Food Apr 2021 by Prime Creative Media

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APRIL 2021

Food cold chain – where it’s been, it’s going, and why it’s so important

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n the two years I’ve been editor of the Food & Beverage Industry News, I have never seen such interest from the industry in a feature as the one on the Food Cold Chain that starts on page 22. There are a lot of interesting things happening, all the time, in the food space, but for some reason this part of our industry has touched a nerve. And the most interesting aspect, is that for so long, a lot of the industry has given it lip-service. It’s like an add-on that you might or might not need – the ugly step-child of traceability, sustainability, food waste, energy efficiency and the other buzzwords that surround our industry. The irony being, that the cold chain helps make those other buzzwords make their mark if implemented properly. In the case of sustainability, the cold chain makes the industry more, sustainable in terms of making sure products are getting to market on time and thus making sure another of those buzzwords is kept to a minimum – waste. The energy efficiency of a good food cold chain system means less power is being used to keep the food chilled, while if traceability can show the food has gone through the cold chain, then its freshness stays intact. This is all good news for AFCCC chair Mark Mitchell, who knows the value of the cold chain. As well as providing an introduction to the feature, Mitchell also gets to inform us about the importance of good air flow in a refrigeration system in his regular column on page 44. Something I could adopt at home, as my better half likes to continually pack our freezer with little or no airflow, the consequences being a very inefficient freezer. Something, that as Mitchell

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4 Food&Beverage Industry News | April 2021 | www.foodmag.com.au

points out, can be very costly on an industrial scale. Mitchell also states in his intro piece that he would much rather the industry be self-regulatory. He doesn’t like the idea of yet more legislation on the books, but fears that might be the only option as the world becomes increasingly intolerant of food wastage and poor energy efficiencies. He makes a fair point – improving on the cold chain is not that hard, he says. A lot of issues that need to be resolved are common sense. He also points out, that in the long term, making sure the cold chain is in good working order saves companies money. Our Meet the Manufacturer this month is the irrepressible Stu Gregor from Four Pillars Gin. While we touch a bit on about his company, he is also the president of the Australian Distillers Association. Gregor is passionate about his industry and doesn’t hold back on some of things that could go a long way to making sure that not only is it sustainable in the future, but will thrive like its counterparts in the wine industry. Finally, there is a piece about Australian students doing their country proud in the WorldStar Packaging Awards. The Australian Institute of Packaging (AIP) has been a great champion of not only the awards, but those that have entered them. The AIP’s executive director Nerida Kelton gives readers an overview of the awards and how our entries fared. Have a great month.

CONTENTS INSIDE

6 NEWS

18 MEET THE MANUFACTURER Four Pillars Gin’s Stu Gregor on his business, excise and tax and why the future of the industry leaves him in high spirits. 20 FOOD COLD CHAIN From portable cooling options, through to freezer builds, this feature offers an array of solutions to those who need to invest in the food cold chain.

39 LUBRICATION The SKF Lincoln ORSCO series 170 chain lubrication system offers something that a lot of similar options don’t. 40 AUTOMATION Bürkert shows a client the many rewarding aspects of upgrading plant and machinery. 42 INDUSTRIAL INTERNET OF THINGS ifm shows how starting small on the digitisation journey can be cost effective and lead to great outcomes. 44 AFCCC

AFCCC chair Mark Mitchell explains why air flow plays an important part in the cold chain story. 46 AIP The AIP’s Nerida Kelton gives an insight into the Australian team who managed to get a silver medal and the WorldStar Packaging Awards.

47 MARKETWATCH 48 DAIRY REPORT 49 NEW PRODUCTS

www.foodmag.com.au | April 2021 | Food&Beverage Industry News 5

NEWS

ABARES reports price increase of fresh produce due to drop in overseas labour A news report released by the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) has predicted an increase in prices for certain horticultural produce. This increase is expected to last until late 2021 due to a shortage of overseas labour. The report focuses on horticulture in the March quarter of 2021 with the affected produce listed as summer vegetables, stone fruit, pome fruit and table grapes. ABARES forecasts the price for these will increase between 7 per cent to 29 per cent with stone fruit increasing the most in price. The report found that due to COVID-19 restrictions, international travel including Working Holiday Maker Visas had fallen by 64 per cent in 2020. This rapid decline in workers

The lack of overseas labour is seeing an increase in prices for fruit and vegetables.

means a shortage in workers undertaking the seasonal worker program this year. The report stated that the shortage in workers would result in a lower

supply of horticultural produce until 2021-2022’s peak harvest season. Peak fruit season usually occurs between February, March and April. Looking long term, overseas

labour is predicted to increase production from 2022 to 2024 resulting in lower prices of fresh produce with prices expected to stabilise by 2025-2026. F

Sweet deal for food supplement manufacturer A

The technology is expected to create 33 new jobs over the next five years. 6 Food&Beverage Industry News | April 2021 | www.foodmag.com.au

TP Science – a food supplement manufacturer – is set to roll out more local jobs in Meadowbrook due to $1.5 million in funding sourced from the Queensland state government’s $46m Made in Queensland (MiQ) program. The grant is designed to assist ATP Science in purchasing hi-tech production equipment. “Introduction of this world-leading technology is expected to create 33 new local jobs over five years, which is a fantastic outcome for the local community,” said Member for Waterford, Shannon Fentiman. This new technology will make production of Australia’s favourite confectionary far more efficient. “ATP Science will invest more than

$3.2m in advanced, new-to-Australia equipment to enable scale production of their unique and technically complex, low sugar, high-protein functional confectionery (Gummies) food,” Fentiman said. ATP Science managing director, Jeff Doidge, said the technologically advanced equipment would increase the company’s “Gummies” manufacturing capacity by close to eight times. This will give the company the ability to keep up with demand as they open up to export opportunities as the COVID-19 pandemic subsides. “We will be able to go from producing 8,000 packets of Gummies per shift to 62,000 packets per shift,” Doidge said. F

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NEWS

Dual-purpose cropping system claims Australian record A

The Mayfield farm has produced a bumper crop of canola.

New South Wales mixed farming business, previously described as “heavily in drought and practically a dustbowl”, has produced a record breaking canola harvest of 7.16 tonnes per hectare. The Mayfield farm, owned by the Hawkins family and managed by Peter Brooks, has attributed this success to a system called dual-purpose cropping. The system is a product of over a decade long partnership between the Mayfield farm and CSIRO, backed by investments from the Grains Research and Development Corporation (GRDC). “We’ve had great conditions in 2020, but achieving this yield didn’t happen overnight – it was a culmination of 15 years of working

with CSIRO to improve our systems,” said Brooks. According to Mayfield farm agronomist, James Cheetham of Delta Agribuisness, the canola was sown in winter into a strong paddock. Dr John Kirkegaard, a CSIRO farming systems researcher, further explained the dual-purpose system worked through allowing 20 lambs per hectare to graze in the fields eight weeks prior in the growing cycle. Thus, the fields provide a “dual-purpose” between feeding the livestock and growing crops. The dual-purpose cropping system was pioneered in canola and helps farmers through reducing additional off-farm feed and giving grazing pastures time to “rest”.

An economic analysis of the system found that $100-$200 per farm hectare can be saved through grain income and grazing between autumn-winter while the pastures are sown. “Grazing the crop in winter provides income early in the season and when managed carefully comes at no cost to grain yield,” Kirkegaard said. This new system shows a potential to improve farms incomes through moving from source farming to mixed-enterprise operations. “What we’ve found exciting from an agronomic perspective is that this occurred in a region where canola isn’t very common, and it could provide inspiration for a lot more farmers to grow dual-purpose canola,” said Cheetham. F

Barriers to booting single use coffee cups A study by the University of South Australia has found that the lack of waste infrastructure and ‘throwaway’ culture is hindering sustainable change in the coffee world. Change is required at all levels, from individuals to retailers and government agencies, according to Sukhbir Sandhu, UniSA’s lead researcher. “There’s no doubt we live in a disposable society – so much of our lives is about convenient, on-therun transactions. But such a speedy pace encourages the ‘takeaway and throwaway’ culture that we so desperately need to change,” Sandhu said. While Sandhu believes people are supportive of doing the right thing, the gap comes from knowing what is right but not being able to act upon it due to barriers. “Educating and informing people

about the issues of single-use coffee cups is effective,” said Sandhu. Sandhu said study found that the lack of recyclable or compostable cups was an unlikely deterrent from consumers continuing to buy coffee, Most takeaway coffee cups are lined with waterproof plastic.

8 Food&Beverage Industry News | April 2021 | www.foodmag.com.au

and that factors such as packaging that looked similar to reusable cups were limiting effective changes. “Then, with the popularity of arty, patterned paper cups on the rise, you may think you’re buying a recyclable

option,” said Sandhu. “But no – most takeaway coffee cups are in fact lined with a waterproof plastic, which is not only non-recyclable, but also a contaminant.” A lack in suitable waste disposal infrastructure, such as putting compostable cups in the correct green organic bin is also a factor. “A lack of appropriate waste disposal infrastructure means that even compostable cups are ending up in landfill,” said Sandhu. With South Australia just banning single-use plastics, Sandhu is hopeful for the future. “It’s important to drive home clear, strong messages about singleuse plastics and their impact on the environment,” Sandhu said. “The more we can drive people to choose reusable cups, the more uptake we’ll see. People like to mimic what their colleagues, friends and peers do, especially when it is the right thing.” F

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NEWS

Koloa Rum expands into Australia E

nabled through a new partnership with Endeavor Marketplace, Australian online retailer, Koloa Rum Company announced its expansion into Australia markets through Dan Murphy’s online platforms. “Our retail expansion in Australia is an important step toward our goal of increasing distribution and availability of Koloa Rum products internationally,” Bob Gunter, president and CEO of Koloa Rum Company said. Koloa Rum Company is a Hawaiian based rum and ready-made cocktails retailer than sources its

Koloa rum is being distributed through Dan Murphy outlets.

ingredients locally. Through using local ingredients Koloa Rum Company is able to provide employment for local communities and support the local agriculture industry. The award-winning Kaua’i Coconut and Coffee rums will be available to order through Dan Murphy’s online store, available Australia-wide. “Dan Murphy’s has a longestablished reputation for being the largest liquor retailer in Australia, and their focus on craft and imported spirits makes them a perfect platform for our premium Hawaiian rums,” said Gunter. F

Nestlé acquires Essentia as part of global water business transformation N

Essentia had sales of $251 million in 2020.

estlé USA has acquired premium functional water brand Essentia Water (Essentia). This comes as part of Nestlé’s announcement in June 2020 to expand the focus of its global water business to include international premium and mineral water brands. This move also includes shifting to healthy hydration products such as functional water. Essentia is a pioneer brand that is part of the ionised alkaline water market with its 2020 sales amounting to $251 million. “With the addition of Essentia we continue to transform and best position our water business for longterm profitable growth here in the US and globally,” said Steve Presley, chairman and CEO of Nestlé USA.

This acquisition follows Nestlé’s decision in February 2021 to sell its US and Canadian based regional spring brands including its water purification business and beverage delivery service. “We are excited to welcome the Essentia team to the Nestlé family as we expand our premium water portfolio. Essentia gives us an immediate strong presence in the high-growth, functional water segment and supports our efforts to capture opportunities with emerging consumer trends such as healthy hydration,” said Presley. Essentia will join Perrier, S. Pellegrino, San Pellegrino and Aqua Panna who are already part of Nestlé’s portfolio of premium water brands. F

www.foodmag.com.au | April 2021 | Food&Beverage Industry News 11

NEWS

Kellogg’s partnership to help hungry Australians in need T

he Kellogg’s Australia Charitable Foundation (KACF) will be partnering with the Foundation for Rural & Regional Renewal (FRRR) over a three-year period which focuses on tackling hunger in remote Australian communities. Across the three-year term, the partnership is set to donate over $300k in support grants to lower socioeconomic regions or communities identified with facing high levels of food insecurity. “The last couple of years have seen so many of our communities facing increasingly difficult times,” said Esme Borgelt, managing director of Kellogg’s Australia. “From droughts to bushfires to a global health pandemic, the impact on everyone has been significant, and those hardest hit have been our remote, rural and regional communities.” A portion of the funds will also form part of the FRRRs Strengthening Rural Communities Program, which focuses on providing rural and regional communities with funding. These grants are based on community-identified priorities

The Kellogg’s initiative is focussing on hunger in remote communities.

such as combatting food hunger and increasing community resilience. “Almost a quarter of Australians experiencing food insecurity live in regional or remote areas and the aim of the KACF partnership with the FRRR is to provide support at a grassroots level to help these communities implement innovative,

locally led solutions,” says Borgelt. FRRR is currently the only national foundation that focuses on social and economic support for remote, rural and regional Australia. Started in 2000, it has donated nearly $115 million across over 11,000 projects. “It’s fantastic to see a leading

Rise in the popularity of canned wine F indings by GlobalData, a UK based data and analytics company, has shown canned wine is increasing in popularity as part of a rise in sustainability and health and wellness trends. Despite its recent conception, Holly Inglis, beverages analyst at Global Data, said its single-serve sizing makes it a great choice for consuming at a range of occasions. “It’s small, and non-breakable packaging format makes it easily transportable, which is perfect for the growing preference for the e-commerce channel,” Inglis said.

