Food & drink october:november 2017 by Colin Murphy

October/November 2017

The changing face of European dairy

Food & Drink Business Website:

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C o n t e n t s

- 47 C ONVENIENCE F OODS

- 3 M ERGERS & A CQUISITIONS

Challenging times for 2 Sisters Food Group.

Coverage of British and international deals.

P AGE 11

- 9 C OVER S TORY The changing face of European dairy.

PAGE 3

- 53 C ONFERENCE & E XHIBITION

Robert Watson OBE, CEO, Hilton Food Group.

Food & Drink Business Europe Conference & Exhibition UK - 7th November 2017 Ricoh Arena, Coventry.

Annikka Hurme, CEO, Valio.

Global Dairy Top 20, 2017.

R EGULARS Processing & Manufacturing . . . . . . . 20, 36-41

- 19 D AIRY IDF World Dairy Summit 2017 – Make a difference with dairy.

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Peder Tuborgh, CEO, Arla Foods.

Energy & Environment . . . . . . . . . . . . 23-27 PAGE 4

Jim Dobson, CEO, Dunbia.

Bottling & Packaging . . . . . . . . . . . . . . . . . . 29 Materials & Ingredients . . . . . . . . . . 31-35 & 51 Quality & Safety. . . . . . . . . . . . . . . . . 49 & 50

- 28 R EADY M EALS

Information Technology . . . . . . . . . . . . . 56

Growing appetite for ready meals.

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Gabriel D’Arcy, CEO, LacPatrick Co-op.

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

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- 31-35 I NGREDIENTS Fi Europe & Ni 2017 - 28-30 November 2017 - Messe Frankfurt, Germany.

Giovanni Ferrero, Chairman, Ferrero Group.

Advertising: Ian Stewart, Rachel Howard and Tony Lambert Production Manager: Sylvia McCarthy

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- 43 C EREALS High demand for convenience drives growth in global breakfast cereals market.

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Roelof Joosten CEO, Royal FrieslandCampina.

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FOOD & DRINK BUSINESS EUROPE, OCTOBER/NOVEMBER 2017

M E E R R G G E E R R S S M Hilton Food Group to Move into UK Fish Processing Hilton Food Group, the UKbased specialist international meat packing business, has agreed to acquire Icelandic Group UK (Seachill), a leading chilled UK fish processor, for cash consideration of £80.8 million. The acquisition will provide Hilton with an attractive growth opportunity and entry

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Robert Watson OBE, chief executive of Hilton Food Group, says: “The processing and supplying of fish and seafood into the UK is an attractive and growing market and one where we see considerable opportunities to build Hilton’s business. Our initial discussions with key customers support this view and we look forward to broadening our offering to both our UK and overseas customers alongside our existing meat business.”

ABF Expands Speciality Foods Portfolio

Robert Watson OBE, chief executive of Hilton Food Group.

into the processing and supply of fish in the UK. Founded in 1998, Seachill has grown to be one of the largest chilled fish processors in the UK, with well-invested facilities and a well-established supply chain based in Grimsby, Lincolnshire. Seachill focuses on the three largest fish species in the UK and has successfully innovated and developed new products including The Saucy Fish Co brand, which is the largest chilled wet fish brand in the UK. The business achieved revenues of £266.3 million and operating profit of £3.4 million for the year ended 31 December 2016. The chilled seafood market within Great Britain has displayed resilient growth evidenced by a 20 year track record of increasing market value. Hilton’s existing customers see opportunities in adjacent categories, such as fish, both in the UK and internationally and the acquisition will broaden the meat group’s offering to both UK and overseas customers. Hilton is undertaking a placing to raise gross proceeds of £55.9 million to part-fund the acquisition through the issue of new ordinary shares.

Associated British Foods, the UK-based diversified international food, ingredients and retail group, is acquiring Acetum, the leading Italian producer of Balsamic Vinegar of Modena (BVM), for an undisclosed sum. BVM is one of the best known vinegars in the world, which has been granted European Protected Geog-raphical Indication (PGI) status due to its unique manufacturing tra-

dition and provenance, as well as its high quality. Completion of the transaction is subject to antitrust clearance in Germany and Austria. Acetum was founded by Cesare Mazzetti and Marco Bombarda, both of whom will remain in the business, and is based in the Province of Modena in Northern Italy, the region traditionally associated with balsamic vinegar. Its brands include Mazzetti, which is the leading brand in Germany and Australia, as well as Acetum and Fini. It also produces a range of apple vinegars and other condiments and sells its products to more than 60 countries around the world. In the year ended 31 December 2016 the business generated net sales of Eur103 million. ABF has ambitious plans to grow these

brands and the acquisition will broaden the group’s international presence in speciality foods. ABF has operations in 50 countries across Europe, southern Africa, the Americas, Asia and Australia, generates sales of £13.4 billion and employs 130,000 people.

Gruppo Campari Sells Lemonsoda to Royal Unibrew Gruppo Campari has agreed to sell its Lemonsoda business to Danish beverage company Royal Unibrew for Eur80 million. The sold business includes the alcohol free fruit-flavoured carbonated variants Lemonsoda, Oransoda, Pelmosoda and Mojito Soda, grouped under the Freedea brand name, as well as the Crodo brands (with the exception of the brand Crodino). Besides the trademarks, the deal also includes the manufacturing and bottling facility, located in Crodo, Northern Italy, and the associated water springs as well as the inventories. The transaction is expected to be completed by the end of 2017. The transaction fits Gruppo Campari’s efforts to streamline its brand portfolio and focus on its core spirits business. Since the beginning of 2017 Gruppo Campari has divested several non-strategic assets for a total value of approximately Eur310 million.

Bob Kunze-Concewitz, chief executive of Gruppo Campari.

Unilever Expands in Brazil Unilever has agreed to acquire Brazilian natural and organic food business Mae Terra. Mae

FOOD & DRINK BUSINESS EUROPE, OCTOBER/NOVEMBER 2017

Terra is a fast-growing and wellloved brand in Brazil and operates in several categories with a portfolio that includes organic cereals, cookies, snacks and culinary products. The main Mae Terra categories represent a Brazilian market worth more than Eur8 billion (Euro-monitor). Terms of the deal were not disclosed. The transaction is subject to customary regulatory approvals.

Cargill and Faccenda Foods to Combine Their Fresh Poultry Activities in the UK Cargill and Faccenda Foods have agreed to establish a joint venture to create a leading UK food company focused on chicken, turkey and duck. The formation of this joint venture is subject to clearance by the relevant regulatory authorities. Cargill’s fresh chicken business in the UK will be combined with Faccenda’s fresh chicken, turkey and duck business to form the new company. The new joint venture will be a standalone business, with Cargill and Faccenda taking an equal shareholding. Andy Dawkins, managing director for Faccenda Foods, will be appointed chief executive of the newly formed company. Chris Hall, fresh chicken director for Cargill Meats Europe, will be appointed chief commercial officer of the new joint venture. The new business plans to employ approximately 6,000 people in the UK and will operate across multiple agriculture and operational centres, with broad capabilities that span the supply chain focused on operational excellence and customer focused partnerships. “We believe the two organisations are complementary. Combining into one entity allows us to build on our strengths, grow in the market

M E E R R G G E E R R S S M and better serve our customers. The venture will facilitate greater opportunities to innovate and deliver new and exciting poultry products for consumers,” explains Chris Langholz, president of Cargill Poultry. Separate to this joint venture, in the UK Cargill will continue to process and sell cooked poultry products in Balliol, Wolverhampton, as well as operate its poultry import, trading and distribution business. Cargill will also continue to operate its European poultry businesses in France, Russia and the Netherlands. Faccenda will retain its shareholding in Dartmouth Foods. The name of the new joint venture is going to be announced at the closing of the deal.

Dawn Meats and Dunbia Deal Closes The strategic partnership and acquisition agreement announced in May 2017 by Dawn Meats and Dunbia has been completed, with all relevant regulatory clearances approved. Dawn has agreed a strategic partnership with Dunbia to establish a joint venture in the United Kingdom comprising the UK operations of both organisations. The combined businesses in the UK, which are trading as Dunbia, 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. In the Republic of Ireland, Dawn has acquired Dunbia’s operations, and now has nine

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facilities (including five abattoirs), following the addition of two complementary Dunbia facilities - one abattoir in Slane, and one boning hall in Kilbeggan. The combined businesses in the UK and Ireland will process approximately 900,000 cattle and 2.6 million sheep annually.

Jim Dobson, chief executive of Dunbia.

Kellogg Broadens Wholesome Snacks Portfolio Kellogg Company is acquiring Chicago Bar Company, the maker of RXBAR, a line of clean-label protein bars made with whole food ingredients and the fastest growing nutrition bar brand in the United States. The purchase price is $600 million. Growing rapidly, RXBAR's net sales are expected to be approximately $120 million in 2017 RXBAR will continue to operate independently as a standalone business, and will be able to leverage Kellogg's scale and resources to continue driving its growth. The acquisition adds a pioneer in clean-label, high-protein snacking to Kellogg’s portfolio and bolsters its already strong wholesome snacks offering.

Nestlé Expands Coffee Portfolio Nestlé has acquired a majority stake in Blue Bottle Coffee, a high-end speciality coffee roaster and retailer based in the US. The company operates coffee shops in major US cities and in

Japan. The total number of Blue Bottle Coffee shops is expected to reach 55 by the end of 2017, up from 29 at the end of last year. Blue Bottle Coffee has also launched super premium readyto-drink and roast and ground products, sold online and in the retail market. Mark Schneider, chief executive of Nestlé, comments: “This move underlines Nestlé’s focus on investing in high-growth categories and acting on consumer trends. Blue Bottle Coffee’s passion for quality coffee and mission-based outlook make for a highly successful brand. Their

path to scale is clearly defined and benefits from increasing consumer appreciation for delicious and sustainable coffee.” With the acquisition of Blue Bottle Coffee, Nestlé is entering the fast-growing, super premium coffee shop segment with an iconic brand for discerning coffee drinkers. Blue Bottle Coffee allows Nestlé to strengthen its position in the US coffee market, the largest in the world, as well as internationally, building on success in Japan. It also offers opportunities to grow in super premium ready-to-drink and roast and ground coffee, largely through online subscription. Nestlé is the world’s largest coffee producer, with brands including Nescafé and Nespresso.

FOOD & DRINK BUSINESS EUROPE, OCTOBER/NOVEMBER 2017

Ter Beke Assumes Control of KK Fine Foods in the UK Ter Beke, the Belgian fresh food group, has acquired 90% of the shares in KK Fine Foods, the UK manufacturer of fresh ready made meals which are sold in the food service and retail markets as frozen products. The remaining 10% of KK Fine Foods will remain in the hands of existing shareholders. The takeover gives Ter Beke a firm foothold in the UK market, the largest of its kind for ready meals in Europe. With a turnover of £36.2 million (Eur39.3 million) in 2016, KK Fine Foods is a major player in the ready meals market. The acquisition of KK Fine Foods is in line with Ter Beke’s growth ambitions. In July this year, Ter Beke took over French-based Stefano Toselli and also assumed full control of Pasta Food Company, based in Poland. As a result, turnover increased by Eur80 million on an annual basis. The acquisition of KK Fine Foods means that the Ready Meals division will be able to consolidate its position and extend its geographical reach. Furthermore, Ter Beke also plans to take over the Fresh Foods business unit at the Zwanenberg Food Group (Cebeco Meats Products Nederland). This would mean a Eur130.6 million expansion for its Processed Meats division. Ter Beke intends to harness the strategic strengths of both its Processed Meats and Ready Meals divisions.

M E E R R G G E E R R S S M Ferrero to Acquire US Confectionery Company Ferrero Group is acquiring Ferrara Candy Company, the third largest non-chocolate confectionery company in the US, from L Catterton, the biggest and most globally consumer-focused private equity firm in the world. The terms of the transaction were not disclosed. Ferrara is best known as the maker of iconic brands such as Trolli, a leader in gummy candies; Brachs, a lead-

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attractive growth prospects, including gummy and seasonal candies. We look forward to continuing to grow the Ferrara business, investing in its brands to support expansion plans, leveraging its US manufacturing plants and distribution centres, and creating opportunities for its talented people.” Ferrero expects to operate Ferrara as a separate unit and to maintain Ferrara’s headquarters in Illinois. The transaction is subject to customary closing conditions and regulatory approvals, and is expected to close in the fourth quarter of 2017.

Unilever Sells South African Spreads Business

Giovanni Ferrero, executive chairman of the Ferrero Group.

ing seasonal candy; and Black Forest Organics, a leader in organic and fruity candies. Ferrero is the third largest company in the global chocolate confectionary market and is best known in the US for Tic Tac mints, Ferrero Rocher pralines, Nutella hazelnut spreads, and the Fannie May and Harry London chocolate brands. Ferrero recently introduced Tic Tac gum and Kinder Joy to the US market, with both products scheduled to be available in stores in January 2018. The company has also opened the world’s first Nutella Café in Chicago, offering a range of Nutellabased products, along with beverages, sandwiches and soups. Giovanni Ferrero, executive chairman of the Ferrero Group, says: “With this acquisition, we are continuing to increase our overall footprint and product offering in the important US market, establishing a presence in new confectionery categories with

Unilever is acquiring Remgro’s 25.75% shareholding in Unilever South Africa Holdings in exchange for the Unilever Spreads business in Southern Africa as well as a cash consideration of ZAR4.9 billion (Eur312 million), representing a transaction value of ZAR11.9 billion. The deal values the Spreads business at ZAR7.0 billion, representing a 13.4 multiple of 2016 EBITDA. Meanwhile, Unilever has agreed to acquire Carver Korea, a leading skincare business in North Asia, for Eur2.27 billion, from Bain Capital Private Equity and Goldman Sachs.

Scotland in 2003, Innis & Gunn recently reported a 22% increase in its annual group turnover to more than £14.3 million in 2016. This was the 13th consecutive year of volume growth, with volume over the past five years increasing by 175%.

Refresco Receives Renewed Interest From PAI Refresco Group, 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, has received a new unsolicited, indicative and conditional proposal from private equity firm PAI Partners. It regards a possible offer to acquire Refresco for Eur1.6 billion. The offer includes Cott's bottling activities, Refresco's latest acquisition which is expected to see completion before year-end. The offer is subject to a number of conditions. Refresco generated revenues of €2.1 billion on volume sales of 6.5 billion litres in 2016.

