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April 2014

Arla Foods invests in sustainable growth

Food & Drink Business Website:

C o n t e n t s



PepsiCo’s European growth is sluggish as ‘Power of One’ strategy challenged.

Further sustainable growth at Lamb Weston/Meijer.

- 75 B REWING - 8-15 T RADE FAIR Extensive supporting programme for Interpack 2014 - 8-14 May – Düsseldorf.


Indra Nooyi, CEO, PepsiCo.

SABMiller attracts ‘MegaBrew’ deal speculation.

P AGE 24

Peter Lauritzen, CEO, Arla Foods UK.

- 88 M ERGERS & A CQUISITIONS Coverage of British and international deals.

Interpack 2014 Previews.


- 17-41 C OVER S TORY

Materials & Ingredients . . . . . . . . . . 6, 59-61


Bottling & Packaging7, 11, 46, 51-53, 56, 57, 74

Alan Clark, CEO, SABMiller.

Materials Handling . . . . . . . . . . . . . . . 12-14

Arla Foods invests in sustainable growth.


Arla Foods UK consolidates its market leadership position.

Nelson Peltz, CEO, Trian Fund Management.

Quality & Safety . . . . . . . . . . . . . . 15, 77-87 Processing & Manufacturing . . . 42-45, 66-73 Control & Automation. . . . . . . . . . . . . . . . 47 PAGE 88

Sustainable and responsible growth at Arla Foods.

Transport & Logistics . . . . . . . . . . . 47 & 64 Energy & Environment . . . . . . . . . . . . . . . 58

Arla Foods unveils new strategy for sustainable dairy farming. Arla Foods to serve 25 billion glasses of milk in 2014.

Bob KunzeConcewitz, CEO, Gruppo Campari.

Managing Director: Colin Murphy Editor: Mike Rohan Group Operations Manager: Sylvia McCarthy Advertising: John Bent & Ian Stewart Production Manager: Sylvia McCarthy


- 48 D AIRY

Peder Tuborgh, CEO, Arla Foods.

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Top 10 Dairy Companies in Europe.

Danone launches new global campaign to rejuvenate Activia brand.

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PepsiCo’s European Growth is Sluggish as ‘Power of One’ Strategy Challenged Although PepsiCo Europe is one of the continent’s leading food and beverage companies with turnover of $13.75 billion in 2013, growth is sluggish. mploying over 60,000 people and serving almost 900 million consumers across 11 time zones and 45 countries, PepsiCo Europe’s geographical reach extends from Portugal eastward to Russia, and from Norway as far south as Turkey. PepsiCo Europe offers more than 200 brands, including PepsiCola beverages, Frito-Lay snacks, Tropicana juices and Quaker food products, as well as well known regional brands such as Walkers crisps, Copella, Paw Ridge, Snack-a-Jack, Duyvis, Tasty, Matutano, Sandora, Yedigun and Lebedyansky juices. PepsiCo Europe ranks second in carbonated soft drinks but holds European market leadership in savoury snacks, juices and ready to drink tea (through its Lipton joint venture with Unilever). Accounting for 20.7% of group sales and 13.3% of group operating profits in 2013, PepsiCo Europe is one of four major divisions within the PepsiCo group: The others are PepsiCo Americas Beverages, PepsiCo Americas Foods and PepsiCo Middle East and Africa.

closer to the goal of building a $30 billion nutrition business by 2020. PepsiCo has been seeking to extend the ‘healthier’ products within its portfolio, which was traditionally dominated by fizzy, sugary drinks and salty snacks.


PepsiCo Europe offers more than 200 brands, including Pepsi-Cola beverages, Frito-Lay snacks, Tropicana juices and Quaker food products, as well as well known regional brands such as Walkers crisps.

European Development PepsiCo began to widely expand its distribution in Europe in the 1980s, following its successful transition into Eastern Europe in 1966. The US-based beverages and snacks giant significantly expanded its presence in

Indra Nooyi, chairman and chief executive of PepsiCo.

Eastern Europe, with the $5.4 acquisition of Wimm-Bill-Dann Foods, Russia’s leading branded food and beverage company with leading positions in dairy products, baby food and juice, in December 2010, following the earlier acquisitions of Lebedyanasky, a popular juice company in Russia, and Sandora, a Ukrainian juice company. The Wimm-Bill-Dann Foods deal has been transformational for PepsiCo, marking its largest ever international acquisition and making Russia its second largest market behind the US. Generating revenues of about $5 billion in Russia, PepsiCo is approximately twice the size of its nearest food and beverage competitor in the country. The WimmBill-Dann Foods acquisition, with its strong dairy business, has also raised PepsiCo’s annual global revenues from nutritious and functional foods from about $10 billion to nearly $13 billion, taking it FOOD & DRINK BUSINESS EUROPE, APRIL 2014

Expanding Sales Of course, PepsiCo is using its strong presence in Russia as a base for expanding sales further into neighbouring markets. PepsiCo Europe is investing heavily in Eastern Europe in order to reach around 350 million consumers in the Russian, Eastern European and Central Asian markets. It is also concentrating on improving efficiency and competitiveness in its developed market in Western Europe to maintain market share and profitability. The productivity programmes are designed to enhance cost competitiveness as well as generate funding for future brand building and innovation initiatives. For instance, PepsiCo Europe recently invested Eur50 million at its Polish plants

PepsiCo has become the largest food and beverage business in Russia following its $5.4 billion purchase of dairy and juice company WimmBill-Dann.


in Grodzisk Mazowiecki and Tomaszow Mazowiecki, and also opened a Eur20 million state-of-the-art potato chip production line at its plant in Backi Maglic in Serbia, which produces the Marbo brand. To support its quest to develop healthier products, PepsiCo Europe has invested more than Eur20 million in a flagship European R&D centre at Leicester in the UK, which employs 100 scientists and is dedicated to creating new snacks for the European market. PepsiCo Europe has also opened a Eur15 million fruit and vegetable R&D innovation centre in Hamburg, Germany. Elsewhere in Western Europe, PepsiCo Europe has invested £23 million since 2011 in expanding its Quaker site at Cupar in Scotland, to boost capacity as the demand for oats continues to rise. Financial Performance In its 2013 financial year, PepsiCo Europe reported a 2% rise in net revenue to $13.75 billion with organic growth of 3.5%, chiefly reflecting effective pricing. Operating profit at constant currency was flat as revenue gains and productivity savings were offset by higher commodity costs. Reported operating profit at $1.29 billion was negatively impacted by $26 million by incremental investments, leaving the figure 3% lower than in 2012.


PepsiCo generates revenues of about $5 billion in Russia.

‘Power of One’ Strategy PepsiCo Europe, like the other regional businesses, pursues a ‘Power of One‘ strategy. This entails running the group’s beverages and snacks operations as one business. Over a number of years, PepsiCo has significantly expanded its presence in faster growing developing and emerging markets. It has also been adapting its portfolio of beverages and snacks to include more nutrition and healthy offerings, while reducing calories and sodium in key products to address growing consumer concerns with health and wellness. PepsCo has invested in developing its 22 billion-dollar brands, which account for more than


70% of total group revenue. The portfolio, according to Indra Nooyi, chairman and chief executive of PepsiCo, “is evenly distributed across snacks and beverages; both of which are attractive global categories. Within these categories sits a highly attractive portfolio of nutritious products, including brands like Quaker in grains, Tropicana Naked in fruits and vegetables, and Gatorade in sports nutrition.” PepsiCo’s geographic footprint is similarly well balanced, with 35% of net revenue in high growth developing and emerging markets, and about two-thirds in stable, highly profitable, developed markets. Indra Nooyi adds: “Our portfolios are also truly better together, or what we refer to as, the Power of One. Our entire portfolio is focused on taste and convenience. Our products are purchased together and consumed together. Our presence in beverages supports our snacks growth.” She elaborates: “And the heft of our portfolio positions us as the largest food and beverage business in many of our key markets, and this makes us a key partner to retailers and food service customers. We realize $800 million to $1 billion in annual savings by operating our business as one.” Splitting the Business However, PepsiCo has been accused of

underperforming its food and beverage peers in both EPS growth and profit margin by well-known activist investor Nelson Peltz, chief executive and founding partner of Trian Fund Management, which currently owns about $1.2 billion shares in the global beverages and snacks group. Trian is advocating splitting PepsiCo’s global beverages and snacks businesses as the best path forward to generate sustainable increases in shareholder value. Trian maintains that PepsiCo’s continuing underperformance since 2006 is due primarily to a misguided reliance on the “Power of One” strategy. Trian believes separating snacks and beverages into two independent public companies will maximize value. Trian points out that when it publicly advocated a separation of snacks and beverages in July 2013, PepsiCo shares traded up to approximately $87 per share. Following the decision by PepsiCo management against a separation of snacks and beverages, the share price has retreated to $77 - a loss of approximately $15 billion in market value. Trian maintains that there is little evidence that ‘Power of One’ drives improved performance around the world. Indeed, its analysis suggests that there does not appear to be statistical data supporting the claim that in countries where either beverages or snacks has a market leading presence, the other category is more likely to gain market share over time. Furthermore, Trian contends that PepsiCo’s 10.1% EBIT margin outside the Americas is extremely low for a $20 billion+ revenue business where a significant portion of sales comes from beverage concentrates, snacks and mature markets in Europe. According to Trian, PepsiCo’s international margins should be significantly higher than they are today. Trian insists that significant value can be unlocked when large companies separate businesses to create focus, citing the recent Kraft/Mondelez spin-off as an example. Indeed, Nelson Peltz, recently joined the

Nelson Peltz, chief executive and founding partner of Trian Fund Management.

board of directors of Mondelez International, the $35 billion global snacking and beverages group, which was created in October 2012 after being separated from Kraft Foods’ North American grocery business. Right Course Indra Nooyi is convinced that PepsiCo with its ‘Power of One’ strategy is on the right course. “We have fundamentally changed the profile of the company. Our product profile has grown from fun-for-you to a more balanced offering of good-for-you, better-foryou, and fun-for-you products,” she says. The PepsiCo chief continues: “Geographically, we've shifted PepsiCo to a company with a more balanced global foot-

print. And our culture has shifted from a decentralized one with businesses operating completely independently, to what we refer to as connected autonomy; a model that combines the best of an entrepreneurial ownership culture with the benefits of global scale and coordination. As a result, PepsiCo today is positioned to deliver, over the long term, top-tier financial performance and value creation for our shareholders.” J

Embalance® – The Next Potato Generation s a leading manufacturer of potato flakes and granules, Emsland Group is A stepping up its production in Cloppenburg, Germany, this summer, by becoming the biggest flakes factory worldwide. Emsland Group is also starting a new flake factory at its head office in Emlichheim which will

eventually produce 15.000 mt of potato flakes. Emsland Group has a strong focus on growth in the snack industry. Due to local contract farming, it is able to grow the potatoes variety - and sugar specific. Emsland Group’s latest innovation in the field of dried food products, so-called dehydrates, is the Embalance® range. These special potato flakes use a newly-developed and patented physical production process without the use of additives. The products are low in undesirable by-products such as sugar, asparagine and glykoalkaloids. Initial application and production tests in the snack industry have confirmed that it is possible to control the expansion behavior and the sugar and asparagine content in extruded food products using potato-based Embalance® products. This enables the production of largely acrylamide-reduced and thus healthier foodstuffs. Besides this, Emsland Group has vast experience with acrylamide reduction and several solutions for this topic. Alongside the production of potato-based ‘health and clean label products’, this newly developed process has also been used successfully for the production of dehydrated peas resulting in low-sugar and low-fat pea

flakes which are additionally rich in dietary fiber. To learn more about Emsland Group’s snack innovations contact J

One-stop Shop For Consumables – KIC Krones Expands its Product Range reweries and beverage plants all over the B world are seeking complete-range vendors, to avoid unnecessary interfaces. This also applies to all consumables that assure reliable functioning of the lines concerned. KIC Krones has always been known as a vendor of colfix adhesives for container labelling and packaging, colclean cleaning agents and celerol lubricants. The company has now unveiled a range of new cleaning and disinfecting agents including foam cleaners, conveyor lubricants, additives and disinfectants. For all products in its range KIC Krones has its own recipes, matched precisely to the need 6

of the process technology and filling lines involved. In the case of aseptic lines, for instance, the consumables are specified very precisely, to ensure the requisite functional efficacy. By eliminating the interface to a third FOOD & DRINK BUSINESS EUROPE, APRIL 2014

party, time can be saved when installing the lines; and shorter ramp-up times are also possible. The products have been optimally matched to the machines and lines involved, so as to prevent possible damage to the machines, and lengthy downtimes. Now that the product range for adhesives, lubricants, cleaning agents and disinfectants have been grouped together in the KIC Krones product portfolio, the beverage industry will, in future, be able to purchase all its consumables from just a single defined source. This aspect of the one-stop shop, in particular, creates substantial advantages for the users concerned. J


A New Look For Your Products t is with this precise idea in mind that Idepartment ACMI’s research and development replied to the new strategies elaborated by the company’s top management creating what was revealed as being one of the most interesting packaging surprises at the 2013 Drinktec exhibition in Munich. We are talking about the innovative system which does not use any glue or shrinking and which offers incredible production flexibility. What ACMI created completely complies with the marketing expectations, which necessitate offering appealing solutions to the market, along with the production which constantly looks to cater for highly performing systems with rapid payback and total ownership cost as low as possible.


ACMI’s commitment resulted in the creation of EASYPACK, a packaging system capable of producing packs with two, four and six elements with low impact on the environment, reduced energy and material consumption along with an interesting external appearance which is significantly better and somewhat different to the classic shrinkwrapped pack. Easypack can handle both round and square bottles, brik and cans in different configurations, be it either the so called logistic 2 pack, which is composed of six units, to the pack which is ready to be positioned on the shop shelves such as the ‘fourpack’, the pack with four elements or the ‘bipack’, containing two. Dimensions Easypack offers a very compact structure which does not require any particular

infeed or outfeed conveyors. This allows for an exceptional level of adaptability when inserting it into any type of layout, be it a new line or existing line requiring the substitution for example of an existing shrinkwrapper. Configuration The machine may be configured with two, three or four application heads. The function of every head is defined in the machine’s projection phase Two Easypacks positioned side by side. depending on the desired output. The base configuration foresees one single property and do not damage the labels head for the bipack whereas more sophisti- applied to the bottles maintaining the outcated outputs may require an application side appearance of the end product. Once head for four packs or six packs. The type the sleeves are removed, the single bottles of configuration depends on the produc- remain with their original labels perfectly tion speed and the type of pack preserved. desired. For example, it is possible to construct the Easypack with four Handle Application bipack heads , which prepare only Easypack may be directly connected to the packs containing two bottles making Viper handle applicator in this way formthe most of the maximum produc- ing a single system for pack formation and tion speed, or with two bipack heads handle application. With this configuraand a sixpack head to create a logistic tion the bottling line assumes a very compack composed of three bipacks. pact aspect as the Easypack along with the Flexibility and Promotion A key aspect, which is currently of major interest, is the possibility of catering for the various promotional initiatives with extremely contained costs and execution times. It is sufficient to substitute the sleeve in use with the new promotional sleeve and produce the required quantity based on the production schedule. This procedure may be carried out whenever necessary during all phases of the machine work cycle. The sleeve substitution is Packs produced by Easypack. carried out instantly, offering great flexibility in launching new promotions handle applicator is positioned immediateand handling packs on offer. ly at the outfeed of the filling-labelling block, followed by the palletiser with inteAppearance of the Pack grated stretchwrapper. Another important aspect is the quality of the packs produced by the Easypack which Energy Saving is decisively better than a shrinkwrapped The energy saving is evident, especially if pack, where creases are inevitable even you compare the Easypack with a tradiwith the best shrinkwrappers available. tional shrink wrapper. The absence of the Furthermore, the sleeves applied by the oven also improves the operator’s work Easypack make the best use of their elastic environment. J FOOD & DRINK BUSINESS EUROPE, APRIL 2014



Extensive Supporting Programme For Interpack 2014 – 8-14 May – Düsseldorf nce again in 2014, interpack is emphasising its role as the world’s most O important trade fair for the packaging sec-

The congress supports the fundamental aims of the initiative, which seeks to network key actors in business, politics and research to instigate a constructive dialogue between all parties. The ultimate goal is to develop solutions that will reduce food loss and waste along the food value chain.

tor and related processing industries. At the official deadline for registration at the end of February 2013, all the available spaces in the Düsseldorf exhibition centre with its 19 halls were already booked out. As in previous editions, from 8 to 14 May 2014 about 2,700 exhibitors are expected from industries ranging from food and beverages, confectionery and baked goods to pharmaceuticals and cosmetics, non-food consumer goods, industrial goods and related services. At the last event in 2011, there were 2,703 exhibitors and 165,000 visitors. New Parallel Event – ‘Components For Processing and Packaging’ Interpack is reinforcing its leading role by offering visitors innovative special topics alongside the extensive range of offerings provided by exhibitors. ‘Components for processing and packaging’ is an event being staged for the first time in 2014 as an additional exhibition for suppliers to the packaging industry. Companies who are engaged in drive, control and sensor technology, products for industrial image processing, handling technology, industrial software and communication, and complete automation systems for packaging machinery, are invited to exhibit in the Düsseldorf “Stadthalle” in Congress Center South (CCD Süd).

Manufacturers of machine parts, components, accessories and peripherals as well as those who manufacture components and auxiliaries for packaging means are also invited to grasp the opportunity to present 8

INNOVATIONPARC PACKAGING and the SAVE FOOD Theme Now a regular feature at interpack, the special show INNOVATIONPARC PACKAGING (IPP) 2014 will also be staged under the motto of SAVE FOOD. Participating companies from all stages along the value chain are invited to showcase their solutions for avoiding food loss and food waste. The special show presents practical approaches from areas such as packaging design, packaging materials and machine construction to fight the problem in concrete ways. their products directly alongside interpack during the first three days from 8 to 10 May. interpack visitors and exhibitors have direct access to “Components for processing and packaging.” And of course, the same applies vice versa. SAVE FOOD Congress On 7 May 2014, one day before interpack opens its doors, the SAVE FOOD Congress will commence in the Congress Center South (CCD Süd). This two-day event is directed at both non-profit organisations and industry. It highlights the topics of global food loss and food waste and explores the aspects involved, addressing a broad public audience. Building on the foundation established in 2011, interpack will thus again provide a unique international platform for exchanges between all those concerned with this critical issue. The SAVE FOOD initiative is a co-operation between the Food and Agriculture Organisation of the United Nations (FAO) and Messe Düsseldorf. It was originally launched in 2011 with a very successful congress staged parallel to interpack and is now being supported by the United Nations Environment Programme (UNEP). FOOD & DRINK BUSINESS EUROPE, APRIL 2014

METAL PACKAGING PLAZA 2014 Interpack 2014 will feature the METAL PACKAGING PLAZA in Hall 11. This special exhibition will be a meeting point for the international metal packaging community at interpack 2014. It is organised

by VMV (the German Metal Packaging Association) and Empac (the European Metal Packaging association). For the first time, exhibitors here will include packaging steel manufacturers such as ThyssenKrupp Rasselstein and ArcelorMittal under the umbrella of APEAL, the Association of European Producers of Steel for Packaging. In addition to the showings of the roughly 40 exhibitors, the METAL PACKAGING PLAZA 2014 offers an information platform with a forum, bar-lounge and meeting points. J


Innovative Packaging Concepts From Mondini Mondini S.p.A is a recG ognized world leader in Tray Sealing Systems and innovative packaging concepts. The family owned business based in Cologne, near Brescia, Italy has been trading for over forty years with the family completely involved in the business today. Started by Giovanni Mondini, the company has built an unsurpassed reputation and developed its business in all five continents of the world selling over 15,000 tray sealer systems. The success is built on an approach where performance, quality in design and construction, engineering standards and innovation have set the company apart from all others. The company has complemented their approach with tray handling systems, liquid-filling systems, and integration of external manufacturers’ equipment and snap-on lid systems. All of this, combined with a strong technical expertise, enables Mondini to deliver complete solutions to customers. Holistic View Putting the customer at the centre of every project and having a holistic view of each opportunity, has helped to build a strong, reputable brand in the market that is evident with the impressive list of customers now running Mondini systems. Over the last 15 years, the company has grown significantly, leading the move into Modified Atmosphere Packaging in meat fish and poultry with their innovative inline tray sealing technology. Mondini technology delivered high performance, pack security and control over the packaging process that was revolutionary in its time. Today, retailers and producers are placing new demands on packaging systems requiring them to meet stringent hygiene standards, be highly flexible, cost effec-

in packaging formats and systems based on the new Trave tray sealing systems with the groundbreaking PLATFORM Technology at their core. Mondini in-line technology revolutionized MAP in the meat, fish and poultry segments. Now the Mondini TRAVE PLATFORM technology is transforming the next generation of tray packaging systems and delivering real value throughout the whole food supply chain. tive, production efficient, safe and have the possibility to deliver many packaging options from one system. Consumers have also developed a deeper understanding of packaging technology, materials and processes and now have a strong voice as to what they want and expect. Concern for the environment is increasing year on year with a demand to re-use, recycle and reduce, a concept that is strong across all the food markets. Innovation In addition to these demands, innovation is a top priority from today’s decision makers. Innovation needs to deliver benefits at all levels in the supply chain before it can be recognized as adding value and become a reality. This is vital to producers especially when making their investment decisions as to which packaging system to choose. These new challenges are creating opportunities that Mondini engineers are relishing. The result is a portfolio of innovations


Trave Platform Concept The Trave Platform concept is based on a patented idea combining clever, innovative thinking with engineering excellence permitting multiple packaging formats on a tray sealer through simple component changes give unrivalled flexibility. This flexibility is achieved without any compromise on productivity, hygiene standards or process and product safety, resulting in a highly cost efficient packaging system. Packaging technologies include MAP, Slicepak®, Mirabella®, Vacuum Skin, Protruding Skin, Super Protruding Skin, Darfresh® on Tray, Stretch Lidding, Pre formed/cut lids, Hybric 3D cardboard vacuum skin which are all available on the Trave tray sealer. With their extensive experience Mondini engineers have instilled their knowledge and know-how into these new packaging systems giving producers and retailers a reliable, proven packaging system to meet the continually changing demands from the market and consumers. G Mondini will be demonstrating their Trave Tray Sealing with Platform Technology at Interpack Dusseldorf 2014 in hall 8b D74 and will be pleased to discuss how this technology can deliver real value to your business. J 11



Clean, Safe Conveying – The New Wide Belt Solution t Interpack 2014, FlexLink will unveil A its latest innovation, the WLX modular wide belt conveyor in stainless steel, for safe, clean handling in primary and secondary packaging for the food industries. For operators, the cleaning process is fast and easy and the new wide belt stainless steel conveyor, WLX, sets new standards for cleaning results and cleaning process time.

