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AUGUST 2013
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WELCOME
Come on, let’s be honest... I’m a proud advocate for our food manufacturing industry, but I’m also a consumer.
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EDITOR: Danielle Bowling danielle.bowling@cirrusmedia.com.au
on’t get me wrong, I love my job. I love learning about all the new and innovative ways our food manufacturers are doing business. I love reporting on - as cliche as it sounds - what really matters to you guys. I love talking to you, trying to understand your struggles, and advocating for the reforms you need to ensure the longevity of your business and the industry. BUT, before I was a journalist and before I was editor of Food magazine, I was a consumer, and obviously I still am albeit a much more discerning one. I’m not a vegetarian - in fact I’ll pretty much eat anything, but I try to buy and eat as ethically and healthily as possible. It’s a personal choice and it’s certainly not an easy one. The plethora of labels and marketing tools out there which are either straight-up misleading or at the very least sneaky, mean consumers like myself aren’t always buying what they think they are. Australian shoppers are a savvy bunch and are increasingly aware of the regulation - or lack thereof - surrounding claims such as ‘organic’ and ‘free range.’ My point is this: be honest. Don’t blur the truth. I know the vast majority of food brands are completely transparent in their marketing
material, but it only takes a few fibs to tarnish the whole industry. Coles - don’t insult your customers by telling them it’s wrong to assume that ‘baked fresh’ means ‘made from scratch.’ Water cannot be organic, so don’t say it is. Breakfast drinks actually have to be high in protein or fibre to be promoted that way, and a chicken needs more than an A4-sized piece of land in order for it to be labelled (and priced) as ‘free range.’ This year has seen a number of companies named and shamed for leading consumers astray. More stringent regulations are on their way but manufacturers should fear more than just a hefty fine.
"When news gets out that the wool's been pulled over our eyes we'll walk away" While Australians are a loyal bunch, we also don’t forget easily. When news gets out that the wool has been pulled over our eyes and that ‘light’ microwavable meal is in fact packed with sugar, salt and perhaps even kilojoules, we’ll walk away and won’t look back. So be warned - tell the truth. It’s for your own good.
INSIDE 06 WHAT'S FRESH
14 HEALTH
20 PEST PRACTICE
We profile a selection of new products now available on retailers’ shelves.
18 BAKED GOODS
26 PRODUCTS & EVENTS
What does organic certification really mean and is it a worthwhile investment?
A detailed pest management plan is essential for all food manufacturers.
12 INDUSTRY MAP Pitango’s GM, Wade Gillooly, takes Food magazine’s Q&A.
ASSOCIATE PUBLISHER - Martin Sinclair P: 02 8484 0607 F: 02 8484 0915 E: martin.sinclair@cirrusmedia.com.au EDITOR - Danielle Bowling P: 02 8484 0667 F: 02 8484 0915 E: danielle.bowling@cirrusmedia.com.au
25 ON THE SHELF
How much salt is too much? And what is the industry doing about it?
24 PACKAGING Garlo’s Pies celebrates 12 years of growth with a new St Peters facility.
Both consumers and manufacturers are chasing products with longer shelf lives.
New equipment and an event which could make all the difference in your business.
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WHAT'S Baiada busted for free range claims
"I believe this industry code will actually bring clarity to the free range confusion, and those producers that are meeting consumer expectation will stand out from the crowd. Consumers will then be able to decide if they are willing to pay a little more for what they want, or accept eggs grown under a more intensive operation."
Packaging critical in reducing waste: study
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FoodMagAU posted to Thankyou.
Thankyou Water urges Coles and Woolies to get onboard [video]
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Baiada Poultry and Bartter Enterprises, the processors and suppliers of Steggles chicken products, misled consumers by claiming their chickens were 'free to roam', when really their movements were restricted to an area comparable to an A4 sheet of paper, a court has found. The Federal Court found the companies misled consumers by using the term 'free to roam' in its marketing campaigns. The Australian Chicken Meat Federation, the peak industry body for Australia's chicken meat industry, was also found to have engaged in false, misleading and deceptive conduct by claiming on its website that chickens produced in Australia were 'free to roam' or able to 'roam freely' in large barns. The court found that the ordinary and natural meaning of the phrase 'free to roam' is 'the largely uninhibited ability of the chickens to move around at will in an aimless manner.' However, Justice Tracey found that at times in their growth cycle the chickens "could not move more than a metre or so (at most) without having their further movement obstructed by a barrier of clustered birds." Steggles' statistics indicated consistent stocking densities of between 17.4 and 19.6 chickens per square metre. The ACCC alleged that at these densities each chicken, on average, had access to floor space which was less than the size of an A4 sheet of paper and that this was contrary to the representation that they were 'free to roam.' The industry has stopped using the 'free to roam' term, but questions still surround the legitimacy of a similar claim - 'free range.' Humane Society International (HSI) has been urging the federal government to take action by legislating a national standard for free range eggs. South Australia is leading the way here, setting an industry code in June and defining free range eggs as coming from hens stocked at 1,500 birds per hectare. Lee McCosker, chief operating officer for Humane Choice, the certification scheme launched by HSI, says the proposal will encourage supermarkets to offer abroader selection of eggs.
Good luck Thankyou! We’ve got our fingers crossed for you here at Food mag HQ. Come on Coles and Woolworths! Thankyou. responded: Amazing!! Thank you so much guys!! Packaging has a vital role to play in minimising food waste in the supply chain, according to new research by RMIT University. The University's Centre for Design conducted the Australian-first research, commissioned by CHEP Australia, showing where and why food waste occurs along the food supply chain. The research also proposes opportunities for the food manufacturing industry to address waste through sustainable packaging. The study, titled The Role of Packaging in Minimising Food Waste in the Supply Chain of the Future, lists poor inventory management, overstocking shelves and product damage as avoidable contributors to food waste in the supply chain. Other contributors are present in agricultural production including damage from pests and disease; unpredictable weather conditions and produce not meeting quality specifications, as well as wastage at home including food preparation waste; food spoilage; preparing too much food; and used-by or best-before dates passing. "There are certainly opportunities to minimise food waste through packaging innovation and design, such as improved ventilation and temperature control for fresh produce, and better understanding the dynamics between different levels of packaging, to ensure they are designed fit-for-purpose," said Dr Karli Verghese, who led the research study. The report shows that food manufacturing is the second largest contributor to the 1.5m tonnes of food waste generated by Australia's commerical and industrial sector each year, sending 312,000t to landfill. It was trumped only by food services, which contributes 661,000t of waste a year.
