Food and Drink Business Europe by Colin Murphy

May 2012

Challenging times for SABMiller Europe

Food & Drink Business Website:

www.fdbusiness.com

C o n t e n t s

- 3 C OVER S TORY

- 34 M ARKET F OCUS

Challenging times for SABMiller Europe.

£2.4 billion UK cider market is ripe for further development. P AGE 25

- 7 B OTTLED W ATER

PAGE 3

Nestle Waters’ new Buxton facility comes on stream.

Alan Clarke, md, SABMiller Europe.

- 35 N EW P RODUCT D EVELOPMENT

Peder Tuborgh, ceo, Arla Foods.

Own label food and drink NPD overtook branded for the first time in 2011.

UK soft drinks industry exhibits solid growth.

R EGULARS - 10 C APITAL P ROJECTS

Bottling & Packaging . . . . 9, 18, 22, 29-34 Palletising & Depalletising. . . . . . . . . . . . . . . . . . . 31-33

Nestle strengthens Nespresso with €250 million investment. Danish Crown to build new cattle slaughterhouse.

Processing & Manufacturing . . 11-15, 23, 45 PAGE 5

Project Management & Design. . . . . . . . . . . . . . . . 12-15

Sue Clark, md designate, SABMiller Europe.

Quality & Safety . . . . . . . . . . . . . . . . . . 37

- 17 B ISCUITS & S NACKS

Energy & Environment . . . . . . . . . . . 46-48

- 19 S OFT D RINKS

PAGE 27

Neil Kennedy, ceo, Milk Link.

Managing Director: Colin Murphy Editor: Mike Rohan Sales Director: Ronan McGlade Advertising: Susan Doyle, Neela Desai, Kieran Kenny. Senior Sales Executive: Paul Lees

Profits fall but Britvic shows resilience.

Production Manager: Susan Doyle

PAGE 17

- 21 D ISTILLING

Lyndon Lea, partner, Lion Capital.

Maximise your productivity with BUCHI’s latest innovation.

Materials & Ingredients . . . . . . . . . . . . 39-43

Strong brands fortify United Biscuits.

PAGE 27

Benoit Testard, ceo, United Biscuits.

Edrington benefits from growing thirst for Scotch.

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.fdbusiness.com London Office: Premier Publishing Limited, CTS, 34 Leadenhall Street, London, EC3A 1AT Tel: 0171 247 3238 Fax: 0171 247 3239 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!

Scotch whisky exports surge to record levels.

- 35 M ERGERS & A CQUISITIONS

PAGE 19

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FOOD & DRINK BUSINESS EUROPE, MAY 2012

COVER STORY

Challenging Times For SABMiller Europe Although now diminished in scale, SABMiller’s European business will continue to play a crucial role in supporting the international development of the world’s second biggest brewer.

research. Furthermore, SABMiller has its primary listing on the London Stock Exchange.

ABMiller (formerly South African Breweries) started its diversification into Europe 22 years ago and, through a combination of acquisitions and organic growth, has established a substantial beer empire. SABMiller Europe has focused on developing a strong presence in the developing markets of Central and Eastern Europe, it has also made substantial acquisitions in Western Europe in Italy and The Netherlands. SABMiller Europe currently operates 18 breweries in eight countries - Czech Republic (3 breweries), Hungary (1), Italy (3), Poland (3), Romania (4), Slovakia (1), Spain (Canary Islands - 2) and The Netherlands (1). It is the first or second ranked brewer by market share in the majority of these countries. SABMiller Europe Alan Clarke, managing also exports significant volumes to other Europe. beer markets in Europe, of which the largest are the UK and Germany, and to other regions of the world. Europe is home to three of SABMiller’s four international premium beers - Pilsner Urquell, Peroni Nastro Azzurro and Grolsch. US beer brand Miller Genuine is the fourth. SABMiller Europe also owns a number of the leading regional brands in its core markets. These include Tyskie, Lech, Ursus and Gambrinus. Europe is one of six continents where SABMiller has brewing interests and distribution agreements. Although it has no production units in the UK, SABMiller Europe recently opened a new £3 million research brewery at the University of Nottingham, putting England at heart of its global brewing

Empire Building SABMiller entered Europe for the first time in 1990 following the purchase of Compania Cervecera de Canarias (CCC) in the Canary Islands. Hungary's largest brewery, Dreher, was acquired in 1993 to provide a beachhead into central Europe. Two years later, SABMiller moved into Poland with the purchase of a majority stake in Lech Browary Wielkopolski, and in 1996 entered the Romanian market with the purchase of the Vultural, Ursus and Pitber breweries. In 1997, SABMiller acquired a majority director of SABMiller interest in Pivovar Saris in Slovakia and in 1998 acquired the partially completed Kaluga Brewery, 112 miles southwest of Moscow to establish a presence in Russia. SABMiller became the leading brewer in the Czech Republic in 1999 by buying a controlling interest in Pilsner Urquell and Radegast. SABMiller’s first significant acquisition in Western Europe came in 2003 with the purchase of Italian brewer Birra Peroni. In 2008, SABMiller completed the acquisition of Dutch brewer Grolsch and also entered the Ukrainian beer market. By 2010, SABMiller Europe was producing 43 million hl of beer (equivalent to about 9% of the total European beer production) in 21 breweries located across Europe. Domestic sales of SABMiller beers in the ten countries where its breweries were

SABMiller became the leading brewer in the Czech Republic in 1999 by buying

SABMiller’s first significant acquisition in Western Europe came in 2003 with the

a controlling interest in Pilsner Urquell and Radegast.

purchase of Italian brewer Birra Peroni.

FOOD & DRINK BUSINESS EUROPE, MAY 2012

located amounted to 41 million hl with sales of Eur8.4 billion. Market Leadership “The thing that has made us perform over the past many years is the fact that we have a stronghold in the beer heartland in the majority of the markets in which we operate. So typically you will find that we have the leading mainstream brand in those markets and also have the leading local premium brand and the combination of those two gives us the scale advantage and the portfolio advantage with the trade and with consumers to be successful,” explains Alan Clarke, managing director of SABMiller Europe. “That portfolio differentiation is one of the things that make us stand out.” He adds: “The European operations are typically operated at a high level of efficiency, so we have had good productivity from out operations and that has helped us to have superior margins in the countries in which we operate.” Another key strength is SABMiller Europe’s control of the route to market. “We have a very good understanding of how our brands reach the consumer and how to manage that to the most advantage,” he remarks.

The enlarged Anadolu Efes now has a strong number two position in the Russian beer market and is expected to yield significant cost synergies of at least $120 million per year.

SABMiller has already adopted a similar joint venture approach to develop its business in the US and Africa as it continues to expand its global footprint.

In 2008, SABMiller completed the acquisition of Dutch brewer Grolsch.

Alan Clark has been head of SABMiller Europe since 2003, having joined South African Breweries in 1990 as training and development manager. In July, Alan Clarke will become chief operating officer of SABMiller and will then succeed Graham Mackay as chief executive in 2013.

Financial Performance In the year ended 31 March 2012, SABMiller Europe reported a 6% drop (9% on an organic, constant currency basis) in EBITA to Eur836 million on revenue up 2% to $5.48 billion as profit margins slipped from 16.4% to 15.3%. EBITA was impacted by significant increases in raw material costs, although the group’s global procurement and regional manufacturing projects continued to deliver mitigating cost efficiencies. Lager volumes fell by 1% on an organic basis to 43.1 million hl. The financial performance in Poland and Romania was impacted by volume declines, adverse sales mix as a result of consumer down-trading and discounting, as well as planned destocking in by wholesalers. SABMiller Europe’s other markets in the region generally saw stronger financial performances, helped by good growth in the super premium and premium segments, and selective brand and product innovations. Marketing expenditure was marginally below the prior year which included the 2010 FIFA World Cup activations.

Joint Venture Approach Change in Focus However, SABMiller Europe has just been reduced in scale and geographi- The promotion to his new roles will entail a change in focus for Alan cal reach following the disposal of its operations in Clark as he oversees SABMiller’s continual Russia and Ukraine after forming a strategic expansion in emerging markets while it conalliance with Anadolu Group and Anadolu Efes. solidates its position in developed markets. The deal, which was completed in March 2012, In emerging markets of the world, “the entailed exchanging SABMiller’s Russia and focus of the beer industry is going to be very Ukraine beer businesses for a 24% equity stake in much on growing absolute volume of beer,” the enlarged Anadolu Efes group. Anadolu Efes is he says. “So in emerging markets we will be now the vehicle for both groups’ investments in focusing ourselves on the basics of the indusTurkey, Russia, the CIS, Central Asia and the try – on getting capacities in place, getting Middle East. distribution in place, growing brands – getting all these fundamentals of the market in SABMiller's Russia and Ukraine subsidiaries place – to stimulate the growth of the marreported beer volumes of 6.9 million hl, net sales ket, and the countries’ economic developof $678 million and generated EBITDA of $149 ment.” million in 2011. The two businesses have an enterAlan Clark elaborates: “In Europe the situprise value of about $1.9 billion. ation is quite different. Beer markets – counThe enlarged Anadolu Efes now has a strong try by country – are consolidated. Three or number two position in the Russian beer market four players typically control 85% to 90% of with a highly attractive brand portfolio and is the beer volume already. The second thing is expected to yield significant cost synergies of at that beer per capita consumption is relatively least $120 million per year, and provide additional high in Europe. So, whereas in the emerging revenue synergy opportunities. Anadolu Efes enjoys leading market position in Turkey with Sue Clark will succeed Alan Clark as managing markets it is going to be about growth, in 89% share of the beer market and a 69% share of director of SABMiller Europe in July 2012. She Europe it is going to be about fight for marthe carbonated soft drinks market. It also has lead- joined SABMiller in 2003 as director of corporate ket share. So competition is going to be very ing market positions in the growth beer markets of affairs and as a member of the group executive tough. We are going to see a lot more innovacommittee. tion in the beer category.” J Kazakhstan, Moldova and Georgia. FOOD & DRINK BUSINESS EUROPE, MAY 2012

I BOTTLED WATER

Nestle Waters’ New Buxton Facility Comes on Stream Nestle Waters UK has started production at its new £35 million state-of-the-art factory in Derbyshire, which has been designed to allow the company to increase capacity, efficiency and environmental performance. ottling the Buxton Natural Mineral Water and Nestle Pure Life brands, the factory is one of Europe’s most innovative and efficient bottling facilities. Located at Waterswallows in Buxton, the new 24,200 sq m factory combines, for the first time, the bottling facility with warehousing capability, with the new lines allowing Nestle Waters UK to significantly reduce its total energy output, as well as the packaging used in its bottles. Operating from a single production site, Nestle Waters UK employs 140 people and has a total value market share of 20.5% (share of total plain water YTD 31 Dec 2011) up from 19.3% a year ago, making the company the fastest growing branded player in the category. Nestle Pure Life consolidated is the fastest growing bottled water brand, while Buxton Mineral Water is the UK’s leading local mineral water with a value share of 11.9%. The total UK bottled water market increased by 2.1% in 2011 to reach 2,099 million litres (source Zenith International). Nestle Waters UK grew ahead of the market in volume terms at around 6%.

World Leader The UK business is part of Nestle Waters, the world’s biggest bottled water company with operations in 160 countries and a portfolio of 72 different brands. In addi-

Located at Waterswallows in Buxton, the new 24,200 sq m factory combines, for the first time,

tion to bottling Buxton Natural Mineral Water and Nestle Pure Life, Nestle Waters UK also imports the Perrier and San Pellegrino brands. “80% of the water we sell in the UK is either Buxton or Nestle Pure Life which have seen more than 13% year on year growth,” points out James Mahon, factory engineering manager at Nestle Waters Buxton.

The new lines allow Nestle Waters UK to significantly reduce its total energy output, as well

Improving Efficiency and Environmental Performance “The new factory is the culmination of many years of research and development and will enable Nestle Waters to increase capacity, efficiency and environmental performance,” James Mahon continues. “We are expecting the facility to gain an Excellent for BREEAM accreditation which takes into consideration the site’s energy and water use, its transport infrastructure and its ecology. By having both the bottling and warehousing facilities located on the same site increases efficiency.” The new factory incorporates a specially designed heat recovery system using heat generated by the bottling lines to heat the

as the packaging used in its bottles.

offices and warehouse which will also reduce carbon output in the coming years. The new U-shaped production lines help to eliminate waste and improve quality and safety. Energy efficient lighting has been used throughout the site. “We are aiming to reduce energy consumption by around 20%,” he remarks. The new factory has been designed to harmonise with the local environment and features classic recycled Derbyshire dry stone walls, which are used to reinstate field patterns and define site boundaries. An attractive, wave-shaped roof enhances the buildings’ visual appeal and a sustainable drainage system manages the rain

UK Soft Drinks Industry Exhibits Solid Growth The soft drinks industry grew in value by 5.1% in 2011 to more than £14.5 billion, according to the 2012 UK Soft Drinks Report. Published by the British Soft Drinks Association, with data from Zenith International, the report also reveals that consumption grew by 0.7% to reach more than 14.6 billion litres, or 253.3 litres per person. Bottled water consumption rose by 2.2% to reach 33.6 litres per person. Carbonates consumption grew by 4.1%, of which 38% is now diet, low calorie or no added sugar. Dilutables retail value increased by 3.7% in 2011 to reach £945 million. Fruit juice and smoothies grew in retail value by 4.2% to reach £1.8 billion, and with a volume of 1160 million litres provided 124 servings of fruit juice per person. Still and juice drinks consumption increased by 1.2% to 1.47 billion litres. The market for sports and energy drinks grew by 10% last year to 660 million litres. The report has the title ‘Long-term commitment for long-term success’ and showcases examples of achievement in the soft drinks industry over the past 100 years and also in the past year.

the bottling facility with warehousing capability.

