NOVEMBER 2020
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NOVEMBER 2020
Changing your sails: How Twisted Healthy Treats stayed afloat and grew
PLUS: Cold chain | Security and plant upgrade | AIP
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CEO: John Murphy Publisher: Christine Clancy Group Managing Editor (Northern):
Taking a chance pays off for healthy treat manufacturer
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Copyright Food & Beverage Industry News is owned by Prime Creative Media and published by John Murphy. All material in Food & Beverage Industry News is copyright and no part may be reproduced or copied in any form or by any means (graphic, electronic or mechanical including information and retrieval systems) without written permission of the publisher. The Editor welcomes contributions but reserves the right to accept or reject any material. While every effort has been made to ensure the accuracy of information, Prime Creative Media will not accept responsibility for errors or omissions or for any consequences arising from reliance on information published. The opinions expressed in Food & Beverage Industry News are not necessarily the opinions of, or endorsed by the publisher unless otherwise stated. © Copyright Prime Creative Media, 2019 Articles All articles submitted for publication become the property of the publisher. The Editor reserves the right to adjust any article to conform with the magazine format. Head Office 11-15 Buckhurst St South Melbourne VIC 3205 Ph: +61 3 9690 8766 enquiries@primecreative.com.au http://www.primecreative.com.au Sydney Office Suite 303, 1-9 Chandos Street Saint Leonards NSW 2065, Australia Ph: (02) 9439 7227
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tarting out as a small to medium enterprise in the food and beverage industry takes a lot of guts. Sure, the rewards can be great, and the idea of working for yourself is one that a lot of people aspire to. But it is a lot of hard work. Getting an enterprise over the line takes tireless energy and a little bit of luck. It also takes a lot of self-belief. Unfortunately, like anything in life, while you can certainly control your aspect of a business, you rarely have control over third parties. This is not lost on Twisted Healthy Treats’ CEO Cass Spies who started her enterprise more than 10 years ago. Like a huge number of these businesses, it is family owned and run from the top, so there is a lot at stake for Spies and her cadre of loyal workers. And it’s the workers who are first to be acknowledged by Spies when she says “without whom…” etc. Spies was the Food & Beverage Industry Awards’ CEO of the Year, and when you read her story on Page 16 of this issue, it doesn’t take much of a leap to see why she earned the accolade. As well as having all the attributes you’d expect from a CEO – driven, focused, open to ideas, etc – she also has something that is sometimes lacking in such enterprises – the ability to change her mind. In this case, it was almost the whole business model. Five years ago, Spies and the business’s other shareholders – her husband and parents – were set to shut up shop having given it a good crack. And as you’ll find out, a little bit of luck came her way. Yet, luck is one thing – deciding to change your business plan and go full steam ahead is another. There are lessons in this for all of us.
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4 Food&Beverage Industry News | November 2020 | www.foodmag.com.au
For the past 18 months-two years, we have run many stories on the Internet of Things and Industry 4.0. While some of the ideas behind these methods have been adopted by forward-thinking companies, the next couple of years are going to be critical in terms of adopting these technologies. It is interesting to read and hear from companies in this space – whether they be manufacturers, suppliers of IoT gear, or even consultancies – that the take up isn’t happening as fast as it should. One of the main stumbling blocks that has become apparent is perceived cost. The reason I say perceived is because the cost isn’t as much as you think it might be. We have a couple of articles in this issue that highlight not only that it doesn’t cost the Earth to start out on your digitalisation journey, but it might even be derogatory to your business if you don’t. There is example after example in the marketplace of companies that have started their digital manufacturing processes in small steps and then increasing said processes incrementally as they need. Not one company has been tempted to turn back the clock. All have seen the benefits. Sure, there is some tweaking here and there, but the message is clear – if your competition is digitising and getting all the benefits of costs savings, better traceability, instant information on product runs and a whole plethora of information – they are going to be ahead of the game. Not only in terms of the information being generated, but also placing protocols and procedures that are going to save them time and money. Have a great month.
CONTENTS INSIDE
6 NEWS
16
16 MEET THE MANUFACTURER Twisted Healthy Treats and how it overcame hardship to become a great success. 20 PLANT AND MACHINERY Godden Foods and its new refrigeration system. 22 AUTOMATION
24
Bürkert on fast-tracking your digital journey. 24 AUTOMATION AND SECURITY APS talks about how its relationship with Siemens will benefit the food and beverage manufacturing sector. 26 CHAINS Rusty chains on a conveyor belt can be a thing of the past. 28 AUSTRALIAN FOOD COLD CHAIN COUNCIL The AFCCC is starting to make waves in the cold chain supply. 30 MOTORS AND DRIVES
26
30
A new easy-to-install motor controller can increase the diagnostics capabilities of roller conveyor systems. 32 AFGC The AFGC is positive about the road ahead for the food and beverage processing and manufacturing sectors. 35 AIP
32
36 MARKETWATCH 37 DAIRY REPORT 38 NEW PRODUCTS
www.foodmag.com.au | November 2020 | Food&Beverage Industry News 5
NEWS
Converting wine leftovers into biofuel I
t’s one of the nation’s biggest food waste issues, but a CQUniversity researcher hopes leftovers from Australian wine production can help power a cleaner future. With 1.3 billion litres of wine produced in Australia every year, the industry also creates 350 kilotonnes of leftover skins and seeds, known as grape marc or pomace. According to the CSIRO, it’s the biggest food loss stream in Australian horticulture. However, CQUniversity mechanical engineering academic, Dr Heena Panchasara, has big plans for diverting it from landfill, and into green energy. Panchasara shared her progress on CQUniversity’s new product IMPACT, exploring groundbreaking research projects and their real-world impact. “Wineries don’t know what to do with this waste, it just goes into the
landfill and pollutes the land,” she said. “With the amount of grape marc produced, there is a lot of potential here, but the challenge is not just producing the fuel, it’s also to have a sustainable waste management.” Panchasara’s research builds on other research projects to create grapeseed oil from wine waste, but she said that process still created considerable waste, as skins and stems weren’t used. “What I am looking at is using the stems, and the skins, and every bit of the waste, removing the dirt from it, and converting it to useful biofuel, it is challenging but I think we can do it,” she said. Panchasara, who is co-director of CQUniversity’s Clean Energy Academy, said the project partners with the Australian wine industry and other CQU researchers, and utilises
reactor technology and laboratories at the Rockhampton North campus. While COVID-19 has delayed process testing, Panchasara said the next 12 months will see a pilot biofuel product. “We also have the technology to convert that waste into electricity (a project that has recently been kicked off with an industry partner), or to create biodiesel or even automotive engine fuel,” she said. Panchasara said she would love to see a future in the wine industry where wineries had on-site waste conversion plants, to power their facilities and even fuel their tour buses. “I am picturing the side of the bus showing the process, and promoting that it’s powered by wine waste – education would be such an important part of this process,” she said.
Panchasara’s research builds on projects that are looking to create grapeseed oil from wine waste.
CUB wins innovation gong C
arlton & United Breweries (CUB) has been named one of Australia’s most innovative companies for the second straight year. The AFR BOSS Most Innovative
Companies List 2020 acknowledged CUB for developing and bringing to market the Lexington Hill Cocktail Club, which has sold more than 2.2 million cocktails since it was launched.
The Lexington Cocktail Club has turned out to be a winner for CUB. 6 Food&Beverage Industry News | November 2020 | www.foodmag.com.au
CUB was again named the fourth most innovative manufacturing and consumer goods company in Australia, as well as being the highestranked major beverages company that was mentioned on the list.
“Lexington Hill on-tap cocktails offer consumers in venues a highquality and consistent drink prepared much quicker than it takes to make regular cocktails. This helps reduce long queues while giving cocktail lovers a...more consistent espresso martini, margarita or sangria,” said CUB’s director, insights and innovation, Adam Murphy. “CUB drew on its 100-plus years of giving consumers the freshest and best draught experience when developing Lexington Hill. We’re thrilled this innovation to reduce barriers and allow new consumers to explore the cocktail culture has ben recognised by the judges.” Lexington Hill also includes a takeaway bottled range in its portfolio. This award follows last year’s AFR BOSS Most Innovative Companies recognition for Carlton Zero, which was a beverage aimed at the Australian non-alcholic beer market.
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NEWS
Prawns no longer over fished A new report from the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) has delivered generally positive news, with no stocks classified as subject to overfishing in fisheries solely managed by the Australian Government. The ABARES Fishery status reports provide an annual, independent assessment of the performance of these fisheries. ABARES executive director, Dr Steve Hatfield-Dodds, said the latest Fishery status reports 2020 indicated Commonwealth fisheries continue to be well-managed, and subject to a range of management and monitoring measures to ensure their sustainability. “Of the 96 fish stocks assessed, 66 were not overfished and not subject to overfishing,” Hatfield-Dodds said. “The reports reflect a generally stable trend of stock status, with only eight stocks changing status from last year. “The status of redleg banana
Australia’s fisheries are being well managed according to the report. prawns in the Northern Prawn Fishery and brown tiger prawns in the Torres Strait Prawn Fishery both improved this year, and both stocks are now considered not overfished and not subject to overfishing. “In contrast, three jointly managed stocks have gone the other way. This includes striped marlin in the Eastern Tuna and Billfish Fishery, which is now classified as overfished, and albacore and bigeye
tuna in the Western Tuna and Billfish Fishery, which are now classified as subject to overfishing. Australia is working with the other fishing nations of the Western and Central Pacific Fisheries Commission and the Indian Ocean Tuna Commission to try to improve the status of these stocks. However, a number of stocks in these fisheries remain classified as overfished and the Australian Fisheries Management Authority
continues to work with stakeholders on strategies for rebuilding these stocks. “The reports also look at the economic performance of fisheries managed by the Australian Government, with $437 million generated in gross value of production (GVP) in 2018–19. This represents 24 per cent of the $1.79 billion GVP of Australia’s total wild-capture fisheries,” said Hatfield-Dodds.
David McNeil appointed as co-chair of traceability group D
David McNeil’s recent focus has been on supply chain execution.
avid McNeil from InfraBuild and the Australian Logistics Council joins Ram Akella from Woolworths as a co-chair of the multi-sector Traceability Advisory Group. The National GS1 Traceability Advisory Group (NGTAG) was established earlier this year by GS1 Australia, the global not-for-profit organisation, which is a provider of standards and solutions. NGTAG comprises more than 80 senior-level members from industry and government, addressing traceability linkages across supply chains to ensure Australia maintains and builds global competitiveness, sustainable economic growth and positive socio-economic outcomes and opportunities. “I am honoured to be appointed
8 Food&Beverage Industry News | November 2020 | www.foodmag.com.au
as a co-chair of the National GS1 Traceability Advisory Group. The group is uniquely placed to inform GS1 Australia on the requirements of industry and government for traceability standards, and to co-define a roadmap for implementing end-to-end traceability and trade modernisation in Australia in the most efficient and economic manner possible,” McNeil said. “I look forward to leveraging the knowledge and experience of the network of companies, associations and government departments that represent the NGTAG, as well as working closely with Ram Akella from Woolworths as my counterpart.” McNeil’s recent focus has been on supply chain execution. In conjunction with the Australian
Logistics Council and GS1, he has implemented the GS1 Transport Instruction and Transport Status messages to facilitate the efficient transfer of delivery information between InfraBuild and its logistics partners. He is also a member of GS1 Australia’s corporate board. As a co-chair of NGTAG, McNeil will focus his representation on the transport and logistics sector, integrating traceability processes within transport, a critical part of end-toend traceability that is required for all product types and sectors. While this appointment is effective immediately, prior commitments will mean that McNeil will have limited participation until the new calendar year.