“We are extremely proud of this design, because we’ve succeeded in optimizing both product safety and hygiene to a very high level, following the industry requirements and regulations. For instance, flat surfaces

have been eliminated and there are no hollow bodies or crevices to prevent bacteria from growing,” comments Tommy Karlsson, Product Manager for the stainless steel conveyor platforms. The new conveyor is safe, silent and ergonomic and it is easy for the operators to lift the chain for cleaning and the interior design remarkably clean. Operator safety has been served for by a thorough design work resulting in minimal openings to prevent pinch points, and absence of sharp points and edges. Finally, the noise level is comfortably low to the benefit of the factory environment. Reduce the Cost of Ownership With the innovative design and the refined standardization, factories will benefit from good hygiene and a trouble free operation. The total cost of ownership is considerably reduced by features of the new design and sophisticated solutions. A good example is the quick and efficient cleaning process which saves substantial

amount of the available time of the production line. The easy lifting of the chain and good access to the interior with clean surfaces makes a difference and the cleaning time can be reduced by as much as half. The lead time from design to installation is very short thanks to the standardized and modular design combined with FlexLink‘s global distribution network and short delivery time. Once installed, downtime is minimal due to the robust design, and there is minimal power, water and detergent consumption. All this helps lowering the total cost of ownership. J

SpiralConnect From AmbaFlex mbaFlex delivers the SpiralConnect concept which combines the benefits of A both the unique and reliable SpiralVeyor®

complete the transport of products from A to B.

and the flexible AmbaVeyor in one solution. In every project in which a SpiralVeyor® is involved infeed and outfeed conveying systems are preceding to

One Stop Shopping The SpiralConnect concept allows you to combine both the SpiralVeyor® and the connecting conveyors to one conveyor solution, one belt type, one drive, from one hand, leaving complex integration behind. All in One The well-known SpiralVeyor® can be extended on each end with many meters of belt. SpiralConnect aim for integrated conveying lines, which reduces the amount of transitions. Gentle handling and no disturbance of the product result in high uptimes. Integrating spiral elevation, straight and curved belts load to easy integration: no transfer adjustments, no syn-



chronization of belts and reductions of motor drives lead to less controls within the system, which leads to low costs and high reliability. Cost Effective SpiralConnect is based on the same technology for both elevation and conveying, cutting the number drastically of spare parts to stock. Maintenance is easy resulting in high uptimes. Reductions in costs and handling times are the motives in the materials handling process. J



Span Tech Europe – Flexibility at its Very Best

oday, material handling systems have T become a fundamental part of a flexible manufacturing system, they must adapt to the product and production process, not the other way around. Span Tech Europe provides custom systems for the packaging, food, beverage, pharmaceutical, cosmetic, wholesale, manufacturing and distribution industries, with about two-thirds of the company’s business currently concentrated in the packaging, food and beverage arena. “One of the unique qualities of Span Tech is that we manufacture everything ourselves,” explains Enrico Berlenghi, Span Tech’s EMEA Director. “Most of our competitors buy parts and then assemble them together to provide solutions. However, the founder of our company had the wish to build the most efficient conveying system possible. To do so, we have engineered, designed and produce every single piece in-house to work perfectly together.” Efficiency Through Engineering and Design Span Tech’s systems offer the most innova-

tive technology and flexibility of conveyor design in the industry. “We had to build a conveyor system that was better than anything else you could buy,” asserts Bud Layne, Span Tech’s founder and CEO. “We began to figure out a different conveyor design – one that was completely different than what we had. The result was a conveyor that has a tremendously long life in the field, hardly any maintenance, running trouble free year after year after year. I want it to run better than anything in the world, and it most certainly does.” Continuous Innovation Among Span Tech’s variety of innovations and custom-made solutions, certain examples stand out as clear advances in the material handling industry. The Span Tech TranSorter is a new system due to be launched in Europe later this year. The TranSorter is a sortation product designed to handle products that are traditionally difficult to convey and sort – referred to in the industry as “non-conveyable.” The TranSorter utiFOOD & DRINK BUSINESS EUROPE, APRIL 2014

lizes Span Tech’s MicroSpan chain in concert with extendable nose technology to create openings while the conveyor continues to move forward, gently depositing items into a tote or onto a tilting device or cross-belt conveyor. This boundary-pushing technology seamlessly integrates with Span Tech’s other conveyor systems to meet specific needs, including end-of-line shipping, goods-to-man fulfilment, inbound sortation and returns processing systems. The modular design comes in both 300mm and 600mm widths.

Another example of Span Tech’s efficient solutions is the Topper Lift, designed to lower or elevate product while preserving product orientation. The upper chain drapes down and rides on a lower transport conveyor, acting as a moving top keeper to allow a much steeper angle of transport. “The chain hangs freely and comes into contact with the product, and because of this, we are able to achieve incline angles of 60 degrees or even more, depending on the product,” explains Keith Thomas, Research and Development Director. “The flexible chain allows us to run various shapes and sizes of products even in a continuous production run.” Like the TranSorter, the Topper Lift is also capable of handling “non-conveyable,” doing so within a compact footprint and with no adjustments needed. True Modularity Although more than 85 percent of the solutions Span Tech delivers are custom13


“We are already a leader in the North American markets, and our motto is ‘Once you go Span Tech, you never go back.’ Once the superior quality of our conveyors is seen throughout Europe, there is scope for expanding our market and building relationships with new partners.”

made, these solutions incorporate proven, modular components and assemblies. “We observe the rules of symmetrical design, where a left-hand part is interchangeable as a right-hand part,” Bud Layne points out. “From a reasonably small number of parts, we can make a very wide variation of conveyors. That lowers your investment cost and increases your field flexibility.” Given a few details – product specifications, rate, environment, temperature limits, speeds, weights and positioning – Span Tech will offer a system that will comply with your customers’ expectations, needs while ensuring a perfect flow and no product damage. “We can customise because we have the flexibility not to impose and push our range – we adapt to the needs of the product and equipment,” Enrico Berlenghi adds. “This is what makes the difference.”

Exceeding Expectations Berlenghi is proud to point out the prevalence of repeat customers that Span Tech enjoys. “The return business to Span Tech is extremely high,” he emphasizes.

Streamlining Software Another of Span Tech’s advantages is its selection of proprietary software. “For the past 30 years we have developed and refined our own proprietary software packages,” Keith Thomas explains. “We have one for estimating, one for designing, and one for checking validity of designs. These programs – Estimator, Navigator and TorqueMaster – use the engineering principles that have been developed over the years. This allows us to create estimates and approval drawings very quickly.” The fact that Span Tech’s technology has been proven over time is yet another strength of the company, as Bud Layne points out: “We have built tens of thousands of these conveyors, so we know what they will do, and we know how they will run. We’ve got the people, we’ve got the talent, we know how to do it, we can predict what the performance of it is going to be.” 14


Going Global, Growing Global Enrico Berlenghi explains that there is tremendous opportunity for Span Tech to continue to grow, based on its values. “By offering the very best service and solutions, our company almost runs by itself, as quality always pays off,” he affirms. “We have extremely high ethical values and our partners know they can trust us. We are passionate about what we do, and we really care about our products and the relationships we have with our partners.” Span Tech is already a leader in the North American market and has expanded into Central and South America. Span Tech Europe was opened in 2011 and since then has had a 35 per cent market increase every year. With subsidiaries in Canada, Mexico and Japan, and an emerging presence in Africa and Central Asia, “we expect our market increase this year to be even higher,” Berlenghi adds. “The European market is very loyal to its business partners, so they need to embrace innovation and consider endless possibilities. It takes time for the market to accept that the impossible can become possible with Span Tech Europe.” For further details go to or meet Span Tech Europe at the Interpack, Booth 13D79. J




Food Inspection Trailblazer to Launch Cutting-edge Innovations at Interpack – Hall 17, Stand B52 oma Systems, winner of EEF’s Innovative Operating Practices and L Processes Award, will showcase a total of seven flagship systems on the interpack stand this year with Lock Inspection Systems. Significantly Loma will unveil the ‘next generation’ IQ3+ ST (SureTune) metal detector. Packed with some incredible new innovations, it resolves challenges like user traceability, with a new Access Log supporting CFR21.Part 11 and storing up to 500 events. The new IQ3+ ST also addresses drifting of the head coil and reduces false product rejects caused by subtle variations in atmospheric temperature and product characteristics. Plus, an intelligent Product Validation System now memorises defined test intervals by product and individual retailer’s code of practice. These new fea-

Loma will showcase the new SureTune metal detector at interpack, demonstrating how it can enhance traceability and heighten food safety.

tures, and more, make it the ideal solution for high-speed food manufacturing co-pack-

ers that must adhere to different retailers’ test parameters “Interpack is always a great forum for people to view market-leading solutions that address the current challenges, including industry inspection codes of practice, changes in packaging, traceability and product integrity,” says Marketing Manager James Chrismas. “Our focus at the show will be on assisting customers to understand the risks in their individual manufacturing environments and showcasing our ‘future proof’ inspection solutions. Our next generation technologies mean we are uniquely positioned to help every customer to increase product output whilst safeguarding against potential contamination.” For more information on Loma Systems T: +44 (0) 1252 893300 E: enquires J

Innovations From Bosch Help Manufacturers Meet Food Safety Regulations ith consumers and manufacturers placW ing an increased emphasis on food safety, Bosch Packaging Technology, a leading supplier of processing and packaging solutions, will launch several technological advancements at Interpack 2014 designed to meet global hygiene standards. Complementing its comprehensive portfolio, the company is debuting an integrated solution for hygienic powder packaging. The FVS auger filler and SVC 2620, a state-of-the-art vertical bagger, are both

designed for enhanced cleanability, versatility and ease of use. Bosch will also introduce its high-speed Sigpack RN vertical sachet machine for liquid applications distinguished by its cleaning function to ensure thorough sanitation of product-contact parts. Interpack will also serve as the European debut of the inverted horizontal flow wrapper Pack 301 ID. Developed for the packaging of soft, sticky, flexible or difficult-tohandle products, the inverted horizontal flow wrapper transports the packaging film from below, while the product is fed directly from the feeding system onto the film. To protect freshness and extend product shelf-life, it features long-dwell cross sealing technology. Finally, Bosch will highlight its tailormade after-sales services for enhanced hygiene and optimized overall equipment effectiveness (OEE). “Food safety has never been a more critical concern for manufacturers,” says Martin FOOD & DRINK BUSINESS EUROPE, APRIL 2014

Tanner, director marketing and business development, product division confectionery and food, Bosch Packaging Technology. “We design all of our machines to meet application-specific hygiene requirements, while enabling our customers to achieve their production goals.” Bosch’s solutions will be on display at Interpack 2014, Duesseldorf, Germany from May 8 to 14 in hall 6, booth A31 – C58. J 15


Arla Foods Invests in Sustainable Growth Having performed strongly in 2013 with significantly higher returns to its co-operative owners, Arla Foods is continuing to invest in future growth and improved profitability, while ensuring that production becomes even more environmentally-friendly and sustainable.


rla Foods’ Strategy 2017 development plan, which was launched at the start of 2013, is designed to prepare the group for the abolition of EU milk quotas in 2015. Arla Foods expects its milk farmers to produce at least one billion kilos of milk more each year in the post-quota era. However, with EU markets stagnating, Arla Foods is increasing its focus on markets outside of Europe. Over the next five years the dairy group will intensify its activities in Russia, China and the Middle East & Africa region. Under Strategy 2017, Arla Foods also aims to double sales of ingredients to the food industry. In Arla Foods’ core markets in Northern Europe, which include the UK, Sweden, Germany, Denmark, Finland, and the Netherlands, the emphasis is shifting from expansion to increased profitability and innovation. Arla Foods is continuing to develop its three global brands of Arla®, Lurpak® and Castello® but these are facing increasing competition within Europe. As a dairy co-operative, Arla Foods’ key objective is to increase profitability in the business in order to generate higher earnings for the group’s owners in the long-term. Following a series of mergers, Arla Foods is now owned by 12,600 dairy farmers in Sweden, Denmark, Germany, Great Britain, Belgium and Luxembourg.

Arla Foods.

with DKr2.71 pr. kilo in 2012. “Milk has become a more valuable commodity globally, and that naturally has a positive effect on our results. With this tailwind we have driven our business forward in 2013 – with a strong efficient base in Europe, promising Arla Foods is continuing to develop its three global growth rates in brands of Arla®, Lurpak® and Castello® but these Russia, China, the are facing increasing competition within Europe. Middle East and Africa as well as a very profitable ingredients business in Arla Foods Ingredients. Our main focus is to create the best possible milk price for our owners, and the 2013 results confirm that we have the right strategy to achieve this,” says Peder Tuborgh, chief executive of Arla Foods. In terms of revenue generated, the UK is Arla Foods’ biggest market followed by Sweden and Germany. Although Denmark remains the country that supplies the most milk, it is now the group’s fourth biggest market. Ake Hantoft, chairman of Arla Foods, remarks: “The Performance Price is up by 12.5 per cent in 2013, and that has been much needed among our farmers. The higher milk price strengthens the economy on the farms. The milk production is rising, and the relationship between a farmer’s profits and costs has been improved. This development was necessary and must be carried on in 2014.”

Record Returns Reflecting buoyant dairy products prices globally, Arla Foods achieved strong returns for its dairy farmers, reporting the highest Performance Price in its history. The Performance Price indicates how much value Arla Foods was able to generate from each kilo of milk supplied to the company by its co-operative owners. The 2013 Performance Price amounted to DKr3.05 pr. kilo compared

Focus on Integration “In Europe our focus has been on integrating the companies that we merged with in 2012, and that has already made us more efficient and given us a more complete product portfolio. European consumers are still among the most price-focused in the world, and that means tough competition between discount products and quality brands,” says Frederik Lotz, chief financial officer of Arla Foods. “Our organic growth on our European core markets in 2013 reached 3.5 per cent, which is reasonable given the pressure from

Peder Tuborgh, chief executive of

Financial Performance In its 2013 financial year, Arla Foods increased revenue by 16.5% to DKr73.6 billion (Eur9.86 billion), reflecting the mergers with Milch-Union Hocheifel in Germany and Milk Link in the UK. Net profit rose by 18.0% to DKr2.24 billion in accordance with the group’s 3% of revenue target. Helped by the mergers, Arla Foods’ global business established a stronger base in its core markets in Europe as well as a continuing to grow sales in its growth markets outside the EU – namely Russia, China, the Middle East and Africa.


Frederik Lotz, chief financial officer of Arla Foods.


discount.” Frederik Lotz adds: “Our three global brands – Arla, Cast ello and Lurpak have been pressed by discount trends and private labels in 2013. All three brands are The largest single investment in 2014 of DKr530 performing well on million will be used for the ongoing construction of the growth markets a new lactose production site near Nr. Vium in outside the EU, but Denmark. the volumes in Eur ope has not grown the way we wanted them to. In 2014 we will continue to focus on creating global growth with all three brands.” Growth Outside Europe Arla Foods continued to expand within three strategic growth markets outside the EU during the year. In 2013 Arla Foods’ revenue grew by 35% in Russia, 60% in China, and 10% in the Middle East & Africa. “Our growth machine lies outside the EU, where we expect to increase our sales rapidly between now and 2017. This is driven by Arla’s strong brands, which are in higher and higher demand by consumers in the growing middle class who are willing to pay for higher quality and better product safety. We are building a longterm presence in Russia, China, the Middle East and Africa, which will give an even better return to the milk price for our co-operative owners,” says Frederik Lotz. Food Ingredients Group subsidiary Arla Foods Ingredients increased revenue by 8%

to DKr2.4 billion in 2013, and its sales of milk-based ingredients for the global food industry remains one of Arla Foods’ most profitable areas of business. Indeed, Arla Foods plans to double the revenue from this business by 2017. In addition to integrating the mergers and acquisitions completed in 2012, Arla Foods also managed to improve its credit worthiness during 2013. Frederik Lotz continues: “We have succeeded in bringing down our leverage significantly, and that in a year in which we also managed to deliver high earnings for our owners and integrate new companies into Arla after mergers of the previous year in Germany and the UK. The reduced leverage improves our balance sheet and financial flexibility and gives us more leeway to make new potential investments to support our growth strategy and contribute to a higher milk price for our farmers.” Major Investment Programme In line with its strategic goal of doubling its exports of European dairy products to growth markets outside the EU by 2017, Arla Foods will invest DKr2.2 billion (Eur295 million) across ten of its dairy sites in 2014. The investment programme will fund new and ongoing expansion of the dairies as well as projects designed to make Arla Foods’ production even more climate-friendly. “This year we are increasing our investments to dairy sites that contribute to our export out of Europe. Our sales on the growth markets outside the EU are growing at a fast pace, and we must prepare ourselves to meet


Ake Hantoft, chairman of Arla Foods.


the rapidly growing demand in years to come. In Arla we are determined to create good growth, and we are therefore also investing more than DKr125 million in projects that will make our production chain even more climate-friendly,” says Povl Krogsgaard, vice-chief executive officer of Arla Foods. A total of DKr750 million (up from DKr466 million in 2013) will be invested in ramping up production for Arla Foods’ strategic grow th markets outside the The new lactose site will produce high-quality EU. Arla Foods’ proingredients for child nutrition products that are in duction investment in high demand especially in Asia. 2014 is equivalent to nearly 3% of its expected turnover of approximately DKr79 billion this year and in line with the dairy co-operative’s Strategy 2017. New Lactose Facility The largest single investment in 2014 of DKr530 million will be used for the ongoing construction of a new lactose production site

near Nr. Vium in Denmark. The new site will produce value-added lactose ingredients based on whey from Arla Foods’ nearby cheese production. These ingredients will be used for child nutrition products and other categories and sold to the food industry globally by subsidiary company Arla Foods Ingredients. The investment in a new lactose facility will support Arla Foods’ strategic objective of doubling the revenue of Arla Foods Ingredients to more than DKr5 billion by 2017. “The new lactose site is a very important investment for us. One of our most profitable business areas is whey-based ingredients for the global food industry, and that business must be doubled by 2017. The new lactose site will produce high-quality ingredients for child nutrition products that are in high demand especially in Asia. It will contribute to a profitable export and contribute positively to the milk price of our co-operative members,” explains Povl Krogsgaard. Other major investment projects include DKr126 million at Pronsfeld dairy in Germany, which exports products such as UHT milk and milk powder to markets in Asia and Africa. Also in German, Arla Foods will spend DKr95 million at its dairy in Povl Krogsgaard, vice-chief Upahl, where the production of executive officer of Arla Foods. quark is to be expanded. In the UK, Arla Foods plans to invest DKr81 million at its dairy in Oswestry, where a new cheese packaging facility will be built.



DKr66 million is earmarked for a new packaging line for BUKO cream cheese at Arla Foods’ Holstebro Flodeost dairy in Denmark. A further DKr42 million will be invested at the Falkenberg dairy in Sweden, which will re-open as a cottage cheese dairy. A total of DKr148 million be invested at this facility between now and 2016. Sustainability Arla Foods plans to spend more than DKr125 million on making its production more environmentally friendly as it continues to pursue its sustainability agenda. The group’s 67 dairy sites dotted around the globe are all striving to reduce their carbon emissions. “The target set in our climate strategy in Arla is to reduce our overall CO2 emission by 25 per cent by 2020. Our production plays a key role in the efforts to reach that target, and therefore we are investing in new state-of-the-art heating pumps and water-saving equipment. This will reduce our energy consumption and our emission of CO2,” says Povl Krogsgaard. Arla’s investments in environmental improvements are expected to reduce the group’s overall energy consumption in production by 2.3% in 2014, which is equivalent to a reduction of 62,115 MWh (or the same as the annual energy consumption of approximately 13,800 standard households). Strategic Focus With its broader and stronger co-operative structure Arla Foods is well placed to pursue its Strategy 2017 objectives. “Today, Arla has owners in six European countries and a clear global presence. However, there

is no doubt that our presence in emerging markets needs to become even more prominent if we are to keep up with our competitors. In 2013, we presented a revised version of Arla’s strategy, which previously had a strong European focus,” says Peder Tuborgh. The Arla Foods chief executive elaborates: “Strategy 2017 is still very much about being part of the consolidation which is taking place in Europe and about developing our products and activities for European consumers. The new part of the strategy will prepare us for the expected growth in Russia, the Middle East, Africa and China.” Outlook For 2014 For the current financial year, Arla Foods is projecting revenue of DKr79 billion and a net profit of DKr2.4 billion – equivalent to its target of 3% of group revenue. Given the currently favourable market conditions, Arla Foods expects to be able to deliver a Performance Price in the region of DKr3.25–3.35 pr. kilo. “Arla operates in a complex industry where production and thereby the supply of milk dictates the milk prices in a global and interconnected world. For example a drought in New Zealand can impact prices in Europe. We are off to a good start in 2014, but we are well aware that a lot of milk is being produced in the world at the moment which may put pressure on prices late in the year. We expect a higher performance price for the year 2014 than the year 2013 as our business continues to grow both in and outside Europe,” concludes Peder Tuborgh. J




Arla Foods UK Consolidates its Market Leadership Position Now operating from the world’s largest fresh milk dairy and first zero carbon milk processing facility located at Aylesbury on the outskirts of London, Arla Foods UK is consolidating its position as the largest dairy company in Britain with leading positions in milk, cheese, butter and spreads. ith a milk pool of 3.2 billion litres (about 26% of milk production in Great Britain), Arla Foods UK is the number one in fresh liquid milk, butter and spreads and dairy ingredients and the


attracting new farmers as well as through the expansion if its existing supplying farms. The UK business generates a quarter of its parent group’s global revenues. Indeed, in revenue terms the UK is Arla’s biggest market followed by Sweden and Germany. Although Denmark still supplies the most milk to Arla, the country is now Arla’s fourth biggest market. Another Landmark Year 2013 marked another year of unprecedented activity for Arla Foods UK as it focused on maximising and extending its market leadership. Revenue rose by 22% to £2.2 billion (DKr19.2 billion) chiefly due to the merger with Milk Link in 2012. Milk Link has since been integrated and significant benefits are being realised. A key objective is now to grow its core cheddar and speciality cheese

business. In 2013 Arla Foods UK negotiated the biggest cheese contract in its history. From April 2014, the business will supply 30,000 tonnes of cheddar to retailer Asda, increasing cheese production by 50%. Arla Foods UK plans to invest DKr 81 million (£9 million) at its dairy in Oswestry, where a new cheese packaging facility will be constructed. Arla Foods UK has also signed an exclusive partnership with Starbucks to supply 30 million litres of Cravendale milk to all its 700 stores in the UK and Northern Ireland on an annual basis. Arla’s co-operative status was cited as one of the key reasons for gaining the contract. “The UK business is performing well. Arla UK has a compelling dairy offer and we are very much focused on growing our business and building on our number one position in fresh milk, butter and spreads as well as cheese. We

Peter Lauritzen, chief executive of Arla Foods UK.

