F&d business europe aug:sept 2016

August / September 2016

Arla Foods Ingredients invests in world class production facilities

Food & Drink Business Website:

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C o n t e n t s

- 59, 62 & 64 B ISCUITS & C ONFECTIONERY

- 3 M ERGERS & A CQUISITIONS

Tunnock’s plans major expansion.

Coverage of British and international deals.

Mondelez International to acquire Cadbury biscuits license from Burton's Biscuit Company.

- 9 C OVER S TORY

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Arla Foods Ingredients invests in world class facilities to produce innovative dairy ingredients.

Emmanuel Faber, CEO, Danone.

New €15 million biscuits venture offers an alternative source for private label and branded products.

P AGE 29

Francis Kint, CEO, Vion Food.

R EGULARS Control & Automation . . . . . . . . . . . . . . . . . . 15 Processing & Manufacturing 19, 21, 34, 38, 57 & 58

PAGE 51

Les Montgomery, CEO, Highland Spring Group.

Energy & Environment . . . . . . . . . . . 22 & 23

- 27 M EAT & P OULTRY

Storage & Logistics. . . . . . . . . . 24, 25 & 35

Lean times for meat and poultry processors.

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Sean Connolly, CEO, ConAgra Foods.

- 37 C EREALS & S NACKS

Quality & Safety. . . . . . . . . . . . . . . . . . . . 39 Bottling & Packaging. . . . . . . . . . . 40-47, 53 Materials Handling . . . . . . . . . . . . . . . . . . 53 Information Technology . . . . . . . . . . . . . . 63

Innovation to spur growth at Kellogg Company.

PAGE 59 Materials & Ingredients . . . . . . . . . . 67 & 68

€2 billion European flavouring market is full of opportunities . . 67

- 49 P ROTEIN

Boyd Tunnock, MD, Tunnock’s.

Managing Director: Colin Murphy Editor: Mike Rohan

9th Protein Summit 2016, 19-21 September, Lille Grand Palais, France.

Group Operations Manager: Sylvia McCarthy Advertising: Ian Stewart & Rachel Howard

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Henrik H. Andersen, CEO, Arla Foods Ingredients.

- 50 W ATER D RINKS

The future of UK manufacturing debate heats up at the PPMA Total Show 2016.

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Consumer demand for healthy hydration propels water sales.

- 54 P ROCESSING & PACKAGING

Production Manager: Sylvia McCarthy

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FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2016

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M E E R R G G E E R R S S M Danone to Acquire USbased Organic Foods Giant Danone is acquiring The WhiteWave Foods Company, a global leader in organic foods in an all-cash transaction, representing a total enterprise value of approximately $12.5 billion, including debt. The transaction has been unanimously approved by the boards of both companies. The transaction is expected to close by the end of the year, subject to the approval of WhiteWave’s shareholders, regulatory approvals, and customary conditions.

WhiteWave is a global company which generated $4 billion in sales in 2015 and has a portfolio of large and leading branded platforms in North America and Europe in high-growth, ontrend food and beverage categories which focus on premium organic dairy, non-GMO, plant-based alternatives to milk and yogurt, fresh foods, and coffee creamers. WhiteWave has a successful track record of transforming categories and creating large scale brands.

The deal represents a key opportunity to enhance Danone’s growth profile and will expand WhiteWave’s growth opportunities.

WhiteWave has been the fastest growing food and beverage company in the United States and one of the fastest growing in Europe for the past four years. Upon closing the transaction, Danone will have one of the most extensive portfolios of brands and products in fresh dairy, organic foods and beverages and plant-based alternatives to milk & yogurt.

The acquisition will also help Danone in building a stronger North America platform. The combination of Danone and WhiteWave will create a leading US refrigerated dairy player, as well as one of the top 15 largest US food and beverage manufacturers.

Emmanuel Faber, chief executive of Danone, comments: “This unique combination positions us better to address tomorrow’s consumer trends and represents a great opportunity to

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step change the ambition of our plan for an Alimentation revolution and to accelerate our path towards strong sustainable and profitable growth by 2020.

It will allow us to enhance Danone’s growth profile and reinforce our resilience through a broader platform in North America.”

Emmanuel Faber, chief executive of Danone.

Tyrrells Sold For £300 Million Investcorp, a global provider and manager of alternative investment products, has agreed to sell Crisps Topco (Tyrrells) to Amplify Snack Brands, the US-based snack food company, for an enterprise value of £300 million. Founded at Tyrrells Court Farm, Herefordshire, England, in 2002, Tyrrells is a premium manufacturer of hand-cooked potato and vegetable crisps, popcorn and other savoury snacks. Tyrrells has successfully built on the brand strength of its core product offering to diversify into other premium snack categories, including popcorn, tortilla chips and vegetable crisps.

Headquartered in Austin, Texas, Amplify Snack Brands is a high growth food company focused on developing and marketing products that appeal to consumers' growing preference for Better-For-You (BFY) snacks.

Investcorp acquired Tyrrells

in August 2013 for £100 million and has overseen an extensive transformation of the company in which sales and EBITDA more than doubled.

International markets now account for close to 40% of sales compared to 20% three years ago.

Under Investcorp's ownership, Tyrrells has grown organically and through acquisitions in Australia and Germany, further expanding its healthy snacking portfolio into organic and gluten-free products, creating a truly diversified premium snacks player. Completion of the sale is subject to competition clearance.

Bel Group Acquisition to Create a Major Global Player in the Healthy Snacks The Bel Group, the French cheese processor, is in exclusive negotiations with LBO France to acquire the MOM Group.

Under the proposed deal, the Bel Group would take a majority interest in MOM, with MOM’s current management remaining as a shareholder.

The MOM Group, majority owned by LBO France since 2010, has achieved strong business growth in France and the United States. Over the past five years, MOM has doubled in size, achieving sales of Eur362 million in 2015. The company employs 1,300 people and owns four production sites, including two in France and two in the United States. It aims to use its industrial knowhow and capacity for innovation to gain international leadership positions through its brands.

