Food & drink business europe may:june 2017

May/June 2017

2017

Food & Drink Business Website:

www.fdbusiness.com

C o n t e n t s

- 33 B OTTLED W ATER

- 3 M ERGERS & A CQUISITIONS

Nestlé Waters adopting a ‘smart factory’ approach.

Coverage of British and international deals.

P AGE 18 PAGE 3

Ralph Findlay, CEO, Marston’s.

- 9-19 C OVER S TORY

- 47 F ROZEN F OOD Healthy growth at Ardo Group.

Scott Waddington, CEO, SA Brain & Co.

The Top 100 food and drink manufacturers in the UK and Ireland.

R EGULARS Processing & Manufacturing . . . . . . . . . . . 24, 30, 31 & 49

- 21 S OFT D RINKS Britvic solid in transformation.

Bottling & Packaging . . . . . . . . . . . . . . 34 & 35

PAGE 23

Andy Dawkins, MD, Faccenda Foods.

PAGE 9

George Weston, CEO, Associated British Foods.

Energy & Environment . . . . . . . . . . . . . . . 37-45 Green Factory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33-41 Water & Wastewater Treatment. . . . . . . . . . . . . . . . . . . . . 42-45

Materials Handling . . . . . . . . . . . . . . . . . . . . 49

- 23 P OULTRY Faccenda Foods takes long-term approach.

Materials & Ingredients . . . . . . . . . . . . 51 & 52

PAGE 33

Marco Settembri, CEO, Nestlé Waters.

Managing Director: Colin Murphy Editor: Mike Rohan Group Operations Manager: Sylvia McCarthy

- 25 & 29 N UTRITION Sports & active nutrition – Continued growth in Europe.

PAGE 13

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- 27 F ROZEN F OOD

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FOOD & DRINK BUSINESS EUROPE, MAY/JUNE 2017

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M E E R R G G E E R R S S M Post Holdings to Acquire Weetabix For £1.4 Billion Post Holdings, a US-based consumer packaged goods holding company which is the third largest cereal company in the country, has agreed to acquire Weetabix from Shanghai-based Bright Food Group and an investment fund advised by Baring Private Equity Asia for £1.4 billion.

UK-based Weetabix primarily produces ready-to-eat (RTE) cereal products spanning branded and private label. Founded in 1932, Weetabix holds the number two overall position in the UK RTE cereal category. Its portfolio includes the iconic Weetabix brand, which holds

the number one brand position in the UK RTE cereal category, as well as Alpen (the number one muesli brand in the UK), Barbara’s, Weetos and Ready Brek.

Weetabix generated revenues of £409 million (US$513 million) and earnings of £120 million (US$148 million) for the year ended December 2016.

In North America, Weetabix operates a leading natural and organic RTE cereal and snacking platform in both branded and private label. Additionally, Weetabix has an established and extensive international presence, with operations in Africa through two joint ventures and a distribution export business to over 90 countries. Post has agreed in principle to establish a joint venture with Bright Food Group and an investment fund advised by Baring Private Equity Asia to manage the Weetabix China operations.

Post Holdings operates across four business segments – Post Consumer Brands (ready-to-eat cereal), Michael Foods Group (egg, potato, cheese and pasta), Active Nutrition (protein shakes, bars and powders), and

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Private Brands (nut butters, dried fruit and nuts and granola).

Post expects Weetabix to contribute approximately £120 million of adjusted EBITDA on an annual basis before the realisation of cost synergies which Post management expects to be approximately £20 million annually by the third full fiscal year post-closing.

Marston’s Acquiring Charles Wells Brewing and Beer Business For £55 Million Marston’s, the UK beer and pubs group, has agreed to acquire the Charles Wells brewing business from the Charles Wells Group for £55 million.

Based in Bedford, Charles Wells Brewing and Beer Business has a portfolio of more than 30 beers including leading brands such as Bombardier, Young’s and McEwan’s. In addition, the business has UK distribution rights for the Estrella Damm lager brand and other beers under license including Kirin and Erdinger.

As part of this acquisition, Marston’s has entered into a long-term exclusive agreement to supply all beer, wine, spirits and minerals to the Charles Wells pub estate. The brewery site, which is freehold, employs around 300 people.

Ralph Findlay, chief executive of Marston’s, comments: “The acquisition of Charles Wells Brewing and Beer Business builds on Marston’s established brewing prowess and is a further step in our objective to develop the leading premium beer business in the UK market. We have demonstrated our ability to acquire, integrate and develop

beer brands evidenced by the success of brands such as Hobgoblin, Wainwright, and Lancaster Bomber. We have also achieved success with international licensed brands including Shipyard, now the second biggest craft beer in the UK on trade.”

Lavazza Acquires Canadian Coffee Business The Lavazza Group, the Italian coffee roaster, has purchased an 80% equity stake in Kicking Horse Coffee for C$215 million, from the private-equity fund Swander Pace Capital.

Kicking Horse Coffee, a leading Canadian organic and fair-trade coffee player, has distinguished itself over the last several years with remarkable growth in both Canada and the United States.

Elana Rosenfeld, who founded Kicking Horse Coffee in 1996, will retain a 20% equity stake and will continue as chief executive.

The acquisition reflects Lavazza’s strategy of continuous international growth and diversification, consolidating its competitive position among the global sector leaders. The Lavazza Group recently announced its best-ever results,

Bas Albas, chief executive of Lamb Weston/Meijer.

Hain Celestial Expands Presence into Premium Soup Offerings

with record revenues of €1.9 billion. Lavazza Group currently operates in more than 90 countries through subsidiaries and distributors, exporting 60% of its production. Lavazza employs a total of about 3,000 people.

Lamb Weston/Meijer to Acquire Oerlemans Foods’ Potato Division

Ralph Findlay, chief executive of Marston’s.

increasing demand for frozen potato products as well as the growth ambitions of its customers. The sale allows Oerlemans Foods to further position itself as a specialist in frozen fresh fruits and vegetables. The transaction is expected to become effective later this year.

Bas Albas, chief executive of Lamb Weston/Meijer, says: “The diverse customer base of Oerlemans Foods’ potato division and the location of its factory in Broekhuizenvorst, makes this a strategic asset to further shape our own growth ambitions and those of our customers.”

Lamb Weston/Meijer has reached the completion phase of the acquisition of the potato division of Oerlemans Foods, including a take-over of the plant in Broekhuizenvorst in the Netherlands. The acquisition allows Lamb Weston/Meijer to further expand its production capacity in response to both the

FOOD & DRINK BUSINESS EUROPE, MAY/JUNE 2017

The Hain Celestial Group, a leading organic and natural products company with operations in North America, Europe and India, has completed the purchase, through its whollyowned subsidiary - Hain Frozen Foods UK – of Yorkshire Provender. Yorkshire Provender, founded in 2007, is based in North Yorkshire, England, and produces premium branded soup. Its products are sold in leading retailers, onthe-go food outlets and food service providers in the United Kingdom. Yorkshire Provender

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M E E R R G G E E R R S S M will continue to operate from its Yorkshire location. In calendar year 2016, Yorkshire Provender had approximately £6 million in net sales.

Dawn Meats and Dunbia Agree Strategic Partnership Irish and international food group Dawn Meats has agreed a strategic partnership with Dunbia, the Northern Irelandbased meat processor, to estab-

Jim Dobson, chief executive of Dunbia.

lish a majority owned joint venture in the United Kingdom comprising the UK operations of both organisations. Dawn Meats will separately acquire Dunbia’s operations in the Republic of Ireland. The deal is subject to approval by the relevant competition authorities.

In Ireland, Dawn Meats will have nine facilities (including five abattoirs), following the addition of two complementary Dunbia facilities - one abattoir in Slane, and one boning hall in Kilbeggan. The combined UK businesses will trade as Dunbia.

The businesses are highly complementary, and will offer customers regionally sourced solutions for both beef and lamb from 15 facilities across Scotland, England, Wales and Northern Ireland.

Jim Dobson, OBE, chief executive of Dunbia, will be chief executive of the new Dunbia JV, and Dawn Meats’ chief executive, Niall Browne, will be executive chairman. The joint venture will be run from Dunbia’s existing headquarters in Dungannon, Northern Ireland.

Niall Browne comments: “Given the uncertainty posed by Brexit, this partnership should

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further underpin the competiveness of both operations to the benefit of all stakeholders in the UK, Ireland and across Europe.”

Jim Dobson says: “The new UK joint venture confirms our future as a leading supplier in the UK market. In a consolidating industry this deal makes strategic sense for both companies, our customers and our farmer suppliers.”

lence capable of meeting both domestic and international demand.

Operating since 1963 and in Italy since 1989, FRoSTA Group has a turnover of ?440 million, employs 1,600 people and operates facilities in eight countries.

Parmalat Group Expands in the US

Edrington, the international premium spirits company, has acquired The Glenrothes Speyside Single Malt Scotch whisky brand for an undisclosed sum from Berry Bros & Rudd, Britain’s oldest wine and spirits merchant. The sale will see The Glenrothes brand reunited with The Glenrothes distillery and cooperage, which have been owned and run by Edrington via Highland Distillers continuously since 1887.

Parmalat Group, the global milk, dairy products and fruit beverages producer, which is controlled by Lactalis Group of France, has acquired two companies operating in the dairy sector in the US. The deal provides Parmalat Group with an important business active in the ethnic specialties segment in the US, increasing its current portfolio of gourmet cheeses and entry to the yogurt market. The enterprise value of the acquired business is about $130 million.

In 2016, the two companies had net revenue of about $55 million.

Nestlé to Sell Some Italian Frozen Food Brands As part of its investment and development plan for the Italian market, Nestlé has agreed the sale of its business branch that encompasses the La Valle Degli Orti, Mare Fresco and Surgela brands to FRoSTA Group, the frozen food company. The deal is part of the Nestlé development plan announced last December which will see the Benevento factory become ‘an international hub’ focused exclusively on the production of Buitoni frozen pizzas.

An overall investment of Eur48 million will allow a radical overhaul of the production lines, introducing cutting-edge technology, thus making the plant in Italy’s Campania region an example of production excel-

Edrington Purchases The Glenrothes Brand From Berry Bros & Rudd

Addo Food Group Sold LDC, the UK mid-market private equity investor, has backed the secondary buyout of Addo Food Group, the UK’s leading chilled savoury pastry producer, in a transaction that marks a successful exit for Vision Capital. Details of the transaction were not disclosed.

LDC has invested to support Addo's growth strategy, which will include further investment in product innovation, expansion into new markets through organic growth and potential acquisitions in adjacent markets.

Private investment fund Fullbrook Thorpe Investments invested alongside LDC. Headquartered in Nottingham, Addo produces more than 287 million packs of chilled savoury pastry products every year. The business manufactures a range of own brand and branded products including sausage rolls, hot pies, slices, pork pies, scotch egg products and quiches, which it supplies to the UK's leading names in food retail including all the major supermarkets.

Addo employs more than 2,500 people and operates across six UK sites in Nottingham, Market Drayton, Spalding,

FOOD & DRINK BUSINESS EUROPE, MAY/JUNE 2017

Poole and Shaftesbury. The business was acquired by Vision Capital from Northern Foods in 2007 and traded as Pork Farms Group until 2015 when it changed its name to Addo Food Group. In 2014, the company completed the acquisition of Kerry Food's £100 million chilled savoury pastry operations. Indeed, the Addo business has doubled in size under the ownership of Vision Capital.

Addo will continue to be led by its existing management team, headed up by group managing director, Chris Peters.

The deal with Addo represents LDC's eighth investment of 2017 and forms part of LDC's ongoing strategy to invest in leading mid-market businesses, backing high calibre management teams. LDC has a strong track record of backing businesses in the food and drink sector, with current investments including Seabrook Crisps and Vital Ingredients.

Heineken Acquires Remaining Stake in US Craft Brewer Heineken has acquired all the remaining shares in Lagunitas Brewing Company, the USbased craft brewer for an undisclosed price. Lagunitas will continue to operate as an independent entity within Heineken and will report within the Heineken Americas Region.

Heineken has enjoyed a successful partnership with Lagunitas since 2015, when it acquired a 50% stake in the company. Since then Lagunitas has continued to outperform the US beer market, where craft beer now represents about 11%

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M E E R R G G E E R R S S M of total volume. Lagunitas is the market leader in the IPA segment, the fastest growing subsegment within craft, and sold over 1 million hectolitres in 2016.

Icelandic Group to Sell Seachill The board of Icelandic Group, the leading international seafood business, has decided to initiate a sale process for its UK operations, Seachill. Seachill is a leading supplier of chilled fish to the UK retail market. Seachill is the owner of The Saucy Fish Co, which has helped to revolutionise consumer perceptions of fish in the UK and has a fast growing reputation globally.

Seachill´s revenues totalled £266.3 million in 2016, with EBITDA of £10.4 million. The company employs 750 people.

Established in 1942 and headquartered in Reykjavik, Icelandic Group owns the global seafood brand Icelandic Seafood. The group’s primary partners are Solo Seafood of Spain and Canada-based Highliner Foods.

William Grant & Sons Ventures into American Whiskey Distilling Independent family-owned Scottish distiller, William Grant & Sons, has acquired Tuthilltown Spirits, New York State’s first distillery since Prohibition. Tuthilltown produces a number of craft spirits including the award-winning Hudson Whiskey which was acquired by William Grant & Sons in 2010. The acquisition will expand the William Grant & Sons reach into craft American whiskey distilling for the first time.

Unilever to Acquire US Condiments Business Unilever has agreed to acquire Sir Kensington’s, a New Yorkbased condiment maker. Sir Kensington’s is a pioneer and 6

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leader in condiments sold in the organic and natural marketplace. Having seen strong growth the past four years, the product line now includes award-winning mustard, ketchup, mayonnaise and a ground-breaking vegan mayo made from aquafaba called Fabanaise. Launched in 2010, Sir Kensington’s will complement Unilever’s current portfolio of products in its foods category. Terms of the deal were not disclosed. The deal is expected to close in the next few weeks.

Glanbia to Sell 60% of Dairy Ireland Glanbia plc, the global nutrition group, has agreed to sell 60% of its Dairy Ireland segment to Glanbia Co-op. Dairy Ireland is currently 100% owned by Glanbia plc and is comprised of two business units - Glanbia Consumer Foods Ireland and Glanbia Agribusiness.

In 2016, Dairy Ireland generated revenue of Eur616.2 million, EBITA of Eur30.7 million and an EBITA margin of 5.0%.

In return for its 60% stake in Dairy Ireland, Glanbia plc will receive Eur112 million together with the equivalent to 100% of the amount of the working capital in Dairy Ireland at completion. The average three year working capital in Dairy Ireland over 2014, 2015 and 2016 was approximatelyEur92.5 million.

Glanbia Ingredients Ireland DAC (GIID) was established in 2012 as a dairy processing joint venture which is owned 40% by Glanbia plc and 60% by Glanbia Co-op. After completion of the proposed transaction GIID will be owned 40% by Glanbia plc and 60% by Glanbia Co-op and will be known as Glanbia Ireland. The deal will create an

integrated Irish-based business of scale which is the largest dairy processor in Ireland. It is envisaged that GIID will embark on a Eur250 million to Eur300 million strategic capital investment programme in the period 2017 to 2020.

