Frigoglass SA - Oct 2019

FRIGOGLASS SA

FRIGOGLASS SA

The Coolest Brands Meet the Coldest Drinks PRODUCTION: William Denstone

Frigoglass is the strategic partner of choice to the world’s top beverage brands. One of the global leaders in the Ice Cold Merchandisers (ICM) market and the principal supplier of glass packaging in the high-growth markets of West Africa, Frigoglass has manufacturing facilities in eight countries. Cemented in more mature European markets, the company is forever evolving and establishing its position in emerging markets and willing to invest heavily to keep itself ahead. “We offer solutions to serve all - brands, customers, the end consumer. We pass on comfort and enjoyment across the world,” Frigoglass sets out.

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INDUSTRY FOCUS: MANUFACTURING

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Frigoglass ensures that the brands it represents are everywhere that drinks are on sale, always on show to the biggest audience possible. Using what it has termed the “Frigoglass Advantage”, it produces innovative coolers designed to enhance branding impact at the point of sale, in turn driving impulse consumption.

Its expertise in the field means that Frigoglass has long-standing relationships with blue chip customers in the soft drinks and beverage industries, including some of the household name stalwarts.

“Our bespoke Ice Cold Merchandisers enhance our customers’ beverage branding and facilitate immediate beverage consumption,” Frigoglass asserts. “At the same time, our leading innovations in the field of green refrigeration enable our customers to meet their sustainability and carbon emissions reduction targets.” Arguably most well-known for its pioneering

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efforts in the field of refrigerated vending machines and display coolers, this is not where Frigoglass’s expertise ends. Alongside the chilling units is a unique, innovative customer solutions offering, which aims to provide customers with excellence in operations and best-in-class services.

As well as producing high-spec, branded machines to ensure that beverages are chilled for optimal taste, another important arm of the Frigoglass operations is of course the range and versatility of glass products it has evolved, which offer improved quality, optimised distribution and reduced cost.

“Frigoglass can produce a wide range of glass containers, from 30ml to 1.5l in white flint, amber and emerald green colours,” says the company. “We invest continuously to ensure we remain at the vanguard of technical innovation, providing our customers with value added packaging solutions, designed to enhance the sustainability of our customers’ operations.”

ECO PRIORITY Running through the entirety of Frigoglass’s activity are two core principles: innovation and sustainability. “In parallel to maximising merchandising opportunities for our customers,” the company says, “we are committed to providing increasingly

// OUR INNOVATIONS ENABLE OUR CUSTOMERS TO MAXIMISE SALES OPPORTUNITIES AND RESPOND TO THE SPECIAL CHALLENGES OF ELECTRICITY SUPPLY SHORTAGES IN AFRICA //

FRIGOGLASS SA

environmentally friendly product solutions which enable our customers to meet ambitious sustainability and carbon emission reduction targets.”

Such is the strength of this commitment, and the success that Frigoglass has enjoyed in implementing such practices, that it was awarded a 2018 gold medal

by EcoVadis for its sustainable and socially responsible practices, placing it among the top 1% of companies around the world in the sector and making this the second consecutive year that it has been adjudged to demonstrate the gold standard.

“Sustainability is central to our business strategy,” Frigoglass underlines. “It is embedded in our strategic priorities and incorporated in our business activities. We continue to integrate sustainability into the way we do business, making clear progress against our sustainability commitments. Our product portfolio is even greener, our operations even more environmentally friendly and our impact on the world more meaningful.”

EcoVadis, the leading Corporate Social Responsibility (CSR) rating platform, is dedicated to producing independent assessments of companies’ CSR performance. The EcoVadis CSR assessment encompasses more than 50,000 suppliers, 190 sectors and 150 countries.

