CONFECTIONERY MARKET AND PRODUCTIONINTELLIGENCELINE
INDUSTRY
Overview
a. Definition, segments within the industry and market share Market size and coverage European sales data and evolution Current and future market trends Overview of challenges Key demographics Key producers in the confectionery industry Major machine builders Major cocoa producer
The purpose of this document is to provide the managers and sales forces of member distributors with market and production line intelligence on the confectionery industry. This document explores trends, identifies products used in manufacturing confectionery, clarifies key challenges, describes project opportunities and considers how they can be capitalised.
As part of the development of tools and resources for members, this document is designed to add value to their technical/ commercial understanding of specific markets and production line processes. This document, focused on confectionery, follows the success of the first report on the Soft Drinks industry, published in 2016.
EPTDA was founded as the European Power Transmission Distributors Association in 1998 at the initiative of a group of power transmission and motion control (PT/MC) industrialists who believed in bringing together distributors and manufacturers involved in the PT/MC business on one unique platform. It has since become the largest organisation of PT/MC distributors and manufacturers in EMEA and is one of the most powerful and respected B2B executive platforms for the industry worldwide.
This first section provides an introduction and overview to the confectionery industry and gives key background information, market intelligence and major players within the industry. It has been organised as follows:
b.
c.
d.
2. Production Line Intelligence Page 10—19
Purpose of this document
e.
f.
h.
This section illustrates the confectionery production process, with a specific focus on chocolate. It explains each stage in detail to provide an understanding of the production process and the opportunities that exist. Key customer challenges, major product groups, typical maintenance and improvement projects are identified throughout the production line and potential areas of commercial opportunity for the distributor are highlighted.
3
This document has been divided into three parts:
i.
1. Industry Overview Page 4—9
3. Use of this Document Page 20—21
g.
The potential for distributors within the confectionery industry sector, both MRO and OEM, is significant, with an estimated 'scale of opportunity value' (SOV) of 100m€ available to the aftermarket. The final section proposes how the document could be used and provides open-ended questions that can be asked of prospective and actual customers in order to reinforce the knowledge gained in parts one and two and to maximise the available opportunities.
EPTDA continually strives to develop relevant tools for its members, helping them stay competitive in a constantly evolving marketplace and business environment.
EPTDA’s mission is to strengthen its members in the industrial distribution channel to be successful, profitable and competitive in serving customers according to the highest standards. The association takes great pride in its values which focus on being a premier community for qualified members through open dialogue and mutual respect; acting with integrity, honesty and fairness; and ensuring continuous growth and learning.
PART ONE
With shifting patterns of global growth, market share by region has seen significant change in global leaders over the past two years. Despite this, it is the European market that retains the dominant share for chocolate confectionery. 3
Sales Value of Confectionery in Select European Countries, Q4 2015
Comprising of three core categories - chocolate, sugar and gum - the confectionery industry is highly competitive, with large international and smaller, private manufacturers competing for market share across local regions. Locally there is strong customer loyalty with a tendency for certain regions to favour different confectionery products over others. In the Nordic region, for example, there is a much higher sugar confectionery consumption than in the rest of Europe, where chocolate is dominant.
Global confectionery segment market share in 20165
56% Chocolate confectionery 13% Gum 31%
and mergers are frequent in the industry, acting as a mechanism for consolidation and increasing market share across the European confectionery market. Mondelez International’s acquisition of Cadbury, the merger of Mars and Wrigley and more recently Ferrero’s acquisition of Thorntons are all examples of this market trend. 2
European sales data and evolution
launches have seen an increase, as the industry responds to rising consumer demand for healthier products. Seasonal launches are also key for market penetration and opportunity. For example, just over one quarter (28%) of global seasonal chocolate launches in 2016 took place during the Easter season.7
The confectionery market produces a range of food products that are rich in sugar content, including chocolates, hard and soft sweets, gums and lozenges, amongst many more. The European confectionery market has evolved significantly in recent years due to increasing health concerns, socioeconomic changes and a growing demand from consumers for more variety. These factors have led to a dramatic growth in the sales of low calorie and sugar-free confectionery. Dark chocolate, for example, has boosted the chocolate confectionery market significantly, owing to its richness in antioxidants, high cocoa content and perceived health benefits.1Acquisitions
confectionerySugar
Definition, segments within the industry and market share
99% SMEs 6,000+ companies 163,000+ direct employees 4
As local consumption tends to be of local produce or from within the EU, only 2% of the European confectionery market is made up of imports from outside the EU. Whilst slightly higher, CAOBISCO reported exports from the EU accounted for only 13% of the market in 2014.4
Market size and coverage
The chocolate segment represents over 60% of the European confectionery market share, with sales estimated at $49 billion in 2016.6 The rising demand for dark chocolate is driving the growth of this segment, along with the increase in consumption of premium chocolates and limited-run new product launches for special occasions like Christmas, Easter and increasingly NewHalloween.product
Confectionery industry overview
The European confectionery market continued to experience gradual but steady growth in 2016 with reported sales of $70.69 billion. In the same period, the global confectionery industry had an overall market size of $186.43 billion.
The next page gives some numerical data on the distribution of the confectionery market across Europe, showing how countries respond differently and how this, in turn, affects sales.