Danone Completes$12.5 Billion Acquisition of WhiteWave Danone has completed its acquisition of WhiteWave, a global leader in organic foods, for a total enterprise value of approximately $12.5 billion. Danone and WhiteWave will now combine their activities in North America to operate as a strategic business unit, named DanoneWave.

Emmanuel Faber, chief executive of Danone, comments: “Danone and WhiteWave are a perfect match to build a global leader leveraging consumer trends and expectations for healthier and more sustainable eating and drinking choices.

With leading positions in some of the fastest growing, healthfocused categories, this combination will drive our Alimentation Revolution, our business performance, and will accelerate our 2020 growth journey.”

Refresco Rejects €1.4 Billion Takeover Offer Refresco Group, the Netherlands-based soft drinks manufacturer, has rejected an unsolicited, indicative and conditional proposal from PAI, the European private equity firm, regarding a possible Eur1.4 billion acquisition offer. Refresco has informed PAI that the proposed terms and conditions did not merit any further investigation.

Refresco is the leading independent bottler of soft drinks and fruit juices for retailers and A-brands with production in the Benelux, Finland, France, Germany, Italy, Poland, Spain, the UK and the US. The company realised full year volumes and revenue of about 6.5 billion litres and Eur2.1 billion, respectively in 2016. Refresco offers an extensive range of product and packaging combinations from 100% fruit juices to carbonated soft drinks and mineral waters in carton, PET, Aseptic PET, cans and glass.

Cherkizovo Group to Acquire NAPKO Cherkizovo Group, the largest vertically integrated meat and feed producer in Russia, is acquiring NAPKO, one of Russia’s leading grain producers.

Cherkizovo will pay RUB5 billion (Eur82 million) in cash for NAPKO’s equity and assume NAPKO’s net debt, which stood at RUB751 million as of March 31, 2017.

Among other assets, Cherkizovo Group will acquire NAPKO’s agricultural land of 147,000 hectares located in the Lipetsk, Tambov and Penza regions, which are strategically important areas for Cherkizovo Group. In 2016, NAPKO produced 250,000 tons of grain.

FOOD & DRINK BUSINESS EUROPE, MAY/JUNE 2017

JAB Extends Global Coffee and Food Empire With $7.5 Billion Acquisition Investment group JAB is extending its global coffee and food empire by acquiring Panera Bread Company, the US-based restaurant chain, for a transaction value of approximately $7.5 billion (including the assumption of $340 million of net debt).

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JAB already holds controlling stakes in Keurig Green Mountain, a leader in single-serve coffee and beverage technologies; Jacobs Douwe Egberts (JDE), the largest pureplay FMCG coffee company in the world; Peet's Coffee & Tea, a premier specialty coffee and tea company; Caribou Coffee Company, a specialty retailer of high quality premium coffee products; Einstein Noah Restaurant Group, a leading company in the quickcasual segment of the restaurant industry; Krispy Kreme Doughnuts, a global specialty

retailer and wholesaler of premium quality sweet treats; and Espresso House, the largest branded coffee shop chain in Scandinavia.

Real Good Food Purchases Majority Stake in Brighter Foods Real Good Food, the diversified UK-based food group, has acquired an 84% interest in Brighter Foods, the Welsh snacks manufacturer, for up to £9 million, on a cash and debt

free basis. Brighter Foods creates and manufactures snack bars for the healthy snacking market from its factories in Tywyn, Gwynedd in Mid Wales, where it is a major local employer with some 170 fulltime staff.

business to Bodega Las Copas (a Spanish joint venture between the Emperador Group and González Byass). The disposal includes the brand portfolio of Mexican brandies Don Pedro, Presidente and Azteca de Oro as well as the winery related to the production of Mexican wines in Ensenada, together with the relevant inventories related to the Domecq brands in several markets, including Spain, United States, Belgium and the Netherlands, among others.

The disposal is in line with the Pernod Ricard’s strategy to simplify its portfolio for growth and focus on its priority spirits and wines brands. It reinforces the presence of Bodega Las Copas in the global brandy category.

Spanish Brewer Enters Irish Craft Beer Sector Hijos de Rivera, the Spanish family-owned business, has purchased a 32% stake in Carlow Brewing Company, the independent Irish craft brewer.

The founders will retain their controlling majority shareholding and leadership of Carlow Brewing Company and the investment will enable the company to offer a return on investment to its original group of minority shareholders as well as benefit from Hijos de Rivera’s well-established distribution channels and networks, aiding the development of new and existing export markets.

Based in Galicia in Northern Spain, Hijos de Rivera currently holds 6% of the Spanish beer market, and is most well known for its Estrella Galicia beer brand and Maeloc cider brand.

Pernod Ricard Completes Domecq Disposal Pernod Ricard has completed the Eur81 million sale of its Domecq brandies and wines

FOOD & DRINK BUSINESS EUROPE, MAY/JUNE 2017

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COVER STORY

The Top 100 Food and Drink Manufacturers in the UK and Ireland Food & Drink Business Europe presents its 22nd annual ranking of the top one hundred food and drink manufacturers in the UK and Ireland, while highlighting some of the key corporate developments within the industry during the past twelve months.

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he Top 100 companies are ranked according to their most recently available turnover figures, with pretax profits also listed. The top 28 places in the league table are held by companies with a turnover in excess of £1 billion.

The 100 companies listed range in scale from the £135.4 million turnover Welsh brewer and hospitality company, SA Brain & Co, upward to Unilever’s foods and refreshment business, which achieved global sales of Eur22.5 billion (£19.15 billion) in 2016.

Top ranked Unilever recently rejected a takeover bid by Kraft Heinz Company which valued the global foods, refreshment, home care and personal care group at $143 billion (£115 billion). Following a review of its operating model, Unilever has now decided to combine its Foods and Refreshment divisions into one organisation, and to dispose of its Spreads business, which incorporates the Flora, Stork and I Can't Believe it's So Good brands.

The integrated Foods & Refreshment unit will be located in the Netherlands, which is the centre for Unilever’s European Foods business and where it has established

George Weston, chief executive of Associated British Foods, which is ranked 2nd in the Top 100.

slight dip in transactions, the overall result demonstrates the robust nature of the sector, according to Grant Thornton UK.

Ivan Menezes, chief executive of Diageo (ranked 3rd). Diageo is the largest drinks company in the Top 100.

a world-class research and development facility. The organisation and cost structure for this new unit will be re-designed to reflect the large scale it enjoys in developed markets, while sustaining faster growth in emerging markets.

Overseas Investors The appetite of overseas investors for UK food and beverage companies is growing, with 2016 recording the highest level of activity for three years. Transactions involving overseas investors rose to almost a third (32%) of all M&A deals in 2016, representing a continued progression from 20% in 2014 and 28% in 2015. Due to the depreciation of sterling following the result of the EU referendum vote, keen interest from overseas investors is likely to continue, with UK assets now around 20% cheaper for overseas buyers, Grant Thornton UK points out. £1.4 Billion Acquisition The biggest deal of this kind during the past twelve months is the £1.4 billion

M&A Activity Overall merger and acquisition activity within the UK food and drink industry remains high. Although the volume of deals declined moderately last year compared to the previous twelve months, 2016 was still the second busiest year for M&A activity in the sector since 2007. Total disclosed deal value for 2016 was £8.4 billion - down 22% against 2015’s total of £10.8 billion, according to leading business and financial adviser Grant Thornton UK. Indeed, 2016 was a solid year for M&A activity in the food and beverage sector, despite a fall in both the number and the total disclosed value of deals compared to the previous year. Given the level of uncertainty in the market amidst the EU referendum, which appears to have prompted a

FOOD & DRINK BUSINESS EUROPE, MAY/JUNE 2017

Edmond Scanlon, who will replace Stan McCarthy as chief executive of Kerry Group in September 2017. Kerry Group is ranked 4th.

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Private Equity Asia. Bright Food originally acquired 60% of Weetabix from private equity firm Lion Capital for £720 million in 2012.

Asian Interest Asian investors, particularly from Japan,

have been prominent in the strong overseas interest being shown in UK food and drinks assets. They accounted for 19% of all overseas buyers last year, up from 11% in 2014 and 13% in 2015. For example, Sumito Corporation of Japan is acquiring Fyffes, a leading international grower,

Tomas Pietrangeli, managing director of Arla Foods UK (ranked 7th).

acquisition of Weetabix Food Company, the ready-to-eat (RTE) cereal products manufacturer, by Post Holdings, a USbased consumer packaged goods holding company and the third largest cereal company in the US. Founded in 1932, Weetabix holds the number two overall position in the UK RTE cereal category. Its portfolio includes the iconic Weetabix brand, which holds the number one brand position in the UK RTE cereal category, as well as Alpen (the number one muesli brand in the UK), Barbara’s, Weetos and Ready Brek. Weetabix has also established an extensive international presence, including operations in North America, South Africa, Germany and Spain, and exports to over 90 countries. Weetabix Ltd is ranked 59th in the Top 100.

Before the move by Post Holdings, Weetabix had announced a £30 million capital investment programme across its UK manufacturing sites at Burton Latimer and Corby to create new production capacity to match rising sales. Post Holding is buying Weetabix from Bright Food Group, a Shanghai-based state-owned business, and an investment fund advised by Baring

Company 1 (1) Unilever (Foods & Refreshment) 2 (2) Associated British Foods 3 (3) Diageo 4 (4) Kerry Group 5 (5) Boparan Holdings

Turnover

Pre-tax Profits

Ownership/Status

£19.15b £13.40b £10.49b £5.21b £3.13b

£2.68b* £1.04b £2.86b £557.4m £63.4m

6 (7) Tate & Lyle 7 (6) Arla Foods UK

£2.75b £2.57b

£233.0m -£63.8m

8 (8) Glanbia 9 (9) ABP Food Group

£2.42b £2.30bE

£214.8m nd

£2.07b

£189.8m

plc plc plc Irish co-op/plc Incorporating 2 Sisters Food Products – Independent plc Arla Foods, Denmark/Sweden Irish co-op/plc Formerly Irish Food Processors - Irish independent plc

£1.76b

£265.9m

12 (14) Bakkavor Group 13 (11) Mondelez UK

£1.76b £1.73b

£63.1m £177.3m

14 (-) Nomad Foods 15 (13) Nestle UK

£1.64b £1.58b

£64.6m £112.7m

17 (15) Princes

£1.49b £1.48b

£13.4m £54.4m

18 (19) Greencore 19 (16) Moy Park 20 (21) Britvic plc

£1.48b £1.44b £1.43b

£48.2m £35.7m £151.9m

10 (20) Greene King 11 (12) Coca-Cola European Partners GB

16 (10) Ornua (formerly Irish Dairy Board)

Siobhan Talbot, group managing director of

Coca-Cola European Partners Independent Mondelez International, US Nomad Foods Nestle, Switzland Irish dairy co-ops Mitsubishi, Japan plc JBS, Brazil plc

Source: KEY NOTE, Irish Times, company accounts. * operating profits. Eur = £0.85. Figures in brackets indicate previous year’s rankings.

Glanbia (ranked 8th).

FOOD & DRINK BUSINESS EUROPE, MAY/JUNE 2017

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IRL P: +353 (0) 1 206 3546 UK P: +44 (0) 1905 797 280 E: sales.ireland@pentair.com / sales.uk@pentair.com

Top 100) employs more than 2,500 people and operates across six UK sites in Nottingham, Market Drayton, Spalding, Poole and Shaftesbury. The business was acquired by Vision Capital from Northern Foods in 2007 and traded as Pork Farms Group until 2015, when it changed its name to Addo Food Group. In 2014, the company completed the acquisition of Kerry Foods’ £100 million chilled savoury

pastry operations. Indeed, the Addo business has doubled in size under the ownership of Vision Capital. LDC has a strong track record of backing businesses in the food and drink sector, with current investments including Seabrook Crisps and Vital Ingredients.

Ice Cream Venture On the international front, PAI Partners of

Agust Gudmundsson, chief executive of Bakkavor Group (ranked 12th).

importer and distributor of fresh produce, for Eur751.4 million. Headquartered in Dublin, Fyffes has operations in Europe, the US, Canada, Central America and South America and Asia. It ranks 37th in the Top 100.

Another Japanese company, Asahi Group recently entered the UK brewing market by acquiring Miller Brands UK and Meantime Brewing Company, as part of its Eur2.55 billion purchase of SABMiller’s Italian, Dutch and British businesses from Anheuser-Busch InBev. Private Equity Involvement The number of transactions involving private equity buyers has also been increasing.

The most recent deal of this nature is the secondary buyout of Addo Food Group, the UK’s leading chilled savoury pastry producer, by LDC, the UK mid-market private equity investor.

Addo Food Group (ranked 77th in the

Stefan Descheemaeker, chief executive of Nomad

Company Turnover 21 (17) Muller UK & Ireland Group £1.34b

Pre-tax Profits na

22 (18) MolsonCoors Brewing (UK) £1.29b

£59.4m

23 (22) Wm Morrison Produce

£1.29b

£91.9m

24 (28) Cranswick 25 (26) AB InBev UK

£1.25b £1.24b

£77.5m £52.1m

26 (23) Heineken UK

£1.23b

-£16.0m

27 (27) Hilton Food Group 28 (24) Tulip

£1.23b £1.16b

£33.2m £9.5m

29 (33) Marston’s 30 (36) Dawn Meats Group 31 (34) Samworth Bros 32 (31) Chivas Bros

£937.3m £935mE £928.0m £927.5m

£80.8m nd £49.5m £284.2m

33 (32) United Biscuits (UK)

£903.4m

£105.4m

34 (35) Greggs 35 (30) William Grant & Sons 36 (37) Mars Chocolate UK 37 (-) Fyffes

£894.2m £882.5m £851.6m £837.5m

£75.1m £177.2m £103.2m £27.0m

38 (39) Premier Foods 39 (38) Dunbia 40 (-) Froneri International

£790.4m £787.5m £730.7m

£12.0m £7.2m 31.5m

Ownership/Status Alois Muller, Germany Molson Coors Brewing, US Wm Morrison Supermarkets plc plc Anheuser-Busch InBev, Belgium Heineken, Netherlands plc Danish Crown, Denmark plc Irish independent Independent Pernod Ricard, France Yildiz Holding, Turkey plc Independent Mars, US Sumito Corporation, Japan plc independent PAI Partners, France & Nestle

Source: KEY NOTE, Irish Times, company accounts. * operating profits. Eur = £0.85.

Foods (ranked 14th).

FOOD & DRINK BUSINESS EUROPE, MAY/JUNE 2017

13

International Expansion A number of Top 100 food and drink companies have also continued to expand internationally through acquisitions during the past twelve months. For example, Glanbia (ranked 8th), the global nutrition group, is investing approximately Eur181 million to acquire two companies, Amazing Grass in the United States and Body & Fit in the Netherlands. Both businesses have a strong strategic fit with Glanbia’s Performance Nutrition division and will extend its reach to new consumers and channels.