FOOD & DRINK BUSINESS EUROPE, MAY 2012

Nestle Waters is the world’s biggest bottled water company with operations in 160 countries and a portfolio of 72 different brands.

water that runs off from the new site, helping to control flooding and recharge groundwater. Reduction in Packaging The start of production at the new factory has also coincided with the launch of an innovative lightweight range of bottles. These new containers are the lightest bottled water bottles produced in the UK and have a shorter neck and a sturdy, ergonomical shape that requires less plastic and fits comfortably in the hand. The bottle redesign has allowed Nestle Waters to achieve an average 25% reduction in the use of PET in its production with a 46% reduction in PET for the smaller 25cl and

33cl bottles. Further packaging innovation by Nestle Waters includes the launch of a new sports cap that incorporates a tamper evident seal that stays within the lid when opened. The new sports cap will be available on the Buxton Natural Mineral Water 25cl, 75cl and 1ltr formats and the Nestle Pure Life 33cl formats. “We have also been able to reduce the amount of plastic used in shrink wrap enabling less to be used more effectively and all trays are made from biodegradable and recyclable cardboard. We will be zero waste to landfill by the end of this year,” James Mahon points out. Nestle is a big employer in the area and the local community was kept in mind when tendering for the new factory. The construction company was tasked with sourcing both procurement and labour from a tight circumference of the building site, ensuring contractors and materials would not have far to travel and more importantly adding a boost for the local community and employment. By the end of February 67% of the labour on site was from within the area and 76% of the materials had been purchased within a 50-mile radius.

FOOD & DRINK BUSINESS EUROPE, MAY 2012

Benefiting From Market Trends With its locally bottled Buxton Natural Mineral Water and Nestle Pure Life brands, Nestle Waters UK is benefiting from increased consumption of UK produced waters, while imported brands are in decline. James Mahon comments: “Nestle Waters is well placed with Buxton to respond to the consumer demand for ‘local’ brands with the role of ‘provenance’ becoming more significant to UK shoppers and retailers. Whilst, Nestle Pure life is well placed to help shoppers manage their ‘family’ grocery budget, with the continued slowdown trend on discretionary spending.” Another feature of the UK bottled water market is that small pack formats are continuing to drive the retail category growth in both the plain still and sparkling sectors. “Nestle Pure Life’s 12 500ml and 10 33cl packs were very important to driving growth in the single serve multi-packs sector in 2010 and 2011. Small pack format innovation from Buxton and San Pellegrino in 2012 will help to drive the ‘on the move’ consumption, which will continue to be a key driver for the bottled water category,” he adds. J

New OCME Packers Proving to be a Great Success ith eight UK installations already completed since the start W of 2012, OCME is finding its new range of VEGA HT Shrinkwrap Packers a great success. The company’s UK customers seem to really appreciate the benefits offered by the latest machines; particularly features such as automatic size changeover, automatic guide adjustment and the energy saving heat tunnels. Due to the modular design concept, with the extensive use of servo drives, OCME has managed to reduce the raw materials used in manufacture, shorten delivery times and reduce the time needed for installation and start-up in production. The Vega HT models offer easy size changeovers – in most cases, without the need for tools or change-parts. The mechanical adjustments typically found on these types of machine are replaced by motorized adjustments, even when changing the bottle diameter and packaging configuration. There is also improved

operator and maintenance access via full vision sliding safety guards and a new touch screen HMI which provides the operator with all the necessary information to run the machine. The same design concepts are applied across OCME’s range of Altair wraparound case packers and its Gemini ‘combi’ packers – machines that can produce both cases and shrinkwrapped trays. The Vega HT is available in versions to run with film only, film + pad and film + tray at speeds of 40 to 150 cycles per minute. For film multi-packing applications, the machines can run in one, two or 3 lanes, to reach speeds of up to 450 packs per minute. OCME also manufactures depalletisers, palletisers (conventional and robotic), beverage fillers, laser guided vehicles and conveyor handling systems. For further details please contact OCME UK Ltd, King John House, Kingsclere Park, Kingsclere, Newbury RG20 4SW – Tel 01635 298171 – sales@ocme.co.uk – or visit www.ocme.com. J FOOD & DRINK BUSINESS EUROPE, MAY 2012

I CAPITAL PROJECTS

Nestle Strengthens Nespresso With €250 Million Investment estle is strengthening its premium porN tioned coffee brand Nespresso by investing SFr300 million (Eur250 million) to meet growing consumer demand worldwide. The company is to build a new factory in Romont in the Swiss canton of Fribourg to increase coffee capsule production. Nespresso’s third production site will boost employment in the region, creating 400 new direct jobs in the long term. It is the latest multi-million Swiss Franc investment that Nestle has made in Nespresso in the last three years. SFr300 million was invested to build Nespresso’s second production and distribution centre in Avenches, Switzerland, in 2009. “Some 25 years after creating the portioned coffee segment, the third Nespresso production centre will provide the capacity needed to sustain growth in Europe and develop our brand globally,” says Patrice Bula, executive vice president for Nestle,

responsible for the Strategic Business Units, Marketing, Sales and Nespresso. Construction of the factory is due to begin before the end of the year. It will be operational by 2015. As part of Nestle’s

continued effort to construct more environmentally friendly buildings worldwide, the new factory in Romont will use renewable energy produced by its coffee roasting technology to heat the building. J

Danish Crown to Build New Cattle Slaughterhouse anish Crown, Europe´s largest meat D processing company, plans to construct a new cattle slaughterhouse at Holsted in Denmark at a cost of DKr 0.5 billion (Eur67 million). The biggest single investment in the cattle sector ever in Denmark, this will be the first large cattle slaughterhouse to be established in the country for almost four decades. Entailing the creation of about 300 new jobs, the slaughterhouse is based on state-of-the-art principles, paving the way for optimising quality control pro-

be competitive. The new cattle slaughterhouse will secure us that position,” says Lorenz Hansen, division director of DC Beef. As a result of the establishment of the new cattle slaughterhouse in Denmark, Danish Crown will be closing down the cattle slaughterhouses in Tonder and Holstebro,

New Irish Whiskey Distillery For Belfast new £5 million distillery with a visitor A centre and restaurant will be established in Belfast at the old Crumlin Road prison

cedures, including better utilisation of byproducts and, ultimately, better meat quality. ”We have for several years reaped the benefits of investing in a top modern slaughterhouse in the Pork Division, and when looking at the upward trend in production costs in the Danish slaughterhouse industry, we have to be at the technological forefront to 10

and the deboning departments in Skjern and Farvang will move to the new, modern slaughterhouse. The slaughterhouse is expected to be ready at the beginning of 2014, but DC Beef expects to be able to relocate its head office to the new premises in autumn 2013. J

by Belfast Distillery Company. The Victorian jail building has been acquired from the Northern Ireland Executive by BDC, which plans to develop a small distillery in the A wing of the prison. Established in January 2011 by Peter Lavery, Belfast Distillery Company has developed two Irish whiskey brands Titanic and Danny Boy – which are currently being produced at Cooley Distillery in the Republic of Ireland. “The existing form of the A Wing in the gaol is ideally suited to this new use without compromise to the character or to the architectural and historic interest of this FOOD & DRINK BUSINESS EUROPE, MAY 2012

Grade A listed building,” says Peter Lavery. “The BDC will be the first distillery to operate in Belfast for over 75 years and will be bringing back to prominence an industry with which the city has long historical associations. I'm delighted that we will be able to bring the production of Titanic and Danny Boy whiskeys home to Belfast.” J

Looking to the Future – Buhler’s Bakery Innovation Center ith its Bakery Innovation Center in W Uzwil, Buhler is offering its customers a future-oriented service. The new center of competence with its state-of-the-art technology is available to innovative grain millers for developing their new products. Food production is subject to very high dynamism worldwide. Demand and supply are changing continuously. But consumers want ever-new products – and quality, health, convenience, and food safety are the drivers behind this trend. Innovative grain millers are therefore seeking ways and means to differentiate themselves on the basis of specialty flours. As a global leader and partner in the field of process technology, Buhler is faced with the challenge of showing modern-day millers and bakers sustainable solutions to optimize the quality and characteristics of their flours

in order to satisfy their customers. For this purpose, the Bakery Innovation Center (BIC), which was opened in Uzwil at the end of 2010, offers new application concepts in conjunction with cutting-edge process technologies. The customized solutions developed in the BIC comprise all the steps from raw materials checking to the perfectly processed end product. The BIC is also available to customers as a neutral facility for their own developments. Beside targeted product and process developments, the BIC also offers training courses and supplements the flour milling courses of Buhler with its bakery-specific subjects. In addition, the BIC holds in-house continuing education courses in order to disseminate existing knowledge throughout the group. J

Peter C. Bohni (left), head of Nutrition Solutions, and Matthias Furrer, head of the Bakery Innovation Center of Buhler.

Riggs Autopack – Manufacturers of Depositors and Filling Machines iggs Autopack manufacture high quality R depositors, filling machines, transfer pumps and conveyor filling lines, for the

food production industry. Established in the 1930’s, they supply food producers of varied type and size with clients typically ranging from start-up companies and cottage industries, through to multi-national and international factories. Over the years, Riggs Autopack's equipment has improved a large number of food manufacturers’ production processes, and helped companies meet growing demand for their goods. The Lancashire company take great pride in their machine range and excellent customer service. Providing a friendly and professional service, they employ an experienced and highly skilled team encompassing sales, design, production, research and development, parts supply, service and maintenance. Riggs Autopack's Model 1000 range of depositors and filling machines is the main stay of the business. They are available as a semi-automatic stand-alone unit for small to medium scale food production, or as an automatic conveyor filling system for larger batch runs. Manufactured using high quality 316 FOOD & DRINK BUSINESS EUROPE, MAY 2012

stainless steel on product contact parts, these machines provide damage free and highly accurate volumetric depositing of hot or cold liquid, semi-liquid and suspended solid products, and fill most container types or size. With quick changeover times and easy setup, the Model 1000 depositing and filling machines are robust, reliable, hygienic and quick to clean, easy to use and simple to maintain, with fully adjustable depositing volumes and speeds. They are supplied with an after sales support package and available for purchase, short or long term hire. A noobligation on-site machine trial is also available upon request. If you're seeking to invest in a semi or fully automatic depositing system to accurately fill jars, bottles, pots, tubs, trays, foils, cake tins, cartons, buckets, jerry cans, pouches or bags, then Riggs Autopack could have the solution. For further information contact Riggs Autopack on Tel +44 (0)1282 440040, Email info@autopack.co.uk or visit www.autopack.co.uk. J 11

I PROJECT DESIGN & MANAGEMENT

Arla Foods UK Appoints Contractors For New £150 Million Dairy rla Foods UK has appointed Caddick Construction and NG A Bailey to build its £150 million fresh milk dairy at Aylesbury in England. Caddick Construction has started on site as principal contractor, with works expecting to take 75 weeks to complete. The company will be responsible for the construction of the main dairy and the energy centre, as well as all ancillary buildings and associated site works. NG Bailey will be responsible for the mechanical and electrical engineering portion of the contract, starting on site in June 2012. Arla Foods UK has already worked with Caddick Construction on a number of other projects, including Stourton dairy in Leeds and Westbury Dairies, and NG Bailey has also worked with Arla on various build phases at Stourton. Once completed, the dairy will process and package up to one billion litres of milk per year. It will provide a £20 million annual wages bill, which will have a positive impact on the local economy, and will also create around 700 new jobs and up to 1,000 construction jobs over the next 18 months. Peter Lauritzen, chief executive of Arla Foods UK, says: “We are delighted to be underway with this project. In addition to it being one of the largest construction projects in the UK, we have ambitions for it to be the world’s first zero carbon fresh milk dairy, which will help Arla achieve its growth ambitions in the UK.” Both contractors were appointed following a six-month tender process, in which they were up against some of Europe’s leading construction and mechanical and electrical companies. In addition to being responsible for the installation of the mechanical and electrical works, such as boilers, air compressors, ventilation and lighting in the energy centre, across the site and throughout the main dairy building, NG Bailey will also be responsible for wastewater and effluent treatment and recycling. Alongside the engineering division, the offsite manufacture and IT services arms of the company will also play its part in the development. NG Bailey has also been awarded the facilities management contract, which will be serviced by the company’s facilities services team. J

PepsiCo UK to Invest £15.2 Million at Walkers epsiCo UK is investing £15.2 million in its Walkers snacks manufacturing campus at Leicester. The investment will supP port the introduction of a new production line making kettle-fried potato crisps, such as the Red Sky and Walkers Extra Crunchy varieties. PepsiCo is also hiring 110 people as part of the expansion programme. First established in Leicester in 1982, the Walkers site, situated in the Beaumont Leys area of the city, employs over 2,000 people. Already this year, PepsiCo has invested £14.4 million and £9.3 million respectively in its Quaker Oats site at Cupar in Scotland and its distribution site at Peterlee in England. J

Factory Design to BRC Standards Project Management CDM 2007 Principal Contractor Feasibility Studies Factory Fit Out Equipment Layout Equipment Installations Mechanical & Electrical Refrigeration Visit www.willett-fpl.com or contact us by: TELEPHONE: 08450 569399, or EMAIL: sales@willett-fpl.com

FOOD & DRINK BUSINESS EUROPE, MAY 2012

I PROJECT DESIGN & MANAGEMENT

Willett Food Projects – The Design and Project Management Specialist the ever changing and developing of complex food manufacturIing,nworld Willett Food Projects specialises in assisting all types of food manufacturing companies solve their production problems. Currently celebrating ten years in business, Willett Food Projects has seen steady organic growth by working closely with companies to help them succeed in their design and project management challenges. Willett Food Projects is a design and project management company working exclusively on food manufacturing projects. Personnel experience has been at high levels within major food manufacturers, yielding knowledge and understanding of operational and technical issues. Working closely with food manufactur-

ing teams, Willett Food Projects jointly selects and tailors the building services, production machinery, infra structure, fit out, including mechanical, electrical and

refrigeration packages. Willett Food Projects has unique and extensive knowledge of food specific contractors, industry regulations, safety standards, and understands the difficulties that can arise in delivering a multidisciplinary project. The company’s role can be as consultant, designer, project manager or principal contractor for CDM projects. This unique knowledge is used to identify and reduce project risk, budget and complexity that can jeopardise the success of any project. To find out how Willett Food Projects can help your company deliver a successful project please visit www.willett-fpl.com or contact: TEL 08450 569399, or E-mail sales@willettfpl.com J

PM Group Announces $400 Million Project Wins in China M Group has recently been awarded a P series of new project management and design contracts with a capital value of over $400m in China. Established in Ireland in 1973, PM Group has grown to become one of the most respected engineering design, architecture and project management firms in the world. Today it has over 1,600 experienced team members based in 25 locations worldwide. The contracts comprise a range of complex life science, medical technology, nutritional and food and beverage facilities for leading multi-national clients including: Abbott, Boston Scientific, GSK, HJ Heinz, Johnson & Johnson, Kraft and Cargill. Niall O’Loughlin, general manager China, PM Group, comments: “The recent projects we have won are a tes-

tament to our promise to provide our clients with the same high level of service regardless of location. Our growing reputation in China is a result of our focus on design excellence, safety and quality. Many of our recent projects in China represent repeat business from our key clients from the USA, Europe and Asia. We will contin-

FOOD & DRINK BUSINESS EUROPE, MAY 2012

ue to drive growth by providing our clients with the right service delivered locally and using our global expert base.” According to chief executive, Dave Murphy, PM Group chose China to capitalise on the opportunities that exist in one of the main regions where multinational corporations are investing today. He says: “We took a strategic decision to open an office in China as many of our leading multinational clients are investing there and have significant plans for further investment. We opened our new office in Shanghai to be able to serve the needs of those clients and it has proven to be a great location for us so far. We have been able to build a top class team there with extensive expertise in our core sectors of biopharmaceutical, food and advanced manufacturing." J 13

I PROJECT DESIGN & MANAGEMENT

A Refreshing Approach to Construction s a high care construction company A with considerable expertise and experience in delivering projects within the sensitive environments of the food industry, TSL Projects has rapidly become one of the premiere design and construction specialists delivering first-class results in new build, refurbishment, fit-out and extension projects throughout the UK and Ireland. This success is demonstrated by the company’s recent move to larger, modern offices in Marlow, Buckinghamshire.

