Food & Beverage Industry News - June 2018 by Prime Creative Media

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Into the mouths of babes Chinaâ&#x20AC;&#x2122;s obsession with Australian infant formula

PLUS: Efficiency & Downtime | Allergens Testing | Food & Beverage Industry Awards 2018

Working hand in hand with St.George industry specialists It’s our business to know your business. From producing fresh, perishable, or shelf-life products to sourcing and selling your goods domestically or internationally, our team of food and beverage specialists understand the hard work that goes into making your business a roaring success.

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ver the past couple of years, headlines have been made about the Australian-made baby formula flying off the shelves and heading off to China. The demand for our formula is so high, mainly because it is seen as a trusted source of nutrition for the Middle Kingdom’s burgeoning middle class. The same middle class that that is starting to expand its evergrowing families and the People’s Republic abandoned its one-child policy in 2015. However, with most instances when this kind of thing occurs, resentment builds. Especially from Australia’s own population of mothers trying to feed their babies and toddlers. What to do? In this issue, we look at one local enterprise, Bubs Australia, that has managed to navigate Chinese bureaucracy and has a foothold in what will become a very lucrative market. The story also outlines the various ways in which commerce is carried out and is well worth a read for any company wanting to start exporting to the monolithic economy. We also take a sneak preview of the Food

& Beverage Industry Awards that will take place in August in Sydney. As with previous awards, we have plenty of nominations in each of the nine categories and we at Food & Beverage Industry News are looking forward to a great night where we can look at the innovative products and services that make our industry tick. It would not be unreasonable to think that most banks don’t find the manufacturing industry sexy, or that it is the first port of call when they are looking for new business. However, St George see things a little differently. Not only does it go looking for manufacturing clients, its industry-alignment model – instigated several years ago – goes out of its way to help manufacturers work their way through the minefield of loans, cash-flow and foreign exchange issues. This issue, we look at a case study of one company that is a client of St. George and how the bank has helped it navigate the current financial landscape as it expands its market share. Syed Shah

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24 AUTOMATION & SAFETY

38 FOOD SAFETY

8 COMMENT

28 EVENTS

42 FINANCE

10 NEWS

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14 TRADE & EXPORTS

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www.foodmag.com.au | June/July 2018 | Food&Beverage Industry News 5

MARKET WATCH

Deal activity picks up F ollowing a slow start to the year, deal activity in the food and beverage industry has picked up with eight transactions announced in March and April 2018.

Acquisitions announced Date

Target Name

Acquirer

Sector

26 Feb 18

Birch & Waite Foods

Blue Sky Private Equity

Packaged Foods

26 Feb 18

Impulse Marketing

The Distributors

Retail Merchandising

6 Mar 18

Goldline Distributors

Bidfood Australia

Foodservice distribution

16 Mar 18

Boscastle Pastries & Foods

Patties Foods

Baked Goods

26 Mar 18

Remedy Kombucha (investment)

Lion Dairy & Drinks

Beverages

28 Mar 18

Tribe Breweries (investment)

Advent Private Capital

Craft Beer

5 Apr 18

Hollier Dicksons

PFD Food Services

Foodservice distribution

11 Apr 18

Q Catering and Snap Fresh

dnata

Catering

11 Apr 18

Nature’s Care

JIC and Tamar Alliance

Vitamins & supplements

11 Apr 18

Australia’s Oyster Coast

Roc Partners

Seafood

OSI International

Poultry / Meat processing

4 May 18

Turi Foods (merger)

Blue Sky Private Equity acquired Birch & Waite Foods in February 2018. Birch & Waite manufactures and distributes premium chilled mayonnaises, dressings, sauces, mustards, salsas, desserts and condiments in Australia. Patties Foods announced the acquisition of Boscastle Pastries. Boscastle produces a range of high-quality artisan pies and pastries from a facility based in Brunswick, Melbourne. The Boscastle acquisition enhances the ability of Patties Foods to supply artisan products to customers in the

savoury, frozen and chilled categories. PFD Food Services acquired Hollier Dicksons, a wholesale distributor that specialises in confectionery, snack food and beverages. The foodservice distribution sector has witnessed several transactions in recent times as the sector consolidates. Other transactions in foodservice distribution include the acquisition of Goldline Distributors by Bidfood and the acquisition of Impulse Marketing by The Distributors. Qantas has sold its catering businesses, Q Catering and Snap Fresh, to Emirates Group’s catering, cargo and handling group, dnata. Under the agreement, dnata will provide catering for Qantas flights for an initial period of 10 years. A consortium comprising JIC and Tamar Alliance acquired a controlling stake in Australia’s third largest vitamins company, Nature’s Care for around $800 million. The Wu family who founded Nature’s Care has retained a stake in the business. The sale of Nature’s Care is the largest transaction announced in the year to date. Private equity firm, Roc Partners, invested $20 million in Australia’s Oyster Coast. The investment resulted in Roc Partners taking a majority stake in Australia’s Oyster Coast. OSI International Foods and Turi Foods announced a merger of their Australian operations. The combined business will provide food solutions across a range of proteins in the Asia Pacific region. Deal activity in the first four months of 2018 started strongly. The food and beverage industry remains attractive with strong interest in the industry from both trade investors and financial investors.

Ben van der Westhuizen (left) 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 recover slightly, from low levels due to lower tradeable supplies. COARSE GRAINS – World barley prices to rise due to low stocks and strong demand for feed and industrial-use coarse grains. OILSEEDS – World canola prices to fall due to abundant oilseed supplies. SUGAR – World sugar prices to fall due to world sugar supply growing faster than demand.

6 Food&Beverage Industry News | June/July 2018 | www.foodmag.com.au

BEEF AND VEAL – Australian cattle prices to fall due to higher production and strong competition in export markets SHEEP MEAT – Strong competition from processors and restockers to drive lamb prices higher. DAIRY – Milk prices to rise due to a falling Australian dollar and increased competition for milk. Source: Department of Agriculture and Water Resources (ABARES), Agricultural commodities March quarter, 2018.

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AFGC

Common Despatch Checklist Toolkit The Trading Partner Forum has developed a new toolkit to facilitate the smooth running of materials handling and logistics operations within the food and beverage sector.

n 2017 the Trading Partner Forum, consisting senior executives from major Australian food and grocery retailers and suppliers, identified the opportunity to work together to deliver a standard approach to deliveries into retail distribution centres (DC). The focus was on physical flows of goods from the supplier into retail DCs. The development of a Common Despatch Checklist Toolkit comprises a suite of simple to understand and use tools to support suppliers and their 3PL

organisations to ensure that deliveries to retailers have the best chance of being quickly and easily receipted without issue. The tools are primarily targeted for use by suppliers to the major retailers, and are consistent across Coles, Metcash or Woolworths.

One Page Reference Guide

Pallet Despatch Checklist Poster

Pre-Despatch Checklist Tool

The poster is intended to be displayed in despatching at a DC as a visual reference, and highlights issues that can be visually checked prior to despatch.

8 Food&Beverage Industry News | June/July 2018 | www.foodmag.com.au

This is intended as a simple reference guide to support despatch staff in understating the most basic requirements associated with pallet quality, utilisation and wrapping, carton integrity and labelling.

This is an operational document which despatch staff at suppliers or 3PL DCs can utilise prior to despatching goods. It is simple to use and reminds staff of the basic issues to check prior to despatch.

A forum of the Australian Food and Grocery Council (AFGC), the TPF is a joint supplier and retailer body representing the Australasian FMCG/retail industry whose mission is to bring together FMCG suppliers and supermarket retailers in pursuit of business practices that contribute to driving growth, delivering efficiency and improving availability across the end-to-end value chain, benefiting suppliers, retailers and shoppers, without impeding competition law. The Toolkit is free and can be accessed on the TPF website.

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NEWS

ACCC calls for regulatory reform to assist dairy farmers T

he ACCC has released the final report arising from its dairy inquiry, which includes the key recommendation that a mandatory code of conduct be implemented to improve contracting practices between dairy processors and farmers. The inquiry was initiated by Treasurer Scott Morrison in response to large and retrospective reductions in milk prices imposed by two major dairy processors in April 2016. The inquiry involved investigations, consultation and data analysis over a period of 18 months. “A mandatory code of conduct would address problems arising from the large imbalance in bargaining power and information that exists between dairy farmers and processors,” ACCC Commissioner Mick Keogh said. “Currently, processors can impose milk prices and other terms of milk supply contract terms that are heavily weighted in their favour. Some milk supply contracts also contain terms that restrict farmers’ ability to change processors for a better offer. “These issues ultimately harm dairy production efficiency and reduce the effectiveness of competition between

processors,” Keogh said. The ACCC explored ways to address these concerns and found the existing provisions of the Competition and Consumer Act (2010), the dairy industry’s voluntary

code of conduct, or a prescribed voluntary code would be inadequate. “A mandatory code would improve the quality of information and price signals available to dairy farmers, enable fairer allocation

of risk and enhance competition by removing switching barriers. While introducing a code won’t fully correct the bargaining power imbalance, it will reduce some of the negative consequences,” Keogh said.

A mandatory code of conduct will give dairy farmers more say in the price of their product.

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NEWS

Budget sees craft beer tax cut C

raft brewers and distillers will no longer pay additional tax, allowing them to compete on fairer terms with large beverage companies. May’s Federal Budget saw the Government increase the amount beverage companies can claim back on their excise and extend the concessional draught beer excise rate to smaller kegs, typically used by craft brewers. The alcohol excise refund scheme cap will increase from $30,000 a year to $100,000, from 1 July 2019 for all brewers and distillers. This additional tax relief, on top of the Government’s legislated tax cuts for small and medium businesses, will allow craft brewers and distillers to compete on fairer terms with large beverage companies. Currently, draught beer sold in kegs exceeding 48 litres is taxed at lower rates compared with beer sold in smaller kegs. This is unfair for smaller brewery businesses. Extending the concessional draught beer excise rates to kegs of 8 litres or

Tax relief is on the horizon for craft beer brewers. more will level the playing field for craft brewers, which typically use smaller sized kegs, to distribute their beer to pubs, clubs and restaurants. There are around 380 craft brewers in Australia located

across each State and Territory, employing the equivalent of almost 2,400 people. These brewers are predominantly small businesses and could benefit both from the increase to the excise refund cap and extended

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TRADE & EXPORTS

Bubs Australia has signed a distribution deal with QianJianWanPu of China.

Into the mouths of babes China’s love affair with Australian-made infant formula shows no signs of coming to an end. Food & Beverage Industry News examines this ever-growing market and the best ways Australian manufacturers can become involved in it.

or over two years now, the media has featured regular stories about Australian parents not being able to find their favourite infant formula. Many of the brands have been disappearing from supermarket and pharmacy shelves almost as soon as they are put there. The answer to this “disappearance” is by now well-established. The tins of formula are being snapped up by daigou – Chinese purchasing agents (students and others) based in Australia who can sell it online back home for more than twice the Australian retail price; and, in the process, earn themselves an amazing average annual pay packet of around $100,000. While this phenomenon continues to prove frustrating for Australian parents, not much has been done about it. Retailers have limited sales

per customer, but the view of the Government (and most commentators) is that the market will solve the problem. Correctly, most say that as Chinese demand continues, Australian manufacturers will find ways to send more formula to China and everyone will be happy. The good news is that progress is being made. For example, in late April Bubs Australia, a maker of premium baby food and goat milk-based formula signed a distribution deal with QianJiaWanPu Co, China’s largest distributor of infant nutrition products. As a result, Bubs’ products will be available in 80,000 Mother & Baby Stores (MBS) in China. The signing took place in Sydney at the Aus-China Infant Nutrition Roundtable, an event sponsored by Wattle Hill RHC Funds. Speaking

14 Food&Beverage Industry News | June/July 2018 | www.foodmag.com.au

at the event Kristy Carr founder and director of Bubs Australia pointed out that the daigou account for a relatively small proportion of the infant formula market. She said it is a complex landscape with three routes to market – the daigou, cross border e-commerce (CBEC) platforms like Alibaba, and the MBS. “The e-commerce sector of the market [including daigou and established platforms] is probably around 32 per cent, while the MBS are about 52 per cent,” she said. Australian products are sold via all three routes. Each has its benefits and each suits different types of businesses.

The importance of e-commerce Keynote speaker at the Roundtable, John O’Loghlen, director of business

development for Australia and New Zealand at Alibaba Group, said the belief that cross border e-commerce into China has a limited life is incorrect. He offered three reasons for this. “Firstly, it’s critical for the Chinese and Australian authorities to have full transparency and be able to analyse imports and exports out of China and tax product appropriately at both ends. “Making sure you have product direct from the factory, or its source to a bonded warehouse, and then with one logistics carrier taking it to the consumer again is an important solution to food safety concerns and other areas like tampering with product, counterfeit products and other challenges that can take place in the supply chain.”

