APRIL 2020
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APRIL 2020
Closing the Loop Taking food packaging recycling to the next level
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ood packaging has always been a problem. In this issue we find TerraCycle’s CEO Tom Szaky being very upbeat about what we can do about the problem. And why wouldn’t he be. His company is at the forefront of a new revolution in the packaging industry – reuse. It takes recycling one step further by making containers and packaging that can be cleaned using the Loop system. Without going into it too much (see the full story on page 22), it takes co-operation between the brand, the retailer and the consumer. Will it take off? Who knows, but if Szaky has his way it’ll become part of the recycling/ reuse vernacular
within the next two years. Speaking of recycling, Australian company Martogg not only uses virgin resin to make PET bottles, but also recycles them to be reused in the beverage industry. The company readily admits that using resin only would be cheaper, but more of its clients are wanting to use the recycled version. Not only because they have a social and environmental conscience, but also because Martogg’s clients’ customers are demanding it. Also check out our Food & Beverage Industry News awards story on page 44, which looks at an form of powdered wine that is alcohol-free. Have a great month.
INSIDE Copyright Food & Beverage Industry News is owned by Prime Creative Media and published by John Murphy. All material in Food & Beverage Industry News is copyright and no part may be reproduced or copied in any form or by any means (graphic, electronic or mechanical including information and retrieval systems) without written permission of the publisher. The Editor welcomes contributions but reserves the right to accept or reject any material. While every effort has been made to ensure the accuracy of information, Prime Creative Media will not accept responsibility for errors or omissions or for any consequences arising from reliance on information published. The opinions expressed in Food & Beverage Industry News are not necessarily the opinions of, or endorsed by the publisher unless otherwise stated. © Copyright Prime Creative Media, 2019 Articles All articles submitted for publication become the property of the publisher. The Editor reserves the right to adjust any article to conform with the magazine format. Head Office 11-15 Buckhurst St South Melbourne VIC 3205 Ph: +61 3 9690 8766 enquiries@primecreative.com.au http://www.primecreative.com.au Sydney Office Suite 303, 1-9 Chandos Street Saint Leonards NSW 2065, Australia Ph: (02) 9439 7227
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32 TECHNOLOGY
43 AIP
22 THOUGHT LEADERSHIP
34 HYGIENE
26 ENERGY EFFICIENCY
36 FOOD PROCESSING
44 FOOD & BEVERAGE AWARDS
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40 PLANNED MAINTENANCE
30 SUSTAINABILITY
42 CONSUMER
47 DAIRY REPORT 48 MARKETWATCH 49 NEW PRODUCTS
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www.foodmag.com.au | April 2020 | Food&Beverage Industry News 5
NEWS
New app helps find allergens on restaurant menus
A new food app will help diners with dietary restrictions.
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ith claims that more than a third of Australians are living with a food allergy, intolerance or lifestyleled dietary preference (AIL), one company believes there is a need for a more streamlined way to help diners choose where and what to eat without having to compromise on being negatively affected by food consumption.. A new Melbourne-based technology business, TLRT Foods (pronounced tolerate), is set to look at the way people with dietary restrictions and food preferences are eating out. For a limited time, TLRT is offering restaurants options free menu on-boarding under the guidance of TLRT’s expert dietitian team, led by Dr Jaci Barrett and Mel Adamski, and chef advisor and Huxtaburger founder Daniel Wilson. Using a combination of nutritional expertise and cutting-edge health tech,
TLRT works with restaurant kitchens to identify more than 20 AILs across a menu, which is then uploaded into the TLRT app. Diners download the app for free, create a profile, search participating restaurants on the platform, and their preferences are automatically cross-referenced against menus to let them know what’s suitable to eat. Following a trial engaging more than 7,000 dinners across more than 30 local restaurants, TLRT is looking to rapidly expand its restaurant and customer bases in conjunction with its crowd funding campaign partner, Birchal, which also enables anyone the chance to invest now during the genesis of this initiative. “Not only will TLRT help restaurants to ensure they have readily accessible nutritional information, it will alleviate pressure on floor staff often fielding many, and sometimes complex or unclear, questions,” said TLRT managing director, Adam
6 Food&Beverage Industry News | April 2020 | www.foodmag.com.au
Copolov. “By being on the app, restaurants and cafes that care about accessibility will be more visible too. “Before we started our trial, up to 76 per cent of participants surveyed confirmed they had been to a restaurant they thought could cater their dietary requirements but found – when the food was served – it wasn’t suitable. “A second survey within our trial period found 84 per cent of people had successfully used TLRT to help them decide where they’d eat out. “So TLRT’s driving people to restaurants, not just helping them on the spot.” A recent survey by Allergy & Anaphylaxis Australia (A&AA) uncovered the fact that 70 per cent of people living with an allergy or intolerance felt uncomfortable when dining out. Maria Said, CEO of A&AA, applauds TLRT for its innovation and effort to support this group.
“Knowing restaurants take food allergy seriously – and will make accommodations – helps build consumer confidence. A&AA, however, reminds people with food allergy to always disclose their allergy and ask questions on food content on arrival at any restaurant. They must also always have their emergency medication with them as accidents are never planned.” TLRT has been in development for the past two years, utilising more than 200,000 data points with Tech Lead and fourth co-founder, Matthew Rose, being confident it provides a level of clarity, in a user-friendly format, which is not currently available. The business is aiming to be the go-to food preference platform, helping consumers feel as if they have a dietitian in their pocket when dining out, while helping restaurants market to a niche group of consumers that are looking for a better alternative to find where to eat out with confidence.
NEWS
Long-term view key to $100 billion agriculture target R
eaching the target of $100 billion in agricultural output will require industry to take a long-term view, and continue to take hard choices that lift farm productivity and keep Australian exports competitive against rivals, ABARES executive director Dr Steve Hatfield-Dodds told the 2020 ABARES Outlook Conference in Canberra recently. “We have enjoyed a run of favourable output prices, particularly for livestock products. These higher prices have accounted for about 90 per cent of the increase in output value over two decades,” HatfieldDodds said. “While we all hope prices stay favourable, which ABARES considers likely for livestock over the next few years, getting to $100 billion will require hard work and tough choices.” Hatfield-Dodds listed several steps that would be vital to meeting
the National Farmer Federation’s goal of lifting the value of Australian agricultural production to $100 billion over the next decade, including maintaining the trend towards larger farms, as well as improvements in harnessing data and managing precious natural resources. “Increased farm scale has accounted for more than two thirds of the growth in average broadacre farm income since 1990. Indeed, without this increase in scale it is not clear if farming would be financially attractive to the next generation,” he said. “Farm consolidation helps diffuse better management practices, and many technologies and capital equipment have economies of scale.” While farmers were already adapting to drier conditions over the past two decades that were impacting on farm profits, Dr Hatfield-Dodds said more challenges lay ahead. Australia has one of the world’s
most sophisticated water trading markets, designed to ensure water on the driest inhabited continent was put to best economic use. “ABARES finds water trade delivers an average of $150 million in increased output value in the Murray Darling Basin each year – and four times that amount in a very dry year,” he said. “Some communities are concerned about water trade moving water out of their region, and water recovery feels very here and now, while the benefits of a healthy working river feel distant – particularly in times of drought. “We know that water markets are complex, and can be difficult to understand. ABARES analysis finds a combination of factors are putting upward pressure on price of water allocations. “The fundamental driver is that water markets have unlocked new opportunities. People see these
opportunities and are willing to bid for water to take advantage of them. “Moving from old patterns of water use to new ones can be disruptive. But it is also what puts food on the table, and keeps industry profitable. “Recent perennial plantings, particularly of almonds, will help boost the value of Australian agriculture. That is important. These same almonds will also require more water as they come to maturity. “This and other factors will see an ongoing trend towards higher average prices – benefiting entitlement holders, but adding to the pressures on some farms and sectors.” In an increasingly connected and competitive world, Dr Hatfield-Dodds said the producers and exporters of tomorrow must continue to focus on understanding consumers’ wants and needs, including being ready to substantiate claims around clean, healthy, and sustainable food.
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NEWS
How many times can you fry your chips with Canola oil? C
harles Sturt University research comparing canola oil processed using different techniques has found differences in frying life – that is the number of times the oil can be reused. The project at the Australian Research Council (ARC) Industrial Transforming Training Centre for Functional Grains examined the quality of canola oil samples used to fry potato chips for 36 to 48 cycles. Charles Sturt University post doctoral researcher, Dr Randy Adjonu, presented the research at
the recent World Congress on Oils and Fats in Sydney. “The number of times you use canola oil for frying impacts on the taste and health properties,” Adjonu said. “Our research has found the extraction and processing method can significantly impact the frying life of canola oil, with differences of up to 30 per cent. “Crude canola extraction methods include cold pressing, expeller pressing where the seed is heat treated before extraction, and expeller processing followed
by solvent extraction. “It’s not as simple as saying one extraction or processing method is better than another in terms of frying life though, as there were differences between samples extracted using similar techniques. “More research is needed to pinpoint how extraction and processing influences frying life, so processors can use this information to improve their product.” Adjonu said increasing frying life has the potential to deliver benefits to end users, processors and
canola growers. “The more times you can use the oil without compromising the quality increases its value for money,” Adjonu said. “Increasing the frying life is one way that Canola oil processors can add value to their product. “Much of Australia’s canola is currently exported for biodiesel production, and increasing the value of oil crushed locally for human consumption is one way we can ‘future proof’ our industry against volatility in the world markets.”
Dr Randy Adjonu said if you can increase the frying life of oil it will save money. www.foodmag.com.au | April 2020 | Food&Beverage Industry News 9
NEWS
World’s smelliest fruit could charge your mobile phone
The world’s smelliest fruit could be a super-capacitor.
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University of Sydney researcher has developed a new method using the world’s most repulsive smelling fruit. Turning durian waste into super-capacitors could “substantially reduce” the cost of energy storage and charge devices quickly. Imagine if it was possible to use naturally-grown products, like plants and fruit, to store the electricity that charges commonly used electronics, like mobile phones, tablets, laptops or even electric cars? Researchers from the University of Sydney have done just that, and have developed a method that uses durian and jackfruit waste to create energy stores for rapid electricity charging. School of Chemical and Biomolecular Engineering academic associate professor Vincent Gomes, explained how he and the research team managed to turn the tropical fruits into super-capacitors.
How does it work? “Using durian and jackfruit purchased from a market, we converted the fruits’ waste portions (biomass) into super-capacitors that can be used to store electricity efficiently,” said associate professor Gomes. “Using a non-toxic and non-hazardous green engineering method that used heating in water and freeze drying of the fruits’ biomass, the durian and jackfruit were transformed into stable carbon aerogels – an extremely light and porous synthetic material used for a range of applications. Carbon aerogels make great super-capacitors because they are highly porous. We then used the fruit-derived aerogels to make electrodes which we tested for their energy storage properties, which we found to be exceptional.”
What are super-capacitors? Super-capacitors are like energy reservoirs that dole out energy
10 Food&Beverage Industry News | April 2020 | www.foodmag.com.au
smoothly. They can quickly store large amounts of energy within a small battery-sized device and then supply energy to charge electronic devices, such as mobile phones, tablets and laptops, within a few seconds. Compared to batteries, supercapacitors are not only able to charge devices very quickly but also in orders of magnitude greater charging cycles than conventional devices. The current super-capacitors are made from activated carbon which are not as efficient as the ones prepared during this project.
Why durian and jack fruit? Durian waste was selected based on the excellent template nature provides for making porous aerogels. The durian and jack-fruit super-capacitors perform better than the materials currently in use and are comparable, if not better, than the expensive and exotic
graphene-based materials. Durian waste, as a zero-cost substance that the community wants to get rid of urgently due to its repulsive, nauseous smell, is a sustainable source that can transform the waste into a product to substantially reduce the cost of energy storage through our chemical-free, green synthesis protocol.
What could this technology be used for? We have reached a point where we must urgently discover and produce ways to create and store energy using sustainably sourced materials that do not contribute to global warming,” said associate professor Gomes. Confronted with this and the world’s rapidly depleting supplies of fossil fuels, naturally derived supercapacitors are leading the way for developing high efficiency energy storage devices.
NEWS
FIAL announces $500,000 fund to support food and agribusiness innovation F rom low-sugar beverages to energy-efficient technologies and snacks from sustainable food sources, Food Innovation Australia Limited (FIAL) has supported a diverse range of innovation projects in Australian food and agribusinesses. This grassroots involvement has given FIAL a front-row seat to knowing that innovation is central to the sector’s continued growth. Particularly in light of the current challenges affecting Australia – drought, flood, fire, and viral epidemics. FIAL has announced its Black Summer Innovation Fund – providing $500,000 to support innovation in Australian food and
The FIAL fund will provide up to $25,000 to a small business.
agribusinesses impacted by recent events like the bush fires and summer storms. “Backing Australian food and
agribusinesses from the bottom-up during times of adversity is crucial,” said FIAL managing director, Dr. Mirjana Prica.
FIAL’s Black Summer Innovation Fund will provide businesses with up to $25,000 to support the development of new products and services. This fund is unique in that businesses are not required to match the value of grant awarded. It aims to encourage food and agribusinesses to think differently about their challenges, using innovation to supercharge their business. Businesses can partner with technical experts and researchers across the sector to identify commercially relevant innovation opportunities. These could be the development of novel food processing, packaging and agricultural technologies for their new future.
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www.foodmag.com.au | April 2020 | Food&Beverage Industry News 11
NEWS
GFNC said to guarantee macadamia food safety with Napasol pasteurisation technology
Napasol is being used to meet safety requirements in the macadamia industry.