Having outgrown its previous base, TSL needed to provide accommodation for its growing professional team which has recently expanded by over 20%. A 70% repeat business level is further evidence that TSL must be exceeding clients’ expectations in project design and delivery. Safety, of course, is interwoven through all TSL’s activities resulting in its recent RoSPA Silver award and accreditation in the SafeContractor scheme. As part of the Tonroe Group, TSL has successfully worked with a number of blue-chip clients, and major producers including Unilever, Andros, Mars Chocolate, Alpro, British Sugar, TMI Foods, Dawn Meats, English Provender Company, Heinz, Walkers Snack Foods, Anglo Beef Processors and the Jersey Dairy Company. TSL has grown strongly in recent years and added a range of design and engineering skills to its portfolio in the Mechanical, Electrical, Structural, Process and Civil design disciplines. This enables TSL to

undertake all aspects of a project from initial sketch through detailed design, construction and commissioning. Additional in-house front end services include steel fabrication and erection, Stripout and equipment relocation. TSL brings a fresh approach to construction, focusing on working closely with its clients and contract partners to design and deliver fast track projects in an open, inclusive, predictable and non-contractual way. The company’s collaborative way of working from developing initial budgets to construction, equipment relocation and commissioning is at the heart of TSL’s success - in short, a philosophy of ‘Start Right – Stay Right’. For further information telephone 0845 330 7311 or visit www.tslprojects.com. J

Project Link Continues to Grow in the Seafood Industry ristol-based Project Link Design & B Construction continues to build its reputation as a specialist in the seafood industry with a number of new expansion projects. As the seafood industry continues to witness increased growth and demand, many fish processing plants and supported industries are experiencing the need to expand to cater for this across both UK and international markets. Project Link has built up many years experience and an enviable reputation in the seafood industry and is well placed to support this expansion after the recent successful completion of a £1.5 million new build development for a shellfish processor in the North West. The Project Link team is a dynamic, compact group of individuals whose experience makes them well positioned to support businesses right through from initial design and planning applications, working through every detail of design and equipment, through to the actual construction to ensure the best operational efficiency and long term return on investment on

aim is simple – to build projects safely, on time and on budget, no matter how challenging or unique the project, no matter how large or small. J

anything from refits and extensions through to new builds. The current projects underway reflect the growth in the seafood industry, ranging from seafood and pelagic fish merchants to new ice plants supporting local fishing industries. The projects span all stages of development, from initial design and budget costs, through to complex builds where Project Link utilises the services of an established team including structural engineers and CDM Coordinators to ensure full compliance with all construction Health and Safety Legislation, whilst ensuring operational disruption is minimised. Part of the Gilcrest Group, Project Link is a specialist food industry design and construction business with over 65 years of experience in this field. The company’s FOOD & DRINK BUSINESS EUROPE, MAY 2012

I BISCUITS & SAVOUR SNACKS

Strong Brands Fortify United Biscuits United Biscuits, one of Europe’s leading biscuits and savoury snacks manufacturers, has reported its seventh consecutive year of sales growth and has maintained profitability, despite the tough economic environment and escalating commodity prices. B is the number one player in the UK biscuit market with wellknown household brands such as McVitie’s, Go ahead! and Jacob’s. It is also the number two in the UK bagged snacks market and UK cake market and the number one in the UK branded nuts market. Other major brands within the portfolio include Penguin, Jaffa Cakes, KP, Hula Hoops, Skips, BN, Verkade and Delacre. Beyond the UK, UB holds strong segment positions in its other core markets of The Netherlands, France, Ireland and Belgium. UB brands are sold in over 100 countries and it has strong consumer bases in the rest of Europe, North America, the Middle East, Africa, Asia and Australia. UB operates manufacturing facilities in the UK, Belgium, France, India, and The Netherlands. In addition to its brands, UB also manufactures private label products, which are sold by multiple retailers under their own brand. UB’s drive brands, which are its most strategic and popular brands, receive priority marketing and innovation support. Consumers are responding to the continuing economic uncertainty by buying brands that they know and trust and which deliver value. UB is striving to ensure that its products satisfy these demands and offer a wide choice from healthier products to more indulgent snacks covering all price points, from budget to premium.

UB’s drive brands, which are its most strategic and popular brands, receive priority marketing and innovation support.

Financial Performance During 2011, UB increased revenue from £1.27 billion to £1.33 billion. Sales rises were achieved in all markets except The Netherlands, where intense retailer competition and strong private label suppressed growth in branded products. UB’s international markets continued to grow strongly, supported by a second year of its newly established business in India. Business profit remained stable during 2011. EBITDA was £229.2 million, down slightly on the £230.8 million achieved in 2010. The year on year decline largely reflects the impact of input cost inflation that could not be passed on. Indeed, commodity inflation drove input costs up 12%. UB generated a net free cash inflow of over £61 million during the year and at the end of 2011 the net debt outstanding was £1.09 billion, down 4.5% on 2010. Record Investment UB has invested record amounts in improving its manufacturing infrastructure to enhance efficiency while continuing to strengthen the appeal of its products. Cash investment in plant and equipment during 2011 was increased to £52.6 million (equivalent to 3.9% of revenue) up from £47.0 million (3.7% of revenue) in 2010. Expenditure was balanced across investments to improve efficiency, support growth and improve the health, safety and environment of UB’s facilities. UB operates 15 manufacturing facilities of which 11 are located in the UK, and employs over 8,000 people, principally based in the UK, France, The Netherlands, Belgium and India. During 2011, UB again achieved its cost release target of 4% to 5% of cost base. FOOD & DRINK BUSINESS EUROPE, MAY 2012

UB’s comprehensive cost release programme covers all sites and all areas of the business, and is supported by a ‘Lean’ programme. Additional capital was invested in 2011 to support the programme, and drive both efficiency benefits and infrastructure improvements and move all facilities to chilled food standards. During 2011, UB also made significant strides towards its environmental goals and completed the third year of its community programme. Outlook UB expects that the uncertain economic outlook for 2012 and beyond will continue to drive consumers to focus more on value. The challenge for UB is to adapt its products, formats and pricing to meet these consumer demands. Equipped with its strong brands portfolio of biscuits and savoury snacks, UB is well positioned in large, stable markets, which are expected to continue to grow in the medium to longterm, fuelled by consumer trends toward convenience, healthy snacking and indulgence. However, current joint owners, private equity groups Blackstone Group and PAI Partners, are reported to be separating UB into two distinct businesses – one focused on biscuits and the other on bagged snacks – prior to disposal of the two units. UB was offered for sale in 2010 with a price tag of about £2 billion but the auction process was unsuccessful. Blackstone Group and PAI Partners acquired UB for ?1.6 billion in 2006. J

United Biscuits is celebrating McVitie’s Digestives’ heritage as Britain’s favourite biscuit brand with a pack redesign.

I PACKAGING SOLUTIONS

Hextra-Ordinary Bottle Designs From Constar ollowing the successful launch of F Coldpress Foods’ premium 250ml juice products last year, Constar International UK has now developed a 750ml hexagonal bottle in order to expand the Coldpress range now available in both Waitrose and Tesco. Using its experience from the Australian market, Coldpress uses high pressure within the filled PET container to destroy microbial activity whilst both maintaining the flavour and extending the shelf life. Coldpress approached Constar as a leading PET packaging supplier with the aim of creating a pack with a point of difference on-shelf, whilst maximising throughput in the high-pressure processing machine. ‘Mind to Marketplace’ Using its in-house research & development facility, Constar was able to pro-

vide a speedy and efficient route from initial Coldpress concepts, through piloting, to final production in a short time frame. Constar believes that this in-house facility provides its growing customer base with an invaluable resource to deliver projects ‘from mind to marketplace’ both quickly and successfully. Andrew Gibb, Managing Director of Coldpress Foods, comments: “We are extremely appreciative of the support

provided by Constar’s R&D team, and could not have delivered the project to market in the tight time scales required without them.” Neil Johnson, Sales Director of Constar, says: ”Constar provides full-service packaging solutions, from product design and engineering, to ongoing customer support and material licensing agreements. Using our expertise in delivering new products from inception to the shelf, we are proud to have been able to support Coldpress with the launch of their innovative new juice products.” Constar International UK, based in Sherburn-in-Elmet, is a division of Constar LLC with headquarters in Trevose, Pennsylvania, USA. Constar, with its proprietary barrier technologies, is a leading global supplier of PET (Polyethylene Terephthalate) packaging to the food and beverage sectors. J

I SOFT DRINKS

Profits Fall But Britvic Shows Resilience Britvic, the UK-based soft drinks group, has increased revenue by 1.7% to £641.1 million for the 28 weeks ended 15 April 2012 but EBITA declined by 6.9% to £41.9 million and margins slipped 60bps to 6.5%, due to the impact of higher raw material costs and continuing problems at its Irish business. rofit before tax sank by 10.5% to £24.8 million but net debt was reduced by £21.6 million to £534.4 million. However, the board is proposing an interim dividend per share of 5.3p, an increase of 3.9% on the prior year, reflecting its continuing confidence in the future prospects of the business, as well as the underlying cash generative and resilient nature of its activities. Britvic is the largest supplier of branded still soft drinks in Great Britain and ranks number two within the branded carbonated sector. Britvic is a leading player in Ireland and in France, and has also extended its reach into other international territories through export, licensing and franchising. One of the leading soft drinks businesses in Europe, Britvic owns leading brands including Robinsons, Tango, J2O, Fruit Shoot, Teisseire and MiWadi. These are supplemented by PepsiCo brands such as Pepsi, 7UP and Mountain Dew Energy which Britvic produces and sells in GB and Ireland under license. During the first half Britvic increased group volumes by 1.9% to 1.1 billion litres and achieved revenue growth in its GB, France and International business units. However, the business in Ireland continued to have a negative impact on the group’s overall performance. Indeed, Britvic faces a challenging trading environment characterised by fragile consumer confidence in its three core markets of GB, France and Ireland.

mitigate the declining top line and to create a long term, sustainable and profitable business in Ireland. The Irish management team is implementing a multi-year programme of initiatives which will run into at least late 2013. In the first half of the year, the headcount was reduced and measures to reduce labour costs introduced. Britvic Ireland has also undertaken a detailed review of its product range, especially in its factored goods, to remove cost and complexity.

Great Britain GB revenue rose by 2.4% to £430.9 million with comparable volume growth of 2.9%. Despite the bleak economic outlook, the soft drinks category in Great Britain is proving to be resilient. The GB take home market, as measured by Nielsen, grew in value by 5.9% including the 2011 increase in VAT. Volume growth was 0.8%, with carbonates growing by 2.2% and stills declining by 0.5%. Britvic succeeded in expanding both its volume and value share of the GB take home soft drinks market during the first half of its financial year. Britvic’s GB carbonates operation, which is its largest reporting segment, delivered revenue growth of 6.7% and increased market

Paul Moody, chief executive of Britvic.

share. By contrast, GB stills revenue declined by 3.6% and comparable volume fell by 4.2%. According to Britvic, this performance continued the recent trend where premium positioned and premium priced brands have been disproportionately affected by depressed consumer spending. France and International Britvic France revenue advanced 6.4% to £123.1 million, led by strong price growth of 11.5%, as volumes were down 4.6% in the first half of the year, following the decision to withdraw some distribution for the Fruite Juice brand. The International business unit delivered revenue growth of 13% to £14.4 million, driven by US Fruit Shoot and expansion into new states, including Texas, increasing the number of US states covered to eight. Remedial Action at Britvic Ireland Although volumes edged up 0.5%, revenue fell by 10% to £72.7 million at Britvic Ireland. The Irish soft drinks market remains challenging and shows no sign of recovery in the near term, according to Britvic. The take home soft drinks market value, as measured by Nielsen, was down by 2.0% in the first half. The channel shift from on-trade to offtrade continues, with Nielsen reporting that the total pub and club soft drinks market declined by 5.0% in value during the period. While the trends are impacting all soft drinks manufacturers in Ireland, Britvic, with its ontrade focused wholesaling business, has been particularly affected. Britvic is taking further action on costs to FOOD & DRINK BUSINESS EUROPE, MAY 2012

Continued Innovation In line with its group-wide innovation programme, Britvic implemented a number of initiatives in the first half, including the launch of the UK’s first soft drinks sweetened with Stevia extract as well as new licensing agreements. In the second half of the current financial year, Britvic will launch both packaging and brand refresh initiatives on Fruit Shoot and J20. “Despite the challenging economic environment, Britvic has delivered a robust performance and made encouraging progress on key initiatives,” says Paul Moody, chief executive of Britvic. “Revenues increased for the group, GB, International and France, delivering improved cash flow, enabling a reduction in debt and a proposed further increase in the interim dividend.” Looking ahead, he comments: “Although the GB soft drinks market in April and early May has been adversely impacted by the poor weather, Britvic has continued to grow market share and with the key summer months ahead, we currently, remain comfortable with delivering the full year performance in line with our expectations.” J

We can help you with a wide range of contract packing and storage requirements, including:

Contract Packing and Storage Solutions Haven specialises in providing flexible, cost-effective and on-time solutions for companies looking to outsource elements of their production activity.

