the Belfast event, contact Oakland International direct. J

FOOD & DRINK BUSINESS EUROPE, APRIL/MAY 2011

Kuehne + Nagel to Acquire RH Freight n line with its growth strategy and the objective to significantly expand its IEuropean overland network, Kuehne + Nagel is acquiring UK-based RH Freight. Headquartered in Nottingham, RH Freight has been established for 40 years and is the market leader for groupage freight between continental Europe and the UK.

The company employs 630 staff across 17 locations in the UK and at two sites in Finland. Via its hubs in Nottingham and South East London, RH Freight handles 425,000 shipments per year and operates to 32 European destinations daily. Besides its core activities, RH Freight is also active in sea- and airfreight as well as contract logistics, with 30,000 sq m of handling space under management. Important Step “Due to its customer orientation, expertise and concentration on daily lines to European destinations, RH Freight fits ide-

ally Kuehne + Nagel’s strategy to expand its European overland network and to offer its customers high quality overland products,” explains Dirk Reich, executive vice president of Kuehne + Nagel International, responsible for Road & Rail Logistics. “In addition, this acquisition is an important step for further improving Kuehne + Nagel’s position as an integrated logistics provider in the UK.” With approximately 57,500 employees at 900 locations in over 100 countries, Kuehne + Nagel is one of the world's leading logistics companies. Its strong market position lies in the seafreight, airfreight, contract logistics and overland businesses, with a clear focus on providing IT-based lead logistics solutions.

“Over the last few years, we have considerably expanded our service offering and gained competitive advantage due to our strong European operations,” says Ian Baxter, managing director of the RH Group. “To be even more successful in the future, we need to offer customers a truly global one-stop solution. Combining strengths and international capabilities with Kuehne + Nagel will be of great advantage to our customers and generate a win-win situation for both companies and their employees.” The transaction is subject to the approval of relevant anti-trust authorities.

assigned its co-packing activities to the logistics provider. Since 2010, Kuehne + Nagel has been managing warehousing operations for Unilever’s home and personal care (HPC) product range in South Eastern Europe in a newly commissioned facility in Ploiesti. “Kuehne + Nagel has succeeded in a relatively short time to integrate its co-packing service offered to Unilever South Central Europe (USCE). Co-packing is strategically important because it enables us to customise our portfolio according to the specific requirements of our customers. Kuehne + Nagel achieves top quality standards and we are confident that this is just the beginning of a long and successful partnership,”comments Radu Ghiurca, supply chain project manager of USCE. The project not only encompasses manual repacking operations, but also involved a considerable investment in automation by Kuehne + Nagel in Romania. In Romania, Kuehne + Nagel operates four locations and employs more than 150 people. J

Co-packing For Unilever in Romania Meanwhile, Unilever Supply Chain Company (USCC), the European supply chain organisation of consumer goods major Unilever, has expanded its co-operation with Kuehne + Nagel in Romania and FOOD & DRINK BUSINESS EUROPE, APRIL/MAY 2011

Focus on Culina Logistics Ireland We spoke to Paul Oâ&#x20AC;&#x2122;Donnell, Operations Director at Culina Logistics Ireland, about the business and its plans for the future. Who are Culina Logistics Ireland? We are part of the Culina Group which is the UK & Irelandâ&#x20AC;&#x2122;s largest shared user logistics provider to the food and drink industry. Our aim is to be the leading provider of sustainable, shared user, multitemperature logistics services to the grocery sector in Ireland. We have invested in the people, equipment, technology and facilities needed to deliver a complete end-toend logistics service. What facilities do you have in Ireland? Our purpose-built, state-of-the-art chilled, ambient and temperature controlled distribution centre opened in 2010 at the Aerodrome Business Park, Rathcoole, County Dublin. It covers 160,000m2 (173,000ft2) and is ideally located for access to the national road network and Dublin Port to provide completely flexible logistics operations tailored to a customerâ&#x20AC;&#x2122;s specific requirements. This is one of nine strategically placed facilities in our UK and Ireland network to provide fully integrated coverage for customers in both countries. We are accredited to the ISO9001 and ISO14001 standards and by the BRC and Irish Medicines Board. Tell us about some of your customers? We work with the biggest and best-known food and drink brands to deliver products to their multiple and independent retail customers. We also work with the retailers to manage their own distribution operations. On average we handle over nine million cases every week and distribute more than 6000 different product lines. Our unique approach also allows us to offer the same high levels of service and attention to detail to the smaller, growing and specialist producers who have just a few pallets to deliver.

provide the best possible service. We developed our own warehouse management system to support our processes and this offers complete stock accuracy and traceability for all cases from goods receipt to final delivery. The system is linked to our order management system and, through SAP interfaces, allows seamless transfer of information with our customers. Our customers have total supply chain visibility through web-enabled applications and can check and track the status of their products and orders at any time.

What About Sustainability? Everything we do is designed for sustainable business. Our shared user operations make the best use of resources and equipment to promote efficiency and collaboration with reduced wastage. The Dublin warehouse is designed and built to the highest specification to comply with EU regulations on environmental performance. It is as energy efficient as possible and we use equipment that is designed to minimise energy consumption. Our transport fleet is Euro 5 compliant, the highest standard, and we use technology to manage order picking, load assembly and routing and scheduling to minimise vehicle movements and road miles. From a business perspective Culina Logistics Ireland is a joint venture between the successful SHS Group and Culina Group. As far as Culina Group goes, financial sustainability is provided by acceptable profit level and our major (private) shareholder/investor, TML-Invest, which is based in Luxembourg. We also have a long term investment plan which reinforces sustainability.

Is Ireland different? The market is fragmented but we see significant potential in Ireland by offering a shared user operation that delivers the best customer service and highest stock availability. The major multiples dominate but each has a different supply chain strategy. Many major brands are serving customers direct from the UK. The independent and convenience sector has complex needs that can increase costs. We believe our shared user approach allows us to deliver flexibility, efficiency and economies to all parts of the market. From Dublin we can provide an integrated solution for the Irish and UK supply chain with a local stock holding but with access through our network to suppliers in the UK and beyond. What other services do you offer? We offer value added and complementary capabilities under one roof so that our customers can achieve exceedingly high service levels from a single source. For example, we offer a complete range of contract packaging and rework facilities. Our partnership with SHS in Ireland allows us to offer a sales and marketing dimension to our contracts whenever a customer requires this type of support. J

Tell us more about your technology? We have always invested in technology to FOOD & DRINK BUSINESS EUROPE, APRIL/MAY 2011

I SOFT DRINKS

Another Sparkling Performance by AG Barr UK soft drinks manufacturer AG Barr has increased pre-tax profit, excluding exceptional items, by 13.3% to £31.6 million for the twelve months to January 29th 2011 and turnover by 10.4% to £222.4 million, achieving double-digit like-for-like sales growth for the second consecutive year. ounded by Robert Barr in Falkirk in 1875, AG Barr has developed into a national business with strong roots in Scotland and the north of England but with a growing consumer and customer base throughout the UK and further

afield. The company again outperformed the soft drinks market in Great Britain last year. According to Nielsen, the soft drinks take home channel increased by 7% in value and 3% in volume, driven largely by the carbonates sector, which grew by 10% in value and 3% in volume. Within carbonates, energy, cola and other flavoured drinks exhibited strong growth. The still drinks sector increased in value by 4% and in volume by 2%, with sports drinks fuelling much of the growth. While take home remained resilient, the on-premise channel was in decline. However, take home accounts for only a small percentage of AG Barr’s total business and its impact was consequently minimal. Growing Market Share “The soft drinks market has performed strongly in 2010/11 despite the continued difficult macro economic climate. We have increased our share of this growing market and have done so through sustainable long term brand and product investment rather than short term price driven activity,” says Roger White, chief executive of AG Barr. “Our portfolio as a whole has performed well and our core brands have responded to further investment.” AG Barr has a well supported and comprehensive range of soft drinks brands. Its biggest brand is Irn-Bru, Scotland’s largest soft drinks brand, which is also performing well throughout the whole UK. Other brands include Tizer, D'N'B, KA, Barr flavour range, Strathmore Spring Water, St Clements juice drinks, Simply juice drinks and Rubicon exotic juice drinks.

Roger White, chief executive of AG Barr.

AG Barr is also the franchise partner of Schweppes International in the UK, where it manufactures and sells Orangina under license, and it also has a 10 year partnership with Rockstar to sell and distribute the Rockstar energy drink brand in Ireland and the UK. Solid Progress AG Barr made solid progress in both its two key trading segments – carbonates and stills including water – during the year as the company increased focus on its core brands of Irn-Bru, Barr and Rubicon. Continuing efforts to offset cost pressures allowed the Scottish drinks producer to maintain margins. AG Barr’s stills sales rose well ahead of the market at 9.4%. Rubicon stills delivered 22.5% growth compensating for some weakness in the St Clement’s brand, which is currently being repositioned. Strathmore water grew by 5% in revenue terms and also improved margins. The group’s carbonates continued to perform strongly, with steady growth from Irn-Bru, Barr, Rubicon and KA. Rockstar also delivered 16% year-on-year sales growth in the carbonates sector. Irn-Bru grew by 4% in revenue terms, maintaining its consistent growth and reflecting AG Barr’s efforts to build a brand for the long-term. The Irn-Bru brand kept its leading position in the Scottish market, supported by advertising activity, sponsorship and value added promotions. The development of Irn-Bru outside its historical core Scottish market made great progress during the year. Sales of IrnBru in northern England grew by 10%. Indeed, AG Barr plans to maintain this regional growth approach and will continue to develop Irn-Bru in tandem with its other core brands, Barr and Rubicon in this region. The Barr range of traditional flavoured carbonates has also sustained its growth momentum, increasing sales by 22% and building on last year’s 33% increase in revenue. Growing Brand Awareness The Rubicon brand, which was acquired in August 2008, has now almost doubled in sales terms since the acquisition, due to AG

FOOD & DRINK BUSINESS EUROPE, APRIL/MAY 2011

of building on strong core geographical performance, such as IrnBru in Scotland and Rubicon in London. The growth and development of specific geographical areas and the consumer sub-sectors within these markets contributed significantly to this growth,” points out Roger White.