TRADE & EXPORTS Different "tiers", different markets

Secondly, he pointed to “a simple reading of the tea leaves” and said that, despite the naysayers, both the Chinese Government and major e-commerce companies have continued to talk up this method of business. In addition, the first ever state-sponsored conference will take place in Shanghai in November. “When something gets alleviated to that level and Beijing is supporting it, we can be quite confidant in saying the industry is headed in the right direction,” said O’Loghlen. Thirdly, he said, e-commerce gives importers a real opportunity to test the Chinese market. “Getting onto e-commerce platforms, selling product, even in small volumes, gives you amazing transparency on consumer feedback,” he said. Eva Zhang, CEO of Ecargo, the only ASX listed e-commerce service provider, reinforces this point of view. “Cross border e-commerce is a very important channel for emerging Australian brands because it’s probably the most efficient way to test your products in China before you set up your physical distribution. That process can be very time consuming,” she said.

Unlike in Australia, Chinese cities are categorised into a “tier” system. These tiers measure things like population, consumer behaviour, income level, politics, and local trends. As Michelle Zhao, Founder CEO of Rui Ai, one of the largest MBS chains in China’s Sichuan province points out, in China, markets and consumer behaviour vary according to what Tier the city is. Speaking at the conference through a translator, Zhao said, “The online business is popular among Tier 1 cities. And the brands and products that are appropriate for that channel are large and wellknown brands. “Most MBS stores operate out of 3rd and 4th tier cities. These customers look forward to service and the actual interface. There’s also a reliability when dealing with the source.” She said that MBS can offer mothers services (like day-care or even swimming lessons) that online businesses can’t). These stores represent a good opportunity for less well-known foreign brands like Bubs to sell their products. Famously, Chinese consumers are drawn to the “clean, green” image of Australian food products and are

prepared to pay a premium for them. In the case of infant formula sold in the MBS, parents have to pay even more than the already inflated prices found online. According to Zhao, this does not affect sales in the MBS. “If there’s a difference between online and in stores, it shouldn’t be a problem. The store will always sell more even though the price is higher than online. “If we look at the industry average price in China it’s about $49. In western markets its about $24. There’s a very large gap, but great opportunities for Australian products in China.”

Infant formula regulations in China The Chinese Government has introduced regulation to the infant formula industry. All suppliers now have to be registered to sell their products. However, at this stage, there is still no regulation of cross border e-commerce sales. Given the food safety concerns that are driving Chinese parents to seek out high-quality food products for their children in the first place, regulation is understandable. The worldwide prevalence of food fraud makes it is easy to take Beijing at its word when it says it wants to encourage reputable

food manufacturers (both local and foreign-based). Still, the move to registration has caused some anxiety among importers. Many smaller brands, in particular, were not prepared for registration. Samuel Liu, Secretary General of China Nutrition and Health Food Association (CNHFA) and regulatory expert with China’s CFDA and CNCA, told the roundtable that if importers are nervous about regulation changes they should lobby the Chinese Government with their concerns. However, he underplayed the significance of these fears and pointed out that, as of February 23 this year, a total of 148 facilities (both domestic and international) had been certified by CNCA and CFDA and that 136 brands (102 domestic and 46 international) of infant formula had been registered. In addition, as of that same date, 13 Australian companies had been registered (up five from the previous year). He suggested Beijing has an open mind when it comes to regulation of food imports. “Registration for the Chinese Government is the most appropriate for the time to manage the industry but it may not be a continuous or long-term policy,” he said.

Bubs Australia founder, Kirsty Carr (right) that diagou account for a small percentage of the baby formula market. www.foodmag.com.au June/July 2018 | Food&Beverage Industry News 15

EFFICIENCY & DOWNTIME

Complete automation solutions There are many suppliers offering automation solutions for food and beverage makers, but only a few who can deliver complete solutions. Rexroth is one of them.

ver the past few years, as cost and pricing pressures have continued to make life difficult for manufacturers, it has become increasingly apparent that automation and Industry 4.0 are the best long-term bets for businesses that want to streamline production. “Industry 4.0 really is the answer. It allows the monitoring of production lines, bottlenecks, condition monitoring and potential energy savings to improve the line efficiency and reduce costs,” Peter Sammut, Rexroth business unit manager (automation and electrification) told Food & Beverage Industry News. “Automation also allows manufacturers to be flexible and agile… to produce different products in smaller batches and bring them to market faster.” On top of that, any process that needs repeatability with quality and/or traceability verification will

Automation allows manufacturers to flexible and agile. benefit from automation. “Industry 4.0 is just an extension of that process. It’s using real-time with shorter, more efficient response

THE PRODUCTS Some of Rexroth’s automation products include: Rexroth interdrive MI – a decentralised drive solution in which the drive is integrated on the motor. This allows machine manufacturers to integrate all of the electronic components on the machine. The IoT Gateway – suitable for use in an IoT environment, this product allows a precise co-ordinated combination of control hardware and software for implementing IT applications, collects sensor and process data, and transmits it to an MES. The MS2N motor – Rexroth’s latest motor, it features single cable technology with the best power density in the market. Ideal for food and packaging, it is compact and has an IP65 rating which is suitable for use in washdown environments. Electro mechanical cylinders (EMC) – this product can replace pneumatics with servo control equipment. VarioFlow Plus – a chain conveyor system, which is a simple modular standardised system (much like lego). Users can build it together to make any layout they like on site. APAS – a collaborative robot, which can be used in partnership with a human worker, without need for a safety cell. Good in food and packaging and end of line packing on a low volume high product mixed line, where a robot cannot be dedicated permanently. Active Cockpit – an interactive real-time communication platform for production lines. Used in parallel with an IoT gateway, it pulls live data to a central display with software which analyses and flags deviations, production KPIs, etc.

16 Food&Beverage Industry News | June/July 2018 | www.foodmag.com.au

cycles to the deviations. It’s just preventative maintenance at the next level. Any industry that needs repeatability with quality can benefit from automation,” Brendan Walsh Rexroth business unit manager (linear technology and assembly technology) explained. Broadly, Rexroth’s offerings within this space fall into two categories – linear motion technology, and electric drives and controls. Both have applications in the food and beverage manufacturing sector. Linear motion technology is used in primary packaging (putting end products in boxes), secondary packaging (placing the containers into either shipping boxes or pallets), and the conveyors used as transport between those points. Electric drives and controls, on the other hand, are used by the machine builders (OEMs and the special purpose machine builders). They help these people build machinery that is more flexible and modular and has faster set-up and changeover times.

Automation without technology bias According to Walsh, an important aspect of Rexroth’s approach to automation is the fact that the

company can offer a complete solution, which includes mechanical, electrical, and hydraulic machine components; as well as sensors, Industry 4.0-enabling products and even high-end ERP software (in conjunction with parent company Bosch). “We’re one of the few companies that has everything in the whole range,” said Walsh. Rexroth manufactures products based on an open architecture system allowing integration to third-party products. Therefore, the company has wider scope to provide the customer the best solution for a given application. “For example, the IoT gateway accommodates many different PLC manufacturers and communicates to them with ease,” said Sammut. The breadth of its offerings means that Rexroth is not biased towards one technology. “We offer hydraulics, electric drives and controls and linear technology. We’re going to offer the best possible solution to the customer,” said Sammut. In contrast, many other suppliers focus on one area and therefore tend to push that solution even if it may not be the most suitable for a given application.

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EFFICIENCY & DOWNTIME

Top of the line industrial plastics E-Plas supplies engineering grade plastics for a wide range of food manufacturing applications. The company has the expertise to not only advise what products are best for these businesses, but also the facilities to manufacture parts for them.

lastics play a critical role in modern food and beverage manufacturing operations. Among their many applications, they are designed to make components used in feed scrolls, star wheels for packing equipment, and machined components for fillers and mechanical mechanisms. However, plastics are not all the same. In industrial contexts, choosing the right plastic material for a given application can be a complex task. Due to their amorphous or semicrystalline nature, plastics have different properties to metals and as such require a different approach when designing for a particular application.

E-Plas has the expertise to advise food and beverage manufacturing businesses on the most suitable material for their specific applications. The company has the right combination of experience, expertise and customer service to deliver the right products at the right price. Established in 1981, E-Plas has branches in Victoria, New South Wales, Queensland, South Australia and Western Australia. Its head office, Victorian sales department and manufacturing department are all in Melbourne. “We offer in-house machining and fabrication facilities. We have a full range of engineering-grade

Plastics have many applications in the food and beverage manufacturing process. 18 Food&Beverage Industry News | June/July 2018 | www.foodmag.com.au

Choosing the right plastic for the right application is key.

plastics, with an increasing range of enhanced material grades to meet the increasing demand on efficiency for modern business,” Sean Kelly, E-Plas national operations manager told Food & Beverage Industry News. “Our products offer improved operations, with an overall reduction in cost of ownership.” So, for example, if an FMCG maker needed guarding to protect its employees from packaging machinery, E-Plas would be able to visit the site, view the application and recommend polycarbonate as the best product for the job. According to Kelly, the company is continually drawing on product development and implementations that take place globally, and then applying this information to bring new products to the Australian market. “This allows or customers to maintain their systems with OEM quality materials,” he said. E-Plas works closely with wellknown international suppliers, including Quadrant EPP, Rochling Sustaplast, Guarniflon and Spartech Corporation to provide support and advice on complex project material requirements in the food and beverage manufacturing sector. “As a long standing supplier of engineering grade plastics to

the Australian market, E-Plas is a proven business partner for commercial solutions,” said Kelly.

PRODUCTS BY E-PLAS E-Plas is a national supplier of a wide range of industrial plastics to various sectors. Some of the company’s modified grade products suitable for food and beverage makers include: • Tivar HPV – for high-speed conveyor systems, such as bottling lines. • Tivar HOT – a cost-effective option for higher temperature environments that require a low coefficient of friction i.e. Bake oven exit chutes, or food cooling spiral conveyors. • Tivar MD – metal-detectable UHMWPE for food packaging equipment wear strips. • Sustarin MDT – metal-detectable Acetal for food mixer and chopper blades.

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EFFICIENCY & DOWNTIME

New technology offers clean alternative to toxic chemicals Until recently, businesses looking to meet strict food hygiene and safety codes have had little option but to use harsh chemicals. Food & Beverage Industry News reports on a new cleaning and sanitisation technology that promises to change this.

deal for use in hatcheries, bakeries, dairies and food and beverage processing facilities, a new system that uses electro-chemical activation (ECA) has entered the Australian and New Zealand market. Comprising three components – high-purity salt, water and electricity – this sanitising system offers an alternative to concentrated chemicals and has proven to be just as effective, if not more effective, than traditional chemicals.

What is ECA technology? Electro-chemical activation (ECA) refers to a process where an electrochemical cell uses electricity, high-purity salt and ordinary tap water to produce a cleaning and sanitising solution. It is also known as electrolysed water, electrolysed oxidising water (EOW), electro-activated water or electro-chemically activated water solution. ECA produces both a cleaning solution and a sanitiser. The cleanser

is an alkaline solution that cleans and degreases, while the sanitiser is a strong oxidiser that provides powerful antimicrobial activity.

ECA versus chemicals Advanced ECA technology can be just as effective as traditional chemicals but comes without the health hazards and costs associated with concentrated chemicals. Traditional chemicals contain high levels of active ingredients to ensure they are effective – which are harmful to both people and the environment. Because ECA solutions are produced onsite and are used immediately, they can eliminate the same microorganisms despite having low levels of active chemicals. For example, the Klarion sanitiser is twice as effective as concentrated bleach – 200ppm of Klarion sanitiser does the work of 400ppm of bleach. With ECA equipment on site, facilities produce cleaners and sanitisers

in ready-to-use concentrations on demand. This eliminates the hazards of having to dilute or mix chemicals and also removes the need to store or dispose of chemicals. Also, workers don’t have to wear or use personal protective equipment (PPE) because there is no harm in the natural solutions produced by ECA. They are non-irritating, fragrance-free and there is no risk of chemical burn. This has the additional benefit of reducing costs for employers. Other cost savings come in the fact that using the ECA equipment will result in savings of 20 to 30 per cent compared with the use of traditional chemicals. There is no capital expenditure as employers just pay based on the volume produced onsite. Maintenance is also limited compared with using traditional chemicals – just a daily check of the cleaner and sanitiser pH levels and the salt level in the brine tank is required. The disposal waste stream is less

harmful and doesn’t require any special treatment.