• Product packing • Promotional and gift packing • Collation and product assembly • Product quality inspection • Label application • Secure storage and distribution Haven is a social firm providing meaningful and sustainable employment to disabled and disadvantaged people in Scotland since 1946. For a free, no obligation quotee, call 0141 882 5752 or email matt.harley@havenproducts.co.uk Quality service from an award-winning social firm

I DISTILLING

Edrington Benefits From Growing Thirst For Scotch Having recently invested £48 million to expand distilling, bottling and warehousing capacity and improve efficiency, Edrington Group is well placed to capitalise on the rising demand for Scotch whisky in global export markets. cotch whisky exports increased by 23% to reach a record £4.2 billion in shipment value in 2011 (see Panel). Growth is being driven by rising sales in both emerging and more mature markets. Indeed, export values have increased by an average of 10% a year over the last five years.

assets in Scotland, Edrington Group has also been investing significantly in its Brugal rum business in the Dominican Republic.

Potent Brands Established more than 150 years ago, Edrington Group is one of Scotland’s leading Scotch whisky producers, employing more than 2,300 people worldwide. Its portfolio incorporates five core brands -- The Macallan and Highland Park single malt whiskies, The Famous Grouse and Cutty Sark blended whiskies and Brugal rum. The company’s products are exported to more than 100 international markets worldwide. Edrington Group operates several Scotch malt whisky distilleries, including The Macallan, Highland Park, Glenrothes and Glenturret. It also owns 50% of The North British Distillery, which is Scotland’s largest grain distillery. The £550 million turnover business has been benefiting from the growing popularity of Scotch whisky and increased profit before tax (excluding exceptional items) by 19.3% to £141.5 million in its last reported financial year (ended 31st March 2011). £48 Million Expansion Programme To prepare for continued growth and to meet anticipated future demand – Scotch whisky is matured for at least three years – Edrington Group recently invested £40 million to expand The Macallan Distillery along with constructing a new £8 million tank farm at the Drumchapel Distillery in Glasgow. The Macallan Distillery site now has extra distillation capacity and additional warehousing space for maturing casks. The additional production capacity will support the continuing growth of The Macallan brand. The tank farm at Drumchapel is used to mix the various whiskies that are used in Edrington Group’s blended products, primarily The Famous Grouse and Cutty Sark brands. The investment programme at the Drumchapel, which started in 2010, has increased capacity and also improved the efficiency of marrying

Edrington Group produces over 60 different whisky products.

and blending whisky prior to bottling. Edrington Group produces over 60 different whisky products, all of which are blended at the same site as the group’s bottling operation - the Great Western Road site in the west end of Glasgow. This site houses the world’s fastest whisky bottling line, which is capable of filling, labeling and packaging up to 10 bottles every second. It is one of ten lines at the site, which handles over 85 million bottles of Scotch whisky every year. In addition to enhancing its operational

Development Strategy Edington Group’s strategy for long term development is based on continued investment in three areas - its premium spirits portfolio, development of its routes to market, and in its people and resources to support brand growth. “Investment is targeted on brand equity growth and is focused in the markets where we anticipate the greatest opportunity for long term growth,” says Ian Curle, chief executive of Edrington Group. “Brand initiatives are focused strongly on the consumer and sustained with programmes that innovate within our categories.” Edrington Group has continued to invest behind its premium brands despite the difficult trading conditions in mature markets in recent years. This investment is now paying off as some stability returns to many western markets. The group’s Asian business has continued to grow steadily and Edrington Group is seeing positive developments in Russia and a number of emerging territories. J

Scotch Whisky Exports Surge to Record Levels Scotch whisky exports continued to grow last year, increasing by 23% to a record £4.2 billion in shipment value, according to figures by the Scotch Whisky Association. Rising demand in both emerging and more mature markets has resulted in export values increasing by an average of 10% a year over the last five years. It now contributes £134 per second to the UK balance of trade. Exports to the USA, the biggest market by value, broke the £600 million barrier for the first time in 2011 to reach £654.9 million – up 31% on 2010. France, the second biggest market, saw exports grow by 27% to £535.4 million. Affluent young professionals in fast growing economies are increasingly developing a taste for Scotch whisky. This is contributing to growth in countries across Asia and Latin America. Direct exports to Singapore, which serves as a distribution hub for much of Asia, rose by 44% to £317.9 million. Taiwan saw an increase of 44% to £155.2 million. In South America, Brazil was the fastest growing market by value with exports up 48% to £99.2 million. To meet this increased demand, distillers are investing record amounts in production capacity across Scotland. In the last four years the Scotch whisky industry has invested over £1 billion in new facilities.

FOOD & DRINK BUSINESS EUROPE, MAY 2012

I CONTRACT PACKING

Haven is Top of the League ontract packing firm Haven has come C top of the league at The Edrington Group’s Supplier of the Year Awards. The Glasgow-based firm was presented with the overall Supplier of the Year Award, in addition to a Gold Award for outstanding service, at a special ceremony held in April at Edinburgh Castle. The annual awards ceremony recognises The Edrington Group’s suppliers for their contribution to the success of its business. The process of selecting award winners involves measuring and ranking the performance of its key suppliers in the areas of product quality, delivery, reliability and flexibility. Haven, a social firm providing meaningful employment and training opportunities for disabled people since 1946, is part of the leading charity Momentum which provides rehabilitation, training and care services for disabled and socially-excluded people throughout the UK. Haven offers a wide range of high-quality,

cost-effective solutions to companies which outsource elements of their production processes, including contract packing, component assembly, quality inspection, storage and distribution. The Edrington Group has been outsourcing elements of its production process to Haven since 2003. Haven, which delivers services to some of Scotland’s largest companies, has earned ISO9001 and ISO14001 certification. The firm also has a facility in Inverness offering printing and mailing solutions and a WEEE recycling business, operated by Haven Recycle, in Glasgow. The company employs 127 people, 86 per cent of whom has a disability. Matt Harley, Haven business manager, says: “We were up against 19 other suppliers so to win the Supplier of the Year Award and Gold Award for outstanding service is real testimony to our highly-skilled and hard working workforce. By partnering with Haven, businesses are not only getting award-winning service but are giving some-

Certified food hygiene training - all levels H.A.C.C.P. consultancy and training Internal and external audits Food sourcing Supplier audits Member F.S.P.A.

FOOD & DRINK BUSINESS EUROPE, MAY 2012

Pictured: (left to right): Anthony Benney, UK business development, Rehab Enterprises; Mike Rose, director of technical services, The Edrington Group; Matt Harley, business manager, Haven; and Paul Robinson, purchasing material supply director, The Edrington Group.

thing back to local communities and having a positive impact on society. It’s a win-win situation.” David Donaldson, director of supply chain for The Edrington Group, comments: “This choice was made reflecting not only Haven’s overall excellence of performance throughout the year but also for their alignment to our supply chain’s ongoing quality, cost and delivery strategy whilst operating within a culture that is close to Edrington’s heart and core values, as they employ predominantly disabled or disadvantaged people to do our sub-assembly work.” J

I TRAINING & EDUCATION

Training, Education and Certification For the Food and Beverage Industry By Charles Comerford of HACCPSOLUTIONS uccessful businesses rely on their staff to S provide a positive experience to their customers. To do this the staff must have the competence, confidence and expertise to carry out their work in an efficient and safe manner. Nowhere is this more important than in the food industry. To invest in staff is to invest in the future success of the business. Unfortunately training can sometimes be seen by staff as menial, boring, repetitive and a waste of time. But training can and should be interesting, interactive and focused on the specific needs of businesses

and trainees. It is a legal requirement that all staff, at all levels in the food industry are trained. This training, rather than being a chore can be a very positive experience for everyone if it is professionally delivered by a capable and competent person. The trainer must not only have a complete understanding of the food industry, but must impart the knowledge in a focused and practical manner. This allows the trainee to relate the

training to their situation and to ask questions relevant to their needs. This gives the trainee the knowledge they need to carry out their work effectively, the confidence that they are doing things correctly and the motivation to up-skill and expand their knowledge. All of this will have very positive benefits for the company and will certainly pay dividends over time. For further information contact HACCP Solutions, 24 Carlisle Street, South Circular Road, Dublin 8. Tel 0879971223, E-mail safety@haccpsolutions.ie. J

Professional Training Courses Offered by Nottingham Trent University o you want to develop new products, D boost staff performance and network with the rest of the industry? NTU Fusion is a campaign by Nottingham Trent University’s School of Animal, Rural and Environmental Sciences, based at Brackenhurst Campus in Nottinghamshire. It aims to share the University’s experience, knowledge, facilities and connections with food businesses across the UK, together building a thriving and innovative industry that we can all be proud of. NTU offers: • A wide range of professional training courses to suit every company.

Food Industry on Target to Meet Pledge to Double Apprenticeships • Provide expertise and excellent facilities to support the food industry across the UK. • Are easy to access, and provide the ideal environment for research and development. • Already work with many big names in the food industry, including Pork Farms, Noble Foods, Pepsico, Boots and Kerry Foods. The NTU website offers you the opportunity to: • discuss current issues with other members of the industry • advertise your job vacancies • list your upcoming events • promote your company by putting yourself on the NTU Fusion map. Whether you want to train your staff, need professional advice or want a bespoke package creating NTU are happy to discuss your needs and provide you with the knowledge and tools necessary to your business. Any questions? Call the NTU Business Development Officer on 0115 848 5238 or visit www.ntufusion.co.uk. J FOOD & DRINK BUSINESS EUROPE, MAY 2012

K food and drink manufacturers are well U on target to meet their pledge to double the number of apprenticeships in the industry by the end of 2012, according to the Food and Drink Federation (FDF). The latest data from the National Apprenticeship Service (NAS) and Improve shows that the number of apprentice starts in the first six months of the pledge has reached 1,654 - nearly 50% of the overall target of 3,400. Apprenticeships taken up during this period cover a wide range of disciplines, from production-related roles such as new product development and engineering, to commercial functions such as finance and human resources Launched last year, FDF's apprenticeship pledge aims to build a pool of talented apprentices that can be developed and deployed across the sector – building skills for the future and enabling the industry to meet its ambition to grow 20% by 2020. The pledge is delivered in partnership with the National Skills Academy for Food and Drink and NAS. J 23

I TRAINING & EDUCATION

Nestle Professional Skills Up Future Chefs in UK and Ireland estle Professional, the Nestle business that supplies the food N and beverage service out-of-home industry, is helping to educate future chefs about nutrition through a new online course in the United Kingdom and Ireland. As part of its global commitment to nutrition, health and wellness, the company has created the interactive programme ‘Toque d’Or NHW’. It aims to help catering college students learn about healthy eating and drinking, energy and nutrients, nutrition needs, and diets and lifestyle. Launched in partnership with the British Nutrition Foundation, the course also aims to help students to understand food labelling and health in catering. “Providing catering students with the necessary skills and information related to food and nutrition will ensure that they are better engaged with public health initiatives – from calorie labelling to sourcing of ingredients,” says Roy Ballam, education programme manager at the British Nutrition Foundation. The course is available online until July 2012. A British Nutrition Foundation endorsed certificate will be awarded to those who pass. This recognises the completion of a basic qualification in nutrition, health and wellness. The course will be reviewed in July with an aim to launch it to the wider food service industry. “There’s no escaping the fundamental need for everyone working in the industry to have at the very least a basic understanding of nutrition, health and wellness,” says Neil Stephens, country business manager of Nestle Professional in the UK and Ireland. “The healthy eating trend has been gaining momentum over recent years. Nestle Professional is committed to encouraging the development of students’ skills in this area.” J

FOOD & DRINK BUSINESS EUROPE, MAY 2012

M E E R R G G E E R R S S M Arla Foods to Merge With Milk Link and MUH Arla Foods is planning two mergers in the British and German markets which will immediately increase its revenue by DKr9 billion (Eur1.2 billion) per year and strengthen its position as one of Europe’s leading dairy groups. Arla Foods is seeking to complete two major mergers – with Germany’s eighth largest dairy, the co-operative MilchUnion Hocheifel (MUH), which has owners in Germany, Belgium and Luxembourg, and with the UK’s fourth largest dairy, the cooperative Milk Link. The owner representatives in Arla Foods and MUH and the members of Milk Link will make a decision on whether to merge on June 26th and the mergers will require clearance from the regulatory authorities. If the mergers are finalised and approved, Arla will be represented by owners in its four largest markets, the UK, Sweden, Denmark and Germany, and also in Belgium and Luxembourg.

The planned mergers are in line with Arla’s Strategy 2015, the key objective of which is to improve returns for its owners by, among other things, enhancing their positions in the core markets of the UK and Germany. “Both Milk Link and Milch-Union Hocheifel are strong, well run dairy groups, which, with their product portfolios and production systems, will strengthen our business in both countries,” says Peder Tuborgh, chief executive of Arla Foods. ”In each of the three companies, the aim is to create value for our farmer owners in the form of a strong milk price. This will also be the case going forward,

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and our ability to deliver good results will be strengthened if these plans are realised.”

Peder Tuborgh, chief executive of Arla Foods.

The mergers will bring Arla a significant step closer to a number of the main objectives in the group’s Strategy 2015: Arla will be the UK’s largest dairy company and will rank third in Germany; these are both stipulated objectives for Arla by 2015. Another Arla objective is to achieve a revenue of DKr75 billion by 2015. The two companies, which will become an integral part of Arla Foods if the mergers take place, have combined revenues of approximately DKr9 billion. In 2011, Arla’s revenue amounted to DKr55 billion. Together, the companies are expected to generate revenues of DKr70 billion by 2013.