In response to the award, Nikos Mamoulis, Chief Executive Officer of Frigoglass commented: “We are delighted to receive the Gold recognition for our sustainable and socially responsible practices for

// WE INVEST CONTINUOUSLY TO ENSURE WE REMAIN AT THE VANGUARD OF TECHNICAL INNOVATION //

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INDUSTRY FOCUS: MANUFACTURING

// WE PASS ON COMFORT AND ENJOYMENT ACROSS THE WORLD // a second year in a row. This award proves our strong commitment and dedication to continuously improve our sustainability performance, adding value to all our stakeholders and to the community.”

Last year also saw Frigoglass unveil its Hybrid cooler, a product designed and launched to ensure the availability of cold drinks even during the frequent power outages which plague many of its keys markets. “In ambient temperatures of around 40°C degrees, the Hybrid cooler, using breakthrough

eutectic layouts and energy efficient components, keeps products cool and allows customers enjoy refreshment and quality,” detailed Kostas Mitsotakis, Frigoglass Innovation & Product Development Director.

The solution is available in both the Smart and ICOOL product families and, like other Frigoglass cold merchandisers, is equipped with a glass door and LED lights, ensuring that excellent product visibility is maintained and giving full illumination during power off cycles.

“Our customers in emerging markets face a major challenge: loss of sales due to lack of cold product for immediate consumption.,” the company goes on. “Frigoglass, committed to offer innovative, bespoke solutions, has successfully launched the Hybrid cooler, which is

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designed to mitigate the impact of electricity outages.

“Our innovations enable our customers to maximise sales opportunities and respond to the special challenges of electricity supply shortages in Africa.”

NIGERIAN GLASS INVESTMENT One of Frigoglass’s most important announcements last year came in December, as it unveiled a €25-30 million investment to expand its furnace capacity at the Beta Glass Guinea plant in Agbara, Ogun state.

The investment will increase capacity at the plant by 35,000 tons per year, and will provide for a new furnace, an additional production line, upgrades to existing production lines and new inspection equipment to strengthen the plant’s capabilities.

This strategic investment will drive continued growth in the company’s glass business across the West African region; the new furnace is expected to be productive for more than 12 years, and its installation demonstrates the commitment to both existing and new customers across West Africa.

“This new larger furnace secures the livelihoods of our existing employees in Agbara, and creates not only additional jobs but also shareholder value and contributes

// OUR PRODUCT PORTFOLIO IS EVEN GREENER, OUR OPERATIONS EVEN MORE ENVIRONMENTALLY FRIENDLY AND OUR IMPACT ON THE WORLD MORE MEANINGFUL //

FRIGOGLASS SA

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positively to the development of the local community,” said Darren Bennett-Voci, Glass Division Director of Frigoglass and Managing Director of Beta Glass Plc, the Nigeria Head Office.

Nikos Mamoulis underlined the importance of ploughing capital into these improvements to support the Group’s further growth. “This strategic initiative demonstrates our commitment to implement investments that will enable the Group’s future growth. It supports the growth of our international and regional beverage customers in the high growth potential West African region,” he mused.

“We continue to implement investments to better cater to the growing needs of our customers for glass packaging. This investment will significantly increase our annual

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capacity, allowing us to meet growing demand, not only in Nigeria, but in many countries across West Africa,” added Abimbola Ogunbanjo, Chairman of Beta Glass Plc. This has all added up to some impressively strong results for Frigoglass in the second quarter of this year. Highlights included double-digit sales growth and expansion in its earnings before interest, tax, depreciation and amortisation (EBITDA) margin.

Commercial Refrigeration sales growth momentum continued, up by 14% year-on-year and driven largely by increased customer cooler investments in Europe and a sturdy performance from Frigoserve.

“We delivered another solid set of quarterly results with doubledigit sales growth and comparable

EBITDA margin expansion, alongside strong free cash flow generation,” was Mamoulis’s take. “Results demonstrate our consistent focus on the execution of our commercial strategy to best cater our customers, as well as, cost reduction initiatives.

“Following our year-to-date performance, we expect to deliver a second post restructuring year of top-line growth and profit margin enhancement, also supported by savings related to manufacturing footprint improvement.”

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