Barr’s efforts to grow brand awareness in a wider geographical area. Both Rubicon stills and carbonates grew throughout the year, with carbonates growing by 40% so that they now account for 40% of the Rubicon brand sales mix. In addition to driving increased brand awareness, AG Barr is further building the portfolio with the addition of Rubicon Light. Rubicon Light is designed to broaden the brand’s appeal to a wider range of consumers. In the current year, AG Barr plans to further strengthen the Rubicon portfolio and will continue to develop the KA and Sun Exotic brands which complement Rubicon in the company’s exotics range. “Much of our sales growth in the last year was delivered as a consequence of our increased focus on our core brands and our strategy

Innovation Although the overall total soft drinks market has been buoyant, innovation has proved challenging as consumers remain loyal to established brands, which they know and trust. “This insight has driven our portfolio developments to focus not on the completely new but on the development of the format, flavour and variants of existing brands,” he adds. In addition to the launch of Rubicon Light and extending the KA brand, AG Barr has introduced several new flavour variants, including KA Fruit Punch and Barr Orangeade. It is also rebranding its diet Irn-Bru to Irn-Bru Sugar Free. Strong Financial Performance “AG Barr has maintained its track record of strong financial performance, delivering double digit sales and profit growth, despite the challenging macro economic environment. We have increased investment across the business in our brands, assets and people to support this growth,” says Roger

FOOD & DRINK BUSINESS EUROPE, APRIL/MAY 2011

White. “Across 2010 we also made significant investments in our operations and supply chain, which will give us the ability to improve service to customers and drive efficiency in the future.” The company’s balance sheet remains robust, with net debt reduced to £16.6 million and the business continues to generate strong free cash flow, providing a platform for future investment. “It has been a challenging year from an operational perspective – significant internal investment, change and a site closure were all delivered during a period of strong volume growth,” he adds. Capital Investment Programme The investment programme at AG Barr’s Cumbernauld production facility in Scotland progressed well, as did the move into third party primary logistics and storage. These two major projects have enabled closure of the company’s site at Mansfield in England. Overall capital expenditure during the year totalled £9.8 million - well ahead of the previous year when £5.3 million was spent. The capital investment at Cumbernauld has been focused on new filling/blowing equipment. “The choices we have made in regard to the blower/fillers and bottle designs will not only enable significantly increased volume through the site but will also reduce our PET usage by some 7% on these new machines as well as reducing the energy used in the production of these bottles by 12.5%,” says Roger White. “These changes have proved to be crucial in helping to offset some of the immediate cost pressures now being felt in material costs in the early stages of the 2011/12 financial year.” It is anticipated that 2011/12 will see further value adding and cost reducing capital projects such as in-house sleeving of PET bottles and the completion of a wind turbine project. “In addition, we are now planning further capacity stretch options to ensure we can meet the future volume, portfolio and format demands of our business,” he remarks. Outlook Despite increasing like-for-like sales for the second consecutive year by over 10.0%, AG Barr expects a challenging year ahead. “The soft drinks sector will face tough comparative trading across 2011, as well as further cost volatility and general economic uncertainty,” comments Roger White. “However, we face these challenging conditions with good momentum, a well invested business, excellent operational plans and a strong financial position.” Indeed, sales in the first eight weeks of the new financial year are already ahead of the same period in 2010. J FOOD & DRINK BUSINESS EUROPE, APRIL/MAY 2011

I DAIRY

Healthy Prospects For Whey Ingredients The European whey processing industry is benefiting from the growing consumer interest in healthy nutrition and functional food and drink products, and has been investing heavily in new manufacturing technology to meet this demand. hey is the serum or liquid part of milk separated from curd during cheese manufacture. Consequently, the major European cheesemakers are also the largest producers of whey. Although a secondary product of cheese making, whey has become a key dairy ingredient. Because of their high nutritional value and excellent functional properties, whey and whey components are used by the dairy industry and other food processors in a wide range of applications. Whey products are a combination of high-quality proteins, lactose, bio-active components, minerals and vitamins. Within the dairy sector, whey and its ingredients are used in products such as yoghurts, milk drinks and ice cream. Whey and its components are used by the broader food industry as a value added ingredient, featuring in products across the meat, fish, bakery, confectionery, snack foods and infant formula sectors. However, whey is chiefly used by the animal feed industry.

new applications of high importance for consumer markets,” points out Dr Joop Kleibeuker, secretary general of the EWPA. “Whey still has many options for newly developed ingredients because of the continuously developing techniques for separation and modification.”

Functionality In more recent times, whey has become increasingly recognised as a functional food with health benefits. Indeed, whey and whey components are now being incorporated as functional ingredients in dietetic and health foods such as slimming foods, diets for the elderly and clinical foods. Bioactive whey ingredients such as bioactive proteins, which provide an additional health benefit for the consumer, are increasingly used in pharmaceuticals as well

Whey is the serum or liquid part of milk separated from curd during cheese manufacture.

as nutraceuticals. New whey-based ingredients are also being developed for the infant formula sector. The whey industry has been successful in developing new applications for whey and whey ingredients to expand the variety of healthy food products available to consumers. According to the European Whey Products Association (EWPA), whey manufacturers are also focusing on refining activities, such as the production of lactose and whey proteins, by separating whey into different fractions and gaining a deeper knowledge of whey components that will allow manufacturing of more sophisticated and higher quality products. Over 25% of the whey production in the European Union is now used for human consumption, points out the EWPA, and forecasts indicate that human applications of whey and whey products may soon surpass its utilisation as animal feed. “Whey based ingredients can find many

Market Performance With manufacturers exploiting the growing demand for functional foods and developing more added value products, the global market prospects for whey ingredients are promising. Whey and lactose ingredients are continuing to show positive growth rates in volume terms although less so in value terms, after prices recovered to a more normal level in 2010 after the dramatic fall in the 2007-2008 period, according to a new report titled ‘Global Opportunities for Whey and Lactose Ingredients 2010-2014’ from 3A Business Consulting. Whey powder, whey proteins and whey protein fractions generated global sales of approximately $5 billion in 2010 and the market is expected to reach a value of $6.4 billion in 2014, corresponding to a CAGR of 4% at constant prices. Lactose, pharmaceutical lactose, permeate and lactose derivatives were worth more than $1.6 billion last year, and are projected to increase to almost $2 billion in 2014 resulting in a CAGR of 3%. “The extreme price increases in 2006 and first half of 2007 forced many food manufacturers to replace expensive whey and lactose ingredients with cheaper food ingredi-

DMK and Arla Foods to Invest €44 Million in Whey Processing Partnership DMK (which is being created by the merger of Nordmilch and Humana) and Arla Foods are establishing a 50/50 joint venture to process whey for the global food manufacturing industry. The name of the new joint venture will be ArNoCo, and the two partners will invest a total of Eur44m in whey processing capacity. Eur35 million will be used to build a whey processing plant at DMK’s cheese plant at Nordhackstedt in Northern Germany, and Eur9 million will be spent at Arla Foods’ Danmark Protein plant in Denmark. The joint venture will buy whey from DMK, estimated at more than 700,000 tonnes annually, and convert it into whey protein concentrate and lactose

at the new plant. The Whey protein concentrate will then be dried at Arla Foods’ Danmark Protein plant. DMK will supply all related services on behalf of ArNoCo. Arla Foods Ingredients will market, sell and distribute the products to the global food manufacturing industry. The building of the new German plant is expected to start in October 2011. The plant is scheduled to be in operation by the end of 2012 creating approx. 24 jobs. Peder Tuborgh, chief executive of Arla Foods remarks: “We have identified the whey business as an important part of Arla Foods’ 2015 strategy and we are Peder Tuborgh, chief executive of Arla set to double the turnover of our whey business. This is Foods. an important step forward in achieving that goal.”

FOOD & DRINK BUSINESS EUROPE, APRIL/MAY 2011

are stagnating. A similar pattern emerges within the lactose product group. High growth is being achieved by permeate, lactose derivative galactooligosaccharides and to some extent pharmaceutical lactose, whereas standard lactose shows limited growth. The EU-27 and the US are the largest producers of whey and lactose products globally, although output in the US is growing faster than that in Europe. The US has now become the biggest exporter globally The EU-27 and the US are also the two major markets for whey products, whereas Asia is rapidly approaching the top spot for lactose. 3A Business Consulting predicts that during the 2010-2014 period, the Asian region, including China, will present the highest growth both in absolute and relative terms.

Glanbia is one of Europeâ&#x20AC;&#x2122;s largest producers of whey.

ents, resulting in less demand for products. However, demand has been re-established at previous levels in 2010, assisted by lower prices and recovery of the global economy,â&#x20AC;? explains Tage Affertsholt, managing partner of 3A Business Consulting. Key Trends 3A Business Consulting identifies several clear product trends. For whey, the highend protein products - WPC80, isolates and hydrolysates - are growing by double digit figures, driven chiefly by the nutritional sectors and particularly sports and energy nutrition products. By contrast, whey powder and other low-end products

range of mainstream foods. The rising consumption of performance/sports nutrition products in mature markets and the continued demand for infant nutrition products in emerging regions, particularly Asia, are fuelling the growth in whey protein-based nutritional ingredients. Major Players Not surprisingly, the biggest players within the whey and lactose ingredients market are

Increasing Added Value Whey processors have been successful in segmenting the market by investing in new technology to produce increasingly sophisticated products. Many producers have developed and are now marketing added value whey protein ingredients for use in infant nutrition, sports formulae and to enhance the nutritional content of a wide

Over 25% of the whey production in the European Union is now used for human consumption, according to the EWPA.

Cheese Milk Standardisation rocessors have always been able to adjust P the butterfat content of milk used for cheesemaking by the addition of cream or skim milk depending on the type and characteristic of the cheese being made, but in order to maximize yield and consistency of manufacture the real goal has been to adjust the butterfat/protein ratio. The protein level in milk and particularly casein varies widely depending on the time of year. Buying groups and processors are encouraging farmers to produce higher protein milk and are increasingly paying a premium if the milk is being manufactured into cheese. Yield of cheese from a given quantity of milk is significantly affected by the protein/casein content. When proteins are low, generally in the spring time, yields can by >10% lower than when the proteins are highest in autumn. The consequence of this is that although a cheese plant may be putting the same volumes of milk into the cheese vats the quantity of cheese produced on any one day is reduced. Adjusting the fat/protein ratio enables the plant to produce the same quantity of cheese per litre of milk all year round. In

order to adjust the fat/protein (casein) ratio it is necessary either to add butterfat, normally not required, or remove butterfat and enhance the protein. Protein levels can be increased by up to 15% without adversely affecting the quality of cheese being produced. The adjustment is achieved using Ultra Filtration membrane technology. Ultra Filtration System Cold raw milk is concentrated on an Ultra Filtration system prior to pasteurisation. Operating at low temperature ensures that the milk remains bacteriologically sound and the butterfat globule remains in tact. Skimmed milk can also be treated in the same way. The Ultra Filtration membrane allows the passage of water, mineral and lactose whilst retaining the fat and protein. Accuracy in the standardisation of milk components is critical if the quality and yield benefits are to be achieved. An analyser flow cell using Near Infra Red (NIR) technology is placed in the milk stream between the Ultra Filtration plant and the milk pasteuriser to continuously monitor the fat/protein ratio.