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outh Africa-based Green Farms Nut Company (GFNC) has announced its investment into foremost Napasol pasteurisation technology, to meet and surpass current and future food safety requirements in key export destinations around the world. This decision underscores the organisations ongoing commitment to deliver best-in-class quality product to its customers, as well as secure value for its supply base of producers and farmers. According to the World Health Organisation (WHO), globalisation, urbanisation and changing consumer habits has resulted in a longer and increasingly complex global food supply chain. These challenges put greater responsibility on food producers and handlers to ensure food safety. The WHO urges building and maintaining focus on adequate
food systems and infrastructures, like laboratories and legal frameworks, as well as multi-sectoral collaboration between governments and stakeholders through the value chain. “GFNC is pleased to be in the position to proactively take responsibility for our role in the ongoing and inevitable changes taking place in the food industry at large, and macadamia sector more specifically. This decision is a crucial part of our strategy to continue growing and refining processing capability. In so doing retain value add capacity and supply chain accountability at source in South Africa,” said Allen Duncan, CEO, GFNC. Approximately 25 per cent of South Africa’s macadamias are processed by GFNC. Together with its processing partner network, spanning Australia, Brazil, Malawi and Kenya, the groups marketing business, Green
12 Food&Beverage Industry News | April 2020 | www.foodmag.com.au
& Gold Macadamias sells roughly 20 per cent of the world’s crop in key territories around the globe. This purchase represents the initial move to making further investment into technology that warrants compliance with increasing microbiological safety standards and global access to highly regulated markets. The Napasol process ensures 100 per cent of the treated product is pasteurised to a greater than 5log level of reduction of pathogens and is regarded as the market leader in pasteurisation equipment for tree nuts. Efficient microbiological reduction is obtained with dry saturated steam, which is natural, effective, and maintains the raw characteristics of the nut. The batch process, which is validated for greater than 5log reduction in pathogens for all tree nuts, meets the risk assessment reduction levels published. The process also preserves
the flavour, colour and texture of the raw kernel. “This outlay will sustain bullish market access for the business, provide the best quality product to our customers, and provide the opportunity to achieve the best possible prices for our farmers. Together with buffering our producers from potential knock-on effects of macadamias that do not meet food safety legislation,” said Jill Whyte, chairperson and owner, GFNC. The Napasol is planned for installation at the White River factory in the second half of 2020 and should be operational for the remaining 2020 processing cycle. GFNC will have capacity to assist competitor processors with their pasteurisation needs until the decision is taken to invest in their own technology to support market and customer requirements.
NEWS
HelloFresh meal kit service set for expansion T
he world’s largest meal kit provider is set to expand its production facilities in New Zealand by more than ten times its current size with the opening of its new distribution centre. Staffing levels at the new HelloFresh distribution centre will also be increased by up to 50 per cent – with recruitment for a range of Auckland based operational roles currently underway. The move comes just over a year after launching in New Zealand and is driven by its rapid growth throughout the North Island. The company’s meal-kit model delivers fresh ingredients and easy-to-follow recipe cards to customers’ front door weekly. Tom Rutledge, HelloFresh NZ CEO, said the new production facilities will allow the company to expand its regional distribution to new parts of the country and diversify their current product portfolio.
“The exceptional level of support for the brand has seen us hit a number of key milestones last year and has allowed us to bring forward our expansion plans. “The new production facility is a key strategic step for HelloFresh, and we’re excited about what this means, for both our customers and our suppliers who are on this journey with us. “Further growth will allow us to expand our production volumes, which will provide greater opportunities for fresh local produce and meat suppliers. While, at the same time, permitting us to expand on our product offering to meet the changing nutritional and convenience needs of Kiwis,” he said. Rutledge said the new 9000sqm Mount Wellington site in Auckland’s industrial hub includes modern warehousing, which can maintain temperatures for a variety of fresh
HelloFresh is opening a new distribution centre to give it more capacity. ingredients in zones ranging from -20˚C to 21˚C degrees, will support the latest production technology and facilitate new employment opportunities. He said the new technology will reduce the time it takes to pack a meal kit by 30 per cent and increase precision. The machinery will also allow for higher customisation, with customers being
able to select from more options and further tailor their box according to their household’s preferences. The company will also use the move into the new warehouse to fast forward its focus on sustainability. Opening up opportunities to further innovate its packaging solutions to ensure boxes arrive safe and fresh in the most sustainable way available.
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www.foodmag.com.au | April 2020 | Food&Beverage Industry News 13
NEWS
New exchange platform looking for milk
Milk2Market’s Milk Exchange offers transparent pricing.
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n the sidelines of the 2020 Australian Dairy Conference, Milk2Market head of corporate development, Richard Lange, said the company’s new Milk Exchange had received a large volume of registration applications and enquiries from both farmers and processors. “The current milk shortage is clearly a key driver of the strong response to the opening of the Milk Exchange.” Lange said strong farmer interest in the Milk Exchange was also a sign of farmers’ growing confidence that higher profitability can be achieved through commercial as well as technical innovation.
The Milk Exchange offers farmers a traded transparent price, and the choice of managing their individual risk and accessing higher value for their milk. “Selling some or all of their milk on the Milk Exchange allows farmers to manage their risk according to their individual circumstances and to back in their operational productivity improvements by accessing better returns.” “The way the dairy industry has operated to date – where farmers commit a whole year’s production at an ‘annual price’ – has managed risk in a blunt way that left value on the table.” Lange said the Market Exchange,
14 Food&Beverage Industry News | April 2020 | www.foodmag.com.au
for the first time, gives the dairy sector a market that allows farmers to capture greater value in times of high competition for milk. “Farmers can’t access full value and returns that match the risk they take unless they get fair and transparent pricing and the opportunity to sell to whichever buyer values their milk the most. “The current spot price is over 60 cents per litre and the average contract price is under 50 cents. The Milk Exchange gives farmers a way to access some of that upside.” The commencement of the Milk Exchange means that Australian dairy farmers will go from only having access to local buyers, to having
access to buyers all over the country. “The Milk Exchange is a natural evolution for the Australian dairy sector, bringing it into line with other agriculture sectors. In a real market, sellers help set the price. They don’t just take it,” said Lange. He said that processors were embracing the Milk Exchange because it will benefit them as well as farmers, directly as a supply channel and by helping to create a more efficient market in which farmers can profitably produce more milk. “Lifting profitability across the dairy industry requires that processors get more milk volume. This requires that farmers can capture greater value from their hard work,” said Lange.
NEWS
Baby food packaging designed for the future of recycling N
estlé has launched what it has said is the first-ofits-kind, single-material pouch for its baby food products, and has been designed for the future of recycling. In the US, the new pouch will be available on TheGerberStore.com for Gerber‘s Organic Banana Mango Puree beginning in May 2020. It will be 100 per cent recyclable through Gerber‘s national recycling program with TerraCycle. In Finland, the pouch will be available for Piltti’s Apple Pear Blueberry Raspberry sold in supermarkets. “We are proud to have found a solution for the recyclability of baby food pouches,” said Thierry Philardeau, head of the nutrition strategic business unit for Néstle. “We began in the U.S. and Finland for two product variants, and we aim to gradually extend
the use of single-material pouch to our baby food pouches range globally.” This is in line with Nestlé’s commitment to make 100 per cent of its packaging recyclable or reusable by 2025. The newly designed-tobe-recyclable pouch is made from polypropylene (PP), a versatile form of plastic that is available commercially. This switch is expected to make more plastics infinitely recyclable and increase the value of the material for the recycling industry. “This launch is an important milestone on how we execute our ambition to create a wider market for recycled plastics that are safe for food. “We will continue to work with other stakeholders to ensure that the infrastructure needed to recycle matches material innovation,” added Philardeau.
The baby food pouch is made from polypropylene.
Australian Circular Recycling Martogg is an Australian, privately owned business, who has serviced the Australian and Regional Plastics industry since 1975. In recent years, Martogg saw the need for a sustainable alternative to virgin PET for rigid packaging applications and in October 2016 commissioned the first of three Vacurema® lines, to produce food grade recycled PET. Martogg Group’s own brand of recycled PET, marPET®, is produced in Victoria using Vacurema® Technology. As demand for food-grade rPET is growing worldwide, Martogg have committed to expanding their capacity to support Australia’s packaging manufacturers. Martogg recently started up its second rPET processing line and will have added a third line by mid-2020, this will increase their total marPET® recycling capability to 23,000 tonnes per annum. Martogg is committed to working with businesses and brands to achieve corporate sustainability targets, through supply of locally produced rPET, which is recognised globally for it its quality.
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www.foodmag.com.au | April 2020 | Food&Beverage Industry News 15
NEWS
Berry waste finds new life in textiles E
uromed has initiated a project to utilise production waste from saw palmetto berries. The producer of standardised herbal extracts has joined forces with Archroma, a global colour company that has developed a technology to create biosynthetic textile dyes derived from natural waste in the agriculture and herbal industries. With this project, and
the recent implementation of a sustainable reverse factoring for its “green” suppliers, Euromed is bringing convenience, flexibility and value to the supply chain, making it more sustainable within responsible production methods. Saw palmetto is vulnerable to commercial exploitation. To make full use of the plant and to close the usage circle of the intense labour
Waste from saw palmetto berries are used to develop ecological dyes. 16 Food&Beverage Industry News | April 2020 | www.foodmag.com.au
involved, Euromed focused on ideas for upcycled products, such as dyes from nature, using the remaining residues of the fruit extraction. Archroma recycles biomass waste material to create natural colours for the textile industry and has launched a line of patented dyes called EarthColors. In this project, waste products from Euromed’s saw palmetto extraction are used to
develop ecological dyes that are fully traceable via smart tags attached to each item of clothing. Up to 90 per cent of the raw material comes from the remaining saw palmetto biomass, which makes the maximum possible use of the whole plant. The wastemanagement cost savings and lower transportation costs are modest but increasing, and show that the model works. “Companies are increasingly talking about ‘zero waste’ and finding alternative packaging, but there hasn’t been much attention so far to the role of waste in growing, harvesting and post-harvest handling in the botanical industry,” said Andrea Zangara, scientific marketing manager at Euromed. “This project shows an innovative upcycle approach towards waste, as it is important to address waste management at any level. With a good plan and determination, even small initiatives are able to contribute to promoting a stronger culture of environmental respect and sustainability.” Euromed continues to research the further use of waste material from biomass extraction for dyes from nature, and investigates other innovative waste management solutions. In addition, Euromed recently became the first company in Spain to offer a reverse factoring supplier payments management service for sustainable business practices. The company signed an agreement with the BBVA (Banco Bilbao Vizcaya Argentaria) to simplify fee-paying processes to its suppliers. Reverse factoring – also known as “supply chain finance” – consists of the management of payments and discounting of invoices to suppliers. In this way, Euromed can offer more favourable conditions to suppliers with better sustainability performance. Several eligibility criteria have been defined for companies who have sustainability certificates and organic production, in accordance with internationally recognised standards.
NEWS
Targeted business support for red meat producers R
ed meat producers hit by the bushfires can now access free one-on-one support from a local farm management consultant thanks to a partnership between the Victorian state government and Meat & Livestock Australia (MLA). The ‘Back to Business’ initiative, which is being co-ordinated by Agriculture Victoria with financial support from MLA, will provide fire-affected red meat producers with the expert advice that they need to develop a strategic recovery plan. Producers will have access to an experienced consultant who has an in-depth understanding of livestock farming systems from an integrated technical and financial perspective. During the sessions, producers will be given tailored support to assess their current situation, work through the key issues and
opportunities, and prioritise what actions to take. All red meat producers, including sheep, cattle and goat, who have been affected by the recent bushfires, are eligible to apply. This program is one of several activities the state government is delivering to support farmers to recover from the fires. “The fires
over summer have been devastating for many regional Victorians, and especially our farmers – that’s why we’re doing everything we can to back our primary producers,” said Minister for Agriculture Jaclyn Symes. “I encourage anyone who needs assistance to get in touch and get the support they need.”
“We hope this MLA-funded project will assist producers to rebuild their business,” said Meat & Livestock Australia managing director Jason Strong. “We understand that each situation is likely to be very different and so the program that has been developed has flexibility to meet the needs of individuals.”
All meat producers in Victoria are eligible for the Back to Business initiative.