UK’s largest cheese manufacturer. Its major UK brands – Lurpak, Anchor and Cravendale – are all ranked among the top 100 grocery brands in the UK. Arla’s UK business has been recently strengthened by the merger with British dairy co-operative Milk Link in 2012. Furthermore, Arla Foods UK has reopened its dairy farmer recruitment drive to expand its UK milk pool by a further 300 million litres in 2014 by 24

With a milk pool of 3.2 billion litres (about 26% of milk production in Great Britain), Arla Foods UK is the number one in fresh liquid milk, butter and spreads and dairy ingredients and the UK’s largest cheese manufacturer.


progress as a result of this,” says Peter Lauritzen, chief executive of Arla Foods UK. Arla Foods UK has commenced production at its new fresh milk dairy in Aylesbury, near London. Built to schedule and budget, it will be the world’s largest and most environmentally advanced dairy of its kind and a significant operational ramp-up is expected this year.

Arla Foods UK has signed an exclusive partnership with Starbucks to supply 30 million litres of Cravendale milk to all its 700 stores in the UK and Northern Ireland on an annual basis.

focused on integrating the Milk Link business into Arla during 2013 and we are already seeing good commercial

£650 Million Investment Arla has invested over £650 million in its UK business since 2007. “Our Aylesbury dairy is the largest single investment for the co-operative and, as market leader, Arla is setting the future standard for the dairy industry,” says Peter Lauritzen. The new one billion litres fresh milk dairy at Aylesbury, which was established at a cost of £150 million, is in line with Arla’s ambitious UK growth strategy by providing milk to retailers across the South East of England. Aylesbury is the first zero carbon milk processing facility in the world and incorporates the most advanced process and renewable energy technologies (see Panel). As the most efficient, fresh milk pro-


From April 2014, Arla Foods UK will supply 30,000 tonnes of cheddar to retailer Asda.

“The UK business is performing well. Arla UK has a compelling dairy offer and we are very much focused on growing our business and building on our number one position in fresh milk, butter and spreads as well as cheese.”


Aylesbury Dairy - The First Zero Carbon Milk Processing Facility in the World The entire production process, incorporating milk intake and storage, pasteurization, making the bottles on site, packaging and refrigeration prior to dispatch, has been optimized to minimise energy use. For example, the 9,000 sq m milk refrigeration section of the dairy has been designed to face north in order to minimise the impact of solar heat, and the various processes have been located as close as possible to reduce pipework runs. The Aylesbury dairy incorporates a total floor area of 6.5 hectares. Water Usage and Energy Efficiency Water usage at the plant – a litre of water is normally required to process a litre of milk – has been reduced through the introduction of rainwater harvesting and water reclamation to significantly raise water efficiency well above the industrial average. Anaerobic digestion (AD) and combined heat and power (CHP) technologies are key features of the new facility’s waste management and energy efficiency regime. The AD plant can handle up to 500,000 litres of waste water a day to produce renewable energy for the CHP generator. The Aylesbury energy centre has a power output of 8.2MW - 4MW of electricity used to partially power the factory and 4.2MW of heat. A measure of the success Arla has achieved in its sustainability objectives for the new Aylesbury dairy is reflected in the fact that the facility has attained BREEAM ‘excellent’ rating. Additional energy savings are achieved by delivering the milk to the pasteurization area by gravity and blow moulding the plastic bottles for the packaging process on site before delivery by a ‘hole in the wall’ operation to the filling hall. On site bottle production is currently used at a number of Arla’s other sites, but the operation at Aylesbury is the first on this scale in the dairy industry. The new facility provides total flexibility, allowing Arla to react quickly to changing customer requirements. Blow moulding and handling plastic bottles with the lowest energy consumption possible, will not only assist Arla’s zero carbon ambition but also provide its customers with the lowest carbon fresh milk packaging available in the UK.

cessing facility of its kind in the world, the Aylesbury dairy directly supports Arla’s philosophy of delivering the highest possible returns to its farmers. It also supports Arla’s commitment to sustaining British dairy farming as it processes only British milk. Being a zero carbon dairy, the site is also central to Arla’s sustainability strategy.

Milk Packaging Innovation Innovation in milk packaging will play a crucial role in helping Arla UK to achieve its CO2 reduction targets while also improving efficiency and competitiveness without compromising on quality and functionality. Packaging - Arla UK uses around 800 million plastic bottles every year – is responsible for approximately 30% of the total annual CO2 emissions of the business. Arla UK is adopting a new environmentally friendly bottle, which weighs just 34 grammes and contains 15% recycled plastic. The innovative, ultralight design will ensure a reduction in packaging weight of more than 3,000 tonnes per year. An even lighter bottle has been developed for the new dairy at Aylesbury. The aim is to reduce the weight by 20%, while increasing the proportion of recycled plastic to 30%. Indeed, Arla has become a pioneer in the dairy industry for packaging innovation.

Expanding Farmer Ownership The merger with Milk Link has significantly increased British dairy farmer ownership of Arla Foods. Indeed, the European dairy co-operative is continuing to encourage more British farmers to take up co-ownership. Following a landmark decision last year when Arla Foods’ board of representa-


tives voted for Arla Foods Milk Partnership (AFMP) farmers to become co-owners of Arla Foods amba, in the region of 2,800 British farmer owners are currently supplying 95% of Arla UK’s milk pool and are part of the European network of 13,500 farmer owners across Denmark, Germany, the UK, Belgium, Luxembourg and Sweden. J



Sustainable and Responsible Growth at Arla Foods Even though Arla Foods increased production output over the past year, the dairy co-operative continued to reduce its climate impact. rla Foods has successfully reduced its total greenhouse gas emissions by 11% since 2005 and is progressing well to meeting its target of cutting emissions of greenhouse gases by 25% by 2020. Having completed a number of mergers and acquisitions in recent years, Arla Foods is now owned by 12,600 farmers from Denmark, Sweden, the UK, Germany, Belgium and Luxemburg. The company’s products are sold in more than 100 countries and Arla Foods operates production facilities in 11 countries and sales offices in 30. Arla Foods is one of the world’s leading dairy companies and is also the world’s largest manufacturer of organic products. Indeed, in line with its ‘Closer to Nature’ initiative, Arla Foods is striving to make its products even more natural and ensuring that production is environmentally sound.


Arla Foods is aiming to reduce greenhouse gas emissions throughout its entire supply chain - from cow to consumer.

Environment Strategy Arla Foods’ environmental strategy, which was launched in 2011, establishes the principles for all environmental and climate work within the company. Arla Foods has adopted a 'lifecycle management' perspective - from cow to consumer. This covers the entire value chain, from milk production on the farms, through to operations and distribution, including recycling of packaging material. The environmental strategy focuses on 30

four key areas – sustainable agriculture, greenhouse gas emissions, water and energy management, and zero waste. Arla Foods seeks to source its milk and other agricultural materials which have been farmed in a sustainable manner. It is aiming to reduce greenhouse gas emissions throughout its entire supply chain - from cow to consumer. Similarly with regard to natural resources like water and energy, Arla Foods is reducing consumption and changing from fossil to renewable energy sources. Arla Foods is also taking action to avoid waste. However, when this is not feasible, it adopts a zero waste philosophy - treating waste as a resource to be reused or recycled. ”Our objective is to develop our business on a foundation of long-term perspectives with respect for, and in harmony with, our surroundings,” points out Peder Tuborgh, chief executive of Arla Foods. Reducing Greenhouse Gas Emissions Arla Foods has been able to reduce its greenhouse gas emissions by switching from oil to gas at several production facilities in Denmark and Germany. For instance, in Bad Worishofen and Sonthofen in Germany, the company’s investment in more efficient heating systems has been offset by the resulting cost savings in less than a year. Similarly, by purchasing green electricity and natural gas as well as adopting an energy saving programme, Arla Foods has reduced greenhouse gas emissions by a third since 2010 at the Nijkerk site in the Netherlands, Arla Foods’ aim is to have half of its energy consumption originating from renewable energy sources by 2020. During 2013, total renewable energy usage increased from 16.0% to 16.5% and the 2020 target remains challenging. Arla Foods has established an energy task force to develop new solutions, such as using farm-produced biogas at sites in Denmark. Water and Energy Management One of Arla Foods’ environmental strategy FOOD & DRINK BUSINESS EUROPE, APRIL 2014

goals is to achieve a 3% annual reduction in both water and energy consumption up to 2020. Despite higher production volumes in 2013, the group’s consumption of water and energy has remained unchanged, and the efficiency target was attained. To further reduce energy consumption, Arla Foods is introducing an energy mapping programme at all its sites in 2014. This is expected to facilitate the identification of improvement opportunities and to aid in prioritising investment.

Arla Foods is at the forefront in developing and adapting the latest green technology. Its new dairy at Aylesbury, in the UK, which commenced production in November 2013, has set new global standards in terms of carbon efficiency and uses the latest technology for energy efficient processing. Water saving initiatives introduced at the site at Nijkerk in the Netherlands have reduced water usage by a third during the last three years. Transportation Elsewhere within the supply chain, Arla Foods has been minimizing fuel consumption and optimizing the performance of its transport and logistics activities. A trailer that incorporates a raw milk tanker along with a refrigerated section for carrying finished dairy products has been developed. This means that finished products can be distributed by the vehicle which can then collect milk on the return journey to the dairy. Twenty of these new combination vehicles were introduced into the UK during 2013 and Arla Foods is examining the

to introduce this more efficient milk tanker model across all its European markets. Meanwhile, the new dairy at Aylesbury in the UK is testing high efficiency trailers for delivering finished products. Arla Foods has also been testing the use of different fuels to reduce emissions. In the UK, it currently operates 11 dual tractors using both diesel and liquefied natural gas, which have cut greenhouse gas emissions by 15% compared to standard models.

In line with its ‘Closer to Nature’ initiative, Arla Foods is striving to make its products even more natural and ensuring that production is environmentally sound.

potential for adapting the trailer to comply with regulations and standards in other European countries. Also in the UK, a new milk tanker with additional capacity and a faster collection system, which halves the time taken to take the milk from the farm, is now in service. This reduces fuel consumption and the time spent idling on the farm. Arla Foods plans

Optimising Packaging To meet its target of reducing greenhouse gas emissions by 25% within its packaging by 2020, compared to the 2005 level, Arla Foods has been reducing the amount of plastic in its packaging, and has made major strides in this direction in the UK. Innovation in milk packaging is playing a crucial role in helping Arla Foods UK to achieve its CO2 reduction targets while also improving efficiency and competitiveness without compromising on quality and functionality. Packaging – Arla Foods UK uses around 800 million plastic bottles every year – is responsible for approximately 30% of the total annual CO2 emissions of the business. Arla Foods UK is adopting a new environmentally friendly bottle, which weighs just 34 grammes and contains 15% recycled plastic. The innovative, ultra-light design


will ensure a reduction in packaging weight of more than 3,000 tonnes per year. The bottle is in line with Arla Foods’ Design-to-Value programme under its Strategy 2017 development plan. The new bottle, which sets new standards in ecofriendly design in the UK, is an example of how Arla Foods is endeavoring to lead the way in the global dairy industry. An even lighter bottle has been developed for the new dairy at Aylesbury. The aim is to reduce the weight by 20%, while increas-

The new dairy at Aylesbury, in the UK, has set new global standards in terms of carbon efficiency and uses the latest technology for energy efficient processing.

ing the proportion of recycled plastic to 30%. Indeed, Arla Foods has become a pioneer in the dairy industry for packaging innovation. Reducing Waste Arla Foods is also seeking to significantly


Arla Foods has been reducing the amount of plastic in its packaging.

reduce food and packaging waste. The dairy co-operative is working with researchers to examine the relationship between food waste and the role of packaging with consumers. Eliminating waste at its sites is a priority. For example, the Sipoo facility near Helsinki in Finland sends mixed waste for recycling into energy, so diverting more than 700 tonnes of waste from landfill each year. Arla Foods’ operations in Canada use various recycling methods to divert 61% of waste from landfill. Sustainable Growth While Arla Foods succeeded in expanding and strengthening its business and its cooperative structure during 2013, while paying higher returns to its dairy farmer owners, the group remains committed to reducing its environmental impact and acting responsibly.

“More owners, more colleagues, new facilities and new markets. We continue to grow, and we care about how we grow,” remarks Peder Tuborgh. “A responsible approach is a prerequisite for Arla’s longterm success.” He elaborates: “In 2013, Arla laid the foundations for continued growth, something for which we have long been striving. Previously merged companies are now integrated into the organisation, milk volumes have increased and, at the turn of the year, we welcomed more farmer owners. Furthermore, we have succeeded in increasing the amount we pay our owners for their milk. Equally as important as these achievements is that we have continued to work responsibly.” Further Investment Arla Foods will invest DKr2.2 billion (Eur295 million) across ten of its dairy sites during 2014 in line with its strategic goal of doubling exports of European dairy products to growth markets outside the EU by 2017. The investment programme includes projects designed to make Arla Foods’ production even more climate-friendly. More than DKr125 million is being invested in projects of this type in 2014. Making a Real Difference Sustainability is only one aspect of Arla


Foods’ overall approach to CSR across it operations globally. Other initiatives include Arla Foods’ new committee for compliance with and management of its ethical business principles, and its work to increase the proportion of women on the board of directors and in senior management positions. The dairy group publishes annual CSR reports, which detail the progress being made in these areas, the most recent being aptly entitled ‘Our Responsibility’.

Arla Foods has been minimizing fuel consumption and optimizing the performance of its transport and logistics activities.

“As one of the biggest dairy companies in the world owned by dairy farmers in six countries, our approach to responsible business operations can make a real difference. At the same time, we are now represented in more countries than ever before, which presents us with both challenges and opportunities,” says Peder Tuborgh. J



Arla Foods Unveils New Strategy For Sustainable Dairy Farming Arla Foods has developed a global strategy for Sustainable Dairy Farming focusing on animals, climate, nature and resources. he new strategy will further reinforce dairy group’s position as a responsible company and assist Arla farmers with their ongoing work around climate, waste and animal welfare. European dairy farmers are already among the most efficient in the world when it comes to impact on the climate. Arla Foods’ strategy will take its farmer owners to the next level by helping them take further positive steps towards more sustainable milk production. As a farmer-owned co-operative, Arla Foods can make a true difference across its entire value chain: “We can and we have taken a stand on animal welfare, climate change, sustainability and other environmental issues. In Arla, we believe that by working with sustainable solutions, across the entire value chain, we will increase our competitiveness,” says Peder Tuborgh, chief executive of Arla Foods.


The Strategy Arla’s Sustainable Dairy Farming Strat egy was defined throughout 2013 across the countries where Arla Foods has farmer owners - Swe den, Denmark, the UK, Germany, Bel gium and Luxem bourg. The strategy was developed in joint co-operation with Arla Foods experts and by its owners and was discussed in the group’s National Councils and approved by the board of directors. The overall goal is that by 2020, the carbon footprint per kilogramme of milk from Arla farms will be reduced by 30 per cent compared to 1990.


Lurpak Triumphs at British Arrows Awards Arla Foods’ Lurpak® “Weave Your Magic” campaign has won a British Arrows award for the best International campaign. British Arrows Awards is one of the UK’s most prestigious advertising recognitions. Arla’s premium butter brand, Lurpak®, triumphed in the international category of the British Arrows Awards. “We are very proud that Lurpak® can play – and win – against other well-known global brands. Our goal was to inspire the food lovers worldwide and to celebrate the position of Lurpak® as a champion of good food around the world,” says Laurence Fischer, vice president and responsible for Arla’s Global BSM category, including Lurpak®. The success is a very important step towards Arla’s goal of positioning Lurpak® as a truly global brand. Lurpak® is realizing strong growth both in Europe and in the Middle East and Arla Foods aims to increase the volume of the brand by 5% in 2014 Also nominated in the international category were global brands such as Vodafone, Eurostar (highspeed railway service) and Unilever’s personal care brand, Dove.


“It is a great achievement to have our farmers involved in developing Arla’s sustainability strategy for their farms, in a way that makes them feel comfortable with the fact that sustainability is not to the detriment of financial performance,” says Ake Hantoft, chairman of Arla Foods. Four Focus Areas To develop the strategy, experiences from each owner country have been gathered and four focus areas have been defined and will set the direction in Arla Foods’ work: * Animals - ensure a high standard of animal welfare; * Climate - reduce the carbon footprint of milk production at Arla members’ farms; * Nature - encourage and inspire Arla's farmers to protect biodiversity and ensure a more sustainable feed supply; * Resources - reduce waste and increase reuse of our resources at Arla farms. The overall focus will be to work together across the supply chain to improve animal welfare, save resources such as water, energy and feed, reduce greenhouse gas emissions and develop biodiversity focused initiatives in each owner country. Arla Foods offers its farmers free of charge on-farm carbon assessments. The company’s farm workshops have been going on since 2010 in the UK, while in 37

Sweden and Denmark they started in 2013. In the UK, workshop topics cover eight themes, including, improving cow fertility, reducing energy use, using renewable energy and increasing feeding efficiency; Every year, Arla Foods will offer new activities to support the aim of the strategy. Progress to Date To date on-farm carbon assessments have been carried out on approximately 1,500 Arla farms in the UK, Sweden and Denmark. Approximately 280 farm workshops have been held in the UK, Sweden and Denmark, for small groups of Arla farmers, aimed at reducing the carbon footprint by improved farm management

and reducing waste in the production cycle. An ongoing responsible approach towards animal welfare has been taken through the Arlagarden global quality assurance programme. The programme is mandatory for every Arla farmer and was implemented in Denmark and Sweden in 2003. It has recently been rolled out in Germany, Belgium and Luxembourg. Work is ongoing in the UK to introduce Arlagarden in 2015, alongside the national Red Tractor Dairy Scheme. Arla Foods will continue to offer free and voluntary on-farm assessments to its farmers and expects to complete at least 800 carbon assessments every year.

Arla Foods has set global targets that will be followed up on to ensure that 2020 targets are reached. “The strategy does not place new demands on farmers, over and above the high standards already included in the Arlagarden programme. Arla is already a sustainable company, but we want to take it to the next level by providing farmers new opportunities. Offering voluntary onfarm carbon assessments and farm workshops to our farmers will help them become even better,� says Henrik Damholt Jorgensen, vice president of global member services. J

Global Targets Aside from the animal welfare initiatives, which are mandatory for all Arla farmers through the Arlagarden programme,




Arla Foods Expects to Serve 25 Billion Glasses of Milk in 2014 In 2014, Arla Foods expects to process more milk for drinking than ever before - 25 billion glasses, enough to potentially serve 3.5 milk glasses for every person on the planet. 5,297,087,378 glasses of milk (each measuring 250 ml), that is what Arla Foods expects to process at its liquid milk, UHT and milk powder dairy plants around the world this year. This amount represents a little over half of Arla Foods’ entire milk production expected for 2014. If all of the glasses are lined up they would circle the Earth’s equator 47 times. If stacked, the glasses could reach the moon almost seven times over. “Milk for drinking has always been an essential part of Arla's processing - especially in Europe - and this year we expect to process more than ever. New consumers in growth areas like Asia and Africa are buying milk for its nutritional benefits, and consequently the global demand for milk is bigger than we have ever seen,” says executive vice president Jais Valeur, who is res ponsible for Arla Foods’ global production and brands. Globally, authorities recommend 2-3 servings of milk or other dairy products per day. According to the Food and Agriculture Organization of the United Nations, milk is one of the most unique foods and considered of high importance in human nutrition, as milk contains 22 nutrients and makes a significant contribution to meet the body's need for calcium, vitamin B2, vitamin B12, iodine, potassium and phosphorous. “At Arla, we also believe dairy products play an important role in a balanced diet. But health benefits are only one piece of the puzzle. While serving the growing global demand for dairy products, Arla wants to be the most natural and sustainable global dairy company. This means offering natural food with high nutritional value to people across the world, while using as few of nature's resources as possible,” says


Jais Valeur. Arla Foods expects to process more than 11 billion kilos of milk from its co-operative owners in Denmark, Sweden, Great Britain, Germany, Belgium, and Luxembourg. J




Advanced Cyclone Systems Leading the Way dvanced Cyclone Systems (ACS) specializes in gas solid separation with high A efficiency cyclones. This means that particles, even very fines ones (smaller than one micrometer), can be filtered without using bag filters, therefore minimizing bag filter associated problems and costs.

from using ACS technology. Indeed, the benefit increases the higher the powder value, the smaller the particles, the more sensitive the powder is and the more problematic the handling is with the main competitor technology - bag filters. For example, ACS has worked with Nestlé for milk powder recovery, as well as for other products such as Nesquik. Established five years ago, ACS currently has sales in 28 countries. For clients in Europe, ACS fabricates its products in Portugal, which allows the company to offer highly competitive rates, even when supplying 15m long cyclones to a distant country such as Denmark, as was the case when recently completing projects for Arla Foods (see Panel). Particle Agglomeration

Food and drink companies often process powders, such as proteins, milk or sugar derivatives, fatty acids and many other food ingredients, in drying, milling or pneumatic transport applications. Efficient separation and recovery of these substances at the end of the process lines is crucial before storage or reuse. ACS can design and supply very high efficiency cyclone systems to maximize powder recovery, therefore increasing overall plant efficiency. ACS is currently working on several projects for milk powder recovery after spray drying, especially for baby powder milk. However, many food companies that process fine powders, which at some point, need to be separated from gas streams, can benefit 42

ACS has been investigating particle agglomeration in cyclones for several years and has published several technical and scientific articles. The most relevant is the paper entitled “Impact of particle agglomeration in cyclones” (Chemical Engineering Journal 162 (2010) 861–876). In 2013, ACS confirmed that a better understanding of agglomeration has facilitated elevating all its products to another level.