Beside the convenient packaging, increasing environmental concerns are also driving demand. “As well as being a convenient and trendy alternative to glass bottles, aluminium cans are more sustainability efficient, with cans being more widely recycled, as well as being lighter in weight, therefore, making them easier to transport,” Inglis said. “Aluminium can format also has the potential to reduce overconsumption, as the majority of pack sizes are 25cl, unlike bottles where the standard size is 75cl, presenting an opportunity for consumers to monitor

12 Food&Beverage Industry News | April 2021 | www.foodmag.com.au

their intake reasonably.” GlobalData’s Market Assessment of the UK wine market found that between 2014 to 2019, the value of the wine market in the UK increased 3 per cent from $25.6bn to $29.7bn, with expectations for the market to continue growing from 2020 to 2024. Global Data also found that within the UK, the millennials age group was the main driver of e-commerce demand, with 23 per cent buying alcoholic products online since the beginning of COVID-19. Companies are increasing attention towards packaging designs in an

global food manufacturer like Kellogg’s make it their overarching mission to leave a mark of meaningful difference. We are delighted to be partnering with them to ensure that support reaches vulnerable communities beyond metropolitan boundaries,” says FRRR’s CEO Natalie Egleton. F

attempt to tackle this new market. Kiss of Wine, a UK company, recently partnered with a range of independent wine makers to produce metal cans, each sold with unique colour schemes and packaging. “For wine connoisseurs, wine in a can carries similar connotations to that sold in box format – lacking quality. So, producers of recent launches have paid particular attention to ensuring products carry ‘quality’, ‘elegance’ and ‘premium’ tags, with some going the extra mile by releasing products with vegan, low-calorie, and organic attributes,” Inglis said. F

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NEWS

Mars Australia swapping to solar power M

ars Australia has announced its new power purchase agreement with Victoria’s largest solar farm: Kiamal Solar Farm, located in Western Victoria. This agreement will power all of its Australians operations, including six factories and two offices. Mars, along with other giant Australian brands such as Woolworths, ALDI and Bunnings have all committed to 100 percent renewable energy by 2025, with Mars now leading the way in corporate renewable energy. “The Mars power purchase deal with Kiamal Solar Farm has seen the company become one of the first major food and drink companies in Australia to be entirely powered by the sun,” said Lindsay Soutar, Reenergise campaign director of Greenpeace Australia Pacific. “By making a major investment in solar power, Mars is driving down greenhouse gas emissions, and, to sweeten the deal, they’re helping to create clean energy jobs and driving investment for Western Victoria.” The Kiamal solar farm generates 256MW through its 714 000 solar panels, providing a large portion of

jobs in the North Western Victoria region. This includes the 300 people minimum that were employed during the construction over an 18 month period, and over 10 fulltime employees during the operational phases. Mars commitment to renewable energy not only benefits the local economy, but the wider Australian community as well, according to Andrew Bray, national

director for Re-Alliance. “Solar power generation is becoming an important new industry in the Mallee. When companies like Mars buy the power from these plants, it draws jobs and financial benefits back out to regional Australia,” said Bray. Despite this significant step towards renewable energy, calls for Mars Australia to address problems that are related to palm oil and

Mars Australia will be powered by the sun by 2025.

deforestation still linger. “Switching to 100 per cent renewable electricity in Australia is a big, practical step for Mars Australia to reduce its climate impact, but globally Mars has a lot of work to do, including ending forest destruction in Indonesia in pursuit of palm oil and addressing emissions in its global supply chain. Being a good corporate citizen doesn’t end with renewables,” said Bray. F

Mondelez International and PepsiCo to cut virgin plastic M

ondelez International and PepsiCo have agreed to decrease the use of virgin plastic in their packaging as part of a larger goal to eliminate single use plastic in their operations. This follows an engagement both companies had with As You Sow, a not-for-profit organisation that promotes social corporate responsibility through shareholder advocacy, coalition building and legal strategies.

“We are pleased to announce agreement by two of the companies we filed proposals with to cut their use of virgin plastic used for packaging,” said Conrad MacKerron, senior vice president of As You Sow. Mondelez has set a 2025 goal to reduce virgin plastic; this goal will see a five percent absolute reduction in virgin plastic across all packaging and 25 percent cut in virgin plastic in rigid plastic packaging. This change is expected to reduce 10,000 tons of

14 Food&Beverage Industry News | April 2021 | www.foodmag.com.au

virgin plastic packaging. The goal is to be achieved through eliminating single use plastic material, focusing on redesigning packaging while increasing recycled content in flexible and rigid plastics and exploring a reuse model of operation. PepsiCo is still assessing the size of the cuts it will make and is expected to announce its goal later in 2021. In 2019, PepsiCo agreed to cut virgin plastic by 35 percent by 2025

with this change influencing company sectors like the snack and food brands, such as Quaker oats. Similarly to Mondelez, PepsiCo plans to implement this change through changing packaging design, developing a reuse business model and increasing recycled content. “We look forward to other companies stepping forward to make similar commitments, and making bolder, larger absolute cuts in overall plastic packaging,” said MacKerron. F

NEWS

Surge in Chinese milk consumption and imports C

onsumption of liquid milk within China has been increasing rapidly since 2020 with growing imports from New Zealand and EU. Australia’s import volumes, however, have remained flat despite increased demand. Michael Harvey, Rabobank senior dairy analyst, reports that with many of 2020’s full-year reports being released now, numerous dairy companies in China have indicated a rapid revenue growth for ‘white milk’. Harvey said that demand for milk in China is expected to continue over the coming decade from drivers such as low per-capita consumption and increased investments due to the known health benefits of dairy products. “Liquid milk imports into China notched up a couple of major milestones in 2020, with September being the first time more than 100,000 tonnes of liquid milk have been imported in a calendar month,”

said Harvey. “Last year was also the first time that China has imported more than one million tonnes of liquid milk in a calendar year.” The three largest milk exporters to China are New Zealand, The European Union (EU) and Australia, with the EU reporting the highest increase in export volumes in 2020. New Zealand milk volumes increased by nine percent while Australia volumes remained low. Harvey, however, said that the low imports from Australia was a “reflection of market dynamics, not trade tensions”. He cited that factors such as low production and competing markets had hindered Australia’s volume level. Impacts from the COVID-19 pandemic, Harvey said, also played a role in changing export volumes. “Several of the EU’s major markets in the North Africa region have also had significant COVID19 issues and these, combined with

Australia is one of the three largest milk exporters to China. political and civil disruption in this region, have impacted the flow of exports into these markets,” said Harvey.

“And this has resulted in the EU directing an increased volume of liquid milk into China and picking up share in this market.” F

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NEWS

Visy injects $2bn into Australian green manufacturing V

isy executive chairman, Anthony Pratt, pledged an additional $2 billion investment into Australian manufacturing over the next 10 years at a Penrith-based press conference last week. Prime Minister Scott Morrison, Federal Member for Lindsay Melissa

McIntosh, Minister for Industry Karen Andrews and Minister for Foreign Affairs Marise Payne were all in attendance for the event. According to Pratt, this pledged amount will “create thousands of new green collar, well-paying manufacturing jobs, and bring our [Visy’s] total investment value in

Australia to $11bn dollars.” Pratt praised Morrison for his economic policies and attributed investment acceleration to his government. “$380 million of that investment has been brought forward over the next 18 months because of the government’s accelerated

Visy’s $2 billion investment will be spent increasing recycled content of glass bottles.

depreciation policy. It’ll be spent increasing the recycled content of glass bottles in Australia from 30 percent to 70 percent, including offering councils a glass recycling bin,” Pratt said. As of 2021, Visy’s operations currently meet two of the Federal Government’s six National Manufacturing Priorities – ‘Food and Beverage’ and ‘Recycling and Clean Energy’. During his visit to Visy’s Penrith manufacturing centre, where the press conference was held, Morrison praised Pratt and Visy for the additional $2bn injection after already initially pledging a $1 billion deal to make glass bottles at the centre in July last year. “He [Pratt] has given us a shot in the arm when it comes to Australia’s comeback, economic comeback from the COVID-19 recovery,” Morrison said. “It backs in the jobs, it backs in the technology, it backs in the investment, it backs in Australia.” F

Woolworths starts work on $184m DC W

oolworths Group’s supply chain arm – Primary Connect – has commenced building works on its new Heathwood Distribution Centre (DC) in southeast Queensland. The 42,000 sqm temperature controlled facility – equivalent to more than three times the size of the Suncorp Stadium playing field – will enable fresher, faster and more efficient deliveries of around 4,000 frozen and chilled products to more than 260 stores across Queensland and northern New South Wales. The DC is set to open in the first half of 2022 and will be co-located with Woolworths’ meat supplier

Hilton Foods Australia’s production facility. This will help take up to 390 truck movements off Brisbane roads each week by consolidating delivery loads to stores. “We’re proud to be investing in our Queensland supply chain network for the benefit of our customers and store teams,” said Primary Connect general manager for Queensland Dale Acton. “Over the next five years we plan to inject a total of $500 million into the Queensland economy across our store network and supply chain, e-commerce and shopping centre developments — creating more than 5,000 new jobs.” The DC is being built by Vaughan

16 Food&Beverage Industry News | April 2021 | www.foodmag.com.au

Constructions and will create around 200 Queensland jobs throughout construction. Lord Mayor of Brisbane Adrian Schrinner said: “In these uncertain times, we need major job-creating projects that will create certainty in job opportunities and economic growth. That’s what the Heathwood Distribution Centre will bring to Brisbane by securing around 200 jobs during construction and sustaining around 300 jobs after. At full capacity, more than two million cartons a week will move through the Heathwood DC bringing customers chilled and frozen goods from more than 400 suppliers. The Heathwood DC is also targeting a

Five Star Green Star rating from the Green Building Council of Australia, with a major solar panel system on the roof and charge points for electric trucks. The $184m investment in the Heathwood DC is majority funded by LOGOS (property development costs of $148m), with Woolworths signing an initial 15 year lease on the site. In October 2020, Woolworths unveiled a $12m upgrade of its Townsville Regional DC – more than doubling its original footprint. It also operates the 92,000 sqm Brisbane Regional Distribution Centre at Larapinta to sort and deliver fresh and ambient goods to stores across the state. F

NEWS

Industry scholar striving towards sustainable wine practices P hD student, Anne Johnston, is the recipient of Wine Australia’s Dr Tony Jordan OAM Award 2021. Her research will explore agroecology – the use of nature’s ecosystem services in farming practices – in Australian viticulture and the obstacles that stand in the way of its adoption. Johnston said that the agroecological practices can improve sustainability in the grape and wine sectors to combat the effects of climate change. “Around the world agroecology is delivering environmental, economic and cultural benefits in a number of agricultural industries and my work will identify and promote the viticultural practices that are delivering those benefits,” Johnson said. Reaching beyond the usual biophysical benefits, which are often studied in her field, Johnson intends to explore the human factors that

Agroecological practices are said to be able to improve the sustainability of grapes.

influence decisions. “My research aims to take a holistic look at this [decision making] to provide a model for future research strategies into social impacts of sustainability that could be extended across the entire sector,” she said. Johnston’s research is backed by

Wine Australia. “Mrs Johnson’s research will contribute to the increasing body of work on sustainability for the Australian grape and wine community and will help us to better understand how we can adapt to be more resilient to future challenges,” said Wine

Australia general manager, Dr Liz Waters. Wine Australia provided 10 successful candidates with scholarships this year which investigated the key areas of Australian grape growing, wine making and business. F

Coles moving from coals to renewable electricity C

oles has announced its commitment to switch to 100 per cent renewable electricity by 2025. As part of this announcement, Coles also revealed a new power purchase agreement with Lal-lal windfarm, Victoria. According to Greenpeace Coles has agreed to reduce 75 per cent of emissions by 2030.

Australia Pacific, Coles is responsible for 1 per cent of Australia’s total electricity consumption. “Coles making the clean energy switch will put a big dent in Australia’s greenhouse gas emissions, inspiring confidence in towns and cities across the country that even the

biggest and most complex businesses can run on renewable energy,” said Lindsay Soutar, REenergise campaign director. Coles has also agreed to reduce 75 per cent of emissions by 2030, in line with their Scope One and Two emissions.

This will be the third renewable electricity deal Coles has made after its agreement with Queensland CleanCo in 2020. Coles has been sourcing 20 per cent of their power from CleanCo’s wind and solar farms since then. Coles first renewable energy deal was made in 2019 with three solar farms in NSW providing 10 per cent of Coles overall energy. This decision placed Coles has the first major retailer to sign a power purchase deal. Woolworths and ALDI have now also committed to shift to 100 per cent renewable energy. “Australian businesses have so far committed to enough renewable energy to power 1.6 million homes – that’s almost every house in Sydney,” said Soutar. F

www.foodmag.com.au | April 2021 | Food&Beverage Industry News 17

MEET THE MANUFACTURER

Stu Gregor at the Four Pillars distillery.

The rising tide floats more boats COVID-19, excise tax, a united industry, start-up costs – Mike Wheeler talks to the Four Pillars founder and Australian Distillers Association president Stu Gregor.

tu Gregor is an upbeat guy. The rigours of the past 12 months could have been testing for many industries, but the boutique spirits industry is doing okay, according the founder of Four Pillars Gin. As well as being the manufacturer of awarding winning gins, Gregor wears the hat of the Australian Distillers Association (ADA) president, an industry body that looks after the interests of the smaller, boutique, independent distillers. The impact of the COVID-19

on the industry has had varying effects depending on where you were located and what part of the business you are in, said Gregor. If a company was in the duty-free sector, which involves travel retail, then it was hit hard. This is also true if a company was in Victoria where lockdowns were commonplace. However, if you had a distillery in Western Australia, there were less lockdowns, and if they were quick off the mark, then they managed to ride the hand sanitiser wave. “Western Australian distilleries have had a successful year because

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they’ve had very little COVID and less restrictions, and therefore areas like Margaret River had some of the best trading conditions of recent times,” said Gregor. “From Easter 2020, we made a lot of hand sanitiser in a very short period of time. It was good cash flow for a lot of businesses who weren’t selling a lot of spirits. “It showed to me what the distilling industry can do when it comes together. We had a lot of people dropped what they were doing and produced sanitiser. Some did it because it was the right thing to do and their local

communities needed it.” And while COVID-19 may be a temporary anomaly in terms of having an effect on business – and with vaccinations rolling out over the next 12 months, it should become less of an issue – there is a more permanent thorn in the side of distillers. One that all producers of alcohol-based beverages talk about sooner or later when being interviewed – excise tax.