With brands The Laughing Cow®, Kiri®, Mini Babybel®, Leerdammer®, and Boursin®, Bel is the world leader in singleserving cheese portions, selling its brands in nearly 130 countries.

The deal would enable Bel and MOM to fashion together a major global player in the healthy snacks segment, founded on strong and innovative brands, and very highly complementary product ranges and territories.

FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2016

Coca-Cola European Partners Completes Acquisition of Icelandic Coca-Cola Bottler Vifilfell, the Icelandic CocaCola bottler and one of the largest fast-moving consumer goods businesses in the country, has officially joined Coca-Cola European Partners (CCEP).

CCEP was created following the merger of Coca-Cola Enterprises, Coca-Cola Iberian Partners and Coca-Cola Erfrischungsgetränke at the end of May 2016.

Founded in 1942, Vifilfell is a leader in both the sparkling soft drinks and beer categories. The business services over 2,300 customer outlets in Iceland with a portfolio of popular brands, including Coca-Cola, Fanta, Sprite, Trópí, Toppur, Powerade, Hámark – the leading protein drinks brand - and the beer brands Víking and Thule. Vifilfell employs 210 people across its Reykjavik headquarters and two other production sites.

Iceland boasts the highest per capita consumption in CCEP with 365 beverages sold per inhabitant, per year. With the addition of Vifilfell, CCEP’s business is now made up of 13 countries and nine official languages.

John Brock, chief executive of Coca-Cola European Partners.

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M E E R R G G E E R R S S M Refresco Takes First Step into North America Refresco Group, the leading European bottler of soft drinks and fruit juices for A-brands and retailers, has agreed to acquire US-based bottler Whitlock Packaging for $129 million (Eur117 million) on a debt and cash free basis. This represents an EV/adjusted EBITDA multiple of 7.3x and is in line with the average multiple paid by Refresco on previous transactions. The acquisition is expected to be earnings accretive in the first full year of consolidation.

Refresco has established its leading position in Europe over the past 16 years through the successful execution of its ‘buy & build strategy’. The acquisition of Whitlock Packaging represents a new chapter in Refresco's growth strategy as it enters the North American market for the first time. The acquisition of a large scale US bottler is Refresco's first step towards expansion beyond Europe and creates a strong second platform for further growth in North America.

Hans Roelofs, chief executive of Refresco.

In 2015, Whitlock Packaging's volume amounted to approximately 900 million litres, split between co-packing (98%) and private label (2%).

The company's annual revenue, mainly related to filling fees, amounted to approximately $127.3 million. Whitlock Packaging can produce all major packaging formats and was one of the first US bottlers to produce aseptic beverage cartons.

Hans Roelofs, chief executive of Refresco, comments: “For some time we have been carefully exploring opportunities to

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enter the North American market and create a second platform for growth. Whitlock Packaging provides a perfect strategic fit, as it is a market-leading player focused primarily on co-packing – an area of our business that we actively want to grow.”

products. Products are primarily supplied into the UK food retail, food service and food manufacturing sectors. Results for the year to 31 March 2016 showed revenues of £1.07 billion and profit before tax of £58.7 million.

Greencore Secures £15 Million Bolt-on Acquisition in UK Food to Go British and Irish convenience foods producer Greencore Group has acquired The Sandwich Factory for a cash consideration of £15 million from Cranswick. The Sandwich Factory operates from a single facility in Atherstone, Warwickshire, where it produces a range of food to go products for distribution in the convenience store and food service channels.

Net revenue from manufactured products in the financial year ended 31 March 2016 was £42 million.

The acquired business will extend Greencore’s presence in the high growth food to go category outside of its current core business with large grocery customers. The facility also offers an opportunity to modestly increase overall capacity across Greencore’s food to go network and will bring new capabilities in short-run, specialist product formats.

Patrick Coveney, chief executive of Greencore, says: “This acquisition makes strong strategic sense for Greencore, given our ongoing focus on the food to go market. The Sandwich Factory will extend our reach into customer channels in which we are currently under represented, notably convenience stores and the travel sector, and will also bring new product types into the Greencore portfolio.”

The sale is part of Cranswick’s strategy to focus on its core protein businesses. Cranswick’s activities are centred within the UK and include the processing and supply of fresh pork, sausage, bacon, cooked meats, premium fresh and cooked poultry, charcuterie and pastry

Patrick Coveney, chief executive of Greencore.

European Commission Clears Froneri Ice Cream Joint Venture The European Commission has approved under the EU Merger Regulation the creation of Froneri, a joint venture by PAI Partners of France and Nestlé of Switzerland. Froneri will manufacture and market ice cream products in and outside of Europe, and frozen food products in Europe.

PAI Partners will contribute to Froneri its ice cream business, operating as R&R. Nestlé will contribute its ice cream business in Europe, the Middle East, North Africa, Philippines, Brazil and Argentina and part of its frozen food business in Europe.

Raisio Sells UK Snack Bar Business Finland-based Raisio Group has sold Halo Foods to Dutch hands-on investor Nimbus, which has significant experience in acquisitions in the food sector in Europe. Halo Foods’ business and some 300 employees in the UK have been transferred to the new owner.

FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2016

Key assets of Halo Foods include its factories in Newport and Swindon as well as the Dormen brand. Raisio will record a loss of approximately Eur19 million for the divestment of Halo Foods and approximately Eur1 million as restructuring costs related to its UK Snack & Cereal business in the second quarter.

Halo Foods became part of Raisio through the Glisten acquisition in 2010. Halo Foods generated sales of Eur18 million in the January-June 2016 period.

Raisio has decided to withdraw from manufacturing of snack bars marketed to consumers under its partners' brands and focus on the development and marketing of proprietary branded products.

Raisio Group is an international expert in plant-based nutrition.

It is known for its innovations, such as cholesterol-lowering Benecol and Benemilk, with its ability to increase milk yield and improve contents of milk.