Confectionery sales in select European countries, Q4 2015 8 01234569Kilograms Country 8 Chocolate consumption per capita in selected European countries, 2016 Switzerland Germany Austria Ireland KingdomUnited Norway 7 Belgium Estonia Sweden Netherlands France Italy Spain 5.3 7.8 5.0 9.0 7.4 7.4 6.6 6.0 6.0 4.0 1.7 1.6 8.0 Chocolate consumption per capita in select European countries,Non-seasonal201513 distribution of confectionery in select European countries, 2015 9 6000200010000Germany3000400050008000eurosMillion Country 7000 Sales Value of Confectionery in Select European Countries, Q4 2015 7320 6539 3884 1903 1153 872 KingdomUnited France Italy Spain Netherlands Netherlands0206080100valuesalesofsharePercentage Country Chocolate export sales, 20167687 99 Germany KingdomUnited Italy Spain France 40 75 94 89 5
Manufacturers must be responsive to local market preferences which influences not only the type of confectionery produced but also the manufacturing processes involved. Factories in certain countries, such as France, may see greater variety in their production lines throughout the year because of seasonal demands like Easter or Christmas. In comparison, other countries like Germany or the Netherlands have greater demand for more standardised, non-seasonal confectionery.12
Although Germany continues to hold the largest share of the European confectionery market, by volume, Swiss consumers spent considerably more on chocolate per person in 2015.10 Nonetheless, at only 1kg per capita behind Switzerland, Germany continues to dominate the chocolate market. Consumption of chocolate also correlates with the production of chocolate within Europe – with Germany, Switzerland and Belgium producing the most chocolate respectively.11
In addition, demand for cheaper products with a reduced calorie intake is driving trends for portion control – the effect of which can be seen in the growing sales of bite-size chocolates. These types of chocolate allow consumers to either share with others, control their portion sizes or consume the product over an extended period of time. An example of this trend in the market was the introduction of Kit Kat Mini by Nestlé.18 Even more recently, at the annual CAOBISCO meeting in 2016, there were discussions on setting industry-wide limits on calories per portion.19
€
In the eyes of the manufacturer, the cost of production is 7 times more important than the needs of the consumer
This demand for reduced calorie and sugar intake has also carried over into the gum segment, where new product launches of gourmet-flavour and sugar-free gums have been highly successful. Despite this success, it is important to note that sugar and gum confectionery sales are still considerably lower than the contribution chocolate makes to the overall European confectionery market. 20
6
7:1
Some product manufacturers are already supplying this market by introducing products that are adapted to be suitable for snacking occasions. Examples include sugar or chocolatecoated fruit and nuts and small sized chocolate bars that fit easily
Current and future market trends
Top global confectionery manufacturer Mars, responded to this market trend in 2016, by launching M&M’s Bounty and Galaxy Trail Mixes – combining chocolate with fruit, nuts and seeds.17
Millennials are a growing force in the food industry, especially for manufacturers who provide meal solutions or snacks –allowing consumers to replace meal-time altogether. Healthier snacks, such as nuts, meats or yoghurt – as well as those higher in protein, are strongly positioned towards this consumer group, and manufacturers would do well to see where confectionery can tap into this market.14 Some confectionery producers have already begun to venture into the snacking industry, mixing protein with chocolate to produce chocolate protein bars, for example the Snickers Protein bar.
Due to accessibility and prices, snacking on premium chocolate tends to be relatively low among teenagers, who favour the more mass-market brands. Therefore, manufacturers of premium chocolate are launching new lines aimed at this demographic. In 2013, for example, Lindt introduced a new line of products under the label “Hello my Name is” in response to this growing trend.15
The European snacking market is estimated at 296€ billion and almost 50% of this is from the consumption of sweet and savoury treats, with fruit and caffeinated goods being the most popular form of snack. Since snacks frequently serve as a feature between meals and throughout the day, or indeed, as a replacement altogether, consumers want snacks that not only have health benefits but are also appetising. Confectionery is well positioned to tap into this growing snacking market.16
In 2009, Nestlé UK changed elements of its packaging to become more environmentally friendly, using recyclable cardboard and reducing the use of packaging overall by 30% in its Easter Egg products. 21 Although this has positive effects € € € € € € :
Key demographics
So some of the key challenges facing the confectionery industry are those of alternative products, like snacks, reducing sugar levels, portion control and environmentally responsible packaging. All this has to be set within the context of cost control and operational efficiency.
Whilst increasing concern from consumers for a more sustainable and environmentally friendly approach to the production process can cause logistical challenges, it can be seen to reduce operational costs. As found by confectionery giant Mars, who reported a reduction in operating costs by 10% after switching to renewable energy sources and looking to conserve water where possible. 22
Further challenges experienced during the manufacturing process e.g. hygiene, health and safety and scale of production will be explored later in this document.