Another international business with Irish origins, Greencore (ranked 18th) has strengthened its US business with the acquisition of Peacock Foods for $747.5

million (£594.3 million). Dublin-based Greencore is one of the leading manufacturers of convenience foods in the UK. The acquisition and integration of Peacock Foods has transformed Greencore’s market and channel position in the US, providing a growth platform of real scale. Greencore had earlier enhanced its position in the high growth food to go category of the UK convenience food market with the £15 million acquisition of The Sandwich Factory from Cranswick.

Independent family-owned Scottish distiller, William Grant & Sons (ranked 35th) has recently ventured into the American whiskey distilling sector with the acquisition of Tuthilltown Spirits, New York State’s first distillery since Prohibition.

Stefano Agostini will become chief executive of Nestlé UK & Ireland (ranked 15th) on July 1st, 2017.

France has merged its R&R ice cream business with that of Nestlé to create a new joint venture called Froneri. Froneri will manufacture and market ice cream products in and outside of Europe, and frozen food products in Europe.

With sales of around Eur2.6 billion, Froneri has operation in 22 countries across the world, employing around 15,000 people. The company is headquartered in the UK and operates sites primarily in Europe, the Middle East (excluding Israel), Argentina, Australia, Brazil, the Philippines and South Africa.

Froneri’s chief executive is Ibrahim Najafi, formerly chief executive of R&R, and the chairman is Luis Cantarell, executive vice president of Nestlé Europe, Middle East and North Africa. Nestlé and PAI Partners hold equal equity interests in the new joint venture. Froneri International is ranked 40th in the Top 100.

Janet McCollum, chief executive of Moy Park (ranked 19th).

Company 41 (40) Kepak 42 (42) Dairygold Co-op 43 (43) Young’s Seafood 44 (41) Edrington Group 45 (44) Warburtons 1876 46 (46) Faccenda Foods

Turnover £723mE £642.7m £587.9m £574.6m £574.4m £523.4m

Pre-tax Profits nd £5.8m £37.4m £144.8m £34.4m £0.87m

47 (29) Carlsberg UK

£521.3m

£17.2m

48 (49) Lakeland Dairies 49 (47) C&C Group 50 (53) McCain Foods GB

£510.9m £475.6m £452.3m

£6.1m* £74.1m £63.8m

51 (55) Sun Valley Foods 52 (56) Heineken Ireland

£439.2m £435.7m

£6.9m nd

53 (48) Lucozade Ribena Suntory 54 (54) Dairy Crest 55 (45) Noble Foods 56 (50) Karro Food Group 57 (60) Irish Distillers Group

£424.9m £416.6m £415.0m £408.5m £383mE

£72.2m £40.3m £9.1m £5.2m nd

58 (62) Fuller Smith & Turner 59 (59) Weetabix Ltd

£350.5m £346.4m

£39.2m £94.3m

60 (78) Finsbury Food Group

£319.7m

£11.8m

Ownership/Status Irish independent Irish co-op Lion Capital, UK Independent Independent Hillesden Investments Carlsberg, Denmark.

Irish co-op Irish plc McCain Foods, Canada Cargill, US Heineken, Holland Suntory, Japan plc Independent Independent Pernod Ricard, France plc Post Holdings, US plc

Source: KEY NOTE, Irish Time, company accounts. * operating profits. Eur = £0.85.

FOOD & DRINK BUSINESS EUROPE, MAY/JUNE 2017

15

are forming a strategic partnership. Dunbia, the Northern Ireland-based meat processor, will establish a majority owned joint venture in the UK by combining the UK operations of both organisations. The enlarged UK business will trade as Dunbia.

Irish and international food group Dawn Meats will separately acquire Dunbia’s operations in the Republic of Ireland. This will increase Dawn Meats’ number of facilities in the country from seven to nine (including five abattoirs). The deal is sub-

ject to approval by the relevant competition authorities.

Drinks Sector In drinks, Marston’s, the British brewer and pubs operator, is acquiring the Charles Wells Group’s brewing business for £55 million. The purchase of the Charles Wells Brewing and Beer business extends Marston’s leadership position in the premium bottled ale and cask ale markets, and expands its share of the premium canned

Adam Couch, chief executive of Cranswick (ranked 24th).

Meanwhile, soft drinks producer Britvic (ranked 20th) has further expanded its presence in Brazil with the acquisition of Bela Ischia Alimentos, a concentrates and juice business, for R$218 million (£54.5 million). Brazil is the world's largest concentrates market.

Latest Deals Although the level of M&A deals has slowed in the first quarter of 2017, a number of significant deals involving Top 100 companies have been announced. Ranked 56th in the Top 100, Karro Food Group, the Yorkshire-based pork processor, is the subject of a £180 million takeover by CapVest, the private equity firm.

Two other meat groups, Dawn Meats (ranked 30th) and Dunbia (ranked 39th)

Simon Hunt, chief executive of William Grant &

Company 61 (71) William Jackson & Son 62 (66) KP Snacks

Turnover £315.3m £314.3m

Pre-tax Profits £14.0m -£1.3m

63 (65) JW Galloway (Scotbeef) 64 (74) Ferrero UK 65 (63) Dale Farm

£311.1m £305.8m £303.7m

£5.6m -£15.7m £5.3m

66 (68) Foyle Food Group £297.2m 67 (52) First Milk £291.5m 68 (64) Burton’s Biscuit Company £287.4m

£3.5m -£3.4m £14.1m

69 (70) Yeo Valley Group 70 (72) Walkers Snack Foods 71 (73) Bernard Matthews

£273.2m £272.2m £267.m

£11.9m £15.4m -£3.7m

72 (75) Seachill

£266.3m

£10.4m*

73 (69) Cott Beverages

£266.0m

£37.6m

74 (76) AG Barr 75 (77) Wrigley Company 76 (80) Baxters Foods Group 77 (-) Addo Food Group 78 (82) McCormick UK 79 (58) Meadow Foods 80 (84) Innocent

£257.1m £254.8m £248.6m £236.4m £236.0m £228.3m £223.6m

£43.1m £62.0m £4.7m £0.2m £16.6m £11.7m £11.0m

Ownership/Status Independent Intersnack, Germany Independent Ferrero, Italy United Dairy Farmers Group Independent Co-operative Ontario Teachers' Pension Plan, Canada Independent PepsiCo, US Boparan Private Office Icelandic Group, Iceland Cott Corporation, Canada plc Mars, US Independent LDC, UK McCormick, US Independent Coca-Cola, US

Source: KEY NOTE, Irish Times, company accounts. * operating profits. Eur = £0.85.

Sons (ranked 35th).

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17

beer market. The acquisition also strengthens Marston’s presence in London and the South East and provides a platform to expand into Scotland.

The biggest deal within the sector during the past twelve months was Heineken UK’s £402.7 million purchase of Punch, one of the UK’s largest leased pub companies, with a portfolio of more than 3,500 outlets nationwide. Punch is being added to

Heineken UK’s existing leased pub business - Star Pubs & Bars.

The deal marks a significant development in Heineken’s strategy to unlock value in the UK pub market. According to Heineken UK (ranked 26th in the Top 100), well invested and well run pubs in the leased and tenanted sector can thrive despite the challenging market conditions.

Bill Showalter, chief executive of Young’s Seafood (ranked 43rd).

Company

81 (85) R&R Ice Cream UK 82 (-) Volac International 83 (81) Thorntons

Turnover

Pre-tax Profits

Ownership/Status

£202.1m

£43.0m

PAI Partners, France & Nestle

£197.4m

£11.2m

Independent

£191.3m

-£19.5m

Ferrero International,

84 (-) Linden Foods 85 (87) Charles Wells 86 (83) Lactalis McLelland 87 (-) Zetar 88 (95) Symington’s 89 (88) Halewood International 90 (86) Coca-Cola HBC Northern Ireland

Switzerland £189.5m

£2.2m

Co-operative £188.8m

£7.6m

Charles Wells

£186.7m

-£16.4m

Lactalis, France

£180.3m

£18.1m

Zertus, Germany

£175.8m

-£6.1m

Independent

£174.1m

-£3.0m

Independent

£172.3m

£9.7m

Coca-Cola HBC, Greece

91 (89) Manderley Food Group (Tayto)

92 (93) Marlow Foods

Fane Valley

£163.3m

£2.9m

Independent

£158.1m

£18.1m

Monde Nissin

Pending M&A Deals A number of key M&A deals appear to be on the horizon. Nomad Foods (ranked 14th), Europe’s leading frozen food company, which was created following a series of major acquisitions, is reported to have a Eur600 million war-chest at its disposal to fund further deals. Nomad Holdings, a publicly listed acquisition company, initially purchased Iglo Foods, Europe’s largest frozen food business with iconic brands including Birds Eye in the UK and Ireland, Iglo in Germany and other continental European markets, and Findus in Italy, for Eur2.6 billion from private equity group Permira. The business subsequently changed its name to Nomad Foods.

Nomad Foods further extended its European footprint with the acquisition of Findus Group’s continental European businesses in Sweden, Norway, Finland, Denmark, France, Spain and Belgium for £500 million. The remaining part of the Findus Group, including Young's Seafood in the UK, was not part of the deal.

The acquisitions created a pan-European

Corporation,

93 (98) Natures Way Foods 94 (-) St Austell Brewery 95 (91) Tangerine Confectionery 96 (97) Shepherd Neame 97 (96) Walkers Shortbread 98 (-) HJ Heinz Manufacturing 99 (90) Whyte & Mackay Group 100 (100) SA Brain & Co

Philippines £153.8m

£11.3m

Independent

£153.2m

£14.0m*

Independent

£151.9m

£9.4m

Independent

£139.9m

£10.3m

plc

£139.4m

£11.9m

independent

£138.2m

£80.6m

Kraft Heinz, US

£135.5m

£24.3m

Emperador, Phillipines

£135.4m

£3.2m

Independent

Source: KEY NOTE, Irish Times, company accounts. * operating profits. Eur = £0.85.

Mark Thorpe, chief executive of KP Snacks (ranked 62nd).

18

FOOD & DRINK BUSINESS EUROPE, MAY/JUNE 2017

James Staughton, chief executive of St Austell Brewery (ranked 94th).

food business with operations in 17 countries. Nomad Foods reported revenue of Eur1.93 billion and after tax profits of Eur36.4 million for 2016.

Nomad Foods’ goal is to develop a global consumer foods company. In addition to pursuing organic growth initiatives, Nomad Foods is also seeking strategic acquisitions to build a portfolio of best-inclass food companies and brands within existing and new categories. Nomad Foods is expected to initially target complementary frozen food brands in Europe. The company may then look at the European non-frozen foods or the non-European foods sectors.

Meanwhile, the board of Icelandic Group, the leading international seafood business, has decided to initiate a sale process for its UK operations, Seachill (ranked 72nd in the Top 100). Seachill is a leading supplier of chilled fish to the UK retail market.

Seachill is the owner of The Saucy Fish Co, which has helped to revolutionise consumer perceptions of fish in the UK and has a fast growing reputation globally. The company employs 750 people.

Cider Sale Aston Manor, the largest independently owned cider maker in the UK and the second largest manufacturer of cider in the country, has appointed investment bank Lazard to advise on the future direction of the business, which could result in a sale.

Aston Manor is controlled by Doug Ellis, the former chairman of Aston Villa Football Club.

Aston Manor has featured in the Top 100 in the past but a decline in turnover has resulted in its exclusion. Established in 1983, it has a production and packaging facility in Birmingham, orchards in Worcestershire and Herefordshire and a further production and packaging facility at Tiverton in Devon. Its product range spans from mainstream to premium ciders such as Malvern Oak and Malvern Gold through to organic cider. The company currently exports a range of ciders to more than 20 countries including America, Russia and a number of countries in Africa.

Brexit Of course, food and drink manufacturers in the UK and Ireland are facing uncertainty and major challenges following the Brexit referendum result and the ensuing political posturing. The food and drink industry is the UK’s largest manufacturing sector, contributing £28.2 billion to the economy annually and employing more than 400,000 people. It also export goods valued at over £20 billion a year.

According to a recent House of Lords report, up to 97% of food and drink exports from Britain could be at risk when the UK leaves the Single Market. Indeed, over 70% of exports and vital imports is with EU member states, points out the UK Food and Drink Federation( FDF), and “94% of imports and 97% of exports are with countries with which the EU has negotiated an FTA.” Because of its high export orientation, with the UK being a major trading partner, the Irish food and drink industry will also

FOOD & DRINK BUSINESS EUROPE, MAY/JUNE 2017

be heavily impacted by Brexit. The highly integrated nature of the production/processing chains in both Northern Ireland and the Republic of Ireland will also pose major problems post Brexit unless Ireland as an island receives special treatment with regard to customs controls and tariffs.

According to the FDF: “Food and farming is the sector most impacted by Brexit.

Whether it is access to future workforce, the shape of the regulatory regime, our trading relationships, or the all-Ireland agri-food supply chain, the long-term future for UK food and drink is dependent on the deal the next Government secures.”

Currency fluctuation since the Brexit vote have already impacted and over 90% of FDF members have reported price rises for essential ingredients and raw materials.

The FDF has called upon the new Government, following the June General Election, to implement five key policies to ensure the UK’s food and farming sector continues to lead the world. This includes securing the best possible Brexit for food and drink, including a transition phase to avoid any ‘cliff edge’. J

Scott Waddington, chief executive of SA Brain & Co (ranked 100th).

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I SOFT DRINKS

Britvic Solid in Transformation Britvic is currently mid-way through a three-year, £240 million transformational investment programme as the UK soft drinks group pursues its strategy of organic growth and international expansion based on creating and building scale brands. ritvic combines its own leading brand portfolio including Fruit Shoot, Robinsons, Tango, J2O, Teisseire and MiWadi with PepsiCo brands such as Pepsi, 7UP and Mountain Dew Energy, which are producing and sold under licence in Great Britain and Ireland. Britvic is the largest supplier of branded still soft drinks in Great Britain and the number two supplier of branded carbonated soft drinks. It is also a market leader in Ireland with brands such as MiWadi and Ballygowan, in France with brands such as Teisseire and Pressade and in Brazil with Maguary and Dafruta.

Britvic is growing its reach into other territories through franchising, export and licensing.

sourced ingredients, containing spring water mixed with real fruit.

According to Simon Litherland, the breadth of the portfolio and strength of its core brands coupled with an increasing innovation capability means that Britvic is “well placed to adapt and evolve with consumer trends and customer needs that continue to change, probably faster than ever before.”

B

£240 Million Investment Britvic’s three-year, £240 million business capability investment programme, which is designed to enhance supply chain flexibility and efficiency with a minimum 15% EBITDA return, is well advanced. A large PET line was installed at the group’s Leeds factory in England last year and is now fully operational, generating the planned cost savings and providing additional market opportunities. Along with a new 1.5 litre PET contour bottle, Britvic has launched a 3 litre PET carbonates pack that is facilitating access to new commercial opportunities.

Britvic’s Rugby factory in England is undergoing substantial change, with major groundworks, three new can lines and preparation for a new aseptic line all underway. Meanwhile, at the London site, a new large PET line is now fully operational.