Real Time Control The information from the analyser is used to control fat addition or extraction, skim addition and the concentration factor of the Ultra Filtration plant. The analyser provides real time control of all the milk stream processed. The software in the analyser Plc ensures the instrument calibration remains accurate without the need for external adjustment. Utilising such a system during the time of year when proteins are low can substantially increase the tons of cheese manufactured. It is also worth noting that proteins are lowest during the early part of the year and through flush when milk volumes are highest. The permeate from the Ultra Filtration process contains primarily lactose which is a relatively low value commodity. However, the lactose has not been subjected to the cheesemaking process and unlike lactose from cheese whey can therefore be used for protein.standardisation in some other dairy products. For further information contact David Kellett & Partners Ltd on Tel +44 1981 570611. J

FOOD & DRINK BUSINESS EUROPE, APRIL/MAY 2011

also the leading dairy and cheese companies. The largest European groups include Lactalis, FrieslandCampina, Arla Foods and Glanbia, which compete in global markets with major international dairy processors such as US-based Hilmar, Fonterra of New Zealand and Murray Goulburn from Australia. Smaller European whey and lactose ingredient companies such as Meggle and Milei of Germany, Euroserum of France, Carbery of Ireland and UK-based Volac tend to focus on various speciality products. Nestle and Danone, the two largest dairy companies in the world, are not involved in the production of whey and lactose ingredients but use them extensively in their infant nutrition and other food products. For instance, Nestle has just opened a new Eur117 million factory in Germany dedicated to producing hypoallergenic (HA) infant formula. HA infant formula is based on 100% whey protein which is hydrolyzed – or broken down – to reduce the allergenicity of protein found in cow’s milk. Investment in New Technology With the market fundamentals remaining positive, many European dairy companies are investing in new technology to increase both capacity and the sophistication of their whey ingredients. For example, Arla Foods recently formed a joint venture with DMK to invest Eur44 million in new facili-

Link at its Taw Valley Creamery in England to increase production capacity of whey protein isolate by 100% in response to increasing sector demand for premium fat-free protein. Several Irish dairy companies, with the support of Government grant aid, have invested heavily in new whey processing facilities during the past couple of years in order to increase the proportion of added value production and to ensure continued global competitiveness in the long-term. Glanbia invested Eur22.5 million in a whey protein concentrate project, designed to enable the group’s processing facility at Ballyragget to focus on high specification products. Kerry Group has spent Eur24.6 million on the development of a new facility to supply demineralised whey and other whey products, which can meet the stringent standards and microbiological quality required for infant formula ingredients. Carbery Group has completed a whey and lactose project, costing Eur24 million, for the recovery of value added whey components as well as the development of edible grade lactose production. A Eur23.3 million cheese and whey investment has been undertaken by Dairygold. In Northern Ireland, Dale Farm, which is owned by dairy co-operative United Dairy Farmers, has invested £16.3 million to increase cheese and whey processing at its Dunmanbridge facility, including a new whey ultra-filtration plant. J

Nestle has opened a new Eur117 million factory in Germany dedicated to producing hypoallergenic infant formula, which is based on 100% whey protein.

ties in Germany and Denmark to process whey for the global food manufacturing industry (see Panel). The move is in line with Arla Foods’ development strategy, one aspect of which is to double sales of powdered whey proteins to become the global leader. Arla Foods purchases whey from other major cheese producers and has processing facilities in several locations across the world. In the UK, Volac, the largest supplier of whey protein to the lifestyle sector in Europe, recently spent £2.5 million to upgrade and expand its factory in Wales, as well as making a £10 million joint investment with British dairy co-operative Milk

Membrane Technology in Whey Processing By Karsten Lauritzen, Manager R&D, DSS Silkeborg or more than 10 years DSS has been F the leading supplier of membrane filtration technology to the dairy industry world-wide. We are 35 employees with up to 25 years’ individual experience within membrane filtration and dairy processes. Our focus is custom-made equipment, service and replacement membranes/spare parts, and we have a fleet of pilot plants for demonstration and development of new membrane based dairy ingredients and applications. Since the late 70s membrane technology has become more and more common in the dairy industry and one of the big drivers has been whey processing. The initial idea of using membrane technology for whey processing was to use the whey proteins as raw material in the pharmaceutical industry; however, this application never caught on. Soon focus changed in the direction of food ingredi-

ents, and a product WPC35 (whey protein concentrate with 35% protein in dry matter) based on ultra filtration was developed as a substitute for skim milk powder. Over the last 30 years a wide range of whey-based ingredients have been developed for different application areas. The main focus is food functionality and nutrition, because whey proteins have

great functional properties and a high nutritional value. Infant formulation is a major business driver for development of new wheybased ingredients, as demand for more humanlike formulations is growing. Membrane filtration is the most commonly used technology in these fields, applied both in the development of new ingredients and in food safety due to its capacity to reduce unwanted microorganisms in product streams. Today, dairy ingredients is one of the fastest growing businesses in the dairy industry with substantial focus from major dairy companies world-wide, and membrane technology is used in production of bulk and special products like WPC35, WPC80, whey protein isolate (WPI), demineralised whey, single protein fraction and hydrolyzed whey fractions. J

FOOD & DRINK BUSINESS EUROPE, APRIL/MAY 2011

RELCO – A Global Source For Food and Dairy Processing Equipment and Systems ontinued growth in sales and operaC tions has placed RELCO among the leaders in customized cheese, whey, soy and varied food processing technology. With engineering, fabrication and sales facilities in the US and The Netherlands, and its sales office in New Zealand, RELCO has become a global source for the automation, manufacture and installation of food and dairy processing equipment and systems. RELCO® Evaporation and Drying Systems is a widely recognized innovator in lactose processing technology. Complementing the KELLER™ Lactose Drying System and KELLER™ Permeate Drying System RELCO also offers systems for whey, WPC and milk powders. Their unique crystallizing and evaporation designs exceed the industry standard for high solids feed to the dryer for low cost total processing RELCO® Powder Handling Systems and Equipment comprises a wide range of sanitary bulk powder conveyance solutions.

Among the components and systems are rotary airlock and gravity divert valves, 25 Kg bag fillers, 25 Kg bag break stations, bulk bag fillers and unloaders. The line also includes, but is not limited to, vacuum filter receivers and vacuum and pressure blower packages; and all meet or exceed the most stringent standards for safety and sanitation. RELCO® Cheese Plant Technology continually develops new innovations for milk receiving and storage, separation, standardization and heat treatment. Additionally, RELCO provides cheese curd handling systems, cheese vats and vat automation and cook control. By sound design and reliable manufacturing, RELCO responds to its cheese making customers’ needs with single components, complete process systems or total plant integration. RelTronix® process control engineers stand at the industry’s forefront because of their application knowledge, acute understanding of and adherence to sanitary and

KELLER™ Lactose Drying System.

KELLER™ Permeate Drying System.

Innovative Process Technologies, Engineered Right www.relco.net

regulatory requirements, and a keen focus on customer needs. RELCO has installed 32 custom-designed lactose or permeate drying systems in six countries around the world. All of the designs maximize moisture removal through evaporation to minimize the size and energy requirements of the dryer. Typical solids concentration to the dryer for whey permeate is 80%. A continuous crystallization system is used for permeate and whey processing, thus eliminating the standard batch tank process. The RELCO Whey Drying System combines these new technologies in evaporation, crystallization and spray drying to create a high efficiency drying system. RELCO offers for your own testing and verification a pilot plant Permeate Drying System that can be operational outside your plant using your liquid whey or milk permeate. The system includes an evaporator, crystallizer, dryer, filter receiver and CIP system to produce 150 Kg of powder per hour to sample and test your product. J

Willmar, MN USA Drachten, The Netherlands Auckland, New Zealand

FOOD & DRINK BUSINESS EUROPE, APRIL/MAY 2011

+1 320 231 2210 +31 512 58 3250 +64 21 280 1373

SPX – A World Leader in Whey Processing PX has been involved in many whey S projects over the years. Most recently, SPX introduced a number of innovative processes that combine even higher levels of product quality with more sustainable production results. Newly installed technologies for produc-

ing non-caking permeate powder are the foundation of a recent SPX order from TINE, the largest dairy group in Norway. The order is one of the largest in the history of SPX’s Anhydro brand with a total value in excess of 26 million Euros. Completely New Dairy Plant

TINE decided to invest in a new dairy plant in Jæren, located in south-western Norway where milk production is very high. The new plant will produce Norwegian and Jarlsberg cheeses as well as various kinds of butter, spreads, WPC (whey protein concentrate) powder, and permeate powder. The flexibility of the Anhydro powder plants will also enable production of whey and skim milk powders.

The contract with TINE also includes a second phase which includes another totally identical plant to be installed in Verdal, Norway. Dedicated Whey Centre

All whey resulting from cheese production will be clarified, skimmed, pasteurised and cooled before being pre-concentrated to about 18% TS on an RO plant in a dedicated whey production centre. The whey centre will also receive RO concentrated whey from other cheese plants in the southern part of Norway. The RO concentrate will be separated into WPC and Permeate. The permeate product will continue to evaporators and via crystallisation to dryers. SPX will deliver all evaporators, spray dryers and the crystallisation plant for this project.

Permeate Powder, which does not contain lumps when stored or handled is considered to be superior to conventional spray dried permeate powder. The product then proceeds to the final crystallisation step on a continuous crystallisation belt. Finally the powder is dried in a fluid bed dryer. The WPC from the separation process will also be dried in a new SPX spray drying plant. High Sanitary and Traceability Standards

In order to fulfil the customer’s requirement for high sanitary standards and traceability for baby food and other human

Sustainable and Flexible Permeate Process

The permeate line consists of a newly developed sustainable process with capacities of approximately 3,000 kg/hr of Non-Caking Permeate Powder. The process also is made up of a 2-stage evaporator with integrated heat and hold system, an MVR evaporator (40% TS), followed by a TVR evaporator (60% TS) and a final 2-stage flash cooling system (62% TS). The addition of the heat and hold system has increased the stand times of the evaporators enabling a total running cost reduction of up to 30% by reducing energy, water and chemicals consumption. Non-Caking Permeate Powder

The final concentrate from the special 2-stage flash cooler is forwarded to a crystallisation plant, which also is a part of the SPX delivery. The 2-stage flash cooler optimises pre-crystallisation in the crystallisation tanks, thus providing optimal running conditions for spray drying where the foundation for Non-Caking Permeate Powder quality is laid. Non-Caking

nutrition powder products, the entire plant is made according to their specifications. These can vary due to a customer’s individual requirements, as well as by local rules and regulations. See You in Chicago!