Turning off the tax tap Excise tax is a vexed issue, according to Gregor. It is a cash cow that

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keeps on filling up the government coffers, and it must be hard for any government to let go of such monies coming in. From the health system to roading, it goes a long way to pay for consolidated projects that the government wants completed. Along with fuel and cigarettes, alcohol is a huge contributor to the funds. Distillers pay more than brewers and wineries, but rather than get bogged down in the minutiae of that argument, Gregor would rather the powers-that-be take a longer term view of excise tax collection in the alcohol industry. “We pay the third highest excise tax in the world, whether that be beer or spirits. That makes it difficult for business to grow and to invest back in Australia, whether they are a local producer or multi-national,” he said. “A highly taxed environment is a hard industry for people to invest in because you don’t make the same rate of return you’d make in a different market or category. It is somewhat stifling the industry, and it would be hugely beneficial if we were able to get some excise relief over the next year or two. “You’d see big growth in the Australian distilling industry. You’d see more export dollars,

Australia’s drinking culture is changing for the better according to Gregor. you’d see more hospitality. It’s all about a better drinking culture. Craft distilling, whether it is gin, whisky or rum, is playing its part in

changing Australia’s drinking culture for the better. I’m not really hopeful the government is listening to us.” Gregor realises that the

government’s argument might be, ‘if it’s such a terrible tax environment, why are there 250 distillers when there were only 30 a few years ago’.

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“That is not always an easy argument to progress, but the answer is we want to make sure there are profitable businesses,” he said. “A lot are start-ups that are not necessarily worrying about their profits for a few years while they get going. Over time, you need these companies to be profitable so they employ more people and they reinvest more into the community. You want businesses to be successful and not be on the fringe. They pay more PAYE, more company tax, more GST – it goes on. At some point you just can’t keep on jacking up excise tax. It is not sustainable and the government know that, but I think they are pretty addicted to the excise tax. It is an easy tax to sell to the public.” And it’s not like it is an easy business to set up. There is the foreknowledge of how to distil a good spirit-based product. Then there is the plant and machinery, and on top of that there is the supply chain and selling of the product once it has been bottled. “It is a capital intensive industry. To be a member of the association you have to have your own still. Not

a contract made under someone else – like a created brand,” said Gregor. “I don’t think you can seriously think about creating a distillery unless you want to sink 100s of 1000s of dollars into it. If you really want to set up seriously, and you want to have a nice store, and a couple of good sales reps, and you want to do some marketing and everything else, you won’t get too much change out of $1 million.” What Gregor does see, is that the spirits industry, especially gin, is going extremely well. He believes that is because gin in Australia has a lot of different botanicals going into it, so the different flavours are catching the taste buds of discerning drinkers. That along with the likes of Sullivan Cove Whisky in Tasmania winning international awards, is putting the Australian spirits industry on the world map. But what about the bigger players in the space? In a recent interview with Food & Beverage Industry News, Diageo Australia managing director Angus McPherson, said he thought it was great that local distillers are not only multiplying but making a mark.

Gregor agrees – everybody within the industry is supportive of one another. Isn’t it a little peculiar with competing businesses seemingly supporting each other?

"If there are more sustainably successful Australian distilleries out there, the better for us all." “If there are more sustainably successful Australian distilleries out there, the better for us all,” said Gregor. “Diageo has Tanqueray and Gordons gin, which between them have a huge percentage of the market. To me, the more people drinking Tanqueray and Gordons means that they will eventually discover other spirits. Very few people dip their toe in any category at the top – whether it is wine or gin or beer, motor vehicles, technology or whatever. Everybody enters towards the bottom of the market. Your first wine isn’t a Grange, it was

The spirits industry is yet to see it’s full potential, according to Gregor. 20 Food&Beverage Industry News | April 2021 | www.foodmag.com.au

probably a four-litre cask. “We try as a business, and I certainly encourage it across the broader industry, to not disparage your competitors, because apart from everything else, it is not very cool. They’re out there having a go. They’re trying to run their business and keep their staff employed and their family fed. There are obviously some people you like more or like less, but I don’t think it is very cool – especially a young industry like ours where there are a lot of small companies and families – to disparage them.”

The future As to the future of the industry, Gregor thinks there will be continued growth over the next five years. He doesn’t believe the industry has reached saturation point. He concedes that there might be some attrition along the way, but that there will be a whole lot of new distilleries as well. “I think there is enormous potential,” he said. “Just look at South Australia. Its government is saying to the spirits industry, ‘we’ve created a wonderful wine industry here, how do we replicate that with the spirit industry?’ I know their Premier is right on board and they are looking at it in terms of having a great wine and spirits industry, and they think it is good tourism play for a state like South Australia. “The Victorian government is similar. It sees the drinks industry – not just wine – as an opportunity to give people that extra value whether they come to Melbourne or anywhere else. You have to encourage people to go out to the Mornington Peninsula and visit a winery, but you also might visit a gin or whisky distillery.” Gregor knows the lie of the land for boutique distillers and is under no illusions that it has to compete with the bigger companies to make a dollar. But he is confident that there is enough room for everybody in the market – even newbies just starting out. “We can’t compete with the multinationals on price, because they have economies of scale 1,000 times what we’ve got,” he said. “But I can compete with them on quality, so I have to ask my customers for a little bit more to buy my stuff, because there is a little bit more craft and little more hand made. Australia can make the world’s best spirits.” F

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FOOD COLD CHAIN

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Companies need to follow current standards and management principles.

Regulation last resort for cold chain champion While progress has been made on Australia’s food cold chain, there is a still a long way to go according AFCCC’s chair Mark Mitchell. Here’s why.

he biggest challenge in Australia is to get all stakeholders in the cold chain to recognise a compliant cold chain process for what it actually is – a quality management system that requires verification of temperature across all the steps. So says Mark Mitchell, chair of the Australian Food Cold Chain Council, when asked about the most important aspect of the food cold chain in Australia. Mitchell and the council have been an advocate for cold chain issues over the past seven years, and while he has seen progress in that time, there is still a lot of work to do.

“There has been a lot of knowledge transfer and a lot of awareness,” he said. “We haven’t gone for the easy route, which is what many not-for-profit agencies do and ask for the government to solve all their problems. Running off to the government and asking for fixes to bad situations through legislation is not the total answer in our view.” And that is one solution that Mitchell doesn’t want to endure. He would much rather the food industry become compliant in a voluntary manner rather than going down the route of state or federal governments having control, but perhaps a little intervention from government might

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be needed. “To be frank, it’s an ongoing battle. There is no direct active involvement by government at local, state or federal in cold chain auditing or processes. We have deliberately stayed away from that because the last thing in the world we want is more legislation,” he said. “We over legislate. None of us want a nanny state. Our approach is that we want to make sure things are moving forward. We have engaged at a high level with the Australian Fight Food Waste CRC, and we are working with the federal government and state governments where we can to have voluntary agreements

within industry. Mitchell said he would like a system in place that sets down guidelines and requirements that companies and stakeholders adhere to without having to involve regulatory bodies. The current standards and management principles are already there but they need everyone to follow them. He believes if he can get everyone to sit down and come up with a set of voluntary agreements that will achieve better outcomes, then it is a win-win for all parties. It is the council’s number one goal for 2021. However, he does acknowledge that might be wishful thinking.

FOOD COLD CHAIN

“If it can be done in a selfregulatory basis, that would be a wonderful outcome. But I fear that some regulatory intervention might be required,” he said. At its most basic, Mitchell sees the cold chain as a quality management system based on HACCP principles, with the main aim of verifying the quality of the system. “In cold chain language that means temperature,” he said. Mitchell said it is also about quality of product so that a product can live out its full shelf life and won’t degrade prematurely. He also said it is important that it gets eaten safely, which is the long-term point of having a cold chain. “When temperature abuse occurs in the cold chain, and it is known, the product gets thrown out at the point where that abuse has occurred,” he said. “If the abuse is unknown and it has occurred in the cold chain, and the product at the end of its journey gets put on the shelf and is taken home, then it won’t last long on the shelf.” There was a recent study done by the Department of Agriculture, Water and the Environment, and Refrigerants Australia, and the

AFCCC participated in the study. In the cold chain alone, the study came up with $3.8 billion in costs in terms of losses. According to Mitchell, overall, the whole food industry would cost approximately $20 billion annually. “There are some great larger and smaller players out there doing their bit to reduce waste,” he said. “And they are really mindful of it. Others treat food waste as a cheap way of not having quality management systems in place. Rather than putting in a sophisticated quality management system and process in place, the non-caring bean counters out there look at the cost alone and not the total outcome of achieving environmental and social goals. Sometimes they see that to save a percentage of waste does not equate to a good enough payback for the company to work to. It is cheaper to throw the food out.”

Moving forward When Mitchell and the council started out they had a number of goals they wanted to achieve. How are those goals coming along? “My number one goal and sole aim at the moment is to work towards putting together a

bunch of those aforementioned voluntary agreements between major stakeholders in food supply in Australian that all have cold chain,” he said. “These agreements will set down requirements for the whole industry to collaborate and participate in building a broad, compliant cold chain. We are also working with Fight Food Waste groups. There is a new company being formed under the food waste CRC, Stop Food Waste Australia, and we are working in there to advance issues regarding to food cold chain.”

better for business to have a better product, particularly from a export perspective. There is that selfish commercial side of this and this is an area where the Departments of Agriculture and Primary Industries could help with some intervention and assist our food exporters to put together a better outbound cold chain. This is so when our export food products arrive at their destinations it is a better product. I think we are getting beaten by other countries. There are some South American countries that do a better job than us. New Zealand does a

"These agreements will set down requirements for the whole industry to collaborate and participate in building a broad, compliant cold chain." Mitchell is at pains to point out that the food cold chain is not just about food waste. It is one part of it, and it is an important part of the story, he said. But cold chain is also about quality product and having the ability to export such produce. “Australian exports need a better cold chain,” he said. “It is

good job. I just don’t know if our food export is as good at cold chain as it could be. “We also have a huge challenge due to distances. Were up against it, it is not an easy gig for us. For us to get product down the east coast of Australia, and get it on a boat and get it to Asia is a big challenge.” F

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www.foodmag.com.au | April 2021 | Food&Beverage Industry News 23

FOOD COLD CHAIN

FreshForward was established by Etihad in 2018.

FreshForward – the face of progressive perishable air transport FreshForward talks to Food and Beverage Industry News about its IATA CEIV accreditation, its involvement in Australian markets and how it’s utilising data to change air transport.

ir transport has been the prevailing choice for transport of perishable goods since its conception in the 1900s. Since then, it has only continued to increase in demand and industry complexity. Etihad Cargo’s FreshForward product is one air transport service that is not only aware of this, but contributing to, and effectively changing the industry today. Established in 2018 as a branch of Etihad Cargo, FreshForward offers a perishable transport service designed to efficiently and effectively transport fresh fruit and vegetables, dairy, fish, meat and flowers across the globe. Despite last year’s disturbances related to COVID-19, transport for perishables remains high, according to Fabrice Panza, Etihad Cargo’s manager of global cool chain solutions. “It’s true. Globally, you would have faced a decrease in the capacity (due to COVID-19) but when you look at the figures you also see that perishables continued to be transported at a high

Etihad’s FreshForward cargo service can handle high volumes of produce. volume for many airlines,” he said. With a high volume of produce being transported, FreshForward prides itself with a consistent and thorough examination of the factors and best practices in the cold chain process that affect maintenance of the product. “When we look at perishables,

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we look at the kind of packaging to be shipped; there are quite a few requirements depending on the commodity itself and the nature of the goods,” said Panza. But it’s not only about catering to the best maintenance of the product. “It’s about speed and being quick

in the process,” said Panza. “It’s about effectiveness and productivity, it’s about making sure it’s the right temperature during operation with different commodities, and it’s about providing the right environment and conditions so that from a product point of view, the integrity of the product is being respected.” And to control the right environments, FreshForward has high-grade equipment to make sure the expectations of clients are being met. “We have a very young fleet; the facilities are very modern, and they are equipped with temperature control devices. That means even during flight, we are capable of providing the right temperature environment at all times,” said Panza. Care for the products, however, doesn’t start when it’s on the flight. “We store the perishables in cool rooms before the departure, and immediately upon arrival the products go right to our facilities,” said Panza. “An important step for us was to

recognise all these elements, such as the amount of time taken before and after the food is transported. It is all part of process that should be standardised to a high level, and this is why we went into the IATA CEIV thresh certification in 2019.” The International Air Transport Association (IATA) is a global trade association between airlines that created the Centre of Excellence for Independent Validators (CEIV) accreditation. The certificate sets standards, regulations and guidelines for international and domestic transport of perishable goods, ensuring that the safety and specific needs of the product are met. Receiving an IATA CEIV certification is a big achievement, especially considering how recently FreshForward got into the market. Currently, there are still few established airlines able to claim this title. “The (IATA CEIV) certificate proves that we handle any kind of perishable goods at the highest standards,” said Panza. “The IATA CEIV accreditation gives the confidence to the exporters, the growers, the farmers all the way to the freight forwarder and consignees, that it’s been handled in the right manner.” With such a vast distance between Australia and many of its consumers, it’s important the transport services used are able to also meet the volume of products being exported. “Australia’s market is primarily fresh meat, fruit, flowers and dairy. FreshForward is able to support that volume, while maintaining the integrity and quality of the product. This is vital for the quality of the Australian product,” said Colin Nicholls, Etihad Cargo’s area manager - Australasia. Besides a focus on maintaining the quality of the perishables it transports, FreshForward is changing traditional air transport through the increased care and support for the companies for whom they transport goods. Their membership in the Australian International Freight Assistance Mechanism (IFAM) scheme presents a key example. Created in response to COVID-19, the IFAM scheme is an Australian government program aimed to support air connections worldwide. “We are only one of eight airlines that was awarded to participate,” said Nicholls. “The scheme is driven to support the Australian exporters, growers and farmers to keep the Australian products in overseas

markets that they competed in for many years and want to maintain their involvements in those markets.” FreshForward, through this scheme, was awarded periods of contract from the Australian government, with 2021 marking the sixth agreement with them. “Etihad Cargo is proud to be part of the IFAM program and I feel our FreshForward product has definitely supported being part of that scheme,” said Nicholls. FreshForward’s ability to realise the importance of data and to utilise it to change how consumers and clients see the industry, places them as pioneers for digitalising air transport. “A company we are working with is developing a smart code for their products and packaging. This allows anyone who can capture the QR code to learn the story behind the product,” said Nicholls. Through using the QR code, it gives transparency not only about the quality of the transport service, but also about the product, such as how it was kept and the conditions it was in. “We’re looking to re-create the journey the product as taken, and we’re trying to develop some videos with them to create some global exposure for their clients. We want to show that they are part of the airline and it’s not just them getting their meat to destination,” says Nicholls. For FreshForward, it’s about creating strong evidence on what has happened in the journey. “The technology allows us to be more efficient and to reflect how we can continuously improve ourselves,” add Panza. “This is all linked with IATA CEIV certification – the fact we are using this data earnt us this IATA CEIV certification. It means that we are producing data and we are analysing what is happening within the food chain to improve it.” FreshForward is changing the face of air transport. It is no longer simply about moving products from one area to another. Even more so, as economies start to recover from the pandemic, FreshForward is looking to create partnerships and support the supply chain of a range of companies. “It’s not about the airline, it’s about the real cooperation between the farmer, the freight forwarded and the consignment,” said Panza. “You can’t work alone in this.” F

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www.foodmag.com.au | April 2021 | Food&Beverage Industry News 25

FOOD COLD CHAIN

How dry ice is driving cold chain processing David Petroff, national industrial bulk manager of Supagas, explains the benefits and uses of dry ice in today’s cold chain industry.

reated in the 1960s, Supagas is a supplier of gases in Australia and also a subsidiary of the fourth largest gas supplier in the world, Taiyo Nippon Sanso Group, a member of the Nippon Sanso Holdings Group. This gas company initially started manufacturing dry ice in 2005, but while dry ice might seem an obvious product stream for the company, it wasn’t always this way. “Back then, the people in the company weren’t sure how dry ice was going to be used and how much was going to be sold; it had a limited shelf life. It was pretty much a leap of faith to enter into that market, and the vindicating factor is that it’s still going strong and continuing to grow for Supagas today,” said Supagas’s national industrial bulk manager David Petroff. Since then, demand for dry ice, especially as part of the cold chain, has been rapidly growing. “It’s a versatile product. It allows you some way of clean, temporary and portable refrigeration; that’s

Dry ice temperature usually sits around -78˚C. what dry ice is about,” said Petroff. The quality for dry ice depends on where the carbon dioxide is acquired. The carbon dioxide is taken from its production plant and transported to where the dry ice machines are located; from there, these machines have the capability to make dry ice in the form of pellets, slices or blocks that are either extruded or moulded depending on which type is being made.