ConAgra Foods Moves Closer to Spinning Off Lamb Weston ConAgra Foods, which is one of North America's leading packaged food groups, has moved a step closer to its planned separation into two independent public companies - Lamb Weston Holdings and Conagra Brands by making an initial filing of a Form 10 Registration Statement with the US Securities and Exchange Commission (SEC).

“We believe that this separation will create two focused companies that are well-positioned to unlock unique growth opportunities to win in the marketplace and create value for stockholders,” says Sean Connolly, president and chief

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N N E E W W S S executive of ConAgra Foods.

“We remain on track to complete the separation by the fall of calendar 2016.”

Lamb Weston’s portfolio will consist of frozen potato, sweet potato, appetizer and other vegetable products, as well as a continued presence in retail frozen products under licensed brands and private brands. Conagra Brands will be comprised primarily of the operations currently reported as ConAgra Foods’ Consumer Foods segment, as well as the Foodservice business (minus the recently divested Spicetec Flavors & Seasonings and JM Swank businesses).

Sean Connolly, president and chief executive of ConAgra Foods.

Bernard Matthews Disposes of German Business UK turkey giant Bernard Matthews has sold its German subsidiary, Bernard Matthews Oldenburg (BMO), to Union Holdings & Co, which incorporates the Sprehe Gruppe business, a producer of chicken, turkey and pork. BMO supplies the German market with turkey and chicken products under the BM Oldenburg brand.

According to Bernard Matthews, its German business has flourished in the last few years, but has also grown more independent of the UK operation. The proceeds from the sale will reduce Bernard Matthews’ group debt by Eur14 million.

Bernard Matthews was recently put up for sale by owner Rutland Partners, the specialist turnaround and restructuring investor, which has appointed Price Waterhouse Coopers (PWC) to look at possible buyers. Rutland Rutland Partners first invested in

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Bernard Matthews alongside the existing family interests in 2013.

B B R R II E E F F has operations in the US, Asia and Continental Europe supplying fresh prepared food products to both retail and food service customers.

FrieslandCampina Enters Fast-growing Pakistani Dairy Market

Bakkavor Group Sells Belgian Fresh Prepared Food Business Bakkavor, the UK’s leading fresh prepared foods manufacturer, has agreed the sale of its Belgian fresh prepared food business, Vaco, to Culinor Food Group. Culinor is a high-quality producer of fresh prepared ready meals for retail and food service operators across Belgium. The sale is expected to complete by early Autumn.

Agust Gudmundsson, chief executive of Bakkavor Group, comments: “This sale marks further progress for the Group as we focus on our core strategic growth markets of the UK, US and Asia.”

2016 marks the 30th anniversary of Bakkavor being founded by brothers Agust and Lydur Gudmundsson in Iceland to manufacture and export fish products. Today, Bakkavor is a leading provider of fresh prepared foods, employing over 18,000 people globally and producing over 5,000 products in 18 different categories.

In the UK, Bakkavor is the number one producer by value in 11 of the 16 categories of chilled food it supplies to the market. Products include ready meals, pizzas, salads, desserts, soups and sauces. Bakkavor also

Agust Gudmundsson, chief executive of Bakkavor Group.

Royal FrieslandCampina has agreed to acquire 51% of Engro Foods for Eur420 million in partnership with the World Bank Group’s International Finance Corporation (IFC) and the Dutch development bank FMO. The acquisition of Engro Foods, which is the second largest dairy company in Pakistan, enables FrieslandCampina to obtain a key position in Central Asia.

Pakistan is the third largest milk producing country in the world with an annual production of 38 billion litres of milk.

FrieslandCampina expects to benefit from the conversion of the market from loose to packaged dairy consumption that will drive the volume growth of packaged dairy products. At present less than 10% of tradable milk consumed in Pakistan is processed and offered in packages. The conversion is expected to accelerate in the near future as a result of the growing middle income class, a desire for higher quality milk, as well as the increasing urbanization.

business comprises 94 high quality managed and tenanted pubs, two award-winning breweries and three wholesale businesses. The breweries are located in Jersey and Bristol.

Liberation has grown strongly since 2008. During that time, the pub estate has increased from 65 to 94 outlets, and management has launched the Liberation Ale brand in the Channel Islands, where it is the market-leading brewer, wholesaler and pub operator.

Caledonia is backing the existing management team, providing an additional £40 million of funding for investment in its existing estate and acquisitions in both its heartland in the Channel Islands and the West Country.

Wessanen Acquires Mrs Crimble’s Brand Wessanen, the Netherlandsbased group which specialises in healthy and sustainable food, has completed the acquisition of Mrs Crimble’s, a pioneer of the UK gluten-free market for more than 30 years, for an undisclosed price. Mrs Crimble’s has established itself as a leading brand in the market, famous for its macaroons and broad range of other gluten-free products.

Mrs Crimble’s net revenue amounted to £12.7 million in 2015.

Caledonia Investments to Acquire Liberation Group From LGV Caledonia Investments is acquiring The Liberation Group from LGV Capital for £118 million. Completion is expected over the course of the summer.

Liberation, founded in 2008 through a management buy-in led by Mark Crowther and equity backed by LGV, owns and operates a fully integrated pub and drinks business located in the Channel Islands and the West Country in the UK. Its

FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2016

Christophe Barnouin, executive of Wessanen.

chief

N E W S “The acquisition of Mrs Crimble’s is a further step in the execution of our strategy,” says Christophe Barnouin, chief executive of Wessanen.

“This acquisition will further strengthen our operations in the UK market and gives us an entry into a strategic growth segment.”

St Austell Brewery Acquires Bath Ales English regional brewer, Cornwall-based St Austell Brewery Company has acquired fellow West Country brewer and pub company, Bath Ales. The deal, which has been completed for an undisclosed amount, includes the Bath Ales brewery, situated between Bath and Bristol, its portfolio of beer brands and its 11-strong pub estate which includes three Graze outlets and three Beerd bars.