World First

ACS has now developed a completely new line of cyclone geometries, different from any other in the world. Named Hurricane MK, the new cyclone system marks a major advancement in terms of efficiency for food ingredients collection. Thanks to the maximization of agglomeration achieved with these cyclones, powder losses in spray and fluid bed drying applications can be as low as 10-15% of other cyclones. The use of cyclone separation technology has several advantages for food processors. In the recovery of sensitive products, cyclone collectors are indispensable in allowing direct powder capture and avoiding product hold-up, as often occurs with filters. Cyclones also avoid contamination of filter bags, product cross contamination and product degradation with temperature. However, product loss because of the low

Hurricane Cyclones to Maximize Milk Proteins Recovery From a Multi Stage Spray Dryer at Arla Foods Advanced Cyclone Systems (ACS) designed and supplied a Hurricane Cyclone System to maximize milk proteins recovery from a spray dryer (SD3) for Arla Foods in Holstebro, Denmark. The existing cyclones provided 96.9% capture efficiency (emissions of about 500mg/Nm3). The remaining product (emissions from existing cyclones) was being lost, captured in a wet scrubber installed downstream. Total annual losses reached 320 tons of caseinate per year In order to design the most efficient system for this situation, a dust sample was collected from the existing cyclones and measured in a laser sizer to obtain the Particle Size Distribution (PSD). With the information of the recovery rate of the existing cyclones and of the current emissions, ACS was able to reconstruct the PSD and solids concentration (in mg/Nm3) at the exit of the dryer. ACS further analyzed the case and confirmed that the separation efficiency could be increased with two new numerically optimized cyclones (Hurricanes). ACS’s efficiency model predicted a global collection efficiency of approximately 98.9-99.27% for the Hurricanes, at the same operating conditions and pressure drop.

ciencies in capturing very fine powders with a Median Volume Diameter (MVD) of less than 5um. These cyclones are the result of non-convex non-linear problems formulated and solved after years of work in partnership with the Faculty of Engineering of Porto and incorporate the most recent findings of the impact of agglomeration in the cyclone collection efficiency (Chemical Engineering Journal 162 (2010) 861–876). A single Hurricane is more efficient than any other known cyclone available in the market for the same pressure drop. General Arrangement The system at Arla Foods consists of two Hurricane Cyclones 2800mm installed in parallel, each one with a mini-hopper for rotary valve air lock, and two inspection doors on top and CIP nozzles for automatic cleaning. All equipment was manufactured in stainless steel AISI 316L with food grading finishing. Conclusions The separation efficiency predictions matched the experimental results. The improved separation efficiency of the Hurricanes provided a reduction of product losses of about 70% resulting in considerable savings for the company. Project payback is estimated in less than one year. The success verified in this installation, lead to another supply of two Hurricane Cyclones (HR 2100mm designed for 57 878m3/h at 75 C) for another spray dryer at the same production facility.

Hurricane Cyclones Hurricane Cyclones are patented numerically optimized cyclones. Hurricane geometries maximize powder collection for each different application, while minimizing re-entrainment and keeping pressure drop at reasonable levels. Hurricane Cyclones demonstrate impressive effi-

efficiency of traditional cyclones represents a high cost to food processors due to the value of particles. ACS Solution

According to ACS, its cyclones maintain the advantages of traditional cyclone technology while solving the main problem of low efficiency. The key benefit of the ACS system is the increased quantity of powder collected by aseptic means. Armed with its advanced cyclone systems, ACS is well placed to exploit the current market conditions. Technically, the focus in spray drying of sensitive products as baby powder milk or proteins is on the improvement in cyclone efficiency, to absolutely eliminate the risk of product contamination in filters. ACS has the ability to deliver very high efficiencies and give demanding performance guarantees, enabled by the accuracy of its efficiency estimation algorithm. J FOOD & DRINK BUSINESS EUROPE, APRIL 2014



Pump Optimization – Here's How You Save Energy in Your Dairy system audit at a major European dairy resulted in equipment adjustA ment saving >Eur 36,000 in annual energy usage and reduced carbon emissions by 100,000 kg – what’s more, the investment paid for itself in less than a year! Pump optimizing is highly relevant if you want to reduce energy consumption in your dairy. A dairy’s energy consumption can range from 90 kWh/h to 6500 kWh/h depending on final product produced and of this a considerable amount is used on pumps1. By optimizing your pump selection, you can reduce energy consumption and realize savings of up to 50%2.

incl. cables, circuit breakers, frequency inverters etc. Running costs: Energy consumption can be minimized by selecting the correct pump type and designing it for Best Efficiency Point (BEP). Energy costs money. You know that. But do you know that the energy used by your pumps is converted into heat? Some of the heat given off goes into the surrounding air, but the majority actually ends up in your milk! Unless this happens at a heat treatment stage, that heat will have to be removed through cooling – and that requires energy. So first you pay to add it, and then you pay to remove it! Effect on your milk product quality: A low efficiency pump adds shear rate and stress to your product. Those together with vibrations are in fact the major reasons for the low efficiency. Adding excessive energy to your milk prior to pasteurization will increase the risk of free fat. In yoghurt the shear rate and stress will decrease the viscosity that you have otherwise optimized to increase. Choose the Best Efficiency Point

The Best Efficiency Point (BEP) is the point at which a pump operates at the optimal head and flow rate to deliver the highest possible efficiency for a particu-

So whilst not a new idea, pump optimization is highly relevant in today’s competitive business climate. With the right pumps, you can reduce total cost of ownership, raise system performance and enhance your plant’s environmental profile. The payback time for required modifications? – often less than a year. It is time for action!

Saving Pump Energy - How?

The principles of efficient pump operation apply to both new and existing systems. Because systems change over time and even minor changes impact efficiency, it is important to evaluate and modify systems continuously. By auditing existing systems, it is possible to adjust pump operation and restore efficiency. • Change your pump so it operates at the BEP • Add a variable frequency drive, which will reduce energy costs • Change the diameter of the pump impeller • Change of pipe layout Optimize to Economize

So how do you save the energy used on pumping in your dairy? – choose the right pump and optimize it! For that you need knowledge and support and Alfa Laval can offer that. We are industry experts at guiding you to choose the right pump for your dairy applications. To learn more visit 1 European Dairy Association (2002). "Consumption and emission data", EDA, personal communication 2 British Pump Manufacturing Association (BPMA), 2009 study, .uk. J

Effect of Energy Consumption on Total Price

Capital cost is a minor proportion of the pump life cycle cost. Consider the effect of reducing the required motor power on the following: Installation costs: The pump motor size will influence all the electrical components 44

lar duty. The closer the BEP is to the duty point required, the higher the pump efficiency.



Setting Up the Next Generation Dairy and Nutritionals Processing Plants By Carsten Juhl Jessen, M.Sc. Dairy Science & Technology, Deputy Division Manager, GEA Process Engineering Soeborg, Denmark orldwide, the dairy and nutrition W industry is gearing up - increasing capacity and upgrading facilities to meet the growing demand for high quality and safe products from a rising global population. Serving the industry for decades with a full line of leading technologies for dairy and nutritionals powder production, GEA Process Engineering is at the forefront. The portfolio ranges from the raw material reception through mixing and formulation, membrane filtration, and heat treatment to evaporation, spray drying GEA Niro Spray Dryer. and powder handling and packaging. It positions GEA in a unique position for continuous operation 24/7 where the updelivering complete plants - fully integrated time of the plant is maximized by switching to ‘spare-units’ during cleaning of single and meeting all standards – on time. components. An example: By adding addiEfficiency and Profitability tional evaporation and feed systems to a The quest for improved operational effi- plant, the spray dryer will continue 24/7 ciency continues to drive the demand for for weeks while the evaporation and feed larger and more efficient plants - delivering systems are cleaned daily. Giving an addisafe products that meet the strictest regula- tional 3-4 hours production/day, it tions. Significant economies of scale clearly improves the output by 15-20% at a relastimulate this development. The next is tively low investment. Component design is also a major driver for efficiency and product quality. The GEA Niro Air Dispersers set the standard GEA Process Engineering and are unrivalled. They facilitate fully brings knowledge from interlocked, safe and ergonomically optimized spray nozzle handling while operamultiple significant projects tion is supervised by advanced camera systems. Advanced Process Control systems – and new innovative in particular the new GEA Niro solutions. By working close DRYCONTROL™ system – incorporates product application know-how and intetogether with our customers, grates new PAT technologies, it improves we deliver solutions that plant performance and product quality while minimizing resource and energy condrive their business and sumption.

provide the edge in a competitive world.

Delivering the Project

As any delays during the setting-up of a new facility means losing valuable producFOOD & DRINK BUSINESS EUROPE, APRIL 2014

tion or even missing a commercial opportunity, the importance of experience, effective project management and teamwork must not be underestimated. It requires skills that are only obtained by training and vast experience. GEA Process Engineering brings knowledge from multiple significant projects and new innovative solutions. By working close together with our customers, we deliver solutions that drive their business and provide the edge in a competitive world. J

The quest for improved operational efficiency continues to drive the demand for larger and more efficient plants - delivering safe products that meet the strictest regulations. GEA Process Engineering GEA Process Engineering is the company behind a number of well-renowned brands within dairy technology including GEA Niro evaporation and drying technology, and the Avapac™, Colby™, Albro™, Nu-Con™ and SmartFil™ powder handling and packing technologies. GEA Process Engineering A/S, Gladsaxevej 305, DK-2860 Soeborg. Denmark. Tel: +45 3954 5454 Email:



AUTEFA Solutions’ IBSS at Arla’s Super Dairy The Intermediate Bottle Storage System IBSS reduces material costs as well as “manpower costs. IBSS needs no permanent operator, 80% of labour costs can be cut compared to traditional bagging/de-bagging processes. These are proven values from our customers,” explains Autefa Solutions Sales Director Peter Knobloch. “IBSS is perfect for dairy companies filling PET/HDPE bottles.” AUTEFA Solutions Intermediate Bottle Storage System IBSS is for buffering empty PET/HDPE bottles. IBSS automatically takes care of the difference in capacities of bottle manufacturing and filling operation to increase the capacity of the dairy. Smaller blowmoulders can run 24hrs/7d/w to feed a 12hrs/6d/w filling operation. Packing, de-nesting, labeling or strapping or foil packing equipment is no longer

required, nor is a forklift needed for empty bottle transport. AUTEFA Solutions IBSS does not damage bottles and as it can identify sub-standard products, the bottle maker can increase the quality he supplies to the bottler. This is especially important as bottles tend to be ever more lightweight.

As production of each blow-moulder can be fed to any of the filling machines, the system provides maximum flexibility. The Intermediate Bottle Storage System is installed at Arla Foods in Leeds and in Arla’s new Aylesbury Dairy. IBSS is positioned between the extrusion blow-moulding machines and the filling operation. If bottles need to go to intermediate storage, they enter IBSS where robots put them into large steel trays. Once filled, the trays are stacked upon each other and transported to the storage by skid-mounted SAT vehicles. Once needed, the dust-proof tray stacks get back to IBSS on the SAT wagons and the robots empty the bottles onto conveyors that run parallel to those that feed the filling directly. Sensors monitor bottle flow and stop or activate conveyors to guarantee a steady flow of bottles. J

Autolabel’s Innovation Boosting Print and Apply at Arla Foods roject manager Torbjörn Wiechert at P Arla Foods has been in charge of production line efficiency at Götene in western Sweden since 2005. The constant goal is to reduce downtime. One of his projects has involved print and apply stations. Has the project been a success? Definitely. Before, we had a lot of downtime. Our measurements show that the increased uptime we have today far surpasses our projections. Besides, changing label rolls is significantly faster now, too. We’re down to about ten seconds. It all adds up.

Autolabel’s print and apply machines installed at Arla Foods in Götene, Sweden.


What’s the secret? We started working with Autolabel in Göteborg, Sweden. They were very attentive to our needs and demands. Our labelling problems were adressed simply, succinctly and with excellent results. We felt very involved throughout the process, and are very happy with the results. Can you give us an example of a succesful solution? We have a production line with sliced cheese, producing 144 cartons per minute. It takes a while to get up to max speed after any kind of downtime. Autolabel fixed it so the print and apply machine has a redundant solution that takes over automatically for downtime or label switching. Because of this, that production line can now run at full speed almost all day long. Does the labeling machine work outside of the production line? Absolutely, we also use them for post production in the warehouse. We can hold roughly 28,000 pallets here in Götene, and benefit from Autolabel machines working with them as well as cartons. FOOD & DRINK BUSINESS EUROPE, APRIL 2014

Gerard Dijkstra, innovative engineer at Autolabel.

In conclusion, do you think more businesses could benefit from this kind of print and apply solution? Of course. The simplicity and uptime I think many facilities would be happy to see. Cheese is a living material and no two pieces are alike – this can be quite a challenge for automated procedures, but Autolabel came up with several ingenious solutions. They’re also concerned about working environment and safety when they construct their systems, and that’s very important to us. J


Automation and Industrial IT – Au2mate A/S Supplier to the Dairy Industry Worldwide By Klaus Dam, Managing Director, Au2mate A/S u2mate A/S develops and supplies A automation solutions for the dairy and process industry worldwide. Our expertise covers every single part of the dairy process from raw material reception to packaging including high value-added processes, OEE and MES solutions. Technology Transfer to Russia In the autumn 2013, Au2mate was engaged in an efficient, rapid and smooth technology transfer to Molvest at the Kalacheevsky Cheese Dairy in Russia. Today, Arla Foods is producing Havarti

The cheese vats at Kalacheevsky.

cheeses in cooperation with Molvest in Russia. The cheese vats were transferred from Arla Foods Krusaa. The project involved significant technology transfer, and Au2mate delivered the control system including training and start-up. In order to ensure safe technology transfer and a smooth start-up in Russia, the Russian personnel received training by Au2mate engineers in Denmark. Two directors, three technical employees and five operators went to Denmark in order to participate in the FAT test and to receive training in operating the control system. Likewise two engineers from Au2mate went to Molvest to participate in the start-up of the plant. Flexible Control System - Data-collection and Supervision In order to ease the installation and start up in Russia, core parts of the plant were built, pre-mounted, and FAT tested as units before shipment to the site. The control system is based on unit control panels, each one including PLC, I/O cards, HMI touch screen, and MCC and frequency converters. This offers local oper-


Klaus Dam, Managing Director, Au2mate A/S.

ation of each process unit. A MIS operator station with Wonderware InTouch/IAS software was supplied to be used for central supervision, data collection and reporting. The dairy personnel can use the PC-stations for comprehensive supervision of the process, showing overall status for each process segment/unit. J


Optimising Tanker Weight ne of VM Tarm’s main focus areas is weight optimization, OSince which results in less weight and increased payload. 2013, VM Tarm has been working in co-operation with the Danish Environmental Protection Agency on a project called ‘The Tank Trailer of the Future’. The project examines new ways of reducing the tare weight of the tank trailer to increase the payload and safeguard the environment at the same time. The project will be presented in April 2014 but the benefits are already apparent. During the project, new solutions were implemented on trailers produced in 2013 for Arla Foods in Denmark, Sweden and Ger many. In 2013 three tank trailers were delivered to Arla Foods in Ger many. These tank

trailers were specially built to reduce weig ht. The weight-reducing features included: * Wall thickness red uced with 0.5 mm, stainless steel * New chassis design * Fibre glass outer cladding * Parts produced in aluminium instead of stainless steel. The total weight of the tank trailer (capacity: 29,000 litres) including one compartment and three baffle walls, 100 mm insulation, three axles, axle lift, storage cabinet and valve compartment is 5,400 kg. If you are interested in a tanker with a low tare weight or need further information, please call the sales department ( on +45 97 37 16 44. J




Preparing For the Post-quota Market Faced with flat consumer demand due to the adverse economic conditions in domestic markets and the prospect of increased competition in the wake of the abolition of EU milk quotas in 2015, Europe’s top dairy processors have been consolidating their positions through mergers and acquisitions and preparing to expand further into emerging markets, which offer stronger growth potential. he European and global dairy markets are undergoing fundamental change. Market deregulation and liberalisation have resulted in heightened competition at both regional and global level and caused sharp price fluctuations in the world market for dairy products. Intensifying competition within the retail market in the face of consolidation and growth from private label products and the discount sector is exerting downward pressure on dairy processors’ profit margins. The continued expansion both organically and by acquisition of European and global dairy industry giants, such as Nestle, Danone, Arla Foods and Muller, is also adding to competition and leading to consolidation as smaller processors merge in order to achieve economies of scale. However, the market fundamental remain bright with consumption of dairy products growing globally buoyed by a marked shift to more added value products, both in consumer markets and industrial ingredients.


Europe’s Top Ten Dairy Companies The top ten players within the European dairy industry, measured by turnover, are listed in the Table. Following a series of

major acquisitions, the most recent being the purchase of Pfizer’s infant nutrition business, Nestlé is the top European dairy processor and also leads globally, according to Rabobank. Indeed, Europe’s top three dairy companies – Nestlé, Danone and Lactalis – hold similar rankings globally. FrieslandCampina and Arla Foods, ranked fourth and fifth respectively in Europe, are both top ten players globally. FrieslandCampina is the world’s fifth

largest dairy group, just behind Fonterra of New Zealand, while Arla Foods is seventh in the global league table, behind Dairy Farmers of America. FrieslandCampina and Arla Foods were both created following major mergers between dairy co-operatives. Arla Foods was formed in 2000 through the merger of Arla of Sweden and MD Foods of Denmark. FrieslandCampina was established in 2008 following the merger of

DDW “The Colour House” has acquired the DANISCO® food colour business from DuPont Nutrition & Health • European colour production is located in Cork, Ireland. This year DDW will complete construction of a new, separate facility in Cork solely dedicated to the manufacture of natural colours. • Complementary operation in Port Washington, Wisconsin, USA has manufactured cheese colour for leading, dairy industry suppliers since the 1980’s. DDW acquired the business in 2006 and achieved GFSI (BRC) certification in 2013. 48

• Sole focus on food and beverage colours includes technical and applications support in Europe. • Full range of carotenoid colours: annatto, betacarotene, apocarotenal (b-apo-8 carotenal), lutein, lycopene and paprika. Custom blends include turmeric (curcumin), caramel colour, titanium dioxide, or other naturally derived colours. • Available packaging in product net weight of 5 kgs, 10 kgs, 25 kgs or 200+ kgs. J


Dutch co-operatives Friesland Foods and Campina. Nestlé along with Danone and Unilever (ranked 6th) are fully fledged food and beverage groups with dairy products representing only one element of their extensive portfolio. Reflecting the large scale of the country’s dairy industry, France is home to four of Europe’s top ten players – Danone, Lactalis, Sodiaal and Bongrain. Germany has two representatives – DMK and Muller. With sales of Eur4.4 billion and operating across 28 locations in ten federal regions across Germany, DMK is the country’s largest dairy company, having been established by the merger of Humana Milchindustrie and Nordmilch in 2011. Muller has established production facilities outside of Germany and has expanded significantly in the past couple of years. Since 2012, the German privately-owned dairy group has completed three acquisitions in the UK – the £280 million purchase of Robert Wiseman Dairies, which processes and delivers approximately one third of the fresh milk consumed in Britain, as well as a chilled desserts facility at Minsterley in Shropshire, and private label yoghurt producer Nom Dairy UK. The deals have helped Muller’s UK business to increase turnover from £450 millioin in 2011-12 to £1.5 billion in 201213. Muller is also expanding rapidly in the US after forming a yoghurt joint venture – Muller Quaker Dairy – with PepsiCo in 2012. Increasing Capacity A shared strategy of most of Europe’s leading dairy processors is to expand the proportion of added-value and branded products within their overall sales volume to increase operating profit. Another common goal is the expansion of processing capacity in preparation for handling the extra milk production when EU milk quotas are abolished in 2015. For example, Friesland Campina has invested about Eur600 million over the past three years to expand its production capacity in the Netherlands. However, faced with difficult market conditions in Europe, FrieslandCampina is now in the process of restructuring its Dutch production operations in order to improve efficiency. Other processors have also been improving the efficiency and competitive position of their European operations. Last year, Danone started to implements a cost reduction and management restructuring plan designed to regain its competitive edge and adapt its operations to the current economic environment in

Europe. The restructuring is expected to generate savings of around Eur200 million in Europe by 2014. Danone is the world number one in fresh dairy products and ranks second in baby nutrition. These two businesses account for about 75% of group sales with the waters division and medical nutrition accounting for the balance. Danone has recently invested Eur70 million on expanding the capacity of its baby food manufacturing plants in Ireland.