Versatility

Blocks of dry ice are used in freight forwarding enterprises.

“Some examples are meat processors,” said Petroff. “They hang the carcasses and slice and dice them, but there’s a period of time in between when they actually produce the cuts, to when it arrives at the retailer where it needs to remain below a certain temperature. They put it (dry ice) in bins with meat after it has been cut. The dry ice used in this example is the smaller pellets or snowing with dry ice. Then there are the dry ice slices. According to Petroff, there is a whole

26 Food&Beverage Industry News | April 2021 | www.foodmag.com.au

dry ice industry based around the airline catering business. He cites the trolley-cars pushed on aeroplanes. “They will use slices of dry ice in the carts they push up the aisle. When you get your fresh roll or drink and you’re wondering ‘Why is this cool?’ It’s because of dry ice in a hidden compartment up the top of the trolley-car,” he said. Dry ice’s temperature usually sits around -78˚C and works as a heat exchanger, with no mess. Since carbon dioxide weighs 1.5 times heavier than air, during the sublimation process where carbon dioxide turns to gas, the cold carbon dioxide gas will drift down. “When it’s turning from carbon dioxide to gas, that heavy gas is going down inside the cart and cooling it down,” Petroff said. Finally, blocks of dry ice are used in the freight forwarding industry. Perishable foods and pre-packaged and frozen meals all utilise this form of dry ice. For example, in Australia there’s producers who grow oranges,

they catch lobsters, and they catch fish – these go all over domestically and overseas,” explained Petroff. “They get all these perishable products into their refrigerated warehouses then they need to be able to move them to all parts of Australia and also overseas. They don’t always have refrigerated transport, so they rely on dry ice to provide the mobile kind of portable refrigeration.” Petroff said. “Quite often it’s put into a foam box or esky and kept cold by dry ice – it’s portable. Its portability is one of its attractions.” Once perishables are in the warehouse they will have a shortened lifespan if it doesn’t have some form of refrigeration. Not everybody has a warehouse, not everybody has refrigerated transport,” Dry ice can last anywhere from one to seven days. “It is a temporary product and a temporary way of keeping things cold,” said Petroff.

Benefits “One of the main benefits of dry

FOOD COLD CHAIN

ice, when its making things cold, is that it’s not turning into water – its turning into a gas, so it leaves no mess behind,” said Petroff. Supagas’s dry ice is used with some big brands, popular for pre-packaged meal services. “They use our dry ice. The main reason they use it is because the dry ice gives superior longevity and ice cooling capacity compared to frozen gel packs. And nothing comes back. However, in a box with frozen gel packs, the problem is the gel packs are still there when they’ve melted,” said Petroff. “So, it’s not quite as nice in terms of the environment.” Dry ice turning to gas instead of liquid once it deteriorates is not the only feature of the product. It also has around double the refrigeration capacity of traditional water-ice and has a “one-way ability” with no mess as Petroff calls it. Businesses also utilise Supagas’s dry ice in the rapid cooling of the foods and preservation process of the cold chain, such as in ‘Ready to eat meals’. “Meals are rapidly cooled using dry ice; it then it goes into refrigeration,” said Petroff. “This locks in the flavour and the goodness

Dry ice helps keep perishables fresh. of the food by making it cool really fast.

The future Dry ice really is the unsung hero of the cold chain process, according to Petroff. “The people who use it are mainly the ones behind the scenes. When

we look at supermarket freezers and when we buy foods, we’re not generally exposed to dry ice,” he said. “It’s a lot of people behind the scenes, like those who deal with frozen meals or perishable foods or meals that need to be transported to rural areas of Australia that use it, even the people that buy the foods

don’t really see it.” With dry ice functioning in so many parts of the supply chain, not only for food, but for preservation of beverages too, Petroff is confident in the demand for dry ice will continue to grow. “I see a future in dry ice – it is not going away quickly,” said Petroff. F

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www.foodmag.com.au | April 2021 | Food&Beverage Industry News 27

FOOD COLD CHAIN

Automation in Illawarra Smallgoods’ factory has lead to better efficiencies.

Auto freezers – automation in cold chain today Rob Blythman shares the journey of Total Construction during the assembly of Illawarra Smallgoods’ auto freezer and explains how automation of the cold chain is lowering production costs.

aving undergone sustained growth over a prolonged period of time, Illawarra Smallgoods developed a need for more onsite storage amidst tight space restrictions. Although the onset of COVID 19 resulted in a significant reduction in trade, Illawarra remained positive about the future and decided to press on with the expansion. The solution it settled on was an Automatic Storage & Retrieval System (ASRS) freezer: a hightech freezer containing automated “shuttles” that could deposit, retrieve and automatically organise the packaged meat pallets. This was possible from outside the freezer, with low labour costs involved and no need for human intervention within the freezer. “The ASRS freezer was an extension to their existing facility,” said Rob Blythman, general manager of the engineering construction group

Total Construction. “It’s got automatic “Shuttle Movers” on each racking level that handle the pallets of meat. The freezer is five racks high and the shuttles automatically store and retrieve the pallets from wherever they have to be retrieved from, using QR codes to identify their locations”. Illawarra Meats had decided to digitalise its cold chain process for a number of logistical reasons. “To put in a manually operated freezer, over the long term, would cost them a lot more money in ongoing operations costs (people),” said Blythman. “One of the most expensive things in Australia is labour. It’s not systems or equipment, its labour. To have to employ another five or six logistics people inside the business, just didn’t equate for the amount of growth in business. They still needed the capacity, which is why they decided to do this.” According to Blythman, the costs

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would pay itself off in the following years. He said it will cost them a bit more upfront now, but over the next five or ten years the company will recoup those costs. Labour costs are ongoing and are never fully recouped, he said. He also pointed out that digitalisation isn’t just about labour costs though. “It also reduces power costs. Once that freezer’s operational, those doors are open for far less time than a traditional freezer, so you don’t lose anywhere near the amount of cold air or introduce large volumes of moisture, removing the need for extensive defrosting. To keep that freezer at -18°C ends up costing you less in power, it’s far more efficient,” Blythman said. While the ASRS freezer system was designed overseas, it required a level of local skill to build the building housing it and to install and set everything up.

Started in 1994, Total Construction has 25 years of experience under its belt, along with a recent 2020 award for the Excellence in Construction. It was able to build the ASRS freezer with specific budget limits and requirements to automate Illawarra Smallgoods’ refrigeration system. “We had to build the building and make sure it was exactly the right size for the equipment, for the racking and the automation,” said Blythman. “We had to make sure all the services were there; the right power supplies were there and that all the right connections were there within the building so there would be no complications during installation. “You’ve really got to work hand in hand with the automation and refrigeration people to do that and that’s really where the cooperation comes in. Traditionally an ASRS freezer was quite expensive and mainly the domain of the larger F&B

FOOD COLD CHAIN

There were issues with the project, but overall the construction went smoothly.

players, now it’s quite reasonable cost wise. “Small to medium operations can now afford to put these systems in,” he said. Early in the project trouble struck; it is the threat to feasibility that every construction company dreads – the project team found asbestos in the ground, which was from decades ago. The owner didn’t know about, no one knew about it. And once it was detected by the Total Construction team, it had to be removed. Despite the impacts on the costs and feasibility of the project, Illawarra

Once completed, the facility met the needs of Illawarra Smallgoods.

Smallgoods decided to push through with the long-term gains outweighing the short-term costs. “It took us about four to five weeks to remove and we had to take off 1.2 metres of dirt across the whole site and dump it at an asbestos facility,” said Blythman. Illawarra Smallgoods isn’t the only company jumping at the chance to automate. “I think a lot of players in the market have been holding off for the last six to eight months on doing any expansion works. We found that in

November to December last year, a lot of buttons got pushed to go: to start designing, to start works and get the ball rolling,” said Blythman. “For the food and beverage sector, a lot of companies are starting to reinvest money at a fast rate. It’s like they have six to eight months’ worth of work to catch up on, so a lot of projects are really steaming forward, and I think what you’re going to find is that same argument – it’s about saving on labour costs in operations. “The food and beverage industry needs to automate as much as they can

throughout their facilities and I think over the next 12 to 18 months you’re going to see a lot of that coming to the fore, whether it’ll be automated production lines, as well as automated storage freezers. Everything and anything that can be automated, they will try to implement because it’s products that’s actually making you money, not labour,” said Blythman. “They know the demands out there for their products and its only increasing – they are all seeing a boom coming in Australian-made food and beverage and they want to be ready.” F

Choose Olivo insulated containers as your cold chain solution • Deliver ambient, chilled and frozen products all in one truck • Containers on wheels allow you to travel where no truck has gone before • Products stay at the exact temperature right up until they are transferred to a freezer or fridge

Contact Coolpac today to find out more www.Coolpac.com | 1300 266 555

www.foodmag.com.au | April 2021 | Food&Beverage Industry News 29

FOOD COLD CHAIN

Cold storage builds to ripening environment PBBG’s Paul Brady knows the importance of the cold chain process in Australia’s food landscape and knows what it takes to build an efficient cold storage facility. Food & Beverage Industry News explains.

aul Brady has spent the best part of three decades making sure Australia’s food cold chain is up to standard with the best in the world. And while the director of the Paul Brady Building Group (PBBG) knows there is more work to do, he is optimistic the country is moving in the right direction when it comes to the food cold chain. Specialising in the fit out of food and cold storage facilities, Brady’s knowledge of design and construction methods, insulated panels, door systems, space

efficiency, and accuracy for temperature, results in smart, durable builds. “Cold storage facilities are extremely important and the way they are designed and built can have huge ramifications for the client in terms of efficiency – how they use and operate it, and the amount of energy savings,” said Brady. And it is the little things that make the difference between an efficient cold storage facility and one that can cost a lot of money to run. Energy is the big drain on Brady said that Australia was 20 years behind Europe in terms of ripening technology.

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"One such idea is to have an ante room,” he said. “It is a temperature-controlled room leading into the freezer. It acts as a buffer between the outside warm air entering directly into the freezer.” finances when it comes to industrial coolrooms and freezers, and a lot of money can be saved if the design is up to specifications. “One such idea is to have an ante room,” he said. “It is a temperaturecontrolled room leading into the freezer. It acts as a buffer between the outside warm air entering directly into the freezer. It takes a lot of pressure off the freezer room because you’re not going from an ambient temperature directly to what would be a minimum holding freezer operation of -18°C. What this means is that you’re not getting as much ingress of heat, which can affect maintaining internal temperature, which makes the fans work harder, therefore a loss of energy efficiency. By controlling warm air ingress, there is less chance of the fans icing up and ice formation on the walls and ceilings, as well as around the door surround, all this leading to what can be unnecessary additional maintenance costs.” Smart design is key when looking at building any kind of cold store, said Brady. He advises his clients to always consider maintaining the cold chain, always taking into account how perishable items come into the facility; how and where they are stored; and how they leave, ensuring strict control of required temperature along each step of the way. Brady has designed his cool rooms and freezers with space savings and efficiency in mind. This plays into consideration of the door – its location and how it opens.

“What some people forget is that door openings play a critical role, especially in freezer rooms,” said Brady. “There is a massive amount of energy lost with door openings and it’s critical to get the right opening. It is wise to invest in door systems that reduce the doors remaining open unnecessarily. There has been great improvements in this area over the past few years. We supply and manufacture a range of different doors for the cold storage industry. For example, automated insulated sliding doors, fast action rapid-roll doors, vertical lift insulated doors

FOOD COLD CHAIN

The ripening rooms in Brisbane.

The tarpless system is more efficient and give accurate information on temperature. and pedestrian access hinged doors. “We are trying to educate the marketplace to start to veer away from human error and getting these door systems to work for the business,” said Brady.