James Staughton, chief executive of St Austell Brewery, says: “Bath Ales brews great beer and has a thriving pub estate both of which complement those of St Austell Brewery and with the acquisition we are committing to a long-term significant investment in the Bath Ales brands, pub estate, people and brewing facilities. We already operate a successful free trade business across the region, and a wholesale service to free trade customers, which will also bring additional routes to market for Bath Ales’ beers.”

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Mittelland Molkerei by acquiring a 40% stake from AZM Verwaltungs, the investment firm of the Mittelland Milk Producers’ Cooperative (MPM), for an undisclosed price. Based at Suhr in Switzerland, Mittelland Molkerei was founded in 2005, at which time it was 60 % owned by Emmi and 40 % owned by the AZM Verwaltungs (formerly the Aargauer Milchverband). At the Suhr site, Emmi processes milk into butter, cream and consumer milk (pasteurised and UHT).

According to Urs Riedener, chief executive of Emmi: “The purchase of the 40 % share package and the associated complete takeover of Mittelland Molkerei is evidence of Emmi’s clear commitment to Switzerland.”

In Suhr, Emmi generates sales of roughly SFr500 million (Eur460 million) and employs around 350 people.

Carlsberg Group to Divest Business in Malawi Carlsberg Group has agreed to sell its 59% share of Carlsberg Malawi (previously The Bottling and Brewing Group) to Castel Group. The transaction is in line with Carlsberg Group’s new strategy to fully exploit and leverage its strengths while positioning itself for future growth. As part of the agreement, Carlsberg Group has signed a license agreement with Carlsberg Malawi to continue to produce and sell Carlsberg in Malawi.

James Staughton, chief executive of St Austell Brewery.

Emmi Acquires 100% of Mittelland Molkerei Swiss dairy group Emmi has taken full control of

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COVER STORY

Arla Foods Ingredients Invests in World Class Facilities to Produce Innovative Dairy Ingredients Denmark-based Arla Foods Ingredients has reinforced its position as a global leader in natural whey ingredients with the opening of a new €40 million facility at Nr. Vium for the production of dairy protein hydrolysates.

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rla Foods Ingredients’ natural whey ingredients are used in a range of product categories including bakery, beverages, dairy, ice cream, culinary and meat, clinical nutrition, infant nutrition, sports nutrition and health foods. The Danish company’s products are sold in more than 90 countries worldwide. Of course, Arla Foods Ingredients is a subsidiary of European dairy co-operative Arla Foods, which is owned by farmers in Denmark, Sweden, the UK, Germany, Belgium and Luxem bourg.

The new plant at Nr. Vium can produce approximately Henrik H. Andersen, chief executive of Arla Foods 4,000 tonnes of high Ingredients. quality whey and casein hydrolysates a year, to create ingredient solutions for applications in the infant, clinical and sports nutrition categories. The factory incorporates state-of-the-art manufacturing technology as well as pilot plants, analytical laboratories and R&D facilities. It complies with the strictest quality and safety standards and includes a dedicated packing line for filtered products.

Milk protein hydrolysates are subject to a natural enzymatic process, during which the intact protein is cut into small peptide fragments. This permits them to offer reduced allergenic potential,

The new plant at Nr. Vium can produce approximately 4,000 tonnes of high quality whey and casein hydrolysates a year.

To enable dairies to maximise their yields, Arla Foods Ingredients has developed a range of Nutrilac® whey protein solutions which, when added to acid whey, make it possible to transform it into a wide selection of high quality and nutritious dairy products.

easier digestion and faster absorption, compared with intact proteins. In the areas of clinical and infant nutrition, dairy protein hydrolysates provide excellent functional health properties because they deliver the benefits of the protein more quickly and effectively.

“Our new factory has been built from the ground up, with the single aim of producing the best dairy protein hydrolysate ingredients available anywhere in the world,” points out Anders Steen Jorgensen, business unit director Pediatric at Arla Foods Ingredients. “Our solutions offer scientifically documented health benefits, excellent solubility, superb microbiology and uniform quality. Now we can also offer them in much greater volumes with complete security of supply.” €120 Million Lactose Facility The development follows the opening in November 2014 of a new Eur120 million lactose facility, which has increased Arla Foods Ingredients’ capacity by 80%. The site produces value-added lactose ingredients based on whey from Arla Foods’ nearby cheese production. These ingredients are used for child nutrition products and other categories and sold to the food industry globally. The investment in a new lactose facility was intended to support Arla Foods’ strategic objective of doubling the revenue of Arla Foods Ingredients to more than DKr5 billion (Eur670 million) by 2017.

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Since the recent opening of the new hydrolysates plant, the Danmark Protein site located in Jutland in the western part of Denmark now covers about 56,000 sq m, including areas for the delivery of raw materials, filtration, protein drying, permeate dryers and production of dry blend lactose.

“Danmark Protein produces 73 different protein products and 25 different permeate/lactose products. The new hydrolysates plant will produce six different hydrolysates in 2016 and more products are in the pipeline,” says Jesper Villadsen, senior project manager at Arla Foods Ingredients.

Jesper Villadsen adds: “The new Hydrolysate Department at Danmark Protein offers state-of-the-art production facilities, designed and adapted to the needs of our customers and the market. The factory delivers huge potential for product specializations and offers the highest quality standards possible. The new facility gives us more flexibility, which will enable us to produce much higher volumes in a shorter time, and produce uniform and valueadded products of a very high quality.”

Strategy To capitalise on the rapidly growing demand for increasingly specialised whey ingredients of the highest quality, Arla Foods Ingredients is pursuing a three pronged strategy focused on achieving value added growth, world-class innovation and offering quality products and service. The company is aiming to generate valueadded growth through major plant investments, new product development projects and expansion of the company’s whey supplies.

Indeed, the pillars of Arla Foods Ingredients’ business are innovative ingredients, world-class facilities and its expertise. Drawing on a portfolio of functional and nutritional whey proteins, milk minerals, lactose and permeate, the company uses its expertise to deliver solutions that bring new food products quickly and efficiently to market. Its application centres run hundreds of customer product trials every week. All ingredients are produced using state-of-the-art processing technology.