Innis & Gunn Raises Additional Capital With Equity Sale US-based L Catterton, the largest consumer-focused private equity firm in the world, is purchasing a minority stake of 27.9% in Innis & Gunn, one of the UK’s most successful international craft brewers, for £15 million. Founded in

Pilgrim’s Pride Acquires Moy Park For $1.3 Billion US-based Pilgrim’s Pride Corporation has acquired Moy Park, the Northern Irelandbased poultry and prepared foods supplier, from Brazilian meat group JBS for $1.3 billion (£1.0 billion, Eur1.1 billion). With 13 processing and manufacturing units in Northern Ireland, UK, France, the Netherlands and Ireland, Moy Park processes 5.7 million birds per week, in addition to producing around 200,000 tons of prepared foods per

FOOD & DRINK BUSINESS EUROPE, OCTOBER/NOVEMBER 2017

Janet McCollum, chief executive of Moy Park.

year. Pilgrim's employs approximately 42,000 people and operates chicken processing plants and prepared-foods facilities in 14 states in America, Puerto Rico and Mexico. The company's primary distribution is through retailers and foodservice distributors and it offers a portfolio of well-known brands including Gold Kist, County Post, Pierce Chicken, Pilgrim's Pride and GNP. Bill Lovette, chief executive of Pilgrim’s Pride, comments: “Following our successful acquisitions of GNP and the assets in Mexico, Moy Park represents a logical next step in the evolution of our geographical and brands footprint. The acquisition gives us access to the attractive UK and European markets, which advances our strategy of diversifying our portfolio to be more global while reducing volatility across our businesses.” Moy Park will remain headquartered in Craigavon, Northern Ireland. The Moy Park management team, led by Janet McCollum, will continue to lead the business. Janet McCollum, chief executive of Moy Park, says: “Pilgrim's is one of the leading chicken producers in the world with a proven track record and we see great opportunities for Moy Park as part of this successful business. Joining Pilgrim's gives us the opportunity to accelerate our growth plans, share best practices and leverage Pilgrim's expertise and operational excellence.”

COVER STORY

The Changing Face of European Dairy As global markets start to recover from the downturn of the past two years, Europe’s major dairy companies are continuing to invest in additional processing capacity and new technology to handle the growth in milk production from dairy farmers following the abolition of EU milk quotas in April 2015 but the onus has now switched from adding volume to developing value added products to meet changing consumer tastes, whilst still improving overall efficiency.

Hein Schumacher (left) will become chief executive of Royal FrieslandCampina on 1 January 2018, succeeding Roelof Joosten (right).

he recovery in global milk prices is a consequence of lower to unchanged milk production, compared to 2016, in most dairy producing regions coupled with improved demand for milk and dairy products in Europe, the US, and emerging markets. A slight increase in the global supply of milk is predicted for the second half of 2017, compared to the corresponding period in 2016. However, the demand for dairy products is also expected to expand, aided by increased sales of raw materials in China. Higher butter and cheese quotations due to the persisting strong demand for fat-related products is expected to fuel the continued rise in dairy product prices. Intensifying price competition, particularly in the Chinese infant nutrition market, may well result in margin pressure.

ed. Royal FrieslandCampina of the Netherlands has moved up one place to fifth in the global rankings following its purchase of a 51% stake in Engro Foods of Pakistan. Arla Foods (Denmark/Sweden) and Netherlands/UK-based Unilever, which is the world’s largest ice cream producer with a global market share of about 27%, are ranked 7th and 12th respectively in the Rabobank league table. Sodiaal (16th) and Savanecia (formerly Bongrain - 18th) take France’s representation in the Top 20 to four companies. Germany has two companies – farmers’ cooperative DMK (15th) and privately-owned Muller Group (19th). Other leading dairy European companies include: Valio, the market leader in Finland; TINE, the leading dairy co-operative in Norway; Hochwald and Molkerei Ammerland of Germany; Berglandmilch, the Austrian dairy co-operative; Mlekovita, Poland’s largest dairy group; and Dairy Crest, a leading British branded dairy products business with a growing presence in functional ingredients. M&A Activity Merger and acquisition activity within the European dairy industry is again gathering momentum, following a slowdown, as some processors attempt to strengthen their respective positions in both

Global Dairy Top 20 The European dairy industry is highly concentrated with over 70% of the continent’s milk processed by just twenty dairy companies. The ten largest dairy companies in Europe, by turnover, also feature in Rabobank’s Global Top 20 ranking for 2017(see Table). Indeed, four occupy the top five places. Helped by its Froneri ice cream joint venture with R&R, Switzerland-based Nestlé remains Europe’s and the world’s largest dairy group. Following its acquisition of WhiteWave Foods, Danone has moved into second place, overtaking Lactalis (3rd), both of France. However, Lactalis is likely to reclaim second place in Rabobank’s 2018 ranking when its acquisitions of Danone’s Stonyfield business in the US and Omira in Germany are completFOOD & DRINK BUSINESS EUROPE, OCTOBER/NOVEMBER 2017

domestic and international markets, while continuing to invest in developing value added products and in improving efficiency. “The run rate of M&A in the dairy sector is again picking up,” points out Kevin Bellamy, global sector head Dairy at Rabobank. “While there were only a total of 73 deals in dairy in 2016, at the halfway point in 2017, the number is already up to 50, with half of these in Europe.” The European dairy industry is also characterised by a high Annikka Hurme, chief executive of Valio. level of capital expenditure across all major sectors, ranging from yoghurts and desserts to cheese, whey and infant nutrition. Yoghurt and Desserts Valio has just opened the world's most modern dairy snack plant following investment of Eur170 million at its yoghurt manufacturing site at Riihimaki in Southern Finland. The snack plant represents the largest single investment in Valio’s long history. The type of advanced technology incorporated in the plant is designed to allow Valio to broaden the yoghurt and snacks categories through innovation and the development of new products. Once the snack plant comes into full operation, almost half of its production will be for the export market, which currently is largely Sweden and Denmark. However, in the future this will expand to other countries. “There are some indications of the beginning of an economic recovery in Finland and Europe, which will surely increase interest in high-quality value added products,” says Annikka Hurme. “By global comparison, Valio manufactures luxury class dairy products from GMO-free raw milk whose production is virtually soy free and adds no unnecessary antibiotics. Consumers are interested in food, nutrition and sustainability, and actively challenge the food industry and brands to take their wishes onboard. An active discussion on food creates a good foundation for developing our business.” Muller Group has plans to spend £40 million to expand its yogurt plant at Telford in England as part of a £100 million invest-

Valio has just opened the world's most modern dairy snack plant following investment of Eur170 million.

ment programme in the UK over the next three years. Muller aims to develop, manufacture and market a new generation of branded and private label yogurt and desserts products, made from milk produced by British farmers. Muller will also increase its marketing spend by almost 25% over the next three years, in line with the company’s ambitions to grow the yogurt and desserts category. The German dairy group has identified a potential £233 million of yogurt and desserts category growth in the UK by 2020. Dairy Ingredients Meanwhile, Arla Foods is investing Eur335 million across its production sites during 2017 including: Eur31 million on upgrading and expanding the Denmark Protein site in Denmark, which produces protein, lactose and other highly value added whey-based ingredients for the global food industry; Eur12 million on upgrading the AKAFA production site in Northern Denmark, which will allow it to add Infant Milk Formula (IMF) production; and Eur44 million (£37.5 million) across Arla Foods’ UK sites. Glanbia Ireland (formerly Glanbia Ingredients Ireland) has just completed a Eur35 million expansion at its cheese plant in Wexford, bringing total investment across its processing plants to Eur270 million over the last three years. Ireland’s largest dairy processor now plans to embark on a Eur250 million to Eur300 million strategic capital investment programme in the period 2017 to 2020.

Muller Group has plans to spend £40 million to expand its yogurt plant at Telford in England as part of a £100 million investment programme in the UK.

Expansion in Infant Nutrition Although Nestle and Danone are global leaders in infant nutrition, they are not directly involved in the production of whey and lactose ingredients. Both groups have been investing heavily to expand their infant products capacity in Europe. Danone is spending Eur240 million on building a state-of-theart plant at Cuijk in the Netherlands for its Early Life Nutrition business. It represents Danone’s largest investment in its European production capabilities and will double its capacity in the Netherlands with output being exported to more than 80 countries globally. Intended to capitalise on strong and growing demand for Danone’s international brands, including Aptamil and Nutrilon, for both standard and specialised products, the new factory is due to start production in late 2017. In Switzerland, Nestlé recently completed a SFr82 million (Eur75million) investment to expand its infant products factory at Konolfingen. The new state-of-the-art facility will produce infant formula to meet increasing demand from consumers in 90 countries. The investment has reinforced the Konolfingen site’s position as Nestlé’s world centre for children’s milks, cereals, probiotics and specialised food for infants and children. Nestlé’s Produce Technology Centre focusing on the development of infant formula, dairy products and medical nutrition is also based at the Konolfingen site. Nestlé has identified infant nutrition along with coffee, petcare and bottled water as high growth food and beverage categories in which it will increasingly focus capital spending. The Swiss group has just commenced construction of its first infant formula plant in

FOOD & DRINK BUSINESS EUROPE, OCTOBER/NOVEMBER 2017

In the UK, Dairy Crest has opened a £45 million facility for manufacturing demineralised whey powder, a base ingredient in infant formula.

Russia at its existing site at Vologda. Involving investment of SFr30 million (Eur26 million), the new facility will strengthen Nestlé’s leading position in the Russian infant formula market, and support export to neighbouring countries. Demineralised Whey In the UK, Dairy Crest recently opened a £45 million facility for manufacturing demineralised whey powder, a base ingredient in infant formula, from the whey generated from its cheese making factory at Davidstow in Cornwall. Dairy Crest has also spent £20 million at its Davidstow site to manufacture galacto-oligosaccharide (GOS), a lactose-based prebiotic, widely used in infant formula. “Developing our sales of demineralised whey and GOS into the high-margin global infant formula market will be a key priority this year. At the same time we will continue our research into other potential animal and human applications for GOS,” explains Mark Allen, chief executive of Dairy Crest. Following the disposal of its dairies business for £80 million to Muller Group, Dairy Crest is now focused on its spreads, butters, cheese (including Cathedral City - the UK’s leading cheese brand) and whey activities. Mark Allen continues: “Looking forward, I am excited about the future for Dairy Crest. The business is well positioned to deliver profitable, sustainable growth and stronger cash generation.”

cheese manufacturer Royal A-ware. The new site at Heerenveen in the Netherlands consists of two plants working in tandem - Aware’s facility produces cheese for its customers in Europe, while Fonterra’s processes the whey and lactose generated by A-ware. Another international joint venture of this nature is the alliance between Synutra International, China’s third largest baby formula producer, and Sodiaal, France's biggest dairy co-operative. Synutra has opened a Eur170 million plant in Brittany to produce whole and skimmed milk powder, oil-wrapped whey protein powder and cream as well as infant milk formula (IMF). The new facility, which represents China's largest foreign investment in the milk processing sector, is being supplied by Sodiaal under a 10 year contract. The French factory adds to Synutra’s ability to produce premium IMF products for the Chinese market, which is showing mistrust in domestically manufactured products. "We are very pleased to officially open our first overseas facility and receive all relevant production licenses to manufacture in France as well as import accreditations by China's Certification and Accreditation Administration for IMF and general dairy products,”

Synutra has opened a Eur170 million plant in Brittany to produce whole and skimmed milk powder, oil-wrapped whey protein powder and cream as well as

International Alliances To market the output from its investment in demineralised whey powder and GOS production at Davidstow, Dairy Crest has formed a joint venture with New Zealand-based Fonterra Co-operative Group, which is the world's leading dairy exporter. Fonterra has been steadily increasing its influence in Europe. It recently opened its first wholly owned and operated dairy ingredients plant in Europe, as part of a strategic partnership with Dutch

Nestlé has just commenced construction of its first infant formula plant in Russia at its existing site at Vologda.

infant milk formula.

says Liang Zhang, chairman and chief executive of Synutra International. “We believe that the high-quality products manufactured from our French facility will attract more customers, elevate sales and bring significant benefits to our company both in terms of operating efficiency and brand image.” Restructuring A number of the major dairy processors are currently restructuring their operations. DMK Group has embarked upon a major realignment of its business following a poor financial performance in 2016 due to the major downturn in the global milk market, which prompted many German farmers to quit dairy and proved to be the most difficult year in the co-operative’s history. “We clearly fell short of our most important goal – to pay competitive milk prices. There's no way to gloss over that fact,” says Ingo Muller, chief executive of DML Group. “The company is sound. We have a stable foundation. Now we have to make the DMK Group competitive again with our sweeping structural programme.” Involving ceasing production at three sites, the programme has four goals - a leaner organisation, better raw materials planning, a focused portfolio and an optimised expenditure structure. “The change processes are sometimes painful, but they are putting our company on course for the future. Initial ratios for 2017 show that we’re on the right track,” adds Ingo Muller. With a leaner structure and further improvements in raw materials planning, DMK aims to remain competitive and efficient even when the milk volume declines.

FOOD & DRINK BUSINESS EUROPE, OCTOBER/NOVEMBER 2017

FrieslandCampina Ingredients, with the production and sales of ingredients, and FrieslandCampina Basic Dairy, with the production and sales of basic products, such as cheese, butter and milk powder to the food industry and retail. The latter is also responsible for optimising the group’s milk processing activities. The objective of the new structure is to further improve the company both operationally and commercially and consequently generate more value for the member dairy farmers in a sustainable way. The new organisation will be operational as of 1 January 2018.

Ingo Muller, chief executive of DMK Group.

Streamlining at Royal FrieslandCampina Royal FrieslandCampina, which spent Eur226 million primarily on the expansion of production capacity and replacement investments in the Netherlands during the first half of 2017, is streamlining its business. It is simplifying its organisational structure into four global business groups - Consumer Dairy, Specialised Nutrition, Ingredients and Basic Dairy. The new FrieslandCampina Consumer Dairy business group will be created from the current consumer-driven business groups FrieslandCampina Europe, Middle East & Africa; FrieslandCampina Asia; and the consumer-focused activities of FrieslandCampina Cheese, Butter & Milkpowder. The new FrieslandCampina Specialised Nutrition business group will focus on speciality food, such as infant nutrition, sports nutrition and nutrition for elderly people in view of the increasing importance of these high value markets for FrieslandCampina. Two business groups will target the business to business market -

Change in Leadership To coincide with the reorganisation, FrieslandCampina will also change its chief executive with Hein Schumacher, chief financial officer, succeeding Roelof Joosten, who will resign on 1 January 2018. Roelof Joosten has been chief executive of FrieslandCampina since June 2015 having first joined the dairy group in 2004. As chief executive, Roelof Joosten has overseen a number of important changes including the updating of the group’s route2020 development strategy and the recently announced simplification of the organisation. Sales of infant nutrition in China have grown strongly under his leadership and he envisaged the unprecedented possibilities for the valorisation of whey, which is now an important ingredient of, among others, infant nutrition.

Peder Tuborgh, chief executive of Arla Foods.

