Food and Drink Business Europe Sept/Oct 2018

September/October 2018

Carlsberg Group making strong progress

Food & Drink Business Website:

www.fdbusiness.com

C o n t e n t s

- 35 P OUTRY & C ONVENIECE F OOD

- 3 M ERGERS & A CQUISITIONS

2 Sisters embarks on new transformation strategy.

Coverage of British and international deals.

- 40 & 41 A WARDS

- 7 C OVER S TORY Carlsberg Group making strong progress.

PAGE 3

Ramon Laguarta, CEO, PepsiCo.

- 11-16 B EVERAGES

Winners of the 2018 Irish Food & Drink Business Awards.

Processing & Manufacturing . . . . 28, 43 & 44

BrauBeviale 2018 Previews.

Mixing & Blending. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

PAGE 4

James Quincey, CEO, Coca-Cola Company.

- 17 N UTRITION Stay ahead of the healthy eating and tech trends at Food Matters Live 2018.

Jean-Christophe Coutures, CEO, Chivas Brothers.

Inaugural Irish Manufacturing & Supply Chain Awards.

R EGULARS

BrauBeviale 2018 set to create fresh momentum and inspire.

P AGE 25

PAGE 27

Conor McQuaid, CEO, Irish Distillers.

Storage & Logistics . . . . . . . . . . . . . . . . 29 Bottling & Packaging . . . . . . . . . . 29, 37-39 Trays & Tray Sealing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

Quality & Safety . . . . . . . . . . . . . . . . . . . 31

PAGE 35

Thought for Food: How digital is changing the food supply chain. . 31

Ronald Kers, CEO, 2 Sisters Food Group.

Materials & Ingredients . . . . . . . . . . . . 45-48

Managing Director: Colin Murphy Editor: Mike Rohan

- 19-28 D ISTILLING

Group Operations Manager: Sylvia McCarthy

Edrington unveils new £140 million home of The Macallan.

Chivas Brothers starts £50 million expansion.

Advertising: Ian Stewart, Rachel Howard and Tony Lambert

PAGE 7

Production Manager: Sylvia McCarthy

Cees ’t Hart, CEO, Carlsberg Group.

Food & Drink Business Europe is published by Premier Publishing Limited, 51 Parkwest Enterprise Centre, Nangor Road, Dublin 12.

Tel: + 353 1 612 0880 Fax: + 353 1 612 0881 E-Mail: info@prempub.com Website: www.fdbusiness.com Premier Publishing Limited can accept no responsibility for the accuracy of contributors’ articles or statements appearing in this magazine. Any views or opinions expressed are not necessarily those of Premier Publishing and its Directors. No responsibility for loss or distress occasioned to any person acting or refraining from acting as a result of the material in this publication can be accepted by the authors, contributors, editor and publisher. A reader should access separate advice when acting on specific editorial in this publication!

Irish Distillers to invest €150 million in sites in Cork and Dublin.

- 33 E VENT

Design, Origination and Separations by Fullpoint Design (057) 8680873. (086) 1573510

Market-leading food contact conference P&P - takes place this December in Vienna.

PAGE 19

Printed by W&G Baird.

Ian Curle, CEO, Edrington.

Annual Subscription (UK and Ireland) £95 Overseas Subscription £115

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER/OCTOBER 2018

1

M E E R R G G E E R R S S M PepsiCo to Acquire SodaStream International For $3.2 Billion PepsiCo has agreed to acquire SodaStream International, the global producer of home carbonation systems, for $3.2 billion. The transaction will be funded with PepsiCo’s cash on hand. The deal marks another step in PepsiCo’s Performance with Purpose strategy.

“SodaStream is highly complementary and incremental to our business, adding to our growing water portfolio, while catalysing our ability to offer personalised in-home beverage solutions around the world,” says Ramon Laguarta, chief executive of PepsiCo. “From breakthrough innovations like Drinkfinity to beverage dispensing technologies like Spire for foodservice and Aquafina water stations for workplaces and colleges, PepsiCo is finding new ways to reach consumers beyond the bottle, and today's announcement is fully in line with that strategy.”

& &

A C C Q Q U U II S S II T T II O O N N S S A

costs) of $24 million and, after non-recurring supply chain transition costs, a net loss before tax of $12 million. The gross assets of SlimFast at its 2017 financial year end were $136 million. Glanbia plans to operate SlimFast within its Performance Nutrition segment.

Siobhan Talbot, group managing director of Glanbia, comments: “The transaction is in line with our strategic ambition to extend the reach of our Glanbia Performance Nutrition portfolio to related consumer needs.” It is anticipated that the transaction will close before the end of 2018 subject to the customary completion conditions, agreed closing accounts and regulatory approval.

Calbee UK Buys Seabrook Crisps

Ramon Laguarta, chief executive of PepsiCo.

Glanbia to Acquire SlimFast For $350 Million Glanbia, the global nutrition group, has agreed to acquire SlimFast and other brands for $350 million from the owners KSF Holdings and HNS Intermediate Corporation.

SlimFast is a leading weight management and health & wellness brand family distributed primarily in the food, drug, mass and club (FDMC) channel in the US and UK. It is a wellestablished and growing brand with high levels of brand awareness in the US, its largest market.

In 2017, SlimFast delivered $212 million net sales, adjusted EBITDA (before non-recurring

Calbee UK has acquired the Seabrook Crisps business for an undisclosed sum from mid-market private equity investor LDC. The purchase brings the Seabrook brand into the Calbee UK portfolio as well as its equally important bagged snacks private label business.

Seabrook produces a range of crinkle cut, straight cut and lattice crisps, as well as low-calorie snacks, from its headquarters in Bradford in Yorkshire. It manufactures more than 250 million bags of crisps a year, which are enjoyed by consumers worldwide having successfully entered new markets including the United Arab Emirates, China, France, Spain and Australia.

Calbee UK was created in 2015 when parent company, Japanese global snack-manufacturer, Calbee Inc, decided to enter into the well developed UK and European snack mar-

ket, by establishing its first subsidiary in the region. Founded more than 65 years ago, Calbee Inc is one of the largest snack companies in the world, employing more than 3,800 people across 12 different countries.

JDE to Acquire JOBmeal In Sweden and Finland Jacobs Douwe Egberts (JDE) is to acquire JOBmeal in Sweden and Finland from and Valedo Partners Fund II. JOBmeal is a dedicated out of home coffee business, head quartered in Stockholm, offering a range of office coffee solutions to customers in Sweden and Finland.

JDE’s coffee and tea portfolio is available in over 140 countries around the world through iconic household names including: Jacobs, Tassimo, Moccona, Senseo, L’OR, Douwe Egberts, Super, Kenco, Pilao & Gevalia.

JDE recently formed a new joint venture coffee and tea business in Turkey after linking up with Ofcay. The partnership is expected to open up new growth opportunities in the Turkish hot beverages space, create synergies for both companies through the combination of both JDE’s International dimension and expertise in coffee with Ofcay’s local expertise in tea.

on the island of Ireland to form a strong force in the global dairy industry. Lakeland Dairies and LacPatrick Dairies are neighbouring societies and both operate on a cross border basis exporting the vast majority of their output to international markets.

Owned and controlled by farmers, with over 3,200 milk suppliers and a collective milk pool of some 1.8 billion litres, the new co-op will be the second largest dairy processor on the island of Ireland. It will have a combined annual turnover in excess of Eur1 billion. Michael Hanley, chief executive of Lakeland Dairies, will be appointed group chief executive of the new merged cooperative society, which will adopt the name of Lakeland Dairies.

Michael Hanley comments: “I am confident that the best interests of the shareholders and milk producers of both societies will be best served through this merger. The economies of scale achievable by combining both societies will create a larger, more efficient, diversified, farmer controlled, global dairy food group with a broad portfolio of value-added products and brands. Both co-operatives have excellent facilities, technologies and resources with strong synergies across our milk processing footprint and in the markets we serve at home and abroad.”

Lavazza to Acquire Mars Drinks Business

Irish Dairy Co-operatives to Merge Lakeland Dairies and LacPatrick Dairies have agreed to merge.

The amalgamation will bring together two dairy co-operatives

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER/OCTOBER 2018

The Lavazza Group, the Italian and international coffee roaster, has agreed to acquire Mars’ Drinks business, including the Flavia and Klix systems, leading brands in the office coffee service and vending segments. The deal, which has an enterprise value of about $650 million, is in line with Lavazza Group’s

3

M E E R R G G E E R R S S M strategy of consolidation at the international level, and entails the purchase of Mars’ coffee businesses in North America, Germany, the UK, France, Canada and Japan, including its related systems and its production facilities in the UK and United States.

Greencore to Divest US Business in $1 Billion Deal Greencore Group has agreed to sell its entire US business to an affiliate of Hearthside Food Solutions for US$1.075 billion (£817 million) on a cash and debt-free basis. The disposal will leave Greencore focused on the UK convenience food market where it holds leadership positions.

Patrick Coveney, chief executive of Greencore, comments: “Looking ahead, we are confident that we can deliver further growth and returns in the dynamic UK market. The proposed transaction would enhance our strategic and financial flexibility, which would allow us to build on our industry-leading position in our core UK market whilst also taking advantage of emerging organic and inorganic growth opportunities.”

Patrick Coveney, chief executive of Greencore.

Bakkavor Announces £12 Million Strategic Acquisition in UK Desserts Bakkavor Group, a UK-based leading provider of fresh prepared food, has acquired Haydens Bakery from Real Good Food for a consideration of £12 million. Established in

4

& &

A C C Q Q U U II S S II T T II O O N N S S A

1976, Haydens is a leading manufacturer of sweet bakery products for the major UK grocery retailers and provides a distribution operation for one of the UK’s leading retailers. The acquisition of Haydens will increase the breadth and depth of Bakkavor’s desserts range.

Real Good Food will use the cash funds received to reduce the group's indebtedness.

Lactalis Expands in Infant Nutrition With €740 Million Deal Lactalis Group, the international dairy group based in Laval, France, is acquiring the Nutritional business of Aspen Pharmacare for Eur739.8 million. The business being acquired supplies a wide range of infant nutritional and growing-up milk products across both the premium and value segments. It manufactures and markets well established quality brands, including S-26, Alula and Infacare, in sub-Saharan Africa, Australia and Latin America.

The acquisition is in line with Lactalis Group’s strategy to develop a global infant nutritional business to complement its existing global product range.

The deal will strengthen Lactalis Group’s presence in Latin America, Sub-Saharan Africa and Australia.

The Coca-Cola Company to Acquire Costa For £3.9 Billion The Coca-Cola Company has agreed to acquire Costa, which was founded in London in 1971 and has grown to become a major coffee brand across the world. The acquisition of Costa from parent company Whitbread is valued at £3.9 billion ($5.1 billion) and will give Coca-Cola a strong coffee platform across parts of Europe,

Asia Pacific, the Middle East and Africa, with the opportunity for additional expansion. Costa operations include a leading brand, nearly 4,000 retail outlets with highly trained baristas, a coffee vending operation, forhome coffee formats and Costa’s state-of-the-art roastery.

“Costa gives Coca-Cola new capabilities and expertise in coffee, and our system can create opportunities to grow the Costa brand worldwide,” says James Quincey, president and chief executive of The Coca-Cola Company. “Hot beverages is one of the few segments of the total beverage landscape where Coca-Cola does not have a global brand. Costa gives us access to this market with a strong coffee platform.”

Coffee is a significant and growing segment of the global beverage business. Worldwide, coffee remains a largely fragmented market, and no single company operates across all formats on a global basis.

James Quincey, president and chief executive of The Coca-Cola Company.

Cargill’s European Poultry Business Expands into Poland Cargill has agreed to acquire Konspol, one of Poland’s leading value-added food companies, providing an array of products in the chilled convenience, frozen and cold cut categories.

The acquisition marks the introduction of Cargill’s global protein business into the Polish market and strengthens the company’s global poultry footprint, expanding operations to 14 countries.

Cargill will purchase the Polish assets of Konspol’s food and fresh chicken business.

Cargill will also acquire Konspol’s portfolio of products, including branded and private label offerings, as well as its customer and supplier relation-

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER/OCTOBER 2018

ships.

Konspol employs more than 1,700 people in Poland and operates a feed mill, five broiler farms and two processing complexes. The acquisition will increase Cargill’s production capacity and proximity to existing customers to offer expanded value-added and poultry products.

Currently Cargill employs more than 1,700 people in 22 locations across Poland and operates 19 animal feed mills, a premix oriented facility, a wheat glucose syrup and ethanol production plant.

Agrial to Acquire UK’s Largest Independent Cider Maker Agrial, the French farming, food and beverage co-operative, is continuing to pursuing its international development with the acquisition of Aston Manor to expand operations to Great Britain, the largest cider market in the world. Agrial’s Beverage Division is the leading player in the French cider market and is already present in the United States.

Birmingham-based Aston Manor is the UK’s largest independent cider producer and the second leading player in the British cider market. The company was created in 1983 and has been owned by its founders, the Ellis family, since that time.