Why hasn't ECA been widely used? If ECA technology is as good as it sounds, why hasn’t it been widely adopted by the industry? Because until recently, there have been problems with salt residue and corrosion, particularly with commonly used surfaces such as stainless steel. While most salt is converted during the electrolysis process, traces would often remain in the output solutions. However, one manufacturer has been able to successfully create an ECA technology that works with salt-free output. The Klarion patented technology by Spraying Systems is one that uses ECA but separates the salt source from the liquid flow path in the electrolytic cell via a charge-specific ion-exchange membrane. This results in a pure, salt-free output that can be used on stainless-steel surfaces without the

The Klarion Cleaning and Sanitising System has recently been launched in Australia and New Zealand. 20 Food&Beverage Industry News | June/July 2018 | www.foodmag.com.au

EFFICIENCY & DOWNTIME

CUTTING EDGE SOLUTIONS

New Affinity IntegraÂŽ Dicer

Triumphs Over Challenging Products

Electro-chemical activation is a cleaning solution that does away with harsh chemicals. risk of corrosion. The Klarion Cleaning and Sanitising System is also unique in that the electrolytic cell design has a longer cell life and is maintenance-free compared with other ECA technology.

Real examples One of Americaâ&#x20AC;&#x2122;s most established organic bakeries, the Alvarado Street Bakery, adopted the Klarion Cleaning and Sanitising System after learning it could provide a safe, sustainable alternative to chemicals. As an organic, kosher-certified, zerowaste bakery, there were three factors that determined their trial of the Klarion system. This included the challenge in validating the chemical use, worker safety and sustainability. The 40-year-old, employee-owned bakery was using chemicals with high chlorine concentrations. Their first issue was in finding test equipment to validate the effectiveness of the chemicals used due to the high chlorine level. Another concern was the risk to worker safety due to the use of toxic chemicals and the waste run-off from these chemicals. The Klarion system was installed easily into the bakery and was used with the existing sanitation standard operating procedures (SSOPs). Its first use was on food contact surfaces that were part of its adenosine triphosphate (ATP) swabbing program. The test results found a reduction in warn and fail numbers, as well as a reduction in cleaning time (it cut cleaning time by 15 minutes). The bakery then tested for pathogens in drains containing Klarion solutions and both drains passed theÂ test. Importantly, the worker response was positive. Employees found the

system easy to learn and use and were impressed by the safety of the solutions. The fact that they did not have to worry so much about chemical exposure was a big positive. They also found that it was easier to remove lecithin and built-up residue and that the testing of the pH and ppm of free available chlorine was much easier with Klarion. The transition to using the Klarion system was seamless and painless â&#x20AC;&#x201C; not one SSOP required modification. Another example is that of a chicken hatchery in the US, which saved more than US$1,300 per month after adopting the Klarion Cleaning and Sanitizing System onsite generation system. The hatchery had previously using traditional chemicals to clean and sanitise egg trays and other equipment. Concentrated chemicals in 208-litre drums required special storage space and needed to be diluted before use. This required workers wearing PPE and it also affected their morale â&#x20AC;&#x201C; they felt uncomfortable about working with, and being regularly exposed to, dangerous and toxic chemicals. Additionally, the chemicals needed to be handled and disposed of carefully to avoid ground and wastewater plant contamination. The Klarion EGS 6020 system was installed at the hatchery and it achieved the high standards of sanitation that were previously set â&#x20AC;&#x201C; but through a much safer process. The worker safety and morale improved. Also, the hatchery found that they saved US$1,300 a month compared with the traditional chemicals, as they eliminated the costs of purchasing the chemicals, their disposal and the PPE that had been required for employees.

The new Affinity Integra triumphs over high-fat, coldtemperature applications, and other types of normally difficult-to-cut products. The clean-cutting action achieves high capacities, and this new dicer may be integrated to replace Model RA series machines already in the field.

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www.foodmag.com.au June/July 2018 | Food&Beverage Industry News 21

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EFFICIENCY & DOWNTIME

Gates PolyChain GT Carbon belts are well equipped to handle the demands of any manufacturing environment.

The benefits of changing to new chain drives Industrial chain drives come under a lot of stress. Transmission roller chains have to handle heavy loads, increasing speeds, high temperatures, volatile materials and more. Gates Australia has some products that can help relieve this stress.

hain drives can often let food and beverage manufacturing operation down. They require more time to lubricate and maintain, and they may fail only a few months into their lifetime, requiring expensive replacement. Downtime costs businesses in lost productivity and earnings yet they continue, claiming “That’s how we’ve always done it.”

A Better Alternative Building on decades of experience in creating optimum solutions for belt drives in both automotive

and industrial applications, Gates PolyChain GT Carbon belts are well equipped to handle the demands of any manufacturing environment. PolyChain GT Carbon is Gates’ most powerful synchronous belt and is specifically designed for optimum performance on the sort of high torque, low speed drives often seen in industrial applications. An excellent alternative to chain drives, PolyChain offers many benefits to your business. The benefits of PolyChain begin with the belt’s innovative, state-

22 Food&Beverage Industry News | June/July 2018 | www.foodmag.com.au

of-the-art construction. The body and teeth of PolyChain GT Carbon are constructed of a lightweight polyurethane compound that is specially blended to adhere to the cords and fabric. Carbon fibre tensile cords provide extraordinary power carrying capacity as well as exceptional flex fatigue life. Combined, these factors mean PolyChain GT Carbon has the strength to withstand shocks and surge loading and is virtually immune to abrasions. Being much lighter than steel chain, PolyChain GT Carbon

also reduces overhung loads. Additionally, PolyChain GT Carbon has power ratings up to 30 per cent higher than previous incarnations of PolyChain – and yet, it has a multiyear service life, up to three times longer than chains. Similarly, pulley life for PolyChain is up to ten times longer than roller chain sprockets. Maintaining chains – lubricating, re-tensioning, removing links – takes up a lot of time. Imagine how much more efficiently businesses would run if they didn’t have to dedicate valuable production time to these

EFFICIENCY & DOWNTIME

tasks. PolyChain GT Carbon belts are completely maintenance free. They do not require messy lubrication or oil baths (a hazard for any food handling environment), or re-tensioning every few months. They will not stretch during service. That means less downtime spent maintaining drives, and more uptime getting on with the job. It offers 400 per cent greater capacity than HTD belts, 5 per cent energy savings over V-belts, and 99 per cent efficiency for the life of the drive. PolyChain GT Carbon is inert to most acids, chemicals and water, making it an ideal solution for wet environments – unlike roller chains, which can rust, potentially contaminating food-handling spaces. Poly Chain GT Carbon belts operate on Poly Chain GT pulleys and do not require any adaptation of existing GT2 applications.

The Specifications PolyChain GT Carbon comes in a range of lengths, including short and extended, to suit a variety of manufacturing purposes. Short length versions of the belt are suitable for industrial markets requiring a short centre distance but high-density power and offer all

PolyChain GT Carbon is inert to most acids, chemicals and water, making it an ideal solution for wet environments. the benefits listed above. They are suitable for temperatures from -54°C to + 85°C and are available in 8mm and 14mm pitch sizes. PolyChain GT Carbon is now available in extended lengths to handle longer drive centre distances than ever before, while still delivering the same high-power capability, long life, freedom from maintenance that you’ve come to expect from the shorter lengths. PolyChain also offers a massive 96 per cent weight saving versus traditional, comparable

transmission roller chains. Available in 5M pitch shorter drives, to the more common 8M and 14M pitch, Gates now offers 19M PolyChain GT Carbon extended length. This 19M pitch belt can replace even bigger roller chains, open gears and wide multi V-belt drives. The extended length allows for custom belt lengths with any tooth count (within minimum and maximum length range), a product that is truly tailored to your needs. All PolyChain GT Carbon belts

are fully operational in temperature extremes of -54°C to +85°C and can be used for applications in general manufacturing, food and beverage, timber, agriculture, oil & gas, cement and more. PolyChain GT Carbon is ideally suited to a range of different environments, from food production to fans and pumps. Already, plants around Australia have converted their tired, dirty old roller chains to the efficient Gates alternative and are seeing the benefits. PolyChain GT Carbon is an excellent problem solver. It offers reduced width drive conversions for existing roller chain applications, and over 120,000 possible ratio combinations, making it easy to switch drives.

Stay ahead of the curve In today’s fast-paced manufacturing environment, it is critical for businesses to stay ahead of the curve. By converting tired, old roller chain drives to highly efficient Gates PolyChain GT Carbon belts, they can set themselves up for future operating success. Space-saving, weight-saving, time-saving and money-saving, Poly Chain GT Carbon drives offer a long and reliable service life.

The Experts in Spray Technology

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PulsaJet® Spray Nozzles Minimal misting and accurate spray placement for coating, conveyor spraying and moistening applications

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range of spray solutions that can help you optimise your operations whilst minimising waste. Whether you’re spraying viscous coatings, sanitising conveyors, spray drying coffee or milk, applying antimicrobials or cleaning food processing tanks – we have the answer.

GunJet® Spray Guns High, medium and low pressure options for clean-up and wash-down operations

TankJet® Tank Cleaners Tank cleaning nozzles, spray balls and cleaning-in-place systems for tanks up to 100’ in diameter

www.foodmag.com.au June/July 2018 | Food&Beverage Industry News 23

AUTOMATION & SAFETY

Life gets better past 50 As it celebrates half a century of servicing the electrical engineering section, NHP looks at what it takes to grow an ever-expanding business.

stablished in 1968, founder Nigel Hugh Peck (NHP) started NHP Electrical Engineering Products with the promise to provide the electrical engineering marketplace with firstclass products, systems and solutions. As NHP enters its 50th year of operations, the company remains true to Peck’s vision and is proud of its heritage of being an independent 100 per cent Australian-owned and operated business. Today, NHP continues with the promise of providing customers with the local choice from a large product range supported by global partners. With the worldwide influence constantly impacting the Australian and New Zealand markets, NHP recognises that finding the balance between having a local presence and leveraging off global innovations is the key to assuming a successful place in both markets.

Today, NHP continues with the promise of providing customers with the local choice from a large product range supported by global partners.

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ASB SHOWGROUNDS, AUCKLAND, NEW ZEALAND, 18-20 SEPTEMBER 2018

REGISTER TO ATTEND FOR FREE WWW.FOODTECHPACKTECH.CO.NZ 24 Food&Beverage Industry News | June/July 2018 | www.foodmag.com.au

AUTOMATION & SAFETY

“It’s the local touch that sets NHP apart from the global competition. Not only do we provide local jobs across Australia and New Zealand, we have established a network of metro and regional locations that ensure our people, products and services are available where and when you need them,” said Stephen Coop, managing director and CEO of NHP. Over the last 50 years, NHP has been instrumental in contributing to some iconic marquee projects such as Melbourne Cricket Ground, Royal Brisbane and Women’s Hospital, BHP Jimblebar Mine, Adelaide Airport, Royal New Zealand Navy, Reliance Rail, South Australia Water and Nestle. In the modern, digitised world, with disruption regularly occurring in industry, the ongoing success of NHP has been driven by the company’s focus on “customer first”. This value has rung true since 1968 when Peck instilled that NHP would be a “people business dedicated to good customer service”. This is a legacy that proudly continues today. “The most essential element in the ‘solutions’ mix, is NHP’s quality team. No matter how good a product may be, it is nothing without

Scott Wooldridge, managing director Australia and New Zealand, Rockwell Automation (L) and Stephen Coop, managing director and CEO of NHP (R).

LAFERT ELECTRIC MOTORS HAVE INTRODUCED A NEW SERIES OF MOTORS & GEARBOXES FOR THE FOOD & BEVERAGE INDUSTRY. Along with the TEMA Stainless Steel Motors & Clean-Geartech’s Stainless Steel Worm gearbox, that are already used throughout the Food Industry, Lafert Australia will complement this hygienic design with the new Stainless Steel Helical Bevel gearbox & Aluminium motors & gearboxes which feature the latest in surface treatment technology “NTT”. The motors & gearboxes are treated with an innovative “NTT” coating with Nano particles (patented system), which makes the surface very easy to clean & resistant to major aggressive chemicals used in sanitizing. IP69k, High Efficiency IE3 & 420 Stainless steel motor shaft are just a few of the features essential for Food Safety. The new Clean-Geartech series is perfect for Meat & Poultry, Seafood Processing, Dairy, highly corrosive & harsh environments, marine & so much more.

To learn more about how Lafert Electric Motors can help you keep your business clean, safe and efficient, visit

www.lafertaust.com.au or call (03) 9702 3707 for details. www.foodmag.com.au June/July 2018 | Food&Beverage Industry News 25

AUTOMATION & SAFETY

dedicated people to supply, service and support that product. People are, and have always been, NHP’s greatest asset,” Coop commented. Integral to NHP’s customer promise of quality and reliable products, is its network of global partners that enable it to bring the world’s best products to the local market. Earlier this year, the company expanded its automation portfolio with the recent acquisition of Rexel Industrial Automation’s (RIA) New South Wales and South East Queensland business assets related to the distribution and supply of Rockwell Automation products in those territories. With the acquisition, NHP has been granted sole distributor rights for Rockwell Automation products, systems and solutions in the South Pacific including Australia, New Zealand, Fiji and Papua New Guinea. This has been effective since the 1st of May 2018. Throughout the formalisation process, NHP and Rexel Industrial Automation continued to trade as separate entities. At the same time, NHP was in constant contact with RIA customers throughout the month of April to ensure the seamless

NHP’s partnership with Rockwell Automation, the company brings together technical knowledge and expertise of the products and systems for the market.

transition of products and services. “We are proud and excited to be expanding our relationship with NHP across the South Pacific region as we work together to further enhance the efficiency of our customers, by delivering smarter, safer and more sustainable operational outcomes through Rockwell Automation’s Connected Enterprise solutions and by providing a simpler model to engage with our businesses,”

26 Food&Beverage Industry News | June/July 2018 | www.foodmag.com.au

said Scott Wooldridge, managing director Australia and New Zealand, Rockwell Automation. Underpinned by NHP’s partnership with Rockwell Automation, and in combination with the company’s extensive range of complimentary product portfolios, NHP brings together technical knowledge and expertise of the products and systems to develop integrated value-add solutions that

are tailored for the local market. Confidence is instilled with the company’s product and solution offering through a suite of personable service and support across Australia and New Zealand. With an ongoing commitment to continuously evolve and expand its innovative portfolio, NHP’s aim is to make its customers’ path to success easier and it looks forward to doing just that for many years to come.