FoodMagAU posted on its wall:
Consumers shouldn't assume 'baked' means fresh, says Coles Andrew Foley commented: The whole point regarding representations about food and misleading conduct is that you do not assume the customer understands, because they may not have the same technical knowledge or background information you have. If food companies have to conform to these requirements, then so should retailers including Coles.
wayno commented on article:
Plain packaging and graphic images considered for food Having been involved in numerous obesity campaigns and water consumption trials (kids off soft drink) it became very obvious that this issue is an entrenched socio-demographic problem that spans generations. The government must review how best to approach this problem as the campaigns we ran fell on deaf ears (we did a lot of research within the target audience and they were just not interested). The same problem exists for smokers who in the main fall into a lower sociodemographic profile.
www.foodmag.com.au | August 2013 | Foodmagazine 5
All images: Thinkstock
Organic certification What is the cost of clean production?
The Australian organics industry has grown significantly in the last decade, but how does the cost of organic certification affect a business’ bottom line? Aoife Boothroyd reports.
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ited as one of the nation’s top five growth industries by the Biological Farmers of Australia, the Australian organics industry has gone from strength to strength over the past decade. Mainstream supermarkets have embraced the ever-increasing demand for certified organic products, farmers markets are popping up all over the country, and home delivery services are available for those too busy to join the checkout queue. Access to premium quality, certified organic produce has never been easier. The health and environmental benefits of organic farming have also been well documented. Organic production prohibits the use of pesticides and pharmaceuticals (antibiotics), ensuring the long term sustain-
6 Foodmagazine | August 2013 | www.foodmag.com.au
ability of the land and eliminating the presence of synthetic chemicals in food. It all sounds fantastic, but what are the realities for a food manufacturer? Do you need certification to make an organic claim? How do producers tackle seasonality in supply? And importantly, how do food companies communicate the higher cost to consumers, who in the end, bear the premium price burden? Gaining organic certification poses many barriers for producers and manufacturers, namely availability of supply, time and cost. Organic produce attracts a higher price point, but along with a premium product, the costs of production also demand higher overheads. So there the question lies, how do
food manufacturers weigh up the costs and benefits associated with organic certification? What exactly is involved in achieving a certified organic status, and does it pay off at the checkout?
Organic certification bodies in Australia Australia’s peak body for the Australian organic sector, the Organic Federation of Australia, lists a number of Australian organic certifying bodies on its website including NASAA Certified Organic, the Organic Food Chain, AUS-QUAL, the Bio-Dynamic Research Institute, Safe Food Production Queensland, the Tasmanian Organic Producers and Australian Certified Organic. »
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Australian Certified Organic is the largest of the certification bodies and is the nation’s premier auditing, certifying and licensing company of both organic and biodynamic operators.
The organic certification process The Department of Environment and Primary Industries states that the certification process differs depending on whether the application is for primary producers, manufacturing and distribution or the retail trade. In reality, the process to gain organic certification is far more involved for primary producers than it is for food manufacturers. The idea behind certification is that it provides a guarantee that the integrity of organic food is maintained from the farmgate all the way to the end user. According to NASAA, organic certification within the processing and manufacturing sector is complementary to existing environmental, quality assurance and HACCP based food quality standards. The certification essentially ensures that the ingredients, associated inputs, processing activities and transportation of goods all conform to the stipulated standards set out under the National Standard for Organic and Bio-Dynamic Produce 2008. Manufacturing and distribution operations can achieve certification following an inspection of the processing site and an examination of associated documents, all of which must display a clear and auditable paper trail to verify all organic claims. For a product to hold a certified organic label, 100 percent of the ingredients list must be certified, with exceptions for salt and water. Food manufacturers are also subject to routine annual audits once certification is granted to ensure that businesses and farms are meeting the organic standards stipulated in their contract.
Does a product have to be certified organic to make an organic claim? According to the Australian Competition and Consumer Commission (ACCC), an organic claim is any claim that describes a product as organic, or containing organic ingredients. For example, food manufacturers may choose to use the terms ‘made using organic ingredients’ or ‘100 percent organic.’ Current organic product standards are governed under a voluntary Australian standard for growers and manufactures who wish to label their products as organic and biodynamic (AS 6000-2009). A food manufacturer does not need certification to make an organic claim, 8 Foodmagazine | August 2013 | www.foodmag.com.au
however Australia’s main supermarket chains, Coles and Woolworths, will not stock products with organic claims unless they’re backed by a recognised organic certification body. Claims can lead to heavy fines and legal action if they’re found to not comply with national standards. Also, by law, if food manufacturers plan to export out of the country with an organic claim, the product must be fully certified. Outgoing CEO for Australian Organic, Andrew Monk, said that although producers making organic claims without certification has been problematic in the past, today it’s a different story. “Ironically, [organic claims without certification] used to be a more problematic situation for us in the past, but our take on it now is that it is possibly of benefit in a strange sort of way,” Monk told Food magazine. “There are consumer laws around misleading claims, so we do, as an industry, have an agreed base national standard and that means that if a company is going to try and make a claim that is not backed up by an independent certifier, it’s going to risk their livelihood in the long run. “The industry has gotten cohesively together behind a base standard that can be tested by law at any time on uncertified products. I certainly wouldn’t want to be the director of a company that made that sort of a claim in this new consumer law environment that we now have.”
Creating the balance between cost and benefit The argument to go organic is two-fold. The certification not only provides an official confirmation of sustainable farming and processing practices, but it also acts as a powerful marketing tool, offering consumers a measure of trust and in turn, attracting a higher price tag. However, on the other side of the coin are issues including availability in supply, seasonality and cost. Organics, despite strong growth in recent years, still remains a niche market and as such, securing consistent supply in raw ingredients can be a challenge. Monica Meldrum, founder of certified organic snack food company, Whole Kids, said when starting her company eight years ago, it was initially quite difficult to source certified organic suppliers. “Our product development is largely driven by availability of supply, because it’s very much a growing industry in Australia, so sometimes we just simply have to hold back product sales because the supply is not available,” Meldrum told Food magazine.