SPX is looking forward to meeting the dairy industry at the International Whey Conference in Chicago from September 18-21, 2011, where visitors will be able to experience and learn more about the latest SPX developments and advances in whey processing. J

FOOD & DRINK BUSINESS EUROPE, APRIL/MAY 2011

QUALITY I

& HYGIENE

COLOUR MEASUREMENT

Lovibond Tintometer – Specialists in the Food and Drink Industry here is a growing awareness within the T industry about how colour measurement technology can contribute significantly to the quality analysis of food and drink products. Indeed, food and drink manufacturers are increasingly adopting colour measurement techniques and systems that have been long used in other industries such as textiles, paint, plastics, automotive and edible oils. These tried and tested technologies allow greater control and measurement of the colour of ingredients and finished products. “Without colour measurement, you do not actually have any real colour control,” explains Matthew Russell, international sales manager - colour at Lovibond Tintometer. “Many food and drink companies have several people in a laboratory or in production making decisions about colour

Lovibond Tintometer recently launched its PFXi series of high precision spectrophotometric colorimeters, which introduces a unique concept in liquid colour measurement - the new Lovibond® RCMSi technology (Remote Calibration & Maintenance Service via internet).

but all are evaluating colour slightly differently. This opens up a ‘Pandora’s Box’ with problems stemming from the differences in evaluating colour.” Colour measurement technology eliminates the inherent problems of subjective colour evaluation by using objective and consistent standards of measurement that are verifiable and certifiable. It provides users with measurable and precise data about product colour. It also ensures that food and drink manufacturers and their customers are assessing product colour in the same way so there are no misunderstandings. International Expertise

Lovibond Tintometer has been at the forefront of technical innovation for the colour measurement of liquids and solids for 125 years. Founded in 1885 by Joseph Lovibond, a brewery owner who devised the ‘colorimeter’ as a means of ensuring the quality of his beer, the company has become widely accepted as an international expert in the field of colour measurement and colour analysis. Sold under the respected Lovibond brand name, the company’s comprehensive product portfolio incorporates both visual and automated instruments, reference liquid and coloured glass standards and a variety of precision fused cells, along with spectrophotometers for transmission and reflectance; colorimeters and colour comparators. Lovibond Tintometer has extensive knowledge of the requirements of food and drink manufacturers and has refined and

The Lovibond® NC45 Non Contact 45/0 geometry benchtop spectrophotometer is designed for the colour measurement of many types of wet and dry samples including powders, pastes and gels.

developed products specifically for this market. Indeed, the company’s colour measurement and analysis systems and instruments are widely used across the full spectrum of the food and drink industry, including the edible oils and fats, beer, soft drinks, bakery, flour milling, sugar, biscuit and confectionery sectors. Extensive Product Range

The company has an extensive product portfolio ranging from single instruments to full on-line systems, designed to suit the different requirements of all sizes of food and drink companies. Lovibond Tintometer’s experience and expertise allows it to provide comprehensive technical support for customers. With food and beverage processors increasingly demanding a scientific, precise and certifiable means of measuring and analysing the colour of their ingredients and products, Lovibond Tintometer has recently developed industry specific solutions.

Panel One: NC45 – The New Lovibond® Non Contact Spectrophotometer The new non contact spectrophotometer from Lovibond Tintometer enables sample measurements from a distance, eliminating any surface distortion. The Lovibond® NC45 Non Contact 45/0 geometry benchtop spectrophotometer is designed for the colour measurement of many types of wet and dry samples including powders, pastes, gels, plastics and paints. The versatile form factor also simplifies measurements of two and three dimensional objects. The Lovibond® NC45 is the solution for many of the measurement problems that have, to date, remained unsolved. It is ideal for measuring the colour of products that normally require protection from physical contact such as liquids and pastes, or in which the surface appearance is changed by the presentation method, such as when the sample is pressed behind glass. These can now be measured in their natural, unaltered state, as the eye sees

the sample. Simplified measurements on two and three dimensional objects are also accommodated via the integrated gloss sensor which provides 60 degree correlated gloss values. The NC45 standard ‘spoon’ and ‘petri dish’ adaptors allow accurate and repeatable sample presentation with customised adaptors for unique requirements, further increasing the flexibility of this new product line. An additional NC45 mounting stand also allows easy, accurate height adjustment, accommodating measurements of varying heights and shapes, eliminating guesswork and ensuring accurate and repeatable measurement results on virtually any sample. A detailed datasheet and specification is available from pr@tintometer.com. For pricing, availability and delivery information, contact sales@tintometer.com.

FOOD & DRINK BUSINESS EUROPE, APRIL/MAY 2011

QUALITY

& HYGIENE

Panel Two: Remote Calibration and Maintenance Via the Internet Lovibond Tintometer recently launched its PFXi series of high precision spectrophotometric colorimeters, which introduces a unique concept in liquid colour measurement - the new Lovibond® RCMSi technology (Remote Calibration & Maintenance Service via internet). This new technology offers the capability for remote calibration and servicing via the internet eliminating any costs and time delays associated with servicing and guaranteeing compliance with standards.

Major Recent Developments

According to Matthew Russell, there have been two key developments within the colour measurement market for the food and drink industry in recent times. “The development of non-contact colour measurement technology is the first one. In the past, the colour measurement instrument was in physical contact with the material being assessed. You can now measure from a distance, so you do not run the risk of contamination of the product and your instrument.” The Lovibond® NC45 Non Contact 45/0 geometry benchtop spectrophotometer is designed for the colour measurement of many types of wet and dry samples including powders, pastes and gels.

RCMSi is the process in which a number of tightly controlled calibration liquids are measured in a 50mm cell via the Calibration function of a PFXi. The data is communicated via the internet to a secure server and compared to Master Data. If the data passes within tolerance, then a certificate of calibration is e-mailed to the user. This allows Lovibond Tintometer to ensure a PFXi instrument is operating correctly and is fully traceable to national and international transmittance scales using ISO 17025 calibrated reference materials.

See Panel One. He continues: “The other major development, in terms of the measurement of liquids, is our new RCMSi technology, which allows you to remotely calibrate an instrument so you can be confident it is giving accurate results.” RCMSi (Remote Calibration & Maintenance Service via internet) technology has been developed to work with the company’s recently launched PFXi series of high precision spectrophotometric colorimeters. See Panel Two. Benefits

Using colour measurement technology brings major benefits for food and drink manufacturers. It facilitates the optimisa-

tion of processes and better colour communication throughout the supply chain. For instance, when a product is being manufactured to attain a certain colour, this part of the process can be measured precisely. This in turn leads to avoidance of waste, because the product will not be rejected on the grounds of colour, and so costs are reduced. Better colour communication within the supply line enhances customer relationships as products are made to agreed and measurable standards that can be verified objectively. Using objective colour measurement standards permits greater control over the production process and supply chain ensuring full customer compliance. J

FOOD & DRINK BUSINESS EUROPE, APRIL/MAY 2011

Tetra Pak CPS Reduces Production Costs For Johnsons Juices etra Pak CPS has integrated a new sinT gle strength apple juice road tanker intake, bulk storage and distribution net-

plete systems through to individual components means that it adopts a unique hands on approach to working with its customers. Johnsons Juices was involved at each stage of the project and Tetra Pak CPS' engineering knowledge allowed many additional process features to be included, which have maximised product integrity and minimised wastage. Johnsons Juices Operations Manager, Howard Garbutt, comments: “We have developed an excellent working relationship with Tetra Pak CPS. I am extremely pleased with how well the project was managed and implemented and would have no hesitation in recommending Tetra Pak CPS to others.” For further information contact Tetra Pak CPS on Tel +44 (0)1935 818800 or visit www.tetrapakcps.co.uk. J

work at the Johnsons Juices site in Headcorn, Kent. Tetra Pak CPS supplied Europe's largest freshly squeezed juice manufacturer with a new 30,000 litre chill jacketted vessel and a free issue 30,000 litre vessel with double seat valves, which allow Johnsons Juices to safely undertake production alongside CIP and therefore enhance production up-time. To ensure the new equipment was incorporated into the existing production facility with no disruption to output, Tetra Pak CPS worked in close partnership with Johnsons Juices to plan all the site break-ins. Tetra Pak CPS’ flexibility and specialist skills in designing and manufacturing com-

Star Quality Cooling For Scottish Meat Processor eat processor Scotbeef has chosen a high M efficiency cooling system from Star Refrigeration for a factory extension at its facility in Stirling. Scotbeef is a major supplier of Aberdeen-Angus, Scottish beef and lamb products to supermarkets in the UK and across the European Union. The company was recently looking to extend its existing processing site at the Bridge of Allan, in Stirling. An energy efficient refrigeration system was required to provide cooling to three new beef processing rooms within the extended facility. It was vital that the cooling system provided accurate temperature control to a post slaughter chill area, beef quarters chill room and

boning room. Scotbeef opted for a high efficiency ammonia packaged Azanechiller from Star Refrigeration to meet its cooling requirements. The client had visited Star’s manufacturing facility at Westway, near Glasgow, to see Azanechiller in operation and was impressed by its build quality and low noise levels. Star’s Azanechiller is a complete refrigeration package, ideally suited to food and drink production, cold storage, distribution and process cooling. It offers exceptional operating efficiency and has a robust construction designed to provide over 20 years of hassle-free performance. J

Packaging Reduction Tastes ‘Sweet’ ational Flexible, the Yorkshire-based film specialist, has provided a cost-effective packagN ing solution for Apollo Snacks – one of London’s leading suppliers of pre-packed nuts, snacks, sweets and dried fruits for a hungry market. With an expansive range of product lines, Apollo was looking for a packaging solution which would avoid the expense involved in originating a registered print for each of its different products. National Flexible’s experience of working with its customers in the area of cost reduction meant that the company was well placed to offer the ideal solution – a generic print across the range, potentially saving thousands in repro, origination and printing costs. The colourful artwork for the bags was provided by London – based designers Dalziel and Pow. The end result was an eye-catching printed laminate film used by Apollo Snacks to bag product in its factory on automated VFFS packaging machinery – and the new look has helped it make more sales. For further information contact National Flexible on Tel +44 (0)1274 685566. J 34