Increasing consumer demand is forcing manufacturers to reduce sugar content and use natural alternatives to artificial sweeteners (such as Stevia blends) in their products. Originally perceiving fat as the prominent cause of health conditions like obesity, public perception is now shifting the blame to sugary foods and drinks. Indeed, several countries have begun to introduce legislation for these products through sales taxes, restrictions on advertising and reduced portion sizes. 23
Belgium6kg SwitzerlandGermany8kg9kg Country kg of personconsumedchocolatepereachyear 7
Overview of challenges
European countries with the strictest standards of quality for chocolate production often consume and make the most
At the same time, accommodating the wide variety of products – chocolate, sugar and gum – is a challenge manufacturers have to deal with as part of their production process. For example, it may be desirable for crystallisation or graining to take place in fondant and fudge, however, in confectionery with high levels of sugar, like hard-boiled sweets, crystallisation is seen as a defect. Ensuring this doesn’t take place in either the production phase or in storage, depending on the desired type of confectionery, is paramount in reducing stock wastage. 24
on consumer perception of confectionery products and their manufacturers, varying approaches to packaging are costly.
In turn, sugar confectionery and gum have seen a decline in consumer consumption as these contain high levels of sugar and have low levels of perceived health benefits. Manufacturers producing chocolate confectionery have felt less of an impact, but will still need to respond to a growing consumer demand for confectionery containing healthy and ethically-sourced ingredients, additional benefits and reduced sugar levels.
With headquarters in Crailsheim, Germany, Schubert provide robotic packaging solutions for a wide pool of industries, including snacks, beverage and confectionery. A leading machine manufacturer in both primary and secondary packaging , Schubert machines cater from picking and sorting through to cartoning, coding and palletising. They position themselves as having highly flexible packaging machines, making them perfect for customisation to suit the confectioner’s needs. 28
A top global player in technologies for processing food, Bühler has headquarters in Uzwil, Switzerland. Transforming raw materials into end products, Bühler specialises in processing technologies for consumer foods, including bakery goods, chocolate and snack foods. Their revenue for 2016 was 2,475€ million. They offer technology in the following areas: cleaning, drying, mixing, weighing and packing and refining, as well as other products to help with the production process from bean to bar. A technology leader in the production of chocolate confectionery, Bühler has a strong presence in Europe in over 21 countries, with at least 7 locations in Germany alone.26
4 Meiji Co. Japan
• Bosch Packaging Technology | www.boschpackaging.com | Germany
• PFM Group | www.pfm.it | Italy
• CM-OPM | www.cm-opm.com | Italy
Key producers25
Below are the major machine builders of the confectionery industry with a brief profile on each.
Originally specialising in bringing vacuum sugar boiling machinery to the industry, SOLLICH has now expanded its range of processing equipment for chocolate, sugar and biscuit goods. Their expertise lies in bar and praline forming, coating, tempering and sugar processing. In 1992, SOLLICH acquired CHOCOTECH who specialise in candy wrapping and introduced the first worldwide chocolate tempering machine. Whilst having worldwide presence for the global confectionery industry, SOLLICH’s headquarters are in Bad Salzuflen, Germany.27
• Prefamac | www.prefamac.com | Belgium
• Bohnke Luckau | www.boehnke-luckau.de | Germany
10 HARIBO GmbH & Co. KG Global
• Cremer | www.cremer.com | Netherlands
The top ten global confectionery manufacturers (including chocolate, sugar and gum) in terms of sales value are:
• A.M.P. Rose | www.amp-rose.com | United Kingdom
Schubert | www.gerhard-schubert.com
Bühler | www.buhlergroup.com
• Aasted | www.aasted.eu | Denmark
RankValue Company
7 Pladis Global
1 Mars Inc. Global
2 Mondelēz International Global
6 Hershey Co. Global
8 Lindt & Sprüngli AG Global
Major machine builders
3 Ferrero Group Global
9 Ezaki Glico Co. Asia
• CT PACK | www.ctpack.com | Italy
8
5 Nestlé SA Global
• Marchesini Group | www.marchesini.com | Italy
Primary GeographyBusiness
Other players in the industry:
SOLLICH | www.sollich.com
• Foil or wrappedplastic
• containingChocolate alcohol, fillings or a ganache centre
Popular varieties of chocolate produced*
• Variety of shapes and sizes
As will be seen in the production line schematic, not all elements of the production line take place in the same production plant. Quite often the product will travel between several facilities before its final stages of production within the brand manufacturer. This is particularly true of the initial stages of turning the cocoa beans into chocolate paste.
Hours72Conching
Sharing bags / •Bite-sizeLarge portion of small countlines or straighlines
Producers in Europe conch almost 4x longer than in North America Producers in Europe conch almost 4x longer than in North Americaknow?youDid
• Special orseasonalproduceditemsforoccasionsgifts
is not
• Bite-size snacks served in bags
••••Mini-varietySmallerportioncountlinesOn-the-gosnackingMulti-packorindividualservingsFoilorplasticwrapped
•••mouldedChocolatebarsPlain,darkorwhitechocolatevarietiesAddedingredientse.g.fruitornutsFoilorplasticwrapped
• Fllings nutscaramel,e.g.biscuits,
• Foil, plastic, box or tray packaging
Barry Callebaut | www.barry-callebaut.com
9
World-leading chocolate and cocoa product manufacturer, Barry Callebaut turns cocoa beans from their original source into a cocoa powder or paste that other chocolate producers can use to turn into chocolate products. Headquarted in Zurich, Switzerland, they have a global presence, including West Africa – the source of most cocoa beans, and their product can be found in 25% of all cocoa or chocolate products. 29
* Please note this an exhaustive list of chocolate confectionery products
These major machine builders often have their own aftermarket services – supplying spare parts at the same time as delivery of machines. In addition, there are a significant number of smaller machine builders, based within the local markets, making machines directly for the end user in this industrial sector. In some cases these are OEM distributors, providing updated/improved machines to design and order.