“Undergoing such a major change programme has required a huge effort and level of commitment from the Britvic team.

Simon Litherland, chief executive of Britvic.

Implementation challenges are inevitable with a programme of this scale and I am proud of how the team continue to overcome obstacles and keep us on schedule and on-track to deliver the planned benefits,” comments Simon Litherland, chief executive of Britvic. “Once complete, this programme will step change our ability to compete in the market and give us a fantastic platform to grow the business.”

Strong Financial Performance Despite the challenging trading environment across all its markets, Britvic delivered a strong performance in the year ended 2 October 2016, with revenue increasing by 10.1% to £1.43 billion and pre-exceptional EBITA by 8.4% to £186.1 million. Likefor-like revenue rose by 0.4% and like-forlike pre-exceptional EBITA by 3.8% to £178.8 million.

Britvic’s ongoing investment in its marketing and innovation capability is now bearing fruit. The contribution from innovation continues to grow and represented 4% of 2016 revenue. Recent successes in Great Britain include J20 Spritz and Robinsons Squash’d. More recently, Britvic has launched a further addition to its leading Robinsons squash brand. Created to appeal to consumers looking for more interesting and lower sugar fruit drink options and no added sugar, Robinsons Refresh’d is made using 100% naturally

Good Start With the transformational business capability programme helping to build a more efficient operation, Britvic has made a strong start in the first half of its current financial year. Revenue rose by 11.5% to £756.3 million and pre-exceptional EBITA by 6.7% to £73.6 million in the 28 weeks ended 16 April 2017, compared to the corresponding period last year. Organic revenue rose by 3.7% and organic pre-exceptional EBITA by 5.1%, with all business units in growth compared to last year.

The company is implementing measure to deliver £5 million of overhead savings in the current financial year. On the international front, Britvic completed the complementary bolt-on acquisition of Bela Ischia in Brazil and is continuing to build distribution for the Fruit Shoot brand in the US. “Britvic has delivered a strong first half performance driven by organic revenue growth in all our markets and successful management of input cost inflation,” says Simon Litherland. “We have continued to make progress delivering our strategic priorities and have exciting commercial plans for the second half of the year.” J

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I POULTRY

Faccenda Foods Takes Long-term Approach Despite the tough trading environment, Faccenda Foods, which is one of the UK’s largest poultry processors, is taking a long-term approach and continuing to invest strongly across its operations to ensure an efficient and sustainable supply chain. accenda Foods is a vertically integrated business, controlling the whole product supply chain across its chicken, turkey and duck operations in England and Wales. Wholly owned by the Faccenda family, the company supplies both the retail and food service channels.

The company’s strategy is to invest strongly across its supply chain, in agriculture enrichment, facility development and food safety to establish the business as the first choice supplier for poultry and to enhance its position as the only UK supplier of chicken, turkey and duck. For example, following recent investment of £35 million, Faccenda Foods’ extended flagship processing site at Telford in Shropshire is now one of the most advanced facilities of its type in Europe.

F

Andy Dawkins, managing director of Faccenda Foods, says: “I don’t think it’s been an easy year for anyone in the industry. Export and wholesale prices are at historic lows, the market is as competitive as it has ever been, and these, combined with higher feed and fuel prices due to currency fluctuations, have unsurprisingly put pressure on our margins.”

However, Andy Dawkins is clear that despite the challenging competitive environment Faccenda Foods has continued to invest strongly in its food businesses.

“Competing in this market requires investment for the long term so that your supply chain is efficient, sustainable and fit for the future. This has been our approach when making investment decisions.”

He elaborates: “It’s been a tough year but we’ve held up well. Our balance sheet remains strong and we are well positioned in growth markets. Regardless of the prevailing economic conditions some simple rules hold true - focus on your people, focus on your customers and focus on the long-term.”

Joint Venture in Cooked Poultry To enhance its product offering, Faccenda Foods recently entered a new joint venture with Dartmouth Foods, a Faccenda Foods is one of the UK’s largest poultry processors. supplier of cooked poultry and fish products to the Challenging Trading Environment British sandwich and retail market. The The tough trading environment is reflected alliance will combine the respective skills of in Faccenda Foods financial results for the two UK foods businesses and deliver 2016. Although top line growth was broad- growth, efficiency and a unique proposily flat, down from £526 million to £523 tion for customers. The new venture will million, operating profit was impacted by retain the Dartmouth Foods name, capitalcontinued price deflation, at £7.7 million. ising on its strong brand and reputation for Despite the challenging market Faccenda quality.

Starting with duck, the new joint venhas continued to invest throughout its supply chain, including new fresh despatch ture will integrate cooked poultry operafacilities at Brackley in Northamptonshire, tions into the Faccenda Foods poultry supa programme of biomass fuelled heating ply chain. Working together, the arrangeacross its farming estate and continued ment will provide a secure supply, clear investment in food safety, with a particular provenance and deliver significant increases in capacity and potential for product develfocus on tackling Campylobacter.

Andy Dawkins, managing director of Faccenda Foods.

opment. Ultimately, the venture will offer a unique proposition in the cooked poultry meat sector, being the only UK supplier able to offer cooked British chicken, turkey and duck.

New £10 Million Facility Production will start this summer in a brand new £10 million facility in Plymouth. Built to meet the highest environmental standards, and with state-of-theart cooking facilities, the new site will significantly increase capacity and efficiency, opening up potential for new product development. Customers for cooked poultry products will benefit from more products, better quality, with the confidence that comes from a short supply chain.

The new business builds on the successful long term supply agreement that previously existed between Dartmouth and Faccenda Foods and will support the growth ambitions of both businesses.

“A significant proportion of the duck market is in cooked products, and the team at Dartmouth Foods are great at what they do, so working more closely and integrating the cooked operation into the supply chain makes perfect sense. We believe that consumers will love the quality and taste of our duck and this partnership will enable more of them to try it,” says Andy Dawkins. J

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I POULTRY

Stork Inline Thigh Filleting Up to High Capacities he market for thigh fillet is opening up, T offering plenty of opportunities worldwide. To benefit fully from this development, poultry processors can now process thighs by using the all-new inline Stork Thigh Fillet System.

In some countries, mainly in the Far East, chicken thigh meat has always been more popular than breast fillet. Nowadays however, there’s a global consumer trend to upgrade thigh meat, especially for its taste.

It’s not just the big market in China; Scandinavia also has a large appetite for thigh fillets, while Latin American markets love thigh meat too. In the USA and Russia as well, thigh products are appreciated more

ning and bone extraction to knee cap removal and fillet harvesting, every single task is meticulously performed. The techniques used are ingenious, though simple and easy to control.

Manual shackling or rehanging is no longer necessary, as the process remains completely inline after the cut-up process.

The system mechanically mimics the manual work of a skilled operator, ensuring a consistently processed “butcher quality” thigh meat. A consistent performance can be achieved for all products entering the system, irrespective of size or quality. The inline concept is more stable and much faster than manual deboning could ever be.

The reliable process requires an absolute minimum of operators to check and trim. Therefore it saves considerable labour.

Gentle Handling

and more. As a consequence, industrial thigh deboning solutions will be needed worldwide to produce the required amounts of thigh fillets.

Marel Poultry has developed a globally unique inline thigh filleting concept, which can handle high speed lines. The Stork Thigh Fillet System can produce deboned thigh meat of high yield and quality with minimal trim operators or inspectors required. The system can keep up with the highest hourly throughputs while processing thighs with high precision and consistency.

It is the task of the thigh deboning system to preserve the quality of the supplied anatomic legs throughout the deboning process. That’s why bone handling is gentle and far from being ‘aggressive’. Putting too much pressure on the bone to get it out could mean the loss of a carefully harvested oyster and thus loss of

Butcher Quality From an Inline System

The Stork Thigh Fillet System makes use of five carrousel modules.

From knee joint incision, via skin24

FOOD & DRINK BUSINESS EUROPE, MAY/JUNE 2017

quality, which is exactly what Marel Poultry wants to prevent. Instead, this system uses a unique push-pull technique which makes for long-term reliability and low cost of ownership. During the entire process, thigh bones are never subject to excessive forces but are gently handled, notwithstanding the high speeds.

A Revolutionary Knee Cap Solution

Around the knee cap of a chicken leg, there is always valuable meat which usually isn’t harvested. The new Stork Thigh Fillet System succeeds in efficiently adding the knee joint meat to the higher value thigh meat. A maximum of meat from around the knee is harvested without putting undue stress on the drumstick. What pops out – automatically and reliably, without any human labor needed - is a bare knee cap.

Yield and Quality

The Stork system produces thigh fillet with highest yield. Thigh fillets now can have a maximum amount of meat attached, with almost no losses, damage or bone remnants.

The final outcome of the inline thigh deboning system is a tasty thigh fillet, a completely finished end product. Meat is smooth without roughness or raggedness.

Product presentation – natural or marinated – is first class, ready for retail sale and for delicious meals.

For more about the Stork Thigh Fillet System visit www.marel .com/tfs. J

I NUTRITION

Sports & Active Nutrition – Continued Growth in Europe Euromonitor International predicts that the sports nutrition market is forecast to grow at an average of 8–10% year on year by the end of 2021. In Europe, the market was worth $2.24 billion, up more than 12.3% on the previous year. ports nutrition continues to demonstrate signifiS cant growth, and faster than many comparable consumer health and packaged goods industries, says Nick Morgan, director of Sports Integrated and joint chair of Bridge2Food’s 7th Sports & Active Nutrition Summit which takes place in the Netherlands from 12-14 June, 2017.

“Traditionally, the heartland of bodybuilders and aesthetically driven male consumers, much of the growth is attributed to the awareness and interest amongst more ‘active’ or mainstream consumers, where high protein products in convenient formats, available in wider retail outlets is becoming the norm.” Nick Morgan adds: “However, as the consumer base broadens, so does the reasons for consuming products and the sports nutrition industry needs to better understand how to approach and target consumers that span performance and health orientated goals, including those that want to gain muscle mass, improve endurance, or just eat healthier.”

The unique format of the 7th Sports & Active Nutrition Summit led by Nick Morgan and Dr Adrian Hodgson, Nutrition Innovation Consultant, will look at the exciting challenges ahead for the industry as it covers the changing landscape of the active nutrition market: where are we now and how will the industry look like in 3–5 years? Will it be more consolidated; will the market shift to mainstream customers and how do we ensure we are well positioned for future growth?

Category Shift Amid Changing Landscape Dr Adrian Hodgson, shares his insight: “The sport nutrition cate-

gory is undergoing a shift; influenced by the changing landscape of sport, greater complexity in consumers’ diets and a diversity of products on the market from adjacent categories. We are seeing the collision of multiple trends from these adjacent categories such as: organic, natural, free from, and diverse flavours influence the products consumers expect in a sporting context. The types of exercise and the demands on the body have also changed, meaning that the needs of consumers are not just limited to traditional needs such as performance and muscle.”

Mind & Body Goals Dr Adrian Hodgson elaborates: “Instead consumers have both mind and body needs and goals. The sport nutrition products of today must fit these evolving needs. The challenge is to understand consumers’ lifestyles, exercise and food behaviours to innovate fit for purpose products that are based on solid scientific evidence. Exploring new themes, trends and science enables new perspectives to challenge the current norm for the future of the sports nutrition category.”

Europe’s largest sport and active nutrition networking Summit, this is a proven platform that brings together 200+ experts in sports, weight management, health, food, beverage and bars industry to discuss innovations in ingredients, products, business and markets. It will also feature entrepreneurs sharing their stories and insights into this changing category.

For more information on the 7th Sports & Active Summit, visit www.bridge2food.com or contact info@bridge2food.com. J

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I FROZEN FOOD

McCain Foods to Invest Over £100 Million to Renew UK Production Facility Canada-based McCain Foods, the world’s largest manufacturer of frozen potato products, plans to invest over £100 million in its UK operation at Scarborough in Yorkshire. he production facility at Eastfield has been one of McCain Foods’ most successful sites. The investment is intended to secure the continued success of the group’s Scarborough operations over the coming decades.

T

Dirk Van de Put, president and chief executive of McCain Foods.

Established in 1957 at Florenceville in Canada, McCain Foods is credited with creating the first ever frozen chip and has since developed into one of the world’s largest frozen food companies. Still familyowned, the group now operates 51 production facilities across six continents, employs over 20,000 people worldwide and generates annual sales of C$8.5 billion.

McCain Foods has been operating in the UK market since 1965, initially through exports before building its first production facility at Scarborough in 1968. Britain was the group’s first major overseas market and this was used as a foundation for further expansion into continental Europe throughout the 1970s and 1980s.

McCain Foods GB is the leader in the UK retail and food service sectors in frozen potato products such as French fries, potato

specialties, and appetisers. Indeed, McCain is the best selling frozen potato brand in the UK. Investment at Scarborough In addition to equipment upgrades, the £100 million investment programme at Scarborough includes state-of-the-art odour reduction technology, as well as extensive landscaping around the perimeter of the factory. The company will also be implementing renewable technology to further reduce its environmental impact.

This is a significant investment for McCain Foods, designed to allow it to meet the ongoing increased demand for its products, address long-term capacity and capability opportunities and deliver the latest technology and broader environmental benefits. McCain Foods is the area’s largest private employer and works in partnership with over 200 suppliers, potato growers and community organisations in the region.

UK Business McCain Foods GB operates four factories

McCain Foods is credited with creating the first ever frozen chip.

McCain Foods is the world’s largest manufacturer of frozen potato products.

across the UK, including its head quarters in Scarborough. The company also owns a seed potato business based at Montrose in Scotland. To ensure the best quality and taste of its finished products, McCain Foods GB uses 12 different varieties from over 50 specialist seed growers in the North and East of Scotland.

McCain Foods GB is the UK’s largest purchaser of British potatoes, buying approximately 15% of the annual potato crop. The company has established close links with over 300 potato growers across the UK, so that it can exert control over its field to fork supply chain to ensure optimum quality.

McCain Foods GB generated pre-tax profits of £63.8 million for the year ended June 30th 2016 – up from £58.3 million in the previous year - on turnover up £12 million to £452.3 million.

European Expansion McCain Foods GB is part of the Canadian parent group’s extensive operations in Europe. McCain Foods recently expanded its presence in Europe and broadened its product portfolio by purchasing a majority stake in Van Geloven, a Netherlands-based

FOOD & DRINK BUSINESS EUROPE, MAY/JUNE 2017

27

frozen food company, from McCain Spicy Peri-Peri private equity group TowerFries and McCain SteakBrook Capital Partners, house Ridge Cut Fries. which remains a shareholder.

Another new addition to The acquisition, for an the McCain Foods product undisclosed sum, is in line portfolio is frozen mashed with McCain Foods’ ambipotato, which can be heattion of creating a leading ed up in the microwave in frozen snacks company in three minutes.

Europe.