Expanding in Emerging Markets In recent years, the European dairy industry has increased its focus on developing sales in emerging markets. The continued rise in the global population and economic growth coupled with the increasing preference for dairy products are expected to fuel EU dairy exports and to sustain commodity prices. According to the European Commission, the best export performance is expected to come from cheese and skim milk powder (SMP) between 2012 and 2022. Exports of cheese are projected to expand by two-thirds and those of SMP to triple during this period. In line with its strategic goal of doubling its exports of European dairy products to growth markets outside the EU by 2017, Arla Foods will invest DKr2.2 billion (Eur295 million) across ten of its dairy


Top 10 Dairy Companies in Europe, 2013 Company 1 Nestlé 2 Danone 3 Lactalis 4 FrieslandCampina 5 Arla Foods 6 Unilever* 7 Sodiaal* 8 DMK 9 Bongrain 10 Muller

Country of Headquarters Switzerland France France Netherlands Denmark/Sweden Netherland/UK France Germany France Germany

Dairy Turnover 2012 (€ billion) 23.4 15.1 14.0 10.5 8.4 5.8 4.5 4.4 4.1 3.3

Source: Rabobank Global Dairy Top 20, 2013. *Estimate

sites in 2014. A total of DKr750 million will be invested in ramping up production for Arla Foods’ three strategic growth markets outside the EU – Russia, China, the Middle East & Africa. Lactalis recently in creased its presence in emerging dairy markets through acquisition. The French dairy group has acquired 100% of the


shares in Tirumala Milk Products, the second largest private dairy company in South India. Financial details of the Lactalis acquisition were not released but the deal is believed to be worth between $250 million and $300 million. The transaction marks Lactalis’ entry into India – the world’s largest producer of milk and milk products. The deal is the largest dairy transaction in India. Well known for its international brands such as President, Galbani and Parmalat, Lactalis operates in 70 countries through its 200 factories. J


Darfresh® on Tray Skin Packaging Make a Clearly Visible Difference to Operational Efficiency ombining a revolutionary pre-made tray system with versatile vacuum skin, C Darfresh® on Tray is packed with innovation. The key differentiators are the use of a perforated tray/skin and cutting process, affording zero skeleton film waste, plus the integration of special vacuum valves for optimal productivity. Developed in close collaboration with equipment manufacturer G. Mondini, the new solution incorporates all of the proven benefits of the Darfresh® family to meet the most ambitious efficiency and sustainability goals of the European fresh red meat, poultry, fish

and processed meat sectors. Darfresh® on Tray is geared to food producers and packers with a preference for pre-made trays and/or an offline loading process. It uses specially formulated skin top web materials and rigid trays to create a vacuum ‘second skin’ for the food product it protects and presents. Visual appeal comes from the firm yet gentle wrapping of the food item with all contours being accommodated safely yet without distortion. The pre-made tray and Darfresh® skin top web are heat-sealed together right up to the product’s edges ensuring minimal film consumption and a resultant elimination of potential waste disposal fees. Integral vacuum technology leads to a 40% improvement in packaging speeds compared to alternative systems, meaning higher productivity for the same ecological footprint. Darfresh® on Tray constitutes a full system approach with easy integration into an offline manufacturing process and retention

of the producer’s existing load approach. Demonstrating the Sealed Air commitment to sustainability is a 30% reduction in pack volume as compared to standard MAP alternatives. Incorporation of the proven Darfresh® skin process brings differentiating shelf life extension for less food wastage and sealing excellence reduces the risk of dripping and contamination. Natural maturation in the pack is an added bonus for fresh meats. To learn more, visit J


Iced Coffee Brand is Toast of the Town Thanks to Corrugated RRP dopting a corrugated retail ready packA aging (RRP) solution has enabled a beverage company to stand out in the chilled cabinets of premier UK retailers following the launch of a coffee drink three years ago. Jimmy’s Iced Coffee is on the shelves at Selfridges, Fortnum & Mason, Harvey Nichols and Waitrose, as well as WHSmith travel outlets and Tesco Express. Helping to accelerate this rapidly expanding visibility and availability has been the brand’s recent adoption of high quality, flexo-printed corrugated RRP of six or 12 single-serve 330ml cartons. Eye-catching on the shelf and straightforward to stack and replenish, the re-packaged product is now a classic endorsement of corrugated RRP’s ‘Five Easies’ - easy to identify, open, merchandise, shop and recy-

cle - solutions that have established the material as the supply chain’s preferred transit and display format. Confederation of Paper Industries (CPI) says that the UK corrugated industry’s investment in new, innovative solutions is helping food and beverage brand owners, like Jimmy’s, gain a competitive advantage by transforming packaging from conventional brown, transit boxes, to distinctive FOOD & DRINK BUSINESS EUROPE, APRIL 2014

colour branding that not only creates an on-shelf impact, but is more easily identifiable at goods inwards. Arriving on-shelf in perfect condition and creating impact once in place is the central tenet of any RRP strategy, but containing costs, without compromising product quality, is also critical for food and drinks brands to establish and maintain market share and commercial visibility, in a highly competitive sector. CPI’s Director of Packaging Affairs, Andy Barnetson, says: “A well-crafted transit pack, especially one that is also designed to take pride of place in the aisle, substantially reduces retailer expense and time in managing the potentially costly last 100 metres or so, between the back of the store and the shelf.” J 51



The True Cost of Wrapping Your Pallets n recent weeks there has been some debate Ipallets on the pros and cons of the cost of wrapping from the point of view of just paying a cost per pallet rental type scheme, which seems to be anything from 70p to £2 per pallet, versus 34p to 48p when owning your own pallet stretch wrapper either by buying the machine outright of purchasing it with the help of a finance house. Owning your own machine of course allows you to purchase the film from existing suppliers competitively.

Paddy McCartney, National Sales Manager of Aetna UK Ltd and Becky Goy of First County Finance, who have worked with Aetna clients for many years, have made the follow-

ing observations on the subject. Paddy comments: “In some ways the idea of simply paying a cost of 70p a pallet seems reasonable, however the more pallets you wrap the more it costs you. A part pallet and a film break during a cycle will also count as a pallet wrapped at 70p. * 50 pallets/day is 12,000 pallets/year and the cost would be £8,400.00/year. * 125 pallets/day is 30,000 pallets/year and the cost would be £21,000/year. “You are however locked in to a contract, if your business grows then the fixed cost of rental can become a real burden for your business. Most financial commentators are saying that the UK economy is now on the turn after four long years of relative hardship, so to put yourself into a position of stifling growth could end up being a double whammy on your business.” Paddy McCartney makes the following observations on the above: Costings For a customer wrapping 50 pallets a day this amounts to 12,000 pallets per year. If a customer takes a 3-year lease purchase with an Aetna 3 year parts warranty, this will cost £224.69 a month. The machine amortised on an annual rate of 12,000 pallets would then cost 22.5p per pallet with film costs of under

25p per pallet, a total cost is 47.5p per pallet. 12,000 pallets/year = £5,700.00. If the customer was producing 125 pallets a day, 30,000 per year, the same machine cost would reduce to 9p per pallet and even if you kept the film cost the same this would bring the cost down to 34p per pallet. 30,000 pallets/year = £10,200.00. At the end of the lease you own the pallet wrapper. Of course this means that no further payments are made for the machinery and the cost per pallet falls to under 25p/pallet. As you can see from the above examples continually paying a fixed fee of 70p per pallet can be very costly. Over the short term it may seem convenient but by making the comparison with leasing a machine and arranging your own supply of film the ‘pay per pallet scheme’ is very detrimental to cash flow and budgets. Furthermore the long term costs of paying per pallet show that customers could actually end up paying for the machinery several times over. Becky Goy comments: “The computations clearly show the lease purchase option is of real benefit to any user, giving complete control over where you buy the film, and after sales and service support of a company that has to-date produced 130,000 machines. We have worked closely with Aetna UK helping customers with Lease options, and it is by far the most cost effective solution for any business now and in the future.” J

New Generation Robotic Palletiser is Top of the Class ANUC Robotics UK has launched a F new universal palletising robot that boasts best-in-class speed, payload, energyefficiency and reach. The M410-iC/185 is the first of a new generation of palletising robots that combines FANUC’s proven 99.99% reliability with tangible improvements in performance, allowing food and beverage manufacturers to palletise heavier loads faster and stack pallets higher. Thanks to advancements in servo drive and motor technology, the M410-iC/185 delivers a 16% higher wrist load and 13% greater throughput than its predecessor, the M410-iB/160, which serves over 300 customers Europe-wide. A 185kg payload coupled with an average speed of 1700 cycles per hour results in heightened productivity

and more efficient palletising of heavier loads. The four-axis robot also has highest in class wrist load inertia, which renders it equally suitable for handling bulky items like sacks of flour using very large grippers, and compact, heavy items, like bottle crates. “This robot is equally at home palletising bags of sugar as it is shifting crates of soft drink bottles,” says Darren Whittall, technical manager at FANUC Robotics. “It can handle anything from bags, sacks, cartons, shrink-wrapped bottles and cans to crates, tins and trays.” In designing the new generation robot, FANUC engineers have built a four-axis arm that can stack pallets as high as 2.4m – higher than any other robot in the same class. At the same time, they have reduced FOOD & DRINK BUSINESS EUROPE, APRIL 2014

the robot’s footprint to an ultra compact 610 x 806mm and energy consumption to 3kW/hr maximum. J



Danone Launches New Global Campaign to Rejuvenate Activia Brand Danone has launched its first ever global advertising campaign for Activia in a bid to revive sales growth for the yoghurt brand and to drive its evolving healthy lifestyle positioning. he French dairy products giant is joining forces with Columbian-born pop star Shakira, who heads the new ‘Dare to Feel Good’ campaign. The international collaboration will bring to life Activia’s ‘Feeling Good Starts from Within’ initiative with a new dance-themed creative that celebrates making inner health and well-being.


Activia is the biggest brand within Danone’s dairy portfolio.

Activia is the biggest brand within Danone’s dairy portfolio. Sold in more than 70 countries, Activia contains a unique mix of bacteria, including the exclusive Bifidus Actiregularis. The Activia products benefit from more than 20 years of research and expertise. In the past, Activia advertising has promoted the product’s specific digestive health claims but these are not permissible in certain countries. For example, in Switzerland, Danone highlights that the ‘probiotic’ cultures in Activia ‘contribute to digestive comfort by reducing transit time and bloating’ but such claims can not be used in the EU. Filmed in Barcelona, the new TV advertisement features Shakira in a fantasy forest where she is showered with swirls of gold stardust and is seen dancing to express how good she feels inside. Shakira comments: “I believe that taking care of your inner health

is the key to personal well-being and dance is one way to communicate that synergy of feeling good within and without.”

There's no one better than Shakira to represent the importance of health and wellbeing. She perfectly exemplifies how feeling good on the inside is essential to her selfexpression as a world-famous performer.” Danone is the world’s biggest yoghurt company with a 20% share of the $80.4 billion global market. However, sales of its top brand, Activia, have been flat at about Eur2.5 billion. While emerging markets like Brazil, Russia and China have performed well, markets in Western Europe have been impacted by the squeeze on consumer spending.

First Time “For the first time we are using a global celebrity so we aim to have a global impact,” says Santiago Mier, the chief marketing officer of Danone Dairy. “It’s different also in the way we communicate with people, in a more modern and updated way.” Shakira’s new song ‘Dare (La La La)’included on her brand new album named “Shakira” - provides the soundtrack to the TV commercial. Developed by Vinizius UK Market Young & Rubicam Barcelona, the adver- For instance, in the UK, where Activia is tisement forms the central piece within the second ranked brand behind Muller, Activia’s first ever integrated global com- sales have been dwindling – falling by 11% munication campaign. Directed by the to £237 million in the twelve months to acclaimed photographer and director, April 2013, according to Mintel. Danone’s Jaume de Laiguana, the commercial’s pro- Actimel brand has also been in decline with duction team also included Oscar winning sales dropping 7% to £101 million during art director Eugenio Caballero and award the same period. winning Javier Aguirresarobe. Already dominant in the UK branded The marketing campaign is being rolled yoghurt market, Muller has further out across 55 countries with the television strengthened its standing with the recent commercials being supported by print, out- acquisition of NOM Dairy. The acquisidoor and digital advertising. “This globally orchestrated campaign represents not only a first for Activia, but a first for Danone,” explains Luca Casaura, Activia global vice president marketing at Danone. “It is the biggest and most sophisticated multi-market initiative ever undertaken for the company and we are proud to have the support of one of the world’s most famous pop stars as our official ambassador. Shakira heads the new global marketing campaign for Activia. FOOD & DRINK BUSINESS EUROPE, APRIL 2014


tainty and weak consumer sentiment is adversely impacting on sales and profits.

Already dominant in the UK branded yoghurt market, Muller is developing its presence in the private label sector following its recent acquisition of NOM Dairy.

tion provides a platform for Muller to develop its presence in the UK private label yogurt market. In addition to Danone and Muller, the other leading yogurt companies in the UK include Emmi, Lactalis Nestlé and Yoplait. Indeed, these companies have joined forces to establish the Yogurt Council - the first ever UK industry body dedicated to yogurt. The Yogurt Council is working to raise awareness about yogurt being a delicious and nutritious food and an important part of a balanced diet and healthy lifestyle by providing credible information and advice about yogurt. However, value growth in the UK yoghurt market is expected to slow as stiffening competition, characterised by widespread price promotions, undermines unit price increases. Indeed, a similar scenario exists across Europe where economic uncer-

US Focus Major European yoghurt producers such as Danone and Muller are now looking to the US to help boost sales and profit growth. In contrast to the mature European market where sales growth has slowed and the major branded players are facing rising competition from private label products, the US yoghurt market is expanding rapidly, part fuelled by the phenomenal growth in popularity of Greek yoghurt. Indeed, strong growth in the US market is expected to continue well into the future as US per capita consumption of yogurt is generally less than half that of Europe. Danone is already well established in the US yoghurt market, where it ranks second behind Yoplait, which is 51% owned by US-based General Mills with the balance controlled by French dairy co-operative Sodiaal. Danone has been intensifying its efforts in the US, recently entering a joint venture with Starbucks Coffee Company, the world’s leading coffee retailer, to develop a selection of new, healthy specialty yoghurt products for sale in Starbucks stores and in grocery channels. Danone has also consolidated its position within the US yoghurt market and extended its offering with the acquisition of YoCrunch, the leader in the yoghurt with toppers segment. The two deals reflect Danone’s ambition to expand yoghurt consumption in the US.

Mulller is expanding rapidly in the US after forming a yoghurt joint venture – Muller Quaker Dairy – with PepsiCo in 2012. Having launched the Muller Corner, Muller Greek Corner and Muller FrutUp brands, Muller Quaker Dairy is aiming to capitalise on the rising demand for valueadded dairy products in the US.

Mulller is expanding rapidly in the US after forming a yoghurt joint venture – Muller Quaker Dairy – with PepsiCo.

In June 2013, Muller Quaker Dairy opened a new $206 million state-of-the-art yoghurt manufacturing facility in Batavia, New York. The new 350,000 sq ft facility can produces approximately 120,000 cups per hour. Now producing Muller Corner, Muller Greek Corner and Muller FrutUp varieties, the new facility is serving as a national production and distribution center for Muller yoghurt. J

ARCIL Joins Forces With Barry-Wehmiller RCIL, which designs and manufactures A state-of-the-art integrated Form-FillSeal packaging lines, joined packaging

The financial strength of BarryWehmiller will also allow ARCIL and its SYNERLINK division to relaunch its machinery manufacturer Barry-Wehmiller development and acquisition strategy in group at the end of 2013 after being sold by order to offer innovative and effective Danone. As part of the US group based in turnkey solutions on the fresh dairy prodSt Louis, Missouri, ARCIL, through uct market. its SYNERLINK brand, now forms Being part of a group of 70 comthe basis of Barry-Wehmiller's new panies means being able to Dairy Packaging unit. improve the performance of the ARCIL, which is already a leader businesses and staff, to compare in the US yoghurt FFS packaging issues associated with machine market, is now the sixth packaging design, and implement a better serunit within Barry-Wehmiller. vice in terms of quality with Employing 7,000 people and with improved regional availability. Cosales of about $1.7 billion, Barryoperation between the various Wehmiller is a diversified global companies will offer additional supplier of engineering consulting momentum for exchanges as well Synerlink packaging line. To ensure vertical ramp-up on site, and manufacturing technology soluas new development opportunities Synerlink carries out tests on the entire line (filler + end-of-line – tions in packaging, corrugating and and support at an international 3min for each SKU) at its plant in France. paper converting across a broad level. J 56

spectrum of industries. ARCIL is now able to work more easily with Danone's competitors. In fact, ARCIL’s share of sales with Danone’s competitors, which is already about 35%, should double during the next few years.



Record Success For Packaging Innovations 2014 he UK’s biggest packaging show reports T record success. Packaging Innovations 2014 attracted 6004 unique visitors over the two days of the event, an 18 percent increase on last year, with 77 percent of exhibitors rebooking onsite for next year’s show. The show which took place at Birmingham’s NEC, 26 & 27 February 2014, included packaging buyers from major names such as GlaxoSmithKline, Lush Cosmetics, Heineken, Britvic Soft Drinks, Danone, Asda and Proctor & Gamble; exhibitors where delighted with the buzz and the visitor footfall from the moment the doors opened. Alison Church, Event Director at easyFairs UK, comments: “We couldn’t be more thrilled with how the show went – an easyFairs record breaker. The show was lively from start to finish, with both visitor

and exhibitor numbers up, we are in a great position to take the show to new heights next year. 2015 will be an even bigger year for us, as the show will be celebrating its 10th edition, so it’s an exciting time for those who are involved with the show.” Packaging Innovations was co-located with six other shows: Ecopack, Contract Pack, Packtech, Print Innovations, Labelling Innovations, and Converting innovations. Hayley Mustad, Key Account Manager, at IBIS Packaging Solutions, exhibiting at the show, says: “The footfall this year has been great, with key decision makers from blue chip companies coming onto the stand. Great show, so much so we have booked for 2015, and gone for a bigger stand!”

gramme, with world-class speakers from DHL Supply Chain, Iceland Foods, The Barts Ingredients TM Co, Recoup, Marks and Spencer, Wilkinson, Tesco, and Oloves. Topping the bill was packaging Guru Lars Wallentin, Founder of, who remarked on the importance of consumer communication within the industry: “Your brand's positioning determines what you are going to do. Clear positioning will help you define that ‘big idea’, otherwise you are only selling on price. Whatever we do - whether it's telling a story through packaging or creating an opening ritual, such as Corona and lime or Oreo with its twist, lick, dunk ritual – it’s important to create a synergy between the brand and the consumer. In the world of packaging where creativity is endless, it’s essential to communicate your message, rather than using your logo to sell. Change the information on your packaging into real communication.” In addition, the show featured the BIG Print Debate, where Reproflex3, Iceland Foods, Faraday, Print Week and Elmwood London debated: ‘Latest print technologies – gimmick or sound ROI?’ There was a general consensus that there are opportunities for band owners to employ these new printing techniques, but must take care, and to only use them to provide relevant and useful information. The Big Packaging Debate A show favourite was The BIG Packaging Debate, where over 100 visitors gathered to hear a panel of packaging experts discuss: ‘Packaging - designed for the consumer or the supply chain?’ This year’s panel, chaired by Kevin Vyse, included Echo Brand

LearnShops Seminar The event included a two-day comprehensive free-to-attend learnShops seminar proFOOD & DRINK BUSINESS EUROPE, APRIL 2014

Design, DHL Packaging Services Europe, Alliance Boots and The Consumer Voice held the general opinion that the supply chain may well be increasing in complexity, but so are consumers’ lives and the way we market to them. The opinion was that flexibility and agility was key to future retail and concluded that perhaps there is a general need for packaging to reflect in-store and online demands more simply, with the real opportunity to reduce secondary packaging. Continuing to educate the consumer about the possibilities of reusing or refilling a product, rather than recycling was also an underlying theme. The big news hitting the show floor was the announcement from show organiser, easyFairs, who unveiled its future vision for its packaging shows. Its packaging portfolio, right across Europe, will evolve around four major core show concepts: Packaging Innovations, Empack, Label&Print and Luxury Packaging. For the NEC this means the entire packaging spectrum will be unified under the three dynamic core brands: Packaging Innovations, Empack and Label&Print. Next UK Packaging Event The next UK packaging event in 2014 takes place at the Business Design Centre in London on 30 September and 1 October 2014 focusing on its two strong concepts – Packaging Innovations and Luxury Packaging - making it the capital’s most exciting and inspirational showcase for everything new and exclusive in packaging design. Packaging Innovations, Empack and Label&Print will also take place at Birmingham’s NEC on 25 and 26 February in 2015. Companies interested in exhibiting at Packaging Innovations can find out more about booking a stand by calling the packaging team on +44 (0)20 8843 8821 or emailing J 57

Energy Efficiency and Emissions Monitoring Solutions From Autoflame stablished for over 40 years, Autoflame E Engineering manufactures burner controls and specialises in energy efficiency projects for industrial and commercial boiler plants worldwide. Minimising operating costs has always been crucial within the highly competitive food and drink industry. Now, however, there is an ever increasing need to for businesses to be sustainable and also monitor their emissions. Autoflame Combustion Management Systems have delivered impressive results and savings for many food and drink manufacturers all over the world. Incorporating a 10.4” colour touch screen, the company’s robust Micro-Modulation burner controls allow plant operators to control air to fuel ratio for optimum combustion. The Autoflame Micro Modulation System provides an easily programmable and flexible means of operating combustion quality throughout the load requirement range of the boiler/burner. The system has built into it over 150 different options and parameters which are set up by the engineer to suit manufacturing requirements; ensuring that boiler plant is running at high efficiency, reducing fuel bills and environmental impact.

Tackling CO2 emissions from burner/boilers has steered Autoflame’s research and development into designing systems to monitor flue exhaust gases. Over the last several years they 58

have seen a large increase in the amount of food and drink processing plants that want to use the Autoflame System to monitor their site’s emissions. Responding to their consumers’ needs they have added the ability to collect data from multiple sites globally, and this data can also be transmitted to the company’s own Network. Combustion Management Systems Autoflame’s combustion management systems are common within the boiler rooms of food and drink manufacturers. The majority of these industrial process customers have a typical gas bill of half a million to £1 million annually. Depending on the existing state of the plant, by retrofitting Autoflame’s Micro-Modulation system to the burners, fuel savings in the region of 4–8% are achieved. With such a high fuel spend, existing industrial customers have seen payback returns within one year. Together with a high efficiency Limpsfield burner which guarantees combustion performance, the Autoflame’s controls have been proven to deliver fuel savings in excess of 10%. Autoflame has extensive experience of working within the food and drink industry globally. For instance it has helped Arla Foods in the UK to reduced energy consumption by using Autoflame Systems at the dairy sites in Leeds and Lockerbie. In the Netherlands, Autoflame Engineering has installed a Combustion Management & Control System at Kikkoman Foods Europe, allowing the soy sauce manufacturer to achieve fuel savings, reduce production costs and half NOx emissions. Autoflame has developed systems to meet the specific requirements of the food and drink industry. The Autoflame Exhaust Gas Analyser (E.G.A.) ties in with the Autoflame burner controls for improved safety by setting combustion limits. The E.G.A. takes a sample of the flue gases to make small changes to the amount of air going into the combustion process so that the O2, CO, CO2 and exhaust temperature commissioned levels are maintain throughput the firing range. EU Emissions Directive “A major change to the boiler/burner Industry in the coming years will be the EU Emissions Directive for Medium Combustion Plants (MCPs), which is focused on thermal input of 1–50MW. In line with these new regulations which are expected to hit the EU members within the next four years, Autoflame have developed the Mk7 Continuous Emissions FOOD & DRINK BUSINESS EUROPE, APRIL 2014

Monitoring System E.G.A. (CEMS E.G.A.),” points out Franky Scott, Head of UK Business Development at Autoflame Engineering. Franky Scott continues: “The emissions data and fuel consumption data are logged for up to two years with the CEMS E.G.A. The EU Emissions Directive for MCPs looks likely to enforce tight regulation for sites to submit emissions data - all of which is logged and easily downloadable from the Autoflame CEMS E.G.A.”