The opening in November 2014 of a new Eur120 million lactose facility has increased Arla Foods Ingredients’ capacity by 80%. The site produces valueadded lactose ingredients based on whey from Arla Foods’ nearby cheese production.

‘Quality Starts Here’ Commitment Arla Foods Ingredients is seeking to establish world-class innovation capabilities by accelerating its new product development and strengthening its R&D pipeline and network. These aspects are underpinned by Arla Foods Ingredients’ ‘Quality starts here’ commitment to customers.

“Arla Foods Ingredients has a clear ambition to be the driving player within the global whey industry. As we grow, our ‘Quality starts here’ commitment sets the agenda for our investments in whey innovation,” explains Henrik H. Andersen, chief executive of Arla Foods Ingredients. “That commitment is evident more than ever in our application labs, where our team of specialists continues to reveal new ways to use whey proteins in food products. The more we work, the more it appears that the functional and nutritional opportunities are endless.”

For example, Arla Foods has recently launched new solutions for low-fat cottage cheese, gluten-free bakery products and a low-fat dip that makes use of the acid whey left over from Greek-style yoghurt production.

According to Arla Foods Ingredients, products made with whey protein and minerals from milk have the power to turn back the clock on a person’s age, in biological terms.

Maximum Yield Acid whey is a by-product of a number of popular dairy goods, such as Greek yoghurt and some cheeses including cottage and cream cheeses. Traditionally dairy companies have treated acid whey as waste. But when further processed – in combination with whey proteins – it offers enormous potential as the base for a range of dairy products.

Arla Foods Ingredients is promoting the possibilities presented by acid whey as part of its ‘Maximum Yield’ campaign, which seeks to change perceptions of acid whey and explain how dairy companies can use it to maximise their output, increase profits and significantly cut waste.

Yields for some dairy products are typically only 25-50% of the milk used. In the case of Greek yoghurt, for example, only 33% of the milk ends up in the finished product - the remaining two thirds is acid whey. In addition to impacting on its efficiency and profitability, this can damage a dairy company’s sustainability credentials.

“At Arla Foods Ingredients, our primary reason for being is to make the best possible use of our whey raw material. By that we mean optimising the value we offer our customers while striving to use each and every component in whey,” comments Henrik H. Andersen. “Our goal is to raise awareness of how our ingredients and process knowledge can create added value in food production and ensure the efficient use of resources. Maximum Yield highlights one of the great forces behind all our work – the force that drives us towards ever better quality. In this case, it is our high quality innovation that gives customers a competitive advantage.”

To enable dairies to maximise their yields, Arla Foods Ingredients has developed a range of Nutrilac® whey protein solu-

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tions which, when added to acid whey, make it possible to transform it into a wide selection of high quality and nutritious dairy products. Possible applications include cream cheese, processed cheese, dips, beverages, stirred yoghurts and desserts. As well as supplying the Nutrilac® whey proteins, Arla Foods Ingredients provides full technical support to help dairy companies use them with their acid whey.

Nutritional Benefits “At Arla Foods Ingredients, we don’t just develop ingredient solutions to meet the latest health trends. We document their nutritional benefits, so our customers can launch innovative products that target Arla Foods Ingredients identifies major untapped specific needs,” says potential for nutrition-rich dairy ingredients in the Henrik H. Andersen. formulation of products for the toddler nutrition “The research part of category. our R&D work continues to uncover new, unexplored potential for developing ingredients with a proven positive effect on health. To this end, we frequently co-operate with leading universities and other research institutions.”

According to Arla Foods Ingredients, products made with whey protein and minerals from milk have the power to turn back the clock on a person’s age, in biological terms. Although consumers aged 50+ cannot change their chronological age, they can slow down their ‘body age’ through good nutrition that looks after their muscles and bones. This is the thinking behind the introduction of a new concept called ‘Change Your Body Age’.

Indeed, to highlight the opportunities for food and beverage manufacturers to create products for consumers aged 50+, Arla Foods Ingredients has developed an instant coffee enriched with 100% whey protein and natural minerals from milk, including calcium, magnesium and potassium.

Change Your Body Age is the first of several concepts to be launched as part of Arla Foods Ingredients’ new campaign, ‘Goodness of Dairy’.

Goodness of Dairy Campaign Arla Foods Ingredients’ Goodness of Dairy campaign highlights how dairy ingredients are key to tapping into growing consumer demand for food that is natural, healthy and offers great taste and

Arla Foods Ingredients has launched a range of new foodservice solutions as part of its Goodness of Dairy campaign.

texture. Similarly, Arla Foods Ingredients also identifies major untapped potential for nutrition-rich dairy ingredients in the formulation of products for the toddler nutrition category.

Dairy ingredients such as whey are continuing to grow in popularity within the mainstream food market, and are already well established as key ingredients in the tightly regulated infant formula sector. However, they remain under-used in products aimed at children in the 1-3 years age bracket – a crucial period in childhood development.

The global toddler food and beverage market was worth US$34 billion in 2015, according to Euromonitor, making it significantly larger than the $24.7 billion infant formula market. Sales of toddler products are forecast to attain a compound annual growth rate of 11.4% between now and 2018 to reach $47 billion, indicating the massive future sales potential of the market.

As part of its new Goodness of Dairy campaign, Arla Foods Ingredients can offer a range of dairy ingredient solutions containing high quality proteins and minerals from milk that will enable manufacturers to create toddler-specific products such as snack bars, squeezable pouches, yoghurts, fruit drinks, milky drinks and toddler formulas, which are healthy, natural and completely safe.

Arla Foods Ingredients has also launched new range of cleanlabel, dairy-based solutions, including cake topping, cooking cream, bake-stable cream cheese and cheesecake cream cheese, for the foodservice sector as part of its Goodness of Dairy campaign.

The new Hydrolysate Department at Danmark Protein offers state-of-the-art production facilities, designed and adapted to the needs of customers and the market.