Based at Tilburg and genExpansion in North erating annual sales of about America Eur200 million, Van GelTo meet rising demand for oven supplies a full range of its products, McCain frozen convenience snacks Foods is expanding proand foods across a diverse duction capacity for frozen family of brands, including French fries in North the iconic Mora brand – the America. The global frozen most popular snacks brand in foods group is investing the Benelux known as ‘the more than $200 million to snack inventors’ - the arti- Continuous innovation allows McCain Foods to deliver both variety and quality to consumers extend its state-of-the-art sanal ragout brand ‘the via its retail and food service customers. production facility at Bourgondier’, satay specialist Burley, Idaho in the US, Hebro, food service specialty brands Ad van Van Geloven has also acquired Dutch where it has been doing business for 20 Geloven, van Lieshout & Welten as well as company Swinkels Snackery & Bakery. years. private label contracts with major retail and Swinkels is a leading manufacturer of deepThe investment follows previous expanfood service customers. fried cheese snacks and puff-pastry prod- sion announcements for McCain Foods’ Since becoming majority owned by ucts. specialty potato capacity in Plover, McCain Foods, Van Geloven has made two Wisconsin in the US and most recently its acquisitions to further enhance its product Development Strategy $65 million investment in its facility in portfolio. It has purchased a number of McCain Foods’ strategy in Europe is to Florenceville in Canada. J brands and plants from snacks producer stimulate growth through innovation, qualRoyaan. This includes brands, Van ity and service, and by taking advantage of Dobben and Kwekkeboom croquettes, as its position as market leader to retain its well as the food service-focused brands competitive edge. McCain Foods seeks to Laan, Willie Dokter and KB. Van Geloven consolidate its leadership positions within a has also taken on three factories - one pro- challenging frozen potato products marketducing lines including croquettes, one place through continual investment in manufacturing cheese-based products, and product innovation and maintaining an a third making meatballs. efficient and sustainable field to fork supply chain.

Continuous innovation allows McCain Foods to deliver both variety and quality to consumers via its retail and food service customers. The company invests constantly in new technology in order to meet customer demand for more varied products while minimising manufacturing costs.

For example, in the UK, McCain Foods recently launched a new range of fries Jean Bernou, chief executive of McCain Foods designed to appeal specifically to adults Continental Europe.

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FOOD & DRINK BUSINESS EUROPE, MAY/JUNE 2017

I NUTRITION

Creating New Protein Strategies: – Bridge2Food 10th Protein Summit 2017 Protein is in the global spotlight as we strive to meet the nutritional needs of a population set to hit 9 billion by 2040 and European food and protein markets will evolve considerably in the coming years. protein is still hot in Europe and 'ofHigh' Western worlds and consumer awareness the benefits of plant-based foods is growing. Debates on availability of proteins and impact on food security, economy and geopolitics, as well as the impact of protein production on the climate will intensify.

Global transition is imminent in the food, pet food and feed industries.

All this and more will be discussed at Bridge2Food’s 10th Protein Summit 2017, 26-28 September 2017 (Reims, France).

Europe’s largest annual protein industry networking platform will bring together Industry and Public Policy Leaders to discuss, co-operate, build and shape future strategies. 400+ experts from Food, Feed and Pet food; Protein ingredients, Technology & Research industries will join a 5-in1 Summit covering the whole Protein value chain: ** New for 2017** - Protein 2030 Summit on the Future Protein Agenda in Europe and globally to get a better understanding on the various protein initiatives in Europe and around the world.

Growing more plant protein in Europe is important from a sustainability, climate

and self-sufficiency point of view. Demand for plant protein ingredients is increasing and there are many economic opportunities. Consumers are seeking more healthy and sustainable diets and increasing their plant-based foods intake. Governments and industry are working together to increase the shift from animal-based to plant-protein diets.

Some key themes will be: Consumer Global Supply & Demand of Proteins & Protein Foods; French Protein Ingredient Strategy; Plant-Protein Growing & Greening Strategy in Germany; Protein Challenge 2040 and Food 2030 & Protein 2030? From the European Commission.

II) Plant-Based Foods Summit targeting plant-based foods brands and value chain.

Share views, ideas and opinions on the growth and the challenges to accelerate further growth of consumer and market demand in the retail, food service and other channels.

III)- High Protein Foods Summit - New opportunities for growth of high proteins foods targeting the dairy, bars, meat, bakery, snacks, confectionery, sports, health foods brands and value chain. A mix of pre-

sentations and interactive panel discussions with provocative ideas and lots of new consumer insights from various parts of the world, including contributions of CEO’s of the leading brands and market insight companies.

IV)- Protein Ingredients Summit on New ingredients, raw materials and combinations for Innovation, Development, Research, Sustainability Leaders, targeting the food and pet food industry, as well as the ingredient and processing industries.

V)- Protein Processing Summit on New technologies and processing methods for Innovation, Development, Research, Sustainability Leaders, targeting the food as well as the ingredient and processing industries.

Presentations and interactive panel discussions with key thought leaders including Quorn Foods, Tivall, Nestle and Amidori will cover all parts of the value chain: Consumers, Retailing, Food Manufacturing, Protein Ingredient production, Agriculture, Policy Making and Cross Value Chain Co-operation.

For more information, visit www. bridge2food.com. J

FOOD & DRINK BUSINESS EUROPE, MAY/JUNE 2017

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Passion For Brewing village in Southern Belgium Iandnrightahissmall in the heart of the Ardennes, a father two sons are keeping up the local beer-brewing tradition. Admittedly, the Brasserie Lupulus is not Pierre Gobron’s first brewery, but most definitely his bestequipped one. This is because for his investment he decided to place the order with Krones as the turnkey contractor supplying the brewhouse and the bottling kit.

He had Krones dimension the equipment’s capacities so generously that they will guarantee the brewery sufficient “breathing space” for further growth in the future, when it will be managed by his two sons Julien and Tim.

mash stirrers”). Meanwhile, though, they are selling their upmarket beers under the name of “Lupulus”.

Today, the beer is available in five variants, and the Brasserie Lupulus also launches specialty beers as a limited edition twice or three times a year.

Second Fermentation in the Bottle

All beers undergo a second fermentation in the bottle. “This exerts a positive effect on the yeast aroma, and the products’ taste and quality,” is Julien Gobron’s firm conviction. “It also makes for better protection against oxidation, which keeps our beers microbiologically stable for up to three years.” All beers are fermented with top-fermenting yeasts, all of them are neither filtered nor pasteurised.

Time to Take a Decision

Pierre Gobron, is no stranger in his chosen sector: back in 1982, he had set up the small Brasserie Achouffe in the village and then operated it himself for more than 20 years. When it reached an output of 22,000 hectolitres, a volume too big for him to handle on his own, Pierre Gobron sold it to the Belgian Brasserie Duvel in 2004, which proceeded to subsequently turn it into a beer brand known far beyond the country’s borders. During the first three years following the sale, Pierre and his eldest son Julien still kept on working in the brewery. In parallel, he also operated a restaurant featuring a microbrewery in Bovigny, 15 kilometres away, and used this as the nucleus for a fresh start as an independent brewer in 2007, this time together with his sons Julien and Tim. At first, they called their own little brewery “Les 3 Fourquets” (which translates roughly as “the three 30

It seems as if it’s downright impossible for Pierre Gobron to keep his brewing volumes small, something due not least to his beers’ superlative quality. Because by 2014 the Lupulus beer family had already topped an annual output of 10,000 hectolitres.

Exports, especially to Italy, were flourishing. However, the brewery’s premises were bursting at the seams, and the kit installed required a large amount of manual labour.

So the time had come to take a decision for the future.

This was made jointly by the father-andtwo-sons threesome. They opted for a new building directly adjacent to the restaurant and the existing microbrewery, which had been erected by mid-2016 with a footprint of 1,200 square metres. The identically

sized cellar serves the brewery as a store for raw and processing materials, and also as a maturation chamber where the filled beers undergo a second fermentation process at 20 degrees Celsius.

The three Gobrons work as a team, that’s true, but each of them has his own particular remit. Tim looks after logistics and sales, Julien handles marketing and production, and father Pierre mainly takes care of production. The family is supported by a young 15-strong workforce.

Turnkey Solution

Lupulus placed an order with Krones for supplying a turnkey solution – except the fermentation and storage cellar, because the brewery already had these tanks. In June 2016, the Gobron family was able to prepare the first brew in their new Steinecker brewhouse. They anticipate an output of 16,000 hectolitres for 2016, with the new brewery dimensioned for an annual capacity of 80,000 hectolitres. “Mind you, we don’t want to grow too fast, we’re rather aiming to create quality and progress our development step by step,” emphasises Julien Gobron. J

“The filler meets our needs to optimum effect” The bottling kit has been supplied by Kosme in its entirety. It is used to fill: – mainly 0.75-litre Champagne bottles with natural corks at a speed of 3,000 bottles an hour, – plus 0.33-litre and 0.375-litre bottles with crowns at an hourly output of 6,000 bottles.

The line has furthermore been designed to handle 1.5-litre Magnum bottles with natural corks.

It consists of: – Bulk-glass sweep-off depalletiser – Crate washer – Kosme Barifill R-VC filler with rinser and crowner – Closer for Champagne corks – Krones Checkmat machine for inspecting the bottles for correct fill level and the presence of a closure – Drier – Kosme Flexa Combicol labeller with two stations each for pressure-sensitive and cold-glue labels – Kosme carton erector – Kosme packer for cartons and crates – Kosme carton closer – Palletiser.

FOOD & DRINK BUSINESS EUROPE, MAY/JUNE 2017

New Beer Membrane Filtration Solution Meets Requirements of Craft and Small Breweries ith the development of the BMF +Flux Compact S4, Pentair W is making the benefits of diatomaceous earth (DE)-free beer membrane filtration accessible to craft and small breweries. The first BMF +Flux Compact S4 systems are already operating successfully at the Princen Brewery in the Netherlands, and two other breweries in Europe.

The BMF +Flux Compact S4 is equipped with four type R-30 membrane modules. Its filtration performance of 30 to 60 hl/h makes it ideally suited for breweries with an annual output between 10,000 hl and 100,000 hl.

Compared to DE filtration, membrane filtration provides major performance benefits. Complex DE handling and disposal is eliminated. In addition, Pentair’s Beer Membrane Filtration gives brewers a fully automated process that can be interrupted at any time.

This true start/stop filtration is especially beneficial to craft brewers who produce a wide variety of beers. Small batches of beer can be run with constantly excellent beer quality and very low beer loss.

This provides considerably more turnover for craft beers, which are often exclusive runs.

Fast Installation, Easy Integration

Pentair’s Beer Membrane Filtration technology provides flexible installation and integration. The preassembled BMF +Flux Compact S4 filter unit is a stand-alone solution on a stainless steel frame. To install the BMF in an existing brewery all that is needed are incoming and outgoing beer connections, water, power, compressed air, and carbon dioxide. The compact structure of the BMF

The BMF +Flux Compact S4 has been in use at the Princen Brewery in the Netherlands since the beginning of 2017.

+Flux Compact S4 unit that measures 3.5 to 1.5 meters is a major advantage for easy integration.

In 2002, Pentair introduced the world's first commercial largescale BMF system for DE-free beer membrane filtration. Since then, more than 100 BMF systems have been commissioned, currently filtering more than 100 million hl of beer annually.

For an overview on Pentair’s complete range of BMF solutions, visit www.foodandbeverage.pentair.com. J

Microsoft Dynamics NAV & SI Foodware – One Integrated Standard Solution he food and beverage sector is dealing T with constantly changing requirements imposed by clients and suppliers such as

SI Foodware

exchanging messages via EDI or tighter margins due to price changes. Enterprise Resource Planning (ERP) software is essential for companies operating in the food and beverage industry.

Microsoft Dynamics

ProStrategy provide companywide ERP solutions based on Microsoft Dynamics NAV. This solution includes general functionality such as Financial Management,

Procurement, Sales and Warehouse Management. To serve the special needs of the food industry, this package is extended

by SI Foodware. This combination addresses almost every business process in the food industry and is available for both trading and production companies alike.

In combination with Dynamics NAV, SI Foodware is a complete solution. Besides the standard ERP functionality, SI Foodware provides sector specific functionality for distribution and production companies. Examples of functionality include lot administration, product date management and trading bonuses.

Production functionality includes product specifications, SSCC labels and traceability.

The solution works with EDI, Radio Frequency, Bonded Warehousing and Business Intelligence. J

FOOD & DRINK BUSINESS EUROPE, MAY/JUNE 2017

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I BOTTLED WATER

Nestlé Waters Adopting a ‘Smart Factory’ Approach To optimise its environmental performance, Nestlé Waters, the leader in the global bottled water market, has been adopting a ‘smart factory’ approach, harnessing renewable energy sources and innovative technologies to reduce water and energy consumption, minimise CO2 emissions, and eliminate waste. n 2016 Nestlé Waters opened or renovated six such facilities around the world as flagship pilots, three of which were in Europe. Nestlé Waters’ Buxton bottling plant in the UK now generates 100% of its electricity by using clean, renewable local energy sources such as solar, wind and hydroelectric. Appropriately 30% of the plant’s power is generated by local water, channeled from the region’s abundant waterfalls by a nearby hydroelectricity facility.

In Switzerland, the Henniez bottled water plant uses a less orthodox local energy source - it has replaced traditional fossil fuels with manure from local cows. By burning the manure, along with used Nescafé and Nespresso coffee grounds, the Valbroye agricultural biogas production facility generates enough energy both to heat the neighboring Henniez plant and to provide electricity for over 1,000 local households. The use of biogas means that 1,750 fewer tons of CO2 will be released into the atmosphere each year,

I

Marco Settembri, chief executive of Nestlé Waters.

and after processing, the manure is returned to the farmers who use it as a natural fertilizer.

New €16 Million Plant in Italy Sanpellegrino Group, the Italian division of Nestlé Waters, recently inaugurated its new mineral water bottling plant for Nestlé Vera Naturea at Castrocielo in central Italy. The €16 million project, which has the potential to produce 220 million litres of water during its first year, stands out for its extremely

Nestlé Waters’ Buxton bottling plant in the UK now generates 100% of its electricity by using clean, renewable local energy sources.

innovative approach and provides a new model for future development within the entire mineral water industry, according to Nestlé Waters.

The ‘smart factory’ is specifically designed to be perfectly integrated into the local environment. It offers ‘best in class’ performances, especially in energy savings. Thanks to the use of energy derived exclusively from renewable sources, the level of CO2 emissions is equal to zero - a result obtained through the use of photovoltaic systems, LED lights, heat recovery and retention systems.

With its ultra-modern PET line, the factory is the leading site, among Nestlé Waters’ plants, in the optimization of water consumption. Any waste materials are separately collected and subsequently recycled and all packaging used is 100% recyclable.

Moreover, 95% of Nestlé Vera Naturae distribution happens with fully loaded trucks and direct deliveries, while indirect deliveries only occur within 200 km.

“Thanks to its innovative technologies, this new plant represents a proof of excellence at an international level. It provides further proof of Nestlé Waters’ desire to invest in innovation and sustainability, while continuing to promote local water resources,” says Marco Settembri, chief executive of Nestlé Waters.

By creating new smart factories, and renovating existing facilities to make them smarter and greener, Nestlé Waters is confirming its intention to meet a whole range of

environmental commitments by 2020 or earlier, in support of its long-term goal of ‘Creating Shared Value’ in all the territories where it operates.