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“However, supply has increased over recent years and we are finding that farmers are moving to what’s called ‘in-conversion’ so they’re looking at the organic space and converting their farms.” Meldrum says that despite the occasional hiccup in supply, her customers demonstrate a high loyalty to the Whole Kids brand, and understand that products are not necessarily available all year round. Meldrum agrees that gaining certification is a rigorous process, and encourages businesses to only invest in organics if they are prepared to make a commitment to the industry long term. She stresses
you will need to comply with, which goes a bit more into detail than the food safety standard does. But all those same principles are there. You apply and have an auditor come out and cross check that what you are claiming to be doing is exactly what you are doing.” Braeden Lord, chief executive of home delivery grocery company, Aussie Farmers Direct, agrees that the certification process is not as complicated as many make it out to be. “Organic certification is a simple process providing you follow the bouncing ball,” he said.
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Where reliability comes as standard
"Certification essentially ensures that the ingredients, assoicated inputs, processing activities and transportation of goods all conform to stipulated standards." that good supplier relationships are imperative to the success of her business. “We have to be certified right throughout our supply chain and in terms of managing supply, we actually have really good relationships with all the growers. We work directly with them,” she said. “Although we are not growers ourselves, we still go through a pretty rigorous process to ensure that there is no contamination of ingredients at any point along the supply chain. Australian Certified Organic even goes so far as to test some of the soils in adjacent properties to some of our growers, just to test that there is no possible contamination, and everything through to production, warehouse and storage and distribution is also audited. “People who are getting into organics need to understand that it is a long process and they need to be in it for the long haul. Sometimes there is this assumption that you can make a quick buck because you can charge a premium, but I think that with organics, you really need to work with growers and suppliers throughout the supply chain. The customers really appreciate it and they are very, very loyal.” The time and cost associated with gaining certification is far more expensive for farmers than food manufacturers. The main concerns for food manufacturers in making the organic switch is more related to processing compliance issues, which ACO’s Andrew Monk claims are not unlike those of HACCP. “Almost every processor in the country by now should have had a HACCP system implemented and independently certified. And it is fundamentally no different than that really,” Monk told Food magazine. “The first point of difference is more that there is a production standard that
Aussie Farmers Direct recently went into a joint venture with Organic Dairy Farmers to build an organic butter plant attached to the side of Aussie Farmers Direct’s conventional dairy. In order to achieve organic certification for the new plant, the companies had to build a complete separation between the conventional milk and organic milk lines. “It was only really a process of the certifiers coming through and viewing the factory and making sure that everything was in its place. And making sure that we have a way that we can separate out finished products so there is no confusion,” said Lord. “We have a system called SCARDA which is a very sophisticated dairy management production system, so it literally monitors the milk from the time it arrives, to the time it enters into the silo, to the time it enters a bottle. “The system is able to batch control, so we can show the certifiers that we are managing the milk as it comes through the processing, which of course they are thoroughly excited about.”
The realities of supply and certification While growers and food manufacturers generally see the value in organics, some argue that with particular crops, certification is either simply not viable, or something they’re just not interested in. Bruce McPherson, co-owner of Bundaberg strawberry company, Tinaberries, says that although he applies a holistic approach to his farming practices, it is simply not viable for him to grow strawberries organically. “We employ so many organic practices: like companion planting, we don’t fumigate our soils, we introduce
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www.foodmag.com.au | August 2013 | Foodmagazine 9
microbes into our soil and we regularly sap test our plants,” McPherson said. “We use a lot of things like kelp or seaweed, and we use amino acids. So when we say we don’t spray, of course we spray, but we seldom use so-called agrichemicals. Having said that, we are not going to throw the baby out with the bathwater. If we really get a problem, we will move into that.” McPherson had previously looked at going organic, but after a trip to Spain, one of the world’s largest strawberry producers, he changed his mind. “What we found [in Spain] was that there was no price advantage for organic strawberries for the grower, and the quality of the strawberry wasn’t as good as the sustainably grown [not organic] varieties,” he said. “[Furthermore] It’s very hard to grow a strawberry organically, especially to grow one in volume and for it to be economical. It’s been proven around the world that they are just one of the hardest things to grow. And once you get a disease or pest pressure, it’s very hard to deal with it effectively. “I have no problem with organics, but I’m not convinced by the masses that it is as big an issue as what certain parts of the consumer base thinks it is. For us to be here next year we’ve got to make money out of it, we’ve got to be commercially viable.” New Zealand based peanut butter producer, Pic Picot, owner of Pic’s Really
“depth of flavour.” “We source Hi-oliec peanuts from Queensland which are a variety of peanuts developed about 20 years ago. What the Hi-olic does, essentially, is that it keeps the peanuts from going rancid... You can really taste the difference between Chinese peanuts and Australian peanuts because they don’t go rancid at anything near the same rate that the Chinese nuts do.” Picot says that his supplier, the Peanut Company of Australia (PCA), completed trial crops of organic peanuts, however they have only been able to successfully produce around one-sixth of the size of a standard conventional crop. “It used to be in Australia that all Australian peanut growers used a hell of a lot of sprays … The PCA has had a massive seed development program, so they have spent a lot on adapting Australian peanuts to require less and less chemicals. “If we did find really good organic peanuts - Australian organic peanuts - at a price that we could afford to make peanut butter, then I would consider it.”
Is it worth it? The organics industry really does represent a number of positive attributes for producers and manufacturers including clean and green production, a loyal consumer base, freedom from synthetic chemicals and, of course, a premium price advantage.