Roelof Joosten remarks: “FrieslandCampina has entered a change process in which we further strengthen the decisiveness of the company. We can accomplish this by simplifying the organisation and by granting the four to be set up global business groups more independence. We will also put more emphasis on the value that our specialised nutrition and our consumer brands can offer. The executive board will be reduced from six to two persons. In this process we have also had the courage to take a critical look at our own roles and responsibilities. Consequently, I have decided to pass on the baton to Hein at the end of this year. Hein’s drive and clout are qualities that perfectly fit in with this new phase for our company. It was not an easy decision for me personally, for I have always worked with a lot of passion with FrieslandCampina.”

In Northern Ireland, LacPatrick Co-op has just unveiled a 30,000 sq ft state-ofthe-art Dairy Technology Centre at its processing site at Artigarvan.

Consolidation in Ireland The Irish dairy industry is undergoing major restructuring following two recent merger and acquisition deals. Glanbia Ingredients Ireland – a joint venture between Glanbia Co-op and global nutrition group Glanbia plc - has consolidated its leadership position by amalgamating Glanbia plc’s Irish consumer foods and agribusiness interests – Dairy Ireland.

FOOD & DRINK BUSINESS EUROPE, OCTOBER/NOVEMBER 2017

The combined business has been renamed Glanbia Ireland and is 60% owned by Glanbia Co-op with 40% held by Glanbia plc. With annual revenue of Eur1.5 billion and operating 11 plants, the enlarged Glanbia Ireland will processes a 2.4 billion litre milk pool and export high quality dairy and agri ingredients as well as branded products to over 60 countries. Gabriel D’Arcy, chief executive of “Glanbia Ireland brings LacPatrick Co-op. together in a single structure the ownership, operations and objectives of Glanbia’s Irish dairy and agri-businesses. It is a vibrant, ambitious business with exciting growth plans,” explains Jim Bergin, chief executive of Glanbia Ireland. “Our suppliers have expressed the ambition to expand their milk supply by 30% between 2016 and 2020; the strong cash flow generation of the enlarged Glanbia Ireland business will allow us to fund the required processing capacity expansion without the requirement for supplier contributions in this next growth phase.” The recent acquisition of Fane Valley, the Northern Ireland farmers’ co-operative, by Lakeland Dairies, a fellow co-operative based in the Republic of Ireland, has made Lakeland Dairies the third largest Irish milk processor behind Glanbia Ireland and Dairygold Co-operative. Lakeland Dairies has just completed a Eur36 million investment to expand milk powder production at its site in Bailieboro,.

Leading Edge Dairy Technology In Northern Ireland, LacPatrick Co-op has just unveiled a 30,000 sq ft state-of-the-art Dairy Technology Centre at its processing site at Artigarvan. Costing over £30 million, the new facility incorporates leading edge evaporation and spray drying technology capable of making advanced dairy ingredients for LacPatrick’s rapidly expanding markets in Europe, Middle East, Africa and Asia. According to LacPatrick, which was formed in 2015 as a result of the merger of Ballyrashane and Town of Monaghan Co-ops, the new plant is one of the most innovative and modern facilities of its kind in the European dairy industry. “This is one of the most exciting innovations and investments within the dairy sector and positions LacPatrick as one of the largest producers of dairy ingredients in the UK. Not only does it make us self-sufficient in terms of processing our own milk pool

Focus on Innovaton Arla Foods recently opened a new state-of-the-art global innovation centre at Innovation is, of course, crucial to developing new products to add Aarhus in Denmark. value to the milk being processed and to gain a competitive edge in the market-place. For instance, Arla Foods recently opened a new but it means we can now also assist other processors with addistate-of-the-art global innovation centre at Aarhus in Denmark. The tional high end milk,” points out Gabriel D’Arcy, chief executive new facility supports Arla Foods’ Good Growth 2020 strategy by of LacPatrick Co-op. “This cutting-edge investment is an impordeveloping more value-added products in collaboration with cus- tant part of LacPatrick’s measured growth strategy and we envistomers. Arla Foods’ ambition is to be the most collaborative innova- age further major announcements during the next five year peritor in the US$400 billion global dairy market. od as we consolidate our position as a leader within the Northern Arla Foods currently sells its products in over 100 countries around Ireland dairy industry.” the world, with the group’s biggest markets being the UK, Germany, In the Republic of Ireland, Dairygold recently opened a new Sweden, Denmark and with long-term strategic growth ambitions in Eur86 million Nutritionals Campus in Mallow. Capable of profour emerging markets outside the EU. By 2020, the international ducing the full range of nutritional dairy ingredient powders in dairy co-operative plans to grow its branded volumes of up to 1,750 tonnes/week, the sales in the Middle East and North Africa, the Mallow Nutritionals Campus is a key pillar USA, Sub-Saharan Africa as well as China and of Dairygold’s expansion strategy to supSoutheast Asia. Already the world’s biggest port the growth ambitions of its 2,900 milk producer of organic dairy products, Arla suppliers, who are expected to produce 1.3 Foods has also set out to further expand its billion litres this year – an increase of 105 global organic dairy sales by 2020. million litres on 2016. “As a dairy co-operative, we are built on Jim Woulfe, chief executive of farmers getting together in the 1880s to create Dairygold, says: “The Mallow investment better opportunities together. It is in our delivers on the twin objectives of our Dairy DNA to collaborate to achieve better results. Expansion plan. This world-class Our new global innovation centre will apply Nutritionals Campus not only caters for that same approach to our research and develour members’ expanding milk production opment of not just new products but also but it also puts in place the processing technew ways to consume them. The global food nology to expand our range of higher value industry has never been more competitive ingredients for the adult and infant nutrithan it is today – especially in Europe and tionals sector. This in turn creates more across the emerging markets with its boomvalue add for our increasing milk volumes. ing middle class of consumers in Asia, Africa The Nutritionals Campus will be at the and beyond. The best innovator wins,” says forefront of our Nutritionals growth agenPeder Tuborgh, chief executive of Arla da with further investment planned in the Foods. near future.” J Jim Woulfe, chief executive of Dairygold. FOOD & DRINK BUSINESS EUROPE, OCTOBER/NOVEMBER 2017

I DAIRY

IDF World Dairy Summit 2017 – Make a Difference With Dairy ‘Make a Difference with Dairy’ is the theme for the IDF World Dairy Summit 2017, which is expected to attract over 1,000 participants from across the globe, from dairy farmers and processors to government officials, academics, scientists and NGO representatives, to Belfast, Northern Ireland, between October 29th and November 3rd, 2017.

eld annually by the International Dairy Federation (IDF), the World Dairy Summit is the top meeting of the global dairy industry. The IDF represents the global dairy sector and ensures the best scientific expertise is used to support high quality milk and nutritious, safe and sustainable dairy products. IDF’s vision is to help nourish the world with safe and sustainable dairy. The growing world population needs nutritional security, and this must be provided both safely and sustainably. IDF provides a mechanism for the dairy sector to reach global consensus on how to help feed the world with safe and sustainable dairy products. The Summit The Summit will examine the impact a vibrant, efficient and sustainable dairy industry, with nutrient rich and innovative dairy products, can have on the health of current and future generations, animal health and welfare, dairy science and technology, the environment and much more. The Summit will feature several high profile conferences, including the first IDF World Political Leaders Forum followed by an IDF World Dairy Leaders' Forum and eight conferences focusing on marketing; nutrition and health; dairy policy and economics; dairy science and technology; food safety; farm management; animal health and welfare; and the environment. The event will conclude with a series of technical tours showcasing the UK industry’s state-of-the-art infrastructure.

Social Events The Welcome Reception will take place in the multi-award winning Titanic Belfast on Sunday 29th October. Voted the Best Attraction in Europe at the World Travel Awards 2016, the Titanic Museum features many interesting exhibits, including a recreation of the famous staircase. The Farmers’ Dinner will take place on Tuesday 31st October in the opulent surroundings of Belfast City Hall. This dinner is a great networking opportunity, and a chance to experience this unique venue. The highlight of the Social event, the Gala Dinner, will take place on Wednesday 1st November in the Belfast Waterfront. The Host The event is being hosted by UK-IDF. Led by Dairy UK and AHDB Dairy, UK-IDF acts as a liaison between the UK dairy industry and IDF. “The IDF World Dairy Summit is an unrivalled opportunity for industry experts to share their in-depth knowledge of dairy and bring the audience up to speed on the latest developments in the industry,” says Peter Dawson, Chair of UK-IDF. “It is also an outstanding networking event with hundreds of companies in attendance and unique opportunities to showcase your company and products, tap into a large pool of dairy professionals and reach out to key contacts. For sponsors and exhibitors alike, the IDF World Dairy Summit is the number one event in the global dairy industry.” J

Programme Wide-ranging and engaging, the IDF World Dairy Summit 2017 programme will provide a comprehensive examination of all the major issues making a difference to the world of dairy, as well as insights into how delegates can, in turn, make a difference to the sector’s future. The conference opens on Monday 30th October with the World Dairy Political/Agricultural Leaders Forum. This brand new Forum will provide a platform for the political and agricultural leaders that will shape the sector’s operating environment. This will be followed by the World Dairy Leaders Forum which will see senior company leaders discuss their vision for the sector’s future. The IDF will then showcase its work in the IDF Forum in the afternoon. The parallel conference sessions will then run from Tuesday 31st October to Thursday 2nd November. Friday 3rd November is dedicated to technical tours. FOOD & DRINK BUSINESS EUROPE, OCTOBER/NOVEMBER 2017

I SPRAY DRYING

ESDT – The Spray Drying Solutions Specialist pray drying is the process delivering the bulk of food and dairy S powders into the world markets and produced by a legion of manufacturers delivering to us a diverse choice for almost any products we purchase. The suppliers of food and dairy quality spray drying plant are less numerous limiting competition and choice when it comes to your investment. Purchasers of spray drying equipment generally look for high quality, guaranteed performance, design confidence, experience and cost. Whilst the number of spray drying manufacturers has increased slowly, much of the growth originates from the Asian markets. In their home markets prices are keen but few newcomers currently possess the range of plant or experience to meet the criteria powder processors crave. Spray Drying trend setters within the food and dairy sectors tend to have their routes in Europe but is not necessarily the realm of the massive multi-national enterprises to make an impact. Investing in a new spray dryer is expensive, it is big undertaking requiring comprehensive planning as it generally impacts on areas such as infrastructure, utilities, planning, health and safety to name a few.

ESDT dairy Spray Dryer being installed. It has an evaporation rate of 1300kg/hr and is able to produce a wide range of products including whey.

Cost Saving Opportunities

There are, however, some substantial cost saving opportunities when it comes to purchasing your new spray drying equipment and without sacrificing quality or standards. By widening your scope of suppliers to include the smaller private company’s specialising in this field advantages can be gained. Free form the exhaustive multi-nationals overheads, privately owned enterprises tend to be smaller but can

New generation of Spray Dryer for the small production and product

Keeping spray drying deigns simple and uncomplicated makes them operator friendly and very reliable, there isn’t much to go wrong. This allows us to deliver a product that’s technically advanced, high quality, robust, reliable, delivering high grade powder but easy to understand and operate.

development – ESDT 15 with an evaporation rate of 15kg hr.

FOOD & DRINK BUSINESS EUROPE, OCTOBER/NOVEMBER 2017

We have completely redesigned our small spray dryer models taking full advantage of the latest technnology. Our customers not only get a cost effective drying solution but a very good looking easy to operate spray dryer. One manufacturer’s reaction on operating his new ESDT 5 model spray dryer for thhe first time was simply, flawless.

service we provide, we’re at the end of a phone.” Latest Developments

While the thrust of the business is food and dairy production, the equipment is sold to chemical and pharma manufacturers too. The latest developments have been focused on the small-scale spray drying market, satisfying the testing, product development and the small-scale production of low volume high profit products. Sales Director Gareth Hine states: “We see this as an exciting opportunity. The development of plant in this field has been static for a very long time. We have completely redesigned our small spray dryer models taking full advantage of the latest technology. Our customers not only get a cost effective drying solution but a very good looking easy to operate spray dryer. One manufacturer’s reaction on operating his new ESDT 5 model spray dryer for the first time was simply, flawless.” The first spray dryer in this range was the ESDT 1 a bench lab spray dryer that can be used anywhere with a 13 Amp deliver equally as good products for a subpower supply. All models in the range are stantially lower capital investment. There self-contained solutions supplied as stanare additional benefits too as by their dard with all components (pumps tanks, nature, specialist manufactures tend to give The smallest Spray Dryer produced by ESDT, the ESDT1 and powder collect bins etc.) necessary to a more personal service often with direct is a laboratory bench mounted spray dryer with its own start their spray drying experience. The access to a listening design team who can compressor allowing use anywhere with a 13 Amp power ESDT 1 can now be fitted with a close more easily deliver tailored design to suit supply. It can be fitted with a closed loop for inert circuit option extending its versatility. individual customers. Expanding the range further, while the operations. ESDT 1 has an evaporative performance European Spraydry Technologies of 1.5 kg/hr (with intake air at 200 and One such specialist in the spray dryer field is ESDT (European discharge air at 90 C), larger models have joined the range with evapSpraydry Technologies). ESDT are based in the United Kingdom, orative capacities of 3, 5, 10, 15 and 25kg/hr. has a world-wide customer base and a pedigree spanning some 45 For more complex product development, ESDT produce a multiyears. stage tall form bustle dryer delivering 46kg/hr evaporation capacity The company has a large range of spray dryer designs and the nec- with continuous fluidised bed agglomeration. essary auxiliary plant that extends to include evaporators, fluid beds, Larger machines tend to be bespoke designed accommodating indibag filters and much more to support turn key supply. There is a vidual customers, this small-scale spray dryer range are standard straightforward philosophy within the ESDT best expressed by Chief designs with multiple options for powder collection, venting, industry Designer and ESDT partner Mike Gorsen, who states: “Keeping related finishes and control regime. spray drying deigns simple and uncomplicated makes them operator friendly and very reliable, there isn’t much to go wrong. This allows Outlook us to deliver a product that’s technically advanced, high quality, European Spraydry Technologies is looking forward to the next few robust, reliable, delivering high grade powder but easy to understand years and the growing opportunities opening to them. This year they and operate.” are scheduled to supply dryers into Europe, Middle East and an every ESDT main spray drying product is the tall form spray dryer, sup- growing US market. Gareth Hine continues: “ESDT are well placed plied with or without a fines extraction bustle and in many arrange- to provide food and dairy manufacturers with a perfect partner for ments dependent upon the material to be processed. The tall form is spray drying solutions.” probably the most versatile design on the market being equally at For further information please contact: Gareth Hine, Director of home producing powder across the industrial spectrum. The ESDT Sales on Tel +44 (0)7740 175272, E-mail sales@spray-dryer.com or visit www.spray-dryer.com. J spray dryers design can be traced back to 1972 and has constantly been updated driven by technology, customer requirements and legislation. ESDT are well placed to provide The success of the design can probably be best expressed by the many repeat orders from existing customers which includes many food and dairy manufacturers with a perfect blue-chip companies. Chris Doyle, ESDT partner, says: “In any one partner for spray dryingg solutions. year we can experience as much as fifty percent of production originating from existing customers, most of whom like the close personal FOOD & DRINK BUSINESS EUROPE, OCTOBER/NOVEMBER 2017