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NEWS
Incubation fund for Tasmanian food and beverage industry P ure Foods Tasmania is establishing an incubation fund to assist start-up partner companies operating in the Tasmanian premium food and beverage industry. It aims to provide both financial support and investment, coupled with strategic advice and guidance. PFT will identify and nurture businesses that PFT believes have potential to become high growth businesses, similar to Woodbridge Smokehouse, Tasmanian Pate or Daly Potato Company. Following a detailed due diligence period, partner companies that meet PFT’s assessment criteria
will receive financial support through equity investments, coupled with strategic advice from PFT’s Board and management team. The fund aims to commercialise products from partner companies that have the ability to be produced on a scale to serve customers nationally and/or internationally. Growth can be accelerated by leveraging PFT’s established customer and distribution network, and thereby providing opportunities and benefits to PFT and the partner companies. “We are very excited to have established the incubation fund as it will provide the company with
opportunities to identify, invest in and nurture potential high growth Tasmanian start-ups, operating in the food and beverage market,” said PFT managing director, Michael Cooper. “By providing partner companies with strategic advice, PFT aims to not only accelerate growth, but gain a solid understanding of the potential of the businesses, thereby opening opportunities for the company to increase its holdings in partner companies through increased equity investments. We look forward to establishing the investment fund in the near future and updating the market on our
first investments.” PFT aims to work alongside the board and management of partner companies to develop proprietary products and unique IP, before formulating and implementing well-defined commercialisation strategies, based on PFT’s track record and industry knowledge. PFT aims to make initial investments into approved partner companies, assess potential growth strategies, and based on successful implementation, milestones and mutually agreed outcomes, to potentially acquire a holding in, or entire ownership of, successful partner companies.
Natural food colours market to increase markedly by 2027 N Microencapsulation can be used in sugar confectionary like lollies.
atural food colours are the ingredients prepared from the plant sources and do not contain any artificial pigments. Natural food colours are used to impart colour and enhance the texture of the food by balancing the colour loss due to environmental factors. It is also used to decorate the food such as salads, candies, desserts, cake, etc. Carotenoids, curcumin, anthocyanin, and carmine are some of the types of natural food colours. They also provide stability and are easy to use. The global natural food colours market is estimated to account for around $2.27 billion in terms of value in the year 2019 and it is predicted to grow at a CAGR of 6.8 per cent during the forecast period (2020-2027) states Coherent Market Insights. Increasing government support for promoting the use of natural and organic food ingredients is estimated to have a positive impact on the market of natural food colours. For instance, regulatory bodies such
10 Food&Beverage Industry News | November 2020 | www.foodmag.com.au
as the FDA in North America and EFSA in Europe are implementing strict rules and regulations regarding the use of ingredients in food products and their proper labelling to promote organic/natural foods. This is expected to foster the market growth of natural food colour. Increasing adoption of advanced technologies such as microencapsulation in order to produce light-stable curcumin food colours is projected to open up avenues to the market. For example, soft drinks, sugar confectionery, and dressings are suitable for food products where microencapsulation can be used. Hence, emerging advanced technologies for preserving the functionality of food colours will favour the market growth over the forecast period. Environmental factors such as light, temperature, and adverse pH degrades colours and other functional properties of the natural food colours. For example, beetroot has low heat stability, anthocyanin degrades as a brown precipitate in food and curcumin is
highly prone to photo bleaching. This is expected to restrict the adoption of natural food colours. On the basis of the product type, the Carotenoid segment dominated the global natural food colours market in 2019 with a 31.5 per cent of market share in terms of value, followed by anthocyanin and others. On the basis of the application, the others (pet food etc.) segment dominated the global footwear sole material market in 2019 with a 27.7 per cent of market share in terms of value, followed by beverages and packaged food. As per Coherent Market Insight’s findings, rising demand for purple sweet potato and black carrot for the primary source of anthocyaninbased pink/violet shades in food and beverage is expected to be a major trend in the market. Also, increasing the focus of the manufacturer to increase the availability of raw materials for natural food colours such as manufacturers are adopting red cabbage and purple corn for natural food colour.
NEWS
SPC takes majority stake in The Kuisine A
ustralian agribusiness SPC has made an investment into The Kuisine Company by taking a majority equity stake in Australian manufacturer of frozen ready meals and finger foods. The company is based in Emu Plains, NSW and employs more than 100 staff members. Over the last 20 years, Kuisine has grown to be one of Australia’s leading producers of high-quality prepared meals and finger foods with a range of clients including major supermarket chains, health services, Meals on Wheels and other food service clients. The acquisition also includes Kuisine’s wholly owned brands, The Good Meal Co, The Gluten Free Meal Co, and Simply Special. Jitesh Gohil will continue as general manager and a director of the Kuisine business. “By acquiring Kuisine we are
Australian iconic brand SPC has invested in The Kuisine Company.
continuing to grow our health and aged care sector offering, which already has a strong base through our existing ProVital brand. We were impressed with Kuisine’s success and see a great opportunity to rapidly expand both businesses,” SPC CEO, Robert Giles, said.
“The scale and scope of Kuisine’s capabilities means that we can expand our offering to include frozen foods, finger foods and ready-made meals. It’s an exciting time for both businesses. This announcement is in line with our strategy to become a
global agribusiness, which we are continuing following our acquisition of Pomlife earlier this year and joint venture with Döhler. “It will be manufacturers and innovators who will help drive Australia’s post-COVID economic recovery. We must all take the opportunity to support those businesses so they can become leading brands that service not only the Australian population but the world.” “We are proud to have built such a high-quality, family-owned business that supplies customers throughout Australia,” said Pran Gohil, director of Kuisine Co. “SPC is an ideal partner to drive the business forward into the next level of growth stage to deliver highquality food to people in Australia and the rest of the world. We are looking forward to supporting SPC through this transition.”
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www.foodmag.com.au | November 2020 | Food&Beverage Industry News 11
NEWS
Lyre gets $16 million in seed funding L yre’s Non-Alcoholic Spirit has announced the closure of seed round funding, securing a total of $16 million in growth capital, the most material investment on record to date for the category. This business injection accelerates Lyre’s vision of changing the way the world drinks and provides ongoing investment for core product growth, category innovation and new market expansion. The non-alcoholic category is rapidly emerging with triple-digit growth experienced globally in the last 12 months driven by health, lifestyle and responsibility factors across all age groups. Despite a challenging 2020,
Lyre’s has focused on the direct-toconsumer segment and delivered over 400 per cent monthly recurring revenue growth since January, exceeding all forecasts the company had previously set. The fast-growing category is being matched by fast-paced innovation with Lyre’s creating 13 products since launch and many more slated for the next six months. “Our business anticipates and matches the trends of the consumer and culture and our current product innovation is being developed to match alcohol spirit flavours and styles. “Lyre’s was created to shake up the drinks category and put the choice back into the consumer’s social occasion to drink freely,”
Mark Livings, Lyre’s CEO and co-founder said. “The recognition from the multiple, respected, international award competitions shows we clearly have something that is resonating. “The next year demarcates our business evolution from a start-up to a true multi-national beverage company, with manufacturing in multiple, global locations, compliance for new markets and continued recruitment firmly at the top of our task list. “We’ll need all aspects of our plan to come together, delivered by a great team of people with the Lyre’s esprit de corps to grow our leadership position in the non-alcoholic spirits category.”
The seed round was structured to be completed in three tranches over the course of an initial 12-month trading period, a necessary process to ensure the business was sufficiently capitalised to support what Livings describes as “planned, lightningfast growth with controlled capital consumption”. Participants in the seed round include VRD Investment, Doehler Ventures, DLF Venture and Maropost Ventures with a number of European, American and Australasian family offices and HNWI also participating. An Australian-developed brand, Lyre’s is available in more than 30 markets, with increased presence in both on and off-prem venues.
COVID-19 to add extra $2.27bn to milk sales in China in 2020 M
ilk, the largest dairy category in China, is predicted to be valued at $38.1billion in 2020, $2.27bn greater than the previously projected preCOVID value. This translates to an increase on expected volumes from 9.6 billion kg to 10 billion kg in 2020 alone, primarily due to health concerns relating to COVID-19, according to GlobalData, a data and analytics company. “China invested heavily in modernising its dairy industry for the past several years and officially promotes milk consumption on the basis of its health benefits. Refrigeration has become increasingly ubiquitous in China, meaning that modern consumers have the space to store milk and other dairy products for longer,” Ryan Whittaker, consumer analyst at GlobalData said. “Milk is often positioned as a means to get more protein into their diet, and to help build and maintain
Chinese consumers are buying more milk than ever before according to the GlobalData report.
the body’s immune system. “Of course, the COVID-19 pandemic has forced Chinese consumers to focus on their health, prompting a surge in demand.” GlobalData has forecasted annual milk sales in China, which were valued at $34.3bn in 2019, to increase gradually to $41bn in 2023.
12 Food&Beverage Industry News | November 2020 | www.foodmag.com.au
Following COVID-19-related disruptions, the projected figure is now closer to $44bn, with the largest jump in sales occurring in 2020. GlobalData’s most recent consumer survey found that 47 per cent of Chinese consumers consider themselves “extremely concerned” about their health, while a further 52
per cent said that they were “quite” or “slightly concerned” – two per cent of respondents said that they were “not concerned” about their health at all. When asked about white milk buying habits, 51 per cent of respondents said that they were buying more than before, in addition to the 34 per cent who said they were buying the same as before. “The impact of COVID-19 on cooking at home should not be overlooked. During China’s lockdown, consumers were forced to remain at home and cook for themselves far more than before, and in doing so, ate out and on-the-go much less than before,” Whittaker said. “Milk offers a simple way to top-up nutrition at home with minimal effort while helping China’s dairy industry. Clearly, the milk category will do well during the pandemic, and attitudes towards health, supported by the government’s pro-dairy campaigns, are likely behind it.”