ADVERTORIAL

Packaging design: failure is not an option After working with FMCG brands for 25 years, Task by Kirk General Manager John Kapiniaris has seen it all. He shares his insights on how to avoid the biggest packaging pitfalls. Quite often, the quality of the finished printed packaging does not reflect the original brand vision.

Task by Kirk General Manager, John Kapiniaris.

What is the impact for brands when new packaging designs don’t resonate with consumers? Research shows 70 per cent of purchasing decisions are made in store, with product packaging accounting for more than one third of the consumer’s decision-making process. Get it right and the rewards are plenty; but get it wrong and the fallout can be considerable. Heinz is facing a fine of up to $1.1 million after being found guilty by the Federal Court of misleading health messaging on its Little Kids Shredz product packaging, not to mention the costs associated with pulling the product from sale after the initial complaint in 2016. When packaging goes wrong, what can brands do to minimise fallout? Correcting mistakes must be swift in order to maintain market share, repair a damaged reputation and minimise time off the supermarket shelf.

Brands can ensure fast delivery of new packaging by fixing the issues that cause delays. Two of the most common issues are: 1. Suppliers don’t have the right technical resource for the fast turnarounds required to meet tight deadlines. We recommend using a specialist design execution agency that has the necessary resources to speed up any step of the designto-print process, from rollout to prepress to proofing. 2. Time wasted with endless rounds of changes needed to correct mistakes before printing. Work with a specialist supplier that has the print knowledge and technical design skills to create artwork that is print ready and colour accurate the first time. How do brands improve the quality and consistency of their packaging? All too often, the quality of the finished printed packaging does not

reflect the original brand vision. It is common to see colour inconsistencies across the packaging of a product range, particularly when multiple printers are used. Any small variation in colour or design is amplified on the supermarket shelf and will negatively impact shelf appeal and sales. The easiest way to improve print quality is to involve design execution partners early in the master design stage so they can advise suitability for printing and suggest alternatives before designs are finalised. They will also recommend the most suitable printing method for the best results. Consistency across a product range can be achieved by customising each artwork file to the print press it’s printed on. Every press prints differently. It’s important to use a technical designer who collects the unique print press specifications from each printer and builds every artwork file accordingly.

How can brands reduce packaging costs and avoid budget blowouts? Many brands end up spending more on packaging than they need to, money that could be better spent on marketing and promotional initiatives. Inefficiencies in the design-to-print process rack up the costs. The more suppliers and touchpoints involved in getting a design printed, the greater the chance of costly duplication of steps and errors along the way, not to mention high agency fees to fix the mistakes. Before you know it, the budget has blown out by tens of thousands of dollars, and the product is still not on the shelf. Brands can halve the cost and time taken to get products onto the shelf just by having a single design execution supplier take responsibility for transforming brand designs into colour-accurate print-ready files. John Kapiniaris is the General Manager of specialist design execution agency Task by Kirk. John has worked in the FMCG packaging and printing industry for more than 25 years helping brands achieve excellence in packaging, significantly reduce costs and optimise supply chain processes. www.taskbykirk.com.au

www.foodmag.com.au June/July 2018 | Food&Beverage Industry News 27

EVENTS

Rising Stars emerge at PIDA The 2018 Australian Institute of Packaging (AIP) National Conference took place at the Marriott Resort Hotel, Surfers Paradise on 2-3 May 2018 and was highlighted by the PIDA Awards. Food & Beverage Industry News reports. AIP oversaw the Worldstar Packaging Awards and the 2018 PIDA Awards.

ood and beverage is a major contributor to the GDP of Australia, both financially and employment wise. It is also the largest manufacturing industry in the country with various industry players that differ in terms of size and capabilities (agility and service to market). Australia has a firm reputation for supplying clean and natural products with quality and safety standards that are regulated and enforced within the supply chain. With increasing customer and consumer demands, packaging specialists came together over a period of two days at the start of March for the largest packaging and processing conference of its kind in Australia and New Zealand. The conference has been leading the way in professional and personal development for decades and is a part of the annual Packaging & Processing Week. The AIP, which is the core organiser of the event, oversaw the prestigious international WorldStar

Packaging Awards and the 2018 PIDA Awards for the conference, as well as the Women in Industry Breakfast Forum.

2018 PIDA Awards winners The winners of the 2018 Packaging & Processing Innovation & Design Awards (PIDA) were announced at the gala awards night at the Gold Coast on the 2nd of May, that included approximately 500 attendees. The PIDA Awards were held this year in conjunction with the international WorldStar Packaging Awards, which saw over 22 countries in attendance to also collect their awards this year. The PIDA Awards recognise companies and individuals who are making a significant difference in their field across Australia and New Zealand. The winners and High Commendations for the 2018 PIDA Awards are now eligible to enter the 2019 WorldStar Awards.

28 Food&Beverage Industry News | June/July 2018 | www.foodmag.com.au

PIDA Award winners takes out 2018 Worldstar Save Food Packaging Special Award The 2018 WorldStar Save Food Packaging Special Award winner was announced on the 2nd of May alongside the 2018 AIP National Conference, with one of their members ANZ Packaging & Innovation & Design (PIDA) Award winners taking out the gold. Sealed Air New Zealand was awarded the gold award in this category for their Fresh Technologies and Sealed Air Cryovac Freshness Plus design which was developed for a New Zealand company. It has enabled Fresh Technologies to extend the freshness of avocado and reduce product spoilage by 7.2 tonnes. A 90-day shelf life supports wider distribution and the 3 per cent growth in global consumption. With consumers seeking preservativefree freshness, fressure™ avocado spreads and guacamole in Cryovac Freshness Plus deliver just this.

Extended shelf life ensures less of the world’s hard-earned harvests end up in landfill and this also includes the copious resources used during harvesting. With humanity consuming 1.6 times more resources than what’s available, extending the shelf life of food is pivotal for a sustainable and less wasteful planet. Another PIDA Award winner, Woolcool Australia, was also shortlisted in the same category and they were awarded the bronze Special Award. Summer temperatures, long supply chains and deliveries that sit on a doorstep for over 12 hours present challenges for the fresh food and meal delivery sectors as contents must arrive fresh, with not only maximum nutrition, but also, safe to be consumed. Woolcool keeps food packed at 1°C chilled below 5°C for at least 24hrs. Woolcool works by wool fibres absorbing moisture from the air and minimising humidity/ condensation to create stable

EVENTS

temperatures. When the wool is enclosed in a micro-perforated, recyclable, food grade liner the wool can “breathe” and a natural cooling system results. As there is no odour, wool will not taint contents. As there were only four finalists globally for this special award category, this is a significant achievement for the Australia and New Zealand packaging industries and for the Australian Institute of Packaging (AIP) who have led the Save Food Packaging Award program for industry. This year’s Save Food Award Packaging finalist were: 1. Fresh Technologies Ltd and Sealed Air Cryovac Freshness Plus (Sealed Air, New Zealand) 2. Woolcool (Woolpack Australia, Australia) 3. Compostable Tray That Reduces Food Waste (Oneworld Packaging, S.l., Spain) 4. Vegetable Oil Wrapper with High Barrier Polylaminate Film (Shongai Technologies Limited, Nigeria) 2018 Australian Institute of Packaging Special Awards: The AIP Fellowship One of the core objectives of the

Australian Institute of Packaging (AIP) is to ensure that individuals are recognised for their significant contributions to the packaging industry. Dr Carol Lawrence, national president of the AIP had the opportunity at the gala awards night on the 2nd of May to present five AIP Special Awards. The AIP Special Awards are not given often and are designed to recognise inspirational individuals who have contributed significantly to the packaging industry over many years. The grade of Fellow is the highest recognition to Australian Institute of Packaging members. The key requirement is a significant and sustained contribution to the technology, science or application to packaging. The winners were: Jacky Nordsvan Jacky Norsdvan is a packaging specialist from Nestle Australia who was recognised with a Fellowship for her work in the packaging industry over the last 25 years. Her work has resulted in change in the packaging industry, bringing packaging sustainability, recyclability, labelling, and accessibility, to the forefront of packaging design.

Phillip Rolls Phillip Rolls is the managing director of Rolls Pack and has been a member of the AIP for 20 years. He has led his own packaging company to success through a pioneering spirit, positive thinking and strong business acumen. AIP has recognised his thirst for knowledge and commitment to knowing where the industry is heading, has seen his business grow from a small plastic bag manufacturer to respected industry leader. AIP Special Award: AIP Life Membership for Keith Chessell FAIP Keith Chessell has a 46-year career in the food, beverage and confectionery industries. In recent years, his focus has been on sustainable packaging design and has been a significant contributor to the development and judging of the Save Food Packaging and Sustainable Packaging Awards, the successful participation of the AIP within the National Food Waste Strategy and the newly formed Fight Food Waste Cooperative Research Centre. She is the current AIP representative on the LCA Standards Australia committee. Founders Award for Pierre Pienaar FAIP, CPP The Founders Award has been named to honour the Foundation

Members of the Institute and to recognise their contribution to the development of packaging technology in Australia. The Founders Award is given for outstanding performances which in a real way enhances the profession of Packaging Technology. Pierre Pienaar, AIP’s education director was the fourth recipient in the award’s history to receive it. He has 30 years extensive experience in the packaging industry Pierre Pienaar has been instrumental in the continued growth and success of packaging education and training around the world. Distinguished Service Award for Nerida Kelton MAIP Nerida Kelton MAIP has been involved with the AIP since 1998. Her professional strengths in marketing and commercial focus helped the AIP through a significant transformation twenty years ago that has shaped the current AIP. A key focus for her has always been to support the growth or people of all walks in life in many facets of the industry. Whether it was to help find a new packaging job, help seeking a new machinery system, or connecting teams in the pursuit of a successful project, nothing is ever too much trouble for her.

Optimise performance with Intelligent Motor Control NHP delivers Intelligent Motor Control to provide key diagnostic information that enables you to optimise performance with real-time access to operation and performance trends. Access to production and machine data helps you to make informed decisions that improve production, mitigate downtime, increase productivity and boost profitability, offering substantial benefits over conventional approaches. Work smarter and increase asset utilisation by implementing an Intelligent Motor Control solution from NHP to improve productivity and avoid motor failures with an integrated, data-driven approach.

To enhance your operations, visit nhp.com.au/more/intellmc NHP ELECTRICAL ENGINEERING PRODUCTS 1300 NHP NHP | nhp.com.au |

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SECURITY

Portable expanding barricades the perfect tonic for Woolworths When a Melbourne Woolworths Metro store needed an effective, movable barrier to secure its liquor aisles during non-trading hours it turned to The Australian Trellis Door Company.

ike all of the supermarket giant’s Metro stores, the Woolworths in the Melbourne suburb of Armadale aims to provide convenience for its busy inner-city clientele. Apart from the usual groceries, the store also sells liquor. Because of its extended opening hours, and to meet state liquor licensing legislation, the business needed to be able to block off the aisle that carries alcoholic drinks during unlicensed times and then, with a minimum of fuss or disruption, open them up again during licensed trading hours.

It needed a portable expanding barricade that would stop people reaching the bottles or alternatively, if they were indeed able to reach through the barrier, prevent them being able to pass them back through that barricade.

S04-1 DD (Double Diamond) mesh portable expanding barricade Woolworths Metro Armadale chose the S04-1 DD (double diamond) mesh portable expanding barricade from The Australian Trellis Door Company (ATDC) for this application.

30 Food&Beverage Industry News | June/July 2018 | www.foodmag.com.au

The product’s tightly interwoven mesh, which creates a narrow 65mm pitch between the metal cross linkages, makes it difficult to reach through the barrier. In addition, the black powder-coated barrier is 2020mm-high and has a seamless, floor-mounted locking arrangement to secure the installation. In other words, rather than attaching and locking the barrier to the aisle structure itself, the floor mounted locking mechanism has a surface-mounted laser cut stainlesssteel floor plate to which the barrier engages at each end and locks. As such, it provides a truly effective

and secure, yet completely movable, barrier. During non-trading hours the trackless, portable barricade can be wheeled away to the “back of house” on heavy-duty, non-marking, rubber-bottom castors. There it can be safely stored, out of sight.