ENERGY

ENVIRONMENT

I DAIRY

Anaerobic Membrane Bioreactor + Reverse Osmosis - A Novel Solution For Resource Recovery From Dairy Effluents

Figure 1: Schematic of Memthane Anaerobic MBR + RO plant treating 1500 m3/d of wastewater and whey with a COD load of 15 ton/d.

n dairy production processes, effluent Iconcentrations streams are generated with relatively high of organic matter in the form of carbohydrates, proteins and fats from the milk. Anaerobic biological treatment of dairy wastewaters is a cost-effective, sustainable and proven way of treatment. The main well-known benefits of anaerobic treatment are low energy costs (no aeration required), compactness and renewable energy production in the form of biogas. Whey and left-over product even have a biogas potential of 10-15 times that of wastewater. Produced biogas can partly or fully replace natural gas or other fossil fuel intake in dairy boilers. Less well-known is the fact that anaerobic treatment can facilitate

resource recovery of dairy effluents, by recovery of nutrients and production of a clean water stream suitable for industrial reuse. New Solution Memthane Anaerobic membrane bioreactor (AnMBR) + reverse osmosis (RO) is a new solution developed by Veolia that allows complete anaerobic treatment of dairy effluent and processes it further to reuse quality. Wastewater straight from production (without pretreatment), whey and other byproducts can be handled together in one single anaerobic reactor. The AnMBR facilitates the maximum recovery of biogas while producing an efflu-

ent with very low COD (> 99% of COD removal), no suspended solids but still with high concentrations of soluble nutrients. The RO coupled directly after the AnMBR produces, without aerobic treatment, a premium quality permeate fit for re-use as well as a reject stream with concentrated nutrients that facilitates their efficient recovery. The footprint to the installations is extremely small. The solution has been applied successfully in dairy industry in milk processing and milk powder production and in cheese production facilities. Figure 1 shows a schematic of one of the applications for a flow of 1500 m3/d with a load of 15 ton COD/d. Figure 2 shows pictures of an installation on site. J

Figure 2: Pictures of a full scale installation of Memthane Anaerobic MBR + RO. From left to right: Buffer tank, Memthane reactor, Ultrafiltration system, Reverse Osmosis system.

FOOD & DRINK BUSINESS EUROPE, OCTOBER/NOVEMBER 2017

ENERGY

ENVIRONMENT

I ENERGY MANAGEMENT

Food For Thought – The Rise of the Power Bill s we have discussed and highlighted throughout the Food for A Thought series, market trends predict the rise in industrial power bills over the next few years. What is interesting is it is not the wholesale power price, the base cost of production and supply, which is the principal cause of this cost increase to power bills, but due to the additional balancing, levies and green charges. These additional costs are principally for distribution and green power production. Typically, if the purchase power price was 8p/kWh in 2016 it is likely to be 11p/kWh or greater by 2020. If oil and gas prices rise, then the wholesale power price will also rise, increasing this figure further. The distribution and transmission costs are time of day dependant, typically between 4pm and 7pm, and represent around 15% of the total power supply bill. In addition, another peak time charge will be applied in 2018 to pay for the introduction of the Capacity Mechanism. This ensures electrical supply meets the demand imposed by the unpredictability of renewable generation plants onto the grid. The Green Charges are levied on every kWh used. The principal Green Charges are for the Renewable Energy Obligation (RO) which in 2016 was set at 1.6p/kWh and the Feed In Tariff at 0.5p/kWh. These two charges are anticipated to rise by at least 20% over the next two years. In addition, another green charge for Contract for Difference (to subsidise offshore wind and now DRAX biomass combustion) is set to rise substantially to nearly 1p/kWh by 2020. By 2020 the Green Charges could account for 35% of the total energy bill. As highlighted in the Table, the year-on-year wholesale power price is reducing as a percentage of total cost whilst the grid import balancing, levies and green charges are increasing.

By 2019/2020, the balancing, levies and green charges are expected to account for approx. 59% of the power bill representing almost £60.00 per MWh. Spark Spread Although gas cost has increased slightly over the past year principally due to exchange rate this is not as much as the supply power

price. The ratio between the gas supply price and electricity supply price is called the spark spread. A greater spark spread makes the installation of self-generation of power from gas a more viable prospect. Over the past two years the spark spread has increased from around three to nearly five. Combined Heat and Power The installation of a Combined Heat and Power (CHP) plant will offset the import cost of electricity from the grid, and produce hot water, steam or chilled water from a single natural gas fuelled reciprocating engine. Correctly sized and installed, CHP provides substantial financial savings on utility costs, large carbon reduction and increased security of supply. CHP uses natural gas at extremely high efficiencies, typically up to 85%-90% when compared to conventional means of taking electrical energy from the electricity grid and thermal energy from onsite boilers. In order to correctly size a CHP, several factors must be considered. These are not only the maximum and minimum heat and power demands of the site, but also the rate of their variability. The site must also consider what it is trying to achieve, whether it is to maximise the environmental benefits of CHP, or to maximise the commercial benefits in reducing the site power and heat costs. A CHP installation is usually heat led, and the engine output is modulated in response to the site heat demand. The alternative is to be electrically led, where the generator output is usually at 100%, or if modulated, it is to the site power requirement. If all the heat is not used, it is dumped through the radiators. Generally where the electrical demand exceeds the heat demand, it is thought that to maximise the carbon savings, the CHP would need to be heat led. This means sizing the CHP around the site’s average continuous heat load so that the generator would operate at a high load and not dump heat. Site heat loads can vary significantly and by not sizing the CHP to cover most of the total heat requirement (and potential future expansion) will not guarantee the maximum carbon savings, and certainly will not maximise the cost savings. Currently the carbon CO2 equivalent for onsite produced electricity from a modern high efficiency gas engine is approximately the same as obtaining electricity from the grid. Hence it could be viewed that the overall CHP installation carbon saving is equivalent to the carbon saving from the offset heat production, i.e. the gas or oil fired boiler. This would mean the more heat utilised from the CHP, irrespective if a proportion is dumped, the greater the carbon savings. Knowing this, an electrically led CHP design would in practice save more carbon than a heat led installation. Power is far more valuable to a site than heat, and sizing a CHP to the maximum practical power import avoidance will always be the most commercial option. To discover how you can reduce your energy costs through CHP and self-generation, download our free guide at www.edina.eu/reducing-your-power-bill. J

FOOD & DRINK BUSINESS EUROPE, OCTOBER/NOVEMBER 2017

ENERGY

ENVIRONMENT

I SUSTAINABILITY

Cargill Sets Clear Course For Cocoa Sustainability argill has published its third report on C the progress and achievements of the Cargill Cocoa Promise, its commitment to sparking a more sustainable cocoa sector for generations to come. Building on a decades-long focus on sustainability, the Cargill Cocoa Promise has so far supported more than 145,000 farmers worldwide with market access, training and resources, while working with almost 500 farmer organizations and cooperatives. Now the Cargill Cocoa Promise is continuing to evolve to meet the most pressing needs of cocoa farmers and communities, with the establishment of a future pathway aligned with the UN Sustainable Development Goals (SDGs). “Supporting smallholder farmers to build more resilient and sustainable businesses has been at the core of our own cocoa and chocolate business ethos for over two decades,” says Cargill Cocoa & Chocolate President, Harold Poelma. “But the challenges smallholder farmers face have changed – and our strategy has evolved accordingly. Using the learnings and insights gathered over the years, we have charted a course for the future impact of the Cargill Cocoa Promise.”

Progress This year’s report focuses on progress in the areas of direct sourcing, limiting deforestation, improving traceability and building up the socioeconomic resilience of farmers and their wider communities. Eighty five percent of Cargill’s sustainable cocoa is sourced directly from farmers through farmer organizations and cooperatives. Working with farmer groups enables Cargill to strengthen these organizations’ own internal capabilities, support-

ing them to become more efficient, profitable and self-sustaining. For instance, in 2016-17, farmers in Cote d’Ivoire who implemented the learnings of one-to-one coaching on good farming practices saw their yields increase 49 percent on average. Creating a self-sustaining ripple effect is also the aim of broader community activities, particularly in the area of income diversification, which can help build economic resilience in the face of fluctuating conditions. For instance, through ongoing global partnership with the humanitarian organization, CARE, Cargill has introduced more than 175 village savings and loans schemes through Village Savings and Loan Associations (VSLAs) in Ghana and Cote d’Ivoire. This has helped more than 4,000 people – half of whom are women – obtain small loans to start their own businesses. Cargill is working to entirely eliminate all forms of child labour in the cocoa supply chain and ensure children have a bright future to look forward to. So far, over 145,000 farmers have been trained to understand the worst forms of child labor, and 20,000 children have been provided with access to education and healthcare. Technology is proving an invaluable tool in driving progress, particularly around more accurate and transparent product traceability. Across the globe, GPS-mapping of more than 56,000 farms is boosting provenance information and informing farm development planning. Meanwhile in Ghana, 25,000 farmers have signed onto a scheme that allows us to tag and track each bag of cocoa beans Cargill buys back to the farmer. At the point of delivery, farmers are immediately paid via mobile money accounts. Innovation New innovations have a vital role to play in protecting the planet and the livelihoods of smallholder farmers. Using GPS technology, Cargill conducted a risk assessment of 2.3 million hectares of forest to evaluate habitat type and tree cover loss, as part of its global efforts to eliminate deforestation across agricultural supply chains by 2030. The results serve as a baseline to prioritize interventions and advance sustainable landscape approaches.

Cargill firmly believes that investing in sustainability is an investment in the long-term security of the cocoa supply chain. With this in mind, and building on evidence and experience from the past two decades, the company is expanding its commitment to the SDGs and has charted a clear course for the future with five 2030 Goals in the following areas: * Famer Livelihoods. Cargill will champion professional cocoa farming practices to strengthen the socio-economic resilience of one million cocoa farmers and their communities. * Community Wellbeing. Cargill will enhance the safety and wellbeing of children and families in cocoa farming areas, by eliminating child labor in its supply chain and giving one million families access to basic services. * Protecting Our Planet. Cargill will promote environmental best practices in our business and across our supply chain, working towards zero deforestation in its supply chain. * Consumer Confidence. Cargill will help consumers around the world choose sustainable cocoa and chocolate products with confidence, by ensuring 100 percent farmer-to-plant cocoa bean traceability and 100 percent chocolate ingredients sourced in line with its sustainability code of conduct. * Transformation, Together. Cargill will use the power of partnerships to accelerate and magnify its efforts to achieve a level of sector transformation that cannot be accomplished alone. The 2030 Goals will allow Cargill to think globally, but act locally, using the framework of the SDGs to meet the direct needs of people in cocoa communities in a transparent, credible and measurable way. J

FOOD & DRINK BUSINESS EUROPE, OCTOBER/NOVEMBER 2017

I READY MEALS

Growing Appetite For Ready Meals The increasing consumer demand for convenience and on-the-go food continues to drive the ready meals market.

he global ready meals market, encompassing frozen ready meals, chilled ready meals, canned ready meals, and dried ready meals, is expected to grow at a CAGR of close to 5% between 2017 and 2021, according to Technavio, the international technology research and advisory company. Ready meals have been introduced by manufacturers as an alternative meal that is quick and cost-effective, which just requires heating before consumption. Packaging plays a major role in ready meals sales in terms of retaining the vitamin content, colour, product quality, texture, taste, and shelf life. Vendors are collaborating with packaging manufacturers to develop advanced packaging technology for

national, and local economic conditions, and demographic trends. The increasing competition may lead to vendors reducing their product prices, which could negatively affect profit margins and the overall market growth. “The convenience factor needs to be leveraged by ready meal manufacturers to increase the relevance of their products to consumers, struggling to manage hectic work schedules and busy lifestyles,” says Manjunath Reddy, a lead analyst at Technavio for food research. According to Technavio, the five leading players in the global ready meals market are 2 Sisters Food Group, ConAgra, Fleury Michon, Kraft Heinz, Nestlé and Unilever. Other prominent vendors in the market include Advanced Fresh Concepts, Campbell Soup, Greencore Group, Grupo Herdez, Hormel Foods, Iceland Foods, Iglo Group, JBS, Maple Leaf Foods, McCain, Reser's Fine Foods, Sigma Alimentos, Smithfield Foods, Findus and Tyson Foods. J

their products to capture consumer interest. Biodegradable barrier tray is one such technology that is expected to drive the market as it provides a better alternative to retailers in the form of a lower carbon footprint than the aluminium, PP, and CPET packaging. Frozen ready meals account for about half of the overall market. The main reason supporting the growth of this segment is the growing desire for convenience. Furthermore, frozen ready meals are considered healthier compared to the other ready meals as they do not contain preservatives and are free from microbial attacks, hence the dominance of this segment is expected to continue. Constantly Changing The global ready meals market is constantly changing with the shifting consumer demands and preferences. Vendor performance is largely impacted by changes in consumer spending patterns. It may also be affected by consumer tastes, regional, 28

FOOD & DRINK BUSINESS EUROPE, OCTOBER/NOVEMBER 2017

I TRAYS & TRAY SEALING

Tray Sealing Flexibility – At Your Convenience ccordingly to heat sealing specialists A Proseal, a combination of new product development and competition in the convenience foods market puts pressure on machinery suppliers to provide solutions that maximise speed and efficiencies while maintaining product quality. The introduction of many different products and pack formats is also leading to shorter production runs. As Tony Burgess, Proseal’s Head of Sales and Control Systems, explains: “For tray sealing, as well as the different shapes and designs of trays, we are also seeing a wide variety of sealing requirements in addition to traditional atmospheric sealing, including Gas Flush, Hermetic Shrink, Vacuum, Skin Pack, Skin Plus and Skin Deep. “Nevertheless, one certainty in fast-developing markets is that pack requirements can change very quickly. That is why an element of future-proofing is vital in the development of new tray sealers, so that food manufacturers have the reassurance of knowing that they will have the capability to cope with the latest packing trend without the need to invest in new kit every time.”

Proseal’s Latest GTe Models Proseal’s latest GTe models are able to handle all of the above-mentioned sealing formats and these options can be added at any time. In addition, as the company develops new features in line with customer requirements, it ensures that these can also be retrofitted to models already out on the production floor. The GTe range combines innovative Eseal® electric sealing technology with the many proven functional and reliability benefits of Proseal equipment.