Bonduelle Gets Green Light For Hungarian Acquisition Bonduelle Group, the world

leader in processed vegetables, has strengthened its position in Central Europe after receiving the approval of the Hungarian competition authorities for its acquisition of Kelet-Food, a canning factory with a capacity of 25,000 to 30,000 tonnes. Located in Nyiregyhaza, north-east of Budapest, Kelet-Food produces canned sweet corn and peas, which it sells under retailers’ own brands at national and local level. The company produced 15,000 tonnes of canned foods in 2011, well below its production capacity.

private equity firm, which has appointed Swiss banking group Credit Suisse to handle the auction. Thailand-based food group Charoen Pokphand Foods is also reported to be a potential bidder. Iglo produces fish, vegetables, poultry and ready meals, including a number of iconic products such as fish fingers, schlemmer filets and sofficini. The group operates under three brands: Birds Eye (UK and Ireland), iglo (Germany, Austria, Belgium, the Netherlands and other countries) and Findus (Italy).

Parmalat Enters US Dairy Market Italian dairy group Parmalat has completed the intra-group acquisition of Lactalis American Group for $904 million. The deal marks Parmalat’s entry into the US dairy market, which is one of the largest in the world. It also strengthens Parmalat’s position in Latin America. Lactalis American Group operates mainly in the US in the production and distribution of cheese and other dairy products. Its portfolio of proprietary and licensed brands includes international brands, such as Galbani and President, and local brands, such as Sorrento, Precious and Mozzarella Fresca. In 2011, Lactalis American Group reported revenues of $979.3 million and EBITDA of $84 million; its net financial assets amounted to $19.4 million as at December 31, 2012.

Birds Eye Iglo was acquired by Permira from Unilever in November 2006 for £1.36 billion. In October 2010, the Findus Italy business was also acquired from Unilever for about £650 million. Since acquisition, Iglo has delivered robust earnings growth through, for example, a strengthened management team and new product development to drive top-line growth. Iglo had sales of sales Eur1.57 billion and increased EBITDA by 7% to Eur325.8 million in 2011. Analysts expect Iglo to be sold for between Eur2.5 billion and Eur2.9 billion.

Developments in the Auction of Iglo Foods

Hain Celestial Makes Strategic Irish Acquisition

A number of private equity firms, including Bain Capital, Clayton Dubilier & Rice, Blackstone Group and BC Partners, are reported to have submitted fist round bids for Iglo Foods, the European frozen foods group. Iglo is owed by Permira, the

Hain Celestial Group, the US-

FOOD & DRINK BUSINESS EUROPE, MAY 2012

M E E R R G G E E R R S S M based natural and organic products manufacturer, is extending its international presence into Ireland with the acquisition of Cully & Sully. Cully & Sully is a marketer and manufacturer of natural chilled soups, savory pies and hot pots, all under the Cully & Sully brand, with a range of approximately 20 products. Cully & Sully supplies all major food retailers in Ireland. The founding management team of Cullen Allen (Cully) and Colum O'Sullivan (Sully) will continue to manage all aspects of Cully & Sully reporting to Rob Burnett, chief executive of Hain Daniels Group. Details of the transaction were not disclosed.

Acquisition of Skanemejerier by Lactalis Approved The European Commission has cleared the proposed acquisition of the Swedish dairy products and fruit juices company Skanemejerier by French dairy giant Lactalis. The acquisition of Skanemejerier, which has annual sales of Eur330 million, strengthens the international presence of Lactalis.

Bright Food to Acquire 60% of Weetabix Bright Food, one of China’s largest food groups, is acquiring 60% of Weetabix Food Company from private equity firm Lion Capital for an enterprise value of £1.2 billion. The remaining 40% of the shares will continue to be held by Lion Capital and management. The transaction is subject to regulatory and government approvals in China as well as certain anti-trust approvals. Completion of the transaction is expected in the second half of 2012. No further financial details of the transaction are being announced. Weetabix is the second largest branded manufacturer by value of ready-to-eat cereals and cereal bars in the UK. The company’s portfolio of household brands features the mar-

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

ket-leading brand Weetabix, and also includes Weetaflakes, Oatibix, Oatiflakes, Seriously Oaty, Ready Brek, Weetos and Alpen, the leading UK muesli brand. Weetabix’s branded cereal business is enhanced by its number two position in the manufacturing of own label cereals for retailers in the UK. In addition to its strong presence in the UK, the company has operations in North America, South Africa, Germany and Spain and exports to more than 80 countries around the world. Weetabix employs about 1,800 people worldwide and in 2011 generated sales of over £460 million. Bright Food’s landmark acquisition is an exciting move by the company, signalling its entry into both the UK and global food markets through the iconic Weetabix brand. The transaction will represent the largest overseas acquisition by a Chinese company in the food and beverage sector. The purchase also supports Bright Food’s strategy of buying famous international brands, developing advanced technology and taking strong competitive positions in each of its markets.

the growing appetite in the country for packaged and convenient healthy foods. In 2011, Bright Food generated revenue of $12.2 billion and had an EBITDA of $1.2 billion.

Weetabix is the second largest branded manufacturer by value of ready-to-eat cereals and cereal bars in the UK

Lyndon Lea, partner of Lion Capital, comments: “The acquisition of Weetabix in 2004 was the first investment of Lion Capital and launched our strategy of investing in high quality consumer brands. Over the eight years that we have owned Weetabix it has generated top-line growth that has outpaced the broader cereal market as a result of increased investment behind the brands and innovation. We are excited to continue our journey with the Weetabix brand, which has been an enormously successful investment, as we extend the business into China in partnership with Bright Food.”

M&A Activity Will Drive Growth in Food and Beverage Sector

Lyndon Lea, partner of Lion Capital.

Bright Food is committed to driving the global growth and success of the Weetabix business, with a focus on the potential in Asia and especially in China, to take advantage of

The recent acceleration in M&A activity within the food and beverage industry in the UK and Ireland is set to continue, according to business and financial advisor Grant Thornton. The firm’s research report ‘Where is the Smart Money going in Food and Beverage?’ gathered opinions of senior representatives from private equity (PE) houses and corporates currently investing in the food and beverage (F&B) sector across the UK and Ireland. The research found that 80% of PE respondents plan to conduct M&A activity in the sector and 80% of corporate respondents believe that

FOOD & DRINK BUSINESS EUROPE, MAY 2012

sector growth in the same period will be achieved through acquisition. This suggests that the recent upturn in M&A activity in food and beverage will continue. Trefor Griffith, head of Food and Beverage at Grant Thornton, says: “Our research backs up the level of activity we are witnessing and shows that the time is ripe for M&A activity. Most businesses have reacted to the downturn by tightening their operations and processes.” He adds: “These leaner, battle-hardened businesses have worked out how to survive and even grow, so M&A at home and abroad is the next logical step.” In 2011, overall M&A deal numbers rose 22% on the previous year reaching almost pre-recession levels.

First Milk Acquires Sports Nutrition Business UK dairy co-operative First Milk has taken another step into the premium functional food sector with the acquisition of sports nutrition company CNP Professional for an undisclosed sum. CNP Professional is headquartered in Manchester where it markets and sells a broad range of quality products for the sports nutrition market. Its products are targeted at dedicated sportsmen and sportswomen and are currently sold through a range of channels.

Neil Kennedy, chief executive of Milk Link.

I ANAEROBIC DIGESTION

Getting the Best Value From Food and Drink Waste ising transport, energy and waste R treatment costs, the pressure to cut greenhouse gas emission and the need to operate more sustainably are all issues most food and drink businesses are now facing. One solution to help tackle these is anaerobic digestion (AD) which presents huge opportunities to the food and drink industry. This flexible process can treat many different organic wastes, such as liquid by-products from dairies, breweries or distilleries, vegetable off cuts, abattoir waste and much more.

Whilst an increasing number of food and drink businesses have already adopted anaerobic digestion as a solution for their food waste, there are many who have yet to explore the opportunities AD could offer their business. However, the perfect opportunity to find out all you need to know is just round the corner in the form of UK AD & Biogas 2012 (4-5 July, NEC Birmingham, UK), the two-day trade show and conference organised by the Anaerobic Digestion and Biogas Association (ADBA). Providing a platform for anyone interested in AD to question experts, source technology, hear case studies and receive free

finance or legal advice, there is no better opportunity to find out what you are missing. Held over two days, this is the UK’s only dedicated AD and biogas show featuring over 200 exhibitors, 22 free seminars, AD professional clinics and the first UK AD & Biogas Industry Awards on 4 July. ADBA has specifically dedicated an entire day of the conference at UK AD & Biogas 2012 to focus on the issues faced by food and drink businesses. The ‘Getting Value from Your Food Waste’ conference day on 4 July, is a must for any business which generates food waste. Discussing the drivers for AD in the food and drink industry, the options for food waste collections as well as the business case for on-site treatment and a range of other options, it will also showcase a number of successful case studies. Expert speakers include Harald von Canstein (Head of Biotechnology, E.ON), Ben & Jerry’s, Tim Elsome (InSource Energy), North

British Distillery and many more. Whatever your interest in anaerobic digestion, UK AD & Biogas 2012 will give you all the information and tools to find out if AD is right for your food and drink business. J

UK AD & Biogas 2012 The UK’s only dedicated anaerobic digestion and biogas trade show offers: • FREE entry to the exhibition* for food & drink manufacturers/processors/retailers, local authorities and farmers • A two-day exhibition showcasing over 200 exhibitors • A two-day conference with one day exclusively dedicated to ‘Getting Value from Your Food Waste’ • NEW: Free professional clinics feature area • 22 free seminars and workshops • NEW: The first UK AD & Biogas Industry Awards including ‘Best integration of AD into a food & drink business’.

Special Offer For Readers Free exhibition entry for Food and Drink Business readers and greatly reduced conference rates for food and drink manufactures/processors/retailers – register now! For conference tickets (including entry to the trade show) • Are you a food manufacturer/processor/retailer, farmer, local authority, exhibitor or a member of ADBA? If so, then please contact matthew.ireland@adbiogas.co.uk / T: 02031 764 415, before registering, to receive your unique discount code and up to 70% off standard conference rates. For tradeshow only • Food & Drink Business readers receive free entry to the exhibition* at UK AD & Biogas 2012! Just enter the discount code GEN3289 when you pre-register on www.adbiogas.co.uk. *Please note that this does not include free entry to the conference.

FOOD & DRINK BUSINESS EUROPE, MAY 2012

Second Kliklok Cartoner For Russia liklok will soon be installing a second K SFR150 end load cartoning machine at Udarnitsa, one of the largest confectionery companies in Russia. The first Kliklok SFR machine was installed in 2009, with an automatic SMARTBELT infeed system, which allows the product to arrive at random with no need for precision placement by operators, thus improving line efficiency and providing a fully automatic cartoner with a short footprint. Udarnitsa was so pleased with the SFR’s performance, it bought a second SFR cartoner, this time with a Right Angle

Transfer (RAT) infeed, to pack trays of chocolate marshmallows. This option provides a cost-effective automatic transfer solution as the RAT system receives single products on a conveyor at 90 degrees to the SFR infeed, then synchronises & transfers them between the infeed flights of the cartoner. In addition to the Smartbelt and RAT infeed options, the SFR150’s modular design enables other choices for either hand loading, collating or stacking – providing tailor made solutions for improved productivity. With the benefit of flexibility, the

SFR150 can be reconfigured if your requirements change. For further information visit www.kliklok-int.com. J

Food Safety: Measom Freer Has the Scoop easom Freer has launched a new range of scoops in standard food safety M colours, with antibacterial additive also available to provide that extra depth of protection. The scoops are manufactured in very durable food grade HDPE, with natural available from stock and yellow, brown, red, white, blue and green available to order. There are four sizes of Scoop; micro, mini, small and large, suitable for a wide variety of bulk handling and dosage applications including food processing, wet and dry ingredients, confectionery, catering, baking etc. The company’s other products such as measures, jars and boxes

can also be colour matched and treated with anti bacterial additives to help prevent cross contamination right throughout the preparation area.

Measom Freer has been producing quality plastic packaging for over 75 years. The company manufactures an extensive range of plastic packaging and has available from stock; plastic bottles, jars, caps, pumps, scoops, measures, boxes, rigid tubes, fasteners, spatulas, spoons etc. The products are designed and manufactured in-house in the UK at the company’s site in Leicester. For further information contact Measom Freer on Tel +44 (0)116 2881588, Fax +44 (0)116 2813000, sales@measomfreer.co.uk or you can now buy online at www.measomfreer.co.uk. J

Coca-Cola Enterprises Announces Suppliers of the Year all Packaging Europe, Krones and Klimasan have been recognised for their B performance in quality, service, value and corporate responsibility and sustainability by Coca-Cola Enterprises and have been named as the soft drink group’s suppliers of the year 2012. Ball Packaging Europe won the Supplier of the Year Award, Krones was named Corporate Responsibility and Sustainability Supplier of the Year, and Klimasan received the Most Improved Supplier Award. The CCE Supplier Award winners are identified through CCE’s Supplier Relationship Management (SRM) programme, which uses a rigorous scorecard process to measure performance, and the awards are based on the topperforming suppliers. Each CCE supplier is measured against criteria in four key areas (quality, service, value and corporate responsibility and sustainability). CCE is the sole licensed operator for products of The Coca-Cola Company in Belgium, continental France, Great Britain, Luxembourg, Monaco, the Netherlands, Norway and Sweden. J

Pictured (left to right): John Brock, Chairman and CEO, Coca-Cola Enterprises presents the Supplier of the year award to Thomas Haensch and Rob Miles, Ball Packaging Europe, together with David Cowell, VP Procurement, CocaCola Enterprises.