Finsbury Food Group Buys Gluten Free Bakery Finsbury Food Group, a leading UK speciality bakery manufacturer of cake, bread and morning goods for both the retail and ‘out of home eating’ foodservice channels, has acquired Ultrapharm, a ‘free from’ bakery manufacturer, for £17 million.

The acquisition of Ultrapharm

M E E R R G G E E R R S S M supports Finsbury Food Group’s ongoing strategy to further diversify its product capability into high growth areas.

& &

A C C Q Q U U II S S II T T II O O N N S S A

to plant based food is the essence of our strategy. The acquisition of Abbot Kinney’s is a further step in accelerating growth and innovation in our core categories.

Beyond drinks, the segment of plant based yoghurt alternatives and ice-cream is an excellent and so far mostly untapped growth opportunity for us.”

Wessanen Acquires Plant Based Food Brand Wessanen, a leader in the European market for healthy and sustainable food, has acquired Abbot Kinney’s, a fast growing innovation leader in plant based yoghurt alternatives and icecream. Founded in 2014, Abbot Kinney’s has already built a leading position in its category in health food stores in The Netherlands and has started to build a strong presence in key markets across Europe.

Plant based food is at the heart of the Wessanen strategy and dairy alternatives is one of its core categories. Christophe Barnouin, chief executive of Wessanen, comments: “Driving the change

6

Christophe Barnouin, chief executive of Wessanen.

Valeo Foods Purchases Tangerine Confectionery For £100 Million Valeo Foods Group, the acquisitive Irish and international food business, is reported to have purchased Tangerine Confectionery of the UK for £100 million (Eur112 million) from Blackstone Group. The deal adds

includes Jacob's, Rowse and Balconi.

Barry Callebaut to Acquire Inforum in Russia popular UK confectionery brands such as Dip Dab, Fruit Salad and Blackjack to Valeo Foods Group’s growing portfolio, and will increase annual turnover to in the region of Eur900 million.

Earlier this year, Valeo Foods Group acquired the Confectionery Division of Raisio including a number of established, iconic and growing confectionery brands such as Fox’s Glacier Mints, XXX Mints, Poppets, and Pedro.

Valio Foods was formed in 2010, following the acquisition and merger of Origin Foods and Batchelors, two of Ireland’s most successful branded consumer food companies. Since then, Valeo Foods has successfully completed multiple acquisitions across Ireland, the UK and Continental Europe, to expand its portfolio of market leading products and brands that

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER/OCTOBER 2018

Barry Callebaut Group, the world’s leading manufacturer of high-quality chocolate and cocoa products, has agreed to acquire Inforum, a leading Russian B2B producer of chocolate, coatings and fillings, serving many of the well-known consumer chocolate brands in Russia. This strategic acquisition will strengthen Barry Callebaut’s presence and production capacity in the high-growth Russian market, allow it to expand its market position, to leverage its value-adding Gourmet & Specialties business and to further increase market penetration in CIS countries and export markets.

COVER STORY

Carlsberg Group Making Strong Progress Carlsberg Group plans to invest up to €100 million in the Kronenbourg brewery at Obernai in France – its largest brewery in Europe – as Europe’s second largest brewer continues to make strong progress in implementing its ‘Funding the Journey’ cost saving and profit improvement programme and its ‘SAIL 22’ growth strategy, which are aimed at consolidating its position in developed markets in Western Europe, improving profitability in Eastern Europe and expanding in emerging markets.

T

he investment at the Kronenbourg brewery at Obernai will allow further modernisation and capacity increases as well as capability improvements and advances within Environment, Health & Safety. Carlsberg Group acquired Kronenbourg in

2008.

Kronenbourg is now the leading French brewer. It offers iconic French beers such as Kronenbourg 1664, 1664 Blanc and Tourtel Twist (Alcohol Free) in addition to Carlsberg Group’s successful international portfolio, including Carlsberg and the Belgian abbey beer Grimbergen.

The investment plans follow several years of positive develCees ’t Hart, chief executive of Carlsberg Group. opments in France as well as the recent international success of the Kronenbourg 1664 beers. The Kronenbourg wheat variant, 1664 Blanc, has experienced significant success in recent years, growing an additional 55% in the first half of 2018 and exceeding 100 million litres in volume sales.

“We are proud of our position as the leading French brewer and of the impressive growth of Kronenbourg 1664 inside as well as outside of France. In order to continue to grow, we need to invest,” says Cees ‘t Hart, chief executive of Carlsberg Group.

Sustainable Growth The Kronenbourg brewery investment is in line with Carlsberg Group’s ‘Funding the Journey’ cost saving and profit improvement programme and its ‘SAIL 22’ development strategy, which are designed to deliver sustainable organic top- and bottom-line growth. Following good progress in 2016, 2017 and in the first half of 2018, Carlsberg Group now expects Funding the Journey to deliver more than DKr2.3 billion (Eur308

Carlsberg Group plans to invest up to €100 million in the Kronenbourg brewery at Obernai in France – its largest brewery in Europe.

million), well above the original expectation of DKr1.5-2.0 billion.

Due to the success of Funding the Journey, reinvestments in the SAIL’22 priorities in 2018 are expected to amount to approximately DKr500 million. When Funding the Journey finishes by the end of 2018, the focus on efficiency and costs will remain and will continue to be embedded into business operations and procedures across the group.

Financial Priorities After a solid first half performance, Carlsberg Group is on track to achieve its regional financial priorities for 2018 - to improve margins and operating profit in Western Europe, accelerate organic growth in Asia through premiumisation, and rebalance the focus towards top-line growth in Eastern Europe.

Carlsberg Group increased operating profit organically by 14.2% in the first half of 2018 with all three of its regions - Western Europe, Asia and Eastern Europe – performing solidly. Organic net revenue growth was 5.1%.

In Western Europe, the operating margin improved by 120bp to 13.7%, and organic operating profit grew by 7.8%. The Asia region delivered strong organic net revenue growth of 14.3%, driven by +4% price/mix Snap Pack replaces the plastic wrapping used and 10.4% volume growth. Organic operataround Carlsberg’s six packs with a pioneering ing profit growth was 17.4%. The Eastern Europe business achieved 9.1% organic revtechnology that glues the cans together.

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER/OCTOBER 2018

7

brewing giant include: a switch to Cradle-to-Cradle Certified silver inks on its bottle labels to improve recyclability; a new coating on refillable glass bottles to extend their lifespan and therefore their environmental footprint; and new caps which remove oxygen to make the beer taste fresher for longer.

“We are working hard to deliver on our ambitious sustainability agenda and to help tackle climate change,” says Cees ’t Hart.

“Carlsberg’s Snap Pack will significantly reduce the amount of plastic waste, and we look forward to giving our consumers better beer experiences with less environmental impact.”

As part of its moves to expand its product portfolio to meet changing consumer demands, Carlsberg Group has launched Birell, a new alcohol-free beer brand.

enue growth and advanced its operating margin above last year’s level.

Carlsberg Group has now adjusted its full year earnings expectations upwards from mid-single-digit to high-single-digit percentage organic growth in operating profit. Cees ’t Hart comments: “We delivered strong results for the first six months of 2018 with healthy top-line growth, margin improvements across the regions, strong cash flow and continued debt reduction. We’re pleased to be able to adjust our earnings outlook upwards. This is a proof point that our SAIL’22 investments support our ambition of sustainable top-line growth.”

Sustainability As part of its development strategy, Carlsberg Group recently introduced a new sustainability programme - ‘Together Towards Zero’.

This includes a commitment to eliminate carbon emissions and halve water usage at its breweries by 2030.

The Kronenbourg brewery at Obernai is at the forefront of driving the local implementation of Carlsberg Group’s sustainability agenda. The French brewery has reduced its car- Simon Boas Hoffmeyer, bon emissions by 50% since 2007 and runs Carlsberg Group. on 100% renewable electricity. Furthermore, it generates parts of its own energy from an on-site biogas retrieval plant.

Carlsberg Group is also now operating its first carbon-neutral brewery at Falkenberg in Sweden. The brewery is 100% powered by biogas and green electricity, making it the country’s first big brewery with zero carbon emissions from its energy consumption.

Carlsberg Group aims to eliminate carbon emissions from all its breweries and achieve a 30% reduction in the beer-in-hand carbon footprint by 2030. To this end, Carlsberg Group’s breweries will use 100% renewable electricity and eliminate coal as a source of energy by 2022.

“Climate change is perhaps the most important issue for our society today, both for citizens, governments and companies all over the world,” points out Simon Boas Hoffmeyer, sustainability director at Carlsberg Group. “Carlsberg Group will continue to chase our ambitions and targets, as we strive to brew for a better today and tomorrow.”

World First Carlsberg Group recently launched a series of ground-breaking innovations to reduce plastic waste. This includes its new Snap Pack, which replaces the plastic wrapping used around Carlsberg’s six packs with a pioneering technology that glues the cans together.

A world first for the beer industry, it will reduce the amount of plastic used in traditional multi-packs by up to 76%.

Other sustainable packaging solutions introduced by the Danish

New Alcohol-free Beer Brand Integral to its moves to expand its product portfolio to meet changing consumer demands, Carlsberg Group has launched Birell, a new alcohol-free beer brand. Indeed, the Alcohol-Free Beer (AFB) category has experienced 90% growth during the last ten years.

Birell will initially launch in two styles – Pilsner Lager and Belgian Wit – in Poland and Bulgaria, before a more widespread roll out in 2019.

Shawn Gallegly, vice president Alcohol Free Brews at Carlsberg, comments: “The alcohol-free category has seen huge growth in the last few years as consumers develop greater awareness of the food and drinks they purchase. As a result, more people are opting for alcohol-free drinks, but they don’t want their choices to be limited to water or soft drinks.

They are seeking a wider range of relevant and great tasting refreshment choices. That’s why we created an alcohol-free beer that is uncompromising on taste, quality and enjoyment alike.”

Shawn Gallegly continues: “2017 was a very good year for our alcohol-free brands, and this year, without revealing the numbers, looks even more promising. Bringing the Birell launch to the Carlsberg portfolio further adds to our focus on brewing for a better today and tomorrow. With Birell, it’s a positive approach on living more. By giving consumers the opportunity to enjoy a great tastsustainability director at ing alcohol-free beer, we aim to inspire consumers to fulfil their active lifestyles.”

Craft Beers Carlsberg Group has also been developing its craft beer offering. It has just opened a new craft brewery in Lithuania. The Svyturys Brewery is a joint investment between Carlsberg Group and USbased Brooklyn Brewery, and builds further on the partnership between the two brewers in the European craft beer market.

Svyturys Brewery is the third major joint project between the Brooklyn Brewery and the Carlsberg Group in Europe. J

Carlsberg Group has just opened a new craft brewery in Lithuania.

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER/OCTOBER 2018

9

I BEVERAGES

BrauBeviale 2018 Set to Create Fresh Momentum and Inspire BrauBeviale will once again welcome professionals from the international beverage community to the exhibition halls in Nuremberg from 13th to 15th November 2018.

T

he exhibition team for the world's biggest capital goods fair for the beverage industry this year made use of the scheduled break from the event’s three-year cycle to fine-tune the concept, ask around in the market and track down the hot topics affecting the industry so that they can be addressed in the next three-year programme. This resulted, among other things, in a comprehensive supporting programme that aims to provide impetus for dealing with all the challenges that the beverage sector is currently facing.

Creating momentum and inspiration are the key elements of the supporting programme that BrauBeviale is offering alongside the exhibition. It is designed to appeal to all beverage producers, whether they are brewers, mineral water operations, or manufacturers of spirits or alcohol-free drinks. All of them are basically asking the same questions about the future viability of their company and their sector. “We determined that many people in the beverage industry are currently asking how they will become or remain competitive in the future,” explains Andrea Kalrait, Exhibition Director BrauBeviale.

“As the key platform for the sector we see it as our job to address and discuss these important issues and provide food for thought.”

Professional Development Opportunities For some visitors it is well worth arriving before the fair actually starts to take advantage of the three interesting training events on the day before the exhibition as such.

Almost all beverage producers will have asked themselves at some point whether, and in what form, it would be worthwhile exporting their products. The Export Forum German Beverages will address this very issue. The high-calibre speakers and networking opportunities at the forum will help all manufacturers to make decisions about exporting their products.

The European MicroBrew Symposium hosted by the Berlinbased research and teaching institute for brewing (Versuchs- und Lehranstalt für Brauerei, VLB) will be taking place for the sixth time. With its focus on technological and quality aspects, it is intended for international craft brewers and brewpub operators and

so will also be conducted in English.

Another hot topic among brewers worldwide is heirloom brewer's barley. This will be the focus of the Heirloom & Terroir Barley and Malt Symposium hosted by RMI Analytics. The Heirloom Brewing Award, which acknowledges select beers with a consistent overall concept, will also be presented at the symposium. The beers themselves can then be tasted at BrauBeviale.

BrauBeviale Forum The BrauBeviale Forum will once again take place on all three days of the exhibition. The proven blend of talks, presentations, panel discussions and award ceremonies invites visitors to become informed about current issues and be inspired by exciting ideas and

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER/OCTOBER 2018

11

tors will once again be lucky enough to be able to vote for their favourite beer from among the gold medal winners, resulting in the Consumers’ Favourite 2018 in gold, silver and bronze.