"There was no price advantage for organic strawberries for the grower, and the quality of the strawberry wasn't as good as the sustainably grown varieties." Good Peanut Butter, said that if he could source good quality organic peanuts he would consider an organic line. However, he’s yet to find organic peanuts that are up to his standard. “Of the nuts that we have tried, and we have tried all the nuts that we could get our hands on, the only organic nuts that we could find were not up to scratch,” Picot said. “I would be happy to buy organic nuts if we could find some that tasted good, but our aim is to make the best peanut butter that we can.” According to Picot, the only organic peanuts with a steady supply come from China, and to a lesser extent Argentina and America. Picot explains that the Chinese nuts have a tendency to go rancid very quickly and deliver a metallic after-taste, whereas the Argentinean nuts don’t have the right
The decision to enter the organic space predominantly depends on the market in which a company operates. Organics is in no way a quick or an easy way to justify a price premium. Extensive research and preparation needs to be undertaken in order to create a sustainable, profitable and long-term business model. Having said that, organic certification stands as a reputable confirmation of sustainable farming practices, equating to premium quality, healthy food. Conventional operations can still maintain clean and green production methods without organic certification, however they don’t have the same authority to market their point of difference, and of course they’re unable to back up their claims (and pocket more at the checkout) in the same way that a certified organic producer can.
10 Foodmagazine | August 2013 | www.foodmag.com.au
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INDUSTRY MAP
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SOUPS & PREPARED FOODS
Pitango
Wade Gillooly, general manager at chilled organic soups and meals brand, Pitango, runs us through a day in the life of a food manufacturing professional.
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What are the primary roles and responsibilities in your job? Give us a day in your working life. Primarily I oversee the management of the Pitango business. Day to day this involves managing the sales, financial and operational performance of the business including managing key distribution and customer relationships, product innovation, business planning and strategy for growth. I also am responsible for the monthly reporting to the company’s Board of Directors.
• First job as marketing graduate with Carter Hold Harvey (forestry and timber products) • 1995-2000 worked as product manager for Heinz-Watties. This position was followed by several product and business management roles in the fresh produce and honey industries • 2008 joined Pitango
What tools and/or software do you use on a daily basis? The main software system that I use is SAP for financial reporting. I also utilise Excel and Power Point packages as well as various customer supplier portals for forecasting and inventory control. However the main tool I use is the telephone. Never underestimate the power of speaking one on one with a customer or supplier over sending an email.
What training/education did you need for your job? I attended the Waikato University in New Zealand where I completed a Bachelor of Management Studies (B.M.S) with Honours. My majors were Commerce and Japanese. I believe that tertiary education is a great stepping stone to start your career but the journey starts with gaining ‘on the job’ commercial experience. This is where the real learning starts and never stops. How did you get to where are you are today? Give us a bullet point career path. 1 • 21994 0 1graduated 3 - 0 7 Waikato - 1 6 TUniversity 1 5 : 0 4 : 2 8 + 1 0 : 0 0
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INDUSTRY MAP
Food magazine recently launched its Industry Map, where we ask manufacturing professionals to shed light on the trials and tribulations of their industry. The Industry Map is targeting all members of the food and beverage manufacturing industry, from the presidents to the packers! You all play an important role in making the industry what it is, so please share your experiences by completing our Q&A.
Tell us your story for your chance to WIN A NEW iPAD! You could also gain exposure by being featured in Food magazine or on www.foodmag.com.au
SCAN THIS QR CODE or use http://bit.ly/industrymap
What is your biggest frustration in your job? I can’t say there are any frustrations right now, other than finding time to have a holiday. It’s that work/life balance again.
Pitango prides itself on using top quality, organic produce.
Is there anything else you’d like to add? Food manufacturing and the FMCG sector is an industry that I love being part of. It offers a lot of scope to develop careers and makes a valuable contribution to the economy.
"The main tool I use is the telephone. Never underestimate the power of speaking one on one with a customer or supplier over sending an email."
What is the one thing that you are most proud of in your professional life? I’m most proud of the growth of Pitango and the reputation we have built for the brand as a leader in organic, fresh chilled food. This couldn’t have happened without the great team of people that work for the business. Biggest daily challenge? It sounds like a cliché but it is letting go of work at the end of the day. I am very passionate about Pitango but I am also a firm believer in work/life balance. My family comes first, that is a given, but sometimes it is hard to turn the switch to off. I find that exercise helps.
Biggest career challenge? The single biggest challenge I have experienced to date in my career would be the transition to our new parent company following the collapse of our previous one. In early 2013 our then parent company, Gourmet Foods Group, went into voluntary administration. This resulted in the collapse of Rosella Food Groups. My role was to keep Pitango running during the administration process and to complete the sale of the business without interrupting day to day trading. The transition to our new parent company, named Beak & Johnston, is now complete.
What is the biggest challenge facing your business? The biggest challenge would be operational capacity in our factory at the present time. We are working on building a newAplant D _ that F Dcan WEsupport S F E our B _growth 1 3 . p plans with our customers.
Pitango is an Australian fresh chilled soups and meals manufacturer, owned by Beak & Johnston. The brand has gluten-free, dairyfree, and low fat options across its are7 preservatived range f Pand a galle recipes 1 1 / 0 1 / 1 3 , and GE-free.
WESMARTIN Leonda
www.foodmag.com.au | August 2013 | Foodmagazine 13 wesmartin leonda_0213 with outlines.indd 1
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HEALTH
The
sodium Salt levels in processed food have come under scrutiny in recent months with special attention placed on foods marketed to children. Aoife Boothroyd reports. A D _ F O O D S Y M1 MA Y _ 0 9 . p d f
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s obesity rates continue to rise throughout the country, Australian consumers are becoming increasingly concerned about salt levels in food - in particular, food products targeting children. A report released by the Dieticians Association of Australia in late 2012 stated that Aussie children are “overdosing on salt” by consuming sodium levels comparable to that of adults. More recently, consumer group Choice, in conjunction with The George Institute for Global Health, released an independent report which found alarmingly high levels of salt in a host of breakfast cereals and children’s snacks. The report claimed that 72 out of 240 products tested revealed higher levels of sodium per 100 grams than the popular Smith’s Original chips. The claim was strongly refuted by peak industry body, the Australian Food and Grocery Council, which dismissed the claims by stating that salt levels in children’s 9 : 2snack 3 foods A M are neither harmful nor hidden. The lobby group also emphasised
that members of the food manufacturing industry are being proactive, and taking significant steps to address salt levels. So exactly how much salt is too much? What does current legislation state about sodium levels? What initiatives are food manufacturers implementing to tackle the issue and how are consumers embracing the changes?