NEWS
More food, less waste for farmers T
he Food and Agribusiness Growth Centre has released new data on Australia’s food waste. The data shows the figures for food loss on farms have decreased. This new information reveals that while the numbers for fruit loss are up, the percentage of vegetables lost have come down. Broad acre crop loss has also decreased, due to less production in the drought. These findings are part of the Growth Centre’s National Food Waste Feasibility Study. This phase of the Feasibility Study is collecting the most recent data to update the National Food Waste Baseline released by the Australian Government in 2019. This will enable identification of sector hotspots with high waste profiles and direct focussed interventions to drive the biggest improvements. “Having an accurate picture of where food waste is coming from and where it is going is critical. Knowing whether it is left in the
Food loss on farms is decreasing but fruit losses have increased. paddock by farmers or thrown in the bin by households, is important in developing initiatives to reduce overall waste and capture nutritional value,” said Max Van Biene, head of strategy at Edge Environment. As an independent organisation supporting the implementation of the Australian Government’s National Food Waste Strategy, the Growth Centre’s Feasibility Study has been taking a deep dive into the causes, nature, scale and impacts of food loss
and waste in Australia. The Feasibility Study was identified in the Growth Centre’s Roadmap for Reducing Australia’s Food Waste by Half by 2030, as a critical first step in reducing Australia’s food waste. Australian consultancy, Edge Environment, was appointed by the Growth Centre as the lead firm on the project, alongside WRAP, 3Keel and Lifecycles. This international consortium, with globally recognised
experts, is testing Australia’s commitment to halve food waste by 2030 and the actions required to achieve this target. “The National Food Waste Strategy Feasibility Study will provide the insights required to set an industry-led agenda to prioritise and focus efforts to maximise the benefits of halving Australia’s food waste by 2030,” said Dr Mirjana Prica, managing director of the Food and Agribusiness Growth Centre.
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www.foodmag.com.au | November 2020 | Food&Beverage Industry News 13
NEWS
Oats could help reduce inflammation after radiation treatment O ats could be the new superfood for cancer patients as international research shows a diet rich in fibre
Research into oats can provide insights into its medicinal benefits.
could reduce radiation-induced gut inflammation. Conducted by the University of Gothenburg, Lund University and the University of South Australia, the pre-clinical study found that dietary oat bran can offset chronic gastrointestinal damage caused by radiotherapy, contradicting long-held clinical recommendations. Gastroenterology and oncology researcher, UniSA’s Dr Andrea Stringer, said the research provides critical new insights for radiology patients. “Cancer patients are often advised to follow a restricted fibre diet. This is because a diet high in fibre is believed to exacerbate bloating and
diarrhoea – both common side effects of radiotherapy,” Stringer said. “Yet, this advice is not unequivocally evidence-based, with insufficient fibre potentially being counterproductive and exacerbating gastrointestinal toxicity. “Our study compared the effects of high-fibre and no-fibre diets, finding that a fibre-free diet is actually worse for subjects undergoing radiotherapy treatment. “A diet without fibre generates inflammatory cytokines, which are present for a long time following radiation, resulting in increased inflammation of the digestive system. “Conversely, a fibre-rich diet decreases the presence of cytokines to reduce radiation-induced
inflammation, both in the short and the long term.” Intestinal issues following radiotherapy are problematic for many cancer survivors. “In Europe, approximately one million pelvic-organ cancer survivors suffer from compromised intestinal health due to radiationinduced gastrointestinal symptoms,” Stringer said. “This is also commonplace in Australia and around the world with no immediate cure or effective treatment. “If we can prevent some of inflammation resulting from radiation simply by adjusting dietary fibre levels, we could improve long-term, and possibly life-long, intestinal health among cancer survivors.”
Aussie tea brand gets gold at UK competition A ustralian craft-tea brand, East Forged has been awarded three gongs in the DB & SB Autumn Blind Tasting competition, run by UK-based publications The Drinks Business and The Spirits Business. While the Green Tea & Pitaya and White Tea & Calamansi flavours each earned a Silver Medal, it was the Black Tea & Yuzu that impressed the judges and earned the highest gold medal recognition. “It’s exciting to see a small business like ours on the world stage and we’re incredibly honoured to have received three out of the five awards. “We’re particularly proud of the Black Tea recognition as it’s a local Queensland-grown tea,” said East Forged co-founder,
Tania Stacey. The low and no-alcohol drinks category is booming at the moment, and while some brands didn’t quite hit the mark by “putting in far too much extra flavour that’s not needed”, the judges acknowledged that there is a lot of innovation and creativity in the industry and “some really exciting things being launched that consumers should look out for”. The judges’ tasting notes included: • Gold – Black Tea & Yuzu: a) sweet black tea with a hint of citrus. Smells exactly as I would expect b) the tea fades out quite quickly with no note to pick up but very refreshing c) black tea, grapefruit peel d) black tea, bitter and earthy but with good balance, late citrus/yuzu.
14 Food&Beverage Industry News | November 2020 | www.foodmag.com.au
East Forged got three awards at the Autumn Blind Tasting competition.
• Silver – Green Tea & Pitaya: a) somewhat acidic, bucolic b) watery kombucha, but very fresh notes c) weird, burnt, green tea, quite funky d) earthy, damp, burnt, later greenness and bitterness rescues it.
• Silver – White Tea & Calamansi: a) delicate white tea with floral notes b) floral notes and refreshing gentle bitterness c) cold builders tea, hints of vanilla and sugar d) good tea depth, hint of citrus, orange, nice late bitterness.
NEWS
Food authenticity market riding coattails of food safety and clean label A new study by a SOMARcertified market research and consulting firm states that the food authenticity market will grow at a steady pace through 2030. The report, from Future Market Insights, shows adoption will be driven by growing consumer focus on food safety and growing clean label trend. The study tracks the food authenticity market in more than 20 countries. According to the study, in recent years, access to pure and adulterantfree foods has come under jeopardy. Widespread prevalence of food adulteration, mislabeling and undisclosed ingredient details have generated a furore among healthconscious consumers as well as healthcare providers.
On an average, approximately 57 per cent of the global population suffers from morbidities inflicted due to consumption of sub-standard and contaminated foodstuffs. Also, nearly 1/4th of the world’s food supply is adulterated annually. Realising this, countries have taken proactive steps to mitigate the adverse effects of food adulteration. Increasing consciousness among consumers has elevated the need for introducing clean-label, organicbased and naturally derived foods. Based on these developments, the global food authenticity market is set to experience an upsurge in the coming years. Takeaways from the Food Authenticity Market Report include: • T he global food authenticity
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market is likely to expand at a noteworthy CAGR in the forthcoming decade. Asia-Pacific is to emerge as the fastest expanding region for food authenticity testing, attributed to a large population base. H igh incidence of meat consumption to provide traction to meat speciation authenticity tests. E conomically Motivated Adulterations (EMA) will compel governments to impose tough legislations to keep food adulteration in check. PCR-based tests are expected to retain their popularity due to quick delivery of test results. P rocessed foods testing is expected to acquire surging popularity due to high demand.
Consumers are increasingly wanting labels to tell them if a food is organically based and naturally derived.
Thomas Foods expands business Thomas Foods is rebranding its wholesale and food service business, according to CEO Darren Thomas (standing, right).
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ustralian 100 per cent family-owned Thomas Foods International is expanding its national wholesale and food service business. With its Queensland operations
set to move into a larger facility in October, Thomas Foods is looking to grow its paddock-to-plate offering across Australia. It comes as the company rebrands its domestic wholesale and food
service business, previously known as Holco and Country Fresh, under the Thomas Foods name. “We see a positive future and strong growth potential within the wholesale and food service sectors,” Thomas Foods CEO Darren Thomas said. “In line with this outook, we are expanding our Queensland operations, which had outgrown its original site and at the same time rebranding the business. “Holco and Country Fresh have enjoyed a long and successful history within the industry.” While the company wants to continue to grow the business now under the single Thomas Foods brand, it remains focussed on providing a high level of personal service and sticking to its family values. The company’s facilities are located in South Australia, Victoria, Queensland, New South Wales, and the Northern Territory.
Thomas Foods general manager commercial, Simon Tamke, said the Queensland operations will move from its existing site to a 2300sqm facility on Lytton Road at Morningside. “The move will give us a fivefold increase in capacity to service the Queensland market and follows similar investments in our Victorian operations last year,” Tamke said. “We supply a range of products to restaurants, hotels, function centres and resorts right across Australia with our wholesale division servicing butchers and supermarkets. Earlier this year we also expanded our online ordering platform in South Australia and Victoria.” The rebranding of Holco and Country Fresh to Thomas Foods will roll out over the coming weeks with the existing fleet of delivery trucks to be among the first to take on the new look.
www.foodmag.com.au | November 2020 | Food&Beverage Industry News 15
MEET THE MANUFACTURER
Learning to change your sails Cassandra Spies had big dreams when she started Twisted Healthy Treats over a decade ago. Now those dreams are coming to fruition despite the odd bump along the way. Mike Wheeler speaks to the Food & Beverage Industry Awards’ CEO of the Year.