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enelx.com.au www.foodmag.com.au | April 2020 | Food&Beverage Industry News 17
NEWS
Report highlights opportunities in food and beverage sector D espite strong domestic and global economic, political and social headwinds, Australia’s food, beverage and grocery manufacturing sector remains resilient. It is a key national employer, a trade powerhouse and contributes billions to the national economy. The Australian Food and Grocery Council’s (AFGC) latest annual industry snapshot, State of the Industry Report 2019, highlights where the strengths of the industry lie, identifying the greatest opportunities for growth, and reinforcing the ongoing challenge of staying competitive in a country with high costs and low margins. Areas of focus include: • Industry turnover. • Employment. • International trade. • Capital investment. The report found the sector injected $122.1bn into the economy in 2017-18, with 4.5 per cent real growth largely due to increased exports totalling $34.4bn. Food product manufacturing was the largest sub-sector, with a turnover of $90.1bn. The major sources of production were meat processing, cheese and other dairy manufacturing, and human pharmaceutical and medicinal products. Jobs are central to the success of the Australian economy. The food the grocery manufacturing sector is Australia’s largest manufacturing sector, representing 32 per cent of all manufacturing jobs. It is also one of the biggest employers in the country, providing more than 273,300 jobs, of which 39.3 per cent – just over 107,000 – are in regional and rural communities. Regional and rural communities rely on the sector not just through direct employment, but also because of the multiplier effect it has in boosting and sustaining local economies. This filters right along the supply chain through the sector’s sourcing of not only agricultural inputs but also other goods and services used in food and grocery production. Similar to employment, the number of businesses in the Australian food
The AFGC snapshot shows the food and beverage industry to be in a healthy state. and grocery sector increased by 1.4 per cent year-on-year to 15,325, driven largely by the growth of the business count in the grocery sector. New South Wales, Victoria and Queensland are the dominant states, together constituting 85.3 per cent of sector turnover and 79.9 per cent of sector employment. Australian food and grocery exports increased by 7.6 per cent over 2017-18, led by a 45.3 per cent increase in Chinese exports. This comes off the back of the China-Australia Free Trade Agreement and the opportunities it has unlocked. It has also been spurred on by a favourable exchange rate and the great reputation of Australia’s food and grocery products. Growth in imports was much lower at 3.3 per cent year-on-year, totalling $33.4bn. The USA was the leading exporter to Australia, followed by New Zealand and China. As the sector’s global footprint continues to expand, with new free trade agreements opening up more export opportunities for Australian food and grocery manufacturing businesses, policy settings must be right for continued growth are crucial. While the AFGC supports the federal government’s commitment to a strong deregulation agenda, there are other opportunities that can be harnessed to
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ensure the strength of the sector into the future. For example, trade and investment policies should be reviewed to ensure they are ‘fit for purpose’ in supporting the international competitiveness of Australian food and grocery manufacturers. This would not only will help ensure the expansion of the export market, but also shore up new jobs and investment domestically. While the sector has a strong presence and remains Australia’s largest manufacturing industry, its recent growth has been subdued. This is the result of domestic challenges, both in terms of input cost pressures and a deflationary retail market, which are putting pressure on profit margins and eroding willingness to invest. Capital investment was less than $3bn in 2017-18 and although companies have continued to make efficiency improvements to stay competitive this is not sustainable in the long term. There is a need to strengthen the sector through innovation, increased automation and modernisation. And for this to occur companies need the confidence to invest. Governments and industry can work as partners through identifying key areas for cutting red tape and
designing efficient incentives and allowances for targeted investments. In addition, policies addressing cost competitiveness and fair retail trading conditions are essential and will help ensure the sector remains viable, retaining business and jobs into the future. In its 2020-2021 Pre-Budget Submission, the AFGC has focused on the need for more sector incentivisation for innovation. Three key areas of opportunity are: • t he introduction of a food, beverage and grocery manufacturing site modernisation program; • workforce upskilling for small to medium enterprises; and • support for the sector’s positive contribution to meeting community health, environmental and consumer information demands. Measures that would help bring these goals to fruition could include mechanisms, such as instant write off and grants programs, investment allowances, support funding for education programs and incentivisation grants. In addition to site modernisation programs, AFGC has proposed the Federal Government implements a grants program to support manufacturers to innovate their packaging to meet packaging recycling targets. Specifically, the program would seek to establish increased collaboration between the food, beverage and grocery, and the recycling and packaging sectors, in order to expedite the delivery of the national packaging and food waste targets. Government policies to encourage industry investment in the food, beverage and grocery manufacturing industry will help to ensure a return to all Australians with a reliable, safe and affordable food and grocery industry that also provides jobs and stability for local economies, especially in rural and regional Australia. Given the magnitude, significance and contribution of the industry, it should be a central consideration when shaping economic, industrial and trade policies.
NEWS
Commercial opportunities for potato waste F our of the largest potato producers in Australia want to convert 100 per cent of their potato waste into commercial benefit through their partnership with the Fight Food Waste Cooperative Research Centre (CRC). Over the next three years, The Mitolo Group, Zerella Fresh, Thomas Foods International Fresh Produce, and The South Australian Potato Company, together with Industry Association; Potatoes South Australia, and the University of Adelaide, will invest nearly $1mn in this research and development to save up to 100,000 tonnes of potatoes currently going to waste every year. Chief executive of Potatoes South Australia, Robbie Davis, said that this is a fantastic opportunity for Australia, particularly South Australia as it is the largest potatogrowing state. “We are seeing up to 40 per cent of
potatoes rejected because they do not meet retail specifications. At the same time Australia is importing 20,000 tonnes of potato starch each year, and it just doesn’t make sense that we’re not using these huge volumes of potatoes for alternative purposes,” she said. A large focus of this project is the potential development of an Australian potato starch industry, which would provide additional revenue for Australian potato companies; potentially $1,000 a tonne for extracted starch instead of the current value of up to $10 a tonne for the waste. “Potato starch is used broadly across the food industry, for bioplastics and packaging, to coatings and adhesives. We also want to use the waste from the waste, so after extracting the potato starch, there will be further opportunities using the residual waste from
this first stage,” said Davis. The four Australian potato companies that have partnered with the Fight Food Waste CRC are leaders in their industry and recognise the opportunity this represents to the industry. Professor Vincent Bulone from the University of Adelaide is leading this research project from his worldclass analytical centre for complex carbohydrate analysis, Adelaide Glycomics. The project is in line with the University’s industry engagement priority on agrifood and wine. “There are different forms of starch in potatoes that can be used in different products. For example, existing research suggests that the less digestible starches in potatoes – the so-called ‘resistant starches’ – can be used to make superior pre-biotics that help prevent infections,” said Bulone “Another known starch component can be used to engineer low GI
foods, and the skins of the potatoes themselves contain bioactives that can be used for a range of commercial products like nutraceuticals.” Fight Food Waste CRC CEO Dr Steven Lapidge is thrilled to have such a transformational project underway so early in the Fight Food Waste CRC’s journey, and sees the partnership between all of the potato producers as a great example of what the CRC can achieve. “We’re looking to develop new products from current waste streams that will deliver additional profit to potato producers through domestic and export sales. “Through investing in research and development we aim to deliver new high-value commercial opportunities for the participants of this project. “This project is exactly what the CRC is all about delivering real benefit for Australian businesses across the whole of the value chain.”
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www.foodmag.com.au | April 2020 | Food&Beverage Industry News 19
NEWS
T2’s Sparshott appointed CEO of Unilever Aus/NZ U nilever has announced that Nicole Sparshott, the CEO of its speciality teas business T2, has been appointed CEO of Unilever Australia and New Zealand (ANZ), after Clive Stiff decided to retire from the business following eight years in the role and 34 years in fast moving consumer goods. Stiff joined Unilever in 2012 and has been a transformative leader throughout his tenure. He is credited with driving purpose-led growth, leading the digitisation of the ANZ business as a pioneer for Unilever globally, leading a number of M&A initiatives, and championing sustainability, diversity and inclusion both within the company and in external forums. During his time leading Unilever ANZ, he has also served in the Male Champions of Change movement, on the Board of the Business Council for Sustainable Development Australia, on the Advisory Council of UNSW Business School and as chair of the AFGC. Sparshott will retain leadership of the T2 business as Global T2 CEO in addition to her role as CEO for Unilever Australia & New Zealand.
She assumed the role at the beginning of April 2020 and will report to Unilever’s global chief operating officer, Nitin Paranjpe. Sparshott brings to the role deep experience across general management, brand development and marketing, combined with a passion for purpose-led business. She joined Unilever ANZ in 2006 as marketing director for foods, ice cream and beverages, before moving to Singapore to take up various leadership roles in the refreshment business across Asia. Following Unilever’s acquisition of T2, she was appointed CEO of T2 in 2016 and has since accelerated the business through market expansion, channel diversification and driving transformation across the value chain to enable its recently-awarded B-Corp accreditation. Prior to joining the team at Unilever, Sparshott held multimarket roles at P&G, The Coca-Cola Company and at advertising agency George Patterson. She serves on the boards of WWF-Australia and Global Sisters. “It’s been an absolute privilege to lead Unilever Australia & New Zealand for the past eight years,” said
The new CEO for Unilever, Nicole Sparshott. Stiff. “I leave with a strong sense of pride in what our talented team has achieved together over this time – from continuing to deliver great brands and innovation for our consumers and retail partners, through to better serving our society and planet with the way we do business. “I’m also confident that I’m leaving the business in very good hands under Nicky’s leadership. “Having started my Unilever career
in the ANZ business, I’m delighted to be returning to Australia to lead this fantastic organisation,” Sparshott said. “Consumer trends and preferences are evolving rapidly, providing brands with an opportunity to be more innovative and dynamic than ever before. By leading Unilever ANZ during a period of significant change, Clive has laid a strong foundation of agility in the business, paving the way for our next stage of growth in this market.”
ACCC okays Chinese dairy acquisition T
he Australian Competition & Consumer Commission (ACCC) has given the nod to China Mengniu Dairy Company (Mengniu) for the proposed acquisition of Lion Dairy & Drinks (Lion D&D). “Mengniu Dairy was already looking for opportunities to diversify its business and expand its brand presence in the emerging markets. The transaction will allow Mengniu to enhance its presence in the Australian market and strengthen its portfolio
by leveraging Lion’s long-standing brand presence and manufacturing and cold chain distribution hold across Australia. The transaction will strengthen Mengniu with a stronger foundation to excel in the AsiaPacific (APAC) region,” said Shagun Sachdeva, consumer insights analyst at GlobalData, a data and analytics company. Mengniu has recently completed the $2.2bn takeover of infant formula company Bellamy’s Australia, in line with its aggressive acquisition
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strategy. The series of acquisitions will create greater synergies for the group not only from the geographical footprint point of view, but also from the supply chain perspective, too. At the same time, Lion has been trying to sell its dairy portfolio since 2018, which comprises of Big M, Pura, Dairy Farmers, Berri and Daily Juice brands. In October last year, Lion sold its specialty cheese business to Saputo Dairy Australia, with plans to focus on high-margin alcoholic beverage and premium non-alcoholic
drinks in Australia and New Zealand. “According to Global Data, the APAC dairy and soy food sector is forecast to grow from $194bn in 2018 to $254bn in 2023, registering a compound annual growth rate (CAGR) of 5.5 per cent,” said Sachdeva. “Milk was the largest category in the APAC dairy and soy food sector, followed by drinkable yogurt and cheese. The Australian dairy and soy food sector is expected to reach from $12.1bn in 2018 $14.8bn in 2023.”
NEWS
Australia’s wild prawn fishers demand sustainability
Prawn fishers want to make the public aware that their industry is environmentally sustainable.
A
ustralia’s wild prawn fishers are inviting the community to “get on board” by promoting the sustainable practices that make the Aussie prawns as guilt-free as they are delicious. A project funded jointly by the Australian Council of Prawn Fisheries (ACPF), and the Fisheries Research and Development Corporation (FRDC), is harnessing novel technology, such as augmented reality, to bring the community on board with fishers, without having to leave their lounge rooms. Assistant Minister for Forestry and Fisheries, Jonno Duniam, said Australia’s wild caught prawn industry had great story to share with Australians.
“Australian’s love wild prawns, and for good reason,” Duniam said. “Wild prawns are not only synonymous with occasions like Christmas, but they are renowned for being safe, high quality and environmentally sustainable “This is a great story to tell, and one that the industry should be proud of. I’m sure Australians will love the chance to ‘Get On-Board’ with wild prawn fishers, and continue support for the fishery. “The hard-work and investment that the wild prawn industry has put into this initiative is outstanding, and I encourage other fishing sectors to follow their lead.” Annie Jarrett, chair of the ACPF says Australians love their seafood and they want to know that the people
who catch it are doing the right thing by the environment, their people and their practices. “Our prawn fishers are proud to catch Australian wild prawns and are proud custodians of our fisheries,” said Jarrett. “We are continually improving our fishing and work practices. Our “Australian wild prawn” stories will help us share our journey with the community”. “Far from simply making empty promises, Australia’s wild-harvest prawn sector has been investing over many years to reduce bycatch and to minimise its environmental footprint.” “Last October, we launched a project to scientifically identify the trace element fingerprints
of Australian prawns to ensure consumers confidence in where the Aussie prawns they buy come from,” said Jarrett. “Australia’s prawn fisheries have been proactive towards improving their environmental footprint using research and development,” said FRDC’s general manager of research and investment, Crispian Ashby. “When the Northern Prawn Fishery trialled a new bycatch reduction device in 2017-2019 with enormous success, the news went viral among fishers. Now other prawn fisheries are keenly trialling the device, too “By bringing science to the industry and theory to the practice, the Australian wild prawn industry is enacting positive change,” Ashby said.
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THOUGHT LEADERSHIP
Loop-de-loop: reuse starts entering the vernacular Loop is a system that takes recycling one step further – reuse. Mike Wheeler explains.
TerraCycle’s Tom Szaky is taking recycling to the next level.
I
t all changed in the 1950s. That’s the point in time where TerraCycle CEO Tom Szaky said the attitude towards packaging changed. Szaky is the Hungarian born, Canadian-raised, United States-residing, evangelical-like champion of Loop, an enterprise that is set on reusing products instead of recycling them. The headline act at the Future of Reuse event at Barangaroo in Sydney in March, Szaky shared his views on the history of rubbish, what we need to do with our rubbish, and where the Loop system has a place in the circular economy.