FOOD & DRINK BUSINESS EUROPE, MAY 2012

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I PALLETISING & DEPALLETISING

ABB Robotics Launches the PalletPack 460 BB Robotics has launched the A PalletPack 460, a pre-engineered package of proven robotic palletising components featuring the new IRB 460 robot designed specifically for high speed end-ofline palletising. The packaged configuration offers integrated hardware with full documentation, reducing overall project costs and significantly reducing set-up engineering time. It will allow integrators to more easily specify and design palletizing systems, and reduce the barriers for end-users to realise the benefits of robotic palletising automation. Klas Bengtsson, product manager for ABB’s picking, packing and palletising offer, comments: “ABB is very serious about palletising. This new function package allows integrators with little robotic experience to enter this market. The PalletPack is so easy to work with, without the need for any special robot programming know-how. Robot, grippers, safety and cell control PLCs, graphical HMI and software all come ready to plug-in and produce.” Available for either high-speed bag palletising or compact end-of-line case palletising, the function package consists of an IRB 460 palletising robot; a Flex-Gripper (either the Claw or one-zone Clamp grip-

per); an ABB control PLC; an ABB safety PLC; PalletWare support software; user documentation; and the ABB FlexPendant featuring an easy-to-use graphical HMI. The heart of the PalletPack is the IRB 460, the fastest known palletising robot on the market. The 4-axis IRB 460 features a reach of 2.4 meters and 110-kilogram capacity, with a compact footprint that makes it ideal for integration into existing packing lines. A prime feature of the PalletPack is the programming wizard which makes the

programming very similar to that used for a traditional PLC. This enables PLC programmers without specific robotic experience to program the system, eliminating the complications that can arise when special skills are required. The programming and operation are carried out via the user friendly FlexPendant, the standard ABB Robotics HMI. This features a graphical interface with four user-friendly screens: pallet and pick setup, pallet pattern set-up, path profile edition and movement edition. Klas Bengtsson continues: “Programming times for the PalletPack 460 can be reduced by as much as 65% compared to traditional methods, shortening the return on investment and making robotic palletising highly attractive to a wide range of end-users. What used to take days now takes only minutes. Robot programmers are an increasingly rare resource, so this package is truly transformational.” The new PalletPack 460 is fully supported by the ABB Robotics’ global sales and service organization in 53 countries and over 100 locations. For more information on ABB’s PalletPack 460, please email robotics @gb.abb.com or call 01908 350 300 quoting reference “PalletPack 460”. J

Cavit Winery Confirms its Preference For OCME talian wine producer Cavit has chosen Icentralised Ocme once again for the supply of its new palletising plant for three packaging lines (expandable to four lines) and transfer to the new automated warehouse. Cavit represents 4,500 growers and 11 wineries associated production. In 2011 it achieved a turnover of Eur152 million, of which of which 23% was generated in Italy and 77% abroad. Cavit needed a single system able to store, palletise and wrap with stretch film the entire production of the four filling lines (180 cartons per minute - 45 cartons per minute with 6 bottles each for four lines). The pallets, after labeling, verifica-

tion of the weight and shape, had to be transferred to the new automated warehouse through two automatic elevators/descenders, with a drop of 5 meters. OCME has extensive experience in the food and beverage industry and has completed similar installation in Barilla, Plasmon, De Cecco, Buton and United Distillers (UK). OCME has installed two automatic palletisers equipped with a centralised system for the packages storage and palletising of two lines simulataneously. Each palletiser, thank to its new rotating system, separation, division and creation of the packing layer trough manipulators, is FOOD & DRINK BUSINESS EUROPE, MAY 2012

The palletising plant at Cavit.

able to palletise two different products simultaneously on EURO (1200 X 800) and CHEP (1000 X 1200) and 960 x 1060 mm pallets. J 31

The fastest Palletiser on the Market ROBOT PALLETISER Ultra High Speed High Load Capacity Wide Operation Range Low Noise Level Energy Efficient Environmentally Friendly Adaptable Product Capability

LVP Conveyors Ireland LVP Conveyors UK Unit D7 North City Business Park, Dublin 11 Garston Road, Corby, Northants, NN18 8NH Phone: 00353-1-8643838 Phone: 0044-1536-747740 Email: info@conveyors.ie Email: sales@lvpconveyors.co.uk www.conveyors.ie www.lvpconveyors.co.uk

I PALLETISING & DEPALLETISING

Goliath Palletising/depalletising Solutions oliath Packaging Systems has a palG letising/depalletising solution to suit your budget, available floor space, prod-

lated arm robot is a heavy-duty solution to your more demanding applications.

uct type and output requirements; there are three different solutions available: the gantry robot, the articulated arm robot and the pallet loader.

Pallet Loader Offered where the gantry or articulated arm robot may not suit the particular process requirements, the Layer Palletiser supports the underneath of the product at all times during row and layer formation stages and also during the critical product transfer stage to the adjacent pallet. Cartons are pushed by an operator directly onto the stripper plate of the pallet loader according to the desired pattern. With high speed and multi-lane palletising capabilities, the Layer Palletiser is a reliable partner in a busy production environment. Products handled include cases, sacks, trays, drums, buckets etc. For further information visit www. goliath.ie. J

Gantry Robot Compact, versatile robot picks products from an in-feed conveyor and precisely places onto the pallet. The gantry robot is quick and easy to install in an existing production environment, being fully factory tested before delivery using your presupplied products and pallet patterns. With cutting-edge IPC control, it takes no more than 30 seconds to switch to a previously saved palletising programme, while new pallet patterns can be quickly generated using optimisation software such as CAPEPACK速. The gantry robot, is available with sin-

Gantry robot.

Articulated arm robot.

gle, double or multiple palletising positions within a single framework, requires minimal maintenance, is easy to access and is delivered equipped with safety fencing and interlocked access door(s). All types of cases, even heavy and bulky ones, can be stacked to 2700 mm load height in order to fully maximise your shipping efficiency. The Articulated Arm Robot Where the gantry robot is deemed less suitable, the articulated arm robot is a tried and trusted solution to your higher speed single or multi-lane palletising requirements onto one or more pallets. Generally rated at up to 20 cycles/minute at 160Kg maximum payload. The articu-

Pallet loader.

New Okura Robot Palletiser VP Conveyors has announced the L launch of the latest robot palletiser from Okura. The A1600V is the latest mid-high range capacity palletising robot to be released into the market, which accompanies the A1800 robot, released last year, which is the fastest palletising robot available. The A1600V provides up to 1600 cycles per hour, which can deliver in an optimum set up, around 1200-1300 bags / boxes being palletised per hour. The Okura robots have been designed with only the palletising function in mind, and com-

bined with purpose built Okura hand grippers, the Okura robot palletisers are very versatile. Whether you want to palletise a bag, box, beer drum or paint can, and if it

FOOD & DRINK BUSINESS EUROPE, MAY 2012

is single picks, multiple picks or even a complete layer, the Okura robot palletiser is the ideal robot palletising solution. All of the installation and programming is provided by LVP Conveyors, and the unique software, which is windows based, makes it easy for customers to take ownership and work independently by allowing them to make programme changes without the need for an engineer to come to site. For further information visit the LVP Conveyors websites at www.conveyors.ie (Ireland) or www.lvpconveyors.co.uk (UK). J 33

I MARKET FOCUS

£2.4 Billion UK Cider Market is Ripe For Further Development Cider is the undisputed success story of the UK alcohol category over the past six years, according to new research from Mintel. t has grown its volume sales by just under a quarter (24%) between 2006 and 2011 and over this period its value sales increased from £1.7 billion to £2.4 billion. With pubs seeing record closures since 2008, cider has performed well above the market by recording a quarter (25%) growth in revenue within this channel – albeit a lesser 5% growth in real value sales between 2006 and 2011.

Cider has seen particularly steep growth in the off-trade over the past five years, experiencing a 67% increase in volume sales and doubling its revenues between 2006 and 2011. Cider’s share of supermarket shelf space has grown exponentially over this time and in 2010 accounted for 40.7% of UK cider volume sales. Market Penetration Mintel’s research shows that in terms of penetration, cider has now become the equal of lager, while its steep sales growth in the past five years is the direct opposite

of lager’s equally dramatic sales decline. Indeed, consumer demand has skyrocketed and Mintel’s research reveals that, while 10 years ago, 42% of British consumers were cider drinkers - this has now grown to 47% despite a decline in the UK adult drinking population from 88% to 82% in the past five years alone. This is compared to 46% of consumers who are lager drinkers today. Indeed, cider’s success is in stark contrast to wine and beer - the most adversely affected in losing actual drinkers, mainly because they are the biggest categories with more to lose. In terms of actual sales, beer has seen the most dramatic decline, losing £2.2 billion in revenue between 2006 and 2011 mainly due to the dramatic decline of the UK pub sector. Meanwhile, wine has seen a decline in the proportion of UK drinkers from 66% in 2007 to 58% in 2011. “Cider has been particularly successful at attracting younger drinkers from the ailing lager category, as well as from alcopops and wine,” points out Mintel senior drinks analyst Jonny Forsyth, “due to a combination of impressive innovation and marketing nous.” Growth Potential Furthermore, the sector has potential for much more growth with Mintel forecasting volume sales to increase by 12% between 2011 and 2016 and value sales by a third (33%) as annual above-inflation

FOOD & DRINK BUSINESS EUROPE, MAY 2012

duty continues to push up retail sales prices (RSP). “This is in a highly challenging context for alcohol but cider has had the advantage of a lower tax than borne by many competitors which it has invested wisely – especially in constant innovation,” says Jonny Forsyth. However, there is clearly further opportunity for the sector as cider falls massively behind lager in volume consumed; meaning its revenue of £2.4 billion (in 2011) is a fraction of the UK lager market’s total revenues of £11.4 billion. Today, a third (34%) of alcohol drinkers who do not drink cider claim that it ‘never occurs to them to do so’ rather than them actively disliking it. He continues: “This is a result of cider not being able to compete with lager when

it comes to being a ‘session drink’ rather than something you have one or maybe two glasses of, due to the sweetness of its flavour.” It is also less of a mainstream ‘top of mind option’ than lager. If cider can develop its taste profile – and perception – to account for those with less sweet as well as sweeter palates, it has the potential for a broader appeal. “For example, as an alternative to wine during meal occasions as well as providing the ‘all night’ volume appeal of lager – with the result that it can seriously close the gap on lager’s superior revenue,” reasons Jonny Forsyth. J

I NEW PRODUCT DEVELOPMENT

Own Label Food and Drink NPD Overtook Branded For the First Time in 2011 atest research from Mintel reveals L that for the first time, in 2011, the proportion of own label New Product Development (NPD) overtook branded in the UK. Historically, the proportion of new product development within food and non-alcoholic drinks has been higher for brands than for private labels. While brands held a 55% share of total NPD in 2010, the balance tipped in 2011 in favour of own labels as they accounted for 54% of NPD, compared to 46% for brands. Today, some 57% of consumers think that own label products have improved in taste and quality, while 52% actually prefer them to brands in some cases. Furthermore, some 82% of adults think that own label products provide value for money, compared to just 16% for brands. Today, some 80% of shoppers buy own label products (compared to 89% of consumers who buy branded goods), and retailers’ own products look set for further growth in 2012 as consumers expect to buy more of them. What is more, as many as 20% of those who buy branded products are set to buy less in the coming year. Chris Wisson, senior food Analyst at

Mintel, comments: “While there are signs that pressure on consumer budgets is slightly easing, 2012 looks set to see the majority of adults remaining watchful and discerning when shopping. Our research suggests that on balance, consumers expect to buy more standard and value own label foods while cutting back on brands.” Mintel’s research reveals that the market for own label food and drink reached £37 billion in 2011, a 24% increase since 2006. This growth has come at a slightly faster rate in relation to the wider market, which grew by 23% over the same period. The own label market is expected to show similar growth trends in the coming years and is

projected to reach £46 billion by 2016. Today, 69% of British shoppers buy economy own label food and drink products. While there are signs of the recession easing somewhat, its continued impact is still being felt by consumers. Indeed, just 6% of adults who currently buy economy own label products expect to reduce their usage in the coming year, while one in eight (18%) current users expect to buy more in the year ahead. Premium own labels have also fared well in recent years despite budgetary pressures and today are bought by 71% of UK consumers. Growth also looks set to continue in this segment, with 27% of adults expecting to buy more of these products in 2012 and only 12% to cut back. The progress of own labels is such that over half (52%) of adults prefer the taste of own label products to branded equivalents in some cases, suggesting that they are increasingly becoming brands in their own right. However, despite over half of adults thinking that own label products have improved in taste and quality, 58% of adults still say that for some foods, only brands will suffice, with premium products in particular offering brands a safe haven. J

Marks & Spencer Launches New Value Food Range arks & Spencer has launched Simply M M&S, a range of 800 everyday food products and store cupboard staples that offer M&S quality at value price. Designed so that customers can do even more of their weekly shopping at M&S, the new

range is part of the retailer’s food strategy to offer customers more choice – whether they are shopping for speciality or everyday food. Complementing M&S’s leading position on innovation and newness, the range

FOOD & DRINK BUSINESS EUROPE, MAY 2012

brings 800 new and current lines – including fresh meat, fruit and vegetables, eggs, milk and store cupboard ingredients – together under one, easy to recognise label. Hundreds of prices have been lowered and many new products added. Prices will be independently checked by Brandview.co.uk every week to ensure that Simply M&S products are competitively priced. Simply M&S packaging is easy to identify, with most of it being transparent to highlight the quality of the products and the design is themed around shopping list style labelling. An extensive marketing campaign using the strapline ‘M&S quality now at prices you’ll love’ will support the brand and includes TV advertising. J 35

QUALITY

& HYGIENE

Maximise Your Productivity With BUCHI’s Latest Innovation

ow do you cope with an ever increasing H sample demand and less manpower? BUCHI’s latest innovation, the KjelMaster system, K-375/K-377, together with the Digest Automat K-438, sets a new standard in productivity for protein determination according to the official Kjeldahl method. It allows up to 80 samples to be processed in an eight hour shift! The Digest Automat K-438 with automatic lift for raising and lowering batches of digested samples offers you full walk away

convenience during digestion. The rack, holding a batch of 20 samples, can be placed in the KjelSampler K-377 for automated distillation and titration. The K-377 features two independent rack trays so that a second batch of 20 samples can be loaded while the first batch is being processed. This semi-continuous workflow allows the highest possible sample throughput using just one integrated digestion/distillation/titration system. A new and innovative smart distillation mode facilitates routine mea-

surements and increases the result accuracy. Data traceability for GLP compliance is guaranteed by multiple access levels of authorization and thorough documentation in conjunction with the KjelLink PC software. KjelLink facilitates not only data integrity and exchange with LIMS, but also displays the status of operation on an external PC, thus taking on site supervision to a minimum level. For further information visit www. buchi.com/kjeldahl. J

Industry Welcomes New easyFairs LAB INNOVATIONS Show ndustry has welcomed the Ishow news of a brand new laboratory which major trade show organiser, easyFairs, launches into the UK market this autumn. The two-day event, LAB INNOVATIONS, is taking place on the 7th and 8th November 2012 at Birmingham’s NEC, and will be the UK’s only event dedicated to showcasing the latest laboratory technology and consumables, analytical and biotech equipment. The show is being supported by The Royal Society of Chemistry, Gambica, Campden BRI, Institute of Measurement and Control and UK Science Park Association.