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Twisted Healthy Treats are manufactured locally in Alexandria, Sydney. 16 Food&Beverage Industry News | November 2020 | www.foodmag.com.au
’ve had some incredibly hard and dark times with this business. Terrible times, when I thought we weren’t going to make it.” Cassandra (Cass) Spies is frank when it comes to the ups and downs of business. And why wouldn’t she be? Having taken Twisted Healthy Treats from an idea born one day while shopping in a supermarket, to a company that has product stocked in more the 5,000 school canteens, as well as Coles, Woolworths, and now Costco in the US, it has being an exciting and scary journey. As the name suggests, Twisted Healthy Treats, is aimed at the sweeter end of the food market. Spies specifically went after a customer that wanted an after dinner dessert that not only tasted good but also wasn’t overloaded with calories. Although Spies graduated from UNSW with a degree in food technology, for the first 14 years of her working life she couldn’t have been in an industry more far removed from food processing and manufacturing – corporate finance. “I moved to London after finishing my degree,” she said. “I thought I would be there for two years – living the dream, working holiday and all that. I ended up working and staying in London for nearly 14 years. That was how I grew my career in project management and banking. “I looked at jobs in the food industry in the UK and there were none in the centre of London. Also, you would barely be able to survive on the money those types of jobs were offering. However, it was at the time of the dot.com bubble and there were lots of opportunities for young, hungry Aussies that were prepared to go the extra mile. That’s how I landed in financial services and started running some global financial projects.” Spies said that although the job in the UK was sometimes stressful, she learned a lot of lessons from it. Even today, the skills that she picked up in
MEET THE MANUFACTURER
Cass Spies (centre, standing) knows that surrounding yourself with a good team is key to success. the finance world help her navigate the day-to-day issues that surround her running Twisted. Just over 10 years ago, she and her husband Graeme, with their 18-month-old daughter in tow, and another child on the way, decided to come home to Australia, and thus began an almost accidental career in the food industry. It was time to put to use her food technology degree that had been hold for almost a decade and a half. “When we moved back I thought I was going to be a stay at home mum,” she said. “But what happened was threefold – I was looking for a healthy product to share with my kids and I couldn’t find one. Second, I had always dreamed of having my
"Just as we were considering shutting the business down, the lady at my kids’ school’s canteen asked me if I would sell her some frozen yoghurt cups so she could on sell them to the school children. I dropped off a carton and they sold like hot cakes." own business even through I’d spent all those years working in corporate. Then, as a stay at home mum became a lonely occupation. I was desperate to get back and do something.” It was while she was out food shopping that the idea hit her. “I was a young mum wanting to give my kids a healthy treat but there didn’t seem to be anything suitable. I had seen at that stage that frozen
yoghurt –which is where our roots are and is our most enduring product – was exploding on the west coast of the US.” Spies’ dream was to become the Janine Allis (who founded Boost Juice) of frozen yoghurt. She liked the idea of having retail outlets, and was keen to franchise the business as soon as possible. It was a 50/50 joint venture, with Spies and her husband
having half the business, while her parents’ invested capital made up the other 50 per cent. Soon, they had several stores opened at various Westfield malls. She hired a hungry PR agency from Perth to help spread the word, and soon, like a lot of SMEs starting out, all was rosy – the product was popular so demand was good. However, like a lot of retail outlets, the overheads soon started killing the business. Five years ago, Spies was close to shutting down. Back then, she was philosophical about having to let it go. “We were just about to wrap it up, and we said to ourselves ‘We tried, don’t try and feel too bad about it. It’s not a complete failure and we gave it
www.foodmag.com.au | November 2020 | Food&Beverage Industry News 17
MEET THE MANUFACTURER
a good go’,” she said. “I had all these retail stores that were losing money. I had this weird split business where I had stores that were losing money and a small wholesale range that was starting to take off. But I wasn’t sure if I could see that far into the future to see if that was the business model that would get us there in the end.” A lot of hard work goes into setting up a company and making it a success. As Spies’ retail dream was dying, another aspect that can lead to success stepped in – luck. “Just as we were considering shutting the business down, the lady at my kids’ school’s canteen asked me if I would sell her some frozen yoghurt cups so she could on sell them to the school children,” said Spies. “I dropped off a carton and they sold like hot cakes. I dropped off more the next day and they sold like hotcakes again. She said to me, ‘You need to go out to every school canteen in Australia and sell your product’. Off I went and I got 70 school canteens direct. I went to them and said ‘Hi, I’m Cass, here’s my frozen yoghurt, etc’, and from there we got picked up by distributors. We now supply 5,000 canteens in the country. “Business author Seth Godin talks about a dip – all businesses and entrepreneurs have a dip, what he calls the darkest hour before the dawn – and that was it. If it wasn’t for school canteens we probably wouldn’t be here today.” Then there were issues with supply chain, which are always ongoing. Supply chain is something that is part and parcel of having a business, according to Spies, and there are always issues. “Even today, I had an issue where something hadn’t arrived,” she said. “Supply chain, especially in food, and even more so in manufacturing, is always going to be disrupted. It is just part of business and being flexible in adjusting your sails where needed to find solutions. “Even this industrial action at the wharf is impacting me massively at the moment [as this issue went to print there is an ongoing pay dispute between Port Botany and the Maritime Union of Australia that had yet to be resolved],” she said. “There are certain ingredients – gums – that I use in my product that come from overseas that I can’t get my hands on. I’ve got all these containers ready
to be shipped to the US for Costco and I can’t get them on a boat that is leaving Sydney.” Part of growing any business is being prepared to hold steady when decisions haven’t resulted in the outcome that are wanted and sometimes mistakes are made. Spies said it is important to
18 Food&Beverage Industry News | November 2020 | www.foodmag.com.au
"The growth and insight for myself here was never second guess your intuition when choosing any suppliers to collaborate with. Ensure you share same values and have clear communication – all critical ingredients when expanding your business and all great learning curves."
A lot of hard work went into setting up a food manufacturing company.
MEET THE MANUFACTURER
surround yourself with a good team and reflective insight is critical to recovering from mistakes. One of the biggest learning curves she experienced was when she used a contract manufacturer. “Subcontracting was a stressful experience and in hindsight it really was a big leap of faith to give your brand’s equity to a third party to produce a product you would be happy to put in the marketplace,” she said. “It was a very challenging and costly time, ultimately we had to delete the product and pull it off the market. The growth and insight for myself here was never second guess your intuition when choosing any suppliers to collaborate with. Ensure you share same values and have clear communication – all critical ingredients when expanding your business and all great learning curves.” Spies also has a certain, holistic approach to her business, and those that she deals with who buy her products and who she buys from, have the same attitude. It’s important to her that not only can they help each other grow, but the philosophical side is also something she thinks about before doing business. Take the company that she first sold Twisted Healthy Treats to in bulk. “My first big sale was to Harris Farms,” she said. “They are a beautiful company. They are also a familyowned business. Their beliefs and values align with the kind of company I am trying to create. They took a chance on us years ago and they still one of our best customers.” Spies is also very passionate about building a good team around her. She readily admits that her team is the reason for her success. While she and her husband had the vision to start the company, there have been inspired moments throughout the duration of the company’s life. “Some of the best-selling flavours that we have today came about from the young kids that worked for me in our retail stores,” she said. “The concept of twisted is twisting two flavours together. The bestselling flavour is our watermelon/ mango and that came about from one of the young guys that worked for me for many years as an after-school job. “I am always open to the person who is on the journey with me. What sort of ideas do they have? I don’t know everything. I wouldn’t be in the position I am today if it hadn’t been
The company’s products are turning out to be popular in many households and school canteens. for the team effort and I have these amazing people that believe in my mission along the way.” And it shows in the loyalty of the staff. Both of her main direct reports, general manager Michelle Wright, and logistics, supply chain and production specialist, Kirsty Lewis, have been with her for almost nine years. “They have grown massively with the business in terms of their roles and responsibilities and in terms of the direction the business has ended up taking,” said Spies. One thing you learn from talking to Spies is that there is no absolute key to success. There are certain must-haves when putting together a business plan and having your i’s dotted and t’s crossed. But there is a lot of fickleness in the market, especially so in the FMCGs category. Part of the company’s success has been the
My dream was to have a franchised retail business but that wasn’t what the market was looking for at that point and time. What the market was responding to was taking my product to home and eat it in the comfort of their own home. It is important to be able to pivot as a small business, depending on what that market is looking for. owners knowing when to change their sails and not being too static in terms of what they want to achieve – in other words, it is important to be malleable. “You really need to be nimble and receptive to what the market is looking for at the time,” said Spies. “My dream was to have a franchised retail business but that wasn’t what the market was looking for at that point and time. What the market was responding to was taking my product to home and
eat it in the comfort of their own home. It is important to be able to pivot as a small business, depending on what that market is looking for. “It is a very rewarding job. I never had the sense of worth that I had in any of the corporate jobs I had compared to working at Twisted. I’m incredibly proud and passionate about what we’ve managed to create. It is a really exciting time for the business.” F
www.foodmag.com.au | November 2020 | Food&Beverage Industry News 19
PLANT AND MACHINERY
Keeping cool at Godden Foods in Australia When Godden Foods moved into a new premises, it knew it needed a long-term solution to its cool-store operation. Here’s what the company decided to do.
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he Godden Food Group is a family-owned and operated wholesale food distribution business located at Ormeau just north of Queensland’s Gold Coast. The company supplies a range of frozen, chilled, fresh and dry goods to restaurants, caterers and private homes throughout south-east Queensland and northern New South Wales. In 2019, the lease on the company’s premises came to an end and Jeff Godden, the company’s owner, had to find new premises. Having secured a new home for the business, and also having built a 27,000m3 insulated store, he needed to fit it out with advanced refrigeration equipment, to provide separate rooms for -23°C frozen storage and a chilled area at 2°C-4°C.
The challenge For Godden foods, the key requirements were to have a safe, cost-effective refrigeration system
that would provide sustainable service well into the future. However, Jeff Godden also had another target in mind – he needed the whole project completed to allow him to be fully operational before his initial rent-free period expired.
The GEA solution Scantec Refrigeration in Murarrie, Queensland is a refrigeration company with 25 years’ experience in supplying advanced industrial and commercial plants throughout the region. Stefan Jensen, one of the founders of the company, recommended Godden use a centralised low-charge ammonia refrigeration system with four GEA Grasso V300 reciprocating compressors. Although Jensen knew that this would not be the option with the lowest capital expenditure, he was certain that it was the best longterm system for his customer. The benefit of a centralised low-charge ammonia refrigeration system is that it contains very little ammonia.
20 Food&Beverage Industry News | November 2020 | www.foodmag.com.au
“I knew that this customer would be able to make huge savings on energy costs,” said Jensen. “But when you tell customers that they can reduce their energy usage by two-thirds, sometimes they don’t believe you. But I was able to present evidence from other projects, so the customer went for the idea.” Jensen explained that the big benefit of a centralised low-charge ammonia refrigeration system is that it contains very little ammonia, around four to five times lower than a conventional liquid overfeed system. The presence of high-density liquid refrigerant within the wet suction lines and risers is eliminated. Because pressure drops in wet suction lines are up to 60 times higher than in pure vapour lines, the system runs at lower refrigerant pipeline pressure drops, making it very energy efficient. “This is where most of the energy saving comes from,” he said. The GEA Grasso V300
compressors at the heart of the system were suitable for the job. Scantec chose the GEA machines, partly because they were available quickly, but mainly because of their inherent energy efficiency. “The V300 is an excellent machine and, in my opinion, more efficient than anything else on the market,” said Jensen. “But it’s also one of the very few that does not require water cooling,” he said. “Water cooling typically adds at least $15,000 to the installation cost and is a drain on energy as the water has to be pumped around the system.” Not requiring water cooling further reduces energy consumption and makes the installation “plug-andplay”, reducing the time involved and giving the company the flexibility to take the plant with them should they need to move again in the future.
The outcome The new plant at Godden Foods was commissioned in May 2020,
PLANT AND MACHINERY
The new facility is 27,000m3 in size and includes a chilled area that operates at a temperature range of 2°C-4°C.
"The V300 is an excellent machine and, in my opinion, more efficient than anything else on the market. But it’s also one of the very few that does not require water cooling." coinciding with the start of trading from the new premises. According to Jensen, its Specific Energy Consumption (SEC) is better than anything he’s seen on the market. “With energy savings of around two-thirds compared with an industry-standard, air-cooled HFC-based system, Godden will get the whole cost of the new plant back in eight years well before the expiry of the 15 year lease period,” he
explained. “But if you just consider the marginal additional cost, compared with a freon plant, the payback will be three to four years.” Maintenance costs for the system will be in the region of two per cent of the initial capital cost annually, lower than equivalent freon systems. It is also safe. The operating inventory within the freezer is only 1.5kg of ammonia so, even if there was a catastrophic leak, the concentration of ammonia within the refrigerated space would be only around 100 ppm. The IDLH (Immediate Danger to Life and Health) threshold is 300ppm as a comparison. The result is a new refrigeration plant for Godden foods that is more energy efficient than an equivalent freon system, environmentally sustainable, safe, portable if necessary and, if correctly maintained, will provide 30-40 years of faithful service. F
Jeff Godden needed to make sure he had the latest plant and machinery in his factory. www.foodmag.com.au | November 2020 | Food&Beverage Industry News 21
AUTOMATION
Nothing beats experience Bürkert’s expertise is aimed at supporting food and beverage manufacturers’ digitalisation journey, fast tracking implementation and saving time and money along the way. Here’s how.
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of being limited to only one providers offering. “We are not aligned with just one company, so this allows us to speak to our customers with an impartial objective,” said Orbell. “We therefore consider what our customers are aiming to achieve, and customise a solution that works specifically for them. “Often we find that a customer may be considering bespoke, complicated solutions, but we can bring our varied experience to the table and provide them with several options to help them resolve their challenges. We then
Collaboration is one of the key ingredients when digitising.