Tested to meet legislative requirements According to ATDC, S04-1 DD’s double diamond mesh portable expanding barricade has been tested for safety under the latest OHS legislation and also tested by an independent NATA

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SECURITY

It is Australia’s largest retailer of liquor with well over 1400 Stores across the nation.

S04-1 DD: FEATURES & BENEFITS • Available finishes include galvanized and powder coated black satin or pearl white, with other colours available on request • Emergency lever can only be accessed from the internal side of the safety barriers • Easily folds back out of the way when not in use • Pivot or hinge aside option also available • Special egress locking facility available which is BCA compliant in certain circumstances

testing authority for compliance with numerous provisions of the Australian Standards for Temporary Fencing and Hoardings AS 46872007, namely for dynamic impact, simulated climbing and foothold aperture tests, having passed these tests successfully. The successful testing also confirmed this steel fabricated product’s characteristics as being rigid, formidable and strong yet easy to operate. According to Woolworths Metro Armadale, the introduction of the barriers has proven successful. They are serving their purpose as a powerful loss prevention tool, reducing shrinkage. Consumers are likely to see more of ATDC’s products used in similar applications at more Woolworths locations. The company has become the preferred portable fencing supplier, across Australia, for the Beer Wine & Spirits (BWS) liquor group. BWS is owned by Woolworth’s Endeavour Drinks, which also owns Dan Murphy’s, Cellarmasters and Pinnacle Liquor. It is Australia’s largest retailer of liquor with well over 1400 Stores across the nation.

Minimised size with maximised application flexibility. The ultra-compact C6015 IPC.

www.beckhoff.com.au/C6015 With the ultra-compact C6015 Industrial PC, Beckhoff is again expanding the application possibilities of PC-based control. Wherever space or cost limitations previously prevented the use of a PC-based control solution, this new IPC generation offers an excellent price-performance ratio in an extremely compact housing. With up to 4 CPU cores, low weight and unprecedented installation flexibility, the C6015 is universally applicable in automation, visualisation and communication tasks. It also makes an ideal IoT gateway. Processor: Intel® Atom™, 1, 2 or 4 cores Interfaces: 2 Ethernet, 1 DisplayPort, 2 USB Main memory: up to 4 GB DDR3L RAM Housing: Die-cast aluminium-zinc alloy Dimensions (W x H x D): 82 x 82 x 40 mm

Flexible installation with rear or side panel mounting.

The S04-1 DD (Double Diamond) mesh portable expanding barricade from The Australian Trellis Door Company. www.foodmag.com.au June/July 2018 | Food&Beverage Industry News 31

FOOD & BEVERAGE INDUSTRY AWARDS

The food industry’s night of nights The Food & Beverage Industry Awards celebrate the food manufacturing industry’s many and diverse success stories and provide tomorrow’s industry leader’s with role models.

ow in their 14th year, the Food & Beverage Industry Awards have become a key event on the industry’s calendar. The nominations are pouring in and this year’s event is set for Thursday 16 August 2018 at Dockside, Cockle Bay Wharf, Darling Park, Sydney.

This year, there are nine categories that are going to be contested on the night. All products being entered must be manufactured in Australia or New Zealand and have been introduced to market in the past 24 months. Each category will be awarded

with a trophy and then, to top things off, a Best of the Best trophy will be presented to that nominee which stood out above all others – the food and beverage industry’s top performer for the year. All finalists are automatically eligible for this prestigious award.

FOOD & BEVERAGE INDUSTRY AWARDS WHERE: Dockside, Cockle Bay Wharf, Darling Park, Sydney WHEN: Thursday 16 August 2018 NOMINATIONS: foodmagazineawards. com.au

THE CATEGORIES BEVERAGE OF THE YEAR Proudly sponsored by Vega, this category is open to all beverage manufacturers, both alcoholic and non-alcoholic, this Award recognises the best new beverage and looks at unique processing techniques, innovation in packaging and why the product was introduced to the market.

INGREDIENT INNOVATION Returning for 2018, this category celebrates those companies who have developed an ingredient innovation to fulfil a market need, as well as recognising any obstacles that have been overcome to introduce this innovation to the market.

FOOD SAFETY EQUIPMENT & MATERIALS Of crucial importance to all food and beverage manufacturers, this category celebrates new products and advancements in technology designed to improve and maintain food safety standards in manufacturing facilities around Australia.

PACKAGING INNOVATION Proudly sponsored by jet technologies, this category recognises an outstanding packaging solution that helps to ensure longevity, improves transit, benefits the environment and/or keeps costs low for manufacturers.

INNOVATIVE TECHNOLOGY OF THE YEAR Proudly sponsored by NHP, this award looks at products and technologies designed to help make food and beverage manufacturing more efficient and cost effective, as well as those that make improvements to the whole supply chain.

HEALTH FOODS Proudly sponsored by JCurve Solutions, this award celebrates new health foods. The product could be manufactured in a new way to preserve nutritional content or be processed to provide consumers with an easier way to meet their nutritional or dietary needs.

32 Food&Beverage Industry News | June/July 2018 | www.foodmag.com.au

FOOD & BEVERAGE INDUSTRY AWARDS

BEST IN DESIGN Proudly sponsored by Wiley, this category celebrates a manufacturer that has implemented an integrated design and build that includes automation and has an environmental benefit, and has resulted in a direct reduction of running costs for the manufacturer.

MEAT, POULTRY & SMALLGOODS This category recognises an outstanding meat product and looks at unique processing techniques, innovation in packaging and why the product was introduced to the market.

PADDOCK TO PLATE Introduced for the first time in 2017, this is the second time Paddock to Plate will be competed for. The award celebrates companies who source their product direct from the producer and maintain freshness while meeting a consumer demand, such as longer shelf life and/or ease of preparation and cooking.

BEST OF THE BEST Proudly sponsored by Platinum Sponsor Flavour Makers, the Best of the Best Award recognises excellence in food and beverage manufacturing, celebrating the best product of the year. All finalists are automatic entrants for the Best of the Best Award.

Cows might fly! Experience a surprising take on the future of food.

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2018 33 Food&Beverage Industry News | June/July 2018 | www.foodmag.com.au

FOOD & BEVERAGE INDUSTRY AWARDS

Emma & Tom’s – growing with JCurve ERP Emma & Tom’s, a maker of real food healthy drinks and snacks, was in need of scalable business management software to handle its growing distribution network. JCurve ERP proved the fresh choice the business needed.

ounded in 2004, Emma & Tom’s makes a range of whole fruit products, including juices, snack bars and iced teas containing fruit, seeds and nuts. The business philosophy of “Look After Yourself” runs deep and is reflected by its minimally processed, all-natural ingredients with natural vitamins, minerals and antioxidants. Headquartered in Melbourne, the business has four distribution centres located in Brisbane, Melbourne, Perth and Sydney. Emma & Tom’s distributes its products to over 5,000 stockists nationally including cafes, delicatessens and supermarkets. The business had outgrown Projekt2 08.05.18 08:19and Seite 1 its accounting software was

struggling with a high volume of transactions and an inadequate inventory management system. At the same time, cloud technology had been gaining momentum. ERP (Enterprise Resource Planning) software solutions were becoming more readily available thanks to the increasing popularity of cloudbased delivery. With ambitions of one day taking Emma & Tom’s international, the business needed an integrated business solution that was not only effective and scalable, but also featured high volume accounting capability, multi-site inventory management, customer management, as well as integrated purchasing and invoicing. “We needed a solution that

34 Food&Beverage Industry News | June/July 2018 | www.foodmag.com.au

would streamline and optimise our operations, allow our workforce to be more flexible, scale as the company grew and offered cloudbased cost benefits by eliminating the need for servers and updates,” explained Emma Welsh, co-founder of Emma & Tom’s.

An all-in-one cloud solution Emma & Tom’s explored JCurve ERP, a small business offering that had enterprise roots. The software provides affordable access to NetSuite, a globally renowned cloud ERP software suite. It delivers the core functionality of NetSuite at a low cost-of-entry edition. It was a perfect solution, being an all-inone cloud product that allowed

entire businesses to run their core operations from a single platform. Businesses starting with JCurve ERP gained the unique flexibility to transition seamlessly to NetSuite editions for larger businesses as they continued to grow. The decision to implement JCurve ERP proved to be extremely positive for Emma & Tom’s. The software’s industryspecific business processes for food and beverage manufacturers and wholesalers supported the operations and helped promote faster growth. The power to manage multiple inventory locations and stock lines through JCurve ERP’s unified solution empowered strong growth for

FOOD & BEVERAGE INDUSTRY AWARDS

gave us the ability to more clearly focus on future growth,” she said. It was a decision that freed the business up to focus on the future and set up the inventory management, production management, planning, payroll and accounting functions of the system for their next phase of growth. “We know there are still more features in the platform to take advantage of, and we’re working closely with JCurve Solutions to enhance them specifically for our needs. JCurve Solutions’ commitment to our unique business has been really great,” added Welsh. Since implementing the software, Emma & Tom’s has been able to handle more products and has extended its range. They now employ over 60 staff and have expanded operations into China. The company’s vision of taking the brand international has become a reality, and having the right technology and experience to support it, provides a solid base for continued growth.

Emma and Tom’s staff celebrate their win at the Food & Beverage Awards in 2017. Emma & Tom’s after implementation in 2013. “It’s given us the ability to handle more products and orders - and the complexities associated with this. Dealing in fresh foods

requires zero lag in operations and JCurve ERP meets this requirement perfectly,” noted Welsh. Working with JCurve Solutions’ team of experienced implementation

Oxygen Analysers, Relative Humidity Sensors and Meters, Dewpoint Measurement

consultants to deploy the system into their workplace, Welsh elected for a forward-thinking approach. “We decided to bring over only essential historical data, a decision which

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FOOD & BEVERAGE INDUSTRY AWARDS

requires zero lag in operations and JCurve ERP meets this requirement perfectly,” noted Welsh. Working with JCurve Solutions’ team of experienced implementation

Oxygen Analysers, Relative Humidity Sensors and Meters, Dewpoint Measurement

consultants to deploy the system into their workplace, Welsh elected for a forward-thinking approach. “We decided to bring over only essential historical data, a decision which

U.V Absorption Conductivity pH / ORP Colour

AMS Instrumentation & Calibration Pty Ltd Analytical Process Division

JCurve Solutions is proudly sponsoring the “Health Foods” category at the upcoming Food & Beverage Industry Awards.

Oxygen Analysers, Thermal Conductivity Analysers, NDIR Analysers, Multigas Analysers, OEM Analysers

Industrial Water Analysers and Liquid Analytical Products (pH, Conductivity, ORP, Dissolved Oxygen, etc) www.foodmag.com.au June/July 2018 | Food&Beverage Industry News 35

F&B REGULATIONS

A plain English approach to dealing with food allergies Food Standards Australia New Zealand is planning to change labelling requirements, and thus make it easier for food allergy sufferers to avoid problematic ingredients. FSANZ hopes new food labelling will address the lack of regulatory clarity.

ood allergies are atypical immune system responses to certain foods (normally proteins). According to research published in the Journal of Allergy and Clinical Immunology, in Australia about 10 per cent of children and two per cent of adults have food allergies. To help these people avoid known allergens, food and beverage products sold in Australia and New Zealand must, by law, list them on their labelling. There are 10 ingredients

on this list, namely – peanuts, tree nuts, milk, eggs, sesame seeds, fish, shellfish, soy, wheat and lupin.

Plain English Allergen Labelling Food Standards Australia New Zealand (FSANZ), the statutory authority charged with food standards, is in the process of reforming allergen labelling requirements. The aim of this exercise, which FSANZ is calling “Plain English Allergen Labelling”, is to make labels simpler and clearer for

36 Food&Beverage Industry News | June/July 2018 | www.foodmag.com.au

both consumers and food businesses. FSANZ CEO Mark Booth said the proposal will address a lack of regulatory clarity that has led to unclear wording on some food labels. “At the moment, some food allergens must be declared on food labels whenever they are present as an ingredient, food additive or processing aid,” he said. “However, there are no requirements about how the declarations must be made.” More specifically, FSANZ wants to consider the terminology used

on mandatory ingredient lists as compared to declarations made elsewhere on labels. It also says that, as it stands, unclear terminology is sometimes used for labelling fish, crustacea and molluscs; as well as tree nuts and cereals containing gluten. In addition, technical language, which some consumers may be unfamiliar with (e.g. sodium caseinate which is sourced from dairy) is sometimes used on labels. Any changes won’t be immediate and will follow an extensive

F&B REGULATIONS

UNDECLARED ALLERGENS – THE LEADING REASON FOR FOOD RECALLS Though separate to the move to improve the clarity of food labelling, undeclared allergens are a significant problem for Australia consumers. FSANZ classifies food recalls under the following eight categories: • Microbial contamination • Labelling • Foreign matter • Chemical/other contaminants • Undeclared allergen • Biotoxin • Tampering • Other According to FSANZ, despite Australia’s mandatory labelling requirements, for the 10 years from 2008 to 2017, “undeclared allergens” were the leading cause of food recalls (230 recalls or 37 per cent of all recalls). The second cause was “microbial contamination” (174 recalls or 28 per cent). According to Amelia Edwards, a food legal expert from Melbourne’s KHQ Lawyers, in some cases, the rush to market results in food products not being properly checked against key standards.

consultation process. In March, FSANZ called for submissions on the Plain English Allergen Labelling proposal. While the deadline for submissions had passed when this magazine went to print, a second

consultation (including draft amendments to the Food Standards Code) will follow, either late this year or early next year. Any possible legislative changes would follow that release.