Themed Pavilions Various themed pavilions will present themselves as the focal point for certain issues tailored to specific groups of visitors - Artisan and Craft Beer Equipment and brau@home are where small and microbreweries and home and hobby brewers can find comprehensive information on equipment, ingredients and solutions as well as valuable suggestions through the short presentations in the associat-

approaches. The very wide range of topics includes raw materials, technologies, entrepreneurship and marketing. The language of the forum is German with simultaneous translation into English. The detailed programme will be available in good time on the BrauBeviale website to allow visitors to plan their visit. Also in the Forum: The official opening on the first day will feature a keynote address by food trend researcher Hanni Rützler as well as the presentation of the Bavarian Beer Medal. At 16:00 on Day 1, visitors can also attend the Final of the German Beer Sommelier Championship.

Tastings of Beverage Specialities Anyone wanting to explore and indulge in the diversity of beverage specialities should head for the Craft Drinks Area. With a total of around 7,500 participants over the three days of the last event, it represented a logical development of the Craft Beer Corner from the last trade fair cycle. This is where visitors can enjoy tastings conducted by independent experts at a total of eight bars, while immersing themselves in what are sometimes completely new taste experiences. As well as the glass bar, where you can experience how the quality of the glass can affect the taste of the beer, there is also one bar each for mineral water, spirits and innovative alcohol-free drinks. There are four bars dedicated to beer that showcase specific

ed Speakers’ Corner. Another pavilion is devoted to ‘Sustainable Water Management in the Beverage Industry’, an issue that affects all drinks manufacturers and is becoming increasingly important at a time when raw material resources are becoming increasingly scarcer.

For consumers, the packaging at the point of sales continues to be a key purchasing criterion. The World Packaging Organization has given this aspect the attention it deserves with its Special Show Innovative Beverage Packaging. Interesting examples of packaging innovations are provided by the winners of the World Packaging Awards that will be presented at the special show. The reasons why these products won their awards will be explained clearly to visitors.

PET continues to be a topical and important issue. The quality association Wertstoffkette PET-Getränkeverpackungen will cover various approaches and present ideas and solutions for PET recycling.

Spotlight on the Future To be able to continue to operate successfully on the market in future, every company needs to be able to count on its workforce. The issue of the lack of skilled employees at all levels is one that also affects the beverage industry. As the key platform for the sector, BrauBeviale has dedicated the last day of the fair, the Thursday, to the theme ‘Future

countries and themes as well the diversity of alcohol-free and lowalcohol beers.

As tradition demands, the European Beer Star, which has been part of BrauBeviale since it was ‘born’ in 2004, will also be awarded again at the event. In 65 categories, five more than in the previous year, breweries from all over the world can submit their beers for inclusion in one of the most important beer competitions worldwide. Last time the competition attracted 2,151 beers, 60% of which were from overseas. The competition was initiated by the German Private Breweries Association (Private Brauereien Bayern), the honorary sponsor of the fair, and the German and European umbrella organisations. On the first day of the fair, BrauBeviale visiFOOD & DRINK BUSINESS EUROPE, SEPTEMBER/OCTOBER 2018

13

Generation’. At the BrauBeviale Forum there will be presentations specifically on the topic of recruiting and encouraging the next generation. On this day, many exhibitors will have representatives of their HR department at their stands to answer in detail any specific or general questions.

Young companies from Germany that develop innovative products and processes for the beverage industry that they would like to bring onto the market in the near future, or have just launched on the market, will showcase their companies and ideas to the professional community at the Innovation made in Germany Pavilion. Their participation is subsidised by the BMWi, the German Federal Ministry for Economic Affairs and Energy. Many a former participant in this pavilion has meanwhile become a permanent fixture in the beverage industry.

Beyond Beverages With so much going in the beverage sector it only stands to reason that we should take a look at other culinary pleasures. With this in mind, the SFC Street Food Convention will take place alongside the BrauBeviale from 14–15 November 2018. For the fourth time, it will

offer a varied programme covering all aspects of street food, food trucks, mobile catering and visionary dining culture, accompanied by a sponsor exhibit and food trucks serving food on the trade fair grounds. J

I BRAUBEVIALE 2018 PREVIEWS

Petainer – Introducing the Next Generation of One-way Kegs etainer is the global leader in one-way PET kegs serving markets around the P world, including Europe, Russia, North and South America and Asia. The petainerKeg range is tailored to the needs of customers, offering versatility and flexibility, and providing superior economic

and sustainability benefits.

The petainerKeg portfolio has been designed by the company’s polymer scientists and technical experts to meet different market requirements. The kegs meet the highest industry standards for safety and product protection and are trusted by Carlsberg and other global brewing brands.

New petainerKeg Hybrid Lightweight in design, the new petainerKeg Hybrid is suitable for both hand and automatic fillers, making it fully compatible with steel keg lines. Providing enhanced benefits throughout the supply chain, the Hybrid has universal compatibility from the point of production to the point of sale which means it can be used in retail outlets anywhere in the world with little or no investment required to switch

from traditional steel kegs.

Petainer had specifically designed the keg to offer you superior stacking and stability, to deliver significant cost savings in terms of your logistics and to reduce your carbon footprint across the supply chain in key stages from filling, transportation and recyclability.

Visit the Petainer stand at BrauBeviale to find out more about the company’s range of kegs and how its products can help you grow and transform your business - Hall 4 Stand 4-137.

For more information, please visit www.petainer.com. J

Bucher Unipektin AG – Competence Center Filtration his year we present ourselves under the T new brand as your specialist for filtration in beverage production. After the merger of Bucher Filtrox AG with its mother company Bucher Unipektin AG, a new company emerged with the name Bucher Unipektin AG - Competence Center Filtration. By this, the position of Bucher Unipektin was reinforced as leading producer of machines and lines for the beverage industries.

Bucher Unipektin AG Competence Center Filtration is the world leading manufacturer of microfiltration and turn-key filtration systems for the beverage and beer industries. Apart from the well-known can14

dle filter for the pre-coat filtration with Kieselgur and PVPP, we also develop, design, and manufacture (other) advanced technologies such as filter systems for beerrecovery or filters for sugar syrup filtration and much more.

Bucher Unipektin AG – Competence Center Filtration offers you, as your partner of first choice, the latest technology as well as proven experience for filtration, stabilisation and beer recovery. Bucher Unipektin is globally present. Own sales and service companies offer competent and fastest support worldwide.

Visit us at Hall 9 Stand 9-320. J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER/OCTOBER 2018

I BRAUBEVIALE 2018 PREVIEWS

Sustainable Solutions For Every Inch of Your Beverage Application egardless of what beverage type you R produce, a reliable operation is paramount to the success of your application.

Unplanned downtime caused by components that were never intended for a beverage processing line can be avoided if you choose a supplier with the experience and knowledge to specify your operation properly.

Magnetflex® Curve System At Brau Beviale 2018 Rexnord will present some of the latest innovations. The first innovation is Rexnord’s patented Magnetflex® Curve System. We developed the innovation as we understand that conveying glass containers, cans and PET bottles around curves can be challenging as chains can fall out of place, be noisy, hard to clean and consume large amounts of energy. These problems are resolved with this solution, which combines magnets and ultra low friction (ULF™) material to reduce downtime, noise and energy consumption.

The Magnetflex Curve System integrates magnets into the plastic curve track on the upper part to cover almost the complete base of the curve. This unique

design keeps steel chains and plastic chains with steel pins securely in place as it goes around the curve. The magnetic pull stays constant throughout the life of the Magnetflex System, helping to make the system virtually maintenance free.

When the system is stopped for sanitation or maintenance, the chain is easily lifted from the track to be cleaned and

inspected.

New ART™ Dynamic Chain The other innovation that Rexnord is presenting at Brau Beviale 2018, is the new ART™ Dynamic Chain, which has the ability to create multiple behaviors –zero back line pressure, rotation, acceleration, deceleration, low pressure accumulation, metering, and sequencing–in one single conveyor design, unlike others that require multiple conveyors to perform those behaviors.

Rexnord Dry-PT Material Next to these two new innovations, we will highlight our Rexnord Dry-PT Material.

This material will help set a sustainable conveyor standard for the future. Our DryPT Material has proven to be the first plastic chain material to provide the required low friction against PET on a constant level over time, where other plastic chain materials always show a permanent increase of friction level after hours of running. It has been developed specifically for high-speed conveying applications for PET containers where the goal is to run without or with minimal external lubrication.

Please come visit our booth (HALL 7A, STAND 425) and meet Rexnord’s skilled Engineers who will help you understand our complete product portfolio and support you to find the perfect conveying solutions for your application. For further information visti www.rexnord.com. J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER/OCTOBER 2018

15

I BRAUBEVIALE 2018 PREVIEWS

Gerhard Schubert at BrauBeviale 2018 – Hall 8, Stand 418 rom November 13 to 15, Schubert will be presenting the F Innopack-TLM block packaging system which was developed with the company’s collaboration partner KHS. The block system seamlessly combines a Schubert TLM packaging machine with a KHS packer.

For this self-contained total solution, the companies have combined their expertise to offer beverage producers a complete and powerful package to fill and pack their products. The Innopack-TLM can be used to pack several different bottle and end-packaging formats – very efficiently and in the tightest of spaces. J

Inline – from the bottling system to the pallet without interruption. The machine is clearly laid out, ideally accessible and compact. Operation is easy and comfortable via a central touch screen.

Eaton to Present Filtration Solutions For Clear, Stable and Tasty Beverages he Filtration Division of power management company Eaton T will demonstrate how multiple filtration solutions designed for beverage applications work together for clear, stable and tasty beverages at BrauBeviale in Hall 7, Booth 202.

One highlight is the extended BECO® filter cartridge offering including filter cartridges that are exactly tailored to the specific requirement profiles of beer, mineral water, wine, non-alcoholic beverage and food filtration. Dependent on the customer focus, whether performance, safety, economy, flexibility or the preservation of individual taste and colour, Eaton application experts can recommend the perfect combination of pre-filter and membrane filter cartridges for a given application.

Eaton will also showcase the mineral-free BECOPAD® depth filter medium. Also available alongside the flat sheet are the BECODISC® stacked disc cartridge and BECO PROTECT® CS Cell Stream depth filter cartridge.

The high-quality, high-performance BECOPAD material filters safely yet gently, preserve the valuable hop oil aromas in the sensory profile of beers. The compact and closed design of the stacked disc cartridge provides a large filter area in a small space and allows easy handling, as well as easy sterilization and cleaning. As a fine filter, the BECO PROTECT CS CellStream depth filter cartridge pro-

BECOPAD is an innovative depth filter medium for the filtration of beverages.

16

BECO PROTECT® pre-filter cartridges and BECO MEMBRAN PS membrane filter cartridges from Eaton’s filter cartridge range can be optimally combined to achieve the desired filtration objective.

vides optimal protection for downstream membrane filter cartridges, as it is excellent at reducing fine colloids and microorganisms.

In addition, as a one-stop shop of filtration products, Eaton is presenting filtration systems and housings for its ranges of filter sheets, stacked disc cartridges, filter cartridges and filter bags. The exhibition program is rounded off by beverage treatment products for clarification, fining and stabilization as well as filtration products and filter aids for from pre-coat to sterile filtration. Each product is geared towards the beverage industry and combined with one another to help produce high-quality beverages that meet taste, colour, aroma and shelf life requirements.

Eaton’s Filtration Division is a leader in liquid filtration that can help companies improve product quality, increase manufacturing efficiency, protect employees and equipment, and help achieve sustainability goals. Eaton employees around the world make a difference for their customers by creating an exceptional customer experience, solving problems with application expertise and developing innovative filtration solutions. Eaton’s filtration products are manufactured and sold worldwide. For more information, visit Eaton.de/filtration. J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER/OCTOBER 2018

I NUTRITION

Stay Ahead of the Healthy Eating and Tech Trends at Food Matters Live 2018 rom clean eating to revolutionary food tech, discover the global trends and innovations changing the way we eat at Food Matters Live 2018. Whether it's the longevity of the free-from boom, plant-based proteins in sports nutrition or game-changing food tech, business leaders, policy makers, manufacturers and health professionals will debate the future of food and drink when Food Matters Live returns to London ExCeL from 2022 November.

The big issues, from the future for food design and sustainable diets to the challenges and opportunities posed by Brexit, the impact of calorie reduction targets and the sugar tax will be tackled by senior figures from across the sector on the main conference stage. The line-up includes: Public Health England's chief executive Duncan Selbie on calorie targets and tackling obesity, Blue Planet II executive producer James Honeyborne on plastic waste, Britvic's Matt Barwell on next steps for sugar reduction, Marije Vogelzang, of the Design Academy Eindhoven, on eating design for the future and McDonalds UK chief executive Paul Pomroy and Leon co-founder Henry Dimbleby on healthy eating trends for restaurants.

F

Insights Meanwhile, hundreds of experts will offer insight and new ways of working on issues from packaging, new product development and functional foods to post-GDPR marketing and changes in the children's food aisle in a series of seminars grouped around key health and wellbeing themes: retail trends, future technologies, nutrition for health and wellbeing, the future of free-from, packaging, marketing and tackling obesity.