Performance and Market Outlook In 2015, Arla Foods Ingredients achieved revenue of Eur368 million with volume driven growth of 25.4%, as volume sales of whey protein concentrate increased by 27% and lactose sales jumped by 124% as a result of new contracts and the new lactose manufacturing facilities coming fully on stream. However, as a large proportion of the company’s activities are carried out in joint ventures, revenue including this business amounted to Eur486 million last year.

Arla Foods Ingredients operates joint ventures with Sancor in Argentina, Biolac in Germany and ArNoCo in Germany. It has also established partnerships with Euroserum in France, TINE Mejeri in Norway, Meadow Foods in the UK and HOCO in Denmark.

Although the whey protein concentrate and lactose markets globally have been over-supplied, which is exerting downward pressure on prices, the long-term outlook is more promising. Demand is still growing and a slowdown in supply is expected to restore the balance in the long-term. According to Arla Foods Ingredients, customers will continue to ask for specialised ingredients and quality demands will become stricter. However, volume growth within the Chinese infant formula market is expected to slow. J

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I DAIRY

Au2mate Delivers the Fully Integrated Factory Automation System For the Arla Foods Ingredients Hydrolysates Factory

By Klaus Dam, Managing Director of Au2mate A/S This article gives an overview of the design and implementation process for the highly advanced factory automation system at the Arla Foods Ingredients Hydrolysates factory opened in June 2016. he project has been implemented in T close cooperation with AFI as the end user and Process Engineering as the main engineering contractor and with Au2mate as the supplier of the factory control system.

The Hydrolysates plant is complex both in terms of processes and applied automation technology and at the same time the performance requirements are set very high; this includes user friendliness, process optimization, waste, energy consumption, detergents and plant uptime.

The plant automation solution is based upon the latest yet proven technologies and equipment from leading manufacturers, ensuring the investment and future development of the plant.

The engineering standards applied as the basis for the solution are leading international standards ensuring the quality today as well as flexibility with regard to future support and development. The project is fully documented accordingly.

The software solution is designed according to S88/S95 which forms a robust platform supporting superior management of the dairy inclusive of fully integrated manufacturing order execution.

Extended use of well proven software modules in accordance with Arla Foods standards, guidelines and best practices ensures straightforward future development, extensions and maintenance.

Below in this article there is a more detailed description of the design and functionality of the control system as well as the implementation and project management of the project. Please refer to below photo showing a part of the process area.

AFI Hydrolysates factory situated in Nr. Vium in the Western Part of Jutland, Denmark.

The solution designed and implemented at the AFI Hydrolysates factory is embedding the joint Au2mate expertise and good automation practice gained from conducting major automation projects over more than 3 decades.

To future proof the plant it is most important to recognise that the plant automation system is designed in a flexible manner in order to facilitate that the process can be optimised concurrently during the life time of the plant aligned with changes in production requirements, process requirements and on-going changing and upgrading of production standards.

From an automation perspective the key to achieve this is to design the hardware as well as the software in a modular, standardised and well documented way. And further that the applied technology for the plant automation system is transferred to the operational organisation of the AFI Hydrolysates factory.

Part of the process area.

Design and Functionality of the AFI Hydrolysates Factory Control System The plant is equipped with a comprehensive automation system comprising I/O, PLC, SCADA, MES as well as communication networks.

Operation of the plant takes place from 10 pcs. Wonderware InTouch operator stations located in the central control room as well as in the field for operation and monitoring of the plant.

The control system is based upon 20 pcs Siemens S7-414 PLCs for the process.

Interface to the plant items takes place via

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ET200 modules located in I/O boxes in the plant process area. The interface boxes are connected to the PLCs via Profinet.

Interface to the MCC takes place via ET200 modules located in the MCC panel connected to the PLCs via Profibus.

Interface to selected process instruments also takes place via Profibus.

The server part of the control system is based on Wonderware System Platform and includes 4 servers running a Historian server and a redundant pair of Application Servers. For more information please refer to the below figure 1 showing the Automation Architecture.

e.g. date, time, material, recipe number and production order.

The application software for the HMI/SCADA system is based on Arla Foods standards. The software is developed as user friendly graphics based operator pictures ensuring an efficient operator dialogue during operation as well as monitoring of the plant. Please refer to photo below showing the central control room.

The central control room.

Figure 1: Arla Foods Ingredients Hydrolysates Automation Architecture.

The software part of the system is designed according to Arla Foods standards for PLC, HMI, Data collection, Recipe management, OEE and reporting. The control system structure follows the basic principles in the ISA S88 Batch Model.

The MES application is S95 structured and designed according the latest international standards.

The plant is fully automatic and requires a minimum of operator interaction and the automatic sequences will control the process under full control system monitoring and supervision.

The PLC software is developed for control and monitoring of the individual plant units forming the entire Hydrolysates process. The software comprises modules for automatic control, regulation and monitoring of the plant as well as handling of operator interaction. The software is structured according to S88 and extensively tested and simulated to obtain optimal commissioning of the plant.

The software for automatic control of the process energises actuators, valves and pumps in a predetermined sequence hereby initiating the individual processes. The key components and process parameters are carefully monitored during process operation, including e.g. monitoring of states, pressures and temperatures. Alarm handling and logging includes alarm state, date and time. For quality purposes, process events are logged in a database inclusive of

The MES solution is based upon the platforms from SAP, Microsoft, Wonderware and Arla Foods, providing a fully documented and open standard platform, safeguarding the investment and ensuring straightforward future development of the plant. The SQL database is designed according to S95 forming the backbone for the required MES applications and reports.

The plant is running recipe controlled production based upon the use of Arla Foods recipe system RMS as well as integration with SAP production orders.

The collection of production data and associated reporting is based on the Arla Foods modules for data collection and reporting via MII. The OEE functionality is based on the Arla Foods standard. The plant status is registered continuously e.g. machine error, line error, etc. and OEE reports are implemented via MII. Implementation and Project Management of the AFI Hydrolysates Project The project was generally executed according to Au2mate QA manual complying with leading international standards and methodologies inclusive of development of test sheets for quality assurance.