Health concerns translate to business concerns Although the human body requires a small amount of salt to function, Australians are consuming alarmingly high salt levels, 75 percent of which comes directly from processed food, according to the National Heart Foundation. Accredited practicing dietician, Professor Caryl Nowson of Deakin University in Melbourne, conducted research into the salt consumption of children. The study drew from a sample of 238 children aged five to 13 years and found that seven in 10 children exceeded the recommended upper limit for sodium. Nowson also found that salt levels in
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www.foodmag.com.au | August 2013 | Foodmagazine 15
HEALTH
7 out of 10
orginating 97%
adults did not fair much better with 97 percent of Australian men, and 86 percent of women consuming far more than the recommended daily intake. The Dieticians Association of Australia states that rising salt levels, especially in foods targeting children, increase the likelihood of health prob-
for adults should be less than 2,300mg per day, and much less for children. Foods that contain less than 120mg of sodium per 100g are considered ‘low in salt’, and the Heart Foundation recommends that foods be restricted to no more than 600mg of sodium per serve. The Australian government launched
consume more than the recommended daily limit
pation in the initiative is voluntary with no legal obligations tied to involvement. A number of agreements under the new initiative will see leading food manufacturers and grocery retailers reformulate key grocery lines to comply with new standards regarding portion sizing, consumer messaging and sodium levels. The list of categories where partici"This calls for tougher action to control the food industry, pants are encouraged to reduce sodium include breads, ready-to-eat breakfast so it's not profiting at the expense of children's health." cereals, simmer sauces, processed meats, lems later in life including high blood The Food and Health Dialogue in late soups, savoury pies and savoury crackers. pressure, heart disease and stroke. 2009 which serves as a joint governBig players such as General Mills, The National Heart Foundation of ment and industry public health initiative George Weston Foods Limited, Kellogg, Australia also stresses that the total F D 0 8 1 3 _ 0 0 0 _ G WA . p d f aimed P aatgmaking e 1 healthier 1 6 / food 0 5 /choices 1 3 , 1 Arnott’s 1 : 2 8Australia, : 5 1 Unilever A M Aand E Sboth T maximum recommended limit of sodium more accessible for Australians. ParticiColes and Woolworths have all chosen to
16 Foodmagazine | August 2013 | www.foodmag.com.au
25%
other
86% of adults
exceeded the recommended upper limit for sodium
75%
processed foods
kids aged 5 to 13 years
from
participate in selected categories. Each category features differing targets to be achieved within set timeframes, however questions have been raised as to how effective a voluntary agreement can really be.
Is Australia behind the times? Australia is already behind Britain and the USA which have both introduced limits on salt in recognition of community initiatives to control health related issues. According to Jacqui Webster, the head of food policy at The George Institute for Global Health, Australia has only set around 17 targets over the past four years, whereas the UK has released
HEALTH
Australia is behind
Salt targets set by countries 80+ over two years 80+ over two years
the
USA & UK in introducing salt limit targets
80 in just two years. Professor Bruce Neal, also of The George Institute of Health, said tougher action is needed to control sodium levels, especially in children’s food. “This calls for much tougher action to control the food industry, so it is not profiting at the expense of our children’s health,” he said. While Aussie food manufacturers appear to be a little slow on the uptake, the Australian Division of World Action on Salt & Health (AWASH) has listed a number of businesses which have taken considerable steps to reduce sodium levels. These include George Weston Foods, Goodman Fielder, Bakers Delight, Freedom Foods,
Heinz Australia and Sanitarium. AWASH launched its Drop the Salt! campaign in 2007 with an aim to reduce the amount of salt consumed by Australians to 6g per day over a five year period. The campaign was said to be influenced by the success of initiatives in the UK which were widely adopted by the nation’s leading food manufacturers. Gavin Neath, chairman of Unilever Bestfoods, said the UK’s salt reduction program was a testament to the effectiveness of both government and industry working together to achieve a positive outcome for the community. “The work that was done in the UK … to reduce salt levels in processed foods
17 in only four years
was an excellent example of government and industry working effectively together on an important issue of public health Over a period of three years very significant reductions were made across a broad range of product categories that included everything from bread and breakfast cereals to soups and meal sauces,” Neath said.
Transparency is key Let’s face it, salt is cheap, it’s tasty and it can undoubtedly add flavour to a product that without it could taste a little bland. But food manufacturers are increasingly A being under microscope D _put FD M Ethe TA PR_ 1 3 in regards to how their products are
marketed towards children, and also to ensure they don’t exceed acceptable levels of additives such as sugar, fat and salt. Many time-poor consumers place trust in the food industry by assuming that a product marketed as a healthy snack alternative for kids, for example a muesli bar, is indeed healthy. However consumers today are increasingly health-conscious consumer, and much more aware of how to read nutritional information labels on processed foods. So to keep ahead of the game, salt levels need to be addressed sooner rather than later, not just for corporate social responsibility 1 2 0 1 3 reasons, - 0 3 -but 2 also 0 T for 1 0a :busi0 7 : 1 8 + nesses’ long-term brand integrity.
Shaking the salt Which food manufacturers are cutting back on salt? The Australian Division of World Action on Salt & Health has listed a number of food manufacturers that have taken steps to reduce salt content across their product lines. These include: George Weston Foods: Tip Top Up - 20 percent reduction in salt since 1997 Goodman Fielder: Wonder White Hi Fibre Plus - up to a 20 percent reduction in salt Freedom Foods: Gluten Free Muesli - low sodium of 30mg/100g Sanitarium Health and Wellbeing: Weet-Bix Kids - low sodium of 120mg/100g Kellogg - Kellogg's Corn Flakes: 36 percent reduction in salt since 1997 Smith's Snackfood Company: Smith's Crinkle Cut Potato Chips - 20 percent reduction in salt Unilever Australasia: Continental Product - 30 percent reduction across 155 lines Monster Muesli: All products meet low in salt criteria of under 120gm/100g
www.foodmag.com.au | August 2013 | Foodmagazine 17
BAKED GOODS
T
Growing slice of the market
Garlo’s Pies has gone from strength to strength since launching 12 years ago, Danielle Bowling reports.