“It is critical manufacturers know their responsibilities when it comes to cross-checking and labelling inside-out. Otherwise the risks are too great in such a competitive market,” she said. “The cost of failing to properly declare allergens and manage contamination risk goes well beyond a dollar figure, measurable not only in irreparable damage to brand confidence but, in the worst-case scenario, direct health consequences for consumers.”

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FOOD SAFETY The HACCP International certification program highlights the importance of seamless and impervious flooring.

Making sure floors meet HACCP Standard Food and beverage manufacturers wanting to ensure their plants are hygienic need to consider everything form the ground up. Flowcrete Australia, a supplier of a range of epoxy, MMA and polyurethane resin-based flooring systems can help them do this.

utting in place an effective Hazard Analysis and Critical Control Point (HACCP) food safety management plan has become a central priority for any facility involved in the production, processing or storage of food and beverage produce. This preventive risk assessment system ensures that all food safety hazards are assessed and that appropriate controls are put in place to eliminate or reduce contamination. National and state level food and beverage legislation stresses the importance of implementing due diligence procedures, many of which rely on HACCP’s advisory framework for facility design and construction. The Food Standards Australia New Zealand (FSANZ) – Risk Analysis in Food Regulation handbook emphasises the need for Australia’s food industry to embrace HACCP, as it states that it “identifies and addresses chemical, microbiological and physical hazards in a preventative manner, leading to the development of food safety plans for manufacturing industries and food businesses in general”. As a globally accepted benchmark of food safety, HACCP is also important for businesses eager to gain access to export markets. Proving that

a business can meet the necessary level of due diligence is essential for clients abroad to know that the food in question has been manufactured to a hygiene standard that they recognise. Getting the floor area right is a critical part of implementing a HACCP plan, as otherwise this part of the facility can present a variety of challenging health and safety concerns – especially for large-scale industrial facilities where slip risks, contamination threats and dangerous working practices all need to be carefully taken into consideration. The floor is a particular concern because gravity will cause the majority of contaminants to end up there and unwanted substances can easily be walked in from elsewhere. Therefore, if the floor is difficult to clean and starts to harbour dangerous pathogens, then the site could be putting its workers and clients at risk. The HACCP International certification program highlights the importance of seamless and impervious flooring, as seams, joints, grout lines and gaps can become breeding sites for bacteria, fungi, mould and mildew. Making sure that the floor provides a seamless surface will help the

38 Food&Beverage Industry News | June/July 2018 | www.foodmag.com.au

cleaning regime quickly wash unwanted substances out of the area. It is important to ensure that the floor is able to maintain these properties for an extended period of time, as otherwise its seamlessness or imperviousness could be compromised and degraded by the site’s workload. General conditions within the food and beverage industry can easily affect an insufficiently robust finish. The floor could be subjected to impact, thermal shock, point loading, heavy foot traffic and exposure to corrosive by-products such as fats, hot oils, blood, sugar solutions and natural food acids. Additionally, these substances can infiltrate the concrete material resulting in microbial growth and the spread of bacteria, which will in turn degrade not only the production environment but may contaminate the products themselves. Plant owners eager to comply with HACCP can take advantage of the HACCP International certification scheme, which confirms a product’s suitability for use within food processing, production and packaging facilities. Businesses can therefore specify building materials with this certification, safe in the knowledge that it will provide the properties

and functionalities necessary for an effective HACCP plan. This was the case recently when the Oostra Spice Company undertook a flooring refurbishment at its HACCP standard facility. The Victorian spice merchant required an easy to clean, durable surface for the site’s blending, packing and warehouse areas and so specified a HACCP Internationalcertified flooring solution to ensure that it would meet its high standards for hygiene, functionality and durability. Flowcrete Australia installed over 1,200 m² of a heavy-duty, antibacterial enhanced polyurethane system, which was installed in a range of bespoke colours to provide a UV stable, highly chemical and abrasion-resistant surface. A striking Homebush Gold colour was required specifically for areas that handled the vibrantly yellow coloured turmeric spice, as it is known to stain the surrounding environment. This exemplifies the importance of discussing the site’s specific operational activity with the flooring manufacturer to determine how the chosen material can optimise the floor area, as well as to ascertain the HACCP credentials of the system under consideration.

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FOOD SAFETY

Ensuring air quality in the F&B sector Like all manufacturers, food and beverage makers have an on-going need to use compressed air. CAPS Australia can supply these businesses with compressors that not satisfy this need, but also ensure their end-products remain safe for consumption. Food & Beverage Industry News explains.

ompressed air plays an indispensable role in the food and beverage sector and is used in a broad range of applications including product transportation and storage; packaging, filling and capping; cooling, spraying and cleaning; and fermentation and aeration. However, while they are critical for all modern food and beverage manufacturing facilities, if not used appropriately, compressors can actually have a detrimental effect. Contaminants emitted by compressors can affect food safety standards. “Generally, there are three types of contaminants in compressed air – oil, moisture, and particles,” said William Chan, product manager at CAPS Australia. “Oil and many types of particles are detrimental to consumers’ health while moisture can lead to the growth of bacteria, either in equipment or the end product.” Chan advises that food and beverage manufacturers who want to avoid air quality problems should follow a two-step process. The first step is to select an appropriate compressor. There are two types of compressors on the market, oil-lubricated compressors and oil-free compressors. “With oil-lubricated compressors you actually inject oil into the

These compressor models comply with the ISO 8573-01 Class 0 2010 standard.

Moisture can cause lead to the growth of bacteria in plant, which can have an adverse effect on produce. compression process, which means you actually pass this contaminant (lubricant) downstream. If the compressed air isn’t ever in contact with any of the end product, in theory food makers can use this technology without risk,” said Chan. However, in applications where the compressed air does come into contact with the end product, oil-free compressors should be used. “Oil-free compressors do not inject any lubricants in the compression process,

which means we can safely say that one of the three contaminants has been reduced,” said Chan. The second step to ensuring air quality is in the correct choice of drying technology, which is the means by which moisture is removed from compressed air. “Once again, if the compressed air does not come into contact with the end product then the user can potentially use a refrigeration dryer instead of a desiccant dryer,” said Chan.

In applications where the compressed air does come into contact with the end product, a desiccant dyer is the best option. CAPS Australia offers both lubricated compressors and oil-free compressors. All of these oil-free models comply with the ISO 8573-1 Class 0 2010 standard. This Class 0 certification is the most stringent class of air quality and certifies that the air discharged by the compressor is free of added oil aerosols, vapours and liquids. In addition, the company supplies refrigeration dryers, desiccant dryers, as well as filtration products, storage products and nitrogen generators. As Chan explained, nitrogen is used as a preservation agent, for example inside packets of chips or wine bottles, to maintain freshness and preserve taste. Asked how CAPS Australia can help food and beverage manufacturers decide what’s right for them, Chan said the company offers site audits as well as energy audits. They can help fitout businesses with the right equipment and guide them with regard to energysaving potential.

www.foodmag.com.au June/July 2018 | Food&Beverage Industry News 41

FINANCE

How industry-aligned banking services helped an F&B business to grow Peter Gates, the CEO of the Directus Group shares his thoughts with Food & Beverage Industry News on what it takes to have the edge in the ingredients industry.

irectus is a leading supplier of processed fruit and vegetable ingredients and speciality ingredients to food and beverage (F&B) companies in the Australasian region. Their clients include impressive names such as Coca-Cola Amatil, Lion and Asahi Beverages. But they provide business-to-business (B2B) ingredients to a diverse portfolio. With a strong focus on innovation, product development and capability enablers, Directus has carved out a name for itself in the industry. The company is a family business and was founded in New Zealand

by Tony Beattie in 1976. Directus Australian operations began with the company importing fruit juice concentrates into Australia from the US in 1984. From the beginning, Beattie has travelled extensively to find products that could not be sourced locally, or products that were in short supply, and marketed these successfully to Australian and New Zealand F&B businesses. This business formula worked, and the company has since expanded to growing operations in the US and Southeast Asia and recently added Directus Equipment Services, dedicated for supply, service

and spare parts for a number of specialised principle partners in the food and beverage equipment supply.

An organic evolution Peter Gates, the CEO of the Directus Group, says these business fundamentals – which are built on bringing suppliers and customers in the F&B industry together for their product and service requirements – have set the company apart from other companies in the sector. “Directus is always looking for ways to add value. With today’s globalisation it is very easy for companies to source ingredients, but

there are special skills required to provide that competitive advantage,” he explained. “Security of supply for brand owners is an important measure alongside quality and price. Directus can ensure ethical sourcing from reputable suppliers and with a consolidated purchasing model we can ensure our customers can obtain products from our local stock holdings.” The company has also evolved with the F&B industry, gauging the needs of their customers and the market in general. A part of this growth has included the supply of organic ingredients. Directus put a strong focus on innovation, product development and capability enablers.

42 Food&Beverage Industry News | June/July 2018 | www.foodmag.com.au

FINANCE

business to borrow money that is tied up in outstanding invoices. It empowers businesses by giving them control over working capital and is an excellent way of funding business growth. “This product has really worked for us as we’ve been growing so quickly,” Gates explained. “St. George has good systems in place. They’re robust but malleable at the same time. They’ve really helped us maximise this facility.” Other banking products that Gates said are integral to Directus include trade finance and foreign exchange. “Trade finance is really key to our business, as is our foreign exchange cover. They are probably the key products we use besides the invoice discounting. And St.George provide all of these products and services to us, so there is no need for additional consultants,” Gates said. “It certainly makes our work easier, being able to get all of these services from the one bank.”

Approachable and dedicated

CEO Peter Gates (pictured centre) attributes part of Directus’s success to the services provided by St.George Bank. “Directus is organic certified and can supply a full range of organic ingredients. We have aligned with world-class suppliers; always leaders in their fields. For example, Doehler is one supplier we are partnered with and they are a recognised leader in specialty ingredient and natural colours and flavours,” Gates said. In the last few years, Directus has enjoyed a growth spurt. While this has occurred as a result of their diverse product offerings and an increased number of customers, Gates also attributes part of this success to their relationship with St. George Bank. “With our increasing customer base and product offerings comes higher local inventory hence our enhanced facility with St.George,” said Gates. “Our business is different in that there is a lot of foreign currency and exchange involved and we are a unique B2B supplier – so quite a bit different to other F&B manufacturers or retailers,” explained Gates.

Personalised business service In his experience at Directus, Gates said that St.George has gone out of its way to understand the business, which has been a real point of difference when it comes to the services they provide. This has been a particular focus of the bank since they adopted an industry-alignment model several years ago. As part of this change, a F&B portfolio was created. This allows for customers such as Directus to benefit from a team of managers who have in-depth knowledge of their industry and the specific issues that they face within this sector. It entails a more personalised approach to the customer’s needs. As a result of the industry-alignment model, the bank won the “Best Service Business Bank” at the Australian Banking and Finance Business Banking Awards in 2016. As far as Gates is concerned,

this personalised approach and the relationship his company has with St.George has been really beneficial to business. “We have regular catch up sessions, where we provide our financials, but they also want to understand what aspects of the business can improve the cash flow or might need funding. They really want to get in and understand the whole process of how we contract with an overseas supplier, how we bring in a specific ingredient, store it and deliver it. This is one of the key things we’ve enjoyed in our relationship with St.George and one that we feel is unique.”