22 Food&Beverage Industry News | November 2020 | www.foodmag.com.au
assist to drill down and understand short- and long-term cost advantages and benefits that can be offered for adapting, upgrading or implementing to existing or new applications.” Orbell sees Bürkert’s approach as holistic as he believes some suppliers only offer part of a solution. “A lot of suppliers might be just providing an instrumentation package, but we can take a wholesome look of the entire plant utilities framework and look inside the process to help them develop ‘automation control architecture’ for their site,” he said. “It allows us to bring valves, sensors,
transmitters and controllers together as a complete infrastructure solution. “The way we work with customers is that we use a consultative approach to understand what the customers’ ultimate goals are. Then we put together a packaged solution that supports what they are looking to achieve. “At Bürkert, we talk a lot about decentralised automation and distributed automation – this is how we summarise the way we can communicate with all of the many different levels of automation devices to provide the best performance of processes for our customers.” It’s the collaboration and expertise across the most common digitalisation solutions that Orbell sees as Bürkert’s unique offering. He said a lot of Bürkert’s customers are open to these discussions, often because Orbell and his team consult first and foremost different ideas. He said it helps them build long lasting partnerships with customers. Orbell is also all too aware that there is a lot of trepidation about embracing automation and the potential costs involved, especially with those companies that are concerned about how their legacy equipment can be utilised. Some customers are caught in the dichotomy of realising that they need to adapt to the modern world and changing manufacturing environment, but upgrading plant utilities usually doesn’t equate to big dollars and large capital outlay, said Orbell.
Networks, Technology & Bürkert Expertise
utomation specialist Bürkert has developed and introduced a number of technologies over the past few years that have specifically assisted Australian F&B manufacturers introduce digitalisation in their plant utilities space. Plant utilities is the term given to equipment that is not used in the direct manufacturing process, but is required to facilitate that process. This includes such applications as creating steam for heating heat exchanges that can pasteurise milk, water blending, water quality monitoring or Clean in Place (CIP) processes. Bürkert’s national segment / Local pacific teams / Since 1980, manager, Ryan Orbell, said it is an Bürkert has shown its commitment often overlooked area of processing to bringing the highest level ofimportant and manufacturing, but an one. service This is thetospace where Bürkert quality and Australia a lot of expertise. and Newhas Zealand. “We’ve built a strong reputation in this are. It’s given us a really strong framework and understanding Bürkert maintains a highly trained staff that and of the benefits of digitalisation is on hand to answer technical needs - from automation for F&B manufacturers,” one-off basic solenoid valves, to comprehensive he said. “Bürkert has a number of networked systems. different solutions, especially around Bürkert Australia HQconnectivity is located in Sydney, fieldbus – like I/O link, with large branch offices in all states, including industrial Ethernet etc. We work with some regional centres. these types of technologies every day, so we have very good experience and Bürkert in New Zealand has its headquarters in Auckland and maintains presence throughout understanding of the best requirements both the North andapplication.” South Islands, serving for an Trans-Tasman Bürkert customers. provides flexibility in its hardware by withtoa number Wherever you are, Bürkertworking will be there different network and solution. fieldbus ensure youof get the very best technical providers. This adaptability enables Bürkert to provide unbiased advice, it therefore becomes an individual approach to a customer’s We make ideas flow. needs instead
The factory of the future will have a lot of connectivity.
AUTOMATION
“A lot of the time it will depend on their budget and what they want to do,” he said. “With older legacy equipment, our devices can communicate on I/O link, for example, creating a real advantage. This means for a minimal start up – they can use traditional, old hardwired sensors already being used, and we can bring in masters on top of that, allowing them to communicate. That is a real cost-effective way to start customers on their journey of Industry 4.0 and providing digital connectivity. This solution is fast to install, cheaper to adapt and offers all the diagnostic information for them to bring their plants up to scratch.” It will make them more competitive, according to Orbell, because at the end of the day, it’s all about having strong frameworks in place. He believes if these food and beverage manufacturers have got a strong automation process structure, combined with quality equipment, it will be reflected in the cash flow to the bottom line of their business. “The reality is, those older sites need to get on the journey of industry
"Often we find that a customer may be considering bespoke, complicated solutions, but we can bring our varied experience to the table and provide them with several options to help them resolve their challenges. We then assist to drill down and understand short and long term cost advantages and benefits that can be offered for adapting, upgrading or implementing to existing or new applications." 4.0, there is no doubt about it,” he said. “Bürkert can support them by taking baby steps and concentrating on one area at a time. It doesn’t mean a wholesale change or taking their existing equipment out. We can even utilise the aforementioned I/O links and help them digitise their site with new connectivity technologies. This can then communicate to higher level architectures like Industrial Ethernet at the top level, while still using a lower level fieldbus that is more cost advantageous. Orbell said the whole idea of modernising a site is all about saving money in the long run. If companies
don’t adapt they will get left behind, “it is as simple as that”, he said. “Look at Kodak. They didn’t take digital seriously until it was too late and they lost their business. That is where we are as far as modern food and beverage manufacturing sites go,” he said. “Information on things like the health and performance of their assets relates directly to cash flow and bottom line. If they’re not able to monitor these efficiencies in productivity, then they are at risk of being left behind.” Burkert devices do this, with advanced diagnostic capabilities. The end customer has total transparency
Networks, Technology & Bürkert Expertise
Fermentation & Tank Blanketing
Plant Utilities
Bringing plant up to scratch will make companies more competitive.
Clean In Place - CIP
Process Automation
on the performance and management of their assets and can trend and predict the health and performance at all times. This results directly in consistently reproducing a quality product out the door to the consumer for Bürkert’s customers. And to aid those just starting out on their journey, Orbell and the team at Bürkert have produced a series of videos and webinars that are designed to show various fieldbus connectivity options and how easy implementing processes can be with regard to plant utilities. “One of our webinars talks about CIP. An animated presentation to give a good understanding of what the principles of CIP are,” said Orbell. “We’ve also developed a presentation on Solutions for Plant Utilities: Best Practice showcasing animated applications that Bürkert supports in modern food and beverage plants. “For example, fermentation application shows users where a product drops in and acts with the interface application, showing the cycle and how each part of the process works within that cycle. This webinar also shows examples of water blending systems, water quality monitoring and heat treatment.” “We even have a video where we have some of our team members wiring a tank system together using a number of typical glycol valves and hygienic product valves combined with control heads, demonstrating old traditional legacy connections on one side of the tank. At the same time, the other side of the tank is being wired utilising Industry 4.0 digital connectivity technologies. It shows first-hand the considerable time you save when utilising digital connectivity technologies in real time.” This is a an example that shows Bürkert has moved beyond just applications outside the process in Plant Utilities, said Orbell. The company’s wholesome approach means it also works inside the process, directly in the manufacturing and production processes, which directly supports the connection between the two areas for seamless integration. He is confident that his team, and Bürkert as an automation specialist, can help food and beverage manufacturing enterprises on their digitisation journey, by offering advice that best suits each individual’s company needs. F
www.foodmag.com.au | November 2020 | Food&Beverage Industry News 23
AUTOMATION AND SECURITY Sischy said security is one of the key features of Siemens’ product range.
Security and plant upgrades will drive the future of processing and manufacturing Forming the perfect partnership can take a lot of work. It helps if both parties are heading in the same direction. Food & Beverage Industry News explains.
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teven Sischy likes a challenge. The automation and drives business manager for APS Industrial joined the company three months ago with the brief to work together with one of its manufacturing partners – Siemens – to make them the leading automation brand in the country. Siemens already has a great reputation in Europe and Australia, but Sischy is keen to take them one step further. “My aim is to increase Siemens market share in Australia. Currently, they don’t hold the position of number one. They are definitely a mainstream player in a lot of the sectors where they are active, but they don’t have the dominance they have in Europe. “My challenge is to see how
quickly we can get them up there with Europe and help local industry experience these world-class products and technology. In the short amount of time I’ve been with APS we’ve started to see some returns with having a big focus in particular areas.” This includes the food and beverage market where over the past two years, the Internet of Things (IoT), Artificial Intelligence (AI) and Industry 4.0 have started to take hold in the processing and manufacturing of goods. “We also see the packaging industry as a very big market within the Australian and New Zealand markets,” he said. “What we have seen, with COVID, is a lot of people are more interested in knowing
24 Food&Beverage Industry News | November 2020 | www.foodmag.com.au
where their food is coming from.” And this is one core principles of how Siemens does business – helping make sure that the food supply is secure, especially when it comes to traceability. “What is important is cyber security,” he said. “If you look at the food and beverage sector, you will see that Siemens has a cyber security policy within its entire range. When they talk about traceability – especially when you start looking into food and beverage, as well as pharmaceutical – you want to know who has actually put what ingredients where, but they want to now go down to even the operator who packed the product. “This is part of Siemens core DNA. This technology is already
Steven Sischy has designs on making Siemens the number one automation specialist in Australia.
AUTOMATION AND SECURITY
in place and gives manufacturers the capability to say ‘I can show whatever is going into a product has been made with a particular recipe and we will track the entire process from start to finish. We will also note when an operator has changed anything, down to the time and date when it occurred.’” But there is also a component of the security protocols that is sometimes not taken into consideration, especially when it comes to bespoke manufacturing processes. “The other side, with the technology – is the intellectual property, which is a massive component,” said Sischy. “Cyber security – because the products are already in place – protects the companies that are investing in these technologies to make sure their knowhow does not fall into foreign hands or any of their competitors’ hands. “Siemens cyber security is very robust. A lot of the exposure that Siemens has to essential services – whether it be water, wastewater, electricity generation, transport – needs to have robust communication protocols secured end-to-end, so nobody can get in there and potentially harm those processes in any way.” Sischy said it is also critical
to note that Siemens has got a cyber security team that constantly looks at any of these issues that may arise. In the event of a breach, or a potential attack, they can get in contact with the security division who will act on their behalf to ensure that the processes are still intact. Sischy said it is important to protect your assets and if a company already has the necessary security steps in place at a high level, it is easy to integrate these types of measures down to individual processes. “When it comes to starting your digital journey, we have already got it down to the Siemens LOGO!, which is a very small micro-based controller for home automation, as well as small pump stations,” he said. “It has already got cloud connectivity, so you can put it to the local cloud, or you can send it something like mindsphere if you choose to do that. But the point is you do have that capability. “Like AI, as well as vison-based systems, we’ll start seeing the evolution of what we call edge-based processors where you are going to have a fair amount of processing sitting very close to the action and then sending that information, or digitalised image, back to some central-based cloud solution, which will then give you the ability to interrogate the information even further.” Digital twins are also part of the Siemens’ portfolio. Digital twins have come to the fore over the past 12 months, whereby it is possible to create a virtual twin of a physical item. This gives companies the ability to start developing a process, have a look at what they want to do with the process, how they want to improve it, and put in the diagnostics before they connect any physical device to the network. “Also, through a process that we call Team Centre, you’ve got the ability to also then work out from a manufacturing side, ‘How do I increase the movability? Do I have the right product for the solution? How do I reduce costs and how do I improve the quality of the system?’” said Sischy. The end game to all these processes is giving processors and manufacturers the ability to achieve the productivity outputs they want, and streamline global processes.