Why did Szaky narrow it down to the 1950s as being the tipping point? Because that was when packaging disposability met head on with a new era in insatiable consumerism. “Before the 1950s garbage didn’t exist; it was a by-product but nature knew what to do with it,” he said. “A 100 years ago, every chair in this room that we are sitting on would have been made of wood. You could throw them in the forest and the forest would have thanked you. The carpet would have been cotton and the forest would have been just fine breaking it down. Today, most things in this room
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will be garbage eventually, but if we threw it into a forest, it would hate us for it. “Then the 1950s roll around. Disposability brought around unparalleled convenience and affordability, which elevated people out of poverty, allowed folks to not be in the kitchen for two hours at a time. It offered huge and profound benefits for society.” But, according to Szaky, a strange thing happened – the packaging the product comes in became the property of the consumer. “And is there any disposable package you want to own when it is
empty?” he said. “Take coffee cups. Once you finish your coffee you own the coffee cup. Isn’t that weird? If I took it from you when it was empty you would have no problem relinquishing ownership.” So it has become a mindset. And one of the truism of any packaging waste – waste in general, according to Szaky – is that there has always been negative connotations attached with it. With other contentious subjects, such as climate change or the use of palm oil, there has been debate over the merits of palm oil in products, or whether climate change is a naturally occurring event or the
THOUGHT LEADERSHIP
result of man-made pollutants. With waste, there has been no debate, it has always been a negative. Szaky believes that in the past two years it’s hit a point where it’s moved from a problem to a crisis. “Three or four years ago I would have had to explain a photo of empty plastics bottles in an ocean to some people and what it represented. Now I don’t have to anymore,” he said. “I think it has tipped over because it such an easy topic to have an emotional perspective on. You could argue that sometimes that emotion is misguided. I don’t think plastic is evil. Plastic is just a material – whether it is an alloy, a fibre or polymer – but it is how we use these materials that is the real question we should be asking ourselves.” One answer is to recycle, which is something that Australians have embraced over the past decade. Yet, consumers realise that there is only so much landfill to go around, while there is also many applications that recycled material can be put to use. But is it enough to take those empty
"Before the 1950s garbage didn’t exist; it was a by-product but nature knew what to do with it,” he said. “A 100 years ago, every chair in this room that we are sitting on would have been made of wood. You could throw them in the forest and the forest would have thanked you." soft drink cans, or those soft plastic lolly wraps and put them to better use? Yes, but there is a problem arising, according to Szaky, and he gave the example of the city of Philadelphia in the US as to what is happening now. “In 2013, the city was paid $67 per tonne for its recyclables – like PET bottles and aluminium cans,” he said. “Today, they have to pay $105 per tonne to get them recycled. Now the city is debating whether they should have recycling in the city at all. It’s a fair point because it’s now a big expense for tax payers – it’s gone from a revenue to a cost.” TerraCycle has been at the forefront of recycling and has come
up with many innovative ideas to make sure that landfills are kept empty, oceans free of plastics and other waste, as well as making sure that people are informed of the many ecological options when getting rid of waste. The company works with retailers to reinforce to the public that they have eco-friendly policies, and also help them not only keep market share, but increase it. “We do aerosol recycling with Unilever through DM, which is a big pharmacy in Germany,” he said. “The message is you can bring in aerosols to be recycled – such as the propellent, aluminium and plastic – and turn them into bicycles for kids in need. But what is DM
getting? Foot traffic – half a million extra consumers that would not have shopped at their store (according to them) and Unilever gets a huge display in the store all year round, which drives profit dollars.” While TerraCycle started out as a recycling company – and continues to be so – it has started a new program called Loop, which is designed to take sustainability one step further. While Szaky embraces products that are made out of recycled materials – especially those that have been partially constructed from recovered ocean waste – his main plank is reuse. And this is what Loop is all about. So how does it work? Take Häagan Daz ice cream for example. Instead of buying a tub of ice-cream in the usual cardboard/ wax packaging, it will be available in a stainless-steel container. Once the ice-cream is finished, it’s ready to be picked up, returned to the Loop station, washed, and then returned to the brand for reuse. In order to take the business to
Product design was a key element with consumers for the Loop-inspired products.
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THOUGHT LEADERSHIP
the next step, Loop has partnered in Australia with Woolworths, who is providing the online platform for the service. “It begins with an online platform so users learn as much as they can,” said Szaky. “When the Woolie’s platform launches, customers will be able to access 200 Loop products on their website in home care, personal care, packaged food and beverages – where there are big waste issues. Once the consumer selects the items they want, you pay a one-time, refundable deposit for the tote bag, then Woolworths will deliver the products. And here’s the cool part – you’ll get a return bag and you put all your returned Loop products back in the bag – just like garbage. We do that on purpose so you feel like you are throwing something away. No cleaning, no sorting, just throwing it into a bin. It just so happens that the contents of the bin are reusable. During the next delivery, Woolies will pick it up for you from your home.” One of the issues that is not lost on Szaky is trying to get consumers on board. This is why the company has tried to make it as easy as possible for those who are embracing the concept. “Those bags of reusable garbage
Loop stations will pop up at various retail outlets over time. end up back at a Loop centre that we’re setting up, and will partner with DHL and Ecolab. They will be cleaning the containers and we will sort them out – a bit like a MERF. We store them, clean them and send them back to the manufacturers to be refilled. This is important, because every actor has normalised the process and they do as little as possible.”
Feedback from US ice-cream consumers was taken into consideration. 24 Food&Beverage Industry News | April 2020 | www.foodmag.com.au
The brands pay for it, but the idea is that they save money on not having to buy packaging. The manufacturer is filling units with only the difference being that the product will arrive in a slightly different form from its current configuration and will be more durable. Szaky said it is the same concept as normal shopping – take something that is bulk, put it in package, then on pallets and
send it to a retailer. The retailer puts it on the shelf, the consumer buys it, but instead of throwing it in a recycling or rubbish bin they put it in reusable bag. But will consumers take to the idea? Yet another thing to have to think about during the day – throw the food wrapping in the bin? Recycle it in the bin outside? Put it in the soft plastic pile to be recycled at
THOUGHT LEADERSHIP
Many products are now spruiking they use recycled plastics from ocean waste.
Coles? Now, a reusable bag? Szaky is confident it will take off, not least because the brands have hit a nerve with consumers with something they didn’t see coming. “Take the original Axe deodorant container, which has recyclability issues for a variety of reasons. It has a low cost, but that cost is in the whole price of the deodorant, which is ironic because you don’t want to own it once it is empty,” Szaky said. “The company designed a new deodorant exclusively for Loop, and it’s incredibly beautiful, stainless steel, which is not just design beauty but aesthetic beauty. It’s more expensive to make, no doubt about it. But what goes into the price of your deodorant is the depreciation of the container and the cost of cleaning, which allows the deodorant to be the same price as the disposable version.” And while the design of these new products has had a huge impact on the psyche of the consumer and their willingness to embrace the new concept, there are also practical considerations about the design that make them different from its disposable counterpart. Take the aforementioned
Häagan Daz ice cream for example. According to Szaky, most Americans eat ice cream in their bedroom, with the average serving being a punnet. And the number one complaint of eating a tub of ice cream in bed is how messy it is. “Condensation on the cardboard packaging is annoying, but the number one complaint is that their hand gets cold,” said Szaky. “Another complaint is that because your hand is warming the pack it melts from the outside so you have a bowl of ice cream floating in ice cream soup. “Whereas a new container for ice cream designed for the Häagan Daz range solves this problem because it has two layers of stainless steel – the outside is warm, while the inside is -18˚C and melts from the top down not from the outside in,” said Szaky. “Even the inside is concave so you don’t have a concave angle at the bottom, which means consumers can scoop out every last little bit of ice cream.” And what has been the overall reaction to Loop being instigated? At the time of writing, its roll out is being ramped up all over the world, including Australia. In the US, the
world’s biggest supermarket chain, Kroger, is setting up Loop facilities at some of its west coast stores, while Walgreen is doing the same on the US east coast. “In France it will happen in July while in Japan it will be October,” said Szaky. “And the most important part is that you can return the empty container to anywhere you want. You don’t have to remember where you purchased the item. You can buy your ice cream at retailer one and return it to retailer two, and then at retailer two you can buy your coffee and a reusable container and return it to retailer three and so on and so forth.” If a brand wants to come on board with the Loop concept, there are a few rules that have to be taken into consideration, one being that the packaging/container that the product comes in must be usable at least 10 times. Another is that is that it must be cleanable to the standards in their category. Also, once its life has come to an end, the container/packaging must be recyclable unto itself. “Loops fundamental role is not to be a product or a retailer but to be a platform for reuse,” Szaky said. “One of these ice-cream containers goes
through a big reuse cycle, and then at some point it can be recycled. But the steel, for example, in the Häagan Daz ice-cream container will always be an ice cream container. That allows the materials to stay in a closed-loop fashion. We at TerraCycle call it a down cycle – it moves it into one lower category. “Take paper. It goes from beautiful white paper to toilet paper or newspaper. If you look at plastic it goes from a water bottle to shampoo bottle to a frisbee or park bench.” When all is said and done, Szaky sees it as a win-win-win-win situation. It is a win for TerraCycle, it is win for the consumer, it is a win for the environment, and it is a win for the brand. “The reality is, if you put purpose into the product you can take down your marketing because mainstream media and social media will do more for you than marketing would. You can keep the price of the product the same if you spend the marketing dollars to fund the new polymer. And it ends up doing really well. A product acts like it is completely disposable but is actually reusable. And it also moves package from being a cost to an asset.” F
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ENERGY EFFICIENCY
How to make your assets earn money for you Saving money by reducing energy demand is not a new concept. However, the way Enel X helps businesses to do it, is. Food & Beverage Industry News explains.
Enel X works with food and beverage manufacturers to save money on their energy usage.
W
hat would you do if you were a food or beverage manufacturer or processor and you were told you could save your company thousands of dollars in energy bills every year? Most companies would sign up straight away. But what if part of the condition was that at some point in time throughout the year, certain pieces of plant or machinery were switched off. Pretty risky, right? Not so according to Andrew Sutherland from Enel X, a company that specialises in helping businesses – including those in the food and beverage sector – optimise their energy needs. Sutherland, who is a consultant for Enel X, works with businesses
to strategically reduce their energy demand, based on a signal of electricity grid need or shortage, and to monetise this activity. He said that persuading a company to switch off equipment is probably the hardest sell. But, what if there was no risk involved at all? That, said Sutherland, is the key. “The trickiest part is going into a business and convincing them we can automate a process that will save them energy and money – even earn them money – by turning off a machine and that it will have no impact on their operations,” said Sutherland. “They have to get their head around the idea that we are going to turn off certain parts of their process at a certain point in time. It is
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only a handful of hours every year. “I was explaining the concept recently to an abattoir owner and he said, ‘I have 800 staff. I can’t be turning off equipment’. I explained to him that it wasn’t about switching off all of the equipment. It’s about certain assets being turned off at the right point in time.”
Flexibility Enel X is a subsidiary of Italy-based Enel Group, which is one of the 100 largest companies in the world with revenue in excess of $126bn in 2018. The company sees a gap in the market where companies can not only save money on their energy consumption, but can contribute to the national grid and even
earn money. Sutherland said that the company comes to the market with a different point of view to a lot of others in the same space. Enel X helps organisations to reduce costs without the need for investment in new infrastructure, by making equipment more efficient. It has expertise and history working with businesses to identify elements of their existing infrastructure and assets or processes that can help deliver a cost reduction if they are used in a slightly different way. “We work with businesses to identify what they have, what they could have, and then roll those assets and processes into flexibility or demand response programs that
ENERGY EFFICIENCY
help them lower costs. Importantly, the equipment used fully serves its operational purposes, and further benefit is extracted based on what the equipment can provide to the grid,” he said. For example, Sutherland talks of a business in Victoria that specialises in cold storage. It houses food and beverage products. What Enel X did was help the company manage its assets in a way that it could curtail the energy load of the refrigeration units at a strategic point in time. This not only saved power, but helped that customer earn revenue from the market to help support the grid and the broader community. “We installed a meter, which is a technical solution that we set up onsite. It recorded when there were disturbances in the grid as a whole,” said Sutherland. “When that occurred, we sent a signal for only the assets they nominated to make a response that provided value to the grid and therefore earned the customer revenue. For this particular customer, he estimated that year-onyear over three years he saved about 10 per cent on his power bill.” Companies are surprised how much money they can save, according to Sutherland. Demand response, or power flexibility, has been in Australia for many years, however to many it is a new concept. The market is constantly evolving and transforming, with new opportunities for businesses to take part in the market from a demand point of view. “We are at the forefront of the changes in the rules. We are an
"As an organisation worldwide, we have enough power flexibility in our portfolio that can manage the state of Victoria on any normal day. Our expertise is with flexibility and demand response. We are the world’s largest operator in this space and we are also the largest aggregator of load to our market operator in Australia." advocate for many changes as well,” said Sutherland. “Our history as a global organisation means we know how valuable power flexibility is. As an organisation worldwide, we have enough power flexibility in our portfolio that can manage the state of Victoria on any normal day. Our expertise is with flexibility and demand response. We are the world’s largest operator in this space and we are also the largest aggregator of load to our market operator in Australia.” While it makes business sense to use the service – after all what business doesn’t want to save money – Sutherland also points out that not only is the solution practical, it might also soon prove to be a necessity in some parts of the country. “In the past four months there has been a series of issues that have had an effect on the grid,” he said. “We’ve had outages with generators in Victoria where two generators were out of action for the majority of 2019, which caused a lot of concern about
the reliability of the grid. There have been outages between Victoria and Tasmania with the Bass link. In the past couple of weeks there were a few events between Victoria and South Australia, which has needed assets like ours. Using our service, businesses that offered their flexibility are be paid for making a contribution to the support of our grid. That helps our whole community.” Sutherland believes that, at the moment, the national power grid finds itself at a critical juncture where there is not enough wind and solar power available to cover any shortfalls in power supply, while battery storage is still too expensive. He also believes Australia hasn’t hit a critical mass to help the transition. The country has hit a point where the grid now needs flexible assets and flexibility
that will help advance the transition. “The drivers in the community are for decarbonisation and climate change,” he said. “People in that frame of mind support the use of flexibility because it advances the situation we want. When we don’t have enough wind or solar, we need flexibility at that point in time to keep the grid stable and to ensure that we are not stifling more investment.” Sutherland can’t reiterate enough that it’s not about turning off the equipment all the time, it has got to be strategic and it has got to be low impact if at all. Enel X has proprietary software that helps the customer maximise the outcomes to the market. There is software around the trading and dispatch notices but ultimately it is an automated process that combines hardware at the site and software on Enel X’s end. “We use a combination of hardware and software,” he said. “We need to install certain meters that will sense all the disturbances in the grid and then give a signal to the site.”