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Evaluate
Select
here’s been no shortage of bad headlines for the food manufacturing industry in recent times. A number of high profile companies have either hit the wall or come very close (think Rosella, Windsor Farm Food Factory, Darrell Lea and Byron Bay Cookies), and there have been a number of contributing factors including the high Australian dollar, labour costs and cheap imports. It’s so refreshing then, to hear Sean Garlick, managing director at Garlo’s Pies, talk about the strength of the 12 year old pie business. Family-operated, Garlo’s Pies has continued to expand and prosper since opening its first retail pie shop in a 60 square metre premises in the Sydney suburb of Maroubra. With Sean an ex-football player, Garlo’s Pie’s launch was promoted through the television show, The Footy Show, giving the brand an enormously valuable push in the right direction. Twelve months later, Garlo’s opened a second store in Mascot, followed by one in Parramatta, one in Coogee and another in Blacktown. In 2004 production was shifted from the back of the Mascot store to a 250 square metre bakery in St Peters. “That move was really our first step into big bakery thinking,” Sean told Food magazine. “But for the last two years of our existence [at St Peters] we were just busting at the seams. We couldn’t swing a cat. We couldn’t operate effectively and we couldn’t take on any substantial new business because we physically had no more space. So that was the motivation to move into a new place.”
BAKED GOODS A new beginning About two months ago, production started at Garlo’s Pie’s new home - a 1,350 square metre facility just 900m down the road from its predecessor in St Peters. “This move represents capacity and potential. We’ve always had potential and everyone’s always spoken about how good our product is, but while we’ve been thwarted in our growth because of the physical limitations of our last premises, over the last couple of years we’ve learnt where we wanted to go in terms of operations and logistics,” says Sean. “We really took a long time planning the flow of the premises, how the product would come in and come out and now it allows us to really take on all markets.” A very lucrative deal with Coles was another reason Garlo’s Pies had to step up its production capabilities. The supermarket giant approached Garlo’s back in 2009, and while Sean was originally reluctant to sign on the dotted line, concerned Coles would push pie prices down too far and threaten the brand’s premium pie reptation, Sean says Coles is onboard with the brand’s strategy. “We’re now supplying to every one of their stores in NSW and we have 14 lines in most of them, which is huge,” he says.
NSW premier Barry O'Farrell with Sean and Nathan Garlick at the new St Peters opening. All images: Garlo's Pies
advertising. There’s no point being there if no one knows about you. “[When launching in Coles] we underwent a big advertising campaign and relied on family - as we always do - to go out to the stores. Our wives, Success starts at home sisters, our mother, were all out there in Despite these game-changing contracts the stores demonstrating, making sure and interest from export markets includwe were on shelves, trying to get relaing the UAE, South East Asia and the tionships with store managers, going to US, it’s those who helped build Garlo’s meetings and just putting our brand Pies from the ground up who are still in front of people,” he says. pushing its growth today. While exporting is a big opportunity for Garlo’s Pies, the company is more "It's one thing to be available in Coles, but unless you're focussed on establishing a national presence here in Australia, where the humble supporting your product, it just doesn't sell." meat pie has an iconic status not seen “You’ve got to market your product. The Coles contract meant Garlo’s had anywhere else in the world. What we learnt very early on is that it’s to become a more “sophisticated” busiAnd the new St Peters facility will one thing to be available in Coles, but ness, says Sean. certainly help. unless you’re supporting your product it “They’ve really provided us with an “When we first opened our doors in just doesn’t sell,” Sean says. education in terms of what’s needed to Maroubra, Nathan [Sean’s brother] and I “We really invested heavily in in-store looked at each other and said ‘How many be done to service the big guys. It’s now M A 0 positioned 8 1 3 _ 0us4 to3 speak _ F EtoRWoolworths 2 2 0 1 demonstrations, 3 - 0 7 - 1 8 merchandising T 1 5 : 1 6 :and 4 6 + 1 0 pies : 0 will 0 we make?’ So we made 100 and ... and we’ve also been supplying to Metcash for the past six months, which is IGA. We’re available all over NSW in IGA stores, and we’ve also secured big contracts with the Australian Navy.”
they all sold out by lunch the next day. The next day we made 200 and they sold out by 2pm the next day. Then we made 500 and that was about as many as we could make.” After moving to its first St Peters location and investing in a pie machine which deposits filling into the pies, as opposed to doing it by hand, production at Garlo’s jumped to about 8,000 pies a day. “Now we can make 12,000 pies in a shift, which is from about 6am to 5pm. And we’ll be able to do about 6,000 pies in an hour when we have two machines running,” Sean says. “We can now supply in a much bigger scale to the supermarkets. And of course that’s not forgetting the small pubs, clubs, schools, cafes and lunch trucks that we supply to on a daily basis. Those guys are very important in maintaining the strength of the business. “We can’t allow ourselves to have our eggs in too few baskets.”
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www.foodmag.com.au | August 2013 | Foodmagazine 19
SAFETY
Pest
Image: Rentokil
practice
Pest management, like water and electricity, is an essential expense for any respectable food manufacturing company. Danielle Bowling explains why.
P
est management is a dirty word for some food manufacturers. They don’t like to talk about it, and they don’t like to admit that it’s an integral part of their business. But let’s face it - if you’re a food brand in Australia worth your name in salt, then you must have a pretty serious pest management plan in place. Having a strategy for keeping creepy crawlies out of your facility, as well as one for removing them if they find
tion (AEPMA) penned a Code of Practice for pest management in the food industry in Australia and New Zealand. David Gray, national president of the AEPMA, says “With the industry Code of Practice, we didn’t create anything new, really. We just took the benchmarks that were there and, in a nutshell, if someone is setting up a pest management program in a food manufacturing facility and they set it up to the Australian and New Zealand Code of Practice,
"Manufacturers need to be very careful about where and how they fight off pests, and there are a number of options available to them." their way in, is indicative of a proactive, responsible business, not a negligent one. But, like a lot of regulation in the food manufacturing industry, knowing exactly what an effective pest management strategy looks like can be difficult. There are a wide array of pest management standards that a brand can adhere to, depending on what products it manufactures and where those products will be sold. Eighteen months ago, the Australian Environmental Pest Managers Associa-
then they will meet the requirements of all the existing standards or codes that are out there.” The Code, which aims to define best practice in managing pests in food manufacturing, is a go-to guide not only for food brands, but also for auditors and pest management companies. “We’ve added some additional value in the sense that auditors usually come from the food industry. Their expertise is in food, some of them have some experience in pest management but
20 Foodmagazine | August 2013 | www.foodmag.com.au
most don’t. So we’ve developed this Code equally for their benefit, so they can look at it and then audit the pest management program against the Code. It gives them some KPIs that they can measure against, rather than just going in and approaching it blindly,” Gray told Food magazine. “It also includes the downstream suppliers to the food industry, so the suppliers of raw materials, and things like packaging. Often the packaging plants and packaging materials come under the same stringent requirements because they’re supplying into the food industry.” Abiding by the AEPMA’s Code of Practice means food manufacturers will not necessarily have less regulatory I’s to dot or T’s to cross, but will at least know what systems and processes they need to have in place to ensure everything’s kosher, so to speak. Stephen Ware, national executive director at the AEPMA, says “In the pest management industry, everyone knows they need pest managers, but the food manufacturers have problems because auditors turn up and different auditors have different ideas of what should happen as far as, for instance, where to put down rodent baits and traps. The Code of Prac-
tice has helped to clarify that. “That’s why [the Code] has been pretty well accepted by both the pest controllers - who don’t really want to argue with everybody about where he should put the bait - and the food manufacturer - who doesn’t want to have to sit down and have an argument with every auditor that comes in.”