EasyFairs has a proven track record in this field following two highly successful LABOTEC shows in Switzerland, which brought key audiences and exhibitors together. LAB INNOVATIONS, launched off the back of LABOTEC, will follow the same ethos, delivering great content for lab professionals looking for the latest innovaFOOD & DRINK BUSINESS EUROPE, MAY 2012

tions, career development, new skills and technology. Learning and career development sit at the heart of the event. The show will include a free-toattend conference featuring world-renowned speakers, devised by the Royal Society of Chemistry, plus industry seminars organised by Campden BRI. The event’s mix of education and exhibits has quickly attracted visitor interest from across the chemical, life sciences, food and beverage and research sectors. For more information visit www.easy Fairs.com/LABINNOVATIONS. J 37

Activity Levels High in Global Functional Foods Market Despite Lower Growth Rates lthough the global functional foods market continues to A expand in size, growth rates in parts of the world have dipped over the last couple of years, especially compared with the last decade, according to Leatherhead Food Research. Much of this has largely been for economic reasons caused by the global downturn, with premium-priced functional products carrying less appeal for price-conscious shoppers. Certain parts of the market also appear to be approaching maturity, whilst the industry also faces ongoing competition from food and drinks positioned on a more general wellness platform. In spite of this, levels of corporate and new product activity remain high within the global functional foods industry. Many of the world’s leading food groups have been keen to expand their presence in market sectors such as functional dairy products, soya-based and lactose-free foods and sports and energy drinks. Indeed, health remains a major driver of corporate strategy in most

parts of the world, with manufacturers also reformulating their food and drinks to improve their nutritional qualities. From a supply perspective, the industry is still largely dominated by many of the world’s leading food groups. For many of these companies, functional foods form a small but significant part of their overall product range, having made some of the greatest contributions to recent growth in sales and profits during the last decade, on the back of the global trend towards healthier diets. Partly as a result of this, large-scale

mergers and acquisitions continue to take place within the industry, one recent example of which was Nestlé’s $11.85 billion purchase of Pfizer Nutrition. ‘Key Players in the Global Functional Foods Industry’ is a new publication from Leatherhead Food Research, which updates a report last published in 2005. The report provides in-depth profiles of more than 30 of the world’s leading suppliers of functional foods, as well as providing an overview of the world market for functional foods, detailing market size and growth rates, as well as NPD figures and recent corporate activity. Companies profiled in the report include leading food groups such as PepsiCo, Unilever, The Coca-Cola Company, Groupe Danone, Kellogg and General Mills. For further information, contact Leatherhead Food Research on telephone +44 (0)1372 822376 or by e-mail: publications@leatherheadfood.com. J

Biovelop Launches New Oat Protein Ingredient iovelop International, the Swedish comB pany behind the very successful PromOat™ beta glucan ingredient, has launched a new oat protein product, called prOATein™. Produced in Sweden using locally-sourced, non-GMO oats, prOATein™ is believed to be the first oat protein ingredient of its kind. Supplied as a powder, prOATein™ is particularly rich in the essential amino acids leucine and lysine and is suitable for fortifying a wide variety of food and nutritional supplement products. Thanks to Biovelop’s patented, chemical-free technology, prOATein™ is a clean-label ingredient and also benefits from being dairy-free, vegan-

friendly, nut-free and very low in gluten. David Peters, director of sales & marketing for Biovelop International, comments: “Consumer demand for protein-enhanced products is stronger than ever, yet traditional sources of protein are suffering from the dual threats of significantly increased prices and unreliable supply. Manufacturers are increasingly looking to alternative forms of protein which can address these issues and appeal to a FOOD & DRINK BUSINESS EUROPE, MAY 2012

broader range of consumers at the same time. prOATein™ is attractive to manufacturers and consumers alike: it is a sustainable, nondairy, non-animal source of protein, it benefits from the very positive perception amongst consumers that oats already enjoy, and it overcomes consumer concerns about GMO ingredients that hinder certain other proteins.” PrOATein™ is especially well-suited for incorporation into breakfast cereals, nutritional bars, bread, baked goods, meal replacement shakes, meat products, pasta, snacks, sports nutrition products, and supplements. For further information on prOATein™, please contact info@biovelop.com. J 39

Innovative Solutions From WACKER ACKER offers tailored and innovative W solutions and products for the life-science sector. In particular for the functional food and nutraceutical industry, WACKER provides an inventive range of materials and solutions for improving products and processes. These include, for example, a soluble dietary fiber for the stabilization of oil-in-water emulsions. By introducing CAVAMAX® W6 FOOD, an alpha cyclodextrin, WACKER offers manufacturers the possibility to replace emulsifiers with a soluble fiber. CAVAMAX® W6 alphacyclodextrin is a natural, starchderived oligosaccharide. It interacts with triglycerides building up a surfactant like structure that stabilizes oil-in-water emulsions efficiently. WACKER’s CAVAMAX® W6 alpha cyclodextrin can be used for a wide range of viscosities with excellent organoleptic properties. It is non hygroscopic and non-browning, colorless, neutral tasting and easy to handle. CAVAMAX® W6 alpha cyclodextrin can also be added as a fully fermentable dietary fiber to beverages, including carbonated and non-carbonated transparent soft drinks. Solutions of CAVAMAX® W6 FOOD are haze free, colorless and odorless, and have a low viscosity and a neutral taste.

Encapsulation Solutions Furthermore, WACKER offers molecular encapsulation solutions based on its cyclodextrin technology for odor or tastemasking, to stabilize food ingredients against heat and oxidation and to increase the bioavailability of functional ingredients.

Take, for example, CAVAMAX® W8 Curcumin, WAKER’s highly bioavailable and ready-to-use Curcumin product. The bioavailability of this cyclodextrin-based curcumin formulation was assessed in various scientific studies conducted by WACKER. CAVAMAX® W8 Curcumin is supplied as a dry, free-flowing powder and thus ideal for use in dry or powdery dietary supplements, such as tablets, capsules or nutritional bars. Since it disperses easily in aqueous systems, it is also available for use in beverages. In this range WACKER also has a highly bioavailable CoQ10 product, marketed under CAVAMAX ® W8 Q10. WACKER has over 15 years of experience in manufacturing and formulating alpha-, beta- and gamma-cyclodextrins. With R&D laboratories for food and beverage applications located in Adrian (Michigan, USA) and Burghausen (Germany), WACKER is focusing on tailored developments for specific customer needs.

tured by WACKER’s patented fermentation process and therefore are approved for the use in vegetarian, kosher and halal foods. The company’s fermentation-grade cysteine is used, for example, for the production of savory flavors and as a processing auxiliary to make baked goods. Thereby, highest quality and strict adherence to all applicable international standards takes top priority. WACKER’s team of experts and local specialists focus on market needs and support its customers worldwide in developing new products. With a 15,900-strong workforce, 26 production sites in Europe, Americas and Asia, and over 100 subsidiaries and sales offices worldwide, WACKER has established a strong presence in all key economic regions and growth markets. Decades of experience, a global service network and an above-average R&D investment ratio make WACKER a strong partner in many fields. For further information contact Wacker Chemie on Tel +49 89 6279 1346, Fax +49 89 6279 2507, E-Mail info.biosolutions@wacker.com or visit www.wacker. com/food. J

L-cysteine Products WACKER also produces a high-quality range of non-human, non-animal derived L-cysteine products. Starting from raw materials of vegetable origin and inorganic trace elements, these products are manufac-

FOOD & DRINK BUSINESS EUROPE, MAY 2012

Arla Foods Ingredients’ Milk Proteins Can Cut Salt in Cheese by 65% rla Foods Ingredients has develA oped a range of functional milk proteins that make it possible for food manufacturers to slash the salt content in their processed cheese products by up to 65%. The Nutrilac® proteins offer excellent emulsification properties, which means they can replace the emulsifying salts normally used to achieve a stable texture in spreadable, block and sliceable processed cheeses, as well as cheese sauce products. This results in a dramatic reduction of sodium levels in the end product – to the tune of anything between 50% and 65%, according to Arla Foods. The proteins also eliminate the need for creaming – speeding up processing times by as much as an hour. In addition, they offer fat simulation properties, helping manufacturers to produce high quality processed cheese products that are not just lower in salt but in fat, too. There are two proteins in the range: • Nutrilac® CH-6540 for spreadable processed cheeses and cheese sauces

• Nutrilac® CH-6608 for block and sliceable products Claus Andersen, cheese application group manager at Arla Foods Ingredients, says: “Excess salt in our diets is a major issue. The World Health Organisation recommends adults consume no more than 5g a day – but average consumption in the West is 8-12g a day. More than two-thirds of the salt we eat is hidden in processed

foods – and as a result manufacturers are coming under increasing pressure to cut sodium levels in the foods they make. “Our Nutrilac® functional milk proteins are the perfect solution for any processed cheese maker that is looking to improve the nutritional profile of their products by reducing salt without impacting negatively on consumer acceptability. Coupled with the potential to reduce fat levels, they offer a superb opportunity to create better-for-you processed cheese products that don’t compromise on taste.” Nutrilac® functional milk proteins from Arla Foods Ingredients can also be used to reduce the natural cheese content in processed cheese products from a typical level of about 65% to between 20% and 40% – helping manufacturers cut costs. In deep fried cheese snacks, meanwhile, the proteins can be used to adjust melting properties, something that isn’t possible when using natural cheese alone. J

Barry Callebaut Launches New Lactose-free Milk Chocolate arry Callebaut, the world's leading manB ufacturer of high-quality cocoa and chocolate products, has launched a new lactose-free milk chocolate, which will be sold first in the company's Region Europe. The new chocolate differs from existing offerings by using a special skimmed milk powder with the lowest lactose content available on the market. With this particular powder, Barry Callebaut can allow higher amounts of milk powder in its recipe which preserves all the goodness from the milkresulting in a similar taste as regular milk chocolate. For the production of this new lactosefree milk chocolate, special measures including additional and specific cleaning of the production lines were taken in order to eliminate the risk of any lactose contamination during the production process. Today, many people suffer from lactose intolerance - according to the European 42

Food Safety Authority (EFSA) up to 70% of adults worldwide are affected. This makes them unable to consume milk-based products. Lactose accounts for about 5% of whole milk and is found in most fresh dairy products. Lactose intolerant people do not have a sufficient amount of the lactase enzyme, which normally splits lactose into 2 moieties: glucose and galactose before absorption. Due to the absence of this enzyme, lactose enters into the large intestine, where bacteria begin a fermentation process. As a consequence of this fermentation, the lactose intolerant person will suffer from side effects including abdominal pain, bloating, diarrhoea or nausea. At the moment, the most important markets for lactose-free food products are Germany, Austria, the UK and the Scandinavian markets (mainly Finland), FOOD & DRINK BUSINESS EUROPE, MAY 2012

despite the fact that less than 20% of the population in these countries is lactoseintolerant. The frequency of lactose-intolerance is much higher in Southern European countries, Africa and Asia. This discrepancy promises a significant potential for the lactose-free food industry in those regions. J

Kerry Ingredients & Flavours Opens New Emulsifier Plant in the Netherlands erry Ingredients & Flavours K has opened a new emulsifier plant in Zwijndrecht, The Netherlands. The new facility doubles the installed capacity for emulsifiers in The Netherlands and broadens the technology offering of Kerry in Europe to include distilled product types. It will also absorb volumes which are currently produced in Kerry’s emulsifier plant in Port Klang, Malaysia, freeing up capacity to support growth in the APAC market. Rene Kamminga, vice president of lipids, emulsifiers and texturant systems, Kerry EMEA comments: “Emulsifiers are

an important part of the ingredient offering of the company worldwide. Over the past five years the group has continuously invested in the capacity and capability of its emulsifier technology footprint to respond to the growing demand for cost

effective and sustainable solutions.” The Zwijndrecht plant is RSPO certified for mass balance (MB) and segregated (SG) palm oil to support customers in their sustainability programmes. The new facility also allows Kerry to competitively offer alternatives to palm, such as rape seed oil and sunflower oil based products With emulsifier plants in Port Klang and in Zwijndrecht, the latest investment positions Kerry as a world leader in the cost effective manufacture and sale of food emulsifiers. J

Supermarkets and Producers Working to Bring Responsible Soy to Market U and UK supermarkets are taking steps towards closer involvement in the Round Table for E Responsible Soy (RTRS). The participating retailers including Mark & Spencer, Waitrose, Sainsbury’s, Asda, Co-operative Food, Ahold (Netherlands), Coop (Switzerland) and Migros (Switzerland), have all made commitments that the soy used for own brand products will come from certified responsible soy sources. RTRS retail members, who include most of the leading UK supermarkets, aim to work with soy producers to purchase certified responsible soy. Soy is used in many household staples such as margarines, spreads and cooking oils, as well as being the main source of protein of livestock feeds. RTRS certified soy has been produced in Argentina, Brazil, Paraguay and India. Other nations including China are expected to begin producing RTRS certified soy in the near future. J

European Commission Adopts Landmark List of Permitted Health Claims list of 222 health claims has been A approved by the European Commission. This list, which is based on sound scientific advice, will be used throughout the EU and will also help to remove misleading claims from the market before the end of the year. Health claims on food labelling and in advertising, for example on the role of calcium and bone health or vitamin C and the immune system, have become vital marketing tools to attract consumers’ attention. Therefore EU consumers expect accurate information on products they buy, in particular on the health claims the products may put forward. Claims for which the authorisation

process is complete will be listed in the Union Register of nutrition and health claims made on foods, as required by Regulation (EC) No 1924/2006 on nutrition and health claims made on foods. This Union Register is an interactive database and is on the Commission's website. Food manufacturers will have a period of 6 months to adapt their practices to the new requirements. As from the beginning of December 2012 all claims that are not authorised and not on hold/under consideration shall be prohibited. The list that has now been adopted today by the European Commission contains 222 claims, representing nearly 500 entries from the consolidated list. More

than 1600 of these entries will not be authorised. For the rest, the authorisation process is in the process of being finalised. It is the responsibility of the Member States' authorities to enforce the rules on health claims. J