Performance Founded in 1992, Nestlé Waters operates over 93 production facilities situated in 33 countries around the world and employs more than 31,000 people. Nestlé’s water business has a portfolio of more than 50 brands including Nestlé Pure Life, Perrier, S. Pellegrino, Poland Spring, Vittel, Buxton and Erikli.

Nestlé Waters generated sales of SFr7.9 billion (Eur7.2 billion) in 2016, achieving organic growth of 4.5%. Trading operating profit margin improved by 110 basis points during the year while marketing investment also increased. This was possible due to a combination of volume growth, positive product mix through premiumisation, operational cost efficiencies and favourable input costs. J

FOOD & DRINK BUSINESS EUROPE, MAY/JUNE 2017

A bottling line at the Henniez plant in Switzerland.

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I BOTTLED WATER

Ferrarelle SpA – A ‘Single Format’ Line of 40,000 bph errarelle SpA, one of the most important Italian mineral water bottlers, conF firmed its trust in Parma-based ACMI for

tional coupons and with the automatic film changeover device. The two reels with the shrink wrap film are housed the construction of an innovative PET line in a functional and ergonomic external of 40,000 bottles per hour. The line was box. The machine, which reaches a installed in the Riardo plant, in the maximum speed of 150 packs per province of Caserta (Italy), and is dedicat- minute, is able to switch from the fined to the production of the famous 1.5 ished reel to the new one in a time of litre bottle of naturally sparkling water. about 10 seconds, thus guaranteeing a very high level of efficiency.

Another important aspect, Twisterbox layer formation system. before moving to the next machine, is represented by the shrink wrapper infeed system. This has wrapper, which mounts a 1,000 mm reel, been achieved with an inclination of can be inserted into any bottling line thanks 30 degrees and with an automatic to its versatility and reduced dimensions. excess bottle recirculation system. This One of the most interesting aspects of this implies a fluidity of movement that stretch wrapper is probably the electronic contributes to minimizing, if not elim- pre-stretching system designed by ACMI. inating, any downtime.

Thanks to this system, it is possible to preThe handle applicator installed at stretch the film to a maximum tolerable Ferrarelle is a two lane Viper model value of the film itself of over 400%.

The famous Italian ‘green’ bottles. with an electromechanical spacing sysIt is also possible to fully customise the tem which does not use spacing wrapping cycle so as to obtain the best The first aspect that immediately catches screws. This has a number of advantages wrapping possible in any condition and your eye when visiting the line is the including a reduction of the occupied with any product. The Rocket stretch wrapabsence of the labeller that has been incor- space, the elimination of rubbing on the per installed at Ferrarelle reaches a maxiporated into the blowing-filling block, the packs and the high speed in the format mum speed of 130 pallets per hour and it is only item not supplied by ACMI. Thanks changeover that is considerably simplified. equipped with a top cover dispenser to to this choice, the line is extremely clean At the handle applicator outfeed the allow better insulation of the product. and compact. A double accumulating table packs are conveyed to a higher level thanks Finally, it must be emphasised that this separates the filling block from the so- to a two lane spiral elevator. At this point new single format line was installed next to called ‘dry’ part of the line. of the line you find the palletisation system a previous ACMI supply of a multiformat consisting of the Twisterbox and the ‘compact’ line with a production of 40,000 Fenix 275 Shrink Wrapper Faster. b/h. Thanks to the careful study of the layFollowing this, the bottles reach the Fenix out along with the design of the ACMI 275 model two lane shrink wrapper The Twisterbox machines, many of the components of the equipped with the feeder of the promo- The Twisterbox, the most famous layer for- two lines can be managed, if necessary, even mation system, has been equipped by a single operator. J at the Ferrarelle plant with 3 gripping modules to reach a high level of speed. Once the layer has been formed, it is transferred to the Faster platform, a palletiser with ‘high level’ product loading able to reach very high accuracy even with unstable and delicate packs.

The complete pallet thus reaches the Rocket model rotating pallet stretch wrapper. This stretch wrapper is very innovative and comprisFenix shrink wrapper with automatic reel Rocket pallet stretch wrapper with electronic es the SCARA type robotic technolchangeover. prestretching system. ogy. This high performance stretch 34

FOOD & DRINK BUSINESS EUROPE, MAY/JUNE 2017

Bakkavor Relaunches Tesco Indian Ready Meals in Perforated Snap Packs From Faerch Plast akkavor Meals Sutton Bridge has B recently relaunched its Tesco’s Indian Kitchen Meal for One range in perforated two-compartment trays from sole supplier, Faerch Plast, a leading manufacturer of high performance plastic packaging for the European food industry. The change of packaging format allows the microwaveable main meal and pilau rice accompaniment to be heated separately for optimum quality and taste.

Bakkavor is a leading international provider of fresh prepared foods, employing over 18,000 people globally and producing over 5,000 products in 18 different categories. In the UK, the company is the number one producer by value in 12 of the 16 categories of chilled food it supplies to the retail grocery market.

Bakkavor Meals Sutton Bridge worked closely with Faerch Plast to develop a black CPET two-compartment tray for Tesco’s Indian Kitchen Meal for One range with an easy-snap process, made possible by the integral waved perforation within the pack design, to ensure a consistent and clean snap.

Nikitta Halifax, Senior Process Technologist at Bakkavor Meals Sutton Bridge, comments: “Until recently, we used a standard compartmented CPET tray from Faerch Plast for the Tesco Indian Meal for One range. As part of our focus on continuous improvement, we asked Faerch Plast to develop a perforated two-compartment tray that could be easily snapped apart, allowing the consumer to microwave the main dish and rice separately resulting in better product quality.”

Nikitta Halifax adds: “Faerch Plast’s proven technical expertise and unrivalled range of plastic packaging solutions were

invaluable for this project. After several samples and trials, they designed a robust pack that was easy for the consumer to snap yet remained intact during transit and throughout our highly automated production process, including de-nesting, filling, sealing and sleeving functions.”

There are seven meals within the range: chicken tikka, chicken jalfrezi, chicken korma, lamb rogan josh, prawn tikka masala, butter chicken and chicken vindaloo. All are accompanied by pilau rice.

Faerch Plast is also supplying a new four-compartment CPET tray to Bakkavor Meals Sutton Bridge for another range of Tesco Indian ready meals comprising a main dish, pilau rice, Bombay potato and onion bhaji.

Faerch Plast’s wide range of CPET trays offer dual-ovenability and a wide temperature tolerance from –40 C to +220 C, for freezer-to-oven or microwave convenience. CPET eliminates negative effects on food flavour and aroma, giving consumers well-protected, more versatile and better tasting meals. For further information visit www.faerchplast.com. J

Measom Freer Still Going Strong 80 Years On! hen Gordon & Eve Freer started a business selling buttons in W 1937, little did they know that 80 years later their thriving business would still be going from strength to strength. Now in its

you would like a chat, call +44 (0)116 2881588 and speak to one of their friendly sales team. J

third generation Measom Freer & Co Ltd still have the same ethos of good customer care at their core, allowing them to build up their reputation as a manufacturer of quality plastic bottles, caps, containers and fasteners.

They continue to adapt to ever challenging business conditions, adding to their extensive catalogue of stock products available for next day delivery. Their continual investment in the latest technology and premises has allowed them to move with the times, always maintaining the attention to detail that customers expect. They can offer bespoke designed products tailor made to customers' own requirements using their in-house CAD CAM 3D design & advanced CNC tool-making facilities with a printing service also available for their bottles and packaging products.

To see how Measom Freer can help you and to buy online please visit www.measomfreer.co.uk or Email sales@measomfreer.co.uk. If FOOD & DRINK BUSINESS EUROPE, MAY/JUNE 2017

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ENERGY

ENVIRONMENT

I ENERGY MANAGEMENT

Food for Thought – Reducing Power Bills Through Self-Generation or any factory the electrical power bill can be a significant cost. Within the food and drink industry efforts to optimise F power consumption such as power factor correction, efficient electrical motors, LED lighting, have generally been made. The Energy Savings Opportunity Scheme (ESOS) assessment will have highlighted these which can reduce overall consumption by a small amount, but the main power requirement remains.

As highlighted within April’s issue of Food and Drink Business Europe, entitled ‘Food for Thought – Demand Side Generation’, explored the electricity cost rises over the next 5 years and provided a support solution to mitigate these cost rising through the application of demand side generation. The below table demonstrates the expected significant increases in the unit price of electricity to industrial user which will immediately outweigh any ESOS efficiency cost savings.

In the increasing uncertainty of the current economic climate a 20% increase in power cost from 2016 levels in 2020 is very unwelcome news. If a site paid 9p/kWh average in 2016, it is likely to be 11p/kWh in 2020.

Self-generation has now become a realistic and cost effective solution to reduce your overall power bill, and more importantly, protect it from the impending cost rises. New gas fuelled generation has a high electrical conversion efficiency with low maintenance requirements. A typical fuel and maintenance operating cost would be around 6-7p/kWh. Hence with rising power costs the potential annual bill savings could be in the range of 20% or even as much as 40% less than imported grid power going forward.

If a site had a 1000kWe average electrical import it would use approximately 730000kWh a month, totalling £65,000 in energy costs per month. If a generator was installed, which supplied 80% of the sites electrical load, it could conceivably save £200,000 on a 2017 annual power bill. This would increase to £250,000 in 2018 and £300,000 in 2019 as power bills increase.

With a 1000kWe average electrical import, a site is likely to have a significant variation over the day and week. A typical profile over a month could look like; see graph ‘Example variation of power usage for a factory during a month’.

Often the highest electrical imports are during the day when

the highest import costs are in place. In this situation, it is potentially advantageous to size a larger generating unit, in this case a 1200kWe unit than the sites 1000kWe electrical import average, in order to maximise the peak operation times.

Of course the generator has to be purchased and installed, and this will be a cost which companies may not wish to spend.

Lease purchasing of equipment over 5 or 7 years is straightforward and with low current interest rates it is not an expensive proposition, which means that savings can be shown immediately. On-site generating equipment does have Capital Cost implications and ongoing maintenance liabilities, however, such costs can be offset against the savings mentioned above. If, however, your business has a freeze or restriction on capital spend, lease purchase can be an alternative option, financed through the savings generated over the next 2-4 years, depending on the size of the installation.

Further additional savings can be made (the icing on the cake!) if you can utilise the heat in combined heat and power (CHP) application. This can be high grade heat or low grade depending on your process or need. Even if the heat required is small, it can be used for space heating for the office or factory.

The heat can also be used for supplying cooling and chilling through what’s known as tri-generation. On sites where CHP would be a good application but there is no mains gas supply, alternative fuels such as Liquefied Natural Gas (LNG) are now potentially economic and should be considered.

Edina is a leading supplier, installer and maintenance provider for CHP, gas and diesel power generation solutions, and can deliver a support solution to reduce your energy costs through on-site power generation.

With over 300MWe installed across the UK, Ireland and Australia, Edina continues to work with the food processing industry, supporting clients to reduce their energy costs, reduce carbon emissions and deliver improved business competitiveness.

If you would like to discuss the benefits and feasibility of demand side generation within your business, please contact me at ian-farr@edina.eu or visit www.edina.eu. J

FOOD & DRINK BUSINESS EUROPE, MAY/JUNE 2017

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ENERGY

ENVIRONMENT

I GREEN FACTORY

Dawn Meats Cross Hands Achieves ISO 50001 Energy Certification awn Meats, which has operations in seven locations around D Ireland, and many more across the UK and Europe, has achieved ISO 50001 certification for its development and implementation of an efficient energy use policy in accordance with the highest international standards at its retail packing plant, Dawn Cross Hands in South Wales.

The International Organization for Standardization (ISO) provides world-class specifications for products, services and systems, to ensure quality, safety and efficiency, from technology, to food safety, to agriculture and healthcare. ISO 50001 is one of their most sought after standards. Dawn Cross Hands had previously been certified to the ISO 14001 Standard.

Dawn Cross Hands is a large energy user with an annual bill of close to £1 million and refrigeration makes up a significant percentage of the total energy used at the site. With the development, implementation and integration of an energy management system aimed specifically at refrigeration consumption, the site has reduced its refrigeration consumption by 6% delivering significant financial returns, and resulting in its ISO 50001 certification.

Ken Hallahan, UK Operations Director at Dawn Meats, comments: “ISO certification is recognized and respected by farmer suppliers, retailer and food service customers, and the general public as it provides reassurance and certainty that an organisation is operating to an international standard. Dawn Meats views effective energy management as an essential strategic requirement

of the business, so it is fitting that Dawn Cross Hands has achieved this certification.”

Michael Brophy of Certification Europe says: “Dawn Meats deserve to be congratulated for what they have achieved. Not only have they pushed the boundaries in energy management, they have put themselves amongst a very select group of organisations worldwide that have achieved the Energy Management standard (ISO 50001). Being certified makes it clear that the organisation is committed to improving the operational and environmental efficiency of its Utilities and Energy.”

The achievements in refrigeration energy consumption will now be replicated on other significant energy users at Dawn Cross Hands, and upon review of the benefits, the wider Dawn Group plans to roll out the standard elsewhere in its network of plants. J

Coca-Cola Now Being Made by Solar Energy in Wakefield oca-Cola European Partners (CCEP) has launched a major C renewable project, with all electricity generated by a brand new solar farm being used to support production of its famous brands at Europe’s largest soft drinks factory, at Wakefield in England. The solar farm covers eight hectares, the size of twelve football pitches, and will produce up to five Mega Watts of energy. Located 1.5 miles from CCEP’s Wakefield site, it is directly connected to the factory via a series of underground cables, delivering 15%* of the site’s total electricity use as part of a long-term Power Purchase Agreement (PPA).

The project will help to reduce the site’s operational carbon footprint by 8.6%, with approximately 900 cans and 330 PET bottles produced using renewable electricity every minute.

The solar panels have been installed by solar PV specialists, Athos Solar and the farm has been developed in collaboration with local landowner and businessman, Stephen 38

Butterfield who owns the fields. The site will also maintain dual-use as grazing land for the sheep that live on the fields, demonstrating CCEP’s commitment to preserving the natural habitat.

The solar farm is the latest step in the Wakefield factory’s carbon savings. In 2014, a £1 million combined heat and power (CHP) system was also launched at the site, saving some 1,500 tons of CO2 a year across the factory’s operations, a 5.6% reduction for the site. Together with the renewable electricity sourced from solar, 3,800 tonnes of CO 2 will be saved at the Wakefield site per year – equal to taking more than 1,700 cars off the road.

The launch coincides with the news that the business has begun sourcing 100% of its electricity from renewable sources, as part of a collaboration with EDF Energy, furthering its commitment to sustainable manufacturing in Great Britain. J

FOOD & DRINK BUSINESS EUROPE, MAY/JUNE 2017

ENERGY

ENVIRONMENT

I GREEN FACTORY

Does Your Steam Pass the Taste Test?

By Francisco Pedrosa, National Clean Steam Specialist at Spirax Sarco hile quality and purity of steam used W in the pharmaceutical and healthcare industries has been an important consideration for years, the food and beverage sector has been slower to analyse the type of steam it uses.