Brady knows how expensive it is to consistently run cold storage rooms. That’s why, he said, it’s so important to build them correctly from the start. “Another area that we strictly

Smart design is key to any cold storage.

control is how our facilities are built on-site,” he said. “We have measures in place to ensure we follow a process. “Our own guys are trained on how to build coolrooms and freezer rooms – any kind of cold storage facilities. We have a protocol that they have to follow, and its consistently checked on site every day.” PBBG has some more cold storage projects in the pipeline, but has also dipped its toe into another food-related enterprise – ripening facilities. Paul Brady and his business partner, Steve Oakley, own Ecotop Ripening Australia (ERA), which as the name suggests, specialises in building fruit ripening facilities. They have set up using the latest tarpless room technology out of Europe and have improved the design to meet Australian building code requirements. According to Brady, Australia was 20 years behind Europe in the way it ripened its fruit, and already the systems EcoTop are developing are taking off on the east coast. In 2018, the Ecotop team constructed an Australian 20 Pallet R&D variant of the Euro system in Melbourne to both prove the technology was suitable for unique Australian demands and to allow continuing research of new fields. They asked themselves what else the compact, high airflows and ultrastable temperature systems might also be useful for. In 2019, they worked with the Montague Fresh team to perform trials of fruit conditioning at various

high and low temperatures. The exceptional results in both fast heating and cooling times and even temperature profiles throughout the test fruit boxes, have opened up further opportunities for the import and export conditioning of various products. “Not long after initial trials we built four ripening rooms up in Brisbane, about 18 months ago. It was the first four rooms of its kind in Australia and we’ve already been contracted to do another two variants of that ripening room – fast cooling chambers in Melbourne,” said Brady. “And on the back of the Brisbane project we have orders to build another seven. This new tarpless system is more efficient and accurate in temperature, humidity and ethylene dosage. It’s built as a true gas-tight room.” Among the current R&D programs for the Ecotop R&D Room, are controlled atmosphere techniques for ripening, chemicalfree pest control for young fruit plants and the adaptation of fully automated loading and unloading pallet systems. Brady’s expertise is not only what defines him from others – his desire to provide the best potential growth for his clients is what puts him on the next level. “We want to assist those businesses that are growing and direct them along the right path in terms of the right facility by designing it to its maximum capacity in terms of their potential and in what they will achieve in future growth. It’s also about delivering them a project that works for them and serves them well,” said Brady.” F

www.foodmag.com.au | April 2021 | Food&Beverage Industry News 31

FOOD COLD CHAIN

Modular coolrooms – the next generation of refrigerated storage With traditional refrigerated storage options lacking in size and functionality; Prestige Modular Coolrooms has created a product solution that meets both size and scalability requirements across the industry.

As a business grows, it can add on modular coolrooms.

majority of businesses across the food and beverage industry require some form of cooling and freezing facilities. However, to date, there are limited options available. “Food and beverage businesses that require cooling and freezing facilities have really only two options – they’ll either build their own built-in coolroom should they own their premises, or rent a refurbished second-hand refrigerated shipping container,” said Marty Lauder, sales manager of Prestige Modular Coolrooms (PMC). “Most people that own their own warehouses also have the capital to build their own coolroom. However, most businesses are not

The coolrooms are cheap to run compared to most alternatives.

like that; they will hire in, or lease, a repurposed shipping container. And that’s where we come in.” Prestige Modular Coolrooms is Australia’s first and only company to

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supply fully modular coolrooms and freezers for commercial operations. The technology the coolrooms utilise is patent pending in Australia, New Zealand and the US.

While traditional refrigerated shipping container storage is often sold or rented as single units without integration abilities, one of the key benefits PMC’s units is the ability to grow and adjust with the business’s needs. Jonah Hoac, general manager of Tak Hing (a manufacturer of steam buns), is one such company that found his businesses growth could no longer be facilitated using traditional refrigeration capabilities. “As our company grew, frozen storage became scarce in our small warehouse,” said Hoac. “Prestige Modular Coolrooms was able to provide us with an affordable and efficient option. From site visit, to tailored solutions, to the physical

FOOD COLD CHAIN

delivery and setup of our unit, Marty walked us through the entire process each step of the way.” What Hoac was experiencing was the power to customise cold chain storage within his business, through the flexibility of the modular design. “If you have a large requirement for cooling and freezing, we can meet your requirements. “Our modular units can be linked together to create your own coolroom solution without having to build a built-in unit,” said Lauder. “In this way, our units are suitable for both small and large operations alike.” Lauder has also considered his consumers and their buying abilities, too. “Typically, people that rent these are leasing a factory; and if you’re leasing a factory, you probably are not inclined to spend capital on a purpose-built coolroom,” said Lauder. “ You can build your own coolroom by leasing our units, depending on how much capacity you require. If your business grows, you can keep adding units to it.” But scalable abilities aside, Prestige Modular Coolrooms units have other benefits that come with the use of modern materials and designs. “They are cheaper to run, quieter, and have a larger storage capacity,” said Lauder. “Our coolrooms are wider – our units are two pallets wide, which means you can fit eight pallets in them plus an additional centre walkway for easy access to the products. “Most shipping containers can only fit four pallets in, so it’s the

It is possible to customise cold chain storage with Prestige Modular Coolrooms.

"The modules work on a single-phase, 15A outlet, while freezer units work on threephase 20A outlets." dimensions that really differentiate our product.” According to Lauder, these units provide 35 per cent more space than standard refrigerated shipping containers. “The modules work on a singlephase, 15A outlet, while our freezer units operate on three phase 20A outlets,” said Lauder. “It’s more energy efficient than regular coolrooms.” No aspect of the design has been overlooked, including the flooring. Created with a checker-plate flooring

design, the flooring aims to aid pallet and trolley movement as well as increase floor durability and decreasing cleaning time. “The additional space allows us a lot more storage” said Julian Robertshaw, executive chef of Melbourne Racing Club. “The internal finish is clean and hygienic, and the advantages are that

they are highly presentable and light in weight.” The Melbourne Racing Club is an example of a client that reflects the ever-increasing demand for shortterm use of cold storage. With events and venue capacities increasing as the country emerges post COVID, Prestige Modular Coolroom units will not just be utilised as stationary, long-term factory storage units but also for temporary use during events. According to David Provest, general manager of Prestige Modular Coolrooms, its modular coolrooms have been rented by big name venues like the Melbourne Exhibition Centre and the Caulfield Racecourse. “We also lease a dozen containers every January to the Australian Open Tennis, which goes for about a month to five weeks before and after the event,” said Provest. “These venues obviously have a fairly large requirement across that event to keep all products such as ice cream, drinks and alcohol, cold.” As demand for cold chain storage continues to increase, Lauder and Provest have big plans for Prestige Modular Coolrooms. “We are planning to be the preferred option in the temporary refrigerated space through our modular solution,” Lauder said. “Hundreds of businesses are starting off or growing rapidly that require temporary and longterm refrigeration. Most of these businesses are here for the long run – and so are we.” F

There is 35 per cent more space in a Prestige unit than a standard refrigerator.

Modular units can be linked together. www.foodmag.com.au | April 2021 | Food&Beverage Industry News 33

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FOOD COLD CHAIN

Freedom through an eskie CoolPac’s Olivo insulated containers are transforming cold chain transportation in Australia.

hen Olivo Cold Logistics, a French manufacturer of insulated containers for the food and beverage industry, was looking for an Australian distributor, it found CoolPac. On the outset, it was a bit of an odd match. CoolPac is a leading provider of medical cold chain solutions, with a specialising in vaccine cold chain. The Australianowned company was founded in 2001 by Lyn Radnell and Andrew Gibson, who both have more than 30 years’ experience in the pharmaceutical industry. When they founded the company, they were not involved in the food and beverage industry.

entire process but offered flexibility. These “industrial eskies” are not to be confused with you back car seat eskies, however. As Gibson explained, these storage units can run on the large size, anywhere up to the size of single pallet. This means that warehouse workers won’t have to worry about hauling 200 small eskies in and out for every trip: these industrial warehouses can take the volume. “These eskies enable transport and 3PL companies to basically make obsolete the idea of having one frozen truck, one refrigerated truck and one ambient truck to deliver food to supermarkets or service

The use of industrial eskies in Europe is common. But the team at Olivo recognised that CoolPac would appreciate their solution. As Gibson, the owner and quality director of CoolPac, tells Food & Beverage Industry News, they more closely mirror the work CoolPac does with the pharmaceutical industry. They use what he describes in Australian terms as “industrial eksies” to ensure supplies are kept at precise temperatures right up until they can be transferred into a fridge. These insulated containers are a far cry from the Australian norm of refrigerated trucks. The benefits, Gibson explained, of moving away from these trucks, was that they not only keep food at a precise temperature throughout the

stations,” explained Gibson. “Instead of making three deliveries with three different trucks, you can deliver every type of food and beverage in just one truck.” Eliminating the need for refrigerated trucks comes in handy in areas with noise curfews. For instance, in Sydney, refrigerated trucks can’t drive at night because of the noise. With the use of the Olivo containers, a normal truck can make refrigerated deliveries at night. While the concept of moving away from refrigerated trucks might challenge Australian norms, the use of these eskies is common in Europe. “In the winding streets of Paris, there would be no way you could make deliveries with large

refrigerated trucks,” said Gibson. “Trucks need to park wherever they can. Drivers roll the eskies down the tail ramp of their truck, and you see drivers wheel them around the alleyways to make deliveries to all the smaller stores.” The benefits of multiple food products in one delivery doesn’t just make life easier for the transportation company. For the service station or grocery store, they can receive daily deliveries of anything they need. “If it’s a hot day, and they have a major run on ice cream, they don’t have to wait a week to be topped up by us,” said Gibson. This advantage was huge for a beverage company that took up the Olivo system in Australia through CoolPac. The company originally had two departments that managed deliveries, one for orange juice that had to be maintained at a very precise temperature, and another for ambient beverages, for instance soft drinks. With the Olivo systems, the company was able to move all their products using just its ambient trucks. “They were actually able to restructure the company and only have the one delivery department,” said Gibson. More than just helping the company internally, these eskies have allowed the company to expand its footprint. Previously, it wouldn’t make deliveries of refrigerated products to rural areas if the order size didn’t justify sending a refrigerated truck. With the Olivo units, it can offer the refrigerated orange juice to all rural areas, delivering it along with its ambient products. For French-inspired patisserie chain Laurent, the European concept was an easier sell. Gibson explained Laurent was among the earliest adopters of the Olivo system, and it’s common to see its eskies being rolled through the Chadstone shopping centre, and elsewhere, towards Laurent shops. Its refrigerated products can maintain

You can deliver multiple products in one delivery using the system. their temperature, right up to when they are unloaded at the shop. Gibson noted, however, that Laurent continues to divide up its deliveries with frozen some days, and cold on others. “What they are doing is not taking advantage of having three deliveries at once, but using the different temperature controls on different days,” he said. “This way the truck just needs one unit.” The next step for the Olivo units is more than just transportation, but as permanent units in warehouses. Gibson said the major beverage company has trialled in warehouses, and it’s making a major difference in streamlining its operations. “They are using it now as part of the pick and pack systems,” he said. “It offers so much more flexibility, they are actually reengineering all of their business processes around it– imagine all that change, just from an eskie.” F

www.foodmag.com.au | April 2021 | Food&Beverage Industry News 35

FOOD COLD CHAIN

Beefing up automation in the Australian meat industry to remain globally competitive Modernising a meat processing plant does take time. But the rewards can be huge. Food & Beverage Industry News talks to Beca experts Rhys Davies and Ross Darbyshire.

ustralian high-quality meats – especially beef – are in demand in many parts of the world, which means many abattoirs are working hard to keep up with demand. In the past, the meat industry has been reliant on manual labour to get throughput happening, but over the past decade or so, a few of the big players – and some smaller ones – have seen the benefits of automation, especially the back end where products are packaged, chilled or frozen, sorted, palletised, picked and dispatched to customers. Like any industry, those in this primary agricultural endeavour look for ways to get better efficiencies, not only in labour, but also energy, cold storage and scoping out new plant and machinery. It is also an industry that has a huge legacy in the Australian food processing landscape in terms of exports and domestic consumption, and in a lot of cases, that legacy is also tied to the aging plant and machinery.

Energy efficiency When it comes to the energy equation, Ross Darbyshire,

Queensland regional manager for engineering consultancy firm Beca, said the meat industry is ramping up its commitment to sustainable energy sourcing. The red meat industry is driving the initiative to be carbon neutral by 2030, said Darbyshire. “The industry is looking at smarter ways to produce power. This includes solar farms and producing biogas off their waste and other materials for reuse to generate power,” he said. “Boilers are being changed to biogas, coming from onsite treatment ponds. Capture and reuse of this biogas is offsetting use coal-fired boilers.” Implementing smarter ways of doing things requires a solid track record in understanding how the industry has worked at works now. Beca specialises in helping companies develop practical solutions that are cost-effective and help with the bottom line. Rhys Davies, Beca Australia’s business director, industrial, acknowledges the meat industry’s plant and infrastructure in Australia is often approaching end of life and some operations

36 Food&Beverage Industry News | April 2021 | www.foodmag.com.au

have become old-fashioned as they are limited by older assets. Notwithstanding this, the industry does have developing change momentum. “An area of emerging change is in energy. Quick paybacks from lowering energy consumption are being made by using Artificial Intelligence (AI) particularly in the refrigeration space. Longer term paybacks are being achieved via investment in renewables and biogas.” Typically, meat industry plants are of medium scale and can be challenging in terms of energy offset capital investments. There are more opportunities to make savings through operational improvements. These are increasingly being led by the application of digital and AI technology. Digital products like Maestro are helping Beca’s clients find efficiencies quickly with little disruption to plant and operations. “The trick for effective implementation is a solid understanding of the traditions of the industry, where it has come from, and

FOOD COLD CHAIN matching this up with the myriad of technologies out there that can help the industry operate smarter, faster and leaner.”

"In the old days meat was once put into a 24-kilo carton, and handled three or four times before it got to the end user. Now it won’t be touched once because it is fully automated."

Cold storage Being such a huge continent, and with beef, sheep and pig farms spread far and wide, it is important to get cold storage right. Companies, especially the bigger ones, are also changing the way they operate in terms of getting food to market. “Traditionally, major supermarkets have established joint venture operations with meat producers, integrating meat products in the form of primals and carcass, into their cold chain network. This produces a variety of cold storage requirements, from carcass, large cuts in carton, and varieties of trim and other raw products. These products were then processed in supermarket, and independent butcheries. “The industry has progressed significantly over the past 20 years to now focus much more on cartonised product in various forms, including store ready products that require no further processing before selection by the consumer and presentation at the checkout. “This change, together with aggregation of manufacturing plants,

Master planning Master planning is essential to making sure the right outcome is achieved. has allowed enormous improvement in the efficiency of cold storage, handling and automation.”