"Through the company’s system integration program, end users will have the ability to get an end-solution product for the customer. It is not only providing product with the inclusion of the APS system program, but it also gives the customer the ability to understand and deliver their needs."
Traceability of food and beverage products during the production process is becoming more of an issue for consumers. “If you look at it – it doesn’t matter where you look – where any food and beverage company have global location, how do we see whether or not a certain geographical area is more deficient or even profitable versus other areas?” said Sischy. “What we find, if you have a progressive company, is that they are always looking to be at the forefront of their competitors, or always be ahead of their competitors, which means the uptake of technology is relatively easy. It is where you have companies that may not have the capacities internally, that it becomes more challenging. Sometimes in those instances it can sometimes be harder.” He said that APS’s philosophy, and therefore something that they are also trying to bring with the Siemens’ suite of products – and Team Centre in particular – is trying to improve the overall quality but also try and lower costs. “A big part of this going forward, in the Australian market, is to try and reduce your energy consumption and CO2 emissions,” said Sischy. “It is going to be a massive focus going forward, so we need to look at the end goal and determine the true cost of its implementation. With Team Centre, because of the development and also looking at efficiencies, you
can also look at the process flows, and that improves it – the actual physical prototyping reduces the development costs and improves the quality.” He said that Siemens and APS can provide a complete solution including all the Siemens componentry – the PLCs, the drives, the switchgear, the power supplies, the networking devices, as well as panels and cabling. “Through the company’s system integration program, end users will have the ability to get an end-solution product for the customer,” said Sischy. “It is not only providing product with the inclusion of the APS system program, but it also gives the customer the ability to understand and deliver their needs. “To make manufacturers locally more cost effective, they need to adopt these technologies. If they are going to try and do this with their standard ways – ‘this is how we have done it over the years etcetera’ – they might not succeed. They need to adapt to the latest technologies.” Overall, Sischy is excited about the future of the APS/ Siemens relationship. It has been a mutually beneficial relationship for both companies – and of course, Australian industry who is better placed than ever to access these products. F
www.foodmag.com.au | November 2020 | Food&Beverage Industry News 25
CHAINS
A rust-free chain for Bundaberg’s iconic drinks maker When Bundaberg Brewed Drinks’ chains on its conveyor belts were having rust issues, BSC had the solution. Food & Beverage Industry News explains.
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ased in the small town of Bundaberg in Queensland, Bundaberg Brewed Drinks has been making some of Australia’s most popular non-alcoholic beverages since the 1960s. Over the past few years, BSC’s Bundaberg branch has been working with the beverage company as a trusted distributor of industrial products and services. BSC sales representative James McFarlane regularly checks on Bundaberg Brewed Drinks’ production plant to make sure the plant is well-supplied with their required products. It was during one of these routine visits that Bundaberg Brewed Drinks engineering manager, Daniel Engelbrecht, sought McFarlane’s advice on finding suitable roller chains for the rinsing machines – which are used to wash up to 400,000 of the company’s iconic ‘stubby’ bottles every day. The 60-metre long chain houses the cleats and rubbers that hold the bottles upside down while water sprays rinse the bottles. As Engelbrecht explained, the existing heavy-duty coated chains tended to get rusted in the presence of water and chemicals and wore out quickly. “The chain operates in a very wet area so we cannot use mild steel or even hard steel chains because these get rusted and the rust can get washed up into the bottles. We also cannot lubricate the chains as we do not want to wash the bottles with greasy water. Previously, we have been using chains with special coatings, but the chemicals we use for washing the bottles attack the coating and it shortens the chains’ life,” said Engelbrecht. McFarlane’s recommendation to Engelbrecht was to use stainlesssteel Diamond chains, which could provide the desired level of corrosion resistance, while being strong
The chains have excellent corrosion resistance.
26 Food&Beverage Industry News | November 2020 | www.foodmag.com.au
CHAINS
Correct tension of the chain is a vital aspect of the maintenance process. enough to withstand the wear. “As the roller chains go over the sprockets, they turn 270 degrees in the linear direction as well as 270 degrees sideways. The twisting movement coupled with the chain rubbing on the plate resulted in the wearing down of the chain’s corrosion protection coating. Daniel and his team had not had a good experience with their previous chains as the coating
“We have been using the Diamond chains for the past nine months and they are still performing very well. In the past, we were lucky to get six months from a chain,” said Engelbrecht. “The chains are also very cost-competitive, so we are very happy with the performance overall.” He said the collaboration between Bundaberg Brewed Drinks and BSC has been successful over the years. “We have worked with other suppliers before but the solutions they offered were not what we were looking for. The BSC team has experts specialising in different fields, so they can provide us with the right solution every time.” Diamond produces a range of single-pitch and double-pitch stainless-steel chains to suit different applications. Troy Markland, BSC’s national product manager for power transmission said the most common Diamond stainless-steel chains are the 300 series. “The 300 series stainless-steel chains offer the most corrosion resistance and are the most common chains in the food and beverage applications. The 600 series also provide very good corrosion
"We have been using the Diamond chains for the past nine months and they are still performing very well. In the past, we were lucky to get six months from a chain. The chains are also very costcompetitive, so we are very happy with the performance overall." would wear quickly due to this, causing the chains to corrode sooner,” said McFarlane. “The Diamond stainless-steel chains have excellent corrosion resistance in addition to offering wear resistance that the Bundaberg team was looking for to get sufficient life out of their chains. The corrosion resistance of Diamond’s stainless steel outlasts the previous coated chains and they have not been experiencing that same wear removal of the chain’s protective feature,” he added. Since switching to the Diamond stainless-steel chains, Bundaberg Brewed Drinks has been able to extend the service life of the chains and Engelbrecht said he is happy he took McFarlane’s advice.
resistance, but they have a higher wear resistance,” he explained. Apart from the off-the-shelf chains available at all BSC branches, Markland says BSC can also order special chains from the factory when a customer requires customised chain lengths, chains with special attachments, or chains that are paired together. “The chains provided to Bundaberg Brewed Drinks are 300 series chains with extended pins to enable them to accommodate the bottle grippers. We ordered it specifically from overseas for Bundaberg Brewed Drinks to use for their bottle rinsing application,” he said. When it comes to the maintenance of the chain’s drive
Chains are an important part of any production line. systems, Markland says it is crucial to keep the sprockets in good condition. “Extended chain life can be achieved by ensuring sprockets are in good condition. The sprockets should be inspected at every chain replacement or at set maintenance intervals.” Correct tension of the chain is another vital aspect in the maintenance process, Markland said. “Through periodic measurement of the length of the chain and comparing it to the maximum allowable elongation for that particular chain, you can prevent any unexpected failures. The chain should be replaced when elongation reaches 1.5 per cent for length-matched, indexing, vertical orientation, no slack take-up or fixed centre drives or 3 per cent for standard drives,” he said. “For example, the chain drive in the bottle rinsing machine is a critical drive because if the chain elongates excessively, it can no longer grip the bottles properly and the bottles will fall and smash.” Markland said the BSC team is experienced to assist customers with the maintenance of chain drives. “We have the technical capability to assist and determine sprocket conditions. Where needed, we can also educate customers on the correct way of inspecting the sprockets, to ensure maximum life for their equipment,” he said. F
TYPES OF DIAMOND STAINLESS-STEEL CHAINS: 1. A P Series stainless-steel chain: These chains are assembled using 300 series link plates, bushings, and rollers along with a precipitationhardened 600 series stainless steel pin. This combination increases the wear life of the chain. AP stainless steel chains are well suited for food processing and are approved by the FDA. 2. 3 00 Series stainless-steel chain: These chains are assembled using only 300 series components. They have excellent corrosion resistance and very low magnetic permeability. The 300 series chain is a “non-sparking” chain. 3. 6 00 Series stainless-steel chain: These chains are assembled using 300 series link plates with pins, bushings, and rollers made from 600 series precipitation-hardened stainless steel.
www.foodmag.com.au | November 2020 | Food&Beverage Industry News 27
AFCCC
Cold Chain training starts with the simple things Mark Mitchell, chairman of the Australian Food Cold Chain Council, tells us why the humble thermometer is so important in making sure Australia has a thriving cold chain supply.
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new training initiative based on the thermometer is about to be introduced to the Australian cold chain industry. It is seen as a practical move to help combat the country’s serious food loss and wastage problem, estimated to cost the country nearly $4 billion a year at farm gate value. The Australian Food Cold Chain Council (AFCCC), the peak advocacy body comprising concerned industry leaders covering refrigeration assets, transport and food distribution, will release an online education program, Thermometers and the Cold Chain Practitioner this month. The program is aimed squarely
at those the AFCCC regards as the super heroes of the food cold chain process – the people who oversee the movement of food through refrigerated transports, loading docks and cold rooms across the nation. Industry research convinced the AFCCC that Australia desperately needed a new Cold Food Code that should be adopted by industry to stimulate a nation-wide educational push to bring Australian cold chain practices up to the much higher international standard. The educational program starting with temperature measurement is the first of a planned five-code series. The AFCCC has invested in new online education software that will be
The cold chain has an important role in reducing Australia’s issue with wasting up to two million tonnes of fruit and vegetables every year.
28 Food&Beverage Industry News | November 2020 | www.foodmag.com.au
"Industry research convinced the AFCCC that Australia desperately needed a new Cold Food Code that should be adopted by industry to stimulate a nationwide educational push to bring Australian cold chain practices up to the much higher international standard." used to develop training programs to support the release of the actual Code document that will cover temperature technologies and how they should be used for monitoring a variety of foods carried in the cold chain. The initiative runs alongside the work being done by other authorities, including Food Innovation Australia
(FIAL) and the Commonwealth Government, which has signed up to a United Nations treaty to halve food wastage by 2030. Some of the rising levels of national food wastage is considered to be the result of poor temperature management, and poor understanding of how refrigeration
AFCCC
Poor refrigeration practices can dramatically decrease the shelf life of produce. works in a range of storage environments. This includes from cold storage rooms through to trucks and trailers, and even home delivery vans. Australia has world-class refrigeration and monitoring technologies, but the AFCCC believes industry will have to adopt serious training programs so that those responsible for moving food and pharmaceuticals around the country can get the best out of the available technologies. Because of the vast distances in this country, food transport is a series of refrigerated events, in the hands of a range of stake holders. Mangoes picked in the Northern Territory may be handled through stationary and mobile refrigerated spaces as many as 14 times by multiple owners on a 3,400 km journey to Melbourne. If temperature abuse through poor refrigeration practices occurs in just one of those spaces, the losses at the consumer end are compounded, and shelf life can be either drastically
reduced, or result in the whole load being sent to landfill. People working at the coalface of the industry can sign on independently to do the course, which the AFCCC believes will be an important next phase in their professional journey. Kindred organisations involved in the cold
on assembling the research and expertise to complete further parts of the overall Code of Practice. This will ultimately be gifted to the cold chain industry for the purposes of universal adoption. The extent of food wastage in this country should not be under-estimated.