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ENERGY EFFICIENCY
He also points out that there is an underutilised power supply available that a lot of big multinationals in the food and beverage industry have and, again, they could earn money from them – standby generators. “There are a lot of businesses out there who have realised that the reliability of the grid is not as good as it once was so they have made investments in standby generators,” he said. “These investments are substantial for an asset that sits there largely dormant waiting for the power to go out. What we do is we turn those assets into an active market participant. That asset helps to support the grid in terms of need and in price. “A back-up generator has an invaluable role. For example, in South Australia when they had the outages in 2016, a lot of the businesses did have generators but they were not adequately maintained and many were not available at the time that the customer actually needed it. By taking part in the power flexibility programmes,
they are actively used. It is not a dormant asset.” Sutherland cites an example of a bakery he has been working with. If it loses power they have a huge amount of waste that will happen; the company will have idle staff, and can only get a certain amount of product out the door if they run on their generator. “It is an asset that is there, but it is underutilised and it is not properly configured for the site,” said Sutherland. “We are working with that business via a grant and funding with the SA government, to help them get to a situation where the sustainability of their operations is maximised. If there is an outage, they will be able to get all the product through the process and out the door. They therefore minimise waste, which is great for the environment – all the conversion of the resources, all the labour is not idle. Generators play a critical role because the grid, in its simplest form, is no longer reliable as it once was.” Sutherland expects that their
Flexibility is the key to Enel X’s offering to the food and beverage market. 28 Food&Beverage Industry News | April 2020 | www.foodmag.com.au
Enel X said the trickiest part is convincing clients that switching off certain machinery will at certain times will not affect their bottom line.
offering might take a little bit of time for some companies to comprehend. However, once they get the details sorted out, it is win-win situation. “We do not expose the customer to any form of market risk,” said
Sutherland. “We incentivise them, and the government incentivises them, and we need their flexibility. We are going to do it in a controlled way so that all of your operations are not affected in any way.” F
SAFETY
Proactive safety with SmartWasher A new way to clean parts in food and beverage facilities is on the market. Food & Beverage Industry News gets the lowdown.
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hen a large trans-Tasman dairy facility bought eight of CRC Industries’ SmartWasher Bioremediating Parts Washing Systems, it was able to eliminate the use of harsh, solvent-based cleaners alongside all the associated risks that come with them, reducing the company’s liability and achieving better cleaning efficiencies. “Its just a matter of time before everyone goes down this path,” CRC business development manager of the APAC region, Steve Colson, said. “All the big guys use it, and that has a lot to do with simplifying workplace OH&S compliancy.” CRC’s SmartWasher exceeds standards in this regard. Colson said that the CRC SmartWasher requires less personal protective equipment (PPE). “Customers were mostly driven to make the change to our SmartWasher because of bad reactions to parts washer solvents on their skin,” Colson said. “With the SmartWasher, all you need is gloves, rather than the full gamut of chemical gloves, protective aprons and breathing devices. “Solvent-based cleaners expose people to skin irritants and vapours, create toxic liquid waste and you end up trying to clean parts with a filthy liquid and then dispose of all that hazardous waste.” The CRC SmartWasher uses a pH neutral, non-hazardous, non-flammable water-based cleaning solution, and allows for the washing of parts at a comfortable 42 degrees. It also exceeds standards in regards to the environment. The SmartWasher has been named a ‘Safer Choice product’ by the US Environmental Protection Agency (EPA), a certification granted once all ingredients have been analysed in order to determine there are no harmful effects to humans. Distributor of CRC Industries products, BSC has been supplying
to the food and beverage industry since 1921. “We’re right on board with this revolutionary component cleaning system from the get-go taking these units to some of Australia leading dairy, biscuit and raw produce processing plants,” said BSC’s national product manager, lubricants, Steve Keown. According to Keown, the facilities were drawn to the product because they take climate responsibility seriously and the CRC SmartWasher is an environmentally friendly product, which is something that the distributor also takes seriously. “People want to use safer and more environmentally responsible parts washers and to show their customers they are dealing with waste responsibly,” he said. Through the process of bioremediation, the SmartWasher is self-cleaning, as well as safe to use. In this instance, bioremediation is the use of microbes to break down or
neutralise hazardous substances and contaminants, removing dangerous chemicals in the environment. Colson said that microbes are introduced every month to keep the SmartWasher colony at optimal strength, breaking down cheese, chocolate and dairy fat. CRC Industries names its blend of nonpathogenic (harmless to humans) microbes in the SmartWasher system “Ozzy”. “Solvents attack deposits from the outside whereas a surfactant breaks the bond between the part and the dirt, so it lifts off rather than dissolves. That means the SmartWasher’s cleaning action looks different, but it can dislodge deposits some solvents won’t touch.” Ozzy microbes also eat the potentially harmful waste in the SmartWasher and then transform it into small quantities of harmless by-products of carbon dioxide and water, eliminating the need for disposing mass amounts of used fluid, as well as being safe to use.
A similar process has been used in the clean up of dangerous oil spills, such as the Exxon Valdez oil spill in March of 1989 and the Gulf of Mexico oil spill in April 2010. According to Colson, there is 3.3kg of inert solid waste to dispose of a year with the SmartWasher compared to 377kg of hazardous waste – plus disposal fees – for solvents changed every six weeks. The SmartWasher compares favourably to simpler, waterbased units as well as the solvent cleaners. For example, there’s no need to change the liquid in a SmartWasher, just the filter mat once a month in order to keep the microbe colony strong and effective. The filter traps larger particles and the emulsified waste drops into the tank where microbes consume it at the rate of 1-2 litres per week. The Ozzy formula has been refined and improved over the years, and CRC will continue to apply research and development to further enhance the product. F The SmartWasher system eliminates the need for solvent-based cleaners.
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SUSTAINABILITY Martogg makes recycled PET that is renowned for its quality.
Making the most of PET recycling Martogg specialises in both virgin resin and the recycling of resins, including PET. Food & Beverage Industry News explains why there is a need for both in the marketplace.
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artogg is a family-owned business founded in 1975. It has grown to employ hundreds of people and is a company that specialises in resins and recycled products for the plastics industry. With its head office in Melbourne, and branches around Australia, it is truly a national company that offers solutions for companies that require commodity resins, engineering materials, colours and additives and recycled products. According to product manager Ben McCulloch, what makes the company stand out from many of its competitors is its all-encompassing business model and diversity that covers off on many aspects of the plastics industry. “Martogg is made up of five companies that operate under the Martogg umbrella,” said McCulloch. “We are a trader of commodity resins as well as a producer of polymer compounds, masterbatch products/additives and recycled resins, serving the Australian and the regional plastics industry for over 45 years”. One of the company’s main areas of expertise is recycling, especially of PET. Martogg realises that recycling PET is not only good for the environment, but it makes good
business sense, too. They knew four years ago that the recycling of PET was going to become important, so started down that road back then. “When we talk recycled food grade PET, we bought into the technology and first started producing and marketing it back in 2016, which was a bit ahead of its time,” he said. “Back then, the market certainly wasn’t where it is today. In the past couple of years we’ve really seen it develop and transition off the back of the China Sword policy that came into effect in February 2018. We as a country could no longer ship bales of poorly sorted waste offshore, we must invest in infrastructure to manage this waste and make use of the valuable resource”. Being experts in plastics compounding and recycling helped because the company was able to take its know-how, spanning over 45 years, to understand and produce recycled PET that is recognised globally for its quality. “What we are talking about is post-consumer waste plastic streams in the form of PET and converting back into pelletised resin suitable for the same application in which it originated from (e.g. bottle to
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bottle) McCulloch said. “Take bottled water for example, I’m sure many consumers today wouldn’t realise that the bottle they are drinking from is made up of 100 per cent recycled PET plastic, the quality is that good. You’re actually rebuilding the PET polymer in the recycling process. marPET is being used today into beverages, meat packaging, cosmetics and household cleaning products to name a few applications. The applications are expanding as brands look to incorporate recycled content into their products”. McCulloch said that many of its clients are starting to use recycled PET, even though it comes at an increased cost to virgin resin. This may seem a strange decision from a purely business stance, but there is much more to an outcome that just the bottom line – not only do brands see the environmental benefit of recycling, but the brands customers are also demanding it. “We are talking to and working with businesses and brands in the FMCG space and they clearly want to be doing the right thing for the environment and from a sustainability perspective,” McCulloch said. “But their customer base is also driving and pushing it.”
McCulloch sees it is a win-win situation. Where it has been tough over the past few years, he said, is that it really getting into the brand owners – to understand that the material is available, but it is more costly than virgin material, but it is still worthwhile using it. “In using recycled PET in pace of virgin PET, brands are going to save significant amounts of CO2 output and greenhouse gas emissions,” he said. “Many studies have been completed across the globe that show, over the entire lifecycle of rPET, in comparison to virgin PET, you are saving up to 80 per cent CO2 output/greenhouse gas emissions. The findings are staggering. You have to place value on waste material otherwise people just discard it and it means nothing to them. Then we see our landfills filling at a significant rate when we have a valuable resource that can be recycled and reused.” So, how does it work? What is the process that Martogg instigates to enabled used PET to be reused in the food and beverage industry? The raw material used for making food grade marPET is hot wash PET flake. Hot wash flake comes from PET bottles that have been placed in
SUSTAINABILITY
a recycling bin or container deposit system e.g. Return and Earn by the consumer, and which then get collected and baled into waste. This waste is then sorted, shredded and hot washed to remove residual foods, liquids, glues and labels and other contaminants. “In order for the PET to be separated from other plastic contaminants, such as highdensity polyethylene, low-density polyethylene, polypropylene etc, PET – given its density – will sink in this floatation sorting process,” said McCulloch. “The PET sinks, while the polyolefin floats, which allows you to separate PET from other plastics. And with that process you are able to get the PET into a relatively clean state, but it is still not ready to be used back into FMCG packaging applications that demand food grade.” To remedy this, the flakes are put through the company’s Vacurema
lines, which is a high-heat, highvacuum process. The high vacuum extracts moisture and volatiles from the PET feedstock and converts the flake into pelletised resin. “We then send it back out in the form of food grade recycled PET resin – small pellets – where it can be used straight back into many of these applications,” said McCulloch. Martogg works with businesses and brands to help them achieve their own sustainability objectives. Plastic has a fairly negative image in the market; however, this is largely due to our poor recycling habits and not the function of plastic which offers many benefits. “The reality is, plastic is a wonderful material, it’s just how we dispose of it and recycle it that is the issue,” said McCulloch. “If the average consumer understands the process, then we as a country could be much better off than we are. The reality is, for many years we have been used to
packaging up poorly sorted bales of waste plastic and shipping it offshore and making it someone else’s problem. Now we are in a position to do something about it.” He said that the battle all along has been convincing brands that they need to go down that path of rPET and drive the circular economy whereby the packaging materials they use can be re-used time and time again, rather than the traditional linear approach – making it, using it and then disposing of it either in landfills or shipping it offshore, with neither option acceptable anymore. One of the things that separates Martogg from other players in the market is that it can offer recycled PET – or marPET as it is branded – as a 100 per cent standalone product, or at nominated blends with virgin PET. It is a truly circular material that can be used in FMCG products that require food contact approval. “For companies that are part of
the APCO – companies that want to put recycled content in their product, we can supply them marPET blends, for example a 30-70 blend, which means 30 per cent being recycled and 70 per cent being virgin,” said McCulloch. “This way they can do the right thing and meet the APCO recycled content targets because their packaging includes recycled material and can be recycled again at the end of its first life; you can see how its circular.” “The main thing for us is that we have been doing this for a while. It’s not new. As global demand for recycled content has increased, we have continued to invest in production capacity to support the market. Our commitment to marPET is unwavering and by Q3 2020, we will have a third Vacurema line in our Melbourne rPET plant with combined annual production capacity of over 23,000 tonnes. The era of make, use, dispose is over.” F
PET recycling is seen as more expensive but more environmentally than the alternative.
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TECHNOLOGY
Muntons and HRS worked together to get the desired outcome.
International malt producer saves money with anaerobic digestion Food & Beverage Industry News explains how a 3-Tank Batch Sludge Pasteuriser system helped one company turn waste into a biofertiliser.
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n Australia, Muntons is best known for its range of home beer-making kits, made from UK malting barley to emulate classic beer styles from around the world. However, the company is also a producer of a range of malt products for food manufacturers around the world. Muntons also believes in sustainable production. Since early 2016, the company has operated a novel closed-loop system, which turns some 80,000 tonnes of liquid malt waste into a high-quality biofertiliser at its production plant in Suffolk, England. The basis of the system is a $9.4m, 499kW on-site anaerobic digestion (AD) plant that generates 25 per cent of the site’s electricity and turns 80,000 tonnes of liquid malt waste a year into quality organic digestate fertiliser, which is used by the company’s network of
growers. In turn, they produce some of the 250,000 tons of barley needed to make 180,000 tonnes of Muntons’ malt each year. In the process, the company has saved more than 800 tonnes of CO2 emissions and saved more than $5.95m in electricity and waste disposal costs. Muntons, which has sustainability at its core, first became interested in AD after analysis showed that 60 per cent of the carbon footprint of its supply chain came from the artificial fertiliser used by its barley growers. The company realised that if a proportion of the liquid waste it produces every year could be treated through AD, it could produce a high-quality, organic biofertiliser for its farmers to use instead therefore closing the loop between farm and fork and reducing its carbon footprint. The new treatment removed the
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need for these journeys, and also captured nutrients such as phosphate, which were previously lost when treated effluent was discharged to the river. The digestate product is high in organic matter and acts as a soil conditioner and improver. It also has a longer period when it can be applied to the land than the liquid waste that was previously produced.
Ensuring digestate quality Unlike conventional AD plants, Muntons’ plant uses a combination of both anaerobic and aerobic processes to treat its digestate, meaning that for technical reasons the resulting sludge cannot be certified as meeting the UK standards for compost and digestate. These standards, known as PAS110, provide a guarantee to users that the digestate product meets certain quality parameters and mean that it is exempt from further waste
legislation, so that it can be applied to fields as a fertiliser. However, the process includes a pasteurisation step and the resulting material is treated in accordance with the requirements of the PAS110 standard for anaerobic digestate, based on conventional Hazard Analysis Critical Control Points (HACCP) principles. This helps to assure local farmers that the final biofertiliser contains no ergot or plant pathogens contaminants. According to, Muntons’ site and waste water supervisor, Paul Mead, a pasteurisation system from HRS Heat Exchangers was a crucial part of the entire process. “We want our biofertiliser to compete in the agricultural market with the likes of PAS110 digestate and other biosolids that have undergone pasteurisation. Even though we are considered low risk and all our feedstock is from
TECHNOLOGY
traceable, food-grade grains, we felt that pasteurising our material is the best way to help us get End of Waste Certification. It also reassures local farmers that we will not contaminate their land with ergot or plant pathogens.” Muntons commissioned a 3-Tank Batch Sludge Pasteuriser System with Energy Recovery from HRS Heat Exchangers to treat the anaerobic and aerobic wastes. Almost 200m3 (53,000 gallons) of high liquid waste, with a high chemical oxygen demand (COD), is treated each day and as well as the CO2 savings, the project has saved Muntons more than $5.95m in energy and disposal costs to date. The digestate was blended with low COD effluent before being treated with Dissolved Air Flotation (DAF) in Muntons’ existing activated sludge plant. This stabilised the digestate and removed further COD, nitrates and phosphorus, prior to the effluent being discharged to local waterways in accordance with an Environment Agency permit. The remaining sludge was then pasteurised in the HRS 3 Tank unit and used as biofertiliser. Although the material cannot be certified to PAS110, it has been granted End of Waste Certification by the UK Environment Agency, meaning that it can be used as a biofertiliser.