Hours72Conching
Truffles / Pralines / Seasonal chocolate
•••StraightlinesSmallidenticalitemseatenassnacksChocolate-basedorcoatedPlastic,foilorpaperwrappinginsmallbagsorboxes
•countlinesChocolatePlain,dark or white coatedchocolatebars
Major cocoa producer
• Throughout the production line, as well as non-production areas, a clean environment is critical and appropriate cooling and ventilation must be in place
This production process, whilst being typical, does not represent all chocolate production or all other sectors within the confectionery industry. This is because actual plant processes may vary according to the confectionery being produced – such as seasonal chocolate and sweets, chocolate bars, toffee or gum, the type of packaging – carton-boxed, bags or films for example, as well as whether the factory is a mass or artisan producer.
10
PART TWO
Introduction
This schematic describes a typical chocolate production line, detailing the key stages in both the process phase (preparing the product from raw ingredients) and the primary and secondary packaging phases (covering the chocolate with protective packaging and then into individual and multi-pack packets, ready to be shipped to customers).
Key challenges
The following are key challenges that are constant throughout the chocolate production line and some are also relevant to other sectors within the wider confectionery industry. Supporting the schematic, additional key challenges that appear relative to specific stages of the production process are identified.
• Low levels of water are required throughout the process in order to significantly reduce the risk of contamination e.g. from Salmonella
• Wet cleaning of machinery cannot be used in the chocolate production line, instead, brushing is normally used throughout the plant
However, the key stages described here will be common to most plants and there will be similarities that can be seen across all segments of the confectionery industry, as well as other industries producing biscuits, cereal or protein bars.
• Due to the nature of chocolate, packaging must be moisture and odour-resistant and sealed from external interference throughout a variety of hostile environments such as transportation, storage and supermarket shelves
This section highlights the key customer challenges in relation to process and packaging phases. It describes the key product categories used in the production process and typical projects in improvement, maintenance, repair and overhaul that are often undertaken in such a plant. Key sales opportunities are identified in relation to products and maintenance projects that are supported by distributors with real technical expertise.
• At all times product safety must be maintained
Cleanliness and health and safety
Confectionery production process
It is also worth noting that some big producers will sell on the cocoa powder or paste they produce to smaller plants. This means that not all manufacturers will utilise the whole production line and may start at a later stage – milling, for example.
• Production must abide by regulations and safety policies of the country in which production takes place
• The highest standards of hygiene must be maintained throughout the production process as machines come into direct contact with the product
Packaging
• This is expensive in terms of cost and time where machines are left unproductive as they are out of action during modifications
• Demand for automation in the confectionery industry is an ever-increasing phenomenon
• Production plants are becoming smaller which in turn requires more compact machines and production lines
• Customised solutions across a wide variety of machines reducing the need to go back to multiple suppliers for different parts or machines
packagingReducedwaste sourcingLocalRecyclablematerials demandIncreasingforrobotics turnaroundsQuick 11
Key factors for new purchases
• The need to vary packaging styles cause mechanical challenges as machines are often restricted to producing one specific type of packaging at any one time
• Automatic and easily reconfigurable confectionery handling and packaging systems are highly preferred and sought after
Top packaging trends
• Machine flexibility for multiple product lines or processes
• Clear return on investments in under two years
• Consumer needs are secondary factors to cost and operational efficiency of machines
• Chocolate confectionery packaging is more complex than that of sugar or gum confectionery, requiring more flexibility and variability
• Smaller machines often perform discrete process functions - pasteurising to heating, for example
know?youDid 500+
• Smaller scale and artisan manufacturers often require specialist equipment
Scale of production
A complex product, chocolate has over 500 flavour combinations
Ball mills or roller systems
rollersSteel Re ner
After grinding, the cocoa mass is decontaminated by being passed through pasteuriser machines. These machines use high temperatures to remove any microbes from the cocoa mass and sterilise the liquid.
The second grind involves passing the cocoa nibs through a ball mill or roller system, which reduces the size of the nibs and distributes the cocoa butter evenly over the cocoa particles. At the end of this process, a gritty liquid chocolate ‘mass’ or paste is produced, ready for refining. The gritty liquid paste is then passed through steel rollers which remove any impurities, refining the liquid ready for pressing.
Explaining the process of production
12
The fermentation process leaves the beans with around 60% water content, so the beans are spread over a flat surface and exposed to sunlight, which both reduces the water content of the beans to around 7% and develops flavour.
Pressing
Pasteuriser
10. Refining
Blender Blender rollersSteel Re ner
The liquid paste created during the pre-refining process is then pressed to separate the three elements of chocolate – cocoa butter (used to give chocolate its glossy appearance), chocolate liquor (the ‘raw material’ of bars) and cake (used to make cocoa powder).
Next comes the roasting process, which further develops the flavour of the beans. They are roasted at around 130°C, a high temperature which helps to sterilise the cocoa beans. During roasting, the cocoa bean separates from the bean kernel and becomes a cocoa nib.