From raw kale chips to vegan churros and tahini energy bars and organic mochachino drinking chocolate, the latest natural, nutritious and ethical products will be showcased in the Food Matters Live exhibition, featuring 800 manufacturers and ingredient suppliers in zones reflecting growth areas including healthy snacking, free-from and sports nutrition.

Among them, the Drink Well Zone will feature some of the latest functional and healthy drinks while the Start Up Zone hosts innovations from the newest entrepreneurs and the Research Hub offers insight into science and tech advances reshaping the sector.

latest exciting ingredients from no-salt, no-sugar Huegli flavoured oils and antioxidant-rich prickly pear cactus water to ‘sugar displacement product’ avante and organic blueberry powder for use in smoothies, yoghurts and muffins.

And a cast of international presenters will host live cooking demonstrations and installations on the exhibition floor, including, new for 2018, the Innovative Ingredients Live theatre, which will look at the science behind new functional ingredients and nutraceuticals from natural flavouring for meat substitutes to tiger nuts.

There will be plenty of business opportunities for buyers to meet innovative food producers and ingredient suppliers using Match, a dedicated matchmaking service.

Food Matters Live is on at London's ExCeL from 20 to 22 November 2018 and is free to attend if you pre-register, including entry to the conference, seminars and visitor attractions. Register now for free entry at www.foodmatterslive.com. J

Exciting Ingredients With the largest gathering of ingredients companies in the UK, Food Matters Live offers an unmissable chance to learn about the FOOD & DRINK BUSINESS EUROPE, SEPTEMBER/OCTOBER 2018

17

I DISTILLING

Edrington Unveils New £140 Million Home of The Macallan Edrington, the international premium spirits company, has opened the doors to its new distillery and visitor experience for The Macallan brand, the leading single malt Scotch whisky by value in the world. he new distillery and visitor centre, which is located on the Easter Elchies estate on Speyside in Scotland, will enable The Macallan to increase production by a third if required.

Edrington is investing £500 million in the brand of which the £140 million distillery is the centrepiece. This programme increases investment in whisky, warehousing, and particularly in The Macallan’s signature sherry-seasoned oak casks.

The new distillery is designed to ensure the ongoing quality control of the production of The Macallan and to further consolidate the brand’s position as one of the world’s leading luxury spirits.

T

Architecture The new home of The Macallan is the first distillery on Speyside to be designed by an internationally acclaimed architect - Rogers Stirk Harbour + Partners, who were selected to lead the project after an international competition. It is characterised by dramatic, contemporary architecture to blend with the landscape, while retaining traditional aspects such as the distinctive stills design.

The striking piece of architecture is cut into the slope of the land to minimise the visual impact on the local Speyside scenery, which is classified as an Area of Great Landscape Value. The undulating timber roof is a highly complicated structure, comprising 380,000 individual components.

Elgin-based Robertson delivered the complex architectural design, working with 25 contractors. During construction, up to 400 people specialising in more than 20 different trades were employed on site. The new stills were crafted by Scottish coppersmiths Forsyths, who have been making the brand’s distinctive, ‘curiously small’ stills for The Macallan since the 1950s.

According to Graham Hutcheon, managing director, group operations at Edrington: “The successful construction of this exciting new distillery and visitor experience has been made possible

The new distillery is designed to ensure the ongoing quality control of the production of The Macallan and to further consolidate the brand’s position as one of the world’s leading luxury spirits.

The Macallan brand is the leading single malt Scotch whisky by value in the world.

through hard work, commitment, innovation and collaboration driven by our team. Our partners Robertson, Forsyths, and RSHP have been with us on every step of the journey and the success of the project has been due to their dedication, professionalism and unwavering commitment to excellence.”

Enhancing Efficiency and Sustainability The new distillery and visitor experience for The Macallan brand is just the latest illustration of how Edrington, like other distillers, has been constantly refining all aspects of the production and supply chain in order to enhance both efficiency and sustainability. Many distillers have been increasing their use of automated bottling and packaging lines and extending automated warehouse capacity.

As part of its move further into automation, Edrington started using plastic pallets six years ago. Goplasticpallets.com, the UK’s leading independent supplier of plastic pallets, pallet boxes and small containers, recommended a switch from wooden to plastic pallets for a durable and costeffective solution capable of withstanding the tough manufacturing environment, which involves a high level of automation – essential as each pallet can carry £60,000 worth of spirits.

Ian Curle, chief executive of Edrington.

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER/OCTOBER 2018

19

third party agreements.

The group’s ‘Edrington 2020’ development strategy prioritises further enhancing The Macallan brand, accelerating the growth of Highland Park, and further developing the group’s super premium capability, while optimising its regional power brands.

The new home of The Macallan is characterised by dramatic, contemporary architecture to blend with the landscape. Picture by Mark Power.

“Our plastic pallets offer significant benefits over traditional wooden ones for distillers looking to improve the efficiency and sustainability of their supply chains,” explains Jim Hardisty, managing director of Goplasticpallets.co.uk. “Our plastic pallets are moulded under extreme pressure in highly polished moulds which ensures consistent dimensional accuracy and loading capacities.”

In addition to consistency of performance, other benefits include easy cleaning, moisture resistance, safer handling and longer lifespan. “In a closed loop distribution scenario with normal handling and loading within design limits, a plastic pallet has the potential life span of 10–20 years. When compared with a wooden pallet, this extended life could be as much as 10 times longer,” adds Jim Hardisty.

Financial Performance For the year ended 31 March 2018, Edrington delivered core revenue (revenue from branded products at constant currency) of £706.7 million - up by 7% on the previous year – with profit before tax 3% higher at £194.7 million. Brand investment was increased by 5% during the financial year to £125.7 million.

In addition to higher levels of investment in brand advertising, Edrington’s 2020 Strategy was also supported with increased innovation and greater focus on consumers, which all contributed to a solid performance.

“2017-18 was a strong year of growth and increased investment for Edrington,” says Ian Curle. “Economic and market developments remain encouraging in the near term. All regions are experiencing an upturn in economic growth and Scotch whisky exports are also in growth. The premium segment of Scotch whisky and other spirit categories is the fastest growing, reinforcing Edrington’s emphasis on premium brand building.”

Significant Benefits The new home of The Macallan is expected to deliver significant benefits for the local tourism industry, Scotch whisky exports, and the Scottish economy. Ian Curle, chief executive of Edrington, says: “The unsurpassed quality of The Macallan is in high demand and we face the future confidently with this new distillery. It’s an authentic, abiding, ambitious investment that will match consumer expectations for generations to come.”

In addition to The Macallan, Edrington owns some of the leading Scotch whisky and spirits brands, including The Famous Grouse, Highland Park, Cutty Sark, The Glenrothes, Brugal rum, Snow Leopard vodka and Tequila Partida, which was added to the portfolio in 2016.

Global Ambition Edrington focuses on the fast growing premium and super-premium sectors of the global spirits market. Indeed, its ambition is to become the world’s leading premium spirits company.

Headquartered in Scotland, Edrington currently employs around 3,000 people across its operations and joint ventures globally, with over 70% engaged overseas. Edrington owns its route to market in 13 countries, and operates the remainder through joint venture and

Greater Focus Reflecting this approach, Edrington plans to dispose of its Cutty Sark and Glenturret brands to enable greater focus and investment to support the long-term growth of the company’s premium portfolio including The Macallan, The Famous Grouse, Highland Park, The Glenrothes, and Brugal rum. “Premium spirits is the fastest growing area of the spirits market. Focusing our resources and investment on the brands best equipped to compete powerfully will help Edrington to capitalise on the long term prospects from premium spirits,” Ian Curle points out.

Edrington also recently expanded its portfolio of premium spirits into the American whiskey category by forming a strategic partnership with Wyoming Whiskey. Ian Curle explains: “This deal is a further step towards becoming the world’s leading premium spirits company and adds to a brilliant year in which we opened our award-winning distillery and brand home for The Macallan.”

Outlook Although consumer trends are encouraging, the geopolitical context, including Brexit, remains uncertain. “Despite ongoing geopolitical uncertainty we are confident about the medium and long term prospects for the business and will continue to invest in our people, brands, and processes,” says Ian Curle. “With its premium brand portfolio, proven strategy, and management capability, Edrington remains well-positioned to deliver further growth.” J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER/OCTOBER 2018

21

I DISTILLING

Chivas Brothers Starts £50 Million Expansion Chivas Brothers, the Scotch whisky and premium gin business of Pernod Ricard, has started construction work on a new world-class bottling hall at its Kilmalid site in Scotland. world’s most revered Scotch whisky brands including Chivas Regal, Ballantine’s, Royal Salute and The Glenlivet. These whiskies are also part of Pernod Ricard’s collection of Strategic International Brands.

Headquartered in Scotland, Chivas Brothers employs more than 1,600 people and operates 29 sites, encompassing 13 malt distilleries, a grain distillery, two gin distilleries, two bottling facilities and 300 bonded warehouses containing an extensive aged inventory of more than six million casks.

Alexandre Ricard, chairman and chief executive of Pernod Ricard.

he £50 million expansion project, which is part of Pernod Ricard’s continued investment in its UK business, will greatly enhance Chivas Brothers’ capabilities and bring outstanding performance in quality, safety and efficiency. Chivas Brothers is the only Pernod Ricard business dedicated entirely to Scotch whisky, including a prestigious range of single malt and blended whiskies.

The portfolio incorporates some of the

T

Return to Growth The £50 million investment comes as Pernod Ricard reports that its Scotch whisky portfolio and the flagship Chivas brand returned to growth during its 2018 financial year. Chivas, Ballantine’s and The Glenlivet all achieved organic sales growth of 5% but Royal Salute declined by 2%.

Indeed, Ballantine’s breached the 7 million cases barrier during the year. Pernod Ricard’s total Scotch business grew by 3% in the 2018 financial year after a static 2017. The revival has been driven by the rise in popularity of premium spirits and through innovation.

Pernod Ricard’s Scotch whisky portfolio and the flagship Chivas brand returned to growth during the 2018 financial year.

The recovery in its Scotch whisky business helped Pernod Ricard to deliver group sales of Eur8.99 billion for its 2018 financial year, after accelerating its organic sales growth to 6.0% from 3.6% the previous year.

Chivas Brothers is the Scotch whisky and premium gin business of Pernod Ricard.

Pernod Ricard also increased the rate of organic growth - from 4% to 7% - of its 13 Strategic International Brands, with 11 in growth. Martell cognac (+14%) and Jameson Irish whiskey (+14%) performed particularly strongly during 2018, and the Scotch whisky portfolio resumed growth.

Group profit from recurring operations (PRO) at Eur2.358 billion was up 6.3% organically as the PRO margin rose by 14bps organically.

Strong Year Alexandre Ricard, chairman and chief executive of Pernod Ricard, comments: “FY18 was a very strong year. Consistent strategic implementation has enabled us to deliver a significant improvement in business performance while investing for the future. Our sales have accelerated and diversified, and our margins improved. In FY19, in a still uncertain geopolitical and monetary environment, we will continue consistently implementing our strategy. Our guidance for FY19 is organic growth in profit from recurring operations between +5% and +7%.”

Pernod Ricard has adopted a three pronged strategy. The French drink giant is premiumising its portfolio through new products and line extensions, while identifying new moments of convivialité within

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER/OCTOBER 2018

23

those who want to celebrate life with a truly luxurious and unique spirit that has been designed specifically with the energy of the consumption occasion in mind. A disruptive move for the category, Chivas XV presents a more contemporary side to Scotch, and encourages whisky drinkers to create memorable experiences that live on long after the celebration.” Chivas XV is being rolled out globallywith a RRP of $69 for one litre.

The launch follows the success of Chivas Extra, which has grown by 131% since its introduction in 2015 and sold 268,000 cases in over 90 markets last year.

the luxury world and optimising its pricing.

Growth in Luxury Pernod Ricard’s Le Cercle portfolio of prestige Champagnes and spirits is growing at a much faster pace than overall group average, exhibiting 10% growth in 2018.

Chivas Brothers’ excusive Scotch whisky brands - Chivas Regal 25 Years Old, Chivas Regal ULTIS, Chivas Regal The Icon, Royal Salute blended Scotch whisky, and The Glenlivet 18 Years Old and older whiskies - feature prominently within this collection, along with Perrier-Jouët champagne, Absolut Elyx vodka, Plymouth Gin and Martell Cordon Bleu.

“The aperitif moment is growing,” points out Alexandre Ricard, chairman and chief executive of Pernod Ricard.

“Premiumisation and luxury is growing. Le

Jean-Christophe Coutures, chairman and chief executive of Chivas Brothers.

which to enjoy their favourite spirit. Enter Chivas XV – the perfect expression for

The Chivas Brothers portfolio incorporates some of the world’s most revered Scotch whisky brands including Chivas Regal, Ballantine’s, Royal Salute and The Glenlivet.

Acceleration “Our Scotch business is accelerating,” says Jean-Christophe Coutures, the newly installed chairman and chief executive of Chivas Brothers. “100% of the margin from new products is going back into NPD, and the £50 million going into the expansion of our bottling facility in Kilmalid marks a new era for Scotch.”