The benefits of pasteurisation The HRS system works on a three tank principle; while one tank is being filled, the second tank holds the sludge at 70°C, at the same HRS helped incorporate an energy recovery section into the process.
Once the sludge is pasteurised it can be used as biofertiliser. time as the third tank is being emptied (each process lasts one hour). Waste cooling water from the CHP engine is used to heat the sludge in corrugated tubein-tube heat exchangers, which is more efficient than heating an entire tank of digestate. HRS has also incorporated an energy recovery section into the process to make it more efficient – energy is transferred from the hotter (pasteurised) sludge to the colder
(unpasteurised) sludge, reducing energy consumption by up to 70 per cent compared to conventional systems and using heat, which would otherwise be wasted. It also has the advantage of being able to run at a half flow rate, should the volume of digestate stock reduce, and the equipment’s monitoring features ensure that every batch of digestate can be traced back to the feedstock from which it was produced Once pasteurised, the biofertiliser can be de-watered if required; it can be supplied for application either as a liquid for soil injection, or a solid for muck spreading. Analysis by Muntons has shown that their biofertiliser is higher in nitrogen, potash and sulphur than most other available biosolids, as well as being a good source of phosphate and magnesium. The biofertiliser is used on local land from which the company sources its malting barley, but the company is also keen to stimulate the wider biofertiliser market. Muntons is also working with the University of Lincoln on a project to document the composition and effectiveness of the biofertiliser. This has initially demonstrated that lettuces grown with Muntons’ biofertiliser
demonstrate quality and growth benefits over artificial fertilisers of similar nutrient concentration. A further collaboration with University College London revealed that the digestate yields a type of bacteria that produces an antibiotic that kills multi-drug resistant E. coli bacteria. “For Muntons this whole project has been about maximising efficiency. Although they have an abundance of heat, they still wanted to recapture what they could, and our heat exchangers provide 40 per cent heat regeneration,” said Matt Hale, international sales and marketing director at HRS. “Our system also allows the tanks to run at half flow rates if necessary, meaning they can still carry on pasteurising without having to wait to build up a stock of digestate. Working with a company like Muntons to deliver a truly revolutionary waste treatment plant shows exactly what is possible in terms of implementing the circular economy. The results that the biofertiliser is providing in trials and in the field show just what a valuable resource it is; this success could be repeated elsewhere around the world.” F
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HYGIENE
Food manufacturing cleaning: best practices Critical to any food manufacturing or processing factory is cleanliness. Cleaning specialist Tennant has many helpful hints on keeping a workplace hygienic. Food & Beverage Industry News explains.
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n hospitality and food manufacturing environments, cleanliness is essential, especially in an era where traceability is coming under more scrutiny. However, many production floor managers and hospitality staff find it difficult to set up a cleaning process that is cost-effective, efficient, and gets the job done. There are many cleaning challenges that face food and beverage manufacturers and processors, but there are also solutions that can make sure a factory is kept up to scratch in the cleanliness stakes.
Ensuring health and safety standards are met When working with food, it is important to prioritise cleanliness and food safety at all times. Unlike some environments where it is possible to clean up at the start or end of the shift, a workspace needs to be clean and hygienic round the clock.
Different spaces that have different cleaning needs It is important to realise that different spaces have different cleaning requirements, whether it is
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a large open floor area, small space with tight corners – or a mixture of both. Plus, it might be necessary to deal with a range of floor types – from smooth-coated flooring and concrete to tiles (with or without grout), bricks, stone, slate, and more. This is an important consideration when choosing cleaning equipment and machinery.
Cleaning needs to happen during operating hours Most food manufacturing and hospitality environments deal with
long opening hours, continuous production, and even 24/7 service. That usually involves cleaning with customers and/or staff in the area. This means they need to carefully consider how they can make the area safe and minimise slippage/fall risks. Many food manufacturers operate at a large scale with hundreds of staff. That can come with extra challenges – they’ll need to identify who is in charge of the cleaning, then ensure proper training, accountability,
HYGIENE
and machine care. A lot of the time, the staff who are responsible for cleaning also have other responsibilities and demands on their time, such as serving customers or working on the production line. They need to be able to work efficiently when cleaning so they can also keep on top of other areas.
Budget constraints Most hospitality and food manufacturing organisations have a lot of expenses – rent, wages, materials, ingredients, suppliers, and equipment. In some cases, it’s not an option to hire dedicated cleaning staff, or increase hours so existing staff can improve cleanliness.
(meaning less wages to pay) with less chemicals and water (meaning improved safety).
surfaces are being properly cleaned and also try and identify areas that need improvement.
Tracking technology
Safer methods
What’s the answer to the above challenges? Most of the time, it comes down to improving cleaning practices and using the best available technology.
One way to improve accountability in large organisations is with smarter technology that tracks equipment operation, maintenance, and location. With Tennant’s IRIS Asset Manager, you can see how a machines is being used, where they are located, and whether they are being properly maintained.
The best cleaning technology
Cleanliness tests
The best way to boost efficiency and effectiveness, and get a better clean done in the same amount of time (or less) is with better cleaning technology. For example, a food production factory might replace its existing mop and bucket setup for a walkbehind scrubber. That means they could potentially get a better job done in less time
Another way to improve food manufacturing cleanliness is with regular adenosine triphosphate (ATP) tests. ATP is a type of molecule that exists in or around living cells, which (if present) can be an indicator of unsanitary or contaminated surfaces. It is a good idea to conduct regular cleaning audits to ensure all
One of the biggest safety risks with regular cleaning (especially with staff/customers around) is slippery/ wet floors. The best way to reduce this risk is to minimise slipping with methods that use less water and/ or self-dry. Tennant’s scrubber-dryers use minimal water and come with built-in drying mechanisms. Plus, users can choose the batteryoperated version to remove the risk of tripping over cords. Another benefit of reducing water usage in floor cleaning is users can avoid getting water or floor cleaning solution on surrounding equipment, which can be damaging.
Hospitality environment cleaning best practices and solutions
Tennant’s Asset Manager lets you know where and when a machine is being used.
“Tennant’s scrubber-dryers use minimal water and come with built-in drying mechanisms. Plus, users can choose the battery-operated version to remove the risk of tripping over cords. Another benefit of reducing water usage in floor cleaning is users can avoid getting water or floor cleaning solution on the surrounding equipment, which can be damaging to the machinery.”
Good operational procedures A lot of cleaning challenges can be solved by reviewing operational procedures, including cleaning schedules. Create a clear schedule that ensures everything is cleaned regularly and on time. Create a checklist to ensure that the most important cleaning processes happen continually throughout the day, as needed, to keep operation lines safe and clean.
Better training
Cleaning challenges can be solved by reviewing operational procedures.
Help people know what to do and how to do it for a safer, more effective clean. This goes with all cleaning processes, but especially cleaning equipment. Tennant’s touch screen ProPanel comes with built-in training features to help onboard a team and guide them through the steps to use and maintain your equipment. F www.foodmag.com.au | April 2020 | Food&Beverage Industry News 35
FOOD PROCESSING
CO2 production vital to food industry Mike Wheeler talks to Air Liquide’s Frank De Pasquale about CO2’s vital role in the food and beverage industry and the various ways in which it is produced. All CO2 emissions have some form of impurity in them.
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arbon Dioxide (CO2) gets a bad rap in the larger scheme of things. It is the bogeyman of the climate change world. Yet, without it, the way people consume food and beverages – even how food is packaged – would not be the same. Air Liquide is an industrial gas-producing specialist, and one of the key ingredients it supplies to the food and beverage industry is carbon dioxide, in all its forms. Frank De Pasquale is the business unit manager for CO2 and Hydrogen (H2) for the company in Australia. He has been with Air Liquide for 15 years
and has been in charge of its CO2 production for the past 12 months and is well versed in its place within the sphere of the food and beverage landscape. There is an increasing amount of CO2 in the atmosphere, but as of today this is generally not economic to recover, so industrial gas companies need to identify a suitable CO2 emission source and give it a second life by purifying it to food or industrial grade for commercial use. “Unlike some of our competitors, we never produce additional CO2
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from burning natural gas; we recycle and purify existing CO2 emissions from others. We are proud of this commitment which is part of our Corporate Climate Objectives.” All CO2 emissions are a mixture of CO2 and various impurities, but it is what makes up those impurities that matter when it comes to commercialising the product. “It could be 99.99 per cent CO2, but has 20 parts per billion of benzene in it, which at parts per billion level is not very much,” said De Pasquale. “However, such a little amount of this kind of impurity means that the CO2
is not suitable for the food industry.” And how does Air Liquide source its CO2? There are several avenues it utilises. Currently it sources feedstock CO2 from seven different industrial processes, all of which emit CO2 as they make their products – three produce ammonia, one is a power station, one is a steam boiler (both are combustion flue gas sources), while there is one that produces ethylene oxide and another is from a natural gas producer. Each feedstock source has its own set of impurities that has to be dealt with, and then the gas has to be collected so it can be made
FOOD PROCESSING
commercially viable. Take ethylene oxide as example. “We can get CO2 from a chemical process, such as ethylene oxide production,” said De Pasquale. “When ethylene is reacted with oxygen, it makes ethylene oxide and CO2. The process then requires CO2 to be removed, which we can capture, then purify for the food industry. “However ammonia plants are definitely the best feedstock source; CO2 produced this way has the least amount of impurities in it.” The reason for this, said De Pasquale, is that to make ammonia you need to have a reaction between hydrogen and nitrogen which results in a relatively clean stream of CO2 containing less impurities than other emission sources. “As you go from ammonia to ethylene oxide to natural gas processing to flue gas – you get different levels of purity for CO2 and different impurities that you will need to deal with,” he said. The cost of production varies greatly because it’s based on the processes used within the different disciplines to ensure food and beverage grade quality. In most processes, there are a few steps. “Typically, there is some level of compression – there is also, as a general rule, a degree of filtration and drying, followed by liquefaction and distillation, to purify the feedstock to the required quality,” said De Pasquale. “The process produces CO2 in liquid form, which is approximately -22˚C and 20 bar
"We continually test the quality of our CO2 in real time. We have a detailed and audited food safety management system known as FSSC 22000, which is a systematic approach to controlling food safety hazards within our production and distribution activities. This ensures that we provide a safe product to the food and beverage industries. It covers everything from plant design right through to pest control and waste disposal." pressure. Not only does producing liquid aid in the purification process, it also allows us to transport it more economically than you would if it was in a gaseous form.” Once it is trucked to a customer’s site it is loaded into a bulk tank, and the customer typically uses it in a gaseous form, which is made possible using a simple air-heat exchange system to vaporise the liquid CO2. Dry ice is another specialty of Air Liquide’s, which is the solid form of CO2 that typically sits around
-79˚C. One of the special properties of dry ice is that it sublimes from its solid form directly to its gaseous form. This is important in the food and beverage industry, when dry ice melts into a gas it does not leave a residual on the food. “Airlines use dry ice to keep your drinks cool and to transport fresh produce from Australia to export markets. The Red Cross use it when they transport blood and other human specimens such as plasmas,” said De Pasquale. “We have a large number of meat and poultry
processors that have bulk liquid storage vessels on site. The liquid CO2 is piped to their processing equipment where it converts to dry ice, which chills the meat to prevent biological or bacteriological development and facilitates product forming into beef patties or chicken nuggets.” CO2 is a product with highly sought after properties. This explains why it is used in the food and beverage industries in its liquid, solid and gaseous forms across a range of applications. Quality and the supply of a safe product to these industries is paramount, so how do they carry out quality control? “We continually test the quality of our CO2 in real time,” said De Pasquale. “We have a detailed and audited food safety management system known as FSSC 22000, which is a systematic approach to controlling food safety hazards within our production and distribution activities. This ensures that we provide a safe product to
Dry ice is a form of CO2 that has many uses in the food and beverage sector. www.foodmag.com.au | April 2020 | Food&Beverage Industry News 37
FOOD PROCESSING
the food and beverage industries. It covers everything from plant design right through to pest control and waste disposal.” According to De Pasquale, from the process aspects, it covers everything from the feedstock CO2 stream and process conditions, through to final product testing and distribution to the market. It is not just testing the final product, it’s about assessing, monitoring and controlling all risks, all of the time. “We produce and test CO2 in batches; we test it online and send samples to external labs; and we also monitor process conditions,” he said. “We know if the process conditions vary, then something could be impacting on our product quality. These are real-time variables, and the last part of the system involves testing of the final product. “If we don’t have these systems in
place, by the time the final product is made, it is typically too late. We test the final product to confirm that everything else in our system is working. It’s not a catch-all last measure – the important part is making sure the processes are in place from the beginning.” Another major and evergrowing market for CO2 is water and waste water treatment where it is used for pH control and remineralisation. Every Australian capital city’s desalination plant uses CO2. The plant is a critical water supply source, especially as drought takes hold. “CO2 is also one of the most humane way to process animals like chickens and pigs,” said De Pasquale. “It is used in MAP (modified atmosphere packaging) as a bacteriostatic agent, thus extending the shelf life of chilled and ambient products. Australian supermarket
Without CO2 there would be no beer or soft drinks. 38 Food&Beverage Industry News | April 2020 | www.foodmag.com.au
shelves are packed with trays or packs of MAP products ranging from meat and poultry to dairy products such as cheese and milk powder to pasta and bakery products. CO2 is used with all these products and is a key component of the system that extends shelf life. “Another application that I should mention is glasshouse enrichment. You can grow crops in a field, but to increase the yield of your crop and also the growing season, you grow them in a glasshouse where you control the temperature and you can control the CO2. The glass house operates at a slightly elevated CO2 level, which improves crop production.” De Pasquale is also keen to point out that he doesn’t see the production of CO2 – in the context as to why Air Liquide makes it – as an industrial process. “The way that we run our CO2
production plants is driven by the requirements of FSSC 22000, which is strictly a food and beverage industry standard,” he said. “Our CO2 plants have this certification because the food and beverage industry is our major market and CO2 is used by this market as an ingredient or as a processing aid. So these production plants are not industrial production plants, they are food ingredient production plants.” And when it comes to the general public, the bottom line as far as De Pasquale is concerned on the merits of CO2 in the food industry? “Take soft drinks, sparkling water – everybody wants drinks with bubbles in it,” he said. “And what about beer and soft drinks on tap? Pubs and bars use CO2 to dispense these beverages. At the end of the day, no CO2, no beer, no soft drinks.” F
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PLANNED MAINTENANCE
A centralised lubrication system is ideal for food processing plants.