After blending, the chocolate paste is still too coarse – the mixture is further refined using steel rollers which gives it a smoother consistency.
7. Pre-refining
8. Pressing
6. Roasting
Not all factories from bean
Depending on the process production with other stages This is because many different to become the of the production could provide
productionChocolateProcess line forthemanufacturingproc
The cocoa liquor and cocoa butter are then mixed with various quantities of sugar, milk, milk powder, and flavourings (ratios vary depending on whether milk, white or dark chocolate is being made). This mixture is then blended to reduce the particle size of the added ingredients
9. Blending and mixing
4. Pasteurisation
5. Drying
aSometimessoldtootherchocolaThesemachinesreincreasinglycombined millstonesBeaters
Heat source
Sunlight exposure
In this first stage of the process, the cocoa is delivered, weighed and transferred to a large container known as a hopper. Here, the fermentation process begins. The beans are aerated so that the cocoa pulp clinging to the beans matures and turns into a liquid, which is allowed to drain away so that the chocolate flavour can begin to develop in the beans.
2. Cleaning and destoning
factories produce chocolate bean to bar
source Wire
13. Tempering
14. Coating, enrobing & moulding
factory size or brand, some machines within production line may be separate, combined stages to make one machine, or not present at all. because the chocolate often travels between different factories before ending up with the brand the finished product. This means elements production line may be done elsewhere and additional opportunities for distributors.
12. Holding tanks
The paste is then channelled into holding tanks, where it is mixed constantly and kept at a temperature of 45°C to prevent the chocolate from cooling into a solid form.
cessatiers
Circular
The refined chocolate paste is passed into a circular conche where it is aerated and coated with fats and flavourings to create the desired taste. Cocoa butter and emulsifier are added to keep the paste at the desired consistency.
1. Cocoa delivery and fermentation
forthefinalstagesofproductionReturnedtobrandmanufacturer These elements maybedoneinthe country of origin(cocoabeanstopaste) Grinder Beaters millstonesor Hopper Hopper VacuumscreensMesh De stoning
13
11. Conching
Depositorsconveyormeshbelt
3. Grinding
The first grind of the cocoa beans uses beaters or millstones, which, through a combination of heat and friction, reduce the cocoa beans to a thick, chocolate-coloured liquid or ‘mass’, which typically contains between 53 58% cocoa butter. Cocoa butter is the raw material for the production of all types of chocolate.
The chocolate is transferred from the holding tanks, heated again to 45°C before being cooled to 30°C for dark chocolate and 29°C for milk chocolate. Tempering stabilises the fats in the chocolate and gives chocolate its traditional glossy surface.
Next comes the cleaning phase. Firstly, the beans are transferred from the hopper and passed through a series of sieve-like vibrating mesh screens, which remove any large foreign objects and debris. Then the beans are vacuum-brushed to remove smaller particles of dirt, before being passed through an electromagnet, which removes any metallic substances. Finally, a specialist destoning machine is used to remove any remaining traces of dirt.
The tempered chocolate is distributed through an enrober which layers the food product (nuts, fruit, toffee, etc.) placed on the wire mesh conveyor belt with a continuous coating of chocolate. For shaped confectionery, chocolate is deposited into moulds along the conveyor belt. Depending on the desired product, sometimes both machines are required.
conche
Heat
exposure
• Tubing – various stages within the production line may need to be ferrous, non-ferrous or stainless steel depending on the stage within the production line
• Namur valves
• Pneumatic – filters, regulators and lubrication (FRL), tubing, actuators etc.
(include products
Ball refiners
• Conveyors – polymer, stainless steel, 'noiseless'
• Replace ball refiners in mill. SOV: 10k€ per mill. There may be 4 – 12 mills.
• Mechanical Power Transmission (M.P.T.) –sprockets, pulleys, guides, belts, chain etc.
2. Key product groups from 1)
Key critical projects have been highlighted in this schematic to make it easy to identify which areas of the production line have most opportunity.
• ball
• Continuous oven
Critical projects
•
3. Key product groups (include products from 1 and 2)
• Stainless conveyor
• Seals
source Pasteuriser
• M.P.T power(mechanicaltransmission)
Heat
• Food-grade bearings and polymer housing
Pilot
Specialbearingsgrease for high temperatures
Other typical product groups to look for in the production line include:
• Replacement of
(cylindricalbearings or SOV:balls).20k€
SOV:pressure.withstandbeltsspecialto15k€
Ball mills or roller systems
• Geared motors
Process
SOV: 5k€
14
Blender Blender rollersSteel Re ner rollersSteel Re ner
Pressing
forthemanufacturingproc aSometimessoldtootherchocolaThesemachinesreincreasinglycombined millstonesBeaters
Deep-groove
• Replace chain with
Heat resist PU chain valves
• Pneumatic valves
Annual maintenance of wear and tear for ball mills and cutting blades.
SOV: 8k€ p.a.
salesapproximateAccordinginthe
SOV:product.contactseepagelubricationPreventingorwith15k€
productionChocolate line
• Pneumatic tubing and fitting (heat resistant)
5-year supply of lubricated bearings, shafts, oil and grease.