Automation One of the key factors in making all these processes streamlined for the meat industry is automation. As Davies points out, the front end of a meat works will always be labour intensive. It is the back end that is getting all the attention in terms of automating processes, and it can be a The price for beef per kilo is currently at an all-time high.

significant investment. “In the old days meat was once put into a 24-kilo carton, and handled three or four times before it got to the end user. Now it won’t be touched once because it is fully automated,” said Darbyshire. “The labour at the back end has been replaced by robots and is fully automated racking.” Beca’s expertise can come into play here as it has the depth of knowledge and experience to show companies how automation can increase efficiencies. Both Davies and Darbyshire make no bones about the capital investment being costly, however the long-term gains – not only with regards energy efficiencies and labour costs, but in volume throughput – make the investment well worthwhile. “The larger operations are investing in automating the meat carton in terms of handling, assembling and cold storing ready for despatch overseas,” said Davies. “You need the volume to support that investment, but once you are there, you are efficient, and have enhanced your national and global competitiveness. You know where stock is, coding out is minimised, and you are maximising shelf life. The reality is having made the investment in automation it harder for others to catch up.” Darbyshire said companies in the meat industry get what is needed to be more competitive, with Beca having tripled its workload in the arena in the past two years. The price per kilo for beef is currently at an all- time high. Businesses are seeing this as an opportunity to invest,” he said.

Davies says master planning is core to Beca’s services, particularly so given the need for a team of people with diverse skill sets to achieve positive outcomes. “Master planning is a great thing because if you get such a plan together, anything is possible,” he said. “But it’s not the job of just one person – it’s a case of many minds make for excellence. You need industry specialists – you need architects, structural people, utilities people, and you need people that understand building approvals plus much more.” Another bonus when utilising virtual digital tools for master planning is that people from different parts of the country can leave comments on the plans – what they like, don’t like, adjustments that might need to be made, or other amendments. “We can bring people together into a 3D virtual environment. It is quite powerful,” said Davies. “You can work with that model via personal monitors and all work together in real time with a rendition of what you are doing, especially helpful during border closures. I find these master plans very exciting, allowing us to do some great things." Darbyshire concurs. “Many of the meat industry sites are 50 and 60 years old so they have probably had many expansions over that time,” he said. “They have a building that has been expanded so many times that it is a very strange set up. We come and look at it with a fresh set of eyes. “You want a client to have an open mind and be open to challenge things. It’s about businesses being open to new ways of doing things who enjoy the biggest rewards.” F

www.foodmag.com.au | April 2021 | Food&Beverage Industry News 37

FOOD COLD CHAIN

HRS modernising juice remelting Chris Little, director at HRS Heat Exchangers talks to Food and Beverage Industry News on how HRS’s heat exchange technology is being applied to, and improving, the remelting of frozen juices.

ood waste is an issue that has yet to be solved, but there are companies that are working towards reducing the inefficiencies that cause up to seven million tonnes of food to be thrown out every year – that equates to approximately $20 billion. HRS Heat Exchangers is a company that specialises in heat transfer products and has now extended the application of their technology into the industry of melting juice. The newly developed I Series works to improve the cold chain for frozen juice through a two-step process. Unlike fruit concentrate, which has the ability to be delivered in bulk containers, fruit juice not derived from concentrate is usually delivered in a frozen form. “The best way to store this type of product in order to maintain the quality, is to freeze it. Freezing is one of the best preservatives rather than adding anything else; it keeps it fresh,” said company director Chris Little. While freezing the juice maintains the quality and freshness of the product, it can be difficult to heat back into a liquid form without spoiling, creating food waste and increasing overhead costs. “From our perspective, it is about giving our clients the ability to do that, reliably, while maintaining the best quality of product, when it’s reprocessed from frozen to fresh

again,” said Little. “To deliver the fruit juice as a liquid requires the process to keep it as close to 0˚C as possible and as quickly as possible,” said Little. “Our technology, and the efficiency that it brings to the process, allows the smallest hold up volume, minimum losses and most gentle treatment of the product to maintain that high degree of quality.” The frozen product is often delivered in 200L drums, which then needs to be broken down to a form suitable for repackaging and selling. This is where the HRS I Series comes in. Made up of the IC and IM Series, the first part of the process sees the frozen juice being crushed into a manageable, ice slush condition. The latter part, the IM Series, focuses on remelting the frozen slush so it can be packaged and processed further. While the crushing technology used in the IC Series has existed for a while, it is the combination of HRS’s advanced heating technology in the IM Series that is changing the efficiency and effectiveness in which frozen juice can be returned to its liquid format. “Our main contribution to this overall process is the thermal treatment,” said Little. “What we saw is an opportunity to improve that existing technology. We worked on its design and its configuration and feasibility to increase its reliability. We then

HRS Heat Exchangers’ director Chris Little. integrated all of that into a thermal process, a process in which we are specialists.” At the IM stage, heating is applied through HRS’s own developed tubular heat exchanger technology including both the DTA double tube and HRS MI Multitube heat exchangers. This combination of technology allows both larger and smaller chunks of the frozen slush to be melted at an even, optimal rate. “Our heat exchangers are designed to optimise the remelting process with the minimum hold up volume, which then correlates back to the rate of the

HRS Heat Exchangers’ I Series helps improve the quality of frozen fruit juice. 38 Food&Beverage Industry News | April 2021 | www.foodmag.com.au

speed in which its processed. Therefore it’s exposed to heat for a very short amount of time,” said Little. The temperature of the juice can be raised to around 4˚C in 90 seconds. “We also work with warm water as the energy source for the remelting process, in order to better control things and maintain the highest quality product,” added Little. Due to the quick nature of the process, the I series is more energy efficient and requires less pumping power. The tubing is also designed in a corrugated fashion so that there is less ‘sticking’ to the wall resulting in less corrosion and less downtime required for maintenance. From there, once the remelting process is complete, HRS also supplies unique tanks of all sizes where the juice is pumped with consideration for food hygiene and safety as well as stopping all cross contamination. HRS designed the series in response to the demand it saw from its clients. “This technology is going to give our clients a reliable back up or a buffer if there is too much product to process in one season, or if there is a drought and they want to stockpile it for next season,” said Little. “It gives them the flexibility to be able to maintain their production output without compromising their quality in a reliable and efficient manner.” Unless products have been imported from overseas, juices and other drinkable perishables are usually stored as frozen products. In this sense, HRS’s technology has the ability to improve juice transport on a global scale. “We can now provide the combined solution to the client where this crushing and melting requirement exists,” said Little. “A lot of our clients could benefit knowing there is a technology there that is reliable, efficient and cost effective.” Through understanding their clients’ needs, HRS was able to create a new integrated technology that is reliable and can rise to meet future demands that aren’t reliant on seasonal factors, reducing waste on a large scale. F

LUBRICATION

Improving chain lubrication in the food and beverage industry Supplied by JSG Industrial Systems the SKF Lincoln ORSCO Series 170 is a lubrication system that is increasing machine maintenance efficiency.

he beef industry is a pillar within Australia’s economy and the equipment used to produce the meat is no less important than the final product. Roller chains are a key component of this industry, functioning in many abattoirs across Australia and New Zealand. To be able to function to the best of their ability, these chains need to be consistently maintained; the pins, bushings, sliding surfaces and any rolling element that are exposed to consistent wear, need to be regularly lubricated to continue functioning with high volumes, at an efficient rate. This is where the SKF Lincoln ORSCO series 170 lubrication systems come in – with particular success being found in roller chains used in abattoirs across Australasia, the demand for this product is forecasted to increase. The system was created by SKF Lincoln, whose distribution rights are held by JSG Industrial Systems in Australia, Indonesia, New Zealand and South East Asia. SKF assists equipment manufacturers and production facilities worldwide with an aim to improve equipment, such as roller chains, reliability and total cost of ownership and energy.

allows the lubricant to move between these two points while also coating the roller and bushing surface as well. This amount of lubricant is released on a continuous and controlled basis that helps coat every chain link. Once the stream of lubrication is co-ordinated with the specific chain requirements, the application will be equal with the rate of consumption. Factors such as the chain length, speed and consistent temperature will affect how the system will be set up. According to SKF Lincoln Industrial, application of lubrication through the ORSCO system reduces the consumption rate of lubrication by 60 to 80 per cent. The lubricant not only greases and moisturises the primary wear points, but also provides a cleaning effect through the spray nozzle. This nozzle is also patented by SKF and works to remove contaminants and debris left over from production. Looking at the nozzle specifications, SKF provides three tip lengths and spray patterns that can change the lubrication stream from continuous to pulses. The benefit of this is the ability to custom design the nozzles bespoke to the application or machinery.

How it works

Benefits

What differentiates the SKF Lincoln ORSCO series 170 system from others is the use of air to propel the lubricant at a low pressure yet high-velocity rate. This increases the system’s accuracy – despite the small amount released, it penetrates to a high degree. Through using this compressed air to deliver the lubricant, the roller chains are greased faster than previous methods, such as the drip and brush techniques. The system works through producing a continuous thin stream of lubricant onto the chain, specifically the pin and bushing, which is the primary wear point of a chain. It is able to do so with pinpoint accuracy due to the use of air. This

Utilising ORSCO is important in increasing the overall life of the chain. Through consistent lubrication, overall downtime including the frequency of general maintenance is reduced. This means, in abattoirs, more meat can be produced and exported. The 170 series also reduces machinery oil consumption producing cleaner conditions. SKF Lincoln previously installed an ORSCO Model 170 series for a large soft drink bottler. This company found that there was a decrease in oil usage and spillage on the factory floor and within six months the company reported that it was able to pay back its initial investments.

Air is used to propel the lubricant.

Design The ORSCO series 170 comes as an easy-to-install system that is made up of combining controls, valves stack and a reservoir. The series is also available as a modular packaging including a Valve Stack series (VS) or a Valve Stack-Reservoir (VSR) series. At maximum capacity, the Series 170 system can lubricate up to 16 points with an ability to vary the lubrications patterns. It features a compact, modular design with low amounts of external piping designed for OEM use; in addition to these aspects, specific parts can be removed and serviced

if needed. The fixed-volume system increases control of the amount of lubricant released, decreasing oil waste and overhead costs. The injector rate functions at 1Hz meaning that it can also be applied to systems that require large amounts of consistent lubricant. On larger doses, the system can deliver up to four drops per second. In addition to the ORSCO series 170 system recent success in abattoirs, it is also used effectively across a range of industries including beverages, food processing and baking, as well as materials handling. F The ORSCO system is easy to install.

The system reduces the rate of lubrication consumption. www.foodmag.com.au | April 2021 | Food&Beverage Industry News 39

AUTOMATION

How an 18-year-old system was overhauled and digitalised COVID-19 halted Bowles digitalisation process but that paved the way for the company to start its digitisation journey with automation specialist Bürkert. Ease of use is a key ingredient when starting the digitisation journey.

40 Food&Beverage Industry News | April 2021 | www.foodmag.com.au

owles, an Australian producer of gourmet stock products, was running its food production operations on 18-year-old machinery. Besides the issue of the system being close to breaking after its long run, other problems were beginning to present themselves. The noise and cost factors were beginning to outweigh the well-established system; Bowles’ production facilities were situated in a residential area, and the noise of running the compressor every five minutes to open the valves was getting too much, said Binh Pham, director of Bowles. “We obviously did things to try and bring that down,” said Pham. “We brought a big air holding tank, but at the end of the day it was just ongoing noise from the compressor. “It wasn’t so much for us because all that equipment, like the air compressor, was outside. It just meant the neighbours had to put up with it – especially in the middle of the night. We knew how loud an air compressor could be.” The precision of the machine was also proving to be an issue. The old machine used to run on air, rather than electricity, which slightly changed how much pressure was going through the valve each time. “And then we were watching it and were thinking to ourselves, ‘well, there must be cost involved in starting that compressor,” he said. “We thought, ‘let’s look into it to bring down the cost of running the air’.” It was then that the cogs started turning and Bürkert entered the scene. Bürkert has been in the industry since 1946 specialising in measurement and control of liquid and gas systems. “A Bürkert representative came out to us and we’d talk to him about the different types of systems that we

could get,” said Pham. “In the early stages we weren’t really looking at buying it for the facility that we’ve got. We were more looking for the future when we move facilities. But year-on-year we’re stuck where we are and then we just said, ‘Alright, let’s put together a package and see if it’s feasible’,” he said. From there, Bürkert analysed the equipment including the means and costs for automating, thus easing the road for Bowles to digitalise. “After the package came back, and we realised ‘hey this is very feasible” and the cost involved to buy the equipment and to get it installed, over a five-year period, was going to pay itself off three-fold,” said Pham.

"This new system is easy to replace – if something does breaks down, you don’t need a degree to go and fix it yourself." But there were other setbacks. Pham had just gotten the equipment to digitalise, with hopes to change facilities, when the COVID-19 pandemic hit. “Well, COVID whacked us a big one, you know,” said Pham. “We produce products for restaurants and airlines and catering and half of those don’t even exist at the moment.” Pham sat on the equipment, riding out the transition period, before returning with Bürkert to complete the automation. “When we saw ‘ok we’re still going to survive, we can still tread water’, we said ‘ok let’s install it’,” said Pham.

AUTOMATION

Running costs can be reduced if digitisation is implemented correctly. During the process, Bowles hired its own electrician, and with Bürkert’s expertise and guidance, the machinery was able to be set it up efficiently. “Nelson Chymiak, national engineering manager for Bürkert, came out and met our electrician on site. He ran them through everything and if they had any questions Nelson would come out or be able to fix it on the phone,” said Pham. “It was absolute ease working with Bürkert. Nelson was very knowledgeable in this field and expertise. He was right onto it. If there was problem, and if there was, it was easily fixed. It was just an adjustment within the system itself, like our old system was not like that – they literally had to come out and recalibrate something.” With a new panel system and regulators, the new set up was completely different, Pham said. “The panel system was just amazing,” he said. “We’ve got a touch screen – our old one used to be switches because we’ve had it over 18 years. The old system was just knobs and we had to turn them at certain times – it was a really eccentric system. “Back in the day, when we first got it, it was probably amazing. But it started to fail because of the amount of workload we had to put into it and with the age it was, it was starting to fail in

little aspects of cooking,” Pham said. Another problem Bowles faced with its old system was the cost of replacement and lack of technical expertise.