FOOD & DRINK BUSINESS EUROPE, APRIL/MAY 2011

I RETAIL READY PACKAGING

DS Smith Packaging Making Ideas Happen S Smith Packaging, working closely D with leading fmcg brands, is showing the world just how flexible the corrugated pack can be, able to adapt to specific products and supply chains in such a way that very substantial reductions can be made in costs and carbon. Retail ready packaging, already a dynamic and fast moving area, has been given even more momentum through the launch of DS Smith Packaging’s R-Flute®, a new type of corrugated fluting designed to help customers sell more, reduce supply chain costs and operate sustainably. Benefits to customers working with DS Smith Packaging are widespread, from minimising material use to boosting sales. Here are a few examples. R-Flute® has helped to achieve significant savings in cost and carbon for Kellogg’s Nutri-Grain range. A previous competitor pack, produced in C-flute, was reported to look ‘washed out’. The new R-Flute® pack now stands out on the shelf far more, as well as being easy to find back of store, helping to drive onshelf availability. The change to R-Flute® has reduced Kellogg's pallet movements by 911, equating to a massive 24 full loads less per year. Overall that is a saving of 22 tonnes of C02 pa.

has won numerous packaging awards for its innovative ideas. Two packs have been recognised with Worldstar awards, clear recognition of their world-class qualities. One of them went to a Vitacress pack and the other to a very distinctive Surf Seeds retail ready pack manufactured for Enviropak Supplies Vitacress, one of Europe’s leading growers of watercress, required a packaging design that would remove cost from their supply chain and help maintain the quality of the product in distribution. The result was a design that allows ice to melt cold water over the watercress. A drain tray containing ice sits on the top of the pack supplied allowing melting water to drain over the watercress. A moisture resistant film is laid on the inside of the pack and a thermal PE liner on the outside. The pack replaces expanded polystyrene, has stimulated a significant increase in sales and reduced inbound shipments tenfold. Following a full review of the previous Surf Seeds pack design, a low-sided tray with two fittings and shrink-wrap, the DS Smith Packaging team recognised the need for something visually distinctive on shelf. The new ShelfMaster one-piece, two colour printed pack is made in a double E-flute corrugated board with an ‘exposed fluted’ internal liner that incorporates an auto-crash base and an integral central divider. Both elements of the design mean that the product is held securely within the pack when open on the shelf. This award-winning pack performs well in the supply chain, ensures product stability and looks great too! It has eliminated the need for shrink-wrap and is 100% recyclable.

Nutri-Grain - saving 22 tonnes of CO2 pa.

DS Smith Packaging recommended RFlute® to Lincolnshire Herbs, changing their packaging from standard B-Flute with opening tape, to a single material retail ready format. The new perforated pack forms squarely, opens reliably and optimises board strength. It has enabled 10,200 more packs inbound to be stacked in each lorry. Award Winning Over the past year DS Smith Packaging

Surf Seeds - a Worldstar award winner.

At the UK Packaging Awards in November the award for Retail Ready Pack Of The Year went to DS Smith Packaging

for its Cadbury Caramel Nibbles display pack. The judges felt this pack was “a perfect example of how RRP benefits the brand, supermarket and, importantly, the consumer” giving the products maximum visibility and impact on shelf.

Retail Ready Pack of the Year.

Promoting Brand Values Impact and use of colour on packaging to promote brand values has always been a top priority for DS Smith Packaging. RFlute® has opened up new print possibilities due to a profile that is flatter and better than B-Flute’s. A good example of this is a robust and colourful pack for Calypso Soft Drinks. The impressive Eric the Elephant pack, post printed in five colours, has also benefited from the use of DS Smith Packaging’s unique PackRight suite of tools. DesignRight ensured that the pack was engineered to meet the rigours of Calypso's automatic packing lines and extended supply chain. ImageRight, in combination with RFlute’s® flat print surface, gave the finished pack an outstanding colourful and vibrant impact, with precise matching of all the brand colours. In the 2011 EFIA print competition the Calypso pack was just one of thirteen awards collected by DS Smith Packaging, who also picked up two gold awards for Brabantia and Cadbury Caramilk Secrets. Tony Foster, Sector Director at DS Smith Packaging, says: “It's very rewarding working with customers to improve their supply chains whilst at the same time, helping them to promote their brands. It’s about saving them cost, reducing CO2 emissions and increasing their product sales. We want to do much more of it! Interested brand owners should talk to us about visiting our Impact and Innovation Centre at Ely (IIC) – we MAKE IDEAS HAPPEN.” J

FOOD & DRINK BUSINESS EUROPE, APRIL/MAY 2011

I BAG-IN-BOX

Logo Will Boost Bag-in-box’s Environmental Profile ag-in-box specialist Rapak has B launched a major initiative to promote the environmental benefits of the format among end consumers. The company has developed a unique, eye-catching logo which can be printed on both the bag and the box to convey the message that ‘bagin-box technology is green’. Rapak says the logo has been introduced to help companies who use bag-in-box provide valuable reassurance to their customers while at the same time contributing to an enhanced brand image for their products. In addition, the company has established a special website www.baginboxisgreen.com to highlight the format’s many benefits to consumers. The basis for these initiatives is the independent Life Cycle Assessment of bag-in-box packaging, commissioned by Rapak from PIRA. The PIRA report assessed and compared the potential life cycle environmental impacts of bag-in-box technology with alternative liquid packaging formats in key markets including

wine, postmix syrup, dairy, edible oils, chemicals, industrial products, aseptic and bulk packaging. The overall findings, which are published at www.rapak.com/pages/environment.asp, confirmed that bag-in-box has excellent environmental credentials that are at least competitive with and in many cases superior to alternative packaging formats. “We have taken this important step to emphasise that while bag-in-box is already an established and popular packaging format, it remains wholly relevant to today’s markets and the current needs and concerns of the end consumer,” explains Rapak’s sales and marketing director JeanPaul Roosendaal. “Indeed, it is the attributes which make bag-in-box so versatile, such as large size convenience and extended product protection, that also contribute to its strong environmental profile. Highlighting these benefits will confirm to consumers the appropriateness of their purchasing deci-

Bag-in-box specialist Rapak is launching a major initiative to promote the environmental benefits of the format among end consumers.

sion, helping to boost sales and positioning the brand owner as a responsible company. We hope customers will be keen to take advantage of the logo to assist in their marketing and promotional activities.” J

Bag-in-box Quenches Thirst of Romanian Homeowners a Fantana, the market leader in L Romania for the supply of water coolers to the commercial sector, has selected

La Fantana has selected Rapak bag-in-box technology for its latest initiative to deliver fresh drinking water to householders.

Rapak bag-in-box technology for its latest initiative to deliver fresh drinking water to householders. This exciting new venture in residential water consumption is a first for Romania and sourcing a method of delivering a quality product to the domestic market, which looked good as well as being easy to use and store in the home, was a priority. The 10L Fantana box was launched after considerable research into its practical capabilities and design and also a pilot test market for feedback from existing customers. Rapak’s bag-in-box was chosen for its convenience and product protection. The technology, where the bag collapses as the liquid is dispensed, prevents air getting into the product and helps to maintain the quality of the water, while the tap offers quick and simple dispensing. Consumers can choose between the single 10 litre water box, which is available with a metal stand for added convenience, or a mini water cooler, also incorporating Rapak’s bag-in-box technology. This is another custom-made development for the domestic market from La Fantana, which is

available for home subscription. La Fantana’s 10L box was commended for its contribution to design and innovation at the Aqua Awards held at EBWA 2010, the trade fair for bottled water and point-of-use coolers, where it was awarded first place in the category ‘Best Product Design/Innovation – Other Products.’ Mihai Matyas, general manager of La Fantana Romania, comments: “Having recognised the potential in the domestic market, we needed to take into account both functionality and design in the creation of this product, seeking a pack that was appealing and comfortable while at the same time offering added value and quality in terms of the freshness of the spring water, convenience of handling and easy disposal after use.” He continues: “Rapak’s bag-in-box system met all our requirements and we are seeing increasing success not only with homeowners but also small businesses. We are delighted by the European industry recognition we received at EBWA, which underlines the potential for the technology in other markets.” J

FOOD & DRINK BUSINESS EUROPE, APRIL/MAY 2011

I PROJECT MANAGEMENT

Wingland Foods Expands as Chalcroft Extends Facility halcroft Construction, specialist in new-build and refurbishment projects in the food sector, has started work on the third phase of a project that will complete the expansion of a UK food production facility. Bakkavor-owned Wingland Foods, in Sutton Bridge, Lincolnshire, first called in Chalcroft in 2005 when it embarked on an expansion programme aimed at increasing production of deli style salad items for a well-known high street premium supermarket. On-site at Wingland Foods in Sutton Bridge, Lincolnshire. The latest project sees Chalcroft working on a high-care facility, complete with tinue to fulfil its potential,” says Edward insulated white walls, kerbs and resin floor. Getley, who heads up Chalcroft’s Food It also sees alterations to a blast freezer, Projects Division. “The work we are curupgrades to existing plant and the installa- rently carrying out at Wingland utilises tion of an innovative air-handling system. every aspect of our knowledge and experi“A growth in demand for its products has ence in this sector, particularly with the seen Wingland Foods embark on an expan- construction of a high-care facility that is sion programme that will mean it can con- adjacent to an existing production area.”

Special pods have been created around the doors that will eventually lead into the extension, with work scheduled to be complete in early May. Jonathan Fowler, from Wingland Foods, comments: “We’ve been pleased with the attention to detail, flexibility and partnership ethos demonstrated by the Chalcroft team on the project here at Wingland Foods. This project has been a case study in planning and logistics to ensure that there have been no interruptions to production and to make sure that when the extension opens, it fits seamlessly into use.” Chalcroft has worked with the Bakkavör group of companies for a number of years, with one of its most recent projects being an extension to the premises of Bakkavörowned Isleport Foods, in Highbridge, Somerset. For more information about Chalcroft, visit www.chalcroft.co.uk. J

Willett Food Projects Ltd – The Design and Project Management Specialist Willett Food Projects Ltd are a dedicated design and project management company, working exclusively on Food Manufacturing projects. We support client’s expansion and equipment drive projects by mapping requirements before outlining the costs/programme. We guide food manufacturers through the minefield of stages from concept to project completion. WFP prefer to work together with food manufacturing teams and help specify and jointly select the building, mechanical, electrical and refrigeration packages that would best suit their budget, requirements and aspirations. All our projects are carried out to current health and safety standards and construction regulations. We can provide all the necessary paperwork and site management to comply with the CDM 2007 regulations and BRC audit requirements. Our customers include food manufacturers in the bakery, pork, poultry, fish and convenience food industries. Our personal experience has been at high level within major food manufacturers, our knowledge and understanding of food operational, technical and automation issues is second to none. We provide all the disciplines necessary to design, consult and manage food factory equipment installations, extensions/ refurbishment’s and new builds. In particular high risk operations requiring careful control of filtered air, people, automated/non automated product and waste flows.