There is a misplaced assumption amongst many food manufacturers that steam is entirely clean but the reality is there are four different grades of steam, for example filtered (or culinary) steam. This is plant steam passed through a fine, stainless steel filter – removing 95% of all particles larger

than 2 microns. While filtered steam is generally regarded as the minimum grade for food and beverage processing, filtration only eliminates rust, pipe scale, and other corrosion-based particulates.

Manufacturers injecting filtered steam into their product therefore remain susceptible to contamination from treatment chemicals or cross contamination. This can affect the taste of the product, impacting quality control and downstream supply chain activity.

Keeping It Clean The key to eliminating contamination risks is clean steam which utilises a secondary steam generator to control feedwater quality, and stainless steel pipework and components to eliminate potential corrosion.

Setting the Standard Since steam quality checks are often not put in place, the chemicals and their con-

centration levels within steam often remain unknown.

The US Food and Drug Administration (FDA) offers Francisco Pedrosa, some guidance on National Clean the chemicals which Steam Specialist at can be used in food Spirax Sarco. production and whilst these regulations aren’t mandatory in Europe, chemicals approved to FDA standard are widely used in the food and beverage industry throughout Europe.

Food and beverage manufacturers can take a discretionary approach to steam but using clean steam can aid compliance with stringent food safety standards and enhance process productivity. Best of all, clean steam can impact on what matters most to the consumer – the product’s taste.

For more information visit sxscom.uk/Clean_Steam. J

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ENERGY

ENVIRONMENT

I GREEN FACTORY

Separating Products From Packaging For Disposal or Recycling he Atritor Turbo Separator de-packagT ing system is designed to separate packaging from its contents, increasing product recovery and cutting back on waste.

Coventry-based Atritor has supplied over 180 systems worldwide, for a range of packaged waste recovery applications. The smallest of the range, the TS1260 was developed with the requirements of food production in mind.

oped a tea recovery method using the TS1260 which is now installed at sites throughout the world. In 2015, Atritor and a leading UK tea company collaborated to introduce a unique solution to a decades old problem.

Reclaiming the Product The company had always generated a significant quantity of tea bags that, for various reasons, needed to be repacked.

Because their tea bag packing lines were automated this meant that they needed to remove the tea from the tea bags and put it back in again at the start of the process.

The Dilemma Their previous tea bag separator was old, slow, labour intensive and inefficient. It was struggling to keep up with their requirements and was wasting thousands of pounds of yea per year due to failing to extract all the tea from the tea bags.

The Solution After assessing all the options available, their project team approached Atritor, experts in the field of reclaiming product from packaging. To ensure that this new machine delivered the best possible results and was optimised for their processes, the design of the system was a collaboration between both teams of engineers.

Since the introduction of the TS1260 Turbo Separator system, it has been used successfully to recover sugar, salt, tea, coffee (from pods), biscuits in divers applications from recovering tea from tea bags for tea processing companies in the UK to cooking flavour cubes for a major food manufacturer in Nigeria.

The TS1260 is available in carbon or stainless steel and is supplied with its own stand, control panel and infeed conveyor and integrated operational safety system. Other collection and conveyor systems for the recovered material and separated packaging are also available to suit the specific needs of the client.

Here is how Atritor devel-

The Success After commissioning in January 2016, the tea company has reported that the new tea bag separating system is over four times

faster, far less labour intensive, safer, protects their high-quality teas and overall is far more efficient. The new machine is forecast to save the business a substantial amount of money by reclaiming the tea whilst also enabling associated processes to speed up, saving further time and money. It is anticipated that the whole system will pay for itself within 18 months.

In addition to the compact TS1260, there are a range of Turbo Separators available with throughputs from 1000 kgs per hour to 25 tonnes per hour. It is ideal for separating out of specification, out of date and mislabelled products from a variety of packaging including: metal cans, Tetra paks, plastic packaging, sort packaging, sachets, pouches, blister packs, cartons, trays, boxed products and more. Products include ready meals, pharmaceuticals, yoghurt, bottled water, soap power, bread, confectionery, cakes, juices, ice cream, baby foods, vegetables, processed meats, soups, pet foods, toothpaste, deodorants and more.

As well as uses for de-pack to re-pack, waste products can also be recovered for waste-toenergy production, animal feed or fertilizer. J

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ENERGY

ENVIRONMENT

I WATER & WASTEWATER TREATMENT

NVP Energy Leading the Way in Sustainable Food and Drink Industry Wastewater Treatment s wastewater treatment becomes more of a concern, and a cost, A to food & drink producers, NVP Energy provides a unique new treatment method that delivers significant savings through removing 90% chemical oxygen demand (COD), with low OPEX compared to alternative aeration processes, while generating high quality biogas from wastewater streams. The combined savings from trade effluent (Mogden) charges and biogas generation give NVP Energy customers an appealing 2 to 3 year payback period.

Meat Processing One customer benefitting from NVP Energy is ABP Food Group, a leading European meat processor.

Since commissioning the technology at their Lurgan, Northern Ireland site (pictured) in March 2016, treating the full volume of 300m3 per day of meat processing wastewater, NVP Energy has reduced trade effluent charges for NVP Energy module operating the site by over 60% by removing, at ABP Food Group, Lurgan, on average, 90% of COD content.

County Armagh, UK. In addition, the technology provides a source of clean, renewable energy in the form of biogas. Unique to NVP Energy, the biogas produced contains 85% methane, comparable to natural gas - ideal for connecting directly to boilers as a heat source, or to CHP as a source of heat and electricity, in both cases helping to reduce a site’s carbon footprint.

Dairy Processing More recently, NVP Energy commissioned a

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Michael Murray, Managing Director, NVP Energy (left) receiving Shell Springboard Award in 2016.

module at Arrabawn Dairies in Co. Galway, Ireland increasing the capacity of their existing wastewater treatment plant prior to a production increase. NVP Energy treatment ensures wastewater eluted to a local watercourse meets discharge consent limits, with carbon neutral biogas generated in lieu of sludge.

The Future The company has big plans for the future and are currently in the design phase developing a site at a major world-leading brewing brand in the UK with additional sites identified in brewing, malting, distilling, beverage, bottling, dairy & meat processing across UK and Europe. The system is modular and can be configured to treat any volume of wastewater.

With a wide array of awards & accolades collected to date and offices in UK and Ireland, NVP Energy is certainly one to watch. www.nvpenergy.com J

FOOD & DRINK BUSINESS EUROPE, MAY/JUNE 2017

ENERGY

ENVIRONMENT

I WATER & WASTEWATER TREATMENT

Innovative Solutions From HUBER Technology UBER Technology is a leading supplier of stainless steel wastewater treatment equipment. HUBER Technology offers high H quality innovative solutions for all your wastewater requirements for both municipal and industrial markets.

The range of products includes: • Solids and screenings removal, fine screens, coarse screens and micro screens • Washing, conveying and compacting of solids and screenings • Sludge screening, thickening, dewatering and drying • Grit removal and treatment • Tertiary treatment • Anaerobic digestion, pre and post digestion treatment • Industrial waste water treatment including: ¬ Screens for Solids removal, Screenings compaction, Membrane screens ¬ DAF plants ¬ Sludge treatment (screening, thickening, dewatering and drying).

Recently and over the last few years HUBER Technology has helped many food and beverage customers find solutions for their effluent treatment including Premier Foods, Mueller, Dairy Crest, Mars, Diageo, Heineken and Nestle.

For more information on HUBER Technology please visit

www.huber.co.uk or Tel +44 (0)1249 765000. J

4 x HUBER Sludgecleaner STRAINPRESS® Screen Units installed at Guinness in Dublin.

FOOD & DRINK BUSINESS EUROPE, MAY/JUNE 2017

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ENERGY

ENVIRONMENT

I WATER & WASTEWATER TREATMENT

Bespoke Water Recovery Plant Exceeds Water Reduction Targets For Britvic Beckton 3D modelling techniques and Advanced engineering innovation led Britvic to

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significantly reduce wastewater discharge, far exceeding their original targets. This modified system, built around existing technology and fully integrated with their current production line, led to huge additional cost savings.

Bill Denyer of Envirogen says: “An audit had taken place of the wastewater streams at the plant and Britvic were keen to make changes to achieve their ambitious environmental goals, as well as meet their targets to improve efficiencies and drive further cost savings on site. The changes had to happen fast, with no impact on the day to day production output. This is a very successful operation with a high output with very little room for downtime; the factories are working at high capacity. However, it was important, for environmental compliance, that Britvic reduce their wastewater output.”

Detailed 3D Modelling Unlocked Environmental Potential Denyer goes on to say: “The potential for saving and reusing water lay in the four bottle rinsing line as high quality rinse water was being sent straight to drain as wastewater. There was enormous reuse potential, but we needed to ensure that the water quality wasn’t compromised.

Monitoring and further process treatment would be essential to maintain sterility.

“We drew up detailed 3D models for a sterile recapture and storage system so that this water could be fed back through to the rinse lines. The models showed how the new plant would fit with the existing machinery and, laser measuring was used to ensure that the exact proportions of the factory were incorporated into the design software.”

FOOD & DRINK BUSINESS EUROPE, MAY/JUNE 2017

ENERGY

The final solution: • A recapture line and pump system fitted to rinsing lines leading to a single storage tank • Inline instrumentation to monitor the water quality as it is fed through to the tank, controlled with an HMI & PLC • In-tank monitoring equipment with preset quality parameters controlling discharge and refill protocols, if quality standards reduce • Additional UV sterilisation and 10µm and 1µm absolute cartridge filtration system using long life Envirogen brand car-

ENVIRONMENT

tridges.

Operations Development GB & Ireland at Britvic, Calvin Winch, says:

“Envirogen’s expertise and knowledge enabled them to see how modifications to an existing system could bring major benefits. Envirogen project managed the whole process from design and installation to commissioning. Their attention to detail and onsite work is outstanding.”

Key outcomes: • Significant wastewater reduction – exceeding clients targets • Additional huge cost savings • No operation downtime, with plant integrated seamlessly with existing equipment. J

Hanovia is Helping Cott Beverages Keep its Process Water Pure n an increasingly regulated and safety-conIDirective scious market, legislation such as the EU for Bottled Water 98/88/EC (1998) drives the beverage industry to meet ever more stringent standards of quality.

Microbial growth due to contaminated water or ingredients can cause discolouration, off flavours and shortened shelf-life.

The threat of contamination is further increased as manufacturers respond to demands for less chemical additives and preservatives. Effective microbial disinfection of the whole process is therefore essential.

Since 2002, Cott Beverages has been using Hanovia’s PureLine UV disinfection technology to treat process water used in the production process. The company decided to use UV technology to ensure final product security

prior to mixing and bottling.

Since the UV systems were installed the company has been very satisfied with their performance. Chris Prentice from Cott Beverages says: “Hanovia UV systems provide us with absolute insurance before bottling by making sure we are producing and maintaining a high-quality product, which is essential for our brand. The systems are easy to integrate, maintain and operate.”

There are no microorganisms known to be resistant to UV – this includes pathogenic bacteria such as Listeria, Legionella and Cryptosporidium (and its spores, which are resistant to chlorination). Unlike chemical treatment, UV does not introduce toxins or residues into process water and does

not alter the chemical composition, taste, odour or pH of the fluid being disinfected.

UV is used for both primary disinfection or as a back-up for other purification methods such as carbon filtration, reverse osmosis or pasteurisation. As UV has no residual effect, the best position for a treatment system is immediately prior to the point of use. This ensures incoming microbiological contaminants are destroyed and there is a minimal chance of post-treatment contamination.

Hanovia’s UVCare training program supports businesses like Cott Beverage to make sure servicing is carried out by certified engineers. J

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I FROZEN FOOD

Healthy Growth at Ardo Group Having increased sales volume to 780,000 tons and turnover to €868 million in 2016, Ardo Group, the European leader in the production of fresh-frozen vegetables, herbs and fruit, is planning to maintain this growth momentum, which is being driven by rising consumer demand for healthy and convenient products. he family-owned Ardo Group grows, freezes and sells its extensive range of fresh-frozen vegetables, herbs, fruit, potatoes, rice and pasta to the retail, food service and food manufacturing channels in more than 60 markets worldwide. Ardo Group produces both branded and private label products. In line with its objective to preserve the gifts of nature as purely as possible for its customers and consumers, Ardo Group controls the entire production chain, from the selection of seed to packing and distribution.

Ardo Group operates 21 production and packing units across nine countries in Europe. The company’s production, packing and distribution sites are strategically located in Europe’s most fertile crop growing regions. The close proximity of the factories to the crops is one of Ardo Group’s key strengths and ensures that only minutes are lost between harvest and locking in the product’s natural goodness in the company’s freezing units.

T

Ivica Todoric (pictured left), president of Agrokor Group; with Bernard Haspeslagh, chief operations officer of Ardo Group.

Investment So that it can offer an even wider and higher quality product range, Ardo Group has been investing in new technology, launching new production lines at a number of different sites. For example, at Badajoz in Spain, a new grilling line has been added and part of the production area renovated. At Geer in Belgium, a new spinach preparation line has been installed, and at Violaines in France, virtually a whole new factory is being built to deep-fry vegetables. The spinach line at

Koolskamp in Belgium has also been renovated.

Ardo Group is also investing to enhance packaging efficiency. For instance, a new packaging line has been installed for fruit at the Belgian frozen food group’s Ashford site in the UK, while a second industrial packaging line has been added to the Alpiarca site in Portugal. Ardo Group has also commenced work on a new and fully automated distribution centre at Gourin in France.

Pak Choi mix.

Recent new product launches by Ardo Group include sweet potato fries.

Constant Innovation By controlling the production chain, Ardo Group not only ensures the highest quality standards throughout the business but is also well placed to anticipate new trends and consumer needs. Ardo Group continually innovates to help drive market growth. Recent new product launches include sweet potato fries, Pak Choi mix, quinoa vegetable stirfry, smoothie mixes, herbs mix tartare and passion fruit puree.

Sustainability Sustainability is at the heart of Adro Group’s corporate ethos. The company fosters long-term relationships with growers, suppliers and customers, which provide stability for all parties and which are necessary to generate the con?dence for sustainable investments.

“Several years ago we set out on a journey to grow and freeze our products in a sustainable way, with respect for the planet, our employees, our suppliers, our neighbours and our customers. Not content to simply do the right things ourselves, we felt the need to motivate and

guide our upstream partners,” explains Jan Haspeslagh, managing director of Ardo Group. “On our journey we have reached out to our growers and our suppliers of services and goods, and have worked with them to maximise areas of common interest and develop our shared values, where sustainability takes centre stage. Starting with the seed and the soil and finishing with the freezing and packing of our finished goods, sustainability is an integral part of the food that we sell.”

Expansion in Central and Eastern Europe To advance its expansion plans in Central and Eastern Europe, Ardo Group has formed a joint venture with Croatian

FOOD & DRINK BUSINESS EUROPE, MAY/JUNE 2017

Quinoa vegetable stirfry.

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Sweet Potato Puree.