Automation meant less noise in the factory. “This new system is easy to replace – if something does breaks down, you don’t need a degree to go and fix it yourself,” said Pham. “The cost-saving in that alone is brilliant because you

Bürkert has a range of devices that make running a plant more efficient.

can order the part, they’ll have it to you that day if not the next morning, and then you can just replace it yourself. You don’t need to call anybody in or pay an astronomical amount of money for them to install something that you can do in a few short minutes yourself.” With this system, Bowles has scalable capabilities unlike before. “Let’s say we’ve got five kettles or six kettles, and eventually we’re going to have more. The system is going to be able to add screens onto that one system, and you can just add instead of rebuilding,” he said. With time efficiency and decreased costs, Pham is happy with the outcome despite the initial investment costs. “And when you look at the cost, not over a year period or a straight up cost, if you can look beyond that and say, ‘what am I going to be saving over the next five years?’ people will work out that they are going to save a lot by doing this,” he said. With this new system, Pham sees a bright feature with Bowles despite its main industries being halted by COVID-19. “I see the future going with ease. We know what we can build on now, and we don’t need to ever re-invest more money into setting up different systems for different applications,” he said. “We can just use the open and control it from there.” F

www.foodmag.com.au | April 2021 | Food&Beverage Industry News 41

INDUSTRIAL INTERNET OF THINGS

IIOT-Toolkit working to digitally empower smaller businesses ifm’s Freddie Coertze tells Food & Beverage Industry News the importance of empowering businesses trying to digitalise systems, and how the IIoT-Toolkit can help.

ifm’s IIoT-Toolkit helps identify production issues.

tepping into the world of Industry 4.0 can be harrowing for businesses that don’t know where, or how, to start with digitalisation. With the Industrial Internet of Things (IIoT) developing in volume and complexity since the 1990s, it becomes increasingly difficult for companies, especially those with limited funding to know the right way to digitalise. “It’s difficult to start. There’s so many vendors that sometimes you don’t really know what you want until you’ve got some data,” said Freddie Coertze, Australia’s ifm product manager of industrial communications

national IoT business manager. Coertze also specialises in leading and growing IO-Link technology with ifm itself being one of the world’s largest sensor and automation companies. “We take an approach where we tell clients they should start small with just a starter kit, pick one area, and from there, make decisions based on the outcomes,” said Coertze. That’s why the introduction of ifm efector’s IIoT-Toolkit is so important – simplifying digitalisation and empowering customers to be able to take control of their data and invest in predictive maintenance. In a sense, it’s allowing businesses to dip their toe in before fully immersing in process of automation.

How it works

The ifm IIoT-Toolkit software includes Sensor2Cloud. 42 Food&Beverage Industry News | April 2021 | www.foodmag.com.au

The toolkit empowers customers through combining data from the information technology level with the operational technology level. “The advantages are actually owning that information and the solution,” said Coertze. “The biggest problem in the industry is because you have these two worlds – IT has been by themselves for so long and you’ve got operation technology running side-by -side with the production line, but you need information from both ends. We see this as the bridge between those two worlds to then get the data from either side and then make better decisions.” The toolkit utilises four main technologies to help identify production issues: IO-Link, Image processing, RFID and identification and vibration monitoring. The IO-Link provides consistent diagnostic information on the machine and its processes, while ifm’s software in the IIoT toolkit is able to sort and convert all this sensory data from the machines into qualified digital information. Simple plug-ins

INDUSTRIAL INTERNET OF THINGS

that come as part of the toolkit allow clients to access the data and make decisions based on the information they receive. The IIoT-Toolkit’s software, such as Sensor2Cloud, is able to automatically collect and directly send information to the cloud. Thus, the toolkit enables a flow of information that is constantly being sorted and logged. “We are really driving qualified data rather than just gathering information,” said Coertze. “That’s why all of our units, like the IO-Link and our vibration units, actually pre-process that raw data before it is converted into the qualified information that you can send to your data collector. We just want to make sure it’s the right information in there that makes sense.” With all this digital information being received from the machinery, the toolkit is able to create virtual factories in the cloud. The consistent stream of qualified information helps clients understand the best functioning of their production line that introduces intuitive data for on time decision making for production and machine maintenance.

Engineering teams need access to the IT side of a company.

get the solution delivered, (they) plug it in and log in online and start logging information.” By owning the data and the understanding the particular problem, clients are able to tailor solutions specific to the business. It’s also very handy, said Coertze, when there is no technical staff onboard.

Predictive maintenance

Affordability

According to Coertze, a key benefit of digitalising through the IIoTToolkit is the ability to identify conditions to predict machine condition and failures. “We want to move away from having to take the machine apart every six weeks and do something with it, basically only acting when the condition is deteriorating. That’s why we feel like predictive maintenance is part of making more informed decisions. In the long run this prevents breakdowns, increases efficiency and decreases downtime,” he said. “We try help customers move to predictive maintenance.” Being able to detect damage early can also lead to avoiding unwanted spares, said Coertze. “It means you don’t need to keep spares of that machine around. It would be easier to order the spares when the machine is working, or about to fail, so you have time to act. Of course, that will increase efficiency, because you don’t need to stop the machine,” he said.

A key issue with transitioning into Industry 4.0 is the cost of investment. “We saw that the small to medium customers would not normally have IT teams in house. For example, microbreweries – they would not necessarily have the ability to put software on site,” said Coertze. “That’s why the kit was initially developed: because it is really low in entry-level pricing, so they don’t need capital for it they don’t need a lot of funding to start with the solution,” said Coertze. “Other suppliers will go ‘Yes let’s digitalise everything’ but that’s not the message. That will cost millions, and they’ll (the customer) go ‘I don’t even know where we want to start.’ “You’ll see the way we set up our software is that they can really maintain it themselves, and it’s really self-taught. If you play around on the site, you can figure yourself out and you don’t really need a lot of training,” said Coertze. “I get a lot of customers are stuck in that mindset, ‘It’s too difficult for me, I don’t know what to do’. I think this (toolkit) is all about unlocking them to start with something.” F

Empowering customers Using the IIoT-Toolkit also gives the obvious benefit of owning the data.

The toolkit allows customers to take control of their data. “That means that they (the client) don’t need people to program a lot of things in the background,” said Coertze. “The biggest problem we have is most customers start with engineering teams, and these engineering teams don’t really have access to the IT side of the companies.” The problem is slow to get solved as every action the engineering team does requires approval by the IT teams, or requires an IT member to come in. “Now they can just buy this kit and it comes with a PC and they can start and stop working on something,” said Coertze. “Because we need to empower the customer, or engineering team, to build a business case. Then they can say – we’ve chosen this area in the business, we’ve got some data, we’ve got something to show, then we can get funding.”

With the help of ifm, the toolkit enables end-users to run with the process themselves, which makes it easier to begin the digitalisation process.

Customisation Part of customer empowerment is creating solutions specific to the companies individualised needs. This includes making integration easy and being able to scale up the technology. While a solution or process might work for the company next door, it might not necessarily work for everyone. “You’ve got to customise it to that extent, and that’s why we feel customers need to own the solution,” said Coertze. “The customer basically says, ‘Look, what issue have we got?’ If it’s vibration or any type of sensing, for example, then we will configure that unit for them and then they will place the order,” said Coertze. “We

www.foodmag.com.au | April 2021 | Food&Beverage Industry News 43

AFCCC

Where there is no air flow, there is no refrigeration

Without good air flow, the cold chain is redundant.

Good air flow is key to the food cold chain. AFCCC chair Mark Mitchell explains why.

t a recent conference devoted to food packaging, I issued this tongue in cheek challenge at the end of my presentation ‘before we land on Mars in 2030, surely cold chain logistics must be capable of allowing refrigerated air to flow through a secured carton of food in a truck’. I had earlier suggested that there was an opportunity for the packaging industry to become the air flow people. Perhaps you can sense the frustration of trying to convince the food and transport industry of the importance of airflow and the role played by packaging, packing, stacking and wrapping. These four things play a vital role in temperature compliance and they are four very different things. Any of them can block airflow sufficiently to negate convection and introduce conduction, and eliminate the efficiency of good refrigeration. In so many food transport cases, where we have been called in to investigate temperature abuse, we are astounded to see a perfectly efficient refrigeration system working away trying to maintain temperature in a

truck or trailer load of pallets that are jam packed, not only against each other, but against the walls. How do they expect the refrigerated air to circulate? Good air flow in a truck produces heat convection. This is an essential principle in the refrigeration process, which is crucial for maintaining product temperature during transport. Moving air is what we call forced convection, while still air is free convection. So it follows that where there is no airflow, there is little or no refrigeration. The minimum refrigerated air velocity to maintain temperatures in intermodal containers (IMC) and trailer applications throughout the whole refrigerated space has to be a minimum of half a metre of air per second. Down at the rear end of a badly packed IMC or trailer, and even in some storage facilities, forced air convection velocities can drop to one-tenth of a metre per second which is barely enough flow to maintain refrigeration capacity. Responsibility is often unclear when things go wrong, such as temperatures

44 Food&Beverage Industry News | April 2021 | www.foodmag.com.au

not being maintained because boxes loaded high on a pallet move during transport and touch the wall, or worse, the entire pallet is stacked against the wall. Pallets that are stacked too close to each other will deliver the same temperature failures. When the Federal Government released the first comprehensive study on food waste attributed to breaks in the cold food chain last year, it listed pallet configurations, and things like stabiliser sheets that can block air flow and create hot spots, as contributing to the staggering $3 billion cost of food waste in fruit and vegetable production alone. Contributing to the $670 million worth of meat loss was packaging failure in transport and in the retail end of the food chain, such as supermarkets and butchers. Also quoted in the food waste study was the schedule of commonly observed failures leading to food waste, compiled by the AFCCC. It won’t surprise anyone to note that poor packing, stacking and wrapping was on the list, as was poor airflow in the trailer and poor air distribution in

the refrigerated space. A lack of insulation specifications was singled out by the government study as being one of the main reasons for poor equipment performance. Australia has thermal insulation specifications and regulations covering the majority of built structures via the National Construction Code, yet there are no regulated insulation specifications for walk-in coldrooms, refrigerated vehicles or cold storage facilities. Also impacting on air space in an IMC or trailer loaded with pallets of food, is the difference in truck widths in Australia compared with other parts of the world. The maximum width of trucks in Australia is limited to 2.5 metres, compared to 2.6 metres in Europe and the United States. This impacts the internal space needed to accommodate international standard pallet widths. This means container walls are limited to 38mm of insulation if two pallets are to be stacked side by side and with pallets at 1,170mm square, only 28mm of clearance is left between pallet and wall, hardly enough for proper air flow. F

APRIL 2021

Food cold chain – where it’s been, where it’s going and why it’s so important to the industry

PLUS: Meet the Manufacturer | Automation | Internet of Things

FOOD & BEVERAGE INDUSTRY NEWS

IOT AND AUTOMATION PROMO FEATURE

JUNE

OUR BRAND PROMISES We offer you the best exposure to decision makers We provide the best platform to showcase your product We will be the best external marketing partner you’ll ever have

It’s hard to believe that 20 years ago the IoT first made its mark on the manfacturing, and has now become part of the venacular in the food and beverage industry. Many companies have yet to make the digital/automation transition, and they need advice to do so. If you are a supplier of such equipment to the food and beverage industry, then the June Issue of Food & Beverage Industry News is an excellent platform to get your message across. Every edition Food & Beverage Industry News talks to a major manufacturer about the industry – their supply chain, how they handle disruptions, their manufacturing processes, and the long-term forecast for the industry.

EXPRESSIONS OF INTEREST CLOSE

3 MAY 2021

To secure your place, or for more information contact Luke Ronca on 0402 718 081 For editorial enquiries please contact Mike Wheeler on (02) 9439 7227

Australia gets silver in packaging awards Author

Nerida Kelton MAIP, Executive Director, Australian Institute of Packaging (AIP)

Australia enters the WorldStar Student Awards for the first time and wins Silver in the Sustainable Packaging Design category.

he Australian Institute of Packaging (AIP) entered seven student design projects for the first time in the WorldStar Student Awards which resulted in a silver in the Sustainability category and all seven teams receiving Certificates of Recognition. The WorldStar Student Awards competition is run by the World Packaging Organisation (WPO) and is an international packaging design competition for students – undergraduate or graduate – from countries around the world who are involved in projects in the field of packaging, including structural design and/or graphic design.