The opportunities and projects found in the process of production
Sunlight
• Motors
•
• Food-grade lubrication – some parts of the process use the chocolate product itself as lubrication
Critical projects
•
Radial deep-groove ball bearings
Water pressure piping ISO and electrical actuators Guided sliders
Vibration control
Drum Brushlesstensionersmotors
•
M.P.T. power(mechanicaltransmission)
Couplings
Critical projects
Thermochillers
Cutting blades
•
Compressed air ferrous)Tubingproduction(usually
•
Chain
•
Belts
4. Key product groups (include products from 1, 2 and 3)
•
•
•
monitoringTemperature
•
1. Key product groups
•
Critical projects
• Replacing 'run-dry' pumps with self-lubricating pumps.
• Maintenance of the moulding machine due to contamination of chocolate dust. SOV: 10k€
•
Geared motors Bucket elevators Pneumatic 2 port valves & associated fittings and tubing
• that can withstand 400 0 C. SOV: 50k€ per OR.
•
High profile SOV: 700k€ per pump. Low profile SOV 5k€ per pump. There can be as many as 30 pumps at this stage.
•
•
Stainless steel and PU conveyors
• On average 5-10 belts and/or chain need replacing at this stage annually. SOV: 10k€
Process valves
• Replacement of belts to adapt to temperatures. SOV: 2k€.
Special seals
15
•
•
cessatiers forthefinalstagesofproductionReturnedtobrandmanufacturer These elements maybedoneinthe country of origin(cocoabeanstopaste) Grinder Beaters millstonesor Hopper Hopper VacuumscreensMesh De stoning Circular conche Heat source Wire DepositorsconveyormeshbeltAccording to industry experts, the approximate value of aftermarket the confectionery industry 100m€is: **Please note that all figures represent the Scale of Opportunity value (SOV).
Linear motor or rotor actuators
M.P.T. (mechanical power transmission)
18. Foil wrapping and feeder
cooling Radiation and convection cooling Scales
There are two stages in the packaging process. The first stage is referred to as primary packaging, so-called because it is the layer of packaging in immediate contact with the product, and hence will be visible to the end consumer. In this stage the grouped chocolates are conveyed through a high speed automatic foil wrapping machine which encloses the product in various layers of foil wrapping, and if required a paper outer. Depending on the product, there may be multiple layers of foil wrapping.
Critical opportunities and projects that can be found throughout the packaging stage of the production line have been detailed below, specific to each machine along the production line. Due to the nature of chocolate production, there may be several stages to packaging as products may need to be individually wrapped, cartoned and then boxed together with other products ready for shipping.
16
16. Sorting and pick and place
15. Cooling transportingand
Water
Primary packaging
productionChocolate line
Primary Packaging
17. Weighing
The products are now arranged according to packaging group, so are placed onto electronic scales to ensure each package will be the correct weight.
The finished, enrobed or moulded product is now ready for sorting. Sorting robots sort the chocolate into the correct groups and ‘pick and place’ robots arrange the products ready for weighing.
Pick and place robot Key product groups Cooling and transporting Sorting and pick and place Weighing Foil wrapping and feeder • Bearings • Actuators • Conveyors • Belts • Motors • Air preparator • Valves • Grippers / vacuum pickers • Table slides • M.P.T. (mechanical power transmission) • Chain or timing belt • Nozzles • Thermochillers • High speed valves • Ionizers • Actuators
Key primary and secondary packaging opportunities and projects
The products are passed through a high-performance cooling mechanism which uses a combination of radiation and convection cooling (generated from above) and water cooling (generated from below) to harden the chocolate and prepare it for sorting.
Secondary packaging
20. Coding and marking
Secondary packaging is the term used to identify the layer of packaging designed to protect the primary packaging, so that when it reaches the end consumer it is intact and unblemished. In this phase, the primary packaged goods are passed through a cartoner – a high-speed packaging machine which forms cartons ready for coding and marking.
Part of the secondary packaging process is coding and marking, which describes the process of printing important information and data pertaining to the product on the secondary packaging. This information can include best before dates, lot numbers and barcodes.
Secondary packaging
Secondary packaging
Key product groups Carton and multi-wrapping Coding and marking Pallet stretch wrapping and conveying • Conveyor belts – flexi-link and rollers • Pneumatic valves Vacuum products and pads • Electrical and rotary actuators • Ionizers • Chain • Bearings • Conveyor belts • Chain without lubrication BearingsRollers • High speed electronic actuators • Conveyor belts • Chain without lubrication BearingsRollers • Valves • Ionizers • Lock-up actuators • Vacuum Critical projects for packaging • Annual estimate of chain replacements in the SOV:5-yearSOVmachinery.cutting5k€.estimate.10k€ • Maintenance for ball, needle and roller SOV:bearings.10-15k€ • Replacing or upgrading linear drives during the sorting, pick and place stage of the production line. SOV: 34-40k€ • Changing gearboxes in the line. SOV: 10-15k€ • Replacing metal parts with plastic to reduce applicationSOV:andimprovenoise,cleanlinesssaveenergy.2k€per • Potential savings for manufacturing and process sites when redesigning drives for air handling units of 20-100k€ p.a. **Please note that all figures represent the Scale of Opportunity value (SOV). 17
19. andCartoningmulti-wrapping
Secondary Packaging
The cartons are then passed through automated stretch wrapping machines which bind together groups of cartons in protective wrapping ready for conveying and shipping to distributors.