Reducing Energy Consumption and Carbon Foot Print Food and drink manufacturers have been able to benefit from significant reductions in both energy usage and carbon footprint by upgrading their boiler rooms with Autoflame Systems. “Autoflame is very conservative when projecting energy savings and many clients have achieved savings far in excess of initial projections which has had a positive effect on their bottom line and made their business more competitive,” says Franky Scott. In addition to improving efficiency, Autoflame systems are also highly reliable. “Users of our equipment frequently specify Autoflame equipment to other sites due to its reliability and efficiency,” adds Franky Scott. “Unmanned boiler houses are also very common and Autoflame equipment meets all the requirements needed to meet current legislation.” Global Operation Autoflame is a major exporter to the USA and Asia, as well as throughout Central Europe. This network of Technical Partners, works directly with Autoflame’s clients and customers, ensures continued product support for Autoflame Systems. This also ensures communication in the customers’ local language, local servicing and ongoing up to date contact, for all requirements. Autoflame’s Technical Partners also add value to the offering, with additional products and service & commissioning support, on all projects. J


Vitafoods Europe 2014 – The Home of Nutraceutical Insight ith current consumer awareness of health and nutrition at an all time W high, the global nutraceutical ingredients market is expected to be worth $30 billion by 2015. Returning to Geneva from 6-8 May Vitafoods Europe once again acts as the industry’s global meeting place where manufacturers, brand owners and retailers can meet with suppliers to generate new business opportunities and strengthen existing relationships. Upwards of 13,000 visitors are set to descend on the show where they will source the latest ingredient and raw material launches from more than 700 exhibitors such as long-time Vitafoods exhibitors Capsugel, DuPont Nutrition and Health, DSM, and Naturex. The show provides a hub for discussion and debate, enabling visitors to uncover the trends and scientific breakthroughs that are driving the future of the nutraceutical industry. Attendees can stay ahead of the curve by gaining practical advice and information on new ingredients, market opportunities and trends that will aid new product development strategies so products stand out on shelf.

Innovation Innovation and new ingredients are the bedrock of Vitafoods Europe. As well as meeting with new suppliers, visitors to the show will discover the most recent ingredient launches in the New Products Zone which acts as a guide to the next generation of nutraceutical ingredients. The Exhibitor Presentation Theatre meanwhile allows attendees to hear about new launches, research and case studies first-hand from exhibiting companies on topics as diverse as omega-3 fish oil, sleep aids for insomniacs and nutricosmetics.

Visitors can also book their place on popular Innovation Tours. Nutrimarketing will introduce attendees to suppliers who are developing novel products that respond to market evolutions – themes this year include mobility, energy and alertness, and staying smart. New ‘Ingredient and Regulation’ tours by Dr. John Wilkinson also offer an impartial view on ingredients on display at the show from superfruits and extracts to algae. Nutra Insights Hub Providing essential information on future trends, EU harmonisation and access to markets, the Nutra Insights Hub hosts speakers from leading independent and non-commercial companies. These include Mintel, Euromonitor, Innova Market Insights, EAS and Leatherhead Food Research. Sessions address hot topics from across the industry but there is a special focus on markets and packaging, offering visitors advice to help improve business strategies. EAS Strategic Advice is also on hand to offer free one-to-one advice on tackling challenges surrounding product formulas, labelling and claims. Saving attendees thousands in consultation fees, the sessions will also cover regulatory compliance including the EU article 13 health claim list, as well as specialist recommendations on overcoming problems that can arise when entering the CIS and Russian region. A new visitor networking event on day two means visitors can meet their peers to discuss common problems, new business opportunities and how they see the nutraceutical sector evolving in the coming years. Vitafoods Europe Conference Running alongside the exhibition, the Vitafoods Europe Conference launches a brand new modular format that offers delegates more in-depth insights, as well as a more flexible approach so they can better combine business and learning opportunities. With 64 speakers presenting during 16 sessions, the two-day programme will cover the industry’s hottest topics and allow attendees to select modules most relevant to their business needs. As well as an opening FOOD & DRINK BUSINESS EUROPE, APRIL 2014

panel discussion on predictions for the future of nutraceuticals, scientific advances in areas such as reproductive, cognitive, eye and heart health, weight management, sports and personalised nutrition, and consumer trends are also on the agenda. Poster Presentations will also provide visitors with access to scientific prowess with researchers from around the world sharing their projects, ideas, applications and potential investment opportunities for the future. For even more in-depth insights, visitors can book on to the new “FourFactors® of Success Masterclass” by Peter Wennström, President of the Healthy Marketing Team. Taking place on 7 May, it takes a look at how to position product and ingredients within the European market and how to communicate product benefits with consumers. Vitafoods Europe is co-located with Finished Products Europe – Europe’s leading functional food and drink and dietary supplement exhibition – which is set to boast its biggest and most dynamic event to date. Retailers, distributors and wholesalers are able to meet with over 175 global suppliers to discuss the development of bespoke products that will match with existing product ranges and provide them with a point of difference in-store. As well as the Tasting Bar and New Products Zone, a new Finished Products Theatre offers insights into product development and retail strategies from some of the industry’s most sought after names. J 59


Closer to NatureTM With Nature’s No. 1 rla and Chr. Hansen go back a long A way and share the same values. Together the two companies are bringing dairy into the future. The Arla history dates back to 1881 when the first dairies in Denmark and Sweden were founded. Chr. Hansen is celebrating its 140th anniversary, founded in 1874 on Christian D.A. Hansen’s development of a procedure to extract pure and standardized rennet enzyme from calves’ stomachs for cheese making. A discovery that completely revolutionized the dairy industry. Ever since Chr. Hansen has been known as a trusted and innovative partner to global dairy producers. Chr. Hansen is proud of being a longterm supplier of natural ingredients such as cultures and enzymes to Arla who provides yoghurt, cheese, butter and many other dairy products to the benefit and delight of people all over the world. With its Closer to NatureTM promise Arla is committed to supplying products that are as natural as they can be, combining traditional craftsmanship and world-

class technologies to think about nature in every aspect of the supply chain - from the cow to the consumer’s table. Chr. Hansen could not support Arla better in its endeavour than to live its own strategy, Nature’s no. 1. The strategy builds on Chr. Hansen’s core competencies within microbiology, exploring nature and its possibilities even more with

a view to using nature’s own mechanisms to improve food and health. Chr. Hansen is deeply rooted in the dairy industry and wishes to continue being no. 1 and to shape the industry through innovation like it does today - in a close working partnership with important players like Arla. For more information visit J


Cargill Expands its Speciality Cocoa Liquor Capabilities argill’s cocoa and chocolate business has C made a significant investment to expand its specialty cocoa liquor capabilities in its plants in France and Germany. Philippe Huet, Cargill Cocoa & Chocolate’s Managing Director Cocoa, says: “This major investment in our cocoa liquor capabilities will enable us to meet growing customer demand for premium and organic chocolate products. These liquors are used in our wide range of chocolate recipes and in our organic certified cocoa butter and powders.” The investment in Rouen, France, focuses on enhancing and expanding the Fine Flavor range of cocoa liquors. A production line has been dedicated to the high quality manufacturing of small batch specialty liquors with subtle signature tastes. 60

The beans used for these liquors are from specific origin countries with distinctive characteristics such as Venezuelan beans, of

The Cargill plant at Le Grand Quevilly, Rouen, where the investment will enhance and expand production of the Fine Flavor range of cocoa liquors.


a mild and creamy taste, or those from Ecuador, with a flowery aroma. The dedicated Fine Flavor range production line carefully preserves the delicate flavours specific to each origin country and guarantees the purity of certified organic products. The plant in Berlin, Germany also plays an important role in the production of specialty liquors for the chocolate market and the investment significantly increases its capacity in response to additional demand for quality liquor. Philippe Huet concludes: “Our customers expect us to keep innovating and adding value to their products, and these investments are focused on delivering for their success.” For more information visit: J


Expanding Non-dairy Product Possibilities With Rice Derivatives ith 75% of adults worldwide showing W some decrease in lactase activity during adulthood, it is no wonder that awareness of food hypersensitivities is growing. Alongside this, there is an increasing move amongst consumers to self-diagnose food intolerances and allergies, making the ‘freefrom’ sector a significant one for food and drink producers alike. Stefanie De Roover, Nutriz Product Manager at BENEO, discusses the market for allergen-free products and how functional ingredients, such as rice derivatives can help food and drink producers make the most of this trend. Allergy Awareness and Prevalence Continues to Grow Traditionally, free-from foods and drinks have been seen as niche products across the globe. However, with increasing amounts of consumers self-diagnosing intolerances, or switching to ‘free-from’ foods for health choices, there is an increasing call for a wider, more varied range of allergen-free products. In Europe, up to 15% of children are now classified as having some form of food allergy, whereas 20 years ago, it was

only 10%. Up to 1% of the UK population is now listed as being intolerant to gluten. One of the fastest growing areas for lactosefree products looks set to be Latin America; with some 61-70% of the population stated as lactose-intolerant this is hardly surprising. Alongside the high lactose-intolerance of Latin America, there is a significant decrease in lactase activity during adulthood in Southern Europe (71% affected), Africa and Asia (more than 90% affected). Interestingly, alongside those who have a physical intolerance and require allergenfree foods, the number globally who are highly influenced by allergen-free claims has doubled from 21% in 2009 to 41% in

2011. This demonstrates that consumers who do not suffer from food allergies or intolerances are increasingly aware of the presence of common allergens in food and this influences their food and beverage choices. Product Expansion With growing consumer interest in the non-dairy sector and high expectations regarding variety and taste, rice based dairy alternatives, such as BENEO’s Nutriz range, are gaining importance. Due to the versatility of this vegetal non-allergen, the Nutriz range of easy-to-use rice powders and concentrates can be used in non-dairy products ranging from drinks, mousses and ice creams to chocolates and bagels. The main ingredients of BENEO’s Nutriz range are the natural components rice syrup, rice oil, rice flour, rice starch and rice protein; derivatives that are hypo-allergenic and naturally free of gluten and lactose. With a similar sweetness to FOOD & DRINK BUSINESS EUROPE, APRIL 2014

milk powder, BENEO’s Nutriz powder is an ideal replacement in whipped non-dairy desserts, bakery creams such as custards, ice-creams or chocolate. Even complex structures such as mousses can be achieved without the addition of gelatin or gelatin equivalents. In addition, BENEO’s Nutriz M is a rice concentrate that enables the creation of rice milk that is perfectly white, smooth, stable and has a creamy mouthfeel. It contains all the richness of rice, complex carbohydrates, rice oil composed of unsaturated fatty acids and rice proteins (the best alternative to mother's milk proteins), vitamins and antioxidants, yet as a vegetable product is cholesterol free. As well as being classified as ‘allergenfree’, BENEO’s Nutriz natural rice ingredients can be easily incorporated into the production process without any additional investments in new equipment. All that is required to guarantee ‘allergen-free’ production is that the equipment is cleaned of traces of other product in advance of use. 2014 and Beyond As consumers continue to want more from their free-from products, the use of vegetal non-dairy alternatives will continue to increase as manufacturers embrace their nutritional and technical benefits. It looks like the trend towards non-soy ingredients as dairy alternatives is only just beginning to impact the global market and 2014 is set to see many more product introductions that maximise the nutritional and technical capabilities of rice based alternatives. J



Further Sustainable Growth at Lamb Weston/Meijer Reflecting its strategy of continuous investment in optimising efficiency and strengthening its leading position in the international market for potato products, Lamb Weston/Meijer is spending Eur20 million on a new state-of-the-art potato grading area at the company’s largest factory at Kruiningen, Zeeland in the Netherlands. amb Weston/Meijer specialises in the manufactures of deep-frozen potato products and dried potato flakes. The product range encompasses a wide range of fries, wedges and seasoned potato specialities in unique shapes and various flavours. Popular Lamb Weston potato products include Twisters, CrissCuts and Wedges, Private Reserve Fries and Stealth Fries. The company supplies both the retail and food service markets. Most products are sold under the Lamb Weston brand but the company also supplies private label products.


potatoes to processing in the plant. The highly-contemporary new building emphasizes Lamb Weston/Meijer’s ambition to set high standards in the market in terms of both products and production facilities. The new process will also enable the company to meet the growing demand for high-quality potato products and concepts.

Lamb Weston/Meijer was formed in 1994 as a 50/50 joint venture between Lamb Weston ConAgra Foods of the US and Meijer Frozen Food of the Netherlands.

Joint Venture Lamb Weston/Meijer was formed in 1994 €20 Million Investment as a 50/50 joint venture between Lamb The Eur20 million investment programme Weston ConAgra Foods of the US and at Kruiningen entails the implementation Meijer Frozen Food of the Netherlands. of a fully-automated potato sorting process Lamb Weston is one of the three largest in a new, state-of-the-art potato grading potato products manufacturers in the area. To bring the project to fruition, vari- world. The group employs more than ous former production buildings are being 6,200 people worldwide and produces 3.1 replaced with a single potato reception and million tons of potato products each year, sorting area built entirely with the future in including 10 million portions of fries per mind. day in Europe alone. The installation of a number of fullyMeijer Frozen Foods, which developed automated potato sorting lines will make from a potato farming business in Zeeland, the complex potato sorting process consid- commenced the production of branded erably simpler and more efficient after frozen potato products along with private delivery in mid-2015. The system in label product in 1985. The Meijer business Kruiningen will soon be reduced to a single continued to grow rapidly as demand for its flowing line, from arrival and sorting of the products grew in Europe and in other regions such as the Middle East. Lamb Weston/Meijer produces frozen potato products and dried potato flakes at five factories. Three of the productions sites are in the Netherlands at Kruiningen, where the head office is also based, at Oosterbierum and at Bergen op Zoomm. Lamb Weston/Meijer also has sites at The Lamb Weston product range encompasses a wide range of Wisbech in the UK and at fries, wedges and seasoned potato specialities in unique shapes Hollabrunn in Austria. and various flavours. Employing more than 1,300 FOOD & DRINK BUSINESS EUROPE, APRIL 2014

people, Lamb Weston/Meijer has a production capacity of 650,000 tonnes. Together with ConAgra Foods Lamb Weston, these products are sold under the Lamb Weston brand in more than 100 countries throughout the world. Since its establishment, Lamb Weston/Meijer has expanded both organically and by acquisition. For example, it acquired Dutch potato processing companies Vriezo and Danisco Foods (formerly Fri dOr) in 2000 and 2001 respectively before purchasing the Garden Isle factory in Wisbech in the UK in 2006. In October 2010, it acquired 74% of Frisch & Frost, located in Hollabrunn (Austria). Product Innovation Constant new product innovation and successful extension to existing lines are central to the continued growth of Lamb Weston/Meijer. From Wedges, Twisters and CrissCuts to coated and spiced fries, to sweet potato fries and potato-based appetizers, Lamb Weston has been at the forefront of the development of value-added potato products in Europe and further afield. Sustainability Lamb Weston/Meijer is successfully reducing its environmental impact by developing sustainable business practices in three key areas - water, energy and potatoes. It has already achieved its zero waste to landfill 63

energy usage per tonne of finUnique Collaboration ished product,” points out Lamb Weston/Meijer has Bas Alblas, managing director formed a unique collaboraof Lamb Weston/Meijer. “For tion with golf ball manuour main raw material, potafacturer Biogolf. Under the toes, we will increase the exclusive three-year conpotato utilisation by10% per tract, Lamb Weston/Meijer tonne of finished product.” will supply the potato Bas Alblas continues: “Our starch that is the basic raw vision is to create shared value materials for the Biogolf in everything we do. This is Nature SX golf ball. This essential to maintain longhigh quality golf ball is the term relevance and only golf ball in the world to stay successful that is 100% biodegradable as a company. and plays like a normal This is why we golf ball. collaborate with a Bas Alblas, managing director of Every year, around 300 variety of stake- Lamb Weston/Meijer. million traditional golf holders in several balls, made from plastic ways. This includes consumers and heavy metals, are lost in the US alone. and customers, employees, There are no reliable figures available for growers and other suppliers, other countries. Lamb Weston/Meijer’s and our shareholders. We con- Dutch production sites are supplying the basic raw material for the biodegradable From Wedges, Twisters and CrissCuts to coated and spiced fries, sider sustainable thinking and to sweet potato fries and potato-based appetizers, Lamb Weston acting to be important buildgolf ball and its international brand name has been at the forefront of the development of value-added potato ing blocks of our business features on the golf-ball packaging with the products. strategy.” slogan ‘Powered By Potato Solutions’. J goal and now leads the sector in this area. Lamb Weston/Meijer is also following its sustainability roadmap in other areas, for instance by already using 4.8% less water per tonne of finished product. Since 2008, it has also reduced its direct energy usage by 10.9% and its total carbon footprint by 6.9%. “We have set ambitious objectives through 2020, like a 50% reduction in direct water usage per tonne of finished product, and a 30% reduction in direct



Sustainable Temperature Controlled Transport Solutions From VISBEEN ISBEEN specializes in frozen and temV perature controlled transport (groupage and full loads). The company operates transport solutions right across Europe on a daily basis, enabling it to meet your logistical needs throughout 365 days of the year. Whatever the size of the consignment, whether it’s a small business or a multinational, VISBEEN has the right solution for it, because it cares! From the Cross Chain Control Centre, VISBEEN is able to coordinate and direct your entire supply chain. This relates not only to arranging and managing actual


flows of goods, but also to complete data management, consignment traceability and making visible financial data within the supply chain. Make VISBEEN your single point of contact for operational and tactical logistics services. * Get a more complete overview and improve the coordination and traceability of your activities; * Save in supply chain costs by combining routes, multi-modal options and loads; * Control Tower Reduce the pollution of the environment. VISBEEN is providing sustainable solutions for customers. Combining transportation methods VISBEEN opts for the most efficient transportation method. For example, with the Intermodal solution to and from Spain and Portugal there is less CO2 emission, VISBEEN can improve the management of driver hours regulation, therefore maximising scheduling and reduce the influence of volatile fuel prices and increasing toll costs. Because of the reasons above and the matching vision and strategy, Lamb Weston/Meijer chose VISBEEN for a strategic alliance for the distribution of its products in the Benelux, Great Britain and France. Both parties are constantly looking FOOD & DRINK BUSINESS EUROPE, APRIL 2014

for new opportunities to control logistics costs. Both also scrutinise the entire transport chain and encourage long-term cooperation between different companies in the chain. Furthermore, LW/M and VISBEEN share sustainable ambitions. Using every transport modality plays an important role intelligent transport by water and by rail saves fuel consumption and produces cost savings. That is why there is an active focus on sustainable transport solutions. For example, deliveries to Great Britain, Ireland and Spain are by water and inland barges are used for transports from Bergen op Zoom to the port of Rotterdam. Scandinavia is supplied by rail. J




Packo NanoPad Seal Works For 2 Years @ 140°C n April 2011 Packo replaced a pump from a German manufacIgroups turer in a milk sterilization unit in one of the leading Dairy in France. The pump was used in a UHT flash pasteurizer to transfer hot water at 140°C through a heat exchanger. It had a double seal, but the seal needed replacement every month. The biggest challenge was to find a reliable pumping solution by using a single mechanical seal configuration for continuous operation against vapor conditions. To check the true operating conditions, such as available NPSH, Packo first supplied a pump type ICP+/40-250/1102 with a double mechanical seal.

Today numerous Packo pumps have been equipped with the ‘NanoPad singe seal’ for all different kinds of solutions such as UHT sterilization, CIP return, etc. Are you also looking for a reliable, cost saving solution to solve your seal issues? Please contact Packo Inox on Tel +32 51 51 92 80, Fax +32 51 51 92 99, Email or visit J

Compared to the German competitor the NPSH value of the Packo pump was significantly lower (0.5 m for the Packo pump compared to competitor’s 1.5m) resulting in less risk on cavitation! The supplied solution with double seal worked fine for several months without any seal failure. Once this was working fine Packo could go for the second challenge, finding a solution with a single mechanical seal. Into the same Packo pump the double seal was replaced by a tailor made single seal called a ‘NanoPad’. The NanoPad seal has special seal faces combining hard faces with low heat absorption characteristics resulting in a mechanical seal which should be extremely suitable for operation against vapor and frequent dry running conditions (i.e. during CIP return). In November 2011 the NanoPad seal was installed for a test in the Packo pump. The first inspection after 3 months showed that the sealing faces were still fine but the Viton O-rings showed some fatigue. They were replaced by a different Viton compound. Since that day the pump works without any problem. Result: from 1 month life time to more than 2 years: * Cost saving of spare parts: 24 double seals * Cost saving due to reduction in downtime * Cost saving because there is no water consumption * No more contamination risks due to leaking seals. 66



VMEngineering Designs, Engineers, Implements and Sustains Innovative Dairy and Food Production Solutions perating within the dairy sector and O wider food industry throughout Europe, VMEngineering acts as the lead consultant with its customers for the design and implementation of a wide range of food processing and packaging installations. The business is based at Rosmalen in the Netherlands and also has an office in Bury for its UK operation. The wholly independent engineering, design and project management company provides a comprehensive range of services. These include consultancy through strategic master planning, project management, detailed design, procurement, implementation, post project review and optimisation. VME offers: * Packaging and materials handling design and implementation; * Liquid processing design and implementation; * Mechanical and electrical engineering capability; * Line management system design and implementation for improved business performance. VME operates predominantly in the UK,

Ireland and Benelux areas but has also completed assignments further afield. At any one time, the company is managing projects and service contracts worth up to Eur50 million. Through its team of 30 highly experienced engineers and consultants working with support staff within the organization, VME brings an exceptional level of expertise in the design of processing, packaging and line management installations. VME is adept at adding value, especially in the early part of a project where the knowledge within the organisation can help clients to achieve cost effective solutions to their needs. VME concentrates on delivering solutions for its clients that have cost certainty allied with technologically advanced designs. VME consistently delivers against the capital expec-

tations of its clients and understands the operational requirements for successfully executing projects. Indeed, VME’s ability to maintain the highest standards of engineering and design has made the business successful. The company has also been successful over the past three years in implementing line management systems at various client locations through its joint venture ‘Pi2M’ with the support of Pro-FA Automation, its technology partner. For further information visit or J

Innoterm – The Refrigeration and Heat Pump Specialist nnoterm A/S – formerly IMontage known as IndustriVest - offers experience in design, installation and maintenance of industrial refrigeration and heat pump plants for food and drink processors. This covers design and installation of turnkey refrigeration plants, to replacement of single components, overhauls and refrigerant-conversion projects. Next to pay roll the refrigeration utility systems often represents the highest operating cost, therefore Innoterm focuses on delivering systems, with the highest possible efficiency in order to save on energy costs, increasing profits for the end-user. Innoterm is located in Denmark, but has designed and built various plants in the neighboring countries eg Sweden, Norway, The Faroe Islands, Germany and the United Kingdom.