Indeed, Scotch whisky exports reached a record high of £4.37 billion in 2017 after increasing value sales by 8.9% during the year as volumes rose 1.6%, according to analysis by the Scotch Whisky Association.

Exports of single malt Scotch whisky are also continuing to grow, with sales up 14% to £1.17 billion in 2017. This was the second consecutive year that single malt exports exceeded the £1 billion mark, fuelled by the global consumer trend towards premium products.

“Single malt continues to grow significantly, boosting again the value of our exports,” remarks Karen Betts, chief executive of the Scotch Whisky Association.

“There are signs too that the market for blended Scotch whisky is improving. This is a welcome indicator of future growth.

Blended Scotch is the solid foundation on

Cercle, is also growing by 10%. Three years ago, we were very clear that we would reach top line growth of between 4% and 5%, and we believed this growth would come from diversified sources.”

Innovation Innovation continues to contribute significantly to Pernod Ricard’s top line growth, delivering 2% of the total 6% organic sales improvement in 2018. In this respect, Chivas Brothers has just launched Chivas XV, a 15-year-old blended Scotch whisky aged in cognac casks from Grand Champagne. Chivas XV is intended to shake up the category by challenging conventions around how and when to enjoy Scotch whisky.

Richard Black, global marketing director at Chivas Regal, explains: “We know that Scotch whisky fans love Chivas’ generous house style but are also looking to experiment with new tastes, and find new ways in

Chivas Brothers has started construction work on a new £50 million bottling hall at its Kilmalid site in Scotland.

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER/OCTOBER 2018

25

which our global export success has been built.”

Chivas Brothers has just launched Chivas XV, a 15year-old blended Scotch whisky aged in cognac casks from Grand Champagne. Chivas XV is intended to shake up the category by challenging conventions around how and when to enjoy Scotch whisky.

Brexit Although global consumer trends are conducive to continued export growth for the Scotch whisky industry, the geopolitical outlook, especially regarding Brexit, is uncertain and challenging. “Whatever the outcome of the Brexit negotiations, there will be people, there will be bars, there will be consumption. We will still be one of the key exporters from the UK,” says Alexandre Ricard. “In the worst case scenario Scotch will be subject to WTO (World Trade Organisation) rules.”

The Pernod Ricard head points out that the likely outcome of Brexit changes daily, depending upon the state of negotiations between the British Government and the European Union. “The key point is not to have one scenario but to make sure that we have the flexibility to adapt.”

Alexandre Ricard elaborates: “I think it is better to sit back and make sure we have the possibility to adapt. In the short term, we might have some hurdles but so what?

We operate in 86 different markets and

we handle problems.”

Investment in Irish Whiskey In addition to Scotch whisky, Pernod Ricard is also investing heavily in its Irish whiskey business – Irish Distillers.

Having spent Eur400 million since 2012 to double its production and bottling capacity to meet global demand for its products, Irish Distillers has just announced further investment of over Eur150 million at its sites in Cork and Dublin as the Irish whiskey renaissance continues. The rapid expansion in Irish whiskey sales globally is being spearheaded by Irish Distillers’ flagship Jameson brand, which is now in double or tripledigit growth in more than 80 markets across the world. J

I DISTILLING

Irish Distillers to Invest €150 Million in Sites in Cork and Dublin rish Distillers has announced investment IDublin of Eur150 million at its sites in Cork and to meet growing demand for its products as the Irish whiskey renaissance continues apace. The rapid increase in global sales of Irish whiskey has been spearheaded by the group’s flagship Jameson brand, which is now exhibiting double or tripledigit growth in more than 80 markets across the world.

Nearly Eur130 million is to be spent expanding and upgrading the distillery in Midleton and the nearby maturation site in Dungourney, County Cork, while over

Eur20 million is being invested in development of the bottling plant in Fox and Geese in Dublin.

Conor McQuaid, chairman and chief executive of Irish Distillers, comments: “This Eur150 million investment in Midleton, Dungourney and Fox and Geese reflects the growing international success of Irish Distillers’ whiskey portfolio. With a tradition dating back to 1780, we have been distilling in the Midleton Distillery since 1975 and we are delighted to confirm our commitment to this tradition, and at the same time continue to embrace progress, delivering new and

Nearly Eur130 million is to be spent expanding and upgrading the distillery in Midleton and the nearby maturation site in Dungourney, County Cork, while over Eur20 million is being invested in development of the bottling plant in Fox and Geese in Dublin.

Conor McQuaid, chairman and chief executive of Irish Distillers.

innovative expressions of Irish whiskey. We look forward to building upon our success story by continuing to bring innovative Irish whiskeys to the market.”

He continues: “Irish whiskey is the fastest growing premium spirit in the world, with sales now accounting for more than one third of all Irish beverage exports. This investment will help to allow this growth to continue for years to come. The company is proud to play its role in the Irish drinks industry, which is a hugely important part of the Irish economy.”

Irish Distillers, which is the Irish whiskey business of Pernod Ricard, has already invested over Eur400 million since 2012 to double its production and bottling capacity to meet global demand for its products. J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER/OCTOBER 2018

27

I DISTILLING

Briggs of Burton Provides Strong Process Engineering Capability and Distilling Expertise riggs of Burton are proud to have been associated with Chivas B Brothers and to have worked closely with their engineering team to expand a number of their Scottish malt distilleries.

Briggs of Burton, which is headquartered in Burton on Trent, provides engineering services to many blue chip companies across a number of industries including: brewing, distilling, food, pharma, and biotech. Briggs distilling group specialise in projects ranging from feasibility studies, distillery equipment, and the implementation of large turn-key projects.

Briggs of Burton has offices in the UK, USA and more recently expanded into China. The company now employs over 150 staff in a variety of roles and works on high profile engineering projects across the globe including: North America, Central America, Europe, Africa, Australia, Japan and China.

Briggs of Burton have a commitment to reducing accidents and injuries across all their engineering projects and works closely with the world’s largest spirit producers including Chivas Brothers, Diageo, and Beam Suntory. Aiming to raise awareness of the need for ongoing training and support for staff in the workplace and on site to meet the Zero Harm Initiative.

Briggs of Burton were acquired by the CETP group in 2016, which includes the brewery equipment and tank provider Ziemann Holvrieka, who have supplied a number of spirit vats to Chivas Brothers from their European production facilities. Since the acquisition several capital projects around the world including recent ones in the US and Mexico have benefitted from Briggs strong process engineering capability and distilling expertise, combined with the world class tank manufacturing capability of Ziemann Holvrieka. J

28

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER/OCTOBER 2018

I BEVERAGES

Brewers and Distillers ‘Leave the Wood’ and ‘Go plastic’ hen sourcing pallets for handling spirits and other alcoholic beverages, safety W in the supply chain is a primary consideration. The alcoholic drinks industry invests in customised pallet solutions – pallets that are suitable for use in automation, whether that’s being moved by forklifts, handled by automated conveyors or stored in high bay racking systems.

Switching from traditional wooden pallets to plastic pallets is a trend that has taken hold in Europe’s alcoholic beverage industry as manufacturers are experiencing the many benefits which, to name a few, include safer handling, consistent dimensional accuracy and loading capacities, longer life span and recyclability!

Dranken Pallet Beheer in Holland is a prime example. This association of breweries and beverage producers including

Edrington has been using plastic pallets for six years.

Heineken, Bavaria, Grolsch, Inbev, and Vrumona ordered 400,000 plastic beverage pool pallets in 2012, to replace their wooden pallets, and have been using them effectively ever since.

The UK recently began to follow suit as the popularity for plastic beverage pallets continues to grow, however, some spirits manufacturers – like Edrington – have been reaping the benefits of ‘going plastic’ for many years.

The premium spirits company BPPi9 Beverage Pool Pallet 6R. approached Goplasticpallets.com six years ago when it needed help with its also added to meet their specific requirelogistics, and the solution – which has been ments. working seamlessly to date – is proof why At Goplasticpallets.com, we offer over more companies should ‘Leave the wood. 120 different styles of plastic pallets and Go Plastic’ – the theme of pallet boxes, including the APB1210 Pool Goplasticpallets.com’s main marketing Perforated 5R Pallet, which Edrington campaign. chose and also the industry specific BPPI9 Goplasticpallets.com recommended a Beverage Pool Pallet 6R, which is made switch from wooden to plastic pallets for a from recycled HDPE and our Keg S9 durable and cost-effective solution capable Pallet, which can hold up to eight 50-litre of withstanding the tough manufacturing kegs. environment, which involves a high level of In fact, Goplasticpallets.com holds over automation – essential since each pallet can 12,000 plastic pallets in stock, all available carry £60,000 worth of spirits. for quick delivery. For further information Edrington ordered 1,400 of the compa- visit www.goplasticpallets.com or contact ny’s reusable and recyclable APB 1210 Pool the company’s expert sales team on Tel +44 Perforated 5R pallet, which is made from (0)1323 744057 or by Email sales@goplasrecycled polypropylene. Anti-slip strips were ticpallets.com. J

I PLASTIC PACKAGING

A Site To Behold easom Freer are extremely proud to unveil their brand new and improved e-commerce website, available to view at www.meaM somfreer.co.uk. Many months in the making all the hard work has been worth it because their fresh site now boasts brand new features and pages such as buying on account, quick re-ordering from previous orders and soon to be added storing items as favourites.

The whole site now has a simpler navigation system and a userfriendly focus. Register now to buy plastic bottles, caps, pumps, jars, measuring scoops, boxes, hand scoops and fasteners, minimum order just a single box with next day delivery on stock items.

Contact their Sales Team now at sales@measomfreer.co.uk, Tel +44 (0)116 2881588 or buy online at www.measomfreer.co.uk. J FOOD & DRINK BUSINESS EUROPE, SEPTEMBER/OCTOBER 2018

29

I FOOD SAFETY

Thought for Food: How Digital Is Changing the Food Supply Chain

By Jeffrey Van Pelt ood is essential, but when it’s contaminated, it can be detrimental to people’s F health. While the European Union has one of the safest food supplies in the world, the World Health Organisation estimates that over 23 million people in the European region become sick every year from eating contaminated food, resulting in 5000 deaths.

Not only are these outbreaks hard to trace, they are also are expensive.

A 2011 E. coli outbreak in Germany cost over €202 million just in emergency aid to 22 European states, and the industry lost a whopping €1.1 billion. Recently, 147 cases of salmonella were reported across five European countries. Though researchers linked the outbreak to cucumbers, they could not definitively pinpoint the source, leaving the door open for future issues.

Given the risk, food safety standards are constantly changing to ensure that consumers receive the best possible product.

Just recently, the EU voted to crack down on dual quality food, creating a single standard for any company’s product across Europe.

For producers, compliance with this type of regulation can wreak havoc on internal processes and procedures. To remain compliant while optimizing production and mitigating future outbreaks, many of these organizations have turned to operational data. That data allows the industry to take a proactive approach and has the potential to change the food industry.

Digital transformation and the preventative approach With the help of automation and sensor

technology, food suppliers are meeting regulatory requirements while laying the groundwork for diagnostic and root cause analysis. A data infrastructure system collects, analyzes and visualizes data in real time from a network of sensors located on equipment. This allows food production companies to understand when equipment or processes are operating outside of normal parameters to detect quality or contamination issues—and make proper adjustments—before an outbreak occurs. In the event of an outbreak, automation can isolate deviations within a specific batch or process to quickly identify root cause, reducing the scope of illness and recalls.

For Hershey, tracking cocoa bean paste as it transfers from the conches to its tank farm is critical to its risk management strategies, and with the help of software that is visualizing tank IDs, valve positions and pump run states, the company’s Malaysian plant can see the transfer of each batch through the system. In the event of an issue, rather than simply pulling everything from the shelves, only affected batches are removed, significantly reducing food waste.

Data-driven quality Companies are successfully using operational data in production facilities, but the application goes far beyond a processing plant. Farmers can use sensor technologies and analyze crop data right within their farms, allowing them to produce higher quality crops, pre-

vent foodborne illness outbreaks and comply with BRC standards. Data will show source of origin, making genealogy track and trace possible. On the packaging and logistical side, processors, outbound delivery and cold storage facilities will be able to guarantee product weights and measures as well as maintain transportation standards.

In 2011, The Kellogg Company installed in-line weight controls on the packing lines to avoid non-conformities in BRC audits. Each operator manually collected two samples per shift, and that data was reviewed along with average weight, standard deviation and number of cartons produced and rejected for being over or under the legal weight. To mitigate human error in sampling, Kellogg connected all packing lines to a data infrastructure. Using sensor technology and tags, the company now receives one sample in real-time every 20 minutes. Thanks to realtime data, Kellogg is complying with regulations beyond what is required.

As the food industry further integrates data into everyday process to meet BRC audit and regulatory requirements, it will make the European food supply better and safer than ever. When the food industry can quickly identify issues to ensure that safety standards are met while optimizing production, the result is better quality food at a lower cost. J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER/OCTOBER 2018

31

I EVENT

Market-leading Food Contact Conference – P&P – Takes Place This December in Vienna ver 200 experts from across the food contact industry will O come together in Vienna, Austria from 3–6 December 2018 to attend Smithers Pira’s P&P (Plastics & Paper in Contact with Foodstuffs) - www.foodcontact.com/plasticspaper.