21. Pallet stretch wrapping and conveying
forthemanufacturingprocess aSometimessoldtootherchocolatiersThesemachinesreincreasinglycombined forthefinalstagesofproductionReturnedtobrandmanufacturer These elements maybedoneinthe country of origin(cocoabeanstopaste) Wire Depositorsconveyormeshbelt Water cooling Radiation and convection Grinder Beaters millstonesor Heat source Hopper Hopper VacuumscreensMesh De stoning Pasteuriser Sunlight exposure Pressing Blender Blender rollersSteel Re ner Circular conche Heat source rollersSteel Re ner Ball mills or roller systems Confectionery production line - ‘Putting it all together’ Process Key customer challenges Opportunities throughout the production line • Cleanliness • EnergyNoise saving Plant environment • Eliminating the need for lubrication oil to reduce waste • Cleanliness • Hygienic design – opportunities to upgrade older machines Food-grade lubrication and measures to prevent contamination as machines come into contact with food • Stainless steel after pastuerisation only Summary product groups • Belts, particularly polyurethene • Gearboxes • Motors • Bearings, housings and accessories • Personal Protection Equipment (PPE) • Tools and general maintenance • Synchroness belts • Stainless steel chain • Pneumatics • Seals • Linear ball screws 18
Secondary packaging Secondary packaging Secondary packaging convectioncooling cooling Pick and place robot Scales Primary packaging Packaging Bearings & (c-parts,OtheraccessorieschemicalTransmissionPowerElectricalProcessesServicesetc.) GearboxSeals&motors Linear 20% 18% 12% 10% 5%7%7% 5% 5%3% Mechanical (belts,TransmissionPowerchain,couplings etc.) &Pneumaticshydraulics Tools & equipmentmaintenance 8% ranging from 50k€ - 160k€ per plant A view from the factory floor Proportion of replacement products in the line An average plant can produce 15k tonnes of chocolate per annum The approximate value of aftermarket sales in the confectionery industry100m€ 19
Using this document to develop business
• How many other plants does this manufacturer have in your region/territory?
The Producing Company – makers of the ‘confectionery’ itself [End User/Brand Manufacturer]
• How big is their purchasing team?
• What do you already know about the size of the plant?
• What kind of support material do you need to take with you?
• How many people do they employ?
For many of these questions you may already know the answers. Others might be used on a regular basis when you visit customers and prospects in other industry sectors. It is meant as a resource to act as a prompt and reminder allowing your business to fully capitalise on this market intelligence and production information.
The Machine Builders – makers of the installed [or to be installed] machines
• What is the plan for follow ups to this meeting (further meeting/proposal/meeting with other people)?
• How many machines do they make in a year?
• What is their role or speciality (plant maintenance/repair/electro-mechanism/purchasing)?manager/
• What is their market share in this sector?
• What do you already know about the lines it has (chocolate, sugar, gum, pastilles)?
There are three parts that deal with:
3. The follow up – questions to ask or to reflect on, at the end of the meeting or afterwards
Preparing – before the visit
• How old is the plant?
• What should the agenda be?
PART THREE
The following provides the reader of this document, either General Management or Sales Team, with some template questions to help to generate revenue from this Production Line Intelligence overview and so, develop business in the confectionery industry.
General
2. The meeting – questions to ask during the meeting to understand the needs, requirements and potential sales opportunities in the prospective customer
• What are the primary objectives for the meeting – what is ideally wanted to be achieved (keeping in mind that this meeting might be about preparing for a further meeting not simply to get an order this time)?
• What are the fall-back objectives if the primary objectives are unachievable?
• Who is to be seen?
a. Detail of the company itself
• Who are their main customers?
• What can be summarised as the main challenges they face in relation to purchasing the types of products you can supply?
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• What machines do they make?
• What kind of questions should be prepared (in relation specifically to who will be seen)? (hint – check out some of the general questions below)
• How many maintenance engineers do they have?
• What type of machine manufacturer are they (complete production line/process/packaging)?
1. Preparing (before any visit takes place) – this provides questions to think about and address before attending the company’s site. This further breaks down into two sections being:
b. The people to be seen and which department
• What type of confectionery production plant are you about to visit (bean to bar or only certain stages of the complete production line)?
• What kind of ‘aftermarket’ service do they provide to their customers e.g. spare parts, training, maintenance?
• What is known about them already? (hint: search LinkedIn)
• What do you already know about its production in terms of capacity, number of lines, output etc.?
The people to meet
• What kind of support do you look for from your distributor in relation to planned maintenance?
• What are the ‘bottlenecks’ in the production process that affectWhatspeed?arethey caused by?
Are there on-going projects to deal with this? Are you using partners – suppliers or distributors – to assist you in this process?
• What non-production related maintenance issues do you have to manage/deal with e.g. in relation to HVAC?
• What are the main challenges faced in your production line?
• What are the next steps you need to take and when?
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• What are your main issues in relation to maintenance?
• What are the next steps?
The actual meeting ‘Producers of the confectionery’
• What is your biggest current problem with your parts suppliers?
• Do you have flexibility in the choice of supplier, or does the End User specify exactly?
• What is the opportunity in the ‘aftermarket’ in the service provided?
• How many production lines are there?