The planning and coordination of the project was performed by an appointed project manager in close cooperation with the AFI organisation and the process contractors. The project manager also coordinated and organised the work in the dedicated Au2mate project group.

The software programming of the AFI Hydrolysates plant control and MES system was carried out on the basis of

Functional Design Specifications (FDS) prepared by Au2mate and approved by the process contractors. The FDSs describe all sequences and Unit operations in detail.

The detailed software Factory Acceptance Test (FAT) was carried out on the Au2mate premises prior to on-site tests.

The FAT is introduced in order to ensure that as regards control, the plant operates according to the program description (FDS). The test was conducted in corporation with AFI, their representatives and the process contractors.

Training of the AFI staff was done in parallel with the project execution, in order to develop the skills required to operate, run and execute maintenance of the plant independently of external support.

A simulation concept of the plant was created as part of the project. The concept was applied as a helping tool for the FAT as well as a training tool for training of plant operators and maintenance staff.

Key Project Learning Points It has been a pleasure for Au2mate to act as a proactive automation supplier in the delivery of the control system for the AFI Hydrolysates factory. The project was successfully delivered on target for time, budget as well as quality.

From our perspective the goals were achieved due to clear project targets and project management by AFI, sufficient knowledgeable resources allocated to the project and excellent teamwork during the whole duration of the project between AFI and the vendors involved in the project. J

4 Quick Facts About Au2mate A/S • Founded in 2001.

• 82 employees at offices in Silkeborg, Dubai, UK and Poland holding more than 600 man years of experience in dairy automation.

• Project-orientated, has delivered more than 1600 projects; PLC, SCADA, MIS/MES and ERP integration to dairies throughout the world, including Nordic countries, Europe, Middle East and Africa, America and Asia.

• Supply solutions based on open standard platforms and internationally recognised methods for software development and project management.

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I DAIRY

Arla Foods Chose to Go ALL-IN More and more Arla plants are investing in ceramic bearings from CeramicSpeed to reduce damage on production equipment. he benefits of ceramic bearings in the production equipment are nothing short of novelty, and rumor has it that the Danish T manufacturer CeramicSpeed, is leading the way. Proof of that is their long-term collaboration with Arla Foods that gets convinced by the benefits of the CeramicSpeed bearings, one dairy plant at a time.

The latest case study comes from their collaboration with Arla Foods Brabrand, a large Danish Arla plant, which was very familiar with the consequences of expensive and unplanned production breakdowns and the significant costs these damages caused. They found the answer in the replacement of all bearings with CeramicSpeed bearings, and on critical equipment combining it with monitoring.

At Arla Robust Processes are Essential

At Arla Foods Brabrand, there is a great focus on constant and robust processes, since the company production is based on orders.

This is why it is extremely important to ensure that there are no weak links in the production line. Since the production must not stop until the finished product is obtained, production breakdowns have great financial consequences. Thanks to their longer lifetime, lower energy consumption and the guarantee of a better uptime in production, Arla Foods Brabrand chose bearings manufactured by CeramicSpeed to save significant costs within a few years.

at the same time. Through this, we can take action before the damage actually occurs, that is before the following financial consequences appear. In our experience, the maintenance cycle is improved with CeramicSpeed bearings, thanks to the bearing lifetime that is much longer than standard steel bearings. To us, this has resulted into a better use of resources in our maintenance department, and fewer costs for the maintenance of production equipment. Now, the need for maintenance is considerably smaller and we can act before the damage occurs.”

Bearings and Monitoring as Part of Production Efficiency

An Investment that Pays Off

“Trying to fix immediate problems is expensive and impossible to plan ahead,” says Michael Helm from Arla Foods Brabrand. This is why, it is essential for him, to find a model that secures better uptime in production. “In collaboration with ME Aarhus and CeramicSpeed, we have found a solution. We have started the process of replacing everything with CeramicSpeed bearings in all of our machinery, implementing monitoring on critical machines

At Arla Foods Brabrand, CeramicSpeed has seen the same pattern as with other industrial companies. The extra cost you pay for CeramicSpeed bearings has very little importance compared to the frequent breakdowns and related costs.

For this reason, the dairy has chosen to go ALL-IN, which means making all of their equipment more efficient by replacing their bearings with CeramicSpeed bearings and combine the replacement process with monitoring in critical areas.

“Over time, we expect less breakdowns caused by the bearings. This is, without a doubt, based on the highquality of CeramicSpeed balls and the other components in the bearings. This is not a standard bearing, but a bearing in which, the focus is on the machine in which it will operate. Even though the bearings are a bigger investment, the price is not decisive. The saved costs for other machine parts that also typically break in connection with breakdowns and the loss of production capacity, result in a smaller total expense. There is actually a great deal of money to be saved,” says Michael Helm. J

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I DAIRY

ESDT Producing Bespoke Spray Drying Plant For Cheese Company uropean Spraydry Technologies has E been awarded the contract to supply Knolton Farmhouse Cheese with a new

ity, allowing products to be exposed to further drying, cooling, chilling and agglomeration where required.

purpose-designed spray drying facility for the production of powdered dairy powders at its Wrexham Farm factory.

Fully Automated Process

The fully automated process can be controlled from a centralised HMI with local control access on the plant and may be started and stopped automatically or in manual mode. An easy operator friendly touchscreen HMI allows the process to be operated with minimum staffing.

Dried powder is conveyed to storage silos before packaging by a fully automated packing line. Provision has also been made within the design for transportation of the finished powder to bulk tankers.

tems to the dairy markets for many years.

Machines come in many sizes, the latest models to be introduced are a fully operating pilot scale dryer with falling film evaporator, a multi-stage tall form bustle pilot spray dryer, integral and vibratory fluid beds. J This two-stage drying plant will be housed within its own special building that will include wet feed preparation systems, dry powder storage, packaging equipment and warehousing. A robust ‘tall form bustle’ dryer with an evaporative capacity of 1100kg per hour will provide the flexibility to produce multiple dairy products.