E-seal® provides an energy efficient system that delivers a high-precision seal with an extremely strong sealing force, ensuring every seal has the tightness and reliability to meet the stringent quality requirements of the retail sector. The technology achieves an increase of seal force of 260%, while only consuming 8% of the air of a machine fitted with an equivalent standard pneumatic cylinder to deliver major energy and cost savings. Eseal® also increases machine productivity through shorter seal times, reduces gas flush cycle times and ensures accurate gas flush positioning for enhanced MAP packing. The retention of some pneumatic functions means the machines offer additional benefits such as date coding of pre-printed film. Pro-Motion System Proseal’s Pro-Motion system uses following motion and intelligent buffering technology to enable trays to feed continuously into the sealer without having to pre-sort and adjust pack spacing. This delivers an increase from 15 cycles to 20 cycles per minute, equivalent to an additional 30 packs per minute with a six impression tool. Product handling is improved with fewer lines stoppages due to misplaced trays. The overall performance of the line can be analysed using Proseal’s unique ProVision data collection system, which records any stoppages and provides an accumulated set of data for each connected piece of equipment. This helps production managers and engineers identify recurring problems and develop suitable corrective action. Another advanced feature is the Pro-Tect user login security system, which provides different levels of authorisation access for individual personnel.

World First The Proseal GTe range includes the world’s first semi-automatic tray sealer for skin deep packs, ideal for smaller scale enterprises that do not require a fully automatic inline tray sealer, with compact dimensions that mean it can fit into the smallest of factory spaces. Unlike traditional manual machines where the operator has to wait for each tray to be sealed, the rotary operation of the GTR-e allows a new tray to be loaded while the previous one is being sealed, delivering higher speeds and efficiencies.

A GTR-e has been installed at Rhug Estate, an award-winning organic farm in Denbighshire, Wales, where cutting plant manager, Gary Jones comments: “We needed a tray sealing machine that would ensure our high quality meat was both presented and protected effectively, in order to reach our customers in premium condition. “With limited space available in our packing operation, we approached Proseal to help us come up with an appropriate solution. The GTR-e meets our requirements, and we have been delighted with the high standard of service from Proseal and the reliability and efficiency of the machine.” J

FOOD & DRINK BUSINESS EUROPE, OCTOBER/NOVEMBER 2017

Please visit us on stand 08.0L57on 28 - 30 November 2017

Fi Europe & Ni 2017 – 28-30 November 2017 – Messe Frankfurt, Germany eturning to Frankfurt, the world’s leadR ing food and beverage ingredients show will be bigger than ever when it opens its doors on 28 November. With its new ‘Expo FoodTec Content Hub’, amongst other highlights, the event will attract more visitors than before. Fi Europe & Ni 2017 is the must attend event on the calendar of virtually everybody who works in the food, beverage and ingredients industry. This year, it will be the biggest show to date: With a record num-

ber of exhibitors, a 4-day conference programme focused on thought leadership and new sections and initiatives, organiser UBM EMEA expects the event to attract more visitors than ever before, and is ensuring they are senior professionals with considerable purchasing power. Four halls spanning 65,000 square metres of exhibition space will give more than 1,500 suppliers a stage from which to showcase every conceivable food and beverage ingredient sourced from all over the world, including a vast range of functional and organic raw ingredients. Traditionally, suppliers use the global industry’s leading event to introduce their innovations to the market. Exhibitors and visitors will also benefit from the new Expo FoodTec Content Hub in the Expo FoodTec pavilion, uniquely focused on ingredient processing and packaging solutions for the Food & Beverage industry. The Expo FoodTec Content Hub is the hotspot where speaker sessions, presentations and videos from leading experts and associations will offer priceless insights into new

developments in F&B processing and ingredients packaging. Across the event, visitors will be able to explore state-of-the-art innovations as well as current food and beverage trends and developments. The Industry Insights Theatre will focus on current major con-

again to Fi Europe. And finally, the Fi Innovation Awards will introduce a number of new categories to celebrate innovation in the industry. “Visitors to this event expect excellence and innovation,” says Brand Director Richard Joyce. “And to make sure they do not miss the most exciting news this year, we have organised special Innovation Tours with industry experts from Nutrimarketing, as well as self-guided tours.”

sumer trends influencing the global food and beverage market. Supplier Solutions Sessions will see top-level suppliers showcase their latest ingredients innovations, while the Start-up Innovation Challenge will create a platform for cutting-edge innovations from the industry’s most exciting start-up companies. The New Product Zone, organised in cooperation with Innova Market Insights, will return once

4 Days of Thought Leadership Fi Europe conferences offer an excellent opportunity to find out what leading food & beverage industry experts are thinking, working on and interested in. For 2017, UBM EMEA has announced a programme covering four full days of knowledge sharing and networking opportunities. One day before the show, on Monday 27 November, the Fi Future of Nutrition Summit will bring together independent food pioneers to explore cutting-edge innovations in nutrition. From Tuesday 28 November to Thursday 30 November, the Fi Conference will offer in-depth insights into the issues shaping the food and beverage landscape through a mix of keynote presentations, panel discussions and masterclasses. Topics covered will include: Clean label & Natural ingredients; Food safety & Regulatory compliance; Everything Protein; 2Health & Wellness; Life Stages; Category Innovation (Dairy, Bakery and Beverages); Reduction & Reformulation; and Sustainability.

FOOD & DRINK BUSINESS EUROPE, OCTOBER/NOVEMBER 2017

Women’s Networking Breakfast On Wednesday 29 November, the Women’s Networking Breakfast will bring together inspirational women from all areas of the food industry and beyond to share their insight, knowledge and experience on topics covering innovation, entrepreneurship and women’s excellence in the food & beverage industry. Messe Frankfurt – A Perfect Venue Having last been held in Paris in 2015, the biennial event returns to Messe Frankfurt, Germany, for 2017. With its international airport and central location, Frankfurt is a central hub for visitors from all over the world. “Germany is the largest food and beverage retail market in Europe,” continues Richard Joyce, “and Frankfurt is the perfect venue for this truly impressive event: We are expecting around 25,000 visitors from more than 125 countries worldwide.” Flagship exhibitors will include global powerhouses such as ADM, BENEO,

Brenntag, Cargill, DSM, Friesland Campina, Gelita, Kerry, Naturex, Roquette and Symrise, as well as leading European food and beverage manufacturers such as Barry Callebaut and Lactalis. Visitors can also look forward to exploring niche suppliers with an immense number of exciting ingredients. Fi Europe & Ni is

FREE to attend when pre-registering online before the show. Early bird prices for the conference start at Eur450 for a One Day Pass and Eur900 for a Full Access Pass for the complete Four-day programme. For further information visit www.figlobal.com/fieurope/visit/register. J

I FIE 2017 PREVIEW

Arla Foods Ingredients Highlights Whey Protein’s Role in ‘Nutrition For Life’ hey protein supplier Arla Foods W Ingredients is set to unveil a campaign called ‘Nutrition For Life’ at this year’s Food Ingredients Europe. Exhibiting on Stand 08.0C41, Arla Foods Ingredients will showcase how whey protein delivers important health benefits to people at all stages of life, from babies and toddlers, through to seniors. The new campaign places a particular focus on applications in paediatrics, health foods and medical nutrition.

Taking centre-stage will be innovative whey-based ingredient solutions created for the complementery feeding and blood sugar control categories. The new concepts will highlight the potential for developing products that provide excellent taste, convenience and nutrition at different life stages. Manel Romeu Bellés, Marketing Manager at Arla Foods Ingredients, says: “Whey’s unique selling point is that it can be used to create ingredients that support consumer health from infancy to adulthood and right through to retirement and beyond. Food manufacturers are in the perfect position to harness this strength, and help consumers manage their health with tasty products made with whey-based ingredients that deliver targeted nutritional needs at each life stage. At FIE 2017, through Nutrition For Life, we will be telling

the stories about how this can be done using our portfolio of high quality whey protein ingredients.” Arla Foods Ingredients is a global leader in value-added whey solutions. We discover and deliver ingredients derived from whey, supporting the food industry with the development and efficient processing of more natural, functional and nutritious foods. We serve global markets within early life nutrition, medical nutrition, sport nutrition, health foods and other foods and beverage products. Five reasons to choose Arla Foods Ingredients: * Arla Foods Ingredients has R&D in its DNA * Arla Foods Ingredients offers superior quality * Arla Foods Ingredients is your trusted business partner * Arla Foods Ingredients supports sustainability * Arla Foods Ingredients ensures security of supply. Arla Foods Ingredients is a 100% owned subsidiary of Arla Foods. The head office is in Denmark. J

FOOD & DRINK BUSINESS EUROPE, OCTOBER/NOVEMBER 2017

Uelzena Ingredients at Gulfood Manufacturing and FiE elzena Ingredients is a business unit of the Uelzena group and offers a broad U range of milk-based food ingredients. All

products, baked goods, ice cream and delicatessen. • Uelzena Ingredients will be exhibiting at Stand S1-D47/German Pavillon in Sheik Seeed Halls at Gulfood Manufacturing. • Uelzena Ingredients will be exhibiting at Stand 08.0J49 in Hall 8 at FIE in Frankfurt. For further information contact info@ingredients.uelzena.com or visit www.ingredients.uelzena.com. J

products are produced in group-owned production plants in Northern Germany. Uelzena Ingredients are distributed by the headquarter Uelzena eG as well as Uelzena’s subsidiary company WS Warmsener Spezialitäten GmbH, a specialist for sweetened condensed milk. The product portfolio includes low heat and medium heat skimmed milk powder, sweet buttermilk powder, butter, anhydrous milk fats and sweetened condensed milk. Uelzena eG and Warmsener Spezialitaten GmbH hold all the necessary certifications and most of the products are certified according to kosher and halal requirements. One of Uelzena’s strengths is the broad range of filling and packaging options for industrial and export needs that range from small containers weighing 10 kg to entire tank truck loads. Uelzena supplies large branded manufacturers of confectionery

FOOD & DRINK BUSINESS EUROPE, OCTOBER/NOVEMBER 2017

I FIE 2017 PREVIEWS

Almonds Provide Inspiration and Innovation at Food Ingredients Europe lmonds are the number one nut in new A product introductions in Europe for the second year in a row. To learn why join the Almond Board of California at Food Ingredients Europe (FiE) in Frankfurt this November. Get the latest research on nutrition, quality, sustainability and consumer demand. On the scientific program, Dr. Karen Lapsley, Chief Scientific Officer at Almond Board of California (ABC) will be taking part in two panel discussions: • Sustainability: ‘Is the food industry doing enough to support sustainability?’ Dr. Lapsley will touch upon the journey the almond community is on to becoming zero waste.

• Health & Wellness: The panel will discuss ‘how can F&B companies develop products to meet the ‘healthy convenience’ trend?’ With Dr. Lapsley offering insight into how almonds’ key role as a versatile, natural product are perfect for the growing

healthy convenience market. Learn more about almonds at booth 09.0G6, in the US pavilion. Sign up for a CASS session (California Almond Solution Session) to gain insights and inspiration into almond versatility and how incorporating almonds into snacking products delivers consumer satisfaction. Either drop-in or book an appointment. To book a CASS session, email FoodProfessional@AlmondBoard.com. The Almond Board of California team will be joined by leading food innovation Chef, Stephan Schmitz. Chef Schmitz will be bringing to life the latest consumer, trends and the flavour and versatility of almonds through a range of innovative snacking solutions. J

GEA Technology and Expertise on Show EA, supplier of world-leading process G solutions and components for demanding production processes, will be presenting

during the international fair Food Ingredients Europe (stand 08.0Q5) in Frankfurt from November 28-30, 2017 the company’s range of technology for the manufacture of food ingredients, freeze-dried food and coffee. The technology includes high-shear mixing, a wide range of dryers (solid feed drying, spray drying, fluid bed drying and freeze drying) and fully-integrated process lines, all designed to meet the industry’s strictest requirements for hygienic design, product quality, plant efficiency and safety, and sustainable production. GEA’s expertise spans every stage of food ingredient processing from reception and bulk handling through liquid and powder processing, automation and packaging services. The stand will feature GEA’s trusted MOBILE MINOR® R&D spray dryer, designed to produce small-volume powder samples that can be faithfully scaled up to production volumes. This flexible and easyto-handle spray dryer has become standard equipment in the R&D departments of many leading manufacturers, independent research institutes and universities worldwide. Its inclusion on the stand will allow GEA to explain the processes involved and demonstrate how the company can help customers achieve their objectives. Focused on Customer Benefits But the GEA stand at Fi Europe will be about much more than technology. It’s the way in which GEA uses its experience to

apply the technology in creative and innovative ways that is key. Whatever the complexity or scale of process line or plant, GEA’s industry experts, technical specialists and project managers work with each customer at every stage to tailor the right solution, from initial consulting and planning through to installation and commissioning. By calling on the combined expertise of the whole Group, GEA works with customers to help them refine existing processes and develop new products that can be brought to market quickly and profitably. Using its test centers in Denmark, Germany and the United States, GEA gives customers the opportunity to experiment with real equipment before investing in production lines, thereby helping to ensure the security of outcome right from the start. Solutions For Vegetable Protein Manufacturing Sarah Veelaert, Process Engineer at GEA, will present an insight into the latest developments in the production of vegetable proteins entitled: ‘Vegetable protein powders for high-performance dispersibility‘. During the presentation Sarah Veelaert will focus on activities to develop process solutions for vegetable protein manufacturing with special emphasis on design of the GEA spray dryer to generate powders with an improved dispersibility, in particular for use in protein drinks. The seminar will take place on Wednesday, November 29, 2017, 03.00–03.30 pm. J

FOOD & DRINK BUSINESS EUROPE, OCTOBER/NOVEMBER 2017

I FIE 2017 PREVIEWS

Taura to Showcase Sugar-reducing Powers of Fruit and Vegetable Pieces atural fruit and vegetable pieces are the ideal way to reduce added sugar withN out compromising on taste, Taura Natural Ingredients will demonstrate at Food Ingredients Europe. The global ingredients company uses unique URC® (Ultra-Rapid Concentration) technology to create real fruit and vegetable pieces, flakes and pastes. At Food Ingredients Europe it will demonstrate that its solutions offer the perfect way to reduce added sugar in applications such as baked goods and cereals. Visitors to Taura’s stand (No. 11.0F98) will be offered a 30% reduced added sugar cookie containing the company’s real fruit

pieces. They will be able to compare it with a full-sugar cookie and a reduced added sugar cookie without fruit pieces. Peter Dehasque, Group Chief Executive Officer, Taura Natural Ingredients, says:

“Reduced sugar products are increasingly common but they often leave consumers disappointed. Our unique fruit pieces are the ideal way to cut added sugar while still offering a fantastic flavour and texture experience. When people visit us at FIE they will see and taste first-hand that we offer perfect, natural, clean label solutions to the challenge of reducing added sugar.” The company will also be highlighting innovative flavour concepts that combine sweet and savoury flavours, including a mango chutney piece consisting of mango and spices. It will also showcase savoury versions of traditionally sweet products. J

Carbery and Synergy Showcase Innovation in Nutrition and Flavour Solutions t FiE 2017, leading whey protein A provider, Carbery, and its flavours division, Synergy, will showcase their unique joint expertise in delivering advanced nutritional and flavour solutions at stand Q65 in Hall 8. Carbery will be highlighting the latest addition to its successful hydrolysed whey protein range, Optipep®, which has been specially formulated for use in protein bars, where it delivers a softer texture throughout shelf life. Synergy will be showcasing its new signature cold brew coffee, which is typically brewed at 4 degrees C and is distinctly different from hot coffee brewed in a coffee machine. Naturally sweet and highly concentrated, Synergy’s cold brew coffee

is on trend with the growing retail and foodservice markets. As well as raspberry and white chocolate Optipep bars, visitors to the stand will also have the chance to taste highprotein ready-to-drink (RTD) beverages, protein water with new refreshing cooling flavour combinations such as cucumber and apple, a high-protein berry smoothie and soft-serve protein ice-cream with warming flavours such as gingerbread biscuit. The concepts on show will highlight how Carbery and Synergy are able to marry their joint expertise in nutrition and flavour to help food manufacturers deliver high quality protein enriched foods with broad consumer appeal.