Banking on growth In terms of growth, Gates said the business has definitely profited from St.George’s services, such as Invoice Discounting. Invoice Discounting provides instant cash flow, allowing a

Besides the banking products that St.George offer, Gates says the relationship itself is unique between Directus and their dedicated relationship director. “It’s a formal relationship when it needs to be but can also be quite informal – in terms of being able to regularly touch base and discuss different aspects of the business or bounce ideas off of each other.” Having a banker who is focused wholly on the F&B sector makes a difference and Gates says that Directus benefits from said much more than they would from traditional banking services. As part of their unique product and service offerings, St.George provides “industry business snapshots” which give businesses like Directus an insight into current industry benchmarks and trends. It’s another example of how the bank is providing a more specialised service. “We meet with our relationship director on a regular basis. They are always available, very approachable and looking for ways to help us improve our business,” Gates explained. “We also have access to a network of other businesses in our sector, which can provide us with some interesting and useful insights.”

www.foodmag.com.au June/July 2018 | Food&Beverage Industry News 43

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PROMOTIONAL FEATURE BUILDING & DESIGN

Owning vs renting – which is best? Should food and beverage makers own or rent their manufacturing facilities. Wiley explores the pros and cons of each.

he past five years have seen an explosion of new and innovative models and products to fund food processing facilities. While once the landscape was dominated by the major banks, businesses can now access capital through a variety of new options. New funding sources include internetbased, peer-to-peer lending platforms, community ownership models, and crowd-sourced campaigns for funding and equity. Crowd sourcing in particular has been an enabler to the recent explosion of small breweries in Australia. A new brewery is currently opening on average every six days in Australia and rapidly the industry has transformed from one dominated by a few multinational brands to one far more local and innovative. Beyond these more novel approaches, the past few years have also seen the extension of equipment and process specialist providers “bundling” service solutions on a financed basis. These solutions may be constructed on-site via more traditional lease-type arrangements (such as rentals, lease-back, and rent-to-buy) with managed service agreements also becoming popular (particularly in the deployment of energy, refrigeration, logistics and water treatment). These agreements tend to be characterised by zero up-front payments, with the value recouped by either regular lease payments or through some form of operational driver. Facilities are often offered on an off-balance sheet basis, reflecting the operational nature of the agreement. The question often asked by Wiley clients is whether they should own their facility, or if it makes more sense to utilise these “off-balance sheet” solutions. Bundled value solutions can offer some good financial value, however the growth in these products often blurs the ownership and operational control within processing facilities.

Careful consideration needs to be taken when deciding to own or rent a manufacturing facility.

When does outright ownership make sense and what do businesses need to consider when entering into an “off-balance sheet” solution? Wiley has observed that, although there are many potential solutions, ultimately the decision is linked to the strategy of the business, operational requirements, financial objectives and the nature and importance of specific value adding activities within the facility. The main drivers for businesses opting for “off-balance sheet” solutions are: • capital efficiency – utilising third party capital frees up internal capital for investment in activities that provide a better return and in some cases, provide capital that would otherwise be unavailable; • balance sheet metrics – leasing and managed service agreements are traditionally performed on an “off-balance” basis, meaning that

they do not impact debt covenants and other financing products; • leveraging economies of scale and expertise – bundling managed service agreements can provide access to specialty operators and expertise that would be otherwise difficult to maintain internally; • obtaining accelerated tax benefits – it can be advantageous to utilise “off-balance sheet” solutions due to the different deductibility available; and • focussing the business on “valueadding” activities – a facility often requires the provision of many ancillary services that, although important, are not central to value adding activities. This could include the provision of energy, water, waste processing or logistics services and infrastructure. Where the main driver is to maintain balance sheet metrics (i.e.

to keep agreements “off-balance sheet”), it is important to also understand that Australian Accounting standards are in the process of changing. Currently, operating leases are considered an “off-balance” sheet item the key change is to bring many of those agreements onto the balance sheet. Managed service agreements are an important exception, however it is important that whatever agreement entered into is “future-proofed” for the pending changes. There is no easy solution and no one-size-fits-all-solution. Each facility and business is unique and it is important that businesses seek advice from a professional to understand the best solution for them. Wiley provides business model consultation services, as well as a number of in-house finance solutions.

www.foodmag.com.au June/July 2018 | Food&Beverage Industry News 45

PROMOTIONAL FEATURE BUILDING & DESIGN

Early contractor involvement pays off for catering company Faced with the compulsory acquisition of its facility, European Catering had no choice but to move premises. Total Construction designed and fitted-out their new facility and also helped ensure they received fair government compensation for the move.

urrently under construction, Westconnex is a major part of the NSW Government’s integrated transport plan for Sydney. The advent of the project has meant that many well-established businesses have faced compulsory land acquisitions by the Roads and Maritime Services and therefore been forced to relocate. Many of these are food manufacturers that have long held client bases in and around the Sydney metropolitan area. European Catering is just such a manufacturer. The company produces a range of complete meals and accompaniments for the corporate catering market. Producing a vast array of fresh and chilled ready to cook meals and finger food requires both production dexterity and attention to detail. While the construction of Westconnex meant the company had no choice but to relocate to another facility, fortunately they had sufficient time to design and perfect the layout for the facility. However, although they understood their operations and how best to run production, they realised quickly that they did not have the resources in-house to design, cost or complete the project. So they appointed Total Construction Food & Beverage division on an Early Contractor Involvement (ECI) agreement to assist in designing and budgetary costing for the project. Importantly, this could be used to help secure appropriate compensation for the relocation. Total set about identifying European Catering’s requirements and helping the business adapt to the chosen new facility. Quickly, Total Construction’s Process Engineering Team identified an important issue – the new facility was small but would be required to work functionally as a

Total developed a process design that would allow maximum efficiency for space. full manufacturing kitchen. The team at Total stepped up to the challenge. After working through the client’s needs and objectives, and evaluating the process flows required for the new site, they developed a process design that would allow for maximum efficiency from the space. In addition, Total had to ensure the proposed process flow and segregation would meet hygiene guidelines for ready to eat or reheat high risk food products.

The Design Process The design process for the European Catering project was broken into stages: • Design Stage 1: This first stage

46 Food&Beverage Industry News | June/July 2018 | www.foodmag.com.au

needed to focus on the equipment layout that would enable shared personnel control of multiple equipment processes and utility services (power, water, air etc.). This had to be mapped effectively to minimise the client’s sunken capital expenditure. • Design Stage 2: The second stage had to ensure high risk products were segregated physically from potential contamination of raw materials by introducing separate changing facilities for personnel. Sufficient area had to be allocated for meal assembly and dispatch. • Design Stage 3: The aim of this stage was to ensure all walls, ceilings and floors were supplied and installed

according to world’s best practice hygienic protocols. It was necessary to maintain segregation by having separate drainage and positive air flow in the high-risk area. • Design Stage 4: During this final stage, Total had to ensure both operational and process layouts could be used for the desired intent and purpose providing operational effectiveness. The aim was to allow for the production of food safe products, as well as flexibility for future product developments. One design challenge centred around the client’s requirements for freezer space. The new facility had limited space as it was, and to take up valuable real estate with freezer was

going to be difficult. Total proposed a two-level freezer, utilising an internal steel construction with grated flooring on the second level, to allow for cold air circulation between the two levels. To reduce the risk of contaminants falling from the above freezer to the lower level, dedicated walk paths were introduced with catch trays beneath. Total provided European Catering with the ideal design layout and buildability profile (including costing) for submission to authorities for consideration; and also supported the client throughout the evaluation process review to ensure justifications were provided when requested. The client secured the appropriate compensation, and work commenced almost immediately on fitting out the new facility.

To reduce the risk of contaminants falling from the above freezer to the lower level, dedicated walk paths were introduced with catch trays beneath.

A Positive Outcome Engaging a builder under an ECI afforded European Catering the confidence to clearly provide costings and justifications to authorities to secure fair compensation to relocate. Total Construction’s “inside out” approach to design and understanding of the equipment processes being employed, enabled them to put forward

a well-designed manufacturing layout fit for purpose in the space available. Total Construction’s commitment to European Catering’s “journey” was unyielding and enabled completion of the project within timeframes and budget, and laid the foundations for ongoing manufacturing cost

efficiencies to be maintained while keeping the highest quality food safety practices in place. Arnold Huber, director of European Catering, was delighted with the final outcome. “The recent facility fit out works Total Construction carried out for

European Catering was conducted with utmost professionalism. From the first initial contact, working with Total Construction’s Food and Beverage Division has been a pleasure. Total’s approach to being along for the journey with their clients was both true and beneficial,” he said.

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www.foodmag.com.au June/July 2018 | Food&Beverage Industry News 47

PACKAGING

Three packaging innovations for the wine industry Daniel Malki, director of Jet Technologies shares some packaging solutions that will give added lifelines to the products.

n 2017 Australia’s wine industry was estimated to be made up of 2,468 wineries and 6,251 grape growers, and it contributed over $40 billion annually to the Australian economy. As a major industry for Australia, wine producers rely on packaging to maintain their product quality, taste standards and to promote their brand message. There have been a number of recent innovations in wine packaging introduced to the local market that aim to help local wine producers stay ahead in a competitive global marketplace. Three innovation highlights include:

Innovative printed casks and flexible packaging This is an innovative cask solution, which is suitable for all types of wines and offers a superior preservation quality when compared with bag-inbox systems. The innovative cask can be custom printed to maximise branding on shelf and allow companies to brand their drink products without the need for additional external packaging. The shaped pouch provides a modern look and they have a carry handle that also helps with pouring. The bags are flexible, selfsupporting and come in 1.5, 2, 3 or 5 litre sizes with a choice of aseptic options. They allow wine companies in Australia to maintain the quality of their product beyond a traditional bag-in-box product. It helps extend the shelf life of a range of beverages when compared to using bag-inbox systems. Shelf life is extended due to the film structure of the packaging, which provides an important barrier to oxygen and ensures the preservation of the product for a longer period of time. This new packaging from Jet Technologies permits wine to be kept for up to eight weeks in ambient environments after opening.

Sparkling wine closures with polylaminate technology A range of hoods made from biocompatible material - a patented polymer, that are multi-layered & have self-supporting material - are now available in Australia. They are free from glues and the laminate is of 100 per cent vegetable origin. Continuous research and innovation recently led to the development of the new wine closure range, which are made of co‐extruded polylaminate, a multi‐ layered, self-supporting material that is produced through the direct co‐extrusion of raw material (aluminium and polyethylene) and that is completely free of adhesion promoters. Jet Technologies has partnered with the patented material owner in collaboration with its in‐house team of specialised engineers and researchers who worked tirelessly to improve the characteristics of the previous products in the market. The new closure range is available in all standard closures used for sparkling wines, including large sizes and with multiple printing options. The closures are certified for contact with foodstuffs in compliance with all European and non‐European regulations. Migration tests on the polylaminate verify the absence of harmful or hazardous substances such as Bisphenol A, heavy metals and aromatic substances (Ministerial Decree 21/3/73 and Regulation (EU) 10/2011).

Soft Touch film for wine labelling Jet Technologies and its partners have invested in researching and analysing the emotional impact, positive emotion and influence of the packaging sensory experience in the purchasing decisions of consumers. This is of particular importance to the wine industry, because it affects

48 Food&Beverage Industry News | June/July 2018 | www.foodmag.com.au

Research shows that there is a marked difference in the emotional response of consumers to products that offer a deeper sensory experience via packaging and sensory labelling.

Wine producers in Australia should assess whether they could gain a competitive advantage by using Jet Technologies’ Soft Touch film. whether tactile product packaging finishes are chosen by consumers and an increase in product sales. The research focused on their Soft Touch laminating film, with a soft feel and a velvet effect, which is used for both the packaging sector and wine labelling for its ease of embellishing. The research found that with a choice between two products, one of which is covered by the Soft Touch and another film without, it produces 275 per cent more emotional intensity, and 247 per cent more positive emotions in the participants when handling product which is coated with Soft Touch. Seventy percent of the test participants said when making a purchase decision, they would choose the films-coated with Soft Touch, compared to 30 percent who

would choose the ones without. It was also found that 73 per cent of the participants found Soft Touch more enjoyable by touch and 71 per cent by sight. Clearly, the research shows that there is a marked difference in the emotional response of consumers to products that offer a deeper sensory experience via packaging and sensory labelling. While many businesses are very familiar with the concept of visual branding, this is only part of the sensory experience of a brand and attention also needs to be paid to other sensory aspects such as touch and feel. Wine producers in Australia should assess whether they could gain a competitive advantage by using Jet Technologies’ Soft Touch film for their wine labelling.

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NEW PRODUCTS

Drives for pallet conveyor technology KNOWN for its conveyor technology, NORD Drivesystems has now delivered optimally matched, individually configurable and flexible drive technology. According to the company, the introduction of this drive helps to reduce the number of versions and minimises costs for transporting pallets and cage pallets with roller or chain conveyors. For simple pallet conveyor technology applications, NORD has developed an efficient drive combination consisting of an asynchronous motor and a NORDAC BASE frequency inverter. This drive solution is tailored to the requirements of pallet conveyor technology and boasts a robust design for durability. It can be combined with all NORD geared motors and can be extended according to customer specifications. The three-phase asynchronous motor powers up to 1.5 kW and features high overload capacity, solid workmanship and a long service life. The frequency inverters are installed close to the motor and are equipped with an integrated PLC. The freely programmable PLC processes the data from sensors and actuators, provides diagnostic options and communicates with the higher-level controller. A pre-installed software for control, parameterisation and diagnosis is configured for special drive requirements of pallet conveyor technology. The drive units can be integrated into all common bus systems. The AS interface, or I/O interface are especially suitable as a simple and costoriented solution for communication in pallet conveyor technology. A different bus system can be used without any problems if there are more sophisticated requirements.