A multi-faceted approach Paul Moreira, service manager for Victoria at Adams Pest Control, says the two fundamental pillars of pest management are hygiene and maintenance. But this isn’t as straight forward as it may sound, he insists. “In the food industry there’s a requirement to integrate a pest management approach which is multi-faceted. So rather than just focusing on applying a pesticide, it’s about identifying proofing issues, harbourage issues, alternative food sources. All of those things link into the site’s pest management program,” he says. Obviously, safety of the end product is a high priority in pest control throughout the food industry. Manufacturers need to be very careful about where and how they fight off pests, and there are a number of options available to them, Moreira says. »
While toxic bates are available, consumed by rodents and killing them five to 10 days later, Moreira believes that in the coming years the industry will move away from these chemicals. “Another approach is to have a monitoring block, which allows you to assess activity. So the pest controller goes around and has a look at if the block has been consumed or not, and if it has you obviously have a problem and you have to go down the path of getting rid of the infestation,” he says. This approach means there’s no risk of contaminating the product being manufactured, but on the other hand it’s purely an information gathering exercise - it doesn’t treat the problem. It’s for this reason that the American Institute of Baking (AIB), which has an internationally recognised standard, is moving away from the use of non-toxic chemical blocks internally, instead recommending the use of mechanical traps. “It’s all about minimising pests within the site by hitting them outside, and then inside your treatment becomes a nontoxic approach. “According to the AIB’s standard you have to use a mechanical trap. You can’t use a monitoring block ... because all that does is feed the rodent. You haven’t addressed the issue of having rodents.”
Image: Rentokil
SAFETY
“What Baitsafe allows us to do is put a device in that cavity and then apply the pesticide in a very secure way. It looks like a fire alarm. It’s flush against the ceiling, but it doesn’t have to be in the ceiling. It can be in the splashback of the kitchen, it can be in the kickplate of a bench or in a wall. “We have a key, we place it in the device, open it and the pesticide is on
"It's much easier - and more cost effective - to prevent an infestation than it is to have one treated." While Adams Pest Control’s latest product, Baitsafe, can be used with toxic baits, it’s like nothing else on the market as it allows food manufacturers to use pesticides in cavities in a safe, controllable way, Moreira says.
the other side, or we can even apply a monitoring block or a sticky board to allow us to gauge the activity levels of, say, fruit flies or cockroaches, then we close the device. “So as far as anyone on this side of the
Hygiene and maintenance are the two pillars of pest management. Image: Thinkstock
22 Foodmagazine | August 2013 | www.foodmag.com.au
wall, where people work, are concerned, all they see is a tiny little circular flat panel and they can’t access the pesticide on the other side.”
Money well spent Food manufacturers need to be proactive with their pest management strategy. It goes without saying that it’s much easier - and more cost effective - to prevent an infestation from occurring than it is to have one treated. So while regular inspections and a detailed pest management strategy might seem like an unneccesary expense, it’s money well spent, says Simon Lean, Australian technical manager at Rentokil. “Pest control isn’t free but they [food manufacturers] do get good value for money. It’s always something you have to
have on your books and something manufacturers often want to get done for as cheap as possible, but generally, if people are chasing cheap pest control they get a cheap job, and if they get a cheap job they end up with pest problems. “That’s the last thing they need because all these food manufacturing companies are very particular about brand protection. The last thing they want is for someone to see a rat in a loaf of bread or something like that,” Lean told Food magazine. “A PR disaster can really hit these companies. But it’s not just PR. If they’ve got a contaminated line in their manufacturing, just imagine if they have to close that line down because it’s either riddled with pests or simply broken. The cost of that line being down could be thousands of dollars, sometimes hundreds of thousands a week, in lost production. It gets very serious and it really does hit their bottom line.” Regular inspections are critical for any food brand, especially those in older facilities that may not be able to keep pests out as effectively as new buildings can. Hygiene and maintenance schedules go a long way in pest-proofing your business and minimising the likelihood and cost of treating infestations, replacing equipment or - heaven forbid - dealing with product recalls. “If you keep things clean and in good working order, it’s going to be easier to inspect for pest problems, and you’re not going to have as many pest problems because you don’t have any food for the pests or harbourage where they can hide and breed,” Lean says. “That’s why inspections are so critical in food manufacturing.”