On day November, team will be the Mintel 15.45. J

2 of the show, 29th the Carbery and Synergy hosting a presentation from market insights team at

IOI Loders Croklaan at Fi Europe 2017 t Fi Europe 2017, IOI Loders Croklaan A (Hall 8, Booth J27) will exhibit its innovative Oils & Fats portfolio highlighting two lines. Couva® Cocoa Butter Replacers deliver non-hydrogenated coating solutions that provide excellent sensory properties and support extended shelf life. They help improve productivity, and have an excellent cocoa butter compatibility. The new shea- and coconut-based filling fat line offers sustainable, reduced saturated

fat advantages. These unique, patented

blends meet food manufacturer requirements for non-temper applications, at less than 40% saturated fatty acid content. They are ideal for creating indulgent deserts, spreads, pralines, wafers or countlines, without compromising on flavour. The company will also showcase its Fi Innovation Award submissions: Creamelt® 600 LS, a low-saturated filling fat, and a new shea-based shortening in the Presdough® range, ideal for increasing puff in raised bakery products. J

FOOD & DRINK BUSINESS EUROPE, OCTOBER/NOVEMBER 2017

I FLAVOURS

Repeatability is Key For Flavour Producers Efficiency, productivity and whole of life costs are key parameters in any industrial activity. But here GEA demonstrates why, when manufacturing flavours, itâ&#x20AC;&#x2122;s repeatability that is king. plants producing 300-400 different flavours on the same machinery, ranging from delicate fruits to pungent spices, each with a different recipe, not just for ingredients but for the method of production as well, life in the flavour factory can get complicated. The constant evolution of equipment from suppliers might be all very well in the name of efficiency, but the flavor manufacturer might not want to take the risk, preferring to stick with what he knows. Bringing Skills Together

The ultimate goal is to create a flavour that mimics, as closely as possible, the real thing. (Pic. GEA).

very business needs to maximize proE ductivity, minimize costs and operate as efficiently as possible. But when manufacturing flavours there is something of a switch in emphasis in favor of flexibility and repeatability and, although efficiency is just as important as in other sectors, the factors that combine to achieve it, are unique. The ultimate goal is to create a flavour that mimics, as closely as possible, the real thing. Once a company has achieved the optimum recipe, it does not want any variation. Yes, manufacturers want to use the most advanced equipment and to produce in an efficient, environmentally sustainable way, but mostly they just want to ensure their product is the same as it always has been. Customers know what is required from the ingredients in their own products to maintain consistency and their own unique appeal. If they cannot rely on the consistency of their ingredients, they cannot adequately control the quality of their own output. Whatâ&#x20AC;&#x2122;s more, variations in the flavour of ingredients make their own product innovation diffi36

cult and stifles creativity. Repeatability is Process Driven

But itâ&#x20AC;&#x2122;s not just the combination of raw materials that contributes to the flavour and aroma of a product; the manufacturing process followed to achieve authenticity can be just as critical. Any variation in method can cause variations in a product that, for many companies, are unacceptable. When producing flavours there is much opportunity for something to go wrong. An ingredient added too quickly into a mixing vessel, inconsistent temperature, insufficient mixing or incomplete homogenization can all have an effect further downstream that affects the outcome. When consistency is the aim, that really matters. Similarly, variations in oil droplet size, shearing or drying parameters can all have an effect that in some subtle way alters the product. Producing Multiple Products

All these parameters are critical to producing a consistent product, but with some

Flavour manufacturers understand their craft very well. They know what combinations of raw ingredients will create the perfect essence. But, just as the conductor of an orchestra might have an intimate knowledge and appreciation of a piece of music but relies on his musicians to create the sound he wants, so do manufacturers require specific expertise to bring their ideas to reality. Engineering For Consistency

It is for this reason that GEA has recently launched a new optimized production line concept that takes flavour manufacture from the handling of raw materials right through to final packaging. With the whole process controlled, automated and optimized, the opportunity for variation resulting from human error is virtually eliminated. The company has used all its 50 years of experience in the production of mixing, pumping, homogenization, drying and handling equipment to bring them together to provide the consistency its customers demand. The new GEA integrated line controls all the individual unit operations precisely and, by doing so, controls the output. But repeatability is not just a question of adjusting a computerized control system. Achieving a consistent product also requires very precise engineering to allow

FOOD & DRINK BUSINESS EUROPE, OCTOBER/NOVEMBER 2017

the component parts of the line to work together in harmony. For example, feed systems must be calibrated specifically to match the capabilities of the mixer; the size of the mixer must be scaled precisely with the size of the dryer to ensure compatibility; and then there is the CIP (Clean in Place) system that is needed to provide much more than mere hygiene. Cleaning to Remove Odours

Any production system can be cleaned effectively to meet hygiene regulations. But, as every flavour manufacturer knows, that’s not the whole story. Flavours and aromas can linger in equipment even after they have been cleaned to the most scrupulous hygiene standards. Any residue of the previous flavour can easily taint the next product, destroying the all-important consistency. To prevent this, GEA has done much more than provide an efficient rotating-ball cleaning system. Getting the Design Right

Machines, pipework and valve systems have been carefully designed by GEA to eliminate sharp edges or dead areas in which even the smallest quantity of product could become trapped; materials have been carefully chosen to provide smooth internal surfaces to which product cannot adhere; and the size of cleaning fluid tanks has been calculated to ensure that they

hold precisely the right volume of medium to clean the whole system efficiently in less than four hours; even gasket materials have been chosen to ensure that they do not harbour traces of product. These elements combine to ensure the efficiency of the CIP system making it scrupulously efficient and enabling fast product changeover, reduced downtime, minimal waste and low use of water and detergents. Sequenced Production

There is also another key factor in maintaining repeatability. When producing multiple products on the same line it is critical that products are processed in the correct sequence to help prevent any tainting from one to the next. Purer flavours such as melon or strawberry, that are instantly recognized by consumers and are often consumed on their own, take precedence. Stronger flavours such as orange, garlic, chilli, curry, etc., that are usually mixed with dishes, come later. The control system on the line must be capable of not only managing the recipe for each product, but sequencing the production for maximum efficiency ensuring that after each operation the line is cleaned sufficiently,

but no more. Deep cleaning can be performed at the end of the sequence before the program begins again. This also helps to minimize the use of chemicals and water and reduces plant downtime. Not all flavour producers require this level of control over their manufacturing systems. However, those producing expensive flavours most certainly do and as producers increasingly become protective of their brands and consumers become ever more discerning, the quality and repeatability of their ingredients become still more important. For further information contact Henrik Stillhoff Nielsen, GEA Process Technologist, on Tel +45 41748134, Email henrik.nielsen@gea.com or visit ww.gea.com. J

I FLAVOURS

Sharwood’s Spices Up the Convenience Channel With New Authentic Flavours remier Foods is investing in the conP venience channel with its Sharwood’s brand by launching new, authentic Chinese and Indian flavours in its popular pouch format. With 60% of all grocery spend coming from single person or two people households , the new modern pouch format will serve two, appealing to non-family occasions and shoppers looking for easy meal solutions. Featuring in 92% of UK households , the cooking sauces category is extremely popular with shoppers, so brands need to stay on trend with new flavours to keep people interested. Sharwood’s has launched its authentic flavours in this format as consumers perceive pouches to be modern and up-to-date, with the brand providing a clear point of differentiation in a category proliferated with

jars, especially in the convenience sector. Yilmaz Erceyes, Brand Director of Cooking Sauces, comments: “A quarter of people think that there are not enough trendy flavours in the cooking sauces category . We wanted to offer a variation with more regional and authentic recipes such as our Kashmiri Creamy Curry and Shanghai Sweet Soy to add excitement. As a customer favourite, Sharwood’s is perfectly placed to meet shoppers’ needs for more convenient, modern formats.” Sharwood’s Chinese pouches will be available in Shanghai Sweet Soy, Cantonese Sweet BBQ, Szechuan Chilli Bean and Hunan Smokey Chilli while the Indian Pouches will offer Kashmiri Creamy Curry, Keralan Coconut Curry and Spicy Goan Curry flavours and all will have an MRSP of £1.99. J

FOOD & DRINK BUSINESS EUROPE, OCTOBER/NOVEMBER 2017

I MIXING & BLENDING

High Shear Mixing Experts or processors that work with proF teins, starches, gums, vitamins, and flavourings, the Rotosolver high shear mixer is a must-have. This workhorse makes light work of all types of ingredients and with thousands of installations around the world in food, beverage, dairy, condiments, and meat and poultry manufacturing facilities, Admix continues to set the global standard in mixing applications for every industry. Improving Your Process

For 100% wetting out of powders and an easy-to-clean design that meets strict sanitary requirements, the Rotosolver high shear mixer is an industry leader. The Rotosolver’s design offers high intensity, high-speed batch mixing, improved dispersion, and reduced energy consumption for volumes up to 10,000 litres. For benchtop testing, the BenchMix lab mixer helps processors test, scale up and go to market faster with a process assurance warranty. “The Rotosolver outperforms our competitors in many key performance areas,” according to Bjarne Buchert, General

Manager of Admix Europe ApS. “It delivers up to 50% less energy consumption, up to 600% higher flow rates, 20% higher tip speeds, and around six times more throughput than conventional high shear mixers. Our customers couldn’t be happier with the process results they’re getting.” Innovative, Energy-Saving Design Receives US Patent

Recently, Admix received a United States patent for the Rotosolver design. As part of a commitment to its customers, continuous improvement, and providing the most advanced technology in fluid mixing, milling and powder induction equipment, the Admix Innovation Team made design enhancements to the Rotosolver as a topentry high flow, high shear mixer and in June it was granted a US patent with others pending globally. The updated Rotosolver produces equal process results, but offers significant energy cost reductions, saving customers money and BTU input.

quently talked about his satisfaction: "The Rotosolver performance was excellent, and the xanthan gum was thoroughly mixed to a perfect consistency with no fisheyes in about 7-8 minutes, compared to HOURS for a 325-gallon batch. This result came even after incorporating another granular preservative with the xanthan gum.” The plant's quality manager was also impressed with the Rotosolver, adding he had never seen such a thorough, speedy dissolution of xanthan gum. Along with this case study, Rotosolver has also been used in hundreds of other applications involving thickeners and cellulose gums, like CMC. See Rotosolver in Action!

Are you looking for faster mixing results? View a short lab video at www.rotosolver.com to see the Rotosolver in action on xanthan gum, or get a Rotosolver quote today for your specific process and speed your way to better results and improved ROI at www. admix.com/quote. Alternatively, you can get free lab testing at its pilot plant in Denmark by visiting www.admix.com/lab. J

Mixing Xanthan Gum: A Case Study in Speed & Efficiency

As an industry leader for decades, the Rotosolver has received countless testimonials for its speed and ability to completely mix the most challenging ingredients. The accolades keep rolling in thanks to its newly patented technology, which offers even lower power consumption and improved, faster powder dispersion. One case study came from a North American co-packer that was struggling with a difficult formula involving the dispersion of xanthan gum. After experimenting with other solutions, the customer finally installed a Rotosolver and subseFOOD & DRINK BUSINESS EUROPE, OCTOBER/NOVEMBER 2017

I MIXING & BLENDING

FKM Ploughshare Batch Mixer From Lodige hether the material you need to W process is powdered, granular or fibrous, when it comes to the preparation of bulk materials, FKM series Ploughshare® batch mixers from Germany-based mixing experts Lodige provide the answer. The machine allows excellent mixing results to be achieved in a very short time - with a high level of batch reproducibility. A low-maintenance mixer concept and easy access to the mixer's inner parts guarantee maximum availability. The Ploughshare® mixer uses the mechanically generated fluid bed process developed by Lodige. Special mixing tools are arranged systematically on a shaft to achieve a three-dimensional movement of the mixing material. Thanks to this intensive yet gentle product movement, bulk products can be mixed extremely quickly and evenly. Depending on the mixing application, various equipment options are available for the mixers of the FKM series. Thus, the mixing performance of the mixing elements can also be supported by separately driven, high-speed rotating chopper heads. These

In the FKM special mixing tools are arranged systematically on a shaft to achieve a threedimensional movement of the mixing material, known as a mechanically generated fluid bed.

combine with the mixing tools to enable the dispensing of agglomerates, as well as targeted granulation during the process. Further equipment options include a jacked drum and side walls and a hollow shaft for heating or cooling if required. Lodige also offers various options for adding liquids. The optimum solution depends on the application and recipe-specific requirements. It is also possible to pre-

pare products suitable for pumping. In addition, the mixer can be equipped with highly durable surfaces, high-strength structural steels, stainless steels and special materials. Depending on the production volume and the application in hand, machine sizes between 130 litres for small batches and 30,000 litres for large production projects are available. Smaller machines with capacities between 5 and 50 litres are also available for laboratory applications. Typical mixing times for dry recipes are about 1-3 minutes. One of the advantages of Lodige Ploughshare® mixers is that these mixing times vary little between the various machine sizes. The mixer is fed from above. In smaller, mainly manually operated mixers this involves a large manual access point. In the case of automated production systems, the raw materials come from upstream silos, scales or similar dosing equipment and arrive in the mixer via one or more pipes. The mixer is discharged from the bottom of the drum. For further information visit www.loedige.de. J

Tna Launches New Turnkey Blending System For Dry or Wet Products na has launched a new turnkey vibratory motion blending sysT tem to accurately mix multiple dry or wet products. The tna roflo® VMBS 3 combines speed, continuous vertical motion and mass flow technology to deliver exceptional blend accuracy, precise recipe control and reduced ingredient costs. Suitable for both dry and wet environments, the tna roflo VMBS 3 can blend a wide range of products, including baked and fried snacks, nuts and dried fruits, pet food, pasta, cereals and gummies, but is also ideal to mix fresh and frozen products like salads or frozen vegetables. Incorporating tna’s renowned weighing technology with an integrated load cell, the tna roflo VMBS 3 ensures that each ingredient is measured to the highest level of accuracy, delivering maximum system precision and superior control over both recipe and costs. Each integrated ingredient input module (IIM) of the tna roflo VMBS 3 features a highly compact design, comprising an infeed conveyor with hopper, control conveyor and weigh conveyor, offering some of the smallest factory footprints. Depending on the individual requirements of their recipes, manufacturers can combine up to 22 IIM modules, all of which are centrally controlled by a single controls system. As such, the tna roflo VMBS 3 works with just about any production layout and in any configuration for complete operational flexibility. The tna roflo VMBS 3 is suitable for a variety of infeed meth40

ods, including manual or bulk or directly connected to the processing line. Output can be fed onto a variety of distribution systems, including tna roflo vibratory, horizontal or belt conveyors. To find out more, visit www.tnasolutions.com/product/product/tna-roflovmbs-3. J

FOOD & DRINK BUSINESS EUROPE, OCTOBER/NOVEMBER 2017

I INNOVATION

Tetra Pak Launches Pioneering Ice Cream Extrusion Line For Medium-sized Producers etra Pak has launched an ice cream T extrusion line that promises unparalleled product quality and volume flexibility for medium-capacity producers. In an industry first, the new line uses an independently controlled horizontal cutter to slice the ice cream as it emerges from the extruder. This

patented technology means the cutting speed stays consistently fast, irrespective of the line speed, ensuring a precise, clean cut even at low rates of production. By programming the cutter to operate at different speeds and movements, ice cream producers can also switch between multiple products on the same line, be they sticks, sandwiches, cones, wafer cups, candy bars or cakes, while maintaining the highest possible quality. With a capacity range of 5,000 to 18,000 products per hour, the line offers much-needed volume flexibility to mediumsized producers, allowing them to increase or decrease output without compromising efficiency.