"Australia has world-class refrigeration and monitoring technologies, but AFCCC believes industry will have to adopt serious training programs so that those responsible for moving food and pharmaceuticals around the country can get the best out of the available technologies." chain will be encouraged to become retailers of the education program. Many industry groups have already signed up to help drive cold chain practitioners to the training program from their own websites. There will only be modest charges for the course, which will help fund AFCCC’s continuing work
It is almost criminal that one quarter of Australia’s production of fruit and vegetables are never eaten and end up in land fill or rotting at the farm gate. This loss alone accounts for almost two million tonnes of otherwise edible food, worth $3 billion.
A government-sponsored study released earlier in 2020 revealed that meat and seafood waste in the cold chain costs the country another $90 million and dairy losses total $70 million. It’s not just the wasted food at stake. The impacts on greenhouse emissions, water usage and energy consumption will end up being felt nationwide. F The AFCCC was formed in mid 2017 by a cross section of industry leaders covering manufacturing, food transport, refrigeration and cold chain services. The Council sees itself as an important part of the solution, encouraging innovation, compliance, waste reduction and safety across the Australian food cold chain. The new Council is not about promoting an industry – it wants to change the industry for the better. It acknowledges that Australia’s track record in efficient cold food handling, from farm to plate, is far from perfect.
www.foodmag.com.au | November 2020 | Food&Beverage Industry News 29
MOTORS & DRIVES
Motor controller increases diagnostic capabilities for roller conveyor systems With the new EP7402 EtherCAT Box from Beckhoff, the control architecture and cabling of roller conveyor systems become more efficient. Here is why.
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ith the high IP67 protection range, Beckhoff’s EP7402 EtherCAT box compact motor controller for BLDC motors is suited for conveyor tasks in intralogistics and assembly technology, as well as in the packaging, food, and beverage industries. It has a plethora of features that excite Beckhoff ’s IO product specialist, Supriya Suhale, who knows the product inside out. “The great thing about this product is that we have designed it to be vendor agnostic. A lot of roller drivers in the market are specifically designed for their own motors,” she said. “A lot of system integrators utilise motors from more than one manufacturer, interoperability makes it easier to expand. Even if it were not planned during the commissioning, our solution will fit right in. It is a real team player.” The EP7402 takes over the control of a roller motor independently of the conveyor or motor manufacturer. The control of the motor is sensorless. Maximum rated current, acceleration or deceleration ramps and various other parameters can be configured, allowing optimal adaptation to different applications. “A trend we see by some motor roller manufacturers is to integrate the drive into the roller together with the motor and gearbox,” said Suhale. “However, we feel this leaves the customer at a disadvantage, as it requires a PLC with analogue outputs for motor control. In the age of Big Data and predictive maintenance, having a PLC that directly controls the motor will provide a clear understanding of the motor conditions and provides important feedback across EtherCAT to the PLC. By
The EP7402 is IP67 rated and is easy to install. treating a MDR as an extension to the EtherCAT bus, Beckhoff can quickly and easily control and expand on this roller network.” In conveyor operation, the EP7402 can also be operated without a PLC and provides functions such as Zero Pressure Accumulation (ZPA), single or block discharge. It is IP67 protection rated and can be mounted in standard C‐channel or L‐brackets on the conveyor frame. It requires no additional protective covering, which saves additional installation space. “Commonly we come across products that are IP20-rated or IP54rated,” said Suhale. “The EP7402 offers IP67 protection and uses connectors for optimal durability, longevity, and flexibility. This also ensures that the EP7402 meets new standards in the USA for protection of low voltage circuits, NFPA79.” The protection has other strings to its bow, which is handy for those who are looking to make their conveyor systems more user friendly. Routinely the cases/bins are introduced by dropping them on a running conveyor. Or in the case of
30 Food&Beverage Industry News | November 2020 | www.foodmag.com.au
a jam, operators often must push the cases/bins back against the direction of the conveyor flow. This creates a great deal of back EMF, according to Suhale. The EP7402 offers optimal protection against back EMF. In cases where this is extraordinarily high, Beckhoff offers a solution for absorbing and depleting further energy. This eliminates the frequent MDR failures common throughout the industry which creates downtime. The EP7402 offers further protections not typical of other products in the industry including protection against high ESD and over-voltage conditions, with both electronic resettable fuses and standard fusing. Suhale also points out that the EP7402 is easy to install and more than one can be used at a me. “The EP7402 does not use proprietary configuration software for configuration, nor dip switches for configurations, instead it is parameterised across EtherCAT using central configuration for the whole system, where values can be saved in the TwinCAT project on the machine controller and sent down to the EP7402 upon start-up,” she said. “Dip
switches are a significant cause of down-time from unintended changes of the dip switch configurations. Parameterisation stored in the TwinCAT project also allows for quick change-over in the event of a replacement since no parameterisation is required prior to the replacement.” “The EP7402 makes use of all the benefits EtherCAT technology has to offer. It provides maximum topology flexibility and redundant network. EtherCAT devices such as digital and analogue I/Os, barcode readers or safety devices can be connected to the additional EtherCAT junction allowing compact integration and comprehensive current/ voltage diagnostics”. Because of the popularity of the devices, Beckhoff is looking at producing other iterations within the market. “Currently we have released the version of the EP7402 with EtherCAT communication Going forward, we are expanding the portfolio with EtherCAT P (EtherCAT and power in a single cable) and an EtherCAT‐ less version to support legacy field bus systems,” she said. “On the road map we are looking at a 48 V possibility soon.” Other features include two outputs with integrated motion controller for the direct connection of 24 V DC conveyor roller motors or other BLDC motors (up to 3.5 A). Eight additional digital inputs/ outputs enable connection of, for example, photoelectric switches and communication between the different box modules in opera on without a PLC. Finally, the power supply and EtherCAT communication take place via a single cable with a B23 ENP hybrid connector (28 A/45 °C current carrying capacity). F
NOVEMBER 2020
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AFGC The supply chain will be getting some government funding.
Why food and beverage offers hope for an economic recovery that’s Made In Australia The AFGC looks at why the Australian food and beverage industry is in a good space as the economic recovery begins after COVID-19.
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his year’s federal budget put Australia’s food and beverage manufacturers on the front line in the national effort to start repairing the economic damage wrought by the COVID-19 pandemic. The food and beverage sector is one of the six National Manufacturing Priorities named in the October 6 budget as part of the federal government’s Modern Manufacturing Strategy – a plan to kick-start investment and economic growth by focusing on industries that are natural strengths for the country. In his October 1 National Press Club address ahead of the budget, Prime Minister Scott Morrison said one of the key factors in making manufacturing more competitive was that a mediumsized economy such as Australia’s should not “try to do everything” and instead build scale in areas of competitive strength. Hence food and beverage manufacturing was named alongside resources technology
"What this investment by the Government demonstrates is that they know that our sector is one of huge potential to scale up, particularly in export markets, which account for one third of the sector’s revenues." and critical minerals processing, medical products, clean energy and recycling, defence and space as the industries that hold the most promise of future prosperity for the nation. The prime minister observed that food and beverage manufacturing is “one of the fastest growing parts of our manufacturing sector in recent years and the largest employer in our manufacturing sector”. Indeed, the food and beverage manufacturing sector directly employs 247,000 people in Australia, with many of those jobs in regional and rural areas. With the plan unveiled, work is now underway on putting it into action, with the first step being the assembling of industry-led teams to work with government on designing
32 Food&Beverage Industry News | November 2020 | www.foodmag.com.au
the road maps for each of the priority sectors. The road maps are to be delivered in the first half of 2021 and the Australian Food and Grocery Council (AFGC) is working with government on this process. The road maps will set goals for the next two, five and 10 years, as well as identify the roadblocks to growth and priorities for action and investment. AFGC CEO, Tanya Barden, said the strategy will deliver confidence and encourage urgently needed investment by food and beverage manufacturers in Australia. “We are keen to create a roadmap for the future of the sector, working with the government to ensure that investment hits where it is needed,
and roadblocks are removed,” Barden said. “The government’s manufacturing strategy makes the most of the food and beverage sector’s natural competitiveness, which arises from being able to source quality agricultural inputs and process them to global best safety and quality standards. Barden said the naming of food and beverage as a national manufacturing priority area is a recognition of the untapped potential in the sector. “What this investment by the government demonstrates is that they know that our sector is one of huge potential to scale up, particularly in export markets, which account for one third of the sector’s revenues,” she said. While the Modern Manufacturing Strategy opens up the potential for expansion, it also offers an opportunity to ensure the continued resilience and agility of businesses working in crucially important areas. Barden said that the government
AFGC
had recognised the role played by food and beverage manufacturers in keeping supermarket shelves stocked and supply chains moving during the pandemic. “I am very pleased to hear the government specifically call out that the strategy was designed to back Australian manufacturers to become more competitive, resilient and able to scale,” she said. “To achieve this requires the right policy settings to drive a stepchange in capital investment, which has been stagnant for a number of years because of a tough domestic trading environment and rising input and regulatory costs.” Barden said capital investment in the Australian food sector went backwards in the most recent period for which data is available – declining eight percent in 2018/19 and remaining below pre-GFC levels. The Modern Manufacturing Strategy is worth almost $1.5 billion and comprises three main elements: • a $1.3 bn Modern Manufacturing
Initiative; • a $107.2m Supply Chain Resilience Initiative; and • and a $52.8m Manufacturing Modernisation Fund round two. The Modern Manufacturing Initiative is the centrepiece of the strategy, with its main focus being to build scale in Australian manufacturing. The Government will work in partnership with businesses, and provide grants on a co-investment basis, to stimulate private sources of capital. As outlined by the Department of Industry, Science, Energy and Resources, the Modern Manufacturing Initiative is split into three streams: • A Manufacturing Collaboration Stream will provide funding for large projects that support business-to-business and businessto-research collaboration, to build economies of scale. • A Manufacturing Translation Stream will help manufacturers turn ideas into commercial outcomes and invest in non-
R&D innovation. • A Manufacturing Integration Stream will help manufacturers integrate into local and international supply chains and markets. The investment will only be targeted at projects within the six National Manufacturing Priorities. The $107.2m Supply Chain Resilience Initiative is about building a comprehensive understanding of Australia’s critical goods and services, supply chain vulnerabilities and what the potential options are for seeking to address them. The government will work with industry to identify critical products, and map capabilities and vulnerabilities for normal times and periods of surge. This will build on the close partnership on supply chains developed throughout the COVID-19 pandemic. Early on, the focus of the initiative will be on medicines and medical equipment, followed by products such as food,
chemicals and plastics. Funding will be available for businesses to establish or scale a capability that addresses a supply chain vulnerability identified in a Sovereign Manufacturing Capability Plan and must result in a measurable strengthening of the supply chain. Businesses that align with the National Manufacturing Priorities – such as food and beverage manufacturers – will also be able to apply for grants under a second round of the Manufacturing Modernisation Fund. The second round has $52.8m in funding. It will be aimed at fast-tracking capital investment in technology upgrades to help transform businesses, and enable up to 150 additional local businesses to invest in shovel-ready projects. Businesses can apply for grants of between $100,000 and $1 m. There is a co-funding requirement for businesses, with industry expected to match Government funding on a three-to-one funding basis. F
The food and beverage sector directly employs almost a quarter of a million Australians. www.foodmag.com.au | November 2020 | Food&Beverage Industry News 33
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Date labelling and food waste go hand-in-hand Author
Nerida Kelton MAIP, Executive Director, Australian Institute of Packaging (AIP)
Are you guilty of throwing away items like condiments, flour and rice all because you don’t know the difference between date labelling codes? If you answered yes and you work in the industry, then imagine how challenging this is for consumers.