Tel: 08450 569399 Email: sales@willett-fpl.com Web: www.willett-fpl.com.

FOOD & DRINK BUSINESS EUROPE, APRIL/MAY 2011

I ENGINEERING & PROJECT MANAGEMENT

Food, Beverage, and Consumer Products Industries’ Competitive Edge: Engineering and Project Management Outsourcing Driving innovation and profitability in a global market! utsourcing engineering services is a growing trend in the food, beverage, and consumer products industries. At one time, large engineering departments capable of all facets of design, construction, and operation of a plant were commonplace. Some companies even designed and manufactured their own equipment. This has changed, and today large, multidiscipline, in-house engineering groups have been phased out and replaced with individuals focused on core competencies: product formulation, SKU’s, and new markets. Additionally, staff downsizing and retirements have left some companies without the corporate engineering capabilities they once depended upon to oversee the design and optimisation of their facilities. As a result, food, beverage, and consumer product companies have recognised the opportunity to partner with multidiscipline engineering firms that can fill their gaps in facility design as well as process and packaging engineering–the disciplines that they no longer have on staff.

• Apply safety, hygienic, and security experience • Support regulatory compliance (security, HACCP, SSOP, SPS, GFSI, and FSMA) • Design sustainable solutions • Support Six Sigma and Lean Manufacturing initiatives • Provide site management and coordination • Manage commissioning, startup, and verification • Drive value and innovation • “BECOME AN EXTENSION OF YOUR FACILITY TEAM”

Harnessing Resources Harnessing the unique skills and resources of another organisation to strengthen your company is one of the best ways to optimise operational performance. It is not necessary to own all of the engineering disciplines and services required to run your business; you simply need to be able to access those resources as needed. For many years, the idea of outsourcing engineering services and project management was seen as a threat to a manufacturer’s engineering and project management teams. Today, the benefits far outweigh any perceived threats: knowledge transfer opens up, safety is optimised, products get to markets faster, and return on investment is improved.

By Darryl Wernimont, Market Specialist

POWER Engineers strives to meet or exceed client expectations within a cost structure that would be difficult for our clients to obtain within their own organization.

The “POWER” Solution Engineering services and project management are cornerstones of POWER Engineers’ business. We specialise in managing a portfolio of multiple, ongoing, interdependent activities as a single initiative to achieve the overall business goals of our clients. POWER’s teams monitor and manage the interdependencies of each activity to ensure deliverables are as contracted and comply with the expectations of the project as defined. Each project has a definitive work plan, formalised schedule, and agreed-upon budget that enhance the effectiveness of each member’s resources and overcome coordination conflicts. POWER’s commitment to our clients: • Provide breadth of engineering disciplines • Define work scopes • Manage risk • Apply process, packaging, and automation expertise (hands-on experience) • Provide seamless integration of service provider, client’s team, and key vendors/subcontractors

Management & Relationships POWER’s project management is a carefully planned and organised program aimed at accomplishing established project objectives. Managing the outsourcing relationship is of critical importance. A successful relationship must be defined, managed, and properly led. A level of transparency should fall into place, goals of both parties should be recognised, and a means to monitor and measure the success should be established. Seldom are the business objectives of one party that much different from the other’s: both parties are looking to optimise the relationship, manage costs, drive revenues, and return value to their shareholders. As a service provider, we strive to meet or exceed our clients’ expectations within a cost structure that would be difficult for them to obtain within their own organisation. “Strong client relationships, new ideas, and deep technical skills are keys to our clients’ and our own mutual success.” About POWER Engineers POWER Engineers is a full-service consulting firm providing multidiscipline engineering services in 31 worldwide locations. Contact our Manchester, UK, office for more information: Byron Griffiths +44 (0) 161 457 2210 sales.eu@powereng.com J

FOOD & DRINK BUSINESS EUROPE, APRIL/MAY 2011

I LEAN MANUFACTURING

Implementing an OEE Solution at Robert Wiseman Dairies (Bridgwater) obert Wiseman Dairies processes and R delivers over 30% of the fresh milk consumed in Britain, every day. With an investment of over £80 million the company commenced production at its latest dairy at Bridgwater in Somerset in December 2008. The company now employs in excess of 4,800 staff across six dairies and fifteen distribution depots throughout the United Kingdom and the 325,000 sq m dairy at Bridgwater is capable of processing 500 million litres of milk per year.

tions module to alert specific personnel in real-time of particular incidents and events on the production lines. Implementation

The Issues

As part of its ongoing initiative to drive efficiencies across the supply chain, Robert Wiseman Dairies decided to invest in an OEE (Overall Equipment Efficiency) Program. Having initially developed an inhouse OEE software solution for the older dairies, with the opening of the Bridgwater dairy the business decided to investigate OEE software solutions from specialist software providers. Critical to the success of the Bridgwater investment was the early achievement of the plant’s efficiency goals, so the OEE initiative was implemented as part of a ‘Lean Toolkit’ and a SMART (Specific, Measurable, Achievable, Realistic, Time based) Continuous Improvement Program In order to support the delivery of the dairy’s efficiency goals, the business decided that it needed a ‘best-of-breed’ OEE Performance Management solution and in June 2009, following the development of an in-depth business requirements specification, Robert Wiseman Dairies chose

OEEsystems’ PerformOEE™ Performance Management Solution to be implemented at the Bridgwater dairy. The Solution

According to the RWD’s Project Manager, Andy Anderson,“the primary reasons for choosing to work with OEEsystems was the powerful, graphically-rich software, PerformOEE™, combined with the impressive expertise and track-record of their Operational Improvement Consultants and Technical Team. Early on in the engagement OEEsystems developed an in-depth understanding of our business, both technically and operationally, and demonstrated a solution to meet both our existing and future business requirements.” PerformOEE™ from OEEsystems is the premier Manufacturing Intelligence and Operations Performance Management solution, used by the world’s leading progressive manufacturing companies as their preferred application for managing real-time operational performance improvement. Providing actionable information for Lean Manufacturing, Six Sigma and other Operational Excellence programs, PerformOEE™ delivers real-time Production Performance Improvement based on accurate, real-time Manufacturing Intelligence. For the Bridgwater solution, OEEsystems also installed its DMAIC Project Management software to manage the projects which are identified by the PerformOEE3:09 p.m. software and the XDT™ Executive Desktop communica-

At the Bridgwater dairy PerformOEE™ was installed on all the production lines over a period of twelve weeks and integrates with the equipment PLC’s, the in-house LPS (Line Production System) as well as the CMMS software from Mainsaver. Andrew Rice, Technical Director of OEEsystems comments: “Our PerformOEE™ software is designed to be configured to a wide range of business environments – high volume, high mix, in both harsh and regulated (GMP) environments. While the technical implementation in RWD is impressive, the real challenge is to ensure that the software is configured to identify the operational performance losses and establish the true root causes of OEE losses. We worked closely with the RWD team to integrate the software with their Daily Operations and Continuous Improvement Program.” A goal of the implementation was to minimise the requirements on the Line Operators to enter data into the system, always a challenge for real-time data collection systems. For the online Operator Interface (HMI), OEEsystems chose DLoG IP67 rated terminals with wall-mounted large-screen plasma screens used to display the performance of each line. Andrew Rice notes: “We want Line Operators to be able to use the software in real-time to drive operations improvements and not to be distracted by the need to

FOOD & DRINK BUSINESS EUROPE, APRIL/MAY 2011

enter data into the system. Smart system configuration allows us to pick up work order details, good/reject quantities and different types of changeovers without Operator intervention. In fact in the RWD implementation we have built our detailed knowledge of the dairy operation into the software, allowing it to provide advance warning of potential OEE losses and ensuring that the Line Operators take action to prevent these losses.” The Results

After an initial twelve months working with OEEsystems, the Bridgwater dairy is delivering impressive improvements. OEE improvement has increased by more than 10% and is on track to deliver the same

again over the next twelve months. Pete Twiss, Site Manager at Bridgwater comment: “PerformOEE™ is fully integrated into our daily operations, morning meetings, shift handovers, short-interval control and Engineering and Operations Reviews. The software quantifies opportunities, identifying and tracking projects to deliver improvements and the OEEsystems team has helped us deliver improvement projects and train our teams on operational improvement and problem solving techniques.”

testing and acceptance phases and to develop agreed OEE performance criteria with the suppliers of new production equipment. J

The Future

OEEsystems’ PerformOEE™ software continues to evolve and the team at Robert Wiseman Dairies in Bridgwater continue to drive requirements for more detailed reporting and new performance reports. In a technologically complex and advanced processing plant, the company is also using the PerformOEE™ software to enhance and improve the production control logic and to optimise the interaction of different pieces of equipment on the line. And the company plans to use OEE as a metric to benchmark the performance of new equipment during the commissioning,

I LEAN MANUFACTURING

RCM Strategy Works For UK’s Best Loved Turkey Producer K leading turkey producer Bernard U Matthews Farms recently embarked on an extensive manufacturing improvement programme led by EMS, the Bristol-based manufacturing consultancy. EMS oversaw the RCM programme - setting the strategy; analysing the data and priorities; facilitating the change programmes;

In today’s changing food industry, where competition is constantly getting tougher, Bernard Matthews Farms aims to remain the leading UK turkey producer by ensuring its ways of working were continuously improving.

including in the process team members from senior management to shop floor operators, and transferring the skills for sustainability. Reliability Centred Manufacturing is focused on reliability which is the backbone of consistent, quality product, delivered to the customer on time and at the lowest possible manufacturing cost. The programme involves auditing of strengths and opportunities; senior management strategy workshops, design and implementation of organisation structural and behavioural change and a variety of improvement workshops using both Reliability and Lean tools and techniques. EMS specialises in Lean Manufacturing Consulting and World Class Maintenance techniques.

common objectives and goals. • 75% of maintenance tasks are now done by operators; previously - zero. • Ownership & Sustainability - A number of process champions, have taken over the ownership of the programmes and continue to roll-out the process. For further information contact EMS Ltd, Windsor House, Greville Road, Bristol BS3 1LL, UK. Tel +44 (0)117 9663516, Email infor@leanreliability.co.uk. J

Results

The results of the RCM programme at Bernard Matthews Farms are: • A measurable reduction in manufacturing costs. • An integrated manufacturing team with FOOD & DRINK BUSINESS EUROPE, APRIL/MAY 2011

“People are coming forward with new ideas all the time … we are finding hidden treasures within the production staff as well as the maintenance staff.” - Site Maintenance Manager at Bernard Matthews Farms. 41

FACTORY OPTIMISATION

REDUCE your costs whilst ELIMINATING risks – Harford users do • • • • • • • • •

Automated on-line Coding & Labelling Compliance Automated Line Set-up Automated Line Efficiency, OEE, Downtime Analysis Short Interval Control Integrated On-line/Off-line Quality Assurance Improved Operational Discipline Wastage Minimisation Reduced Materials Usage Paperless, Real Time, Prioritised, Action Orientated Information • Conformance to Plan • Full Traceability Guaranteed

Food Industry.