P&P will provide an in-depth and timely overview of the latest EU legislation as well as a small focus on global regulations.

Described as “The most important event in Europe on food contact regulations” by Dario Dainelli at Polymer Comply Europe, the conference provides delegates with a unique opportunity to stay ahead of the latest regulations in food contact, network with like-minded professionals and discover best practice in the industry. Companies speaking at the event will include BASF, Nestlé, Iceland Foods, Kraft Heinz, Barilla G. e

R. Fratelli, Sherwin Williams, The Food and Environment Research Agency (FERA), CEPI and more.

Regulations Alistair Irvine, Business Compliance Manager at Smithers Pira, comments: “With a flurry of new food contact regulations; EU Regulations 79/2018, 213/2018 and 831/2018, there appears to have been a step change in the pace of legislative change.

During this three-day conference, we will be focusing on these amendments and other compliance laws across the EU that are crucial for all businesses in the food contact arena.”

Attendees to the conference comprise of industry leaders and legislators from across the food contact supply chain such as regulatory affairs professionals, chemical manufacturers, material suppliers, brand owners and R&D scientists developing new chemicals for food contact applications.

With an increased focus for this year on all food contact materials including plastics, paper and materials including NIAS, inks, adhesives, metals and more, the conference will provide a much-needed overview of the sector and the latest EU regulations. Attendees have a choice of attending all three days, or for those with a specific focus, the event has been split into two-day tracks, with day one specialising on plastics, day two looking at plastics, paper and other materials and the final day focusing on paper. Giving delegates the opportunity to tailor their visit at a cheaper rate.

Presentations Presentations include: • Safety assessment for ‘complex’ starting substances and additives used for coatings/printing inks, Dr Martin Klatt, Head of Product Stewardship Regional Business Unit Dispersions and Resins Europe, BASF • Safety of packed food along the supply chain, Marja Pitkänen, Senior Scientist, VTT Technical Research Centre of Finland Ltd • Food contact materials: new industry perspectives, equipment and working tools, Antonio Nespoli, Global Quality & Food Safety Governance Director, Barilla G e R Fratelli • The journey of removing plastics for all products – dos and don’ts, Ian Schofield, Own Label and Packaging Manager, Iceland Foods • Compliance and risk assessment for food contact materials, Carlos de la Cruz Garcia, Head of Regulatory & Scientific Affairs, Nestle Nespresso S.A • Plastic in contact with Foodstuff: Regulatory Framework in India, Monika Rawat, Lead Regulatory Affairs & Compliance, India, The Kraft Heinz Company • Non-intentionally added substances (NIAS): Past, present and future, Dr Malcolm Driffield, Manager of the Packaging and Mass Spectrometry Solutions team, Fera Science Ltd • Panel session: Shaping the future of food contact packaging in Europe, panellists include Iceland Foods, Nestlé Nespresso, CEPI. Workshops Delegates to the conference will also be able to book themselves onto one or both of the pre-conference workshops taking place on Monday 3 December. The morning session ‘Major regulatory scenarios that have an impact on food contact plastics’ will be hosted by expert speakers from Polymer Comply Europe and European Plastics Converters (EuPC), whilst the afternoon session will be hosted by Dr Alistair Irvine from Smithers Pira will look at ‘EU Regulation on Plastics – Solutions & alternative methods’.

Sponsorship and exhibition opportunities are still available. For more information about sponsorship and exhibition opportunities, please contact Stephen Frier on +44 (0)1372 802006 or Email sfrier@smithers.com. J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER/OCTOBER 2018

33

I POULTRY & CONVENIENCE FOOD

2 Sisters Embarks on New Transformation Strategy Ronald Kers, the new chief executive of 2 Sisters Food Group, has outlined his transformation strategy for Britain’s biggest food manufacturer and one of Europe’s largest poultry processors. onald Kers is the former global chief executive of Muller, the Eur6 billion international dairy and food group. He has replaced Ranjit Singh Boparan, co-founder and owner of 2 Sisters, who has stepped up to become president of parent group Boparan Holdings.

According to Ronald Kers: “2 Sisters can capitalise on global trends that can take us to the next level. Poultry is a growth market so fundamentally attractive. Consumers are also increasingly looking for healthy, convenient and affordable food, and both our poultry and our non-poultry businesses deliver this. The rise of ‘retailer own brands’ is another big opportunity. These are becoming the biggest brands in the world and if we can use our scale and expertise, we can stay ahead of our competitors and succeed in the longer term.”

R

Framework For Success The new ‘Framework for Success’ transformation plan entails the introduction of a changed senior management team, an acceleration of the turnaround of all poultry operations in the UK and Europe, and the merger of 2 Sisters’ Poultry and Added Value divisions. Former UK Ronald Kers, chief executive of 2 Sisters Food Poultry managing Group. director Keith Packer is leading the merged divisions, with operational support from director Antonio Boparan, who also heads up subsidiary Amber Foods.

Ronald Kers continues: “A merged poultry operation will help deliver end-to-end solutions from farm to fork and also for us be more aligned across fresh and added value poultry, something our customers are increasingly asking for. And a dedicated transformation team will be focused on driving business change for the benefit of all managing directors, but without the distraction of the ‘dayto-day’ operations.”

Management Changes Senior management changes include the hiring of Greencore Group technical director Helen Sisson, who will join 2 Sisters in early 2019, and the appointment of Dan Howell as commercial director, after most recently being commercial and strategy director for Muller Milk & Ingredients.

The latest recruits to the management team are Andrew McInnes, who joins as managing director of the UK Poultry busi-

2 Sisters has merged its Poultry and Added Value divisions.

ness, and Seb Jones, who will head up the new transformation team. Both were formerly with Muller. Andrew McInnes was managing director of Muller Milk & Ingredients, while Seb Jones was global group integration director.

Ronald Kers explains: “Transforming 2 Sisters requires top team effort. By bringing in the right people in the right roles, we are building the foundations of a disciplined, high performance organisation. If we are to truly become the leading international food business, trusted and respected by all stakeholders, then we need to have the strongest possible leadership team. We continuously need to set the bar higher and deliver for our customers, consumers and ourselves, and I know this new team will do that.”

Ronald Kers acknowledges the pace of change after being in post since June, and also that three of the new team have been recruited from his previous business - Muller. “I want us to turnaround our

Keith Packer, managing director of 2 Sisters Meal Solutions.

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER/OCTOBER 2018

35

is part way through a £150 million investment programme across its UK poultry business. The group has just announced a major investment at its Coupar Angus poultry plant in Scotland, resulting in the creation of more than 250 new jobs. The move aligns with the food group’s strategic aim of developing more efficient, shorter supply chains which ultimately cut down on food waste, logistical and distribution costs.

Keith Packer explains: “We are committed to providing fresh, quality produce to our customers and creating a shorter supply chain enables us to do just that. We have always said we will invest when it is the right thing to do for the business, but the timing and conditions have to be right. This is a great example of that.”

2 Sisters produces about a third of all poultry products eaten every day in the UK.

business performance as soon as possible, and although we are making some progress already, I want to accelerate the pace. I know that having a strong, senior leadership team in place that I know and who have a track record of delivery is essential,” he says.

The 2 Sisters chief executive elaborates: “This is an unprecedented period of change at 2 Sisters. But it is a period that has to happen. Sometimes periods of rapid change can be unsettling. But we do need the best possible team to bring a laser-like focus on becoming more disciplined in our execution to achieve our goals of improved profitable growth and a strong balance sheet.”

Streamlining As part of its streamlining, 2 Sisters recently disposed of its UK red meat business (incorporating St Merryn Foods and McIntosh Donald) for an undisclosed sum to Kepak Group, which already operates 16 meat processing plants in Ireland and the UK. 2 Sisters Red Meat has been trading since 2013 and has four facilities in the UK. The business processes and markets, mainly in the UK, about 250,000 cattle and more than 1million lambs annually from more than 13,000 farmers spread from Scotland to Cornwall.

Ranjit SinghBoparan, president of Boparan Holdings, says: “We have had approaches over the past four years for our Red Meat operations, and we have been talking to several interested parties during this period. But as we always make clear, any sale has to be at the right time with the right buyer, and it had to be a deal that fitted with our long-term strategy.”

“This deal represents another major step in transforming 2 Sisters and building a better business,” Ranjit SinghBoparan adds.

“With customers and consumers at the heart of everything we do, we will continue to focus on delivering great quality, great value products every day.”

Continued Investment Meanwhile, 2 Sisters continues to enhance its production base and

36

Prepared Meals 2 Sisters has also announced a £7 million capital investment at its Carlisle prepared meals factory, creating 200 new jobs. The investment programme follows a major contract awarded by Marks &Spencer to expand its product ranges with 2 Sisters.

More than 30 new products will be developed at the site including Gastro and fish meals with vegetable accompaniments.

Production of fish meals has commenced while Gastro ranges and vegetable accompaniments will be launched in late 2018 and early 2019.

Already being produced are ranges like British Salmon and asparagus and Gastro seafood casserole. Dishes to come later in the year include Gastro ham & chicken crumble and Gastro Beef Bourguignon, plus more than a dozen potato accompaniment dishes. J

Ranjit Singh Boparan, president of Boparan Holdings.

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER/OCTOBER 2018

I TRAYS & TRAY SEALING

Delivering The Seal of Success he convenience food sector remains buoyant as T food manufacturers continue to respond to the needs of today’s busy lifestyles. It’s a market full of opportunities - but with these come plenty of challenges as well.

Although consumers undoubtedly require the convenience of ready-prepared or ready-to-cook foods, equally there must be no compromise on quality or freshness. They are also becoming increasingly sophisticated and adventurous in their tastes. In addition, in today’s far more environmentally-conscious world, the choice of pack format can have an influence on purchasing habits. Meanwhile, markets remain extremely competitive.

All of this means that food manufacturers have to balance new product development with the continual production of established favourites, and explore more sustainable packaging options for their products. At the same time, they need to maximise efficiencies and throughput and deliver the highest quality.

Recent Innovations These requirements have driven the new product development process at Proseal for many years. One of the company’s most recent innovations, for example, offers the dual benefits of increased efficiency and reduced energy consumption. E-seal®, which is available across the Proseal range of tray sealers, provides a 92% reduction in energy while delivering the quality and effectiveness of seal demanded by retailers that helps to maintain the quality of products. Another significant development, Pro-motion™, maximises line speeds by enabling trays to feed continuously into the tray sealer without having to pre-sort and adjust pack spacing, increasing speeds by up to 25%.

Unplanned downtime is the enemy of any production manager. Aside from the overall reliability of Proseal equipment, special features ensure the smooth running of equipment with minimal material wastage.

Pro-tect™ offers valuable online monitoring of the machines and the ability to collect data on small but unscheduled line stoppages, helping production managers and engineers to iden-

tify recurring problems and implement corrective action to maximise line uptime; the continual monitoring of packs as they enter the tray sealer ensures that the machine will automatically stop if one enters the wrong way, avoiding wasted time to remove the misaligned or crushed tray; I-Film provides effective monitoring of the film diameter to keep film wastage to a minimum.

Main Challenges One of the main challenges for the convenience food sector is to ensure quality is maintained for as long as possible. To deliver this extended shelflife, there are now a variety of sealing technologies available which, in addition to traditional atmospheric sealing, include Gas Flush, Hermetic Shrink, Vacuum, Skin Pack, Skin Plus and Skin Deep.

While this gives manufacturers the flexibility to introduce different product types and respond to changing market requirements and consumer demands in their style of pack, they must be able to explore such options while maintaining current production.

Equally significant, the proliferation of new products and pack types means that many manufacturers now have to handle a variety of different packs on a single line.

To meet these requirements, the Proseal GT range of tray sealers can handle all types of pack on the same machine, with the different formats sealed using the same tooling. This gives manufacturers the ability easily to switch between packs during normal production with minimal downtime, and to run trial packs.

Future-proofing Another focus of the company’s development work has been on future-proofing its models.

There is little point having a machine that is fast and efficient if it is not able to cope with newer pack formats.

Proseal’s GT platform is therefore designed to be completely adaptable in order to incorporate the latest developments. For every feature introduced into new models, the company also ensures that it can be retrofitted to existing machines so that all customers keep up-to-date with latest trends.

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER/OCTOBER 2018

37

In terms of new pack designs and materials, Proseal works closely with suppliers to ensure any new format can be effectively sealed. A recent example is the introduction of Halopack®, a board-based MAP-capable food tray produced from sustainable cardboard. The tray features an EVOH barrier that enables it to extend product shelflife compared to conventional carton-board tray options, and therefore reduce food wastage. Proseal worked with the tray manufacturer to develop a hermetic sealing system to deliver optimal conservation of the packed product.

New Pack Development As part of the new pack development process, a key element of all Proseal machinery design is an effective gas flush system that ensures that gas is evenly distributed around each pack, maximising its effectiveness while also reducing waste. Proseal’s in-house gas

specialist can provide expert advice on the most appropriate solution for individual applications, and the company’s Test Kitchen is available to run trials to test the appropriateness of the selected approach.