Credit: Images used by courtesy of SKF
The benefits of a centralised lubrication system Having a centralised automatic lubrication system in a manufacturing or processing plant has many advantages, Food & Beverage Industry News explains.
L
ubrication is key to plant and machinery running smoothly. Automated lubrication systems have been around for some time, but like any technology, a little tweaking here and there can make a huge difference in making sure machinery is not only being looked after, but the right volume of grease or oil is being supplied to lubrication points at the right time. JSG Industrial Systems, which is a John Sample Group business, has introduced SKF’s EDL (Electric Driven Lubricator), which, as the name suggests, is an electronically driven and easy-to-use pressurebooster pump capable of generating high outlet pressures from low inlet pressures. JSG Industrial Systems’ technical
"Being a SKF lubrication distributor, JSG has large regional warehouses that have been supplying products and spare parts to many industries – including food and beverage – for many years." manager for lubrication, Rainer Bels, explained that the EDL is not only ideal for the food and beverage industry, but can save on labour costs, too. Plus there are other advantages. “These EDLs can either bring together all individual machines in a factory into one lubrication system that is controlled from a single location, or they can work independently of each other, but still pump lubricant from a central
40 Food&Beverage Industry News | April 2020 | www.foodmag.com.au
container,” said Bels. “Having individual lubrication systems with individual containers on machines means that people still have to go around and keep them topped up with lubricant, which can bring about contamination issues. This also means there is more chance of getting foreign material in among the recesses they are filling, which in turn affects the reliability of the machine. They are all factors that are needed to be taken into consideration
with a lubrication plan.” The EDL doesn’t have its own reservoir. It needs a lubricant source that is supplied to it under pressure, which means it needs an external pump to supply the lubricant source. It is more suited for systems where there are a lot of zones – whether they be separate machines, or a very large machine that has different sections within that machine, with groupings of lubricant points, according to Bels. “It is electronic and has a motor in it,” he said. “It doesn’t need to be near the material that is being processed. “The pump is with the rest of the electronic controls. The lubricant division system can be mounted in the cabinet with the pump, or
PLANNED MAINTENANCE
worker know when the oil or grease needs refilling? “These systems have all sorts of interlocks in them,” said Bels. “It depends on the sophistication of what the end-user wants to go to when needing to refill the oil or grease container. “There will always be a pressure alarm that tells you that it needs refilling. There will be a level indicator with options to have a few days or a month’s warning – you just have to set the indicator at the right level and the alarm will be sounded so the maintenance worker can order another drum of lubricant. It’s as simple as that.” It is common for food and beverage plant and machinery to have automatic lubrication systems in place. Most breweries have existing systems. In fact, the vast majority of food and beverage companies, have them, according to Bels. As well as being suitable for new factories, they can also be integrated into premises
Credit: Images used by courtesy of SKF
installed throughout a machine if necessary. Those distribution blocks come in stainless steel and can be washed down.” The main feature of the device is that it is compact and simple to use. It can be either controlled from a central place in the factory, or each part can be controlled individually depending on the application. How available are the parts when things go wrong, or if more units are needed as the plant expands? “Being a SKF lubrication distributor, JSG has large regional warehouses that have been supplying products and spare parts to many industries – including food and beverage – for many years,” said Bels. Bels said the key information to note is that JSG has a wide network of distribution partners in Australia, New Zealand, Singapore and Indonesia who focus on the supply and installation, as well as after-sales service support of SKF lubrication systems. And how does a maintenance
The EDL needs a lubrication source that is supplied under pressure. that are being refurbished. “Many aging lubrication systems are in need of refurbishment or upgrading,” said Bels. “That is where the EDL might be needed. The industry understands the importance of having an efficient lubrication system to extend the life of machinery in the long term.
The EDL devices are more about delivering efficient lubrication in one centralised system by supplying multiple lubrication systems from a centralised reservoir. “This increases the cleanliness of the lubricant and helps with the correct functionality of the lubrication system.” F
A good lubrication system is essential to keep a production line running.
Credit: Images used by courtesy of SKF www.foodmag.com.au | April 2020 | Food&Beverage Industry News 41
CONSUMER
Trends shaping Australian prepared meals Mintel senior insight analyst, David Ha, goes through the reasons why prepared meals are gaining more marketshare, and will continue to do so in the near future.
The prepared meals market has experienced moderate growth.
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oday, consumers are discovering new ways to nudge themselves towards better habits and are taking a more holistic approach to their wellbeing. However, consumers don’t want to compromise on taste and experience, and food and drink products including prepared meals will need to find the balance between both taste and health. According to Mintel estimates, Australia’s prepared meals market experienced moderate growth with a 4.6 per cent compound annual growth rate (CAGR) in 2014-18, however, this is expected to slow down to 3.5 per cent CAGR over 2019-23. The biggest contributor in terms of sales value comes from chilled prepared meals with 31 per cent of the market value in 2018. The prepared meal category has been highly competitive between both private label and branded players. More recently, foodservice/meal delivery brands such as YouFoodz and Sumo Salad (Sumo Well brand) have increased their presence in retail. Furthermore, private label chilled prepared meals have evolved to resonate with modern consumers by
tapping into their changing needs and lifestyles. Mintel Global New Products Database (GNPD) indicates that private label makes up for 30 per cent of chilled prepared meals launches in the past 12 months to November 2019. In Australia, Mintel Purchase Intelligence research shows that, even though private labels make up only for 30 per cent of chilled prepared meals, Australian consumers are more likely to buy them than branded chilled prepared meals. It further highlights that private label chilled prepared meals can rival branded chilled prepared meals as consumers perceive them to be on par in terms of excitement and tasty perception. With Australia’s prepared meals market set to grow modestly over the next five years, there are some notable trends happening in the market.
Power to the plants With a shift in consumer attitudes towards meat reduction and plant-based eating, brands are now embracing the plant-based meat trend and are now offering choices to consumers in the form of plant-based meat, wholesome vegetables and vegan prepared meals. Plant-based meat prepared meals are currently using similar marketing strategies whereby they leverage familiar dishes/ingredients that are traditionally made with meat. However, with the rise of plantbased meat, there could be potential backlash with its over-processed image. According to Mintel GNPD, only nine per cent of prepared meal launches between November 2018 and 2019 featured a vegetarian-friendly claim, hence, meat formats made from real vegetables, such as three-bean meatballs, could have more mass appeal. Furthermore real vegetables can also be a hero ingredient in veganfriendly meals.
42 Food&Beverage Industry News | April 2020 | www.foodmag.com.au
Better for you Consumers today are looking to achieve their health goals with everyday meals, and brands in the prepared meals segment have an opportunity to help them achieve this. Mintel GNPD highlights that high/added protein claims in prepared meals have achieved mainstream status with 37 per cent of prepared meals launches featuring a high-/added protein claim in the 12 months to November 2019, increasing from 23 per cent in December 2016-November 2017. However, communication about protein remains varied. Furthermore, with only 12 per cent of prepared meals claiming high-/added fibre in the 12 months to November 2019, health claims beyond protein are gaining momentum. Brands can use a combination of different health claims such as high protein with fibre, calorie call outs or immunity to resonate with everyday consumers. Brands also have an opportunity to enhance their health proposition by incorporating new emerging ingredients such as collagen and hemp. To help overcome the niche and unfamiliarity of these new ingredients, prepared meals can combine them with familiar and traditional ingredients, flavours or formats.
Elevated convenience through flavour and new occasions In Australia, both private label and branded players are exploring regional Indian flavours and dishes to differentiate themselves by leveraging the momentum of Indian cuisine as it
Brands have a chance to enhance their health proposition. becomes mainstream. Mintel GNPD indicates that Indian-inspired prepared meals represent 11 per cent of the prepared meals category in the 12 months to November 2019. Australia’s food, drink and culture has continually been influenced by Asia, and is reflected in the prepared meals category. From Korea to Japan, Indonesian to Vietnam, there is an opportunity to explore regional Asian ingredients and dishes to excite consumers’ lunch and dinner routines. Prepared meals are traditionally aligned with snack, lunch and dinner occasions. However, breakfast is an untapped consumption occasion, which companies can tap into and explore both sweet and savoury. Also, sides to share in a bigger portion could complement the dinner occasion. F Mintel Intelligence shows that private labels can challenge brand labels in the prepared meals space.
AIP to offer the Fundamentals of Packaging Technology residential program in Australasia in 2020 Author
Nerida Kelton MAIP, Executive Director, Australian Institute of Packaging (AIP)
The AIP is offering a new course that is designed to increase the knowledge of those who are having challenges in the packaging environment.
I
n today’s challenging packaging environment, you can’t afford to make mistakes or overlook the critical details that cost time and money. You need the knowledge – from materials properties and selection to transport packaging issues – that can help you make better decisions regarding your company’s packaging dollars. A new course offered by the Australian Institute of Packaging (AIP), the Fundamentals of Packaging Technology, has course content that has been developed in consultation with packaging subject matter experts at leading global consumer packaged goods companies who face packaging challenges just like yours. Undertake the complete course and learn about all the major segments of packaging and beyond. The AIP, in partnership with the Institute of Packaging Professionals (IoPP), are bringing the Fundamentals of Packaging Technology course to Australasia as a residential course for the first time in 2020. The residential course is divided into semesters to
The course will be split into two semesters.
Labelling will be covered in the Fundamentals of Packaging course. provide maximum flexibility around your work schedule. This course is also the basis for the examination side of the Certified Packaging Professional (CPP) designation; bringing you one step closer to becoming an internationally recognised CPP.
The course will be broken up into 4x two-day semesters over a 12 month period. An array of packaging topics will be covered including graphic design, market research, printing, lithography, gravure, labelling, barcoding, paperboard, folding cartons, corrugate fibreboard, box compression, supply chain and logistics, polymers, extrusion moulding, flexible packaging, thermoforming, blow moulding, injection moulding, closures, bottle design, metal cans, adhesives, containers, glass packaging, packaging machinery, filling machinery, production line equipment and more. There are two ways of completing the course:
1. Take the entire course Participate in the full Fundamentals of Packaging Technology residential
course which will be broken up into 8x classroom days as 4x semesters over 12 months. OR
2. Attend semesters relating to your subject-interests or knowledge gaps Content is divided into 4x two-day Semesters with each semester focussed on specific areas of packaging. You have the choice to enrol in one semester, or as many as you wish based on your professional development needs and knowledge gaps. The Fundamentals of Packaging Technology residential course will be broken up into 4x two-day semesters over a 12 month period. F
www.foodmag.com.au | April 2020 | Food&Beverage Industry News 43
INGREDIENTS
Cheers to non-alcoholic wine Botanical Innovations wanted to make a non-alcoholic wine for the commercial marketplace. It was a journey that made the company live up to its name. Food & Beverage Industry News explains.
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ost people like a good tipple, especially at dinner time or out enjoying some time with friends. However, in a time when alcohol consumption is more tempered, and when drink-driving is illegal but very heavily penalised when caught in control of a vehicle, consumers could have a new way to enjoy the taste of wine without having to worry about any consequences. Kerry Ferguson is the managing
director of Botanical Innovations, a company, that as the name suggests, likes to try new things. One of its products was nominated for a Food & Beverage Industry Awards at the 2019 event – its non-alcoholic wine powder. Currently being used for commercial applications, the idea was first mooted when Ferguson and her team realised through anecdotal evidence that there was interest in such a product.
44 Food&Beverage Industry News | April 2020 | www.foodmag.com.au
“I was speaking with a number of customers and people I work with and they all mentioned that there was a massive market for non-alcoholic drinks, but they were mainly beverages like fruit juice,” said Ferguson. “Yet, wine with your meal is really nice, but those low alcohol wines are either not made from real wine or are a combination of different products. We thought, ‘Why don’t we come up with a way to take the alcohol out of the wine and
then turn it into a powder so you can mix it into food or have it as a drink?’ That’s how it got started.” How is it made? Ferguson said that the technology the company uses is a proprietary piece of technology that she wasn’t too keen to discuss, but the most important thing is the taste. She said it tastes just like real wine but without the alcohol content. Surely, if you do something fundamental to a product, it will affect the taste. Not so, according to Ferguson.