A whisky bottler, using the Harford system, achieved the following performance benefits: • • • • •

Conformance to Plan up from 91% to 98% Production capability increased by 21.5% Average OEE increased from 74% to 91% Customer complaints reduced by 73% Identification and quantification of 45% more supplier issues, sufficient to raise non-compliance invoices to cover lost production

Companies who already benefit from Harford include: • Diageo • Baileys • Dairy Crest • Unilever Drinks Industry. • Jeyes Free site surveys lead to • Morrison Bowmore cost effective proposals for • Gerber Juice Lean Manufacturing with • Reckitt Benckiser Total Compliance & many more

Toiletries, Household & Pharmaceutical

PROBABLY BETTER KNOWN BY THE COMPANY WE KEEP T: +44(0)1225 764461 www.harfordcontrol.com

I LEAN MANUFACTURING

Harford Control Ensures Total Compliance at Total Lowest Cost onformance to Plan, Total Compliance, Increased Output and Lowest C Manufactured Cost are the collective objectives of all manufacturers, especially suppliers to supermarkets. The UK supermarkets have taken the lead in creation of unprecedented choice for their customers, together with increased demand upon their suppliers. Naturally supermarkets demand consistently high quality standards from their suppliers, demanding totally conforming product, on time, every time, at agreed cost or less. The increased product choice, whilst good for customers and supermarkets vying for increased market share, can become a nightmare for suppliers. Increased consumer choice means, for supermarket suppliers, shorter production runs, more label and packaging changes, more clean-downs, more production downtime (product changeovers), often with no opportunity to increase prices. In addition, special promotions, dedicated delivery days, short shelf lives, order to production lead times counted in hours, and punishing ‘fines’ for failures, all adds massively to the pressure on manufacturers. These pressures have seen a high increase in the number of software companies offering systems for Overall Equipment Effectiveness (OEE); Coding & Labelling Compliance; Average Quantity Law; Quality; Labour Utilisation and so on, but in most cases, each of these companies meet only one or two of these needs.

transparency and information distribution puts his team in the best possible position to take corrective/improvement actions. Such a situation inspires trust and builds confidence across the whole business operation, thus encouraging the various business departments to pursue common improvement objectives. Competitive Edge

It is this accurate integrated information, prioritized and instantly delivered across existing networks, to those who can make best use of it, which so effectively drives performance improvement and helps give our users their competitive edge. Whilst other software/equipment suppliers concern themselves with some of these things, Harford concentrates upon the totality of fac-

The Power of Integrated Information

Food and drink manufacturers, however, faced with such demands and pressures, need to see the whole picture, in real time, automatically prioritized and displayed on their desktops, to drive performance improvement. To know, in an instant, that you are totally compliant, conforming to delivery schedules and manufacturing with optimal efficiency is very powerful. To also know the moment one or more of your KPIs starts to underperform creates the best opportunity for immediate and appropriate corrective actions. With the right tools in place, the busy manager also knows that a combination of; ultimate operational discipline, accuracy, total

tory floor performance and control, within a single turnkey solution. This includes hardware, software, integration with legacy systems, installation, training and support. Quantifiable Improvement – Case Studies

A major UK dairy chain, quick to appreciate the value of such potential, eliminated all compliance issues, reduced materials usage by £500,000 and improved OEE from 46% to 73%, all within the first full year of usage. A whisky bottler, using the same Harford

system, achieved the following performance benefits: • Conformance to Plan up from 91% to 98%. • Production capability increased by 21.5%. • Average OEE increased from 74% to 91%. • Customer complaints reduced by 73%. • Identification and quantification of 45% more supplier issues, sufficient to raise noncompliance invoices to cover lost production. Ownership & Knowledge Transfer

Harford’s experience has shown that the right tools, with appropriate training and support, will encourage an ethos of accountability and trust at all levels across all departments. This powerful combination improves efficiencies, quality and conformance to plan, whilst reducing wastage, stock levels and energy usage, leading to reduced costs and increased profit. Where Harford’s solutions are installed, the cultural change engendered by total transparency, accuracy and relevance of information, together with the appropriate levels of support, ensures that continuous improvement is enthusiastically embraced. So much so that Harford often hears factory floor personnel ask ‘can it do this?’ or ‘could it also help us with that?’ With such high levels of buy-in, the change in attitudes is palpable. The old blame culture falls away and gives rise to a new era of mutual trust, which encourages the development of further opportunities for improvement. So many of Harford’s users, including Diageo, Dairy Crest, Unilever, Jeyes, Reckitt Benckiser, Morrison Bowmore, Gerber Juice and Avon Cosmetics, to mention just a few, have already gained enormous benefits through the implementation of Harford solutions, coupled with its on-going support structure. If Consistently Delivered Total Lowest Manufactured Cost is amongst your objectives, and you would like to see quantifiable business improvements within just a few months of installation, then visit the Harford website www.harfordcontrol.com and call the company’s Business Improvement Team on +44 (0)1225 764461. J

FOOD & DRINK BUSINESS EUROPE, APRIL/MAY 2011

I EXHIBITION

Anuga 2011 – Large Number of Registrations From Germany and Abroad ll the signals are pointing to success for the coming Anuga, which will take place from 8th to 12th October 2011 in A Cologne. All ten of the event’s trade shows are posting very strong demand. The trade fair halls are already almost booked out - six months before the event opens. A particularly exciting element this year is Anuga's partner country for 2011 - Italy. In addition, the continually growing food service and catering market is being much more strongly emphasised within Anuga through the new trade show Anuga FoodService, a concept that is generating a very positive response among exhibitors and partner associations alike. The new layout of the trade show Anuga Chilled & Fresh Food is also popular with the suppliers. “Anuga is once again demonstrating that it is changing with the market and is thus fully exploiting its great innovation potential for the benefit of the exhibitors and visitors,“ reports Peter Grothues, Vice President Food, Technology & Environment at Koelnmesse. “We are looking forward to the coming fair with lots of optimism.“ Anuga will occupy the entire Cologne exhibition centre - a total of 284,000 sq m of gross exhibition space in eleven halls, including some with more than one level. J

Anuga, the world's most important food and beverage trade fair, will take place from 8th to 12th October 2011 in Cologne.

FOOD & DRINK BUSINESS EUROPE, APRIL/MAY 2011

I ENTERPRISE RESOURCE PLANNING

LEAF Selects Lawson M3 10.1 awson Software, a global vendor of L enterprise resource planning (ERP) software, has announced that European confectionery manufacturer LEAF International has licensed the current version of the Lawson M3 Enterprise Management System 10.1. LEAF selected the Lawson ERP system to help support its operating and business initiatives LEAF International is a leader in candy, pastilles and chewing gum in the Nordics, the Netherlands, Belgium and Italy. In total LEAF products are sold in more than 50 countries worldwide, among them strong heritage brands such as Lakerol, Red Band, Sportlife, Malaco, Jenkki, Saila, Ahlgren bilar, Venco and Sperlari. The company has 2,500 employees and 11 production sites in Holland, Belgium, Sweden, Slovakia, Denmark, Finland and Italy. “We chose Lawson because we felt a great cultural fit between our organisations

and we are convinced that the industryspecific features and numerous enhancements of Lawson M3 10.1 will meet our industry-specific requirements and help us to realise our IT strategy in the short and long term,” comments Danko Maras, CFO for LEAF. “In our evaluation process Lawson has shown to us with strong customer references in the food industry that they know the food and beverage industry and have a deep understanding of industry best practices and the need for industryspecific functionality.” Lawson M3 10.1, the latest version of the enterprise management system, was released in spring 2010 and includes specific features to help food and beverage manufacturing and distribution companies efficiently plan their supply chain resources

and reduce the time, cost and risks associated with bringing their products to market. The Lawson Smart Office user interface is designed to help customers enhance user productivity. It allows users to personalise their information workplace and bring together enterprise applications, business intelligence, desktop tools and group collaboration. “LEAF’s decision to implement Lawson M3 10.1 is a commitment to our ability to deliver food companies flexible and comprehensive solutions that support their business objectives now and for the future,” says Frederic Champalbert, general manager Food & Beverage industries for Lawson. “More than 400 food and beverage customers are using currently proven solutions from Lawson and we are proud to welcome LEAF as an important new customer. We are looking forward to continuing our relationship with LEAF to help it to further improve its competitive edge,” J

I ENERGY RECOVERY

Spirax Sarco Helps Heinz Save 473 tonnes of Carbon a Year einz is saving 6% of its average H steam load per year at its baked bean factory in Wigan by recovering energy from effluent using a system designed and built by Spirax Sarco. Cooking Heinz Beanz begins by blanching the raw haricot beans in hot water. Starches and sugars leach from the beans into the water and agricultural residues are washed off. The blanching water must be purged regularly to maintain the necessary quality. Before the new system was installed, the purged hot water was disposed of to drain, but the Spirax Sarco system now intercepts it and uses it to help heat the blanching process. The system recovers around 1,500kW.