FOOD & DRINK BUSINESS EUROPE, MAY 2012

I AUTOMATIC PLATE FREEZING

DSI – The Global Expert in Automatic Plate Freezing aving helped to pioneer the development H of automatic plate freezing for the food industry, Danish engineering company DSI (Dybvad Stal Industri) is now a world leader in this field. DSI specialises in designing and manufacturing both manually-operated and automatic plate freezers. Founded in 1969, the enterprising company has accumulated many years of experience and expertise in supplying plate freezers for the food industry globally. DSI offers a high quality range of vertical and horizontal plate freezers suitable for use throughout the food industry such as in the fishing (both onshore and offshore), meat, poultry, juices and vegetables sectors. All DSI’s vertical and horizontal plate freezers can be supplied with automatic loading and unloading systems DSI’s focus is to optimise the operating performance, reliability and overall efficiency of its plate freezers, to ensure that they meet the changing requirements of customers. Pioneer

DSI has been involved in automatic plate freezing for the last twelve years. It manufactured the very first vertical plate freezer with an automatic unloading system in 2000. In 2007, DSI manufactured the very first vertical plate freezer with an automatic bottom discharge system. Four units of this freezer were installed on board a Norwegian fishing trawler. The main reason for using an automatic plate freezing solution at that time was to reduce the heavy lifting of frozen blocks by the crew on board the vessel. “Since 2005 we have seen a large increase

systems can be tailored to meet each customer’s specific requirements. A recent project, which illustrates the company’s expertise in automatic plate freezing, entailed the installation of ten vertical plate freezers at Agri Norcold in Denmark for meat production with an automatic overhead crane system for automatic loading and unloading. The system is operated by just two people. Ten vertical plate freezers of a similar type have also been installed at Grolleman in Holland. in the demand for automatic solutions and in this respect DSI has developed a wide range of vertical and horizontal plate freezers suitable for different types of automatic block handling,” explains Peter Christensen, sales director of DSI. Latest Development

He continues: “The latest development is an inline horizontal plate freezer with a single opening station system. This means that you are only opening the freezing station that you want to load/unload. A row of blocks are pushed into the freezer at the front side and a row of frozen blocks are then pushed out at the back end of the freezer, while the other stations are still freezing. This ensures a constant pressure on the blocks and a minimal drip loss from the product equals savings.” Most of DSI’s installations of automatic loading and unloading systems have been in the fishing, meat processing and pet food sectors. The key advantages of using automatic plate freezer systems are reductions in labour costs and heavy lifting, faster freezing cycles and higher freezing capacities. “DSI has the widest range of vertical and horizontal plate freezers all suitable for automatic loading and unloading. We also specialise in custom made solutions,” points out Peter Christensen. “We have established close co-operation with process equipment manufacturers who supply automatic loading and unloading systems, which are fitted to DSI plate freezers.”

Global Coverage

Based in the town of Dybvad in Northern Jutland, DSI employs more than 45 skilled people at its modern 7,000 sq m manufacturing facility. DSI carries out projects of all sizes and, by working in close co-operation with refrigeration contractors globally, supplies customers throughout the world. DSI’s plate freezers are currently in operation in a wide variety of international markets, including Norway, Iceland, Czech Republic, Bulgaria, Croatia, Switzerland, USA, Canada, Russia, South and Central America, Oceania, Africa, Middle East and Korea. The high quality of the products and service DSI provides to customers has been central to the engineering company’s success. DSI’s plate freezers are known throughout the industry for their reliability. They have a long life span, are easy to clean and have very low maintenance costs. Indeed, DSI’s very first freezers, manufactured in 1979, are still in operation today. DSI also provides rapid after service support in terms of spare parts or maintenance requirements. J

Flexible Solutions DSI recently installed ten vertical plate freezers at Agri Norcold in Denmark for meat production with an automatic overhead crane system for automatic loading and unloading.

DSI can design and manufacture a wide range of freezers with different automatic loading and unloading systems to ensure optimal performance. Indeed, DSI’s automatic freezer FOOD & DRINK BUSINESS EUROPE, MAY 2012

The new system at Agri Norcold is operated by just two people.

I ANAEROBIC DIGESTION

Evaporator Design Makes Best Use of Waste Heat scraped surface evaporator A supplied for digestate liquor treatment at Scottish and

organic effluent sludge’s. Anaerobic digestion is a natural biological process that uses bacterial cultures within enclosed silo tanks to generate methane-rich biogas from waste organic materials and energy crops such as grass silage. The Barkip plant will use a high-temperature thermophilic two-stage digestion process supplied by Danish technology firm Xerg, which will see heat being captured from the generation process and used to concentrate the liquid fraction of the digestate into a nutrient-rich liquid fertiliser. Steven Pither, Managing Director of HRS Heat Exchangers, comments: “HRS is proud to associate itself with such a pioneering project. Our selfcleaning evaporator system has the capacity to overcome fouling issues in a digestion plant. We're proud to operate in a sector where innovation can save energy, reduce waste, and CO2, and improve final product quality without harming the environment.”

Southern Energy's (SSE) Barkip anaerobic digestion plant has played a key energy saving role in recovering waste heat, which is used in the process as well as being exported as renewable energy. HRS Heat Exchangers, a leading heat transfer specialist for the process industry, has delivered a scraped surface vacuum evaporator, which is operating at the Barkip anaerobic digestion plant at a former landfill site in North Ayrshire. The plant was the first of its kind to incorporate a digestate processing stage. Waste heat from the CHP engines is used to concentrate the liquid fraction of the digestate into a nutrient rich liquid fertiliser. HRS technology enables the Barkip plant to process 75,000 tonnes of waste annually, in a plant setup that also produces around 2.5MW of electricity for the Scotland’s renewable energy industry. At the heart of this technology is HRS’ Unicus dynamic scraped surface heat exchanger that ensures that any high organic load in contact with hot surfaces does not lead to fouling, which is a common problem when organic digestate is evaporated. For many environmental applications, standard evaporation technologies are not ideal and do not achieve the desired optimum thermal and waste recycling performance. The HRS patented technology provides continuous cleaning for the evaporator walls so that plant can work continuously with very little maintenance, at times for more than six months. “The evaporator from HRS was chosen not just for its operational performance, but because the quality of the team behind the product is excellent," says Pat Howe, Project Manager at Barkip Anaerobic

Digester Plant. “When we made enquires about the product and its suitability we were immediately offered the opportunity to see this type of equipment in operation. As a customer that level of confidence in a product with a proven track record is vitally important.” When SSE commissioned Scotland’s largest biogas plant last summer, the generator became the first energy company in the UK to commit to construction and operation of an anaerobic digestion biogas plant of this type. The Barkip site will be capable of processing around 75,000 tonnes of waste annually, producing around 2.5MW of electricity that will contribute towards Scotland’s renewable energy targets. Feedstock materials for the plant, which are mainly selected to divert waste away from landfill, include waste foods, manures and

FOOD & DRINK BUSINESS EUROPE, MAY 2012

The Process at the Barkip Anaerobic Digester Plant Digestate from the process will first feed into a centrifuge to separate the liquor and fibre fractions. The digestate liquor is then pre-treated with acid prior to evaporation within the scraped surface heat exchangers to prevent ammonia loss within the evaporator. The volume of acid dosed is dependent on the digestate and the desired retention. Within the evaporator the liquor is concentrated to approximately 20% DS. The evaporator operates under vacuum at temperatures between 50°C and 70°C. Heat required for the process is provided by the combined heat and power plant (CHP). This application of heat is eligible for the RHI. The evaporators at Barkip will be fed at 10,800 kg/h and produce 1565 kg/h of

concentrate. The concentrate can then be mixed with the separated digestate fibre to produce a nutrient rich solid fertiliser for export. Distilled condensate for the process will be recycled as process water with any excess discharged to sewer. For this application the heat exchanger tubes have been constructed from Duplex steel due to the high content of chlorides within the waste feed. Key benefits include: • Nitrogen retained within the digestate • Concentrated fertiliser reduces transport costs • Additional income from RHI • High levels of N/P/K retained within the digestate. HRS Heat Exchangers HRS Heat Exchangers (part of the HRS Group) is a leading international heat transfer specialist offering innovative solutions to the processing industry.

Headquartered in the UK, HRS Heat Exchangers operates at the forefront of processing technology and for over 30 years has designed, manufactured and sold heat exchangers and heat transfer technology to many different industries. HRS products and system solutions have been used in such sectors as HVAC, food,

chemical, pharmaceutical, water supply, energy recovery, waste to energy and environmental protection. All HRS products are manufactured to ISO 9001 and comply with the European PED, and are also certified to the ASME “U” stamp standard. HRS Heat Exchangers offers a wide range of heat exchangers and associated products including corrugated tube shell and tube, scraped surface and plate heat exchangers, together with a hygienic piston pump and packages such as pasteurisers, CIP and food processing systems. HRS also manufactures a patented selfcleaning scraped surface evaporator system for solids concentration. HRS has offices in Spain, Germany, USA, Peru, Dubai, Kuala Lumpur and India as well as manufacturing and assembly plants in the UK, India, Dubai and Spain. To learn more about HRS Heat Exchangers, visit www.hrs-heatexchangers. com. J

Anaerobic Digestion Loan Fund to Support New AD Capacity he Anaerobic Digestion Loan Fund T (ADLF) is a £10 million fund designed to support the development of new AD capacity in England. The fund aims to support 300,000 tonnes of annual capacity to divert food waste from landfill by 2015. The ADLF will offer direct financial support to organisations that are interested in building AD capacity in England in order to provide digestate of sufficient quality for

a variety of UK markets and to generate renewable energy in the form of biogas through the diversion of food and other organic resources. The ADLF also aims to ensure that the material is diverted from landfill or from other, less environmentally sustainable operations, up the waste hierarchy. If you have a project to develop AD processing capacity and are finding it difficult to obtain asset finance from the usual commercial sources, WRAP may be able to help. The fund can provide asset backed loans for plant, machinery and/or groundworks. The typical maximum loan is £1 million, requests for loans above this will be considered only at the discreFOOD & DRINK BUSINESS EUROPE, MAY 2012

tion of the Investment Committee. The maximum term of the loan is five year though early repayment or shorter terms are regarded favourably. Investment levels are a minimum of £50,000 and a maximum of £1,000,000. The ADLF will be administered by the Accelerating Growth Fund, a wholly owned subsidiary of WRAP. For further information visit www.wrap.org.uk. J 47

I SUSTAINABILITY

Coca Cola Enterprises and ECO Plastics Deliver Step Change in British Plastics Recycling oca Cola Enterprises and ECO Plastics have officially opened their groundC breaking joint venture, Continuum Recycling, which is the world’s largest plastics processing facility. Completed on time and on budget, the £15 million facility is a first for Great Britain, and brings the recycling process full circle, with used plastic packaging sorted and reprocessed domestically, before returning to store shelves as part of another bottle. The Continuum Recycling plant will more than double the amount of bottlegrade recycled plastic (rPET) previously created in Britain, and will allow CCE to meet its commitment to use 25% rPET in all its bottles by the end of 2012. The factory is located at ECO Plastics' existing site in Lincolnshire, which, with the additional capacity, becomes the world's largest and most sophisticated plastics recycling facility, capable of processing 150,000 tonnes of mixed plastics a year, including

40,000 tonnes of bottle grade rPET pellet. Continuum Recycling will be used this summer by Coca-Cola as part of an initiative to collect Coke and additional PET soft drinks bottles and turn them back into new bottles on the shelves within six weeks. Continuum Recycling is the first time that the beverage and recycling industries have formed a long-term strategic partnership and will provide CCE with high quality rPET for a minimum of ten years. It will save around 33,500 tonnes of CO2 per year, the equivalent of taking over 15,715 cars off the road. “Our investment in Continuum Recycling shows that we are serious about setting the industry standard for sustainable packaging,” comments Simon Baldry, managing director of Coca Cola Enterprises. “This is a first for the industry and an important milestone in our ongoing efforts to build a low-carbon,

zero waste business here in Great Britain.” ECO Plastics is Europe's leading ethical plastic bottle recycler. The business began re-processing post consumer plastics in 2006 and has over the past five years invested over £17 million to quadruple its processing capacity and triple the factory footprint. During early 2009 it became the first UK company to receive food grade accreditation for its rPET resin. J

Grass-fed Beef is Best eeding cattle on grass throughout their F lifecycle is the most environmentally sustainable way to rear beef, according to new research commissioned by the National Trust in Britain. One of the biggest global challenges is how to increase food security whilst reducing the environmental impacts of food pro-

duction. Livestock - like cattle and sheep produce high levels of methane as part of the process of digesting grass. This has led to suggestions that intensive production methods – where cattle are fed largely on cereals, producing less methane – should be preferred over more traditional grass fed livestock farming. However, research at ten National Trust farms shows that while the carbon footprint of grass-fed and conventional farms were comparable, the carbon sequestration contribution of well-managed grass pasture on the less intensive systems reduced net emissions by up to 94 per cent, even resulting in a carbon 'net gain' in upland areas. The farms that had recently converted to organic status showed even greater gains. Rob Macklin, national agriculture and food adviser at the National Trust, comments: “The results are contrary to recent thinking that livestock farming methods FOOD & DRINK BUSINESS EUROPE, MAY 2012

must intensify further in order to lessen carbon emissions to feed an ever-increasing world population. Maximising carbon efficiency alone is too simplistic. Many less intensive livestock systems would be classed ‘inefficient’ on the carbon emission scale, yet are much less reliant on artificial inputs and tend to have less impacts on water quality, loss of soil organic matter and reduced biodiversity.” He adds: “We believe that optimised beef production – deliberately accommodating less than maximum output in order to secure stronger and broader ecosystem protection – is the best sustainable use for the grasslands in our care. The debate about climate change and food often calls for a reduction of meat consumption and a more plant based diet, but this often overlooks the fact that many grasslands are unsuitable for continuous arable cropping.” J