According to AIPIA (Active and Intelligent Packaging Industry Association) a typical food retailer can increase profits by 17% through cutting food waste from 2% to 1.5% of volume. Proseal’s technical expertise and indepth knowledge of gas flushing techniques plays a vital role in enabling food manufacturers to minimise waste. Equally important the company’s machines will provide the necessary speeds and efficiencies to maximise throughput, and have the flexibility to adapt to the fast-changing nature of the convenience market. In these ways, they can make a significant contribution to improving a business’s overall profitability while delivering products of the highest standards to its customers. J

PA Wins Award For Innovation

ackaging Automation has won a PPMA P Group Industry Award in the Innovative Processing System category for

the company's brand new MiWeigh weigh scale system. The MiWeigh system has now provided many customers with a cost saving product that has had a direct impact on their financial performance. The unique features and the low cost of ownership of the product have made it stand out in the market and already attracted great interest

from food packers and processors.

Commenting on the award, PA’s Operations Director Neil Ashton says: “With an increase in the requirement for more automation and better efficiencies during the past 12 months, we found many customers in the convenience and fresh produce markets were looking to improve the process of weighing their products into the tray. This is a very manual element of the packing process with high labour costs and

the potential for high value give away. PA wanted to develop a product that would speed up the preparation of products and improve pack weight accuracy therefore reducing give away. Additionally the goal was to provide live information to line leaders that could highlight training requirements for the product assembly line workers. The fact that we have won an innovation award for all our efforts and hard work is just fantastic, we are so proud of our team and our achievements.”

PA’s R&D team worked closely with Freshtime, a Lincolnshire producer of value added, ready-to-eat vegetable and salad products to develop the hardware and software to optimise the set-up of weigh scales, improve the weighing of products into trays and punnets with a data collection system and simple to understand visual go-no go graphics.

Matthew Codd, Continuous Improvement Manager from Freshtime, comments: “The new weigh scales have transformed our business, on average give away on some of our high cost proteins are as low as 1% which is a saving of up to 4.5% compared to before MiWeigh was installed and we are seeing some speeds have almost doubled from 12 weights per minute to 21 per minute.” J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER/OCTOBER 2018

39

I AWARDS

Winners of the 2018 Irish Food & Drink Business Awards airygold Food Ingredients was crowned company of the year at the 2018 Irish Food & Drink Business Awards. The presentation ceremony and dinner, which celebrated the best of Irish manufacturing and the people behind the products, followed the 2018 Food & Drink Business Europe Conference and Exhibition. Both events were held recently at the Citywest Hotel in Dublin.

A total of 245 entries were received across 15 categories for the 2018 Awards.

Dairygold Food Ingredients scooped the overall prize, winning the Food & Drink Company of the year title and was presented with the accolade in front of a host of

D

talented food and drink producers.

The Food Safety and Quality Initiative of the Year category was sponsored by EIQA, while the Food & Drink Innovation of the Year category was sponsored by Henderson Food Machinery.

Speaking about Dairygold’s win, John Whelan, Chairman of Food and Drink Business Europe, who headed the judging panel, said: “Dairygold is a clear leader in the dairy industry, demonstrating its farsighted and technological advanced approach through its ‘Dairy Lean Farm’ programme- the first of its kind in Ireland.

Dairygold has successfully applied this international management technique inside its business over the past five years. Its Advance 2020 lean programme, which was supported by Enterprise Ireland, has delivered improvements across a diverse range of the Society’s operations from Logistics, Manufacturing and Sales to Support Services and Administration.

Dairygold continued last year to roll out the programme at farm level, as

BFree Foods won Gold in the Health & Wellness Product of the Year category.

they see farmers are a key component of their dairy supply chain.”

Tracey Carney, Organiser of the Food & Drink Business Awards, said: “Innovation is key to driving growth and offering consumer value within the food sector in Ireland. These awards are unique in that they recognise the key industry players who are working hard at driving food production and manufacturing. The Food & Drink Business Awards recognise the most talented producers in the industry in Ireland.” J

ALL THE WINNERS Dairy Manufacturing Company of the Year Dairygold Food Ingredients – Gold Cashel Farmhouse Cheesemakers – Silver North Cork Creameries – Bronze Meat/Poultry/Fish Company of the Year Manor Farm – Gold Keohane Seafoods – Silver Burren Smokehouse – Bronze Bakery/Confectionery Company of the Year East Coast Bakehouse – Gold Gallagher’s Bakery – Silver Gem Pack Foods – Bronze Beverage Company of the Year Britvic Ireland – Gold Listoke Distillery & Gin School – Silver Bewley’s Tea & Coffee – Bronze SME Food & Drink Company of the Year The Happy Pear – Gold Blanco Nino – Silver

40

Keogh’s Crisps – Bronze Sustainable Factory of the Year Meade Potato Company – Gold Dairygold Food Ingredients – Silver Ballykeefe Distillery – Bronze Food Safety & Quality Initiative of the Year sponsored by EIQA Irish Fish Canners – Gold Manor Farm – Silver North Cork Creameries – Bronze Food Service Operator of the Year sponsored by Hotel & Catering Review Freshly Chopped – Gold The Tea Rooms at Duckett’s Grove – Silver The Happy Pear – Bronze Food & Drink Innovation of the Year sponsored by Henderson Food Machinery Blendi – Gold Aldi Ireland – Silver Drioglann Shliabh Liag CGA – Bronze

Best CapEx Project Cloughbane Farms – Gold Health & Wellness Product of the Year BFree Foods – Gold Freshways Food Co. – Silver Caveman Grub – Bronze Fresh Produce Company of the Year Meade Potato Company – Gold O’Shea Farms – Silver Clarkes Fresh Fruits – Bronze Own Label Brand of the Year Dunnes Stores Simply Better – Gold Marks & Spencer – Silver Aldi Ireland – Bronze Exporter of the Year Keogh’s Crisps – Gold Blanco Nino – Silver Nutri-Snax – Bronze Gran Prix – Food & Drink Company of the Year Dairygold Food Ingredients

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER/OCTOBER 2018

I AWARDS

Inaugural Irish Manufacturing & Supply Chain Awards remier Publishing & Events, in partnership with Irish P Manufacturing Research, has launched the inaugural Manufacturing & Supply Chain Awards. The awards are the first of their kind on the island of Ireland to celebrate the manufacturing and production industry. The Manufacturing and Supply Chain Awards will be presented on January 17th, 2019 at the Citywest Hotel in Dublin.

The awards will highlight the implementation of smart thinking to enable competitive world class manufacturing, and showcase the resilience, determination and ingenuity of the Ireland’s manufacturing community.

The awards build on the sell out success of the National Manufacturing & Supply Chain Exhibition & Conference which saw over 3,500 delegates in attendance in 2018. The 2019 National Manufacturing & Supply Chain Exhibition & Conference will be held at Citywest Convention Centre, Dublin on January 17th, 2019, before the national awards ceremony later in the evening.

The Irish Manufacturing & Supply Chain Awards incorporate 15 Categories recognising industry teams and companies. The categories include: Food Manufacturing Team of the Year, Best Manufacturing Skill & Development Programme, Industry-

Research Partnership of the Year, Supply Chain Manufacturing Partner, Sustainable Manufacturer of the Year, Best Use of Robotics, Contract Manufacturer of the Year, Health & Safety Project of the Year, Smart Factory Manufacturer of the Year, Engineering Manufacturing Team of the Year.

The national awards presentation ceremony will attract 400–500 guests, including MDs, CEOs, Operation and Production Directors, Engineers, Logistics and Supply Chain Managers, Research & Development personnel, and the national media.

Entries to the Manufacturing & Supply Chain Awards close on 14th of November 2018. The finalists will be announced in December 2018.

For further information E-mail tracey@prempubevents.com or visit www.awards.manufacturingevent.com. J

I AGRICULTURAL RESOURCES

Towards a Sustainable Food System

By Dr Gavin Milligan, Director of Green Knight Sustainability Consulting griculture accounts for around 1/3rd of global employment, mostly in precarious smallholder subsistence farming. In develA oped economies, the numbers directly employed in agriculture are far lower. Total employment in the UK’s food supply chain is 4 million, of which 400,000 are in manufacturing. Such a system

inevitably has a significant environmental as well as social footprint, accounting for around a quarter of all global emissions.

Perhaps the greatest unrecognised threat to the global agri-food system is soil degradation. Over 11% of EU territory is estimated to be affected by soil erosion of more than 5 tonnes per hectare per year. Increasing population and ‘Westernised’ diets place further stress on agricultural resources. The current global population of around 7.5 billion people is projected to rise to 9+ billion by 2050 requiring 60% more food production. Alongside this, up to onethird of food produced for human consumption is wasted.

So how should agri-food businesses respond to this complex and inter-connected set of issues and the expectations of their stakeholders around specific challenges like marine plastics? The most comprehensive response is the UN Sustainable Development Goals (SDGs), which have become the go-to framework for environmental, societal and governance (ESG) engagement. But, the SDGs have a very broad scope and within the 169 second-tier targets the word “food” appears only 8 times and “agricultural” 6 times.

Organisations seeking to align with the SDG agenda often find them daunting, not least because they’re written more for government than for business. Fortunately, support is available to enable companies to interpret the Goals in ways that work for their circumstances. As stakeholders look for increased evidence of responsible conduct, working to the SDG framework represents a great opportunity to deliver action.

For further information visit www.greenknight.consulting. J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER/OCTOBER 2018

41

I MIXING & BLENDING

Powder Induction and Dispersion Success for Beverage Manufacturer hether your process involves in-tank W batch mixing, or inline mixers that emulsify, mill, induct, hydrate and disperse, the experts at Admix assert their high efficiency systems have positively impacted their customers’ operations. Admix is unable to reveal the names of its customers and the food and beverage brand names they produce, and with good cause - it stands to reason that Admix mixers give these processors a competitive advantage.

When it comes to powder induction and dispersion processing, the Admix Fastfeed® has helped processors improve their batching operations. One such success story involves a beverage manufacturer whose workers were climbing stairs while carrying 22kg (50lb) bags for slicing and dumping into an elevated tank configured with a conventional batch mixer.

Unable to keep up with increased production requirements, the beverage processor realized they needed a better equipment solution. Their wish list included a system that would enable them to make product faster, minimize energy consumption, improve worker safety with better ergonomics and achieve a return on investment in less than one year. The cherry on top would be reducing product loss incurred when producing a diverse range of products in batch sizes anywhere from about 375-113,000 liters (100-30,000 gallons.) Ingredients ran the gamut of powders including: gums, stabilizers, plant proteins, vitamins, minerals, sweeteners, energy drink components, nutraceuticals, preservatives, acids, whey and milk protein isolates/concentrates, milk powders and assorted flavorings.

The solution? The Fastfeed powder induction and dispersion system. This fully integrated skid-mounted system complete with an operator table, features a two-stage rotor/stator high speed, high shear disperser (their DynaShear® product) and a powerful suction pump. The combination of high liquid flow and controlled vacuum induction instantly and completely wets and disperses powders inline at the particulate level. This results in no unmixed ingredients ever reaching downstream blend tanks, with emulsions in the 3-5-micron range routinely produced. No unmixed ingredi-

ents equates to no product waste, improved yields and a higher quality end-product which is every processor’s desire.

How are They doing Now?

Since the Fastfeed was installed, the beverage manufacturer’s operators can induct, wet, disperse and hydrate all powdered ingredients in a single pass at induction rates over 204kgs (450lbs) per minute. Highly used powders can now be inducted from bulk sacks while the balance of powders in standard size bags, is conveniently and safely added from floor level. The operators also recognized the benefit of inducting liquid flavor concentrates and purees from pails, drums, and totes without the need for an additional pump.

In addition, downstream strainers and filters are no longer required because smooth, lump-free product is delivered with every batch run. Batch-to-batch inconsistencies that happened when operators dumped powders into mix tanks at

different rates has also been eliminated.

Their powder feed rates are now controlled, with rapid dispersion occurring at the proper concentrations, preventing product slugs or premature hydration.

With the highly efficient Fastfeed, the beverage manufacturer easily produces any batch size required. Batch times have been reduced by 50%, energy consumption is 70% less, and dusting from dumping powders into open top mix tanks has been eliminated. Since all mixing is now accomplished inline without the need for time consuming recirculation loops, product air entrainment has also been drastically reduced.

Admix helped this major manufacturer easily meet new product production demands and meet a 1-year ROI target to boot.

For further information go to www.admix.com or contact Admix in the USA or Europe (Denmark: +45 3213 8743 or europesales@admix.com, USA: +1-603627-2340 or admixsales@admix.com). J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER/OCTOBER 2018

43

I MIXING & BLENDING

Baxters Adds ABB Drive to the Mix axters Food Group is using an ABB B variable speed drive (VSD) to help ensure consistent mixing of its range of

The tank, which had not been used for several years, was re-located to Colchester from one of the other manufacturing sites in the group. It featured a steam-heated jacket that made it suitable for the hot fill process, but had no controls or electrical supply. Baxters needed a power and control solution that would turn the vessel into a fully usable asset and contacted ABB authorised value provider, Gibbons Engineering Group, for advice.