• Where is the line most prone to failure or maintenance problems?
Do you expect this to change in the near future?
• Are there specific engineering or technical solutions that a technical distributor or integrator could assist with?
• In what way might we help with any of this?
The follow up
• How are you going to use this information?
Are existing partners – suppliers or distributors –Howassisting?doyou want your supplier partners to assist?
• Who in your business do you need to share this information with?
When does your seasonal production start (if applicable) and how do you respond to the change in product varieties?
How can these be replicated?
• Are there major problems or 'bottlenecks' in the production that you would like to speed up?
The actual meeting ‘The machine & sub-assembly machine builders’
What have been the success stories?
• What is the estimated annual spend on that maintenance?
What key plans, changes or adaptions are there in production that you are able to share with us?
• What do you value most in relation to a supplier like us?
• What level of supply is required and how does the existing supply chain work?
• How will you complete these?
• In what way can we help you with any of this?
• What parts do you particularly utilise most on an annual basis?What are the issues/challenges you have with getting those parts?
• Do you manufacture the complete production line for a confectionery plant or do you provide specialist machines or sub-assembly for other manufacturers?
• Are there problems with the existing supply chain –speed, timeliness, quantity, quality, etc.?
• What sort of regular maintenance does the plant undergo?
• How are you going to store this information?
What type of production line are they (chocolate, hard or soft sugar confectionery, gum)?
• What sort of plant is this (bean to bar/refining/wrapping and packing only)?
• What are the key maintenance/industrial supplies objectives for the plant?
• How much of the production process is reliant on manual input or automation?
(If not already known, any of the preparation questions above can be asked during the meeting to establish plant type, size, capacity, age, type, as noted)
• What projects are being currently carried out in relation to maintenance or energy management etc?
• What are your main concerns in relation to type of production parts that you need to maintain and improve the line (e.g. bearings, mechanical power transmission, pneumatics, seals etc.)?
• What type of machine is built by your company?
• What were the main points you learned from the visit?
• What other types of follow up will you undertake and why?
• How will you ensure that these follow ups are completed?
• What is the range of parts required?
Sources: 1. IndustryARC, ‘European Confectionery Market Forecast (2017 2022)’ 2. Cloetta. ‘Market Overview’ 3. Frost & Sullivan, ‘Global Processed Food and Beverage Market Outlook 2017’ 4. CAOBISCO, ‘2014 Key Data of the European Sector’ 5. Frost & Sullivan, ‘Global Processed Food and Beverage Market Outlook 2017’ 6. Ibid. 7. Confectionery News, 'Seasonal Offerings Tops Chocolate NPD in 2016, Mintel Research Shows' 8. Statista, ‘Sales Value of Confectionery in Selected European Countries, 2015' 9. Statista, ‘Seasonal and Non-seasonal Confectionery Sales Valuein Selected European Countries, 2015' 10. Statista, ‘Expenditure on Chocolate Per Capita in Selected European Countries, 2015' 11. Investopedia, 'Four countries that Produce the Most Chocolate' 12. Statista, ‘Seasonal and Non-seasonal Confectionery Sales Valuein Selected European Countries, 2015' 13. Forbes, 'The World's Biggest Chocolate Consumers' 14. EuroMonitor, ‘Key Trends and Drivers in Global Sweet Snacks Consumption’ 15. EuroMonitor, ‘Innovation and Opportunities in Indulgence Products’ 16. EuroMonitor, ‘Key Trends and Drivers in Global Sweets & Snacks Consumption’ 17. Bakery and Snacks, ‘Mars Launches M&M’s, Bounty and Galaxy Trail Mixes in UK’ 18. EuroMonitor, ‘Innovation and Opportunities in Indulgence Products’ 19. Confectionery News, ‘Confectionery Industry Open to EU-wide 250 Calorie Cap Per Portion’ 20. Business Wire, ‘Research Markets European Confectionery Market Report 2015 2019' 21. Nestlé, ‘Reducing the Impact of Packaging on the Environment’ 22. Edie, ‘Mars Slashes Environmental Impact with Renewable Energy Surge’ 23. Food Manufacture, ‘Sugar Tax on Soft Drinks may be extended in UK’ 24. CTA Intermediate Technology Publications, 'Small-scale Food Processing' 25. Statista, ‘Net Sales of the Leading 10 Confectionery Companies Worldwide’ 26. Bühler Group, ‘About Bühler’ 27. SOLLICH, ‘The Company’ 28. Schubert, ‘Company Profile’ 29. Barry Callebaut, 'At A Glance' Disclaimer: The costed examples contained in this document are illustrations taken from real practice. They are, however, not predictions of future value achievable from various projects that can be undertaken in this sector. The authors, contributors and EPTDA do not accept any liability for any commercial decisions that may be taken as a result of these examples.
Acknowledgements
Also to a number of technical experts from production companies and technical distributors operating in the sector, who have provided the concrete examples included in the text. without whose contribution the document would lack its operational and commercial relevance and power.
Finally to key members of the EPTDA ‘Know Your Market Committee’, and particularly its Task Group, who have freely given their advice, guidance and inputs throughout the process of producing this document.
Authored by:
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Acknowledgements and a sincere thank you to the following manufacturer members of EPTDA for their contribution, the generosity of information and technical advice supplied.
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