Silver Sustainability Award Winner – Camel The winning entry was called Camel and was a design the team developed for an energy ball company that produces by-products in its peanut manufacturing process. The winning team was Katerina Palma, Sherlyn Marvella and Tamanna Kibrea from the New Frontiers Program at Monash Food Innovation. The New Frontiers Program sees SMEs partnered with a dedicated student team for 10-12 weeks working on a business challenge in food, beverages, market analysis, new product development and packaging. Over the duration of the program participants learn MFI innovation methodologies to explore value propositions, markets, knowledge mapping, product mapping and ideation to provide leading innovative solutions for their partnered SME. The Singapore program used the New Frontiers structure to engage with eight Singaporean SMEs who were interested in exploring and developing a line extension or new

product for the Australian market. Each SME had a dedicated multidisciplinary Monash student team working over 10 weeks on their business challenge. SME executives and Monash students partnered to be trained in a proven innovation framework that included gathering market insights, knowledge mapping, product mapping, ideation of product and packaging, as well as validation with prototyping. The outputs were a high fidelity product and packaging concept ready to be scaled up or implemented by SME partners. The team thought the outer layer of the food packaging could utilise 30 per cent of the peanut husks in the production of fibreboard. They saw this as a means of valorising food waste and aligning the packaging with the food, which was organic and vegan. The company that the team worked with produces a substantial amount of by-products in their peanut manufacturing process with the production of peanut shells/ hulls estimated to be 230-300g per kilogram of peanut. This by-product traditionally headed straight to landfill or burnt adding to atmospheric CO2. The student team began to think about ways to valorise this by-product and turn it into something useful. During their research the team realised that peanut shells and hulls create waste disposal problems and pollute the environment; although they are an inexpensive and renewable resource. They wanted to utilise the peanut by-product and regenerate it into a valuable resource, and reduce the harmful effects that were occurring on the environment. They looked at modifying the outer layer of the food source – a peanut – and reforming it into an outer layer again but this time

46 Food&Beverage Industry News | April 2021 | www.foodmag.com.au

The Camel design got silver at the WorldStar Student Awards. in the form of food packaging. The team identified research by Akgül & Tozluoğlu (2008) that suggested using 30 per cent peanut husks in the production of fibreboard met the minimum requirements for Models of Rupture and Models of Elasticity. Fibreboard is a material used to make furniture, this means that if using 30 per cent peanut husks can be used to make structural furniture, it potentially has the capability to be sound enough, strength-wise, for food packaging; with the valuable addition of being lightweight. The new design appearance is raw and organic with minimal pastel colouration. The colour of the packaging conveys the image of a natural and health product, which is what the product aims to be. The packaging aligns with the product inside which is organic, vegan, and has no added sugar or preservatives. The box is different to how energy balls are usually packaged. The shape enables consumers to

easily re-package the product if they wish to eat it over a period of time. As regulation requires, the product needs to be sufficiently sealed before purchased in stores. The edible substance is concealed by an inside layer of home-compostable plastic (AS5810, ABAP 20007), will act as protection from contamination while also providing evidence for tampering. This makes the entire packaging 100 per cent compostable. The AIP would also like to congratulate the teams that received Certificates of Recognition including: Apollo Marine: (Shaun Allen, Daniel Straw, Chrishane Amarasekara), Kampot Pepper Gift Pack: (Alexandra Straw, Lanson Cheong, Ariel Golvan), Lim Kee: (Rachel Brindley, Riley Hodgson, Patrick O’Connor), Nuvojoy: (Meera Menon, Michelle Porciuncula, Olivia Sims), Pere Ocean Pearls: (Arhan Anis, Omar Enayatzada, Soumya Buyya) and Tai Hua Soy Sauce: Sophie Francis, Joseph Tran, Neha Satish Kumar. F

MARKETPLACE

Deal activity maintains momentum F ollowing a stronger than expected finish to 2020, corporate activity remained buoyant in the first quarter of 2021. This is positive news for business owners and investors following the downturn experienced in 2020 after the outbreak of the coronavirus pandemic. Six transactions were reported over the 10-week period to 26 February 2021. The assets of Corio Bay Dairy Group were sold to Korean dairy company Maeil Dairies for $13.5 million. Coria Bay Dairy Group was a joint venture company between Wattle Health Australia and Organic Dairy Farmers of Australia. The joint venture was adversely impacted after Organic Dairy Farmers of Australia was placed into receivership in May 2020. Sydney-based cultured meat startup, Vow Foods, raised $7.75 million in seed capital to expand it’s portfolio of cultured meats. Vow Foods began producing lab-grown meat from pork and kangaroo cells in 2019. It has since expanded to producing meat from 11 different animals.

Brewery investor, Fermentum, acquired Melbourne based craft brewer Two Birds Brewing. Following the acquisition Two Birds product will be brewed at a Fermentum-owned brewery located in Spotswood, Melbourne. Fermentum’s other brewery assets include Stone & Wood, Fixation Brewing Co, Forest for the Trees, Granite Belt Cider, Sunrise Drinks and Square Keg. ASX listed Health Plant Protein Group (formerly Buderim Group) acquired a 24 per cent interest in EVR Foods Inc. for an investment of $6.5m. US-based EVR Foods Inc. is the owner of the LAVVA brand, a plant-based clean yoghurt and milk brand. Arnott’s Group acquired a 75 per cent shareholding in Diver Foods, a cereal and snacking manufacturer based in Scoresby, VIC. Chris Diver, the managing director of Diver Foods will continue to own 25 per cent of the Diver Foods business following the transaction. Diver Foods will become part of the new cereals and snack division at Arnott’s which will include the Freedom Foods cereal

and snacking assets acquired by Arnott’s Group in December 2020. Comet Line Consulting advised the shareholder of Diver Foods on the disposal to Arnott’s Group. Pure Foods Tasmania acquired Lauds Plant Based Foods for $350,000. The outlook for transactions in

the food and beverage industry is positive, especially in view of the downturn experienced in 2020. The food and beverage industry remains an attractive investment destination with increased interest in the industry from both trade buyers and financial investors. F

Transactions announced Date

Target Name

Acquirer

Sector

18 Dec 2020

Corio Bay Dairy Group

Maeil Dairies

Dairy

6 Jan 2021

Vow Foods ($6m capital raise)

Various investors

Cultured meat

11 Jan 2021

Two Birds Brewing

Fermentum

Craft brewery

15 Jan 2021

EVR Foods Inc (25% interest)

Health Plant Protein Group

Plant based foods

10 Feb 2021

Diver Foods

Arnott’s Group

Breakfast and snacking

12 Feb 2021

Lauds Plant Based Foods

Pure Foods Tasmania

Plant based foods

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.

Commodity Outlook WHEAT – World wheat prices to fall reflecting higher global production

SHEEP MEAT – Lamb saleyard prices to fall in the medium term as high global supply of red meat increases.

COARSE GRAINS – World barley prices to fall because of falling world consumption

DAIRY – Milk prices to increase in response to stronger global demand and slower supply growth.

OILSEEDS – Oilseed prices supported by global demand outstripping supply. BEEF AND VEAL – Australian cattle prices to fall during the outlook period

Source: Department of Agriculture and Water Resources (ABARES), Agricultural Commodities, March Quarter 2021

www.foodmag.com.au | April 2021 | Food&Beverage Industry News 47

DAIRY

Global dairy commodity update March 2021 European and Oceania markets remain a positive short-term outlook due to persistent dairy demand in major EU domestic cheese and butterfat markets and strong import demand from China.

he global COVID case load is reducing as movement restrictions take hold, while the rollout of vaccines is reinforcing control of the pandemic in the developed world. Despite risks of variants and vaccine deniers, societal immunity and return to COVID-safe normality will be achieved over the coming months. The tight global market situation is being helped by slowing global milk

supplies, despite a wall of milk in the US. EU-27 milk growth has slowed to near flat and will remain sluggish in coming months while NZ’s fluky late-season with poor rainfall continues. Solid domestic cheese demand in the EU is limiting production of ingredients and minimising cream surpluses. The Oceania market has been buoyed by the continued strength of the rally in GDT prices which had extended to seven increases in the

48 Food&Beverage Industry News | April 2021 | www.foodmag.com.au

index by the second February 2021 event, lifting average prices 56 per cent since September. Chinese buyers dominated purchases of WMP, SMP and butter as the economy gradually returns to normal and local milk use favours increased fresh product demand. Current EU and NZ commodity values are meeting resistance in developing markets and coming GDT events will be compelling viewing. Butterfat trade has been generally

weak at lower prices than these while WMP is testing tolerances. Cheese trade has been brisk and competitive. Meanwhile, US exporters will seek to take advantage of weak domestic prices to attract improved exports (if ports are working) across commodities except whey powder, with a glut of milk and weak domestic cheese demand due to the pandemic. A further phase of government supports may further influence markets when details emerge. F

NEW PRODUCTS

iBase’s Zen core-based digital signage player Backplane Systems Technology presents iBase’s SI-324 AMD Ryzen embedded V-Series with AMD Vega GPU and four HDMI. The player is powered by the new AMD Ryzen-embedded V1000 processor. SI-324 delivers four independent HDMI 2.0 displays with up to 4K @60Hz resolution in each display and supports up to 2x 4K@60 or 4x FHD@60 crisp content video playback. SI-324 integrates the IBASE iCONTROL intelligent energy-saving green technology and the observer remote monitoring technology to automatic power-on/off scheduling, remote monitoring, automatic power recovery, low-temperature boot protection, and smart operating system restoration. It comes built-in with hardware Extended Display Identification Data (EDID) analogue function remotely controlled by an iBASE utility to prevent problems caused by connecting a display, disconnection of display cables, or unrecognised displays. These problems are manifested in the form of black screen, wrong screen resolution, and colour distortion. Housed in an elegant black and white case with smooth edges, it has segregated ventilation to keep dust away from system components and thus improve system reliability. Supporting up to 32GB of fast dualchannel DDR4 memory, SI-324 offers advanced expansion and interfaces including 1x mini PCI-E, 1x M.2 E-Key, 1x SIM card slot, 2x USB 3.0, 1x USB 3.1, 2x GbE RJ45, and HD audio. Key Features: • iCONTROL intelligent energy-saving and observer remote monitoring technologies; • AMD Ryzen-embedded V1000 series; • Vega GPU with up to 11 compute units; • 4x HDMI 2.0 with independent audio output support; Built-in hardware EDID emulation function with the software setting Mode; • 2x DDR4-2400 SO-DIMM, dual-channel, Max. 32G;

• 1x mini PCI-E(full-size) for Wi-Fi, Bluetooth, 4G LTE, or capture card options; • 1x M.2 E-Key (2230) for Wi-Fi, Bluetooth, 4G LTE options; • 1x M.2 M-Key (2280) for storage; • segregated flow ventilation design; and • operating temperature- 0°C-45°C. Backplane Systems Technology (02) 9457 6400 www.backplane.com.au

DAS’ iWSN-1110X iWSN current sensing ICP Australia has introduced the ICP DAS iWSN-1110X iWSN current sensing module with 1-ch CT input and one expansion Interface. The module is a self-powered module for AC, digital input, and temperature measurement. It can harvest the demand for electricity from the CT induced current so that there is no necessary to supply the power line for power supply. Utilising sub-1G RF communication interface, iWSN series can approach to real wireless deployment. The diversified IO interface, such as split-core CT, Rogowski coil, NTC thermistor, and dry contact DI, provides users with more choices for various applications. Considering the maintenance and installation, the iWSN sensing module uses the DIP switch and rotary switch for configuration. Through the flexibility of the expansion interface and good price-performance, the iWSN sensing module can be widely used in the application of saving power, big data analysis, and predict maintenance. Key features: • self-powered by built-In a chargeable Li-ion battery; • split-core current transformer (CT) for easy installation; • energy harvest from the CT Induced electricity; • uses 433 MHz radio frequency for communication • 16 RF channels and 4 group ID, consist of maximum 64 RF Sub-networks; and • supports maximum 400A CT. It provides an expansion interface for flexibility, and expansibility offers wallmount mechanism and magnet for installation. ICP Electronics (02) 9457 6011 www.icp-australia.com.au www.foodmag.com.au | April 2021 | Food&Beverage Industry News 49

NEW PRODUCTS

Modular safety relay myPNOZ – create your safety myPNOZ is the new modular safety relay that is produced for you, tailored to your individual requirements, in batch size 1. Easy to handle, flexible to use and with versatile features for reliable monitoring of safety functions such as emergency stop, safety gate, light curtains, IIIA/C two-hand controls and enabling switches. It consists of a head module with up to a maximum of eight expansion modules, which can be freely combined. With the intuitive online tool myPNOZ Creator, users can assemble “their”myPNOZ: its delivered preassembled, set up and tested and so is a completely individualised system, ready to install. No programming knowledge is required to use myPNOZ Creator, as the logic links for the safety functions are defined on myPNOZ via the modules that are selected and the sequence in which they are plugged in. As such the automation company Pilz has developed a digital, universal concept for its new modular safety relay myPNOZ, from selection through to order: with myPNOZ Pilz can offer safe solutions that are built in accordance with customers’ specific individual batch size 1 requirements. In the corresponding online tool myPNOZ Creator you can assemble a needsbased safety solution from a wide range of options. Users can switch between a logic view and a hardware view. The option for visualisation and extensive documentation is also available via simulation. Here’s how it is possible to make a tailor-made solution: • You create: The user-friendly myPNOZ Creator can be used to create an individual myPNOZ safety relay online. • We build: Based on your personal configuration, every myPNOZ is preassembled, adjusted and tested by Pilz. • You install: the customer receives their myPNOZ “ready for plug and play”. Features include: • easy-to-use myPNOZ Creator for your personal configuration; • delivery of your individually manufactured, adjusted and tested myPNOZ ; • reliable monitoring of 2 to 16 safe input functions ; • option for several independent safety circuits (zones) within a system; • two safety inputs for each input module; • output modules optionally delayed and with relay or semiconductor outputs;

• enables AND/OR operations for safety inputs; • diagnostics via LEDs for each module and safety function;and • minimal wiring effort thanks to power supply via head module and connection of the modules via BUS connector. Pilz Australia 1300 723 334 | 03 9560 0621 www.mypnoz.com

Pro-V Inline Vortex flow meter VorTek Instruments Pro-V M24 multivariable vortex flowmeter offers accurate and reliable flow metering in a multivariable design. The multivariable design incorporates a high-accuracy velocity sensor, a platinum RTD temperature sensor, and a solid-state pressure transducer. It can deliver volumetric flow, mass flow, temperature, pressure, density, and energy (BTU) measurements from a single installed device. This reduces complexity, equipment costs, and installation costs in comparison to installing multiple stand-alone instruments to arrive at the same process measurements. The M24 includes a reduced bore option. The meter’s process connections match the line size but using integrated reducing flanges, the meter body is reduced in diameter. This increases the fluid velocity through the meter. Increasing the velocity in this fashion extends the meter’s measuring range to capture lower flow rates that might otherwise be missed in a full line size meter. This reduced bore option also shares the same face-toface dimension as a standard M24 meter for pressure classes up to ANSI 600. So if process conditions change, 50 Food&Beverage Industry News | April 2021 | www.foodmag.com.au

the meter body size can be changed without any costly piping modifications. This is useful in project planning, as it allows for flexibility into the future. The unit offers a variety of communication and power options. In addition to providing traditional communication methods such as analogue output signals, the flowmeter also offers the latest and most advanced serial communication options such as BACnet/IP and Modbus TCP/IP. The M24 is the only vortex flowmeter on the market to provide Power over Ethernet (PoE) capabilities. PoE functionality delivers power and data through a single ethernet cable, which both simplifies installation and reduces installation costs. AMS Instrumentation and Calibration (03) 9017 8225 www.ams-ic.com.au

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