Slaughterhouses, dairies, breweries and animal food processors, are just some examples of industries that Innoterm collaborates with. Internationally known customers are Hilton Food Group, operating meat processing factories in Denmark, and Arla Foods amba recognized for its high quality dairy products. At the first Hybrid Heat Pump installation in Denmark, Arla Foods recovers waste heat by an electrical driven heat pump from Innoterm. The result is that Arla lowers its C02 emission by 1,150 ton/year, supporting their target of a 25 % C02 reduction. In the newly built and highly advanced Danish Crown cattle slaughterhouse – the biggest cattle slaughterhouse in Northern Europe - Innoterm has supplied a 4,5 MW turnkey refrigeration plant, using the latest developments in compressor technology FOOD & DRINK BUSINESS EUROPE, APRIL 2014

and system design. As part of the Innoterm plant, a supercharge heat pump will utilize condensing heat from the refrigeration plant to heat up cleaning water, recovering 15–20 % of the excess heat. Key trends among most industries today, are the focus on green technologies, reducing the carbon dioxide foot print and branding the company name, creating a green image of the company. Innoterm only uses natural refrigerants in their refrigeration and heat recovery systems. Furthermore since a refrigeration system is expected to have a lifecycle of more than 20 years, this means reliability, energy efficiency, flexibility and serviceability are all very important issues for the end-user, as well as Innoterm. J 67


Water Injected Screw Compressors – The Most Economic Option For Genuine 100% Oil-free Air here is no doubt that food and drink industry processes require compressed T air that is guaranteed to be totally pure, with no possibility of oil carry-over to contaminate the product. Filters and catalytic convertors will always have an element of risk and the only safe option is a genuine oil-free machine.

the former has disadvantages in both capital outlay and, more importantly, in running costs. Heat generated in compression means loss of efficiency to generate the correct volumes of air needed – meaning less air delivery per kW used. Thanks to the superior cooling capability of water, the Worthington Creyssensac WIS range removes the heat efficiently at source meaning that more air per kW is generated and electricity costs are cut substantially. The WIS compressors have polymer ceramic rotors and water lubricated bearings, ensuring that no oil contaminates the element. The resultant air is classified Class “0” – ISO8573-1. The zero indicates absolutely no oil carry-over.

The heart of Worthington’s WIS range benefits from polymer ceramic rotors and aluminium bronze housing.

20% Efficiency Increase

There are two alternative technologies available – the dry-screw (adiabatic) and the water-injected screw (isothermal). But

The largest cost in owning and operating a compressor is in the electricity used to power it – well over 70% of the lifetime costs. Any reduction which can be achieved in usage

20% savings due to lower temperature of compression. Isothermal compression (water injected) has constant temperature in the compression element. Whereas, adiabatic compression (dry screw technology) results in all the compression heat being transferred to the resultant compressed air.


here can be significant and the Waterinjected Screw shows that around 20% less power is needed to generate similar volumes of air, because of the constant temperature in the compression chamber. There are also savings in wear and maintenance. The aluminium bronze element housing gives added strength and durability and the hydrodynamic bearings ensure long life and smooth rotation with no physical contact in the bearing itself. A direct drive motor also reduces bearing stress and energy loss. Reverse osmosis ensures a constant supply of high quality water, avoiding corrosion and bacteria growth. Service is only required every 4000 running hours. With pressure options from 7.5 to 13 bar and further energy savings of up to 35% to be made with optional fully integrated inverter drive technology, the WIS range is backed by Worthington Creyssensac’s 145 years of experience and a worldwide specialist distributor network for all installation and maintenance. For more details contact Worthington Creyssensac on Tel +44 (0)1925 817803, E-mail J 69


Reliable Instrumentation and Calibration Services From PJ Boner & Company .J. Boner & Company has been providing all sized companies throughout Ireland with a quality and reliable Instrumentation P and Calibration service for more than 35 years. P.J. Boner employ dedicated qualified staff complete with certified test equipment to provide on-site calibrations for a variety of parameters including but not limited to Temperature, Pressure, Humid ity, Flow, electrical, pH, Conduc tivity and Weigh ing. P.J. Boner has Flush transmitter in Control Panel. been certified to ISO9001 for 20 years, and this has led to the organisation working completely within the Quality Management System to ensure they are providing the best possible service to customers, continuously.

Control, Kimo, Precision Digital, Signatrol, InduTech and Dickson. Having an expertise in Weighing, they also represent internationally recognised weighing companies including Adam Equipment, Applied Weighing, Kern, Ohaus and Rice Lake. TekTroniks is also represented by the company and their Wireless Temperature Monitoring System has been installed in a number of Food and Diary plants in Ireland. For more information or to arrange an appointment to discuss your needs, call 01-4505050 or visit J

Quality Documentation

P.J. Boner understands that no quality or engineering department can function without the correct documentation and we aim to make this as easy as possible to have these critical documents available when required. Upon completion of any calibration and service work on instrumentation, the customer will electronically receive the calibration certificates plus an up-to-date instrument list with new due dates shown and instrument status, these reports are available online immediately for viewing or download at a future date. We also provide complete backup documentation including reference certificates, SOPs, Kimo Transmitter in Warehouse. Method Statements, Qualification and Safety records. Products and System

P.J. Boner & Company are Distributors for a number of leading manufacturers from the UK, USA, France, Germany & Switzerland who they distribute high quality, Measurement & Control products to the Irish market from brands such as Status Instruments, Huba 70



CeramicSpeed Hybrid Bearings Cut Operating Costs he market for CeramicSpeed hybrid T bearings has a huge potential for growth, as companies become increasingly

This means that bearings that last 4 to 8 times longer can significantly reduce operating costs. As a rule of thumb the total costs of replacing a bearing are generally 2–10 times higher than the price of the bearing itself – these costs are often overlooked. Taking the total costs associated with replacing a worn bearing into account, a CeramicSpeed bearing solution usually pays for itself within 1 to 2 lifetimes of traditional bearings, despite a higher purchase price. When considering potential bearing solutions, and the associated operating costs, it is important to take both bearing lifetime and the demands of high efficiency production into account - which can place extreme demands on bearings. In the past, bearings have not been considered as an important factor when calculating production efficiency. Including bearings in calculations of production efficiency highlights the size of potential sav-

aware of the long-term savings these bearings make possible.

Bearing lifetime has a significant effect on the total operating costs in a production facility. The cost of the bearings themselves forms a very small part of the total cost of the machines in which they are installed both in new machinery and in maintenance. However, the cost of maintaining or replacing bearings can be much higher.

ings, and the potential to increase competitiveness, with CeramicSpeed bearings. Availability of Hybrid Bearings

CeramicSpeed LongLife hybrid bearings are available in complete series of ceramic ball bearings and ceramic coated roller bearings, both of which have significantly better capabilities in terms of lifetime and functionality than traditional high-quality steel bearings. The bearings can simply replace traditional all steel bearings without any additional changes to machinery. This offers the industrial customers a significant opportunity to lower cost and increase production efficiency without any risk. J


Allergen Management in Food Manufacturing Sites – BRC Global Standards Publishes a Best Practice Guideline RC Global Standards is has published a B Best Practice Guideline that looks at allergen management in food manufacturing sites. Effective management of allergens remains a significant challenge to the food industry and the guideline has been designed to provide further explanation of the allergen management requirements of the BRC Global Standard for Food Safety. It will help individuals and companies in the development of robust allergen management systems and procedures which adequately meet the requirements of the Standard. The guideline primarily concentrates on five themes: * Significance – the significance of any process, activity or ingredient should be evaluated by accurate risk assessments to determine the control or action required

* Suppliers – understanding the materials that arrive on site is vital to allergen management * Separation – the segregation of allergens is a key allergen management control * Scheduling – planning activities to reduce the risk of cross-contamination * Sanitation – cleaning controls to remove or reduce the risks of cross-contamination. BRC Global Standards are the world’s biggest provider of safety and quality Standards’ Programs for food manufacture, packaging, storage and distribution. BRC Global Standards are generated with the help of technical specialists, retailers, manufacturers and certification bodies from around the world, so everything is based on practicality, rigour and clarity. Further information can be found on J




A Family Totally Devoted to Stainless Steel AMSTAHL as well as NEUMO and RIEGER are part of D NEUMO-Ehrenberg-Group. Employing more than 1.800 employees worldwide, the family-owned NEUMO-EhrenbergGroup has been stocking, distributing, handling, manufacturing, thinking and teaching “Stainless” for more than 65 years. In 1947 Senator Henry Ehrenberg founded his first company NEUMO in the South of Germany under the full name of Neue Molkereitechnik (New Dairy Technology), manufacturing stainless steel valves and fittings for that industry. Nowadays not only does the well-known stainless steel wholesaler DAMSTAHL belong to the Group but also five bigger manufacturing sites in Europe and Israel as well as their own distribution and service centers worldwide, including their own facilities and warehouses in the US, China, Vietnam, Turkey, Russia, Poland, Hungary, Spain and the UK. The big DAMSTAHL facilities in Denmark, Sweden, Norway, Germany and Netherlands are used as additional “hubs” for marketing activities in DAMSTAHL countries supporting European and American multinationals worldwide.

ic and aseptic processes, bringing together best concepts and manufacturing technologies for stainless steel equipment, which is used in the pharmaceutical industries as well as in the food, dairy and beverage production. Staying in constant contact with engineers and technicians in these industries, the Group recognizes the specific needs and requirements for better cleanability as well as lower maintenance cost, reduced consumption of water and energy as well as high availability of all components in the process. Specials For Dairy

The Group’s company Rieger has been developing a complete system of aseptic and hygienic pro cess valves for Rieger double seat valve. different applications in the dairy industry following American requirements like 3A and PMO that have earned a strong reputation in the industry. AWH offers cleaning equipment for dairy processes and EGMO is a leading manufacturer of 3A fittings for the US market. NEUMO’s patented coupling ConnectS is a unique solution offering elastomere free static sealing of process components. It saves the separate sealing element and thereby eliminates maintenance time and cost for replaceNEUMO Check Valve. NEUMO aseptic coupling ConnectS. ment of seals. NEUMO ConnectS is a Focus on Hygienic Design and Maximum Cleanability crossover product that meanwhile is used for challenging processes The Group’s manufacturing companies - EGMO in Israel, HER- and pipe systems in pharma, food and powder technology. RLI in Switzerland and NEUMO, RIEGER and Armaturenwerk One family/one Group – more than 25 companies worldwide – Hötensleben (AWH) - develop and design components for hygien- ready to serve You! J I MEAT PRODUCTS

Snowbird Goes the Whole Hog! nowbird Foods has taken a huge step in S the sausage manufacturing industry by offering UK customers a guarantee that its fully cooked and frozen sausages are in natural casings sourced from British abattoirs and processed in the UK. The company is using the casings for its Gourmet and Gourmet Plus ranges of top quality sausages. The switch to British natural casings follows an earlier move in which the company had upgraded the products by exclusively purchasing pig meat from a single source and from carefully selected breeds of pig which delivered the best meat for making

sausages. Both ranges are multi-award winners, with Gourmet Sausages containing a minimum of 75% meat and Gourmet Plus more than 90%. “Following our move to procure British pig meat from our choice of breeds we spent time and effort seeking natural casings so we could happily boast we have gone the whole hog,” says Snowbird sales director, Roy Anderson. The upgrade to natural British casings was made possible by Yorkshire company Harder Bros, which had acquired, refurbished and re-equipped a BRC approved FOOD & DRINK BUSINESS EUROPE, APRIL 2014

factory especially to prepare British natural casings for the sausage industry. J

Roy Anderson (left) and Philip Sharp.


Customized Solutions From ACTEGA gainst the backdrop of increasing A product responsibility and the growing significance of food safety ACTEGA DS committed itself very early on to advancing a PVC-free strategy and developed TPE-technology. This technology had been used in the food sector for decades, starting in the early 1980’s with PVC-free granulates for crown and aluminum caps. A success-story has been written with the development of PROVALIN® 1241, the worldwide first and to date only PVC- and plasticizer-free sealant compound for high oil/fat content


in jars with Twist-Off caps. On this basis, additional variants of the PROVALIN® family have been developed. A wide range of applications is meanwhile available enabling practically all requirements involving contents, closing processes, storage and closure sizes. A new milestone has been set with the development of a sealant compound for lightweight crown corks. In light of the requirements concerning efficiency of resources and energy the industry evolved the low-gauge crown cork which is 0.07 millimeter thinner and 0.24 grams lighter than conventional crown corks. Similar to metal vacuum twist closures, the sheet thickness of crown corks can only be reduced with the aid of a special sealant compound. After all, the sealant is required to assume some of the steel's characteristics. This is only possible using an extremely flexible and soft plastic. ACTEGA DS met the challenge. Free of PVC, a true innovation has been achieved in the form of the SVELON® 830 LG sealant compound. This com-


pound is also based on thermoplastic elastomers, a group of materials whose enormous flexibility and high degree of thermal and media resistance has displayed major advantages in processing and recycling in practically all areas. Now ACTEGA DS faces the challenge of developing a sealant compound for crown corks with a sheet thickness thinner than 0.15 millimeter. J


SABMiller Attracts ‘MegaBrew’ Deal Speculation Speculation is mounting about a possible takeover of SABMiller, the world’s second largest brewer, by global leader Anheuser-Busch InBev. he bid rumours have helped lift SABMiller’s share price, which has been weakened by concerns about slowing growth in emerging markets and adverse currency factors undermining its earnings. SABMiller has grown from its South African roots to become one of the world’s largest brewers, with brewing interests and distribution agreements across six continents. The group's wide portfolio includes global brands such as Pilsner Urquell, Peroni Nastro Azzurro, Miller Genuine Draft and Grolsch, as well as leading local brands such as Aguila, Castle, Miller Lite, Snow and Tyskie. SABMiller is also one of the world’s largest bottlers of Coca-Cola products. In the year ended 31 March 2013 SABMiller sold 242 million hectolitres of lager, and delivered revenues of $34.49 billion with EBITA of $6.42 billion. Latin America, South Africa and Asica Pacific


contributed 32%, 19% and 13% of EBITA respectively, with Europe, North America and Africa each generating 12%. Exposure to Developing Markets “With some 72% of EBITA coming from developing markets, SABMiller continues to enjoy the highest exposure of any global brewer to a wide number of growth opportunities in the beer industry,” points out Alan Clark, chief executive of SABMiller. By contrast, about 80% of AB InBev’s EBITA is generated in four countries - the US, Canada, Brazil and Mexico. In recent times, SABMiller has been affected by adverse currency factors, such as the depreciation of the South African rand, Australian dollar, Peruvian Nuevo sol and

Alan Clark, chief executive of SABMiller.

Colombian peso against the US dollar, and its third quarter performance was below market expectations with disappointing beer volume growth. Improvement According to analysts at Bernstein Research, SABMiller is now probably through the worst, with material improvements in growth trends expected over the course of the next six to twelve months. Furthermore, the possibility of a bid by AB InBev has become more likely. According to Bernstein: “The ratio of relative market caps has swung in favour of AB InBev (reducing the required leverage on a debt-financed deal), as has the ratio of PE's (making any potential equity component less likely).” Bernstein still believes that “the short-medium term likelihood of a bid is low, as the financials look stretching and the executional challenges are huge. However, the odds have shortened that AB InBev will one day make a bid.” ‘MegaBrew’ Dubbed ‘MegaBrew’ by Bernstein, the acquisition of SABMiller is the last major deal open to the acquisitive AB InBev. Aided by a series of acquisitions valued at $91

billion, the largest being the $61 billion (including debt) purchase of AnheuserBusch by InBev in 2008, AB InBev has increased revenue by more than fivefold during the last ten years. However growth is expected to slow during the next decade. SABMiller has also expanded rapidly through acquisition purchasing almost 50 companies in the last ten years, including Foster’s Group for about $13 billion in 2011. Harnessing SABMiller’s presence in high growth markets such as Africa would provide AB InBev with fresh impetus and new opportunities for expansion. The addition of SABMiller would give AB InBev revenues of over $7 billion in Africa and about $4 billion in Asia. As Latin America is SABMiller’s largest market, a deal would considerably broaden AB InBev’s standing in the region. A combination of the two brewing giants would also control almost half of the global beer profit pool. Alan Clark admits that a case could be made for a merger but declines to comment on whether any discussions between the two companies have taken place. A furure deal would require divesting US operations to satisfy competition authorities. MillerCoors, SABMiller’s joint venture with Canadian brewer Molson Coors, is the second biggest brewer in the US behind AB InBev. A possible price tag of up to $120 billion, including $16 billion of SABMiller net debt, has been suggested by some analysts. J

SABMiller’s portfolio includes global brands such as Pilsner Urquell, Peroni Nastro Azzurro, Miller Genuine Draft and Grolsch.





Bureau Veritas Has Local Presence and Global Reach ased in France and employing 62,000 people at 900 locations in 140 counB tries, Bureau Veritas Group is one of the largest companies within the inspection, classification, consulting and certification market. Its core skills include quality, environment, occupational health, food safety and product certification, which enable companies to maintain and develop their brands, values and business. Bureau Veritas works with a wide range of leading food and beverage companies, such as Arla Foods, Nestle, Carrefour, Royal Greenland, McDonald's, Nortura, Leroy and Heineken. Bureau Veritas is one of the world's largest certification bodies and specialises in many sectors, including food and beverage. Bureau Veritas offers a wide range of certifications including Global GAP, MSC, ASC, ISO 9001, ISO 22000, CSR, IFS and BRC. Furthermore, the company provides courses and inspections on hygiene, quality awareness training, as well as supplier inspections. Bureau Veritas is highly committed to the work of ISO 22000. Indeed, Country Chief Executive for Denmark Jacob Færgemand chairs the ISO 22000 Committee. The range of services offered, enables Bureau Veritas to serve the vast majority of customers and stakeholders across the supply chain.

for its customers. The services offered cover all players within the value chain. Consequently, customers working in collaboration with Bureau Veritas require only one partner with regard to achieving certification. Each year Bureau Veritas assists a number of companies in making improvements that streamline and enhance food safety. For instance, Bureau Veritas has helped trade association ‘Danish Poultry’ in creating a system that ensures well-documented chicken rearing. Bureau Veritas gathers the threads, and then does an audit of everything from feed suppliers and cleaning companies, to hatcheries, etc. Bureau Veritas is working strategically with a number of clients such as Arla Foods. Indeed, Arla Foods has grown into a

Country Chief Executive for Denmark Jacob Færgemand.

Environment. In Bureau Veritas, we are able to utilize our experience from many different fields, as we monitor and act on these trends. This way our customers can stay ahead.” For example, Bureau Veritas has extensive expertise within the automotive industry. The lessons it has learned in this field can be utilized in other industries, including food, risk assessment and vendor management.

One Stop Shop

Bureau Veritas provides a ‘one stop shop’ strategic business partner. As new Arla sites have been added, Bureau Veritas has moved around the world with the dairy group. Due to the global size and strength of Bureau Veritas, international customers like Arla Foods can be accommodated, and by working closely together, new improvements and added value are achieved. New Developments

”When it comes to new standards, Bureau Veritas is in the lead. We were among the first to take in the ASC standard in salmon breeding in Norway. Currently we are working on ASC certifications of Danish trout,” says Jacob Færgemand. He continues: “We see the food and beverage industry moving in the direction of CSR and sustainability. Generally there is a lot of focus on Health, Safety and FOOD & DRINK BUSINESS EUROPE, APRIL 2014

Local Presence and Global Reach

“In Bureau Veritas, we are pioneers and we track new market developments very carefully, in order to be able to support our clients in responding to new requirements, rules, etc.” he says. “The group has a size that enables us to help our customers wherever in the world there is a need for it.” Jacob Færgemand concludes: “We have strong local presence everywhere, due to the large international network of offices and labs within Bureau Veritas. Thus we are able to offer audits carried out by a local auditor with knowledge of local laws, language and culture. We are working with the standards and we diligently work on adding value for our customers, for instance through streamlining processes.” For further information visit J 77




Laser Sorting Technology Enhances Pea Quality at Birds Eye OMRA Sorting, exclusively represented in the UK by Stein Solutions, has supT plied two Best Helius™ free-fall laser sorters to Birds Eye’s Lowestoft factory in order to provide greatly enhanced quality checks for the company’s market-leading frozen peas.