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ccurate and consistent date labelling on-pack ensures that food is not only safe to eat, but at its best quality throughout its entire life. Getting this right can help to minimise unnecessary food waste in the household. Food manufacturers need to ensure that they are communicating the correct information and advice on pack; the messaging needs to be clear, intuitive and easy for consumers to understand.
What is date labelling? Date labelling is designed to guide consumers on how long food can be kept before the quality deteriorates, or once the item is unsafe to eat.
What are the meanings of a Use By Date VS a Best Before Date? Use By Dates and Best Before Dates are the next step in date labelling
and are the responsibility of the food manufacturer. Use By Date In the simplest of terms a Use By Date is designed for the health and safety of a consumer and you should not eat the item after this date. Items are also not legally permitted to be sold after this date as they pose health risks. Best Before Date A Best Before Date however does not mean that you cannot eat the food after then; it simply means that the quality or taste may not be ‘at its best’ after the recommended date. This style of date-labelling is determined by the manufacturers recommendation of “optimum consumption” to achieve the best quality product. According to Food Standards Australia New Zealand (FSANZ),
who is responsible for all date labelling definitions, “Food items are legally permitted to be sold after a Best Before Date and until they are no longer fit for human consumption”. Legally, the only food item that can have different date marking is bread, which can be labelled with a baked on, or baked for date, if its shelf life is less than seven days. Foods that have a shelf life of two years or longer – e.g. some canned foods – do not need to be labelled with a Best Before Date. This is because it is difficult to provide a consumer with an accurate guide as to how long these foods will keep as they may retain their quality for many years and are likely to be consumed well before they spoil. (FSANZ)
Storage and freezing advice If there are additional ways to extend shelf life of the product such
as freezing the product, preferred methods of storage such as a specific area in the refrigerator, or at room temperature, then let the consumers know this information on-pack. Manufacturers need to be clear on-pack if the food is best kept stored in the packaging so that the product can remain fresh for longer. They need to communicate to consumers how long products should be kept frozen, include defrosting explanations and how to cook from frozen instructions. As an industry we need to ensure that the date labelling used on pack is consistent across all categories so it is easy for consumers to make informed and conscious decisions before wasting food unnecessarily. We encourage you to educate everyone within your business about the differences and help make a contribution to minimising food waste. F
www.foodmag.com.au | November 2020 | Food&Beverage Industry News 35
MARKETPLACE
Deal activity slows to a trickle C
orporate activity in the third quarter of 2020 was still impacted by the outbreak of coronavirus and the containment measures implemented by the Australian and New Zealand governments. Comet Line did observe an uplift in investor sentiment and acquisition interest for businesses in the food and beverage industry towards the end of the third quarter. Seven transactions were reported over the seven-week period to 2 October 2020. Extra Mile Food Trading acquired Marsh Dairy Products for an undisclosed consideration. Marsh Dairy Products supplies bulk dairy ingredients including cheeses, butters and milk powders and honey to the retail and foodservice channels Woolworths announced the acquisition of a 65 per cent shareholding in PFD Food Services and PFD’s freehold properties for a consideration of $552 million. The transaction valued the PFD property portfolio at $249m and placed a value $302m on the 65 per cent shareholding in PFD. The Woolworths
acquisition valued PFD on an 11x multiple of PFD FY20 EBITDA (before any adjustments for AASB16). Daly Potato Company, a distributor of pre-packaged potato salads, mashed potato and cauliflower and broccoli in sauce was acquired by ASX-listed Pure Foods Tasmania. Pure Foods Tasmania paid $1.8m in cash and shares for Daly Potato Company. Fonterra acquired Melbournebased secondary cheese-processing company Dairy Country from Retail Food Group for $19.2m. Dairy Country has before the acquisition provided shredding and grating services for Fonterra’s retail cheese products, The transaction facilitates Retail Food Group’s exit from its foodservice and manufacturing pursuits, enabling a focus on its core retail food franchising and coffee business. The Remarkable Milk Company acquired the assets of Organic Dairy Farmers of Australia. Organic Dairy Farmers of Australia was placed in receivership in May 2020. The acquisition includes the land, processing facility and
all brands and trademarks. Queensland based organic dairy product producer, Barambah Organics, sold a 70 per cent shareholding to Tanarra Capital. Barambah Organics produces organic milk, yoghurt, cream and cheese, which are sold via a national distribution agreement with supermarket group IGA.
The outlook for the food and beverage industry is more positive at the end of the third quarter compared to the end of the second quarter. The gradual relaxation of lockdown restrictions in Melbourne and the continued support for the industry by the Australian government will support investor interest in the food and beverage industry. F
Date
Target Name
Acquirer
Sector
17 Aug 20
Marsh Dairy Products
Extra Mile Foods
Dairy
19 Aug 20
PFD Food Service
Woolworths
Foodservice distribution
25 Aug 20
IsoWhey & Wheyless brands
Australian Health & Vitality
Nutrition & wellness
9 Sept 20
Daly Potato Company
Pure Foods Tasmania
Prepared meals
11 Sept 20
Dairy Country
Fonterra
Dairy
18 Sept 20
Organic Dairy Farmers of Australia
Remarkable Milk Company
Dairy
1 Oct 20
Barambah Organics
Tanarra Capital
Dairy
Ben van der Westhuizen and David Baveystock are directors of Comet Line Consulting, an advisory business that specialises in acquisitions and divestments within the Australian food and beverage industry. For more information, visit www.cometlineconsulting.com.au.
Commodity Outlook WHEAT – Wheat prices to stay low reflecting abundant global supply. COARSE GRAINS – Barley prices to rise because of increasing Chinese demand. OILSEEDS – Oilseed prices to remain low, reflecting constrained global demand and high production. SUGAR – Sugar prices to remain low due to high world production and stocks.
36 Food&Beverage Industry News | November 2020 | www.foodmag.com.au
BEEF, VEAL AND SHEEP MEAT – Cattle prices to fall marginally, reflecting higher global beef supply. Lamb saleyard prices to fall due to demand shock bought by COVID-19. DAIRY – Milk prices to fall due to global production increases and demand shocks. Source: Department of Agriculture and Water Resources (ABARES), Agricultural commodities, September quarter, 2020.
DAIRY REPORT
Global dairy commodity update G
lobal dairy markets remained relatively stable through the September quarter – with the obvious exception of cheese prices in the US. Sustained retail sales, refilling foodservice channels, the cushion of government aid and slow milk supply growth have combined to keep prices steady and firming in many cases. This has been aided by strong trade volumes as buyers took advantage of the dip in prices in Q2-2020. While it feels like there is denial in dairy markets about the seriousness of the economic impact of COVID, experience to date shows the resilience of demand for dairy products. This will be tested in coming months with large second wave infections reprising movement restrictions in many major economies. While milk supplies will continue growing in H2-2020 – albeit slower than in the first half. The US cheddar market will weaken as block cheese supply improves with rising milk supply and additional capacity. Butterfat markets are exposed in all regions to weaker food service demand, which in the US and EU will force higher cream volumes into the butter churn.
Whole milk powder
The WMP market has stabilised despite increased output from the EU and South America and the prospect of stronger peak milk production in New Zealand. Persistent demand from China (despite heavy internal stocks) and MENA have kept the market balanced.
Cheese Cheese markets have – like butter – shown divergent trends but the stability of domestic demand in the EU and US has soaked up enough milk solids to keep the entire dairy complex in stable condition. The changes in mobility and shopping habits will continue to alter the composition of demand for dairy products and ingredients. A deep recession is unfolding as the effects of early stimulus measures wear off and governments brace for the impact of employment losses and business closures on household spending. While developing world markets tend to respond to product prices rather than GDP changes, the uncertainty ahead will keep buyers cautious, and any outlook must consider risks of slower demand, as described herein.
While experience suggests a recession might help everyday cheese demand in the US, the outlook will see consumers trade down to cheaper grocery lines, reduce spending on high-value specialty cheeses, snacks and entertainment lines, and (where it is possible) avoid dining out.
Skim milk powder SMP and NFDM prices have continued to steadily build. The earlier fears of stock build did not eventuate – milk supply slowed, and cheese demand has been resilient with the swing to retail sales.
Butter Global butterfat prices have diverged in recent months as different influences impact the fundamentals in each of the major producers.
Whey Whey product prices remain under the complex influences of COVID19 on milk supplies, cheese output, relative SMP prices and weak demand for high-concentrate products. The outlook for the commodity whey market in China remains positive with the ongoing rebuilding of their pig herd numbers. F
Buyers will be cautious due to uncertainly in some sectors of the dairy industry. www.foodmag.com.au | November 2020 | Food&Beverage Industry News 37
NEW PRODUCTS
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operates in fluid temperatures -40° up to 121°C, in pressures up to 138 bar. It also features IP protection rating to IP67 for its housing, and meets the National Fire Prevention Association NFPA Standard 86 compliance. Designed for reliability and dependable measurement, it is the only instrument of its type and in its price range to carry a SIL 2 compliance rating. It has no moving parts to clog or foul and requires no routine maintenance, which saves time and expense over any mechanical-technology based flow switch.
EtherCAT slave I/O module with isolated 16-Ch source type DO ICP Australia is proud to introduce ICP DAS’ ECAT-2057P EtherCAT slave I/O module with isolated 16-Ch source type DO. The ECAT-2057P is equipped with the EtherCAT protocol and installed by daisy chain connection which allows flexibility in device installation and reduces infrastructure and operation costs. The EtherCAT slave I/O module can be deployed in the network topologies such as star, line, or ring. The isolation input and output design protect the ECAT-2057P against the harmful interference and environment. ECAT-2057P is built-in with isolated 16 source-type digital outputs. The output status can be obtained via the processed data or from its LED indicators. It has been passed and verified by the conformance test tool, therefore it can be operated by eligible EtherCAT master or configurator with ease and then implement all kinds of applications easily. Features include: • on the fly processing: EtherCAT; • powerful MCU handles efficient network traffic; • 2 x RJ-45 Bus Interface; • distance between stations up to 100 meters (100BASE-TX); • support daisy chain connection; • EtherCAT conformance test tool verified; • removable terminal block connector; • LED indicators for the I/O status; • built-in isolated 16-Ch source-type DO; and • ESD protection 4 KV contact for each channel. ICP Electronics Australia (02) 9457 6011 www.icp-australia.com.au 38 Food&Beverage Industry News | November 2020 | www.foodmag.com.au
AMS Instrumentation & Calibration (03) 9017 8225 www.ams-ic.com.au
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