INGREDIENTS
“It smells and tastes like wine, you just don’t have the alcohol in it,” she said. “If you buy a rubbish wine and turn it into a powder it is going to taste like the rubbish wine. If you buy a good wine and you turn it into the powder it is going to taste really nice. It is all about the quality of the wine. So you definitely can tell the difference between a good or bad wine even once the powder has been reconstituted.” Then there are the benefits of drinking it without the negative side effects of alcohol. “Red wine also contains resveratrol that is one of the active ingredients and one of the key components from the anti-aging and Mediterranean diet,” Ferguson said. “From a health point of view, a glass of red wine
powder will give you the equivalent of a glass of normal red wine without the alcohol.” Ferguson said that it is mainly being used in a commercial capacity with airlines and chocolate makers as well as for cooking in industrial kitchens and restaurants. But why buy a non-alcoholic powder when alcohol evaporates during the cooking process? It doesn’t quite work that way, said Ferguson. “When you are cooking, even after two or three hours you still have alcohol left in the wine,” said Ferguson. “What happens is that the alcohol molecules mix with the other product so they don’t actually burn off. Also, a lot of people don’t drink alcohol for cultural and religious reasons – same
with kids – you don’t want to feed them boozy food.” Why did the company decide to turn it into powder though instead of a liquid form? “We specifically wanted it in powder form because it is easier to transport. And from a cooking point of view it is a lot easier to have because there is less liquid,” said Ferguson. “We also turned it into powder because we saw it as a practical way of ensuring that we had a product that was stable. It needed to have a long shelf life and it would maintain the flavour 18 months later in its powder form. “If you just took the alcohol out of the wine and left it in its liquid form, then you have the problem that you have taken away some of the
company’s area of proficiency. “We could sell it in the retail market, it’s just that it’s not our area of expertise so we just prefer to sell it in bulk,” she said. “We do sell it locally we just don’t have anybody selling it at retail at the moment and we are looking for distributors.
"Wine with your meal is really nice, but those low alcohol wines are either not made from real wine or are a combination of different products. We thought, ‘why don’t we come up with a way to take the alcohol out of the wine and then turn it into a powder so you can mix it into food or have it as a drink?’ That’s how it got started."
Non-alcoholic wine is now available in powder form.
preservative factors. Also, because we do a lot of exports, people prefer not to transport liquid if they can transport a powder.” It took a couple of years of research and develop the product. However, although the commercial aspects were the primary motivator, there were other reasons the company was keen to produce push it to market. “In some communities alcohol is not permitted or frowned upon,” she said. “ Also there are export opportunities; places like Pakistan and Malaysia, the rest of the Middle East – there are a lot of places it could be sold into because there is no alcohol content. Also, if you are a designated driver on a night out, and everybody else has a glass of wine at dinner, and you want one too, you can’t really have one because you have to drive. With this you can have a wine and drive.” Although it is mainly a commercial product at the moment, the company does see its retail potential, but that might take a while to get going, plus Ferguson readily admits it’s not the
However, if there are people we are selling it to, they’ll repackage it and sell it as a retail product. It is on retail shelves in South Africa at the moment.” Being a company that is always exploring new ideas and new markets, Botanical Innovations is currently looking at a new product that is related to the non-alcoholic beverage industry. “We’re looking at doing a non-alcoholic spirit, but doing it in a liquid form,” said Ferguson. “We’re taking a real spirit and we’re cooking it, taking the alcohol out and still maintaining that mouth feel. The challenge there is making sure you get that sort of intensity. There is a lot more alcohol to remove – you’re talking 10 per cent to 40 per cent, so it is quite a challenge.” Ferguson said it has also been a challenge getting it to the point where the wine has the same colour, the same taste and aroma as its alcoholic counterpart. “It took us a couple of years from the start of the project until it came to fruition, but it has been well worth it.” F
www.foodmag.com.au | April 2020 | Food&Beverage Industry News 45
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DAIRY REPORT
Global dairy commodity update D
airy markets have reacted negatively to supply chain disruption and the fears of weaker demand due to the rapid spreading of COVID-19 outside China. The responses of China and other governments to contain the disease and limit the movement of people have impacted consumer spending in China, and severely disrupted milk flows, processing and land and sea logistics. However, uncertainty grows as we are now in the a global pandemic, rippling into several regions. The impacts on consumer demand, trade flows and product mix are impossible to forecast with any confidence. The risk of contracting the disease will change the way people shop, whether they eat out, as well as how milk and ingredients reach processors and retailers. Demand impacts are inevitable in
affected regions. In the background, the underlying fundamentals of the global market remain relatively positive. The tight balance in dairy markets might ease with improving growth in milk supply.
Skim milk powder Spot and futures prices weakened by spread of COVID-19, shipping disruptions causing stock-builds. Average shipped prices continued to steadily improve in December. Global trade in the December quarter was 6.1 per cent weaker against high 2018 comparatives. With the December fall, the moving annual tonnage fell 1.7 per cent below peak SMP trade of 2,491mt reached in September.
Whole milk powder European spot values softened in February while NZ prices
recovered, tightening the gap between prices. Shipped prices improved month-on-month overall and across all major suppliers. NZ was still at a premium relative to South America.
continued to find better traction in SE Asia, China and MENA, AMF trade continued to shrink – trends have worsened in the past six months and continued in January with NZ shipments down 20 per cent.
Cheese
Whey
NZ prices firm with improved demand and SMP/butter returns. EU and US market significantly below Oceania spot/GDT prices. The growth in global cheese trade remained steady at close to threesws per cent, excluding the effect of sales by Belarus to Russia.
EU spot prices rose slightly in January, steadying through February at $1,465/t. US prices continues to firm since the start of the year. The decline in global trade in whey products in 2019 was 5.4 per cent, mostly the result of weaker shipments into China and Hong Kong, which imported 24 per cent less, due to the culling of their pig herd to address swine fever and the imposition of punitive tariffs against US products. F
Butter EU demand has recovered, steadying prices. NZ spot prices are fragile with price-sensitive Asian market. The US market is weaker with improved milk production and ample cream supplies. While butter has
By Dustin Boughton, Procurement, Maxum Foods
Skim milk powder shipped prices continue to improve. www.foodmag.com.au April 2020 | Food&Beverage Industry News 47
MARKETPLACE
Deal activity takes a breather Following a frenetic end to 2019, corporate activity in the food and beverage industry slowed down in January and February 2020. Over the two-month period four acquisitions were announced.
T
&G Global (formerly Turners & Growers), one of the largest fresh produce companies in New Zealand, acquired the domestic fresh produce division of Freshmax NZ for $30m. The acquisition will strengthen T&G Global’s fresh produce business in New Zealand. Soulfresh, a plant-based food
and beverage business based in Melbourne, received a $50m investment from True. True is a UK-based retail and consumer sector investment specialist with funds under management of $400m. In addition, Robert Soros, the son of George Soros, committed additional capital to Soulfresh to take the total investment
Ben van der Westhuizen and David Baveystock are directors of Comet Line Consulting, an advisory business that specialises in acquisitions and divestments within the Australian food and beverage industry. For more information, visit www.cometlineconsulting.com.au. Date
Target Name
Acquirer
Sector
17 Dec 19
Freshmax domestic fresh produce division
T&G Global
Fresh produce
23 Dec 19
Soulfresh ($50m investment)
True
Healthy and Natural
3 Jan 20
Hudson Pacific Foodservice
Hudson Food Group
Foodservice distribution
30 Jan 20
Petuna Aquaculture (50%)
Sealord Group
Seafood
in the business to just over $50m. The capital raised will be used to grow the international operations of Soulfresh. Retail Food Group disposed of the Hudson Pacific Food Service and Associated Food Service businesses to Hudson Food Group. Retail Food Group recognised impairment losses of $18.3m (FY19) and $7.2m (1H20) on the Manufacturing and Distribution division sold. New Zealand based Sealord Group acquired the remaining 50
per cent shareholding in Petuna Aquaculture from the Rockliff family. Petuna Aquaculture was founded in the early 1990s and farms ocean trout and Tasmanian Atlantic salmon. Sealord acquired 50 per cent of Petuna Aquaculture in 2010 and will become a wholly owned subsidiary of Sealord Group after the latest transaction. The outlook for 2020 remains positive with strong investor interest in the food and beverage industry and a pipeline of exciting investment opportunities. F
Commodity Outlook WHEAT – Wheat prices to rise marginally due to lower supply in major exporters.
BEEF AND VEAL – Australian cattle prices to rise as herd rebuilding reduces supply.
COARSE GRAINS – Corn prices to remain low with high production forecast. Barley prices to rise slightly, but remain low.
DAIRY – Milk prices to fall due to global production increases.
OILSEEDS – Canola prices to rise in tandem with demand for vegetable oils.
PIGS AND CHICKEN – Pigs and chicken meat production to recover from 2020-21 onward to meet domestic demand.
SUGAR – Sugar prices to rise due to lower world production.
Source: Department of Agriculture and Water Resources (ABARES), Agricultural commodities, March quarter, 2020.
48 Food&Beverage Industry News | April 2020 | www.foodmag.com.au
NEW PRODUCTS
Winmate’s EACFA20 Microsoft Azure IoT-certified gateway Backplane Systems Technology has released Winmate’s EACFA20 Microsoft Azure IoT-certified gateway. The EACFA20 is a compact industrial IoT gateway engineered to be a stable, secure communication bridge between local devices, sensors and the cloud. It contains a low power consuming Freescale Arm Cortex-A9 i.MX6 processor and operating system support for Android and Linux. The EACFA20 features more than 12 expansion options designed to meet a variety of industrial applications that may require CANBUS and digital I/O, or wireless connectivity options with 4G LTE. Wireless connectivity and all necessary connectors allow the EACFA20 to send data from manufacturing facilities directly to cloud servers, making it suitable for various IoT applications like smart factory or machine automation and allows you to increase operational efficiencies. It is now Microsoft Azure IoT-certified to help users maximise their IIoT investments. The certification indicates that the IoT gateway is compatible with industry-accepted cloud service benchmark, allowing users to define the data flow and upload/exchange field data to Microsoft Azure cloud service platform. Eventually, having this IoT gateway device will help reduce complexity, enhance performance and improve cost effectiveness of many IoT applications.
Backplane Systems Technology (02) 9457 6400 www.backplane.com.au
Key features: • freescale i.MX 6 Arm Cortex-A9 dual core 1GHz; • android and Linux-based platform; • fanless cooling system; • compact Size 100mm x 70mm x 31mm; • expansion modules With 15+ combinations for additional interface ports and Wireless connectivity; • various mounting options: desk, wall, VESA, DIN-Rail; and • suitable for smart factory applications.
Lightweight oxygen analyser for quality control in safe-area applications Michell Instruments has launched a new lightweight oxygen analyser to provide accurate and cost-effective control of oxygen from 500ppm O2 to oxygen purity in safe area applications. The XTP501 oxygen analyser uses Michell’s thermo-paramagnetic technology for accurate and stable measurements. These sensors are nondepleting and will last for the life of the instrument under normal operation, which keeps the cost of ownership low since only minimal maintenance is required and there are no consumable parts to replace. The analyser offers users a choice of ranges to ensure the best accuracy for specific applications. There are six available ranges to choose from: 0-1/21/25 per cent O2 and 20/80/90 to 10 per cent O2, which are suitable for a range of application needs from monitoring trace oxygen in inert gases to ensuring the purity of oxygen generated for use as an industrial gas. The XTP501 is a stable instrument at ±0.25 per cent of span per month and accurate to ±0.02 per cent O2. Because they have no moving parts or liquid components, thermo-paramagnetic oxygen sensors are robust and not affected by vibration or sudden shocks. With a lightweight IP55-rated casing, the analyser is compact and easily installed. Suitable for indoor installation, the IP55 case makes it robust enough for most industrial safe-area conditions, such as food and beverage production, non-hazardous installations and small-scale industrial gas production. It has an intuitive touch screen interface that is easy to use, interrogate and set up. AMS Instrumentation & Calibration (03) 9017 8225 www.ams.ic.com.au www.foodmag.com.au | April 2020 | Food&Beverage Industry News 49
NEW PRODUCTS
Dytran 3049D series miniature accelerometer Dytran spotlight series 3049D a rugged, general-purpose miniature accelerometer available in charge mode and IEPE versions. This series of sensors feature a ceramic shear sensing element packaged in a lightweight titanium housing. It is hermetically sealed for reliable operation in high humidity and dirty environments. Certain models in this series are designed to reliably operate in temperatures up to 177°C. This series of piezoelectric accelerometers offer the same reliable performance with various mounting capabilities and can be used in various applications, such as, modal analysis, vibration control or anywhere generalpurpose, high-temperature vibration monitoring is required. The 3049D has 5.0 pC/g sensitivity, 10-32 stud mount, weighs 3.2 g and operated at -38°C to 177°C. The 3049D1 has 5.0 pC/g sensitivity, adhesive mount, weighs 3 g, and operates at -38°C to 177°C Features include: • miniature; • titanium; • hermetic; • lightweight; and • charge mode. Metromatics (07) 3868 4255 www.metromatics.com.au
Deep learning inference accelerating M.2 BM key card ICP Australia introduces iEi’s Mustang-M2BM-MX2 deep learning inference accelerating M.2 BM key card with 2 x Intel Movidius Myriad X MA2485 VPU, M.2 interface 22mm x 80mm. The Mustang-M2BM-MX2 is a deep learning convolutional neural network acceleration card for speeding up AI inference, in a flexible and scalable way. Equipped with Intel Movidius Myriad X Vision Processing Unit (VPU), the Mustang-M2BM-MX2 M.2 card can be used with the existing system, enabling high-performance computing without costing a fortune. VPUs can run AI faster, and is well suited for low power consumption applications such as surveillance, retail and transportation. With the advantage of power efficiency and high performance to dedicate DNN topologies, it is perfect to be implemented in AI edge computing device to reduce total power usage, providing longer duty time for the rechargeable edge computing equipment. Open Visual Inference & Neural Network Optimisation (OpenVINO) toolkit is based on convolutional neural networks (CNN). The toolkit extends workloads across Intel hardware and maximises performance. It can optimise pre-trained deep learning model such as Caffe, MXNET, Tensorflow into IR binary file then execute the inference engine across Intel-hardware heterogeneously such as CPU, GPU, Intel Movidius Myriad X VPU, and FPGA. Key features include: • M.2 BM key form factor (22mm x 80mm); • 2 x Intel Movidius Myriad X VPU MA2485; • power efficiency, approximate 7.5W; • operating temperature -20°C to 60°C; and • powered by Intel’s OpenVINO Toolkit. ICP Electronics Australia (02) 9457 6011 www.icp-australia.com.au
50 Food&Beverage Industry News | April 2020 | www.foodmag.com.au
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