Elsebeth Baungaard, Product Manager at Tetra Pak, says: â&#x20AC;&#x153;A surge in competition in the global ice cream market has increased pressure on medium-sized producers. They must be more agile in responding to consumer needs, producing greater varieties of products at smaller volumes, while maintaining a high-quality standard and low production costs. This line has been designed to meet exactly these requirements. In addition, customers of the new medium capacity extrusion line will have access to our Product Development Centre in Denmark. Here they can experiment with recipes, seek advice from food technician experts and access training. They will also receive 24/7 technical support to ensure any issues are resolved with minimal downtime.â&#x20AC;? J

FOOD & DRINK BUSINESS EUROPE, OCTOBER/NOVEMBER 2017

See us at Gulfood, 76, stand Z3 C ov -N st 31 t c O 17 20 , 2nd

See us at Gulfood, stand Z3 C 76, Oct 31st-N ov 2nd, 2017

I CEREALS

High Demand For Convenience Drives Growth in Global Breakfast Cereals Market The global breakfast cereals market is expected to exceed US$36 billion by 2021.

he market is categorised into two major product segments - hot cereals and ready-to-eat cereals – with the latter accounting for more than 86% of the market share in 2016, according to Technavio, a leading global technology research and advisory company. In its market report, Technavio covers the outlook and growth prospects of the global breakfast cereals market for 2017-2021. “The major driving factors include the evolving taste preferences of consumers, increasing number of marketing initiatives around breakfast cereals, premiumisation, and changes in lifestyle,” explains says Akash Pandey, a lead food research expert at Technavio. “Owing to the busy lifestyle, consumers are skipping the traditional sitdown breakfast and looking for quick and healthy forms of breakfast favouring the adoption of breakfast cereals.” Technavio’s research analysts segment the global breakfast cereals market into three regions: Americas, EMEA and APAC. The Americas The consumption of breakfast cereals remains high in the Americas, due to the greater nutritional benefits associated with hot cereals when compared to ready-to-eat cereals. More than 58% of consumers eat hot cereals. Owing to their busy lifestyles, many consumers prefer on-the-go food consumption or away-from-home food consumption. Consumers are showing a preference for alternative choices such as cereal bars, yogurts, and others for breakfast cereals. This tendency is a challenge for the breakfast cereal market in the Americas. Consequently, manufacturers are investing in new marketing activities to introduce newer breakfast cereals that include more nutritional value. Manufacturers who offer product lines for on-the-go consumption have more chances of gaining a good market share, as consumers are increasingly demanding portable foods. For example, McCann’s (a brand from World Finer Foods) Artisan line of oatmeal packets are portable and

can be cooked with only hot water. For instance, McCann's Irish Oatmeal, made from creamy rolled oats, takes less time to cook. Hence, the brand is successful in meeting the consumer demand for convenience foods.

mix their own cereals online. There are more than 120 muesli ingredients, of which more than 90 are organic. Consumers can choose their favourite ingredients and make breakfast cereals by themselves.

Breakfast Cereals in EMEA The breakfast cereals market in EMEA is growing due to factors such as new product launches, focus on investments, increase in product innovation and customisation. The UK and Germany are the top contributing countries with respect to market growth. The market is expected to continue growing, as there are many interesting product innovations scheduled in the EMEA. Manufacturers are tweaking their product formulations and coming up with a variety of breakfast cereals that match with local preferences. Innovations in packaging are also contributing toward the growth of the market. Some companies even offer customisable cereals to consumers. For example, The Cereal Club UK, a Germany-based company, offers options for consumers to

APAC Market APAC is the fastest growing market for breakfast cereals. The increasing demand for healthy ready-to-eat breakfast is fuelling market growth. Many doctors and nutritionists recommend the intake of breakfast cereals as opposed to traditional breakfast items. The increasing awareness about cardiovascular diseases, diabetes, and obesity is influencing the purchasing decision of consumers. Consumers in developing countries such as India, Malaysia, Indonesia, and others are increasingly choosing Western diets due to the increased rate of urbanisation. Companies such as Kellogg, Bagrry’s India, and Quaker Oats are the top manufacturers of breakfast cereals in India. Hot cereals are highly favoured over cold cereals due to the traditional breakfast preferences of Indians. J

FOOD & DRINK BUSINESS EUROPE, OCTOBER/NOVEMBER 2017

I CEREALS

Cereal Partners Worldwide to Adopt Colour-coded Labelling on Nestlé Breakfast Cereals in the UK

estlé breakfast cereals in the UK will N begin to carry the UK Government’s colour-coded labelling from October. The full roll out is expected to be completed by early 2018, according to Cereal Partners Worldwide (UK), which makes Nestlé breakfast cereals. Cereal Partners Worldwide (UK) is a joint venture owned by Nestlé and General Mills. Gharry Eccles, UK Regional Vice President of Cereal Partners Worldwide

(CPW), says: “We are proud to offer consumers nutritious and tasty cereals to enjoy every day. We have provided consumers with clear nutritional information in a monochrome format on front of pack for many years. The decision by CPW to adopt colourcoded labelling in the UK aligns the Nestlé cereals range with what has become the common UK labelling scheme. It is also in line with other Nestlé products in this market, providing consumers with a consistent approach to nutrition labelling in the UK.” Stefano Agostini, CEO of Nestlé UK & Ireland,

comments: “Nestlé UK has been a long standing supporter of the colour-coded nutrition labelling scheme ever since 2013 when it was adopted on Nestlé wholly owned products. It has always been Nestle’s ambition to see the UK Government scheme on all Nestle branded products in the UK.” Earlier this year, it was announced that Nestlé breakfast cereals would see a reduction of a further 10% in the average sugar content across the range by the end of 2018, in addition to the 15 percent reduction already achieved since 2010. J

I BEVERAGES

Truly Yours Shakes – A Tasty and Nutritious Addition to a Well-balanced Diet and Active Lifestyle ruly Yours Shakes are long life milk T drinks which are Lactose Free, High in Protein, Low in Fat and contain 150 Calories. They are currently available in three flavours - Chocolate, Vanilla and Strawberry. If you are trying to improve fitness, lose weight or simply consume a healthier diet; Truly Yours Shakes are a tasty and nutritious addition to a well-balanced diet and active lifestyle. Lactose Free - What makes this protein drink different? It is 100% lactose free. For those who are lactose intolerant this is a great supplement which does not compro-

mise on taste. High Protein - This shake contains 18g of protein extracted from natural cow’s milk protein concentrate therefore is rich in calcium, essential for healthy muscles and strong bones. Protein ingestion after work-

ing out aids muscles reconditioning as protein reaches the muscles after just 30 minutes so this drink could be consumed directly after a work-out while on the go. Low in Fat - These drinks have no added sugars and are low in calories. They are perfect for the weight conscious individual as it is scientifically proven that consumption of protein enriched drinks or food throughout the day can significantly aid weight maintenance as high protein diets help to delay cravings. Website coming soon. For more information please contact joe.oconnor@trulyirish.ie. J

FOOD & DRINK BUSINESS EUROPE, OCTOBER/NOVEMBER 2017

I CONVENIENCE FOODS

Challenging Times For 2 Sisters Food Group Despite a recent set-back at its core poultry business, 2 Sisters Food Group continues to reinforce its position as Britain’s biggest food manufacturer. stablished in 1993 by founder and chief executive Ranjit Singh Boparan, 2 Sisters has developed from a small scale frozen retail cutting operation into a £3.1 billion turnover international, diversified food group through a combination of organic growth and a series of transformational acquisitions that have dramatically added both scale and diversity to the business. 2 Sisters is now one of the leading privately owned food groups in the UK and Europe. It produces around a third of all the poultry products consumed in the UK and also supplies to continental Europe, In addition to poultry, 2 Sisters’ Protein division also incorporates red meat operations. With annual sales of about £2 billion, the Protein division is the anchor of 2 Sisters’ business. 2 Sisters is also a major player within the chilled and frozen food categories, and has developed a strong brands portfolio including Fox's Biscuits and Goodfella's Pizza.

2 Sisters’ Meal Solutions business produces a range of own-label products including ready meals, soups and sauces.

Tough Trading Environment Like other UK food processors, 2 Sisters is facing an extremely tough and competitive trading environment, compounded by currency fluctuations which have resulted in higher input prices. To counter the pressures from the weakness of Sterling and rising inflation, 2 Sisters has accelerated its efficiency and cost-cutting programmes. Britain’s biggest food manufacturer is well advanced with its £150 million investment programme across its UK poultry business, including £45 million to upgrade its site at Scunthorpe to create the world’s most advanced poultry processing plant. The £150 million investment programme, which was launched at the end of 2015 and is being phased over three years, is designed to further align the poultry business with the needs of its customers, to create world class facilities utilising state-of-the-art technology, and to drive efficiency.

2 Sisters produces around a third of all the poultry products consumed in the UK.

Long-term Approach “Competing in our markets requires investment for the long-term, so our supply chain is efficient, sustainable and fit for the future. This has been our approach when making investment decisions, and we are still focusing strongly on a ‘cost out’ and efficiency culture,” says Ranjit Singh Boparan. 2 Sisters is also investing heavily in the other parts of its business. For example, it has invested £10 million in new technology and innovation to ramp up the capabilities of its Rogerstone site in South Wales - the biggest prepared meals facility in Europe. The investment will act as the foundation for sustained growth and momentum for 2 Sisters’ Meal Solutions business, which produces a range of own-label products including ready meals, soups and sauces. Set-back in Poultry 2 Sisters has recently suffered a set-back at its UK poultry business. It has temporarily suspended operations at its factory in West Bromwich following food hygiene and labelling concerns, stemming from an undercover investigation by the Guardian/ITV. 2 Sisters responded by launching its own internal investigation at the West Bromwich plant and invited the Food Standards Agency (FSA) to independently review standards. 2 Sisters’ internal investigation revealed some isolated instances of non-compliance with the company’s quality management systems. Consequently, a decision was taken to temporarily halt production at the site to allow time to retrain staff in all food safety and quality management systems. The FSA inspection has not identified food safety issues on the premises, but it highlighted issues requiring management attention, for example in relation to some aspects of staff training and stock control. The FSA has since extended its investigations to other 2 Sisters poultry plants in England and Wales. J

FOOD & DRINK BUSINESS EUROPE, OCTOBER/NOVEMBER 2017

I FLOORING & DRAINAGE

John Lord’s Antimicrobial Flooring in Food Industry Environments inimising the risk of food contamination resulting in E coli, M Salmonella, Listeria or Campylobacter is a priority within the food industry. Such bacteria can double and multiply every 20 minutes, so it is important for the food industry to take precautions to reduce the risk. Failings could expose consumers to serious health consequences. It goes without saying that the food and drink industry hold a massive responsibility to produce high quality food that is safe for human consumption. Flooring is one of the biggest surface areas within any food processing factory and is exposed to sometimes aggressive conditions from abrasion, thermal and chemical attack. Food debris such as solids, fats, bloods and oils all encourage the growth of bacteria on the surface. An unprotected concrete or poor choice of flooring topping could cause uncontrolled growth of bacteria putting a factory at high risk of contamination. Flooring is directly under everything we use and the transfer of bacteria from the floor to equipment and product poses a huge risk. It is therefore crucial that food process environments maintain high levels of cleanliness at all times. A good hygiene cleaning regime forms part of the daily routine activities commonly found in food processing environments to help reduce the risk of contamination. But how clean is clean? The growth of bacteria starts again between cleaning cycles and the risk of this bacteria is not always removed by cleaning alone.