“It’s been in place for 18 months now and we are seeing excellent results from the heat recovery,” says Barry Aspey, environmental

compliance manager for Heinz. The filtered effluent is passed to one of two heat exchangers, which use its energy to pre-heat the blanching make-up water, cooling the effluent in the process. The make-up water then passes through another exchanger, which uses steam to raise its temperature before entering the blanching vessel. The vessel itself is maintained at an optimum temperature by injecting live steam. The Heinz factory in Wigan is the largest food factory in Europe. The 55-acre site produces canned soups, baked beans, pasta and puddings for the UK and European market, and its on-site energy centre generates up to 140 tonnes of steam per hour to keep the canning lines running. J

FOOD & DRINK BUSINESS EUROPE, APRIL/MAY 2011

I BAKERY

Kingsmill Powers Allied Bakeries British bakery group Allied Bakeries is continuing to achieve volume and market share increases with its flagship Kingsmill bread brand although margins have come under pressure from the continued rise of wheat costs. llied Bakeries operates across the UK, baking and selling An extensive range of branded and non branded bakery products including bread, rolls, crumpets and muffins. The company has a wide customer base and in addition to Kingsmill, which is a top 10 UK grocery brand, the portfolio includes other well-known household brand names such as Allinson, Burgen and Sunblest. Allied Bakeries has a turnover of more than £400 million. Kingsmill was originally introduced in 1988 but relaunched in February 2007 with new positioning, packaging, product range, sub brands and new product development. Kingsmill is currently the UK’s fastest growing bread brand and has a retail value of over £340 million, selling about 8.5 million loaves a week. The aim for the Kingsmill brand is to be ‘Britain’s most loved family bread brand’. Allied Bakeries is owned by Associated British Foods, the international food, sugar, ingredients and textile retail group with annual sales of more than £8 billion. Allied Bakeries is part of ABF’s Allied Milling and Baking division which also comprises Allied Mills, Speedibake and Patak's Breads. Allied Bakeries is able to benefit from vertical integration by sourcing its flour from sister company Allied Mills, which is the UK’s leading flour miller.

UK Bakery Market Allied Bakeries is one of the UK’s ‘big three’ plant bakeries, which specialise in

producting wrapped bread on a large scale. Three quarters of all the bread consumed in the UK is wrapped and sliced. Allied Bakeries along with British Bakeries (part of Premier Foods) and Warburtons account for almost 75% of the UK bread market by value. The UK bread and bakery products market is mature and nearing saturation, which means that continual investment in new product development is necessary to retain consumer interest and loyalty. New Product Development Allied Bakeries’ biggest new product development in recent times has been the introduction of the Little Big Loaf to extend the Kingsmill brand. Launched in August 2009, the Little Big Loaf is a new format for the bread industry and became the only loaf on the market offering full size slices but in a smaller size 525g version aimed at the increasing number of smaller households. The smaller loaf concept has been introduced across the Kingsmill range and has

shaken up the £2.9 billion UK plant bread category. Kingsmill’s Little Big Loaf received Sainsbury’s ‘branded new product of the year award’ for 2010. Allied Bakeries has enjoyed considerable success with its Little Big Loaf, which contributed to the increase in Kingsmill’s volume and market share last year. However, the UK bread market remains very competitive with high levels of promotional activity. Although margins showed improvement in its 2009/10 financial year, Allied Bakeries expects that the much higher wheat costs seen towards the end of the year will put pressure on margins for 2010/11. Sustainability Allied Bakeries is continuing to invest in the environment and its commitment to carbon reduction has resulted in the introduction of aerodynamically designed, lightweight trucks that use less fuel and reduce carbon and other engine exhaust emissions. In 2009, Allied Bakeries became the first bread manufacturer to use the Carbon Trust’s Carbon reduction label, which appeared on the Kingsmill brand’s three best selling loaves. The company has just announced that it is introducing 100% recycled packaging on its Kingsmill Little Big Loaf and Crusts Away range. Allied Bakeries will now be able to recycle its packaging off-cuts to produce new bread bags and so reduce packaging waste. J

I PROCESSING

Pressure, Temperature and Electrical Instrumentation -T Instruments was formed in 1999 to supply, repair and calibrate a wide selection of A Pressure, Temperature and Electrical instrumentation. The company provides an on-site service to certify items that are not easily removed such as panel meters, level indicators and transmitters. Its in-house calibration laboratory can provide Traceable Certification and turn around items in 2-3 days (quicker if required). Full UKAS Certificates can also be provided via an accredited laboratory. A-T Instruments is the distributor or reseller for many major instrument manufacturers such as GE Druck, Eurotherm, ETI Ltd, Comark and many others. A-T Instruments’ website www.a-tinstruments.co.uk - is constantly being updated with new instruments and services. For further information contact A-T Instruments Ltd, 1 Banc Yr Afon, Gwaelod Y Garth, Cardiff, CF15 9TU. Tel 029 2081 0597, Fax 0871 9712141. J 46

FOOD & DRINK BUSINESS EUROPE, APRIL/MAY 2011

Packaging Solutions That Protect, Preserve and Promote art of British Polythene Industries, P bpi.consumer is a leading UK printer and converter of food packaging. Operating from the country’s biggest single site flexographic printing facility the business specialises in providing packaging solutions that protect, preserve and promote food and drink products – be they fresh produce, liquids, bakery goods or frozen foods. With decades of experience across a diverse range of sectors, the expert team at bpi.consumer fully understand sector-specific challenges and how best to address them. Evidence of this insight can be found in bpi.consumer’s wide range of valueadded products that help producers maximise sales through reduced spoilage, enhanced shelf life and improved product presentation. Manufacturing to the hygiene assured standards demanded by BRC certification; the company also offers the production capacity and flexibility necessary to accommodate short run and quick turnaround orders for seasonal or other sale promotions. Bpi.consumer provides a one stop shop for packaging created from many of the diverse substrates available today. Its exper-

Brian

Taylor,

business

director

bpi.consumer, congratulates Chris Duffy, bpi.consumer print manager, on the recent Award wins.

tise and product range encompasses everything from packaging made from PET and BOPP to that created from CPP and paper. With the state-of-the-art printing technology available to it bpi.consumer can produce packaging with maximum on-shelf impact for today’s competitive retail environment. The business regularly invests back into its operations to ensure it remains at the industry’s leading edge. Recent acquisitions include two, state-of-the-art, 10 colour presses, a next generation laminator which can laminate without the use of solvents and the latest laser technology for the pro-

duction of enhanced MAP packaging. Committed to providing more sustainable packaging solutions bpi.consumer’s range includes 100% recyclable films and compostable products. It also has considerable expertise in film downgauging. Downgauged films offer all the strength, protection and performance of conventional products but from a considerably reduced film profile. This reduced profile means that less film is used by volume resulting in less packaging waste. In addition to producing greener products, the business employs solventless printing technology during the plate making process thereby eliminating ozone damaging Volatile Organic Compounds (VOCs) from this process. Bpi.consumer recently had its technical expertise publicly recognised when it won three awards at the EFIA (European Flexographic Industry Association) Annual Print Awards. In addition to winning the Gold Award in the Technical Achievement category and the Silver Award in the Wide Web Line & Screen category bpi.consumer picked up a Highly Commended citation for design. J

FOOD & DRINK BUSINESS EUROPE, APRIL/MAY 2011

I NUTRACEUTICALS & DIETARY SUPPLEMENTS

Vitafoods Europe and Finished Products Expo Make Their Return ith the global nutrition industry currently worth an estimated Eur117 billion, it is no surprise that Vitafoods Europe and Finished Products Expo [FPE] are growing rapidly year-on-year. And 2011 looks set to continue this trend, as the leading nutraceutical and dietary supplement events make their return to Geneva Palexpo from 10-12 May 2011 with more exhibitors and visitors than ever before. Leading nutraceutical, functional food and drink ingredient suppliers such as DSM, Cognis, Croda, Naturex, Frutarom and Glanbia Nutritionals will join a host of first-time exhibitors in presenting their lat-

benefit from sessions tailored to any aspect of their business including regulations, strategy, labeling and claims.

est innovations and extensive product ranges to an audience expected to top 8,500 at Vitafoods Europe. Sister show, Finished Products Expo which also enjoyed one of its most successful editions ever in 2010, is hoping to build on the autonomy and status it achieved last year to draw in over 2,500 attendees. More than 100 companies will showcase their latest innovative functional food and drink products including Zuccari, Nutribio, VSI, Aromtech, Friesland Campina Creamy Creation, Medex and NOW International, all sure to catch the attention of the event’s high profile visitors. Event director Chris Lee comments: “Although we had successful shows last year we’re certainly not resting on our laurels. We’re channelling our energies into coming up with new and different ideas to ensure that the shows remain fresh and current. “We are working very closely with key industry figures including members of our Steering Committee, Leatherhead Food Research and our media supporters to put together the most informative and captivat48

ing visitor programme that will appeal to the ever-evolving nutraceutical and dietary supplement industries.” Vitafoods Europe Conference The Vitafoods Europe Conference has built an international reputation within the nutraceuticals industry as a high-quality platform, which delivers a programme covering the hottest topics and themes in ingredients. Organised by Leatherhead Food Research, this year’s programme will focus on a number of brand new themes, including Food Allergy & Intolerance, Beauty Foods and Ingredients from Nature as well as previously popular topics such as Appetite Control, Gut Health, Mental Health and Physical Performance to name a few. High profile speakers from leading global universities, academies, research houses and organisations will come together throughout the event to equip delegates with the knowledge to help them build their business for the future. Also offering visitors an insight into the latest research, innovations and services will be the Supplier Seminars whilst the New Products Zone will highlight the very latest innovative products on the market. What’s more, VitaTrend will bring together the latest, exciting trends and themes on nutraceuticals and functional foods in several presentations to visitors. EAS will once again play a key role in the show, hosting the Discussion Forum on the third morning [Thursday 12 May]. Entitled ‘Top 10 opportunities and challenges for bringing functional foods to market in the next decade’, the forum will provoke another exciting debate when it returns to Geneva Palexpo. EAS will also be offering FREE oneon-one sessions from its experts, meaning visitors can

Nutraceutical Business & Technology Awards New to the show this year will be The Nutraceutical Business & Technology Awards (NBTAs), which recognise excellence in R&D, marketing, business and technology in the areas of ingredients, finished products, applications and business practices. Finished Products Expo will host its own dedicated features including the everbuzzing Tasting Bar @ FPE, which offers visitors the opportunity to sample the latest innovations in the functional food and drinks market and establish the next big product to hit the market. The New Products Zone will also showcase revolutionary developments launched within the last 12 months. Attendees to FPE will also be able to benefit once again from the Distributors Wanted online matchmaking scheme, connecting exhibitors with new distribution partners before and during the show. Chris Lee concludes: “There’s a real buzz in the industry about both shows this year. We certainly set our stall out in 2010 and are doing everything we can to replicate and build on that success to make sure Vitafoods Europe and FPE are once again the must-attend shows in everyone’s diaries for 2011.” For further details about Vitafoods Europe and Finished Products Expo, visit www.vitafoods.eu.com or www.finishedproductsexpo.com. To hear about the latest show news or take part in the industry debate, join the Linkedin groups www.vitafoods.eu.com/linkedin or www.finishedproductsexpo.com/linkedin. J

FOOD & DRINK BUSINESS EUROPE, APRIL/MAY 2011

Congra to Nes tulations 75th A tle on the nniv of Kit ersar y Kat!