Birds Eye, part of Iglo Foods Group, says that the new sorters are allowing a far greater number of contaminants to be detected and removed – up to 99.5% efficiency for most defects – while reducing the overall yield loss of each production run by as much as 50%. In addition, overall throughput has risen by 33%. As a result, the sorters are delivering a return on investment of less than one year. The Birds Eye factory processes and packs 36,000 tonnes of peas each year. The peas are frozen within two and a half hours of being picked and then called into the factory as required for cleaning, grading and packing. Typical contaminants that need to be removed include caterpillars, snails and stones from the soil, and pods and other parts of the pea plant. Detecting Defects and Contaminants

The Helius™ uses laser technology to detect all types of colour and structure defects in a stream of good product. In addition, thanks to its patented FLUO™ technology, the machine is also able to spot contaminants by assessing biological charac78

teristics that are invisible to the human eye. For the sorting of peas, it can detect the slightest shades of chlorophyll to distinguish between good products and defects. This makes it far more sensitive and accurate than the camera-based systems using UV light that it has replaced. “Caterpillars were a major weakness with our old system,” explains Quality Assurance Manager Paul George, “since if they were rolled up into a ball they were not easy to distinguish from the shape of pea. Similarly small parts of the pod could be missed as they were very close in colour to the pea. “The Helius™ sorters, by comparison, have an efficiency rate of 99.5% for caterpillars and minerals, and 98% for pods. This level of accuracy means we can harvest more of the crop initially. Equally important, the reject system is more accurate so that we lose fewer good items during the process. This has allowed us to increase the quality of the product while also increasing the overall yield.” The two Helius™ machines have replaced four of the older models from a competitor and this has freed up staff to carry out other duties on the line. More Reliable and Accurate “Our old equipment needed regular monitoring but the Helius™ sorters are far more reliable,” confirms Paul George. “We also find the freefall sorting system works better than a belt in achieving more accurate rejection rates.” In addition, the Helius™ laser technology provides a more consistent operation compared to fluorescent tubes which can deteriorate over time. Equally important, the machines can continue to function in both extreme hot and cold enviFOOD & DRINK BUSINESS EUROPE, APRIL 2014

ronments. Birds Eye says that the installation of the equipment went smoothly. Full training was provided for operators at TOMRA Sorting Food’s headquarters in Belgium. “We have an excellent working relationship with Stein Solutions and TOMRA and this ensured that the installation process was seamless and well-managed,” comments Jon Wetherell, Birds Eye’s Project Engineer. The factory processes and packs 12 tonnes of peas per hour into a range of pack sizes from 400g to 1.37kg, as well as smaller 286g bags of Petit Pois, working 24 hour shifts, five days a week. “Thanks to the efficiency of the Helius™ sorters cleaning is no longer an issue in terms of packing speeds,” says Manufacturing Manager Ashley Skelly. “Indeed, we could run the machines faster but final throughput is now governed by the speed of some of the equipment downstream of the sorters.” J




Smarter Cleaning Solutions From JEROS anish company JEROS specialises in the manufacturing of dish washers, D utensil washers, crate washers, conveyor tunnel washers and tray cleaners for the food processing industry, as well as for the retail and food service sectors. With more than 50 years of experience, JEROS has developed a wide range of high quality products to meet the rigorous hygiene requirements of the food industry, as well as offering tailored solutions for individual customers. JEROS products and cleaning solutions are characterized by the highest standards of hygiene with the lowest possible water, energy and labour costs. All washing solutions are available in various models to suit users of all sizes across virtually all sectors of the food industry. Operating from its base in Odense, JEROS has developed a strong global network of experienced dealers and service organisations.

rotating wash arms provide a brilliant wash result. A constant temperature of 85 C during the entire rinse period ensures that sanitisation of the utensils is achieved. The high temperature rinse also facilitates fast drying of the utensils. The new generation of JEROS Utensil Washers - the 9100 Series comprises a total of five new models: 9110/9115 with rotating wash systems and 9117/9120/9130 with wash frame system. Inside, the machines have been thoroughly redesigned, focusing on hygiene and easy cleaning. The 9100 Series offers energy saving up to 25% and all models include as standard an environmentally friendly ‘ECO wash’ programme for less dirty objects. Pushing ‘ECO wash’ means the machines wash with a reduced wash temperature and use less soap but still rinse with 85 C hot water to guarantee hygienic results. Crate Washers

The compact JEROS Crate Washer Model 200 was specially developed and designed for small and medium sized companies and is specifically suitable for all Euro crates and comparable products. It is manufactured throughout in stainless steel.

Utensil Washers JEROS Utensil Washers have been specially designed for optimum handling. The lid opens fully to allow easy operation and loading without causing back-strain to operators. The machines are designed for easy installation even in the smallest production areas. Furthermore, the machine can be used as a sink when not in use as an automatic utensil washer. JEROS Utensil Washers meet the highest hygiene standards, removing even the most persistent dirt. The fully automatic detergent dispenser ensures the optimum dosage of soap. The powerfull pumps and

Tray Cleaners JEROS Tray Cleaners incorporate driving rollers that are precisely adjusted for a certain tray thickness to ensure a smooth flow of the trays through the machine. A pre scraper loosens heavily burnt deposits on the trays helping to prolong the life of the brushes and reduces the need for cleaning the machine. Two safety switches provide excellent operator safety and an auto-oiling feature is also included. The JEROS tray cleaner reduces labour costs and is capable of cleaning and greasing 100 trays in 6-8 minutes. The new 9014 and 9015 tray cleaner models from JEROS offer the user significant hygienic advantages as all of the machine can be cleaned with water. Furthermore, the construction and new design help optimise noise reduction. Customised Washing Solutions JEROS designs customised solutions to FOOD & DRINK BUSINESS EUROPE, APRIL 2014

meet the specific hygiene and cost saving requirements of its customers. For example, JEROS recently devised a comprehensive washing solution for Arla Foods’ white cheese cutting and packaging plant at Krusa. The washing system incorporates a JEROS 8160 industrial washer along with specially constructed trolleys and MultiWashing-Insertions for cleaning conveyors and the removable parts of the cheese line. Operating costs of the cleaning system have been minimized through the use of a sensor dosing system for detergents and thermostatically controlled heating elements. Other cost saving features incorporated into the system include adjustable wash pressure and temperature, drain pump, automatic start, self-cleaning programme and micro-steering by finger touch control panel. The system represents a multi-purpose solution as it is also used for other cleaning tasks at the cheese plant. Cleaning Multi-head Weighers

JEROS has also developed an industrial cleaning system for multi-head weigher components. The JEROS ACE is a flexible and efficient cleaning system for scale parts. It speeds up the production output by reducing the product change-over time, cuts labour costs, and makes cleaning easier and more hygienic. The JEROS ACE system was also installed at Krusa. A JEROS ACE system was recently installed at Ishida’s headquarters, to show customers a practical solution for the quick and safe handle of weighing scales, whilst guaranteeing a hygienic wash with controlled temperature. For further information on JEROS, visit J 79




Made in Britain’ Tag Not Just About Patriotism ood health scares always make the news and F lead to calls for increasing regulation in the industry. So what can hard-pressed food processors do to make sure that problems don’t occur in their supply chain? A great starting point is to get the basics right and make sure that all food contact materials are fit for purpose; being hygienic, durable and easy to clean. And unsurprisingly, stainless steel is the material of choice for food processing equipment. Teknomek is one of the UK’s leading manufacturers of stainless steel hygiene furniture and equipment. Steve Mallet, managing director of Teknomek, notes: “There’s stainless steel and stainless steel – we only use 304 and 316 grade, so customers know they’ll get quality corrosion resistance with products that’ll deliver great longevity.” He continues: “The ’Made in Britain’ tag isn’t about patriotism, it’s about practicality – from order to manufacture in our Norwich factory and delivery anywhere in the UK can be no more than 5-10 days, with low transport costs an additional and important benefit.”


Despite the recurring media activity on food safety, there are no specific European or UK regulations for the use of stainless steel in the food industry in the UK. However the Food Standards Agency, in partnership with local authorities, is rolling out the national Food Hygiene Rating Scheme in England, Wales and Northern Ireland and the Food Hygiene Information scheme in Scotland. The schemes also encourage businesses to improve hygiene standards. The overarching aim is to reduce the incidence of foodborne illness. Teknomek is a member of the British Stainless Steel Association and also follows guidelines produced by The European Hygienic Engineering & Design Group (EHEDG), a consortium of equipment manufacturers, food industries, research institutes as well as public health authorities. The principal goal of EHEDG is the promotion of safe food by improving hygienic engineering and design in all aspects of food manufacture. For Teknomek, this means making sure that all products are designed for ease of cleaning and manufactured with hygienic TIG welds.


During production, great care is taken to protect all surfaces to ensure no pits or scratches that could lead to future hygiene problems. All cut edges are deburred and polished. Steve Mallett concludes: “If the grade of stainless steel is correctly specified for the application, corrosion should not be encountered. Surface finish and condition is very important to the successful application of stainless steels. Smooth surfaces not only reduce the risk of corrosion but also stay hygienically cleaner for longer. Stainless steel is naturally hygienic as it has an inert surface and can be cleaned easily.” Teknomek has a standard range of more than 1,500 products covering personal workplace, mobile and static storage, waste bins, dispensers, sinks, wash troughs and taps. A bespoke service is also available from its inhouse design service. The company’s experienced customer service team is always on hand to advise either over the phone or in person, to make sure that customers get the most costeffective high quality stainless steel solutions to meet their hygiene requirements. J




Hygienic Rooms For Egg Processing hen maintaining W a hygienic environment there are many elements to be considered by a contractor before any construction can begin. One of the main elements in the food processing ind ustry is the drainage. Having an inappropriate drainage system in a processing room that is in use and cleaned down on a daily basis can lead to a number of problems that directly lead to unhygienic issues around the work place. Recently, ASPEN Stainless has been working for Noble Foods, the leading supplier of fresh eggs, who demand the highest standard of hygiene when processing their eggs ready for the major retailers. Once briefed about the specific requirements, ASPEN chose the optimal drainage system to withstand the daily operations. Using their British engineered, stainless steel products, ASPEN manufactured and installed the Colorado 170 Drainage Channel and 3Bar Drain Cover accompanied by a number of Tiehack Gullies to complete the system. The wider drainage channel option was chosen for an increased drainage capacity to cater for the water flow levels that occur during the cleaning process. In addition to a brand new drainage system, ASPEN installed their range of stainless steel KC Kerbing creating a seamless room perimeter and providing a base for the walling and flooring which was installed by others. Further to the Kerbing being installed, extra protection was chosen from the ASPEN product range including high level goal posts to protect door entrances and stainless steel bollards installed along specific corridors where high levels of traffic will occur. ASPEN has their full product range online at where you can download the product technical data sheets. Alternatively, contact the technical sales team today to discuss your specific requirements; 0115 986 6321, J FOOD & DRINK BUSINESS EUROPE, APRIL 2014





The Right Food Grade Lubricant – It Makes a Difference ffective lubrication of food processing E equipment is becoming increasingly important. Manufacturing operations can be expected to run continuously and the equipment may have to endure conditions such as extreme temperature swings and contamination-prone environments. Finding a lubricant that meets stringent food safety standards, provides lubrication even under tough conditions, helps reduce downtime and ultimately saves time and money, can be a challenging task for even the most experienced plant manager. Beyond Food Safety Food grade lubricants are designed to protect your machines and ensure that even if there is incidental lubricant contact during food production, the risk of financial loss due to product waste or recall is reduced. The demands of today’s food manufactures extend beyond food safety. For many years, plant operators debated the quality and performance of food grade lubricants, not wanting to risk equipment performance or reliability. Petro-Canada Lubricants PURITY™ FG products challenge this perception. Through advanced technology, and expert research and development, Purity FG products are specially formulated to be as effective as their non-food grade counterparts and provide the highest performance from your equipment. With excep-

caused by micro-organisms.

tionally long life, and anti-wear technology, facilities can enjoy increased productivity, decreased downtime, and ample value based savings from the advanced protection and performance that quality food grade lubricants provide. Expand Protection Don’t just think about what you’re using; think about where you’re using it. It’s no longer as simple as applying lubricants to primary machinery. Operations need to make sure they’re protecting every nook and cranny of their facilities, down to the very last bolt. Among the more recent innovations in food grade lubricants is the development and utilization of sprays, which allow you to readily reach inaccessible spots and expand your plant protection. Sprays offer a quick and more convenient way to spot-lubricate areas such as chains, rails, small bearings and gears. The unique technology of Petro-Canada’s PURITY FG Aerosol Sprays line-up allows the product to be sprayed even when the can is held upside down, delivering lubricant protection in any direction. When dealing with food products and organic materials the risk of bacteria or micro-organism growth is possible. Food by-products and water contamination can build up in the lubricant creating a breeding ground for microorganisms. In response to this reality, Petro-Canada’s expert research and development team has advanced lubricants to a level where they can even protect themselves. MICROL™ and MICROL™ MAX, was the first EPA registered antimicrobial preservative to protect the lubricant from deterioration, fouling and odors FOOD & DRINK BUSINESS EUROPE, APRIL 2014

A Team of Your Own Petro-Canada goes beyond today’s standards by developing products that are made to meet your demands. No matter the challenge, PURITY FG food grade lubricants handle the intense environmental conditions that processing operations can breed. Petro-Canada’s experienced technical service team works directly with you to create a personalized solution that meets your operating needs. Take Advantage of the PetroCanada Complete Solution Food manufacturers are starting to take food safety to new levels. In addition to complying with regulation standards and practices (i.e. programs like GFSI, HACCP, GMP etc.), Petro-Canada is finding that many of today’s food manufacturers are going beyond these standards, mandating that food grade lubricants be used in all equipment, including even forklifts in some instances. When manufacturers are able to employ H1 registered food grade lubricants across their full facilities, it not only helps them to meet industry demands, but also delivers peace of mind in knowing that products are safer in the event of incidental contact with the lubricant. There is significant value in working with suppliers who can provide complete protection across the board, from hydraulics to compressors, greases and gears. PetroCanada Lubricants is committed to going beyond today’s standards by offering a complete solution for food manufacturers, providing the benefits they deserve and the food safety they demand. J





Increased Output and Reduced Costs in Soft Drinks Production n increase in machine reliability and the improvement of lubriA cation management practices in order to maximise output in one of their plants was the objective of a globally active soft drink producer when they approached tribology expert Klüber Lubrication. One of the plant's seven bottling lines was chosen for the improvement project. Analysis was undertaken and this devel-

Typical operating cost reductions for a food manufacturing plant can be more than £100,000 per annum. Implementation time for an advanced lubrication program is approximately six months, with payback in nine to twelve months.


oped a comprehensive lubrication plan. Following implementation mechanical breakdown was reduced, while output increased significantly. Increased Production Output The plant operates on a three-shift system, 24 hours a day. Theoretical filler speed of the bottling line is 24,000 bottles per hour. Prior to consulting Klüber Lubrication, utilisation was 55%: 1,760 cases were bottled per hour, equalling 42,240 cases a day. Klüber Lubrication went ahead with its proven KlüberEfficiencySupport package. Within nine months, production loss due to machine downtime was reduced from 7.4 per cent to 2.5 per cent, resulting in a substantial increase of production output: throughput increased to 72 per cent, equalling 2,304 cases per hour, or 55,296 cases a day - an increase by roughly 13,000




cases or 32 per cent a day. The increased production capability enabled rapid response to order and delivery schedules and a reduced unit cost of manufacture. In addition, the number of different lubricants was decreased from formerly 47 to 26, resulting in lower storage costs as well as a reduced risk of lubricant mix-up; all without compromising lubricant quality and standards. Implementation in Practice The comprehensive approach of KlüberEfficiencySupport includes the lubrication of all equipment throughout the entire bottling line. Klüber Lubrication proceeded in several steps. Based on a comprehensive pre-audit, the objectives to be achieved within a time frame of 12 months were fixed. The exact requirements of all persons involved in the lubrication process were precisely defined for the first time. In addition, intensive training sessions on lubrication matters took place. All this resulted in increased lubricant awareness and increased beverage safety.

A comprehensive lubrication plan and a food-grade lubrication regime for all lubrication points were implemented. Oil analyses were conducted as part of preventative maintenance programme. In addition, storage conditions for the lubricants were improved. Klüber Lubrication also with an HACCP audit (Hazard Analysis and Critical Control Points) by implementing only ISO21469 manufacturing site H1 lubricants. Constant monitoring during the adjustment period ensured that all measures were fully implemented and, if need be, adjusted. Conclusion This case illustrates the significant influence lubrication has on the efficiency of machinery. Typical operating cost reductions for a food manufacturing plant can be more than £100,000 per annum. Implementation time for an advanced lubrication program is approximately six months, with payback in nine to twelve months. For many food processors it’s worthwhile to partner with Klüber Lubrication in order to analyse and adapt lubrication management practices to reduce costs and increase productivity. J

For many food processors it’s worthwhile to partner with Klüber Lubrication in order to analyse and adapt lubrication management practices to reduce costs and increase productivity. FOOD & DRINK BUSINESS EUROPE, APRIL 2014




The Criticality of Delivering Integrated Food Quality Management Systems ithin the Irish Food Production sector, there is a growing trend W for the improvement of Quality Standards. Much of this initiative is being led by The Irish Food Safety Authority (IFSA) and Bórd Bía. QMS Solutions – The Specialists in Food Safety and Quality

QMS Solutions, as Quality Management and Irish Food Safety consultants, specialises in the implementation of Food Safety Management Systems for food producers in Ireland. The delivery of these standards are consistent with international best practice and in conformance to international regulatory and food safety standards as applicable to all sectors from primary producers to major food processors and laboratories to artisan suppliers, to food packaging manufacturers. IFS Food, essential for all food business operators exporting to continental Europe, BRC, Global Food Standard, essential for all food business operators trading with British multiples, ISO 22000, International

standard for food safety & quality management IS 340 / 341 HACCP – Irish regulatory standards applicable for all food business operators. Integrated Quality Management System For Food

In support of the above, QMS Solutions have developed an Integrated Quality Management System for Food (iQMSFood), that is conforming and Regulatory Compliant to Bórd Bía Quality Assurance


Schemes, based on ISO 17065. The system is a Holistic, Web Enabled and Scalable online application that is Market ready for Food Sector operatives such as Producers, Distributors and Manufacturers. For example, with Horticultural Food Producers, this system provides them with the tools to proactively control their entire Crop Development, Crop Husbandry and Crop Harvesting, that extends to their customers requirements, needs and expectations. No longer will a producer be dependent on guesswork to plan and prepare for crop cultivation for a season. This is critical when it comes to dealing with Multiple Retail Outlets, where their standards and demands can vary according to their requirements at the time. Key Benefits

The main benefits of having an Integrated Food Management Systems include: • Your processes become structured and organised around international food safety & quality standards; • Improved confidence of consumers and retailers in the organisations ability to perform; • Full legal and regulatory compliance; • Systematic and repeatable processes ensure greater efficiency and food safety; • Evidence that due diligence was afforded in respect of product quality, safety and legality in the event of legal action; • As a pre-requisite, such systems remove barriers to trade, allowing growth and expansion • Secures your business and saves money in the long run. In addition to guaranteeing food safety and legal compliance, QMS Solutions’ Integrated Food Safety Management Systems also adds value, where greater efficiencies can be achieved. For further information contact:, Tel 00353 1 8957677, Web: J 87

M E E R R G G E E R R S S M Chiquita and Fyffes to Merge Chiquita Brands Inter national and Fyffes are to merge to create a global banana and other fresh produce company with approximately $4.6 billion in annual revenues. Chiquita and Fyffes plan to complete the transaction before the end of 2014. Under the all share deal, Chiquita shareholders will own approximately 50.7% of ChiquitaFyffes, and Fyffes shareholders approximately 49.3% of ChiquitaFyffes, on a fully diluted basis. Chiquita has a global presence with operations in 70 countries, a sizable presence in the US market and widely recognized brands including Chiquita Bananas and Fresh Express. Fyffes is headquartered in Dublin, Ireland, with operations in Europe, the US, Central America, South America and Asia. ChiquitaFyffes will have an operating presence in more than 70 countries and a workforce of approximately 32,000 people around the world. Chiquita and Fyffes anticipate that the transaction will potentially provide annualized recurring before tax overhead and operational synergies of at least $40 million by the end of 2016.

Suntory Acquisition of Beam Nears Completion The proposed $16 billion acquisition of US-based spirits group Beam by Suntory Holdings of Japan is expected to be completed by the end of April 2014, following approval of the deal by Beam shareholders. “Shareholder approval of the acquisition by Suntory is a reflection of the substantial value created for our investors over the past several years, culminating in this transaction,” says Matt Shattock, president and chief executive of Beam. “We look forward to joining with the spirits business of Suntory to create the world’s number 3 premium spirits com88

& &


pany, and to capitalize on the significant opportunities for our combined portfolio, routes to market, and innovation capabilities.” The transaction remains subject to regulatory clearance in the European Union and customary closing conditions, and the companies expect the acquisition will most likely be completed during the week of April 28th.

critical mass in key North American markets, providing us with a strong market position in Canada and positioning us for further growth in our core US market.”

Bob Kunze-Concewitz, chief executive of Gruppo Campari.

C&C Group Completes Acquisition of Wallaces Express Matt Shattock, president and chief executive of Beam.

Campari Enters Canadian Whisky Category With €120.5 Million Acquisition Italian drinks group Gruppo Campari has agreed to acquire Forty Creek Distillery, a leading independently owned spirits company in Canada. This transaction marks the Campari’s first move into the growing and attractive Canadian whisky category with high-end premium products. The total purchase price for 100% of FCD is C$185.6 million (Eur120.5 million) on a cash free/debt free basis. This corresponds to an EBITDA multiple of 14.5x. With its flagship brand Forty Creek Whisky, FCD is the fastest growing player in the Canadian whisky category in Canada. Moreover, it is well positioned in the key US market to capitalize on the high potential offered by the Canadian whisky category Bob Kunze-Concewitz, chief executive of Gruppo Campari, says: “Via the entry to the large and growing Canadian whisky segment this acquisition further increases our exposure to the highly attractive brown spirits category whilst continuing to enhance our premium portfolio. Moreover, the addition of FCD will enable us to further build our

Beer and cider producer C&C Group has acquired the remaining 50% stake in Wallaces Express, Scotland’s largest wines and spirits wholesaler. The move to acquire the business outright follows C&C Group’s purchase of a 50% stake in the business in March 2013. The acquisition is consistent with C&C’s strategy to develop a multi-beverage operating model in Scotland. John Gilligan, managing director of Tennent Caledonian Breweries, which is part of C&C Group, says: “Since taking a 50% stake in Wallaces Express a year ago, we have worked to provide our customers with a one stop shop for all their alcoholic and soft drinks needs as part of our strategy of developing a multibeverage platform in the Scottish drinks market. Our decision to acquire the business outright represents further investment by C&C in Scotland and is the latest stage of our plans to put customers at the heart of our support for the independent ontrade.”

Danish Crown Takes Sole Control of Polish Meat Processor Following a ten-year partnership with Nordic meat company


HKScan Group, Danish Crown is now taking full control of Sokolow, the leading Polish producer of processed meat products. Danish Crown is paying Eur180 million (DKr1.3 billion) for 50% of the shares. Sokolow employs about 6,500 employees at seven factories. The company posted revenue of DKr5.5 billion in 2013. The acquisition of the remaining shares in Sokolow is in line with Danish Crown’s strategy of investing in processing activities. Danish Crown is Europe’s leading business within processed meat products via its DC Foods division. This position will be further strengthened through the full ownership of Sokolow. The takeover is subject to approval by the competition authorities.

Unilever Makes Biggest Acquisition in China in Over a Decade Unilever has acquired a majority stake in the Qinyuan Group, a leading Chinese water purification business for an undisclosed amount. Qinyuan generated sales approaching Eur140 million (RMB1.2 billion) for the 12month period ending 31 December 2013. Unilever chief executive Paul Polman says: “We are delighted to be making this strategic investment – a majority stake in Qinyuan – our biggest acquisition in China for more than ten years. Unilever has been building a global water purification business with Pureit, a very effective, affordable water purification device, already present in several countries in South Asia, South East Asia, Latin America and Africa. This deal will more than double the size of our water purification business and will bring together complementary technology from Pureit and Qinyuan and leverage Qinyuan’s local marketing insight, manufacturing and distribution strength – all under the Unilever umbrella.”

Profile for Colin Murphy

F&d business europe april 2014  

92 page magazine

F&d business europe april 2014  

92 page magazine