Cask for beverages and liquid products JET Technologies has launched an innovative cask solution, which is suitable for all types of drinks and offers a superior preservation quality when compared with bag-in-box systems. The cask can be custom printed to maximise branding on the shelf and allow companies to brand their drink products without the need for additional external packaging. The bags are flexible, self-supporting and come in 1.5, 2, 3 or 5 litre sizes with a choice of aseptic options. They allow companies in Australia and New Zealand who sell fruit juice, wine, dairy, olive oil, cold brew coffee and any other liquid or beverage, to maintain the quality of their product beyond a traditional bag-in-box product. The shaped pouch provides a modern look and features a carry handle that also helps with pouring. “We are excited to be offering the Australian and New Zealand drinks marketplace access to a new innovation in the packaging of liquid products," said Daniel Malki, general manager, Jet Technologies. “Our innovative cask can help extend the shelf life of a range of beverages when compared to using bag-in-box system. “Shelf life is extended due to the film structure of the packaging, which provides an important barrier to oxygen and ensures the preservation of the product for a longer period of time. For example, this permits wine to be kept for up to eight weeks in ambient environments after opening, and up to six weeks after opening for many other drinks including fruit juice.” Jet Technologies 02 8399 4999 www.jet-ap.com

50 Food&Beverage Industry News | June/July2018 | www.foodmag.com.au

NORD Drivesystems 03 9394 0500 www.nord.com.au

NEW PRODUCTS

Containers for minimising oil contamination risk OIL contamination is a leading cause of machinery failure. In fact, 90 per cent of machinery failure is due to unclean lubricants. Accidentally mixing even a small amount of different oils together impairs a lubricant's ability to control friction, wear and corrosion, leading to a manufacturer's nightmare. The typical workshop uses numerous types of oils, with differing containers, meaning the risk of cross contamination is high. To eradicate this problem, and improve the cleanliness of oils introduced into machines, a new lubricant-handling solution named iCan has hit the market. Distributed in Australia and New Zealand by Alemlube, the product uses colour coding to allow operators to easily identify the different types of oils being stored. Unlike other products on the market that use coloured lids, iCan's range of containers come with coloured bands for both lid and handle, which can quickly and easily be changed as needed, saving money on freight, storage and obsolete inventory. iCan also comes with backed 'iPouches', which stick onto any iCan drum and give users the ability to store important documents such as material safety data sheets (MSDSs), operating instructions or fluids data sheets. Designed with minimising the risk of contamination in mind, the range also comes with a quick-fill port on the top of each vessel, reducing the chance of foreign particles entering during refilling. A threaded port on the lid provides the option to add a desiccant filter, which filters out any impurities in the oil using an air pump for added protection, while an on/off dispensing switch reduces the incidence of repetitive strain injury (RSI) concerns. Alemlube 02 9938 2999 www.alemlube.com.au

Thermal Flow Meter BUILDING, plant and process engineers responsible for managing large HVAC and other process cooling equipment systems will find the ST75 Series Air/Gas Flow Meter from Fluid Components International (FCI) provides precise direct mass flow measurement for superior accuracy, repeatability and dependability. The energy efficiency of HVAC and other process cooling equipment systems in large commercial buildings, manufacturing plants and industrial processes relies on precision air flow metering. The meter features an advanced solid-state thermal dispersion mass flow sensing element for years of accurate, trouble-free service measuring air flow in chiller systems and duct work. The ST75 Flow Meter operates over a wide air flow range that also includes mixed gas environments from 0.07 to 950 NCMH, depending on line size. For variable demand cycles due to weather or production requirements, the ST75 meter is factory preset to 100:1 turndowns. With built-in process temperature compensation for accuracy, the precision meter maintains consistent performance in high temperature climates and rugged plant environments. It features highly dependable accuracy to Âą1 per cent of reading with Âą0.5 per cent repeatability in line sizes from 6mm to 51mm. The deviceâ&#x20AC;&#x2122;s precision flow element has a no-moving parts design, which employs platinum RTD sensors embedded in equal mass thermowells with its microprocessor electronics calibrated to laboratory standards for air and a variety of other gases. This no-moving parts design provides extra reliability where process safety is a concern. Ideal for crowded equipment areas in HVAC mechanical rooms, or on the factory floor, the compact ST75 model comes in a choice of either

inline- or insertion-mounting configurations and features remotemounting capabilities for hazardous plant environments. The model ST75AV features a built-in Vortab flow conditioner where lack of pipe straight-run is a potential issue. The transmitter, which includes a full digital display, can be mounted up to 15m away from its thermal mass flow sensor in piping or ductwork and connected via two 0.50-inch FNPT or M conduit connections. AMS Instrumentation & Calibration 03 9017 8225 www.ams-ic.com.au

www.foodmag.com.au | June/July 2018 | Food&Beverage Industry News 51

NEW PRODUCTS

Condition monitoring systems with real-time maintenance IN combination with accelerometers, the diagnostic electronics of ifm's series of VSE monitoring systems can be used for vibration monitoring and condition-based maintenance of machines and installations. Rotational unbalances, bearing and gear conditions can be monitored, which helps to prevent machine overload or unexpected downtime. ifm's diagnostic amplifiers allow users to continuously and simultaneously analyse and evaluate the signals of up to four accelerometers. The unit has two switching outputs; one can be used for the pre-alarm and the other for the main alarm. The pre-alarm allows the user to schedule and perform maintenance actions during regular operation breaks, while the main alarm signifies that a critical machine state is reached; the switching signal can then be used for system shutdown. Alternatively, the user can configure one of the outputs as an analogue output to monitor overall vibration (the two analogue inputs can be used to monitor further parameters such as speed or temperature). The unit features an onboard, time-stamped memory to store the trend history of all diagnostic characteristics. The company offers free parameter-setting software for configuration of the diagnostic electronics. There are five diagnostic amplifiers; the most common diagnostic amplifier is the VSE100; this differs from sister product, the VSE002 amplifier, in that it has an extra eight solid-state outputs that can be switched for each of the accelerometers, so it is possible to have a hard output on ‘warning’ and ‘damage level’ for every accelerometer. In addition to the high functions of the previous units, there are three more units that are specifically developed to interface directly with the big three programmable logic controller (PLC) brands, which

includes the VSE150 with Profinet interface, VSE151 with Ethernet IP interface, and finally the VSE153 with Modbus TCP interface. With the right module, and the addition of a downloaded add-on instruction (i.e. GSD, EDS), any of the diagnostic functions that are programmed into the amplifier will be available to the PLC to which it is networke. Ifm efector +61 (1300) 365088 https://www.ifm.com/au/en

XTS Hygenic eases use, sets new standards XTS Hygienic, the stainless-steel version of the eXtended Transport System from Beckhoff, opens up a spectrum of new applications in the primary food and pharmaceutical industries and for processing and filling liquids. Enabling optimal cleanability with the high protection rating of IP69K, good chemical resistance and without any hidden corners, edges or undercuts, the version in Hygienic Design offers a lot of potential for innovation in these industries. The XTS replaces mechanics with software functionality to allow for a high degree of design freedom in realising new machine concepts. With the XTS, machines can be set up more compactly, at a lighter weight and with less wiring. In addition, compared to conventional solutions, the systems are much more flexible, the processes quicker and maintenance needs lower. With the XTS Hygienic, the routine cleaning tasks along with those for product switchover can be performed more quickly. The XTS Hygienic was developed in close co-operation with the European Hygienic Engineering & Design Group (EHEDG). As a result, it meets all the requirements for system certification according to EL Class I AUX. The most important properties of this stainless-steel version include the high IP69K protection class, which guarantees the highest-possible degree of protection against ingress of dust and water. The mechanical components used in the XTS are made of V4A stainless steel, while the seals and covers consist of resistant plastic materials.

52 Food&Beverage Industry News | June/July2018 | www.foodmag.com.au

In addition, all the joints between the individual components are protected against the ingress of dirt and liquid by a high-quality, elastic joint seal. Once installed, the XTS components form an even, smooth surface together which also make the machine accessible and easy to clean. Beckhoff (02) 8069 2333 https://www.beckhoff.com.au

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MEGATRANS2018

MEGATRANS2018 Wrap Up The inaugural MEGATRANS2018 held in Melbourne from 10 – 12 May, brought together Australia’s supply chain and logistics industry under one roof for the first time.

sed by many businesses as an opportunity to launch new products, communicate with others in the industry and to network with delegates and exhibitors alike, the first-ever MEGATRANS2018 was hailed as a great success for the industry. Attended by senior leaders, decision makers and business owners, this was the first time in Australia where the premier freight, transport, logistics and supply chain management organisations could be found together under one roof. It was a rare opportunity for all modes of transport and logistics to get together and discuss common concerns such as productivity, safety and efficiency. MEGATRANS is now firmly placed as a must-attend networking event in the logistics and supply chain events calendar.

Ministerial breakfast briefing To mark the official beginning of the show, MEGATRANS2018 hosted a breakfast briefing where business leaders, influencers and government officials came together to discuss the latest developments and opportunities for logistics and transport in Australia. Kicking off the discussion was Luke Donnellan MP, Victorian Minister for Ports, Roads and Road Safety. Commended for his commitment to the logistics industry and the greater community, Donnellan offered his vision for the future of freight and logistics in Victoria. He congratulated delegates for their hard work in establishing Victoria as the freight capital of Australia and spoke of the significant investments that the Government will be delivering in rail, ports and infrastructure. These include $4.3 million to better roads in Victoria and $500,000 to review truck licences in order to keep heavy vehicle driving as an attractive career option.

Raising the profile A common theme across the three days was the need to raise the profile of the industry and the contribution it

MEGATRANS is now firmly placed as a must-attend networking event in the logistics and supply chain events calendar. has to GDP and the community. This was stressed by Michael Kilgraff, CEO of the Australian Logistics Council (ALC). “People don’t understand how their food gets there. It’s important for us to have these kinds of conversations with consumers and policy makers about how our industry works,” Kilgraff said. Kilgraff spoke of Australia’s growing population and informed there is a need to build a city the size of Canberra every year to deal with the projected increase in population and that this will place a huge task on our freight and logistics networks. Efficient supply chains create efficient economies and Kilgraff spoke of the importance of engaging with consumers, policy makers and industry to create a productive and efficient freight network.

An ageing fleet The influence of technology and what that means for Australia’s fleets was discussed. With Tony McMullan, CEO of the Truck Industry Council, presenting the case for a fleet refresh in Australia. He informed delegates that the average age of a truck in Australia is 14.9 years and fleets are getting older each year. According to

54 Food&Beverage Industry News | June/July 2018 | www.foodmag.com.au

McMullan, current fleets are not as safe, environmentally friendly, nor productive as they could be. He referenced a study from Monash University which found that 104 lives could be saved if more advanced technological safety systems were implemented into fleets. He also found that a failure to modernise fleets and to introduce technology will have an impact on the industry’s ability to realise these safety advances.

Freight and liveability Caryn Anderson, executive general manager, strategy and business development for the Port of Melbourne spoke of the need to better integrate all modes of the supply chain. The Australian logistics industry accounts for 8.6 per cent of GDP and contributed $131.6 billion to the Australian economy in 2013. According to Caryn, freight drives the liveability of a city and with Australia’s projected growth it is more important than ever that all aspects of the supply chain work together.

Networking opportunities As the entire industry gathered in one place, many businesses used the opportunity to showcase their latest

products and developments as well as to engage with potential business partners and suppliers. Feedback echoed by all delegates and exhibitors alike was that MEGATRANS is a well-needed event for the Australian logistics and supply chain industry. A common message was that having the entire industry in one location for three days presented networking opportunities that have never been realised in the industry before. For sensor, networking and control systems supplier, ifm, the show was a great chance to connect with the right people. “This is different to any other show we have exhibited in that it is specific and targeted. The delegates are the right people who want to know how they can improve their processes,” Glenn Thornton, national product and brand manager at ifm said. Commenting on the success of the event, Simon Coburn, show director said: “It has been great to hear all the feedback from the industry and to realise that this was a much-needed event for the logistics and supply chain sector. We look forward to working with you all on the next MEGATRANS event.”

Product life cycles keep getting shorter. Products and packaging get more complex. Supply chains and customers intensify their demands. Whether you build, buy or implement packaging machinery, you need a way to react as quickly as possible. Rexroth, your expert partner for automation in packaging processes, provides the flexible system solutions you need. Our technologies and efficient engineering tools enable more productive machines, faster changeovers, reduced footprints, and peace of mind. You can even achieve small production runs easily and economically. Experience for yourself how we can create an ingenious solution for your application.

WE MOVE. YOU WIN. Bosch Rexroth Pty Ltd Tel: 1800 REXROTH Email: info@boschrexroth.com.