“The holding vessel is vital to the production of our hot fill sauces. Without its agitation and heating capability, we would struggle to meet the required levels of product consistency and thermal process. This would potentially compromise the high-quality standards of the product range,” says Tony Bellian, European Technical Director for Baxters. J

sauces, dressing and marinades. The drive is used to adjust the mixer motor’s speed based on requirements for a particular product.

Installed on a 750 kg capacity holding vessel, the VSD is used to mix sauces and other products at an elevated temperature – a process known as hot fill. This process pasteurises the product, preventing spoilage and prolonging shelf life.

Baxters Food Group produces a wide range of soups, sauces, condiments, dressings, preserves, pies and meal accompaniments in the UK and Poland. Previously, it had only produced cold fill products at its Colchester site, but wanted to expand production by manufacturing hot fill sauces and marinades.

I FOOD SAFETY

New Food Safety Culture Service Launches For Food Manufacturers nstinctif Partners is launching a service for Ifood the food industry designed to enhance safety culture, which puts driving cultural and individual behavioural change in food manufacturing at its heart.

The service will help food manufacturers meet the food safety culture challenge set out in the newly-published BRC Global Food Safety Standard Issue 8 (BRC8). This places a strong emphasis on developing a food safety and quality culture, meaning

food manufacturing businesses subject to their first audit under the new Standard from February 2019, are facing a new challenge.

Victoria Cross, Head of Instinctif 44

Partners’ Business Resilience Practice, explains: “BRC8 specifies that senior management ‘shall define and maintain a clear plan for the development and continuing improvement of a food safety and quality culture. Having a strong food safety culture is central to preventing product recalls.

With the root cause of many food safety issues being human error, the focus has to be on people and cultural and behavioural change.”

Inspiring people to do the right things at the right time is key to creating a food safety culture – and is an essential part of the new Instinctif Partners’ service.

Victoria Cross continues: “Our offering has been developed in partnership with Carrie Birmingham, a leading expert in culture change and employee psychology, and leading food research and technology organisation Campden BRI, and will be delivered in collaboration with a team of senior food industry experts with decades of hands-on manufacturing experience.

Together we focus on inspiring people to do the right things at the right time – not because they have to but because they want to.”

The Enhancing Food Safety Culture service asks:

Victoria Cross, Head of Instinctif Partners’ Business Resilience Practice.

• Do your leaders inspire and reward the right food safety behaviours?

• Are your first-line supervisors leading by example – or avoiding issues?

• Are your operatives motivated to do the right thing – or just going through the motions?

• Do you have a culture of learning from near misses – or hoping for the best?

• Has ‘human error’ ever caused a food safety incident?

“You can’t force change in people, but you can inspire it; creating a culture which not only enhances food safety, but which also helps businesses become more resilient,” she concludes. J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER/OCTOBER 2018

I FLAVOURS

Long-life Probiotics in a Tasty Chew nlit is launching ProBites LLP, a longlife probiotic chew supplement line in a A variety of flavours. According to Innova Market Insights, new product development for probiotic supplements has witnessed an average annual growth of 26.5% between the years 2012 and 2017.

This has been fueled by growing consumer awareness on the numerous health benefits of probiotic especially in the backdrop of rising antibiotic usage. North America has consistently dominated the market, with an average share of 55%, over the past three years. Nevertheless, Europe experienced a sudden leap in probiotics launches from 15% to 38% between 2016 and 2017.

The inherent sensitivity of probiotics raises two key challenges of maintaining stability and extending shelf life in the development of an effective supplement.

Until recently, solutions have been limited.

Anlit developed an innovative technology it calls “ProBites LLP, Long-Life Probiotic"— that allows for the high stability of live bacteria in ambient conditions, to be incorporated into a flavourful format for the whole family and is easy to enjoy

whether at home or on-the-go.

Anlit’s R&D team characterised all the factors that could negatively impact the stability of live bacteria in a food matrix, including moisture, and others. The team isolated each potential barrier and crafted a specific solution to overcome them. The

result addresses these issues with the comprehensive solution of the new ProBites LLP, while maintaining great flavour and optimum functionality of the probiotic.

The new technology is an excellent carrier of a variety of probiotic strains.

Anlit also invested in a new preparation system to ensure the high stability of the probiotic, creating the ideal production environment for producing chewable probiotics. Precise temperature and humidity controls ensure the probiotic bacteria can live longer. The company then instituted a double packaging system with multilayer laminate to retain a perfect moisture-free support environment for the probiotic and to protect the organoleptic characteristics of the product.

“ProBites LLP taste and look like candy chews and, based on our trials, can become the probiotic choice of kids and adults,” says Shai Karlinski, VP of sales and marketing for Anlit. “This new product line represents our commitment to help consumers get, tasty supplements of the highest standard that all the family loves. ProBites LLP line is designed for the whole family, from age three onwards.” J

IFF Completes Combination With Frutarom nternational Flavors & Fragrances has IFrutarom completed its $7.1 billion acquisition of to become a global leader in taste, scent and nutrition. The acquisition creates a differentiated portfolio with an increased focus on naturals and health and wellness as well as more comprehensive solutions. It also provides opportunities to expand into attractive and fast-growing cat-

egories, such as savoury solutions, natural colours, natural food protection and health ingredients. Furthermore, the deal broadens complementary and growing customer base, including enhanced exposure to the fast-growing small- and midsized customers, such as private label, while establishing an enhanced platform to deliver sustainable, profitable growth.

“The coming together of IFF and Frutarom is a momentous achievement. We are excited to be moving forward as one company and pursuing new opportunities that benefit all our stakeholders around the globe,” says IFF Chairman and CEO, Andreas Fibig. “Over the past several months, our integration planning teams have been work-

ing to ensure that we capture the best of both companies and create a seamless and efficient transition to achieve both our operational and financial targets for this combination.”

IFF anticipates the combination with Frutarom will translate into accelerated financial performance, with robust top and bottom-line growth. IFF also believes it will realise $145 million in cost synergies by rationalising procurement, optimizing global footprint and streamlining overhead expenses by the third full year after the completion of the merger. J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER/OCTOBER 2018

45

I FLAVOURS

Synergy Flavours Uncovers Flavours of the Future in Sports Nutrition ynergy Flavours, a leading global flavour S expert, has revealed the findings of its recent research project that has highlighted new and inspirational flavours for the sports nutrition market. The company’s ‘Flavours of the Future’ research has revealed a hotlist of emerging, growing, mainstream and established flavour trends that look set to excite the sports nutrition market.

Synergy gathered insights and trend data from The Latin American and North American markets and the findings will undoubtedly influence global sports nutrition markets, where discerning consumers actively seek new, exciting flavours and flavour combinations. In 2019, the team will assess the flavours that will most significantly impact sports nutrition in EMEA and Asian markets.

Synergy’s deep dive into the research started with harvesting ideas and inspiration from influential food bloggers, food writers and futurologists, and then benchmarking against quantitative data, such as new product launches and global internet

search trends. Finally, the team of experts in flavour and sports nutrition assessed and refined the list to create a hot list, with only flavours that they felt had true potential in the sports nutrition market making the final cut.

Exciting emerging flavours on the list include Yuzu and Mochi, whilst established flavours in some regions, but with the potential for global appeal, include US style S’Mores, Cookie Dough and Birthday Cake.

As part of the research, Synergy Flavours identified new and upcoming ingredients that are being used by chefs in their restaurants and evaluated the applicability of

those in sports nutrition. Yuzu is a good example. The citrus fruit, which grows wild in central China and Tibet, is prevalent in a variety of cuisines and is now migrating to other product categories, such as spiked and sparkling beverages. It combines well with mint, apple and lemon flavours – ideal for sports nutrition applications.

Sarah O’Neill, Global Marketing Manager, Nutrition, comments: “According to Mintel, the importance of flavour is a key purchase driver – over 75% of consumers are influenced by flavour choice when purchasing a sports nutrition product – so, creating innovative flavours for this market remains a priority at Synergy. The results from the Synergy team’s research have been fascinating and will enable us to anticipate the flavours of the future and to seize the opportunity in flavour development to offer more and more variety to our customers.”

To find out more about the flavours of the future for sports nutrition or to speak to the flavour expert team at Synergy – visit www.synergytaste.com/flavorsofthefuture. J

Firmenich Appoints New President of Flavors Business Unit irmenich, the world’s largest privatelyF owned company in the fragrance and flavour business, has appointed Emmanuel Butstraen as President of its Flavors Business Unit and member of the company’s Executive Committee. Having served most recently as President of Novecare at Solvay, Emmanuel Butstraen joins Firmenich with significant experience in

leading complex science-driven organizations and growth strategies across the United States, Europe and Asia.

He succeeds Chris Millington who chose to pursue new opportunities outside the company, after successfully leading the Flavor Business Unit for four years, where he built a performance and innovation-driven culture to lead in taste and nutrition.

“I am very excited to be joining Firmenich as President of Flavors. My focus will be to continuously strengthen the Group’s position as the innovation partner of choice in taste and nutrition,” says Emmanuel Butstraen. “With Firmenich’s legacy of world-class research and leading business responsibly, I am proud to becoming part of its Executive Committee to shape the future of Flavors.” J

Emmanuel Butstraen.

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER/OCTOBER 2018

47

I HEALTH & NUTRITION

Hi Europe & Ni Celebrates 10th Edition With Inspiring Events Programme urope’s leading health, natural and E nutrition show, Hi Europe & Ni, is celebrating its 10th edition with a move to a larger hall at Messe Frankfurt this year.

From 27-29 November 2018, visitors will be able to access all of the show’s many features and live events under one roof. In addition, the Healthy Finished Products Expo will launch this year and Health & Nutrition Week will run once again, following a successful debut in 2016.

Located in the heart of Germany, the leading European market for health and nutrition, Hi Europe & Ni is the premier nutritional ingredients event, offering the best in business opportunities, networking connections, trend insights and product development solutions. The industry has evolved significantly in recent years and, as vegan, vegetarian and flexitarian lifestyles move from niche to mainstream, the market is entering a new era of clean label food and beverage products with rising numbers of natural, organic, functional or “free from” claims.

According to Euromonitor, products positioned towards food intolerance, fortified, functional, naturally healthy or organic are expected to enjoy global growth of 5 percent in retail value terms every year until 2020. In contrast, products with reduced sugar, caffeine or fat content will grow at just 1 percent. The “naturally healthy” sector is ripe for innovation: valued at ?251 billion in 2015, further growth of more than ?63 billion is expected by 2020.

Hi Europe & Ni 2018 will reflect this booming marketplace with numerous notto-be-missed highlights. Spanning three days, the event provides a complete overview of the health and nutrition indus-

48

tries. International leaders in healthy food and beverage innovation will showcase the latest solutions for food and drink formulation and reformulation, dietary supplements, nutraceuticals, organics, packaging, processing – and more.

Main Themes This year’s conference will follow four main themes: * Focus on Functional: what’s new in gut health, protein and naturally functional foods * Clean, Natural and Transparent: developments in clean label, natural ingredients and the growing consumer demand for trust and transparency * Reduce, Remove and Reformulate: solutions for sugar, salt and fat reduction as well as the latest in “free from” * Personalising Nutrition: innovations in personalised nutrition for consumers at all life stages.

In excess of 465 exhibitors are confirmed, including global players such as ADM, BENEO, Glanbia Nutritionals, Lonza and Naturex. More than 10,000 attendees from 94 countries are expected to attend and explore several themed pavilions: Organic, Natural, Free From, the Healthy Finished Product Expo, Expo FoodTec and country pavilions.

Health & Nutrition Week will run alongside Hi Europe & Ni 2018, offering a top-level thought leadership programme, starting on November 24. Working together with external experts from the food industry, academia, market research and more, organiser UBM has created an inspiring line-up of topical presentations and workshops. The Week includes, for example, the one-day Hi Future of Nutrition Summit on November 26, which will explore cutting-edge innovations that are likely to change the food and beverage industry. On November 27-28, the immer-

sive, interactive Hi 5-Senses Conference will target all five senses via an insightful mix of keynote presentations, panel discussions and debates. Additionally, on November 29, it is the third year that women in the industry are invited to attend the Women’s Networking Breakfast to make connections and share advice - and for the first time this year, also men are invited to join.

Powerhouse “Hi Europe & Ni is a true powerhouse for the industry,” says Julien Bonvallet, brand manager for event organiser UBM. “Attendees will find business opportunities that they simply won’t find anywhere else.

As 2018 marks our 10th anniversary, we have put together an exciting programme of events, showcases and platforms for innovation, and have attracted an incredible array of exhibitors and expert speakers.

We look forward to opening the doors and welcoming a record number of visitors.”

UBM’s main partners for Hi Europe & Ni 2018 are KSM 66, Mintel and Innova Market Insights. For Health & Nutrition Week 2018, UBM is working in partnership with IUFOST, ESSNA, ProVeg, StartLife and Smart Short Courses.

Free pre-registration is open. For details, please visit www.figlobal.com/hieurope/. J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER/OCTOBER 2018