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PACKAGING
Going the
distance T
Shelf life extensions should be a top priority for today’s food and beverage manufacturers, writes Pierre Pienaar.
hose involved in food and beverage packaging know well that both consumers and manufacturers are demanding increased shelf life from products. The modern food industry has developed and expanded because of its ability to deliver a wide variety of high quality food products to consumers on a national and international basis. This feat has been accomplished by building stability into the products through processing, packaging and additives that enable foods to remain fresh and wholesome throughout the distribution process. Intelligent packaging functions include sensing, detecting, recording, tracing, communicating and applying scientific logic in order to extend shelf life, enhance safety, improve quality, provide information and warn about possible issues. There is a commercial benefit to ensuring products stay fresh for longer. The extension of shelf life is based on slowing the deterioration of the product by using a range of processes together with effective packaging to preserve the product in a suspended state. The principal mechanisms involved in the deterioration of processed foods are: 1. Microbiological spoilage sometimes accompanied by pathogen or germ development 2. Chemical and enzymatic activity causing the breakdown of colour, odour, flavour and texture changes 3. Moisture or other vapour migration which produces changes in texture, water activity and flavour. Therefore to enhance shelf life the focus should be on: • Reducing microbial activity • Increasing acidity
24 Foodmagazine | August 2013 | www.foodmag.com.au
• The addition of additives • Reducing water activity • Modifying the immediate environment. Initially, extending the shelf life of products was a supply chain issue, but it’s now become a consumer concern, with shoppers demanding fresh products, and increasingly, sustainable packaging. Consumer demands for convenience have created new innovations in the food product development and packaging industries. More work is being done on oxygen scavengers, moisture absorbers and barrier films that will enhance the shelf life of products. Consumers want packaging that keeps products clean, ready
extend and protect shelf life, there is also a complimentary group of devices which monitor the products in the packs. These include time and temperature indicators, as well as leak and gas indicators, which provide an indication to the consumer of the state or freshness of the product.
Nanotechnology One of the fastest growing areas in food manufacturing is the application of nanotechnology in packaging materials. As the food market has expanded into a worldwide marketplace, it is requiring a longer shelf life. New materials incorporating nano-particles have been
"Extending the shelf life of products was a supply chain issue, but it's now become a consumer concern." for eating, with longer shelf life, product security and value for money. This is a big ask, but packaging technologists need to rise to the challenge. The terms ‘active packaging’ and ‘smart packaging’ refer to packaging systems used with foods, pharmaceuticals and several other types of products. They help extend shelf life, monitor freshness, display information on quality and improve safety and convenience.
Active Packaging There is a range of active packaging techniques which are available. The broad categories are: • Absorbers/removers • Release systems • Self heating/cooling • Selective permeation
Smart Packaging In conjunction with the developments in packaging materials which help to
able to reduce, and in some cases eliminate, the transmission of oxygen, and in addition have blocked the transmission of moisture from the product. With the daily challenges of preserving product and minimising losses, growers, packers, shippers and retailers now have new packaging options that allow them to dramatically increase shelf life. Various packaging technologies can help food handlers remain competitive by reducing spoilage and delivering consistent quality products on every shipment. Innovations in packaging for extending shelf life will be key drivers over the next few years for manufacturers. Enhanced technical knowledge and input by packaging technologists and packaging engineers through improved performance qualities of materials will be required to fuel market growth. Pierre Pienaar is education coordinator at the Australian Institute of Packaging (AIP).
ON THE
Thankyou with a sparkle
SHELF
Product name: Thankyou Water Lightly Sparkling 500mL Product manufacturer: Thankyou Water Ingredients: Chloride 25, Sodium 15, Magnesium 3.5, Potassium 0.5 Shelf life: One year Packaging: PET bottle with cardboard carton shipper Product manager: Justine Flynn Brand website: www.thankyouwater.org
A healthier choc hit
With hops at the heart
Product name: AntiOx Chocolate Product manufacturer: Vitality Brands Worldwide Ingredients: 70 percent cocoa dark chocolate,
Product name: Coopers 2013 Extra Strong Vintage Ale Product manufacturer: Coopers Brewery Ingredients: Malt, hops, yeast and water with centennial, chinook, citra and
stevia, and super-fruit pieces (goji berries or acai).
Shelf life: 18 months Packaging: Metallised polypropylene laminate film Product manager: Tracy Wong Brand website: www.vitalitybrands.com/antiox
styrian golding being the specific variety of hops used in this year’s Vintage
Shelf life: In excess of two years. Vintages are still drinking well up to six years, but Coopers suggests three or four years.
Packaging: Individual bottles, six pack baskets and 24 bottle cartons. Vintage is also available in kegs.
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TESTS INDICATE EFFECTIVE ELIMINATION OF THE FOLLOWING ESCHERICHIA COLI (E COLI) STAPHYLOCOCCUS AUREUS LISTERIA MONOCYTOGENES PSEUDOMONAS and ASPERGILLUS NIGER CAMPYLOBACTER BACILLUS SUBTILIS SPORE SALMONELLA SACCHAROMYCES CEREVISIAE MRSA, C.DIFF(SPORE FORM) AND NOROVIRUS
www.foodmag.com.au | August 2013 | Foodmagazine 25
PRODUCTS
EVENTS
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The Safety Show Sydney SAVE THE DATE
26 Foodmagazine | August 2013 | www.foodmag.com.au
3rd - 5th September, 2013 Sydney Showground, Sydney Olympic Park, NSW The Safety Show Sydney, the final safety industry trade show for 2013, will be a great opportunity for businesses to network with industry experts and gain access to essential knowledge on the latest safety technology and resources. The Safety Show Sydney will showcase over 150 exhibitors demonstrating the latest technology in safety and offer free seminars from industry experts. Sam Palermo, exhibition manager, said "In addition to the exhibitors and free seminars, visitors can take advantage of WorkCover NSW's exhibit and interactive workshops." Exhibitors will be displaying a comprehensive range of the latest safetyrelated products and services. Industry professionals will be able to speak directly to producers of safety products and resources and build relationships for future business engagements. The free seminars will cover a range of topics including how technology is changing the way we undertake on-site safety, emergency planning, contractor management, OHS program planning and funding, personal protective equipment industry updates and an overview of the latest legislation affecting the industry. Guest speakers will include Carl Sachs, MD at Workplace Access & Safety; Adrienne Strachan, senior consultant at National Safety Council Australia; and Richard Gregory, MD Navace. For more information, visit www.thesafetyshow.com.au
All the expertise you need in one great mix. DESIGN ENGINEERING CONSTRUCTION Creating & sustaining the best dairy facility means having the confidence that one united team is working with you for the best possible outcome. Wiley is the only company that combines all the collective food industry expertise to design, engineer, build, project manage & maintain a food facility, with just one contact & one contract.
Talk to the cream of food facility engineering 1300 385 988 or connect@wiley.com.au
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