Agrokor Group, involving the investment of Eur50million in the Vinka production plant at Vinkovci to expand current volumes from 15,000 tons to 60,000 tons.

Agrokor Group has already invested nearly Eur25 million in Vinka and the expanded plant will become one of the leading manufacturing plants of frozen fruits and vegetables in Eastern Europe.

The Agrokor Group is the largest privately owned company in south-east Europe with almost 60,000 employees and has consolidated total revenues of

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Eur7 billion. The Agrokor Group’s core businesses are the production and distribution of food and beverages and retail.

Having achieved leadership in its domestic market, Agrokor is now focused on becoming a major player throughout the region and beyond.

Bernard Haspeslagh, chief operations officer of Ardo Group, comments: “Thanks to this joint venture we are realizing a long-term partnership within which we can exchange and develop knowledge in the production and processing of frozen fruits and vegetables in a growing market. Agrokor's agricultural potential combined with Ardo's industrial knowledge will create a leading production business in Eastern Europe. We strongly believe in the agricultural potential of the Danube valley. The combination of the productions of both the Vinka facility and Ardo's existing Austrian facility in this fertile valley, will create a complementary product range for the Eastern European market.”

Outlook While Ardo Group increased sales and turnover last year across its full range of products, helped by innovations, 2016 was characterised by low yields and poor

FOOD & DRINK BUSINESS EUROPE, MAY/JUNE 2017

Herbs mix tartare.

harvests in Europe, which will lead to higher ingredients prices. The Belgian company intends to maintain this growth trend in 2017, capitalising on continued expansion of the fresh-frozen vegetables, fruit and herb segments, fuelled by consumer demand for health and convenience.

In recent months, Ardo Group has detected an unprecedented rise in demand for organic products. Having long been active in the production and sale of oganic products, Ardo Group is now further developing this aspect of its business. J

Atelier Dumon: A One Stop Shop Company – For Your Materials Pallet Handling Needs espoke design and automation of B material pallet handling solutions and hydraulic elevators is the core business of Atelier Dumon.

Atelier Dumon is a family owned company, based in Bruges, Belgium, specializing in internal goods moving systems, machinery and hydraulic elevators. For more than 60 years the company has been providing automatic solutions for production processes for a wide variety of applications. Atelier Dumon specialize in handling frozen goods products, but also have experience and reference sites in the distribution, food, beverage and transport industries.

Atelier Dumon have engineered mechanical handling solutions for Ardo since 1993.

The first plant of Ardo where Dumon equipment was installed was at Ardooie, Dumon worked with Ardo to automate the different company processes. The collaboration between the two parties has had a farreaching effect on production operation, which has led to economic savings and

technological added value for the company of Ardo. These production enhancements have been expanded, over the past 20 years, to different parts of the Ardo business, other plants around Europe have benefitted, such as the plant of Hesbayefrost (in Geer) and sites in France, The Netherlands, Portugal, Denmark and Austria.

A requirement from Ardo was to eliminate the use of long reach trucks and automate the pallet handling system as much as possible. To cater for this Dumon engineered unique solutions, at the ground floor level docks, it is now possible to load and unload with pallet trucks. An extensive check on the shape and integrity of the pallet is essential to successful transport throughout the factory.

During transportation, Dumon systems can inte-

grate with robots, packaging machinery, label printers, wrappers, etc.

Dumon specially developed, (for frozen vegetables), a drilling machine that separates frozen vegetables without damage before filling into packaging machines. After wrapping and putting into boxes, pallets are transported onwards to warehousing, or docks, already in the right sequence.

The engineering department at Atelier Dumon delivers bespoke systems to satisfy customer needs.

Together with the client Atelier Dumon develop the best solution. The strength of Atelier Dumon is that they are a "one stop shop". Atelier Dumon work with the client from the beginning of the project and then design, manufacture and install the whole project, including the electrical control and software. Furthermore, customers of Atelier Dumon can count on a team of service technicians who are permanently available. J

Industrial Cooling Solutions From SKT ounded in 1968, the family owned comF pany SKT is a major supplier of industrial cooling installations, with a continuous focus on energy efficiency and productivity.

Important investments in R&D and engineering keep SKT at the technological top.

SKT can offer the frozen food industry a package of both freezing tunnel(s) and engine room(s), and are able to deliver this throughout Europe. SKT also cool warehouses all over Europe and deliver cooling solutions to a wide range of industrial processes.

An impressive stock of spare-parts and a 24/7 service availability guarantee SKT’s customers continuity in their production process.

SKT’s partner Datapolis ensures the automation of the project, and a remote control makes it possible to solve problems from SKT’s home office in Ypres (Belgium). SKT’s renewed website www.skt.be offers a clear look into the company’s activities and some useful information. J

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I PROCESSING & PACKAGING

PPMA Show 2017 Returns to Reveal the Best of Manufacturing Innovation he PPMA Show, the UK’s unmissable, free-to-attend, processing T and packaging machinery exhibition, returns to the NEC from 26-28 September to provide manufacturers with insights into the latest machinery products, technologies and materials. Registration is now open and easier than ever before – taking less than three minutes for attendees to secure their place to join all corners of the industry together under one roof this autumn.

The PPMA Show is organised by the Processing and Packaging Machinery Association (PPMA) which comprises the PPMA, British Automation & Robot Association (BARA) and the UK Industrial Vision Association (UKIVA). Serving manufacturers within the food and beverage, pharmaceutical, personal care and FMCG industries to contract packers and more, the show will offer visitors a chance to see new machinery in action, find inspiration, new ideas and solutions, gain access to potential new suppliers and evaluate and purchase the latest technology as well as talk face-to-face with the industry’s leading technical experts.

Learning Hub Building on its reputation as a best-in-class exhibition, the PPMA Show 2017 will feature a new and improved Learning Hub, providing visitors and exhibitors with insights from leading industry experts as well as influential opinion leaders from the wider business world.

A full speaker programme will be announced in the coming months but early confirmations include popular TED speaker and Chartered Engineer Peter Anderton. Peter, who previously worked as Production Manager for United Biscuits (UB), will inform and inspire visitors in two sessions. The first session will introduce visitors to his two-rule approach to great leadership before revealing helpful insights into how to build a successful team.

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Along with insights on leadership skills, the new Learning Hub will also shine a light on a wide range of issues and trends facing the manufacturing sectors. Topics currently under discussion include how businesses are evolving to meet changing market demands, embracing the future of Industry 4.0; the challenges of coding and labelling with details on need-to-know information; and the future of the retail landscape, with experts sharing their views on expected changes and how this will impact the processing and packaging industries. By expanding the focus of the new Learning Hub beyond the traditional manufacturing industries, organisers hope to inspire visitors by providing a new perspective on relevant trends and issues, as well as skills applicable across all industries.

New Entertainment and Interactive Features The PPMA Show 2017 will also feature all-new entertainment and interactive features, including a computer-controller goalkeeper, known as RoboKeeper. Described as the World’s Best Goalie, the RoboKeeper has already taken on the likes of footballers Lionel Messi and Neymar and will challenge visitors and exhibitors to try and score a goal live at the show. The RoboKeeper uses cutting-edge robotics and vision technology, reacting within fractions of a second, making it almost impossible to score.

Valerio Del Vecchio, Head of Marketing, PPMA Group of Associations, says: “Over the past 30 years, the PPMA Show has united buyers and suppliers at one of the UK’s most visually dynamic exhibitions. It enables manufacturing professionals to come together, network, discuss future trends, find inspiration and gain invaluable insights from thought leaders.

“The PPMA Total Show 2016 saw over 1,000 leading packaging and processing machinery manufacturing represented, with more than 7,500 visitors descending on the NEC to find out more.

Feedback from visitors attending the 2016 show revealed that the show is the destination to keep up to date with the industry, find inspiration and meet with new suppliers or business partners. We’re looking forward to building on this success when we open the doors to the PPMA Show 2017 on 26 September.”

To register for your free pass to attend the PPMA Show 2017, please visit http://bit.ly/2pYjGK0. A wide range of sponsorship opportunities are still available throughout the Show, which can be tailored to meet your individual requirements. Please contact the PPMA Show team on 020 8773 8111 to discuss in more detail.

For more information on the PPMA Show and its new features for this year, please visit www.ppmashow.co.uk. J

FOOD & DRINK BUSINESS EUROPE, MAY/JUNE 2017

I COCOA

Cargill Drives Sector Transformation in Ghana argill has celebrated the establishment C of its own licensed buying company (LBC) – Cargill Kokoo Sourcing Ltd – in Ghana. This new LBC has been fully operational since November 2016, and allows Cargill to directly source cocoa from certified farmers in Ghana for the first time – putting the farmer at the heart of its business.

So far over 25,000 farmers are registered, of which 9,000 are actively pursuing selling beans through Cargill’s LBC network.

Cargill already sources directly from farmers and farmer organisations in other origin countries. Moving to this model in Ghana means that the company will be better positioned to efficiently implement the Cargill Cocoa Promise at scale and better serve its customers.

Cargill’s innovative high–tech purchasing model is built on the principles of sustainability and full traceability in Ghana.

Farmers deliver their cocoa to community warehouses where their beans are digitally weighed in front of them, assigned a fully traceable bar code and funds are then transferred straight to the farmer’s phone or ewallet using E-money through partnerships with E-Zwich, MTM mobile Money and Tigo Mobil Money. The revolutionary move to mobile money in Ghana adds assurance for the farmer, improves their ability to trade more effectively and eradicates all risks associated with cash payments.

Details of the beans are then recorded in a standardized management system before the beans are collected by larger trucks, which transfer them to central warehouses.

Through Cargill’s new bar code system, the company can now trace each individual bag of Ghanaian cocoa beans, sourced through the Cargill LBC, to the individual farm, creating a fully traceable supply chain down to farmer level for the first time in Ghana.

Lionel Soulard, Managing Director West-Africa Cargill Cocoa & Chocolate, says: “Never before has it been more critical for cocoa farmers in Ghana to be the master of their own destiny and improve their own livelihoods. With the introduction of an innovative digital payment system, or mobile money for short, this first-of-its kind initiative at scale in Ghana is creating a great opportunity for smallholder finance at the farm level. We strongly believe that

this way of doing business is the future for cocoa farmers in Ghana. Mobile money is the first step towards improving incomes for farmers, as we build the infrastructure and capabilities for a more efficient and effective supply chain. Our aim is to create an enabling environment for smallholder finance for the future, resulting in better entrepreneurial spirit already noticeable at the farmer level.”

Lionel Soulard continues: “We intend to scale up existing activities to enable the current 9000 farmers dealing with the LBC to benefit from good agricultural practice training, community development, farm development and support in line with the COCOBOD strategy.

Developing our sourcing capabilities in the world’s second largest cocoa producing country is an essential step to meet growing customer demand for sustainable, certified cocoa.” J

I APPOINTMENT

New Director at Snowbird Foods nowbird foods has appointed Helen S Swan to the key post of commercial director and she joins joint managing directors Albert McGovern and Philip Paul on a three person board. Well known in the food industry, Ms Swan joined the fully cooked sausages and meatballs company in 2003 and was latterly its national accounts manager. A sales development managerial appointment is pending.

In addition to sales, Ms Swan has responsibility for the proactive ideas team which staffs the new product development department and is also tasked with driving forward an enhanced marketing programme. “Helen’s appointment gives us a perfectly balanced senior management team which will drive Snowbird foods forward on a series of exciting new product and business development adventures,” says Albert McGovern. J FOOD & DRINK BUSINESS EUROPE, MAY/JUNE 2017

Helen Swan has been appointed commercial director at Snowbird foods.

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Tate & Lyle Extends Clean-Label Portfolio ate & Lyle, a leading global provider of speciality food ingredients and soluT tions, has introduced its tapioca-based CLARIA® Bliss starch to the Europe, Middle East & Africa (EMEA) region, responding to growing demand from consumers for cleaner label products. An extension to the line of CLARIA® Functional Clean-Label Starches, the launch of CLARIA® Bliss in EMEA follows its debut at the Institute of Food Technologists Food Expo in Chicago last year.

CLARIA® Bliss has functionalities like modified tapioca starches and can help manufacturers develop high quality and great tasting products. With tolerance to shear, heat and acid, even under extreme conditions like ultra-high temperatures

(UHT) and homogenisation, CLARIA® Bliss makes it easier than ever for food manufacturers to develop products with cleaner labels and differentiated texture.

Its launch follows market research from Innova that shows the number of food products defined as clean-label sharply increased in Europe in categories such as chilled desserts (+54%) or ready meals (+39%) between 2014 and 2016.

Yves Maltete, VP Global Product Management, Texturants at Tate & Lyle, says: “At a time when 86% of European consumers regard food and beverages as processed if they contain ingredients they don’t recognise, CLARIA® Bliss can help manufacturers maintain great taste in their products. It will also allow them to simplify their ingredient list in a variety of applications, including delicate dairy desserts, clear sauces, chilled ready meals or filling of fresh baked goods.”

CLARIA® Bliss delivers on the growing tapioca-based starch trend, which has seen launches of products including tapioca ingredients increasing on average by

25% each year since 2010. Tapioca is popular among manufacturers and consumers for its clean flavour and colour, soft gel texture and non-GMO and gluten free attributes. CLARIA® Bliss thickens and sets to form a soft, translucent gel that is especially desirable in applications like a dairy custard or in speciality sauces.

Yves Maltete continues: “There is an enormous opportunity for our customers around the world to simplify ingredient lists and take advantage of demand for cleaner labelled products. We want to partner with our customers to help them meet these challenges, and retain their competitive edge locally and globally. With our expanded CLARIA® line now including CLARIA® Bliss, it’s easier than ever to make that a reality.”

For more information on CLARIA® Bliss, visit www.clariastarch.com/clariarbliss. J

WILD Flavors & Specialty Ingredients Introduces New Colourings ILD Flavors & Specialty Ingredients (WFSI), a business unit W of Archer Daniels Midland Company, is extending its portfolio of natural colouring foods with the addition of products based on extracts from pumpkin and a special carrot variety containing lycopene. Launched as a celebration of the company’s heritage in colouring foodstuff innovation, the new products add vivid yellow, orange and green hues to various food applications.

WFSI is launching two new products as it celebrates the company’s 30 year history in colouring foodstuff innovation from fruit and vegetables sources as a response to the continuously growing consumer demand for natural products. WILD Flavors was founded in Germany in 1931 and was acquired by ADM in 2014.

"Naturalness has always been at the core of our business and ethos, and we continue to innovate in response to evolving consumer demands — staying ahead of current trends and offering food and beverage developers an advantage in an increasingly competitive market,” explains Jochen Heininger, vice president of Marketing and Product Management, EMEAI, WFSI. The two new additions complement WFSI’s current colour port52

folio, which includes the Rainbow Range, a wide selection of colouring foodstuffs for beverages and foods. With vivid shades and excellent stability, the Rainbow Range can be used in several different applications, such as: water-soluble products for beverages; gelatin articles and hard caramels; oil-soluble options for chocolate waffles; powders for instant beverages; and much more. J

FOOD & DRINK BUSINESS EUROPE, MAY/JUNE 2017