As the only UK flooring company to partner with BioCote, John L Lord are able to further reduce this risk and offer the option of an anti-microbial resin floor system using BioCote's proven technology. John Lord manufacture and install a wide of Polyurethane, Epoxy and Acrylic resin flooring systems which are all available with the antimicrobial technology. Antimicrobial Technology

John L Lord partnership with the market leading antimicrobial brand, BioCote and their Silver-Ion technology can be emulsified into a John L Lord flooring system during the manufacturing process and is present throughout the entire thickness of the resin floor screed. Resin floor containing BioCote is working 24 hours a day 365 days a year for the lifetime of the floor. Once installed the silver ions kill and reduce bacteria by 99.99% within 2 hours of installation. BioCote is completely safe and effective and will last the entire life cycle of the resin floor unlike some older style antimicrobial flooring systems the effectiveness of BioCote does not reduce over time. BioCote is invisible to the naked eye. John L Lord flooring systems have undergone a rigorous validation process to ensure they work effectively. This is then supported with an ongoing quality control system offering certification for antimicrobial effectiveness. All validation and quality control is carried out by an independent laboratory. J

Find Local Flooring For Global Operations at Gulfood Manufacturing 2017 t this year’s Gulfood Manufacturing exhibition, which is taking A place at the Dubai World Trade Centre from 31st October–2nd November, Flowcrete will be showcasing its ability to supply worldleading food industry flooring to projects all around the world! From London to Dubai and from Johannesburg to Mumbai or Kuala Lumpur, the resin flooring manufacturer Flowcrete is able to provide the largest and most complex food processing facilities with ultra-hygienic floors that have passed the most rigorous industry testing. Contemporary food and beverage businesses are not confined to just one country, but are globally active, border-straddling organisations that need to have processing, production and logistics operations spanning many geographical regions. FOOD & DRINK BUSINESS EUROPE, OCTOBER/NOVEMBER 2017

Attendees to Gulfood Manufacturing 2017 will be able to talk to Flowcrete, which will have resin flooring experts from around the world on hand to discuss its high-performance resin solutions, including the antimicrobial polyurethane flooring range Flowfresh. Since its invention over a decade ago, Flowfresh has been used by some of the world’s most well-known food and beverage businesses to create reliable, safe and sanitary platforms underfoot. Over this time, big name brands such as Heineken, Unilever, Thorntons, Coca-Cola and Diageo have all discovered the benefits of installing this HACCP International certified, ISO 22196 compliant product collection. The Flowfresh range has been specifically designed to overcome the challenging conditions within food and beverage plants, which will inevitably subject the floor finish to a long list of issues such as thermal shock, heavy impacts, forklift truck traffic, corrosive food products, point loading and more.

To ensure that Flowfresh is at the forefront of hygienic technology, Flowcrete has developed the system with antimicrobial technology experts, Polygiene®. The result of this exclusive global partnership is that silver ions have been incorporated within the system’s resin matrix - an innovative formulation that means a Flowfresh floor is able to inhibit the growth of bacteria on the surface of the floor by up to 99.9%. The bacteria killing property of Flowfresh has been tested in accordance with ISO 22196, which measures a surface’s antibacterial effectiveness. Contamination is a serious concern for food producers, with approximately 16% of foodborne illnesses being attributed to a contaminated processing environment. Unprotected concrete floors can be potential sites of contamination as bacteria can easily build up within its porous and brittle structure. The globalised nature of today’s food industry means that just one foodborne illness could easily become an international food disaster! If you want to talk to Flowcrete about flooring that will help to safeguard a food processing facility against serious contamination issues then its expert team will be available on stand A1-43 in Hall 1. J 50

FOOD & DRINK BUSINESS EUROPE, OCTOBER/NOVEMBER 2017

I COCOA

10,000 Ghana Cocoa Farmers Able to Receive Premium Payments By Mobile Phone argill has made its first ever sustainable C premium payment by electronic transfer to cocoa farmers in Ghana. Just over 10,000 farmers are benefiting from the 2 million GHS mobile payments made by Cargill in partnership with its customers through the Cargill Cocoa Promise, Cargill’s commitment to improving the livelihoods of farmers and communities that will secure a thriving cocoa sector for generations to come. Cargill’s Licensed Buying Company (LBC), which began operating in November 2016, allows the company to directly source cocoa from certified farmers in Ghana – putting the farmer at the heart of its business. The buying process is fully e-money enabled, allowing Cargill to pay farmers directly by electronic transfer for the first time.

Cargill already sources directly from farmers and farmer organizations in other origin countries. Moving to this model in Ghana means that the company is now better positioned to implement sustainability activities under the Cargill Cocoa Promise on a wider scale, while also better serving its customers. Lionel Soulard, managing director of Cargill Cocoa & Chocolate West Africa, says: “Our first electronic premium payment in Ghana since Cargill’s LBC was established is good news for farmers. Our new approach, combining new high-tech purchasing with the LBC model of direct

sourcing and collaboration with farmers, is working well and we hope to make many more such payments in the future.” Technology Enables a Sustainable, Traceable Cocoa Supply Chain in Ghana Cargill’s innovative purchasing model uses the latest technology to implement the principles of sustainability and full traceability in Ghana. Farmers deliver their cocoa to community warehouses where their beans are digitally weighed and assigned a fully traceable bar code. Funds are then transferred straight to the farmer’s phone or e-wallet using E-money through partnerships with E-Zwich, MTM mobile Money and Tigo Mobil Money. Details of the cocoa beans are recorded in a standardized management system before they are transferred to central warehouses. Through this bar code system Cargill can now, for the first time in Ghana, trace each individual bag of beans sourced through the Cargill LBC to the individual farmer, creating a fully traceable supply chain. Lionel Soulard continues: “Having long standing relations with cocoa farmers and their communities is critical for the full implementation of our sustainability approach and we are now expanding our sustainability activities to enable farming communities to benefit from training, community and farm development support.” Empowering Ghana’s Cocoa Communities Working together with CARE International, Cargill is currently undertaking development projects in 108 communities in Ghana, focusing on women’s empowerment, child protection and food and nutrition security. The strategy is to empower these communities through the formation of community development

committees (CDCs), providing each with $500 seed capital to spearhead the development agenda of the communities. Cargill will be investing $300,000 each year for the next three years to create resilient cocoa communities in the area where the LBC operates. “We are excited about continuing our sustainability journey in Ghana, in partnership with COCOBOD, the Ghanaian cocoa board. As our new purchasing model is fully sustainable and fully certified, it will strengthen farmer organizations and enable farmers to benefit from future premium payments for certified, sustainable cocoa beans,” adds Lionel Soulard. “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.” In the coming year, Cargill is also committed to working with the Ministry of Education to renovate, reconstruct and build schools in the four districts where it currently operates, to improve access to education. J

FOOD & DRINK BUSINESS EUROPE, OCTOBER/NOVEMBER 2017

I CONFERENCE & EXHIBITION

Food & Drink Business Europe Conference & Exhibition UK – 7th November 2017 – Ricoh Arena, Coventry The Food & Drink Business Europe Conference & Exhibition UK - the must attend event for food and beverage professionals - will be held on Tuesday, 7th November 2017 at the Ricoh Arena in Coventry.

ver 2,000 delegates from the UK’s food and drink processing, retail and food service industries will gather to participate in a range of seminars and panel discussions highlighting the key issues facing the industry. The event will provide a one-day one-stop shop for professionals across the full industrial spectrum, highlighting key trends across the food manufacturing, retail and foodservice sectors - from improving traceability and consumer trust, transforming productivity and using the latest ingredients and super foods to make an impression on the industry. The event has been designed to cover all major industrial sectors including: Dairy, Meat, Poultry, Seafood, Bakery, Confectionery, Convenience Foods, Fresh Produce, Snacks, Brewing, Distilling, Soft Drinks, Bottled Water, Retail, Foodservice, Free-from, Craft Brewing and Distilling, Convenience and Forecourt Retail. Conferences A key feature of the Food & Drink Business Europe Conference & Exhibition UK is that it incorporates several events under one roof. Co-located within the one day event are a number of individual

Conferences dedicated to different themes: • Sustainable Food and Beverage Conference • Food & Drink Lean, Productivity and Continuous Improvement Summit • The Food & Drink Engineering Summit • Food & Drink Data and IT Summit • Food & Drink Quality and Safety Summit • Food & Drink NPD and Innovation Summit • Food & Drink Supply Chain and Logistics Summit • Food & Drink Packaging Materials, Technology and Design Summit • Grow Food • The Food and Drink Facility Management, Maintenance and Operational Efficiency Summit • The Food and Drink Smart Factory

Summit The Beverage Summit The Craft Beer and Spirits Summit The Food Retail Show The Foodservice and Hospitality Expo The Food and Drink Skills, Training and Careers Show. Delegates are free to move between the different Summits. • • • • •

Speakers Over 250 speakers will cover the topics of interest facing the industry. The speakers at the Conference have been carefully selected from senior management within the food and drink industry, both at home and abroad, who have a successful track record of delivering quantifiable results in sustainable food and beverage manufacturing and throughout the supply chain. Speakers have been drawn from leading companies such as Nestle, Arla Foods, William Jackson Food Group, Marks & Spencer, Warburton’s, Baxter Storey, Bidvest Foodservice, PepsiCo, Carbon Trust and Wrap. Exhibition The event is accompanied by an extensive exhibition of the latest technology and services available. Some 200 exhibitors will showcase a wide variety of products and services including: Ingredients,

FOOD & DRINK BUSINESS EUROPE, OCTOBER/NOVEMBER 2017

Process Engineering, Packaging Equipment & Materials, Information Technology, Logistics, Materials Handling, Food Safety, Training & Education, Energy, Water, Waste Management, and Sustainable Technology. The Food & Drink Business Europe Conference & Exhibition UK with its colocated Summits will bring together key stakeholders and regulatory bodies from food and beverage manufacturers, food retailers, food service companies, agriculture, ingredient manufacturers, plus key suppliers of energy, water, engineering, packaging, supply chain, logistics, emissions reduction and waste to energy technology and services. By gathering over 2,000 delegates in the same venue, the organiser – Premier Publishing & Events intends to create an environment that is conducive to networking and cooperation. J

Food & Drink Data and IT Summit The third annual Food and Drink IT Summit will be held on the 7th November, 2017 at The Ricoh Arena, Coventry. The theme of this year’s Summit is ‘Creating an Efficient and Sustainable Food Industry through Data’. The move towards a smart food business is increasing. More and more data is available throughout the food factory and across the whole food chain. This availability of data and the means to analyse it and effect improvements is leading to increased efficiencies, reduced waste, lower costs, increasing productivity etc. The Food and Drink IT Summit is an annual gathering of the leading food and beverage companies interested in improving their business through data, IT, software etc. Over 400 delegates attended the inaugural 2015 event. The organisers expect 800+ for the 2017 event.

Making Gains in Lean Food Manufacturing ealising productivity gains in R food and beverage manufacturing goes beyond ad hoc training sessions with groups of employees, to truly increase productivity the entire workforce needs to come together and embark on a journey of continuous improvement. There’s no ‘one size fits all’ solution and definitely no quick-fix. Many organisations are under pressure to reduce their costs and still maximise output, which causes them to neglect their staff who

are the key to increasing productivity. Many employees across the manufacturing sector feel overworked and undervalued and are not equipped with the right skills to make the changes needed to support leading and implementing improvements within the business. Innovative programmes such as the

Productivity Improvement Programme (PIP) seek to focus on the high-impact areas that affecting efficiency the most; by working with organisations and their workforce it helps to develop the mindset and skills needed to support productivity increases and a continuous improvement culture. The PIP programme is the consolidation of over 15 years’ worth of experience in Lean techniques; improvement experts KM&T have brought together the most practical tools to help increase efficiencies for food and drink manufactures and help maximise their output. With recent reports stating “the drop-in productivity has cost food and drink producers an extra £400 million in labour costs” last year – now is the time to tackle this issue head on. Flexible programmes like PIP are ideal for food manufacturers who are keen to work with their staff to identify and strip out wasteful activities and without reducing health and safety standards and keeping food perishability values high. As a team of improvement specialists, KM&T developed PIP to work with organisations and solve complex operational challenges. Underpinning the strategy are the principles of Lean and Continuous Improvement methodology, which support organisations when addressing critical objectives. To find out more visit www.kmandt.com/pip. J

FOOD & DRINK BUSINESS EUROPE, OCTOBER/NOVEMBER 2017

Halewood International to Launch Ideagen Q-Pulse ajor drinks manufacturer, Halewood International, is to M launch a UK-wide quality management system using software from Ideagen. The producers of Crabbie’s, Lambrini and Red Square Vodka – among other brands – will adopt Ideagen Q-Pulse for the management of key operational documentation such as quality policies, specification information, consumer feedback and internal and external audits. Q-Pulse will become the company’s single quality database ensuring Halewood’s sites, customer and consumers in the UK have access to a central area of communication and information. The UK-project could also extend across its global operations including Romania, South Africa, and China. Neville Clifford, Halewood International’s Technical Manager, says Q-Pulse would bring an end to each site operating individual quality management systems. He comments: “Currently there is no

single point of information for our products and other areas such as the general management of quality. Each of our sites are operating as individual businesses. The principal driver for this project is to have a single, central quality management system so that all of our staff and sites are working to correct policies and procedures. For example, if we decide to change the ingredients for one of our brands, it will be centrally controlled and communicated to ensure there are no deviations or areas of confusion. We require documents such as our quality policy to be freely and quickly available at all sites. Q-Pulse provides us with that set-up and gives us the chance to communicate to everybody within the business through one central and electronic portal.” Halewood International's corporate set up includes several manufacturing, packaging and bottling plants. As well as its UK headquarters in Liverpool, it has five other sites across the UK and several globally including a manufacturing winery in Romania, bottling and fermenting plant in South Africa and contract pack operations in China and Myanmar. J

Zensar Enables 2 Sisters Food Group Realize Return on Digital® ensar Technologies, a leading digital solutions and technology serZ vices company that specializes in partnering with global organisations across industries on their Digital transformation journey, has announced that 2 Sisters Food Group has seen measurable Return on Digital® with the implementation of Robotic Process Automation (RPA) within their Shared Services Centre. In the last six months, Zensar’ s RPA expertise has helped the company realize visible and measurable outcomes, with streamlining of the financial framework and operations specifically in Accounts Receivables cash posting and allocation process. Employing more than 23,000 people and operating 43 manufacturing sites, 2 Sisters produces a variety of products ranging from pizza to pies, from poultry to puddings, from ready meals to every day meal solutions. Sandeep Kishore, Chief Executive Officer and Managing Director of Zensar Technologies, comments: “We are delighted to see the business outcomes enjoyed by 2 Sisters Food Group from our RPA

solutions. It is encouraging for us to see the positive impact our Return on Digital® framework brings to our customers who have reposed their trust in our capabilities.” Barry Spenceley, Head of Shared Services at 2 Sisters Food Group, says: “When we initiated the automation process, we were clear on the operational goals we wanted to achieve. Having seen such clear outcomes, with a clear impact on the enhanced quality of our customer service, we have the confidence to continue the path of automation within the Accounts Receivables cash posting and allocation process. The Zensar team has both the expertise and the understanding of our business to help us through the entire project.” The engagement is structured towards a step by step implementation of RPA across Cash Posting and Allocation of the customer’s financial operations within their Shared Services Centre. The key business impact enjoyed by the customer can be summarized as follows: • Since the inception of the project, approx. 97% of tasks are automated, resulting in lean operations and time to complete task ratio • Approx. £600 million of cash has been posted by Bots, introducing speed to the process • The bots deployed have worked towards saving time with a 90% reduction in time taken for cash posting; this has made the entire process more efficient • Due to the amount of cash applications posted in a short time, the analysts can work towards value added tasks such as engaging with customers and enriching the relationship • Accuracy level has resulted in a better operational framework • Talent is now diverted to take up more critical tasks, adding to the overall profitability. J

FOOD & DRINK BUSINESS EUROPE, OCTOBER/NOVEMBER 2017