Inclusion of a secondary ESDT multifunction vibratory fluid bed within the design scope gives added system functional-

Safety Features

Having many safety features, the dryer’s chamber is manufactured with a torispherical head for enhanced vessel strength and explosion relief provided by profiled relief panels. Fire hazard protection is provided by a deluge system fed by retractable nozzles. The system is cleaned and sterilised with a bespoke skid-mounted CIP system.

Knolton Cheese has been manufacturing award winning cheese for over 70 years.

The new processing area will greatly enhance production facilities in Wrexham.

European SprayDry Technologies has been supplying bespoke spray drying sys-

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ENERGY

ENVIRONMENT

I DAIRY

Veolia Provides Solution For Resource Recovery From Arla Dairy Wastewater rla dairy located in Aylesbury, near A London, is the world’s largest fresh milk facility. In 2013 Arla planned the new dairy as a showcase of sustainable development, applying advanced process technologies and renewable energy solutions, targeting a zero carbon facility.

To support this concept, a first Memthane® Anaerobic Membrane BioReactor was installed. This small footprint solution maximizes renewable energy production to cover more than 10% of the dairy biogas need while producing superb quality effluent with over 99% of TCOD removal

efficiency.

In 2015, the production increased from 0.7 to 1 billion litre of fresh milk a year. In order to handle the additional wastewater flow and TCOD load generated, Arla chose to install a second Memthane® digester.

Memthane® solution is now a standard and validated technology for resource recovery from dairy wastewater. In South Africa, two dairies combined it with reverse osmosis to produce reuse water in a two step process only.

For further information visit biothane@veolia.com. J

Groupe Lactalis and BasePower Enter CHP Agreement roupe Lactalis, the global leader in G cheese and the second largest dairy company worldwide, has made a commitment to significantly lowering energy costs and CO2 emissions in an energy partnership with CHP developer BasePower. Lactalis has signed a Power Purchase Agreement for the

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installation of a Combined Heat and Power (CHP) system at The Caledonian Cheese Company in Stranraer, Scotland.

BasePower, who will develop and build a fully containerised CHP system on The Caledonian Cheese Company manufacturing site, has financed the Power Purchase

Agreement. BasePower will oversee the scheme’s operation, which is projected to generate 77% of all the site’s electricity consumption, supply 24% of heat usage and save at least 2,000 tons of CO2 per year.

The project is targeted to be operational by December 2016. J

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ENVIRONMENT

I MEMBRANE TECHNOLOGY

Aquabio Provides High Quality, Robust Wastewater Treatment and Reuse Solutions ith water scarcity increasingly prevalent W worldwide, businesses are far more aware that not only is water a precious resource, but that it should not be wasted and can be harnessed again. Aquabio assists with this forward thinking strategy and provides innovative technologies to treat and reuse industrial wastewater, helping companies achieve their corporate responsibility targets in combination with reducing water consumption and associated costs.

Aquabio is now part of the highly respected Freudenberg Group and is a pioneer in industrial waste water treatment and management, most notably in Membrane Bioreactor (MBR) technology and water recycling and reuse. The company has developed the implementation of water recycling within a wide range of industries, notably in the food and beverage sector, which is a significant water user. With water scarcity worldwide an increasing concern, there is a need for industry to address the impact of its water consumption. One method to reduce water consumption and enable growth is to effectively utilise existing on-site resources and curb effluent output. Aquabio’s AMBR LE™ solution with reverse osmosis and UV filtration treats industrial effluents to high grade water quality for reuse, significantly reducing the water intake and discharge volumes along with the associated water footprint and costs.

Aquabio has successfully applied its proprietary approach to membrane bioreactors and water reuse in numerous applications

since 2001, including the first potable reuse applications in food and beverage in the UK and US. The technology is very versatile and has already been widely used for a number of blue chip companies including Muller Dairy, Chivas Brothers, Bakkavor, Unilever Marmite, Butcher's Pet Food, Bairds Malt, Shepherd Neame Brewery and Wyke Farms.

ensure full compliance with stringent requirements for local watercourses.

Furthermore it incorporates additional treatment to high grade potable water quality for reuse within the facility. The plant is due to be operational this year and will be the fourth plant installed by Aquabio for Bakkavor.

Recent Projects For example, a recent constructed plant for Muller at Severnside, Gloucester utilises Aquabio's unique AMBR LE™ Membrane Bioreactor (MBR) and is the largest application of its kind in the UK. The AMBR LE™ with reverse osmosis processes produce effluent of a high enough quality to be re-used in industrial application, or discharged to stringent watercourse requirements even after concentration in the reverse osmosis stage.

Some 60 percent of waste water at the new plant will be treated to potable standards for reuse. The plant will have the capacity to recycle 550 million litres of water per year. This is enough water to supply the daily demands of over 10,000 people.

The AMBR LE™ process involves the use of back flushable cross-flow type membranes for the separation of biomass from the treated water which guarantees high flux rates with optimised economic and reliable operation. Use of ultrafiltration membranes provides a complete barrier to suspended solids thus ensuring high quality final effluent, guaranteed for watercourse discharge and providing ideal water quality for downstream reverse osmosis treatment to deliver high grade clean water.

In 2015 Bakkavor, the leading international manufacturer of fresh prepared foods, also appointed Aquabio to assist with its sustainability goals and commissioned construction of a state-of-the-art wastewater treatment and water recycling facility at its Cucina Sano business in Boston, Lincolnshire. The plant is designed to treat wastewater from the production process to

Sustainability Goals Ben Cooper, Manufacturing Manager of Cucina Sano, says: “We are always working to ensure we can help sustain the environment in which we operate and one of our key areas of focus is water usage. We are looking forward to seeing the benefits of this new plant in helping us achieve our sustainability goals.”

AMBR LE™ technology helps companies achieve waste management targets set across the industry and realise significant water consumption/discharge savings at a relatively low capital cost. Aquabio implements a wholly integrated solution which helps business to dully appreciate the value of water within the factory production lifecycle. This unique approach has ensured that Aquabio is recognised as a company that has the capability and to provide high quality, robust wastewater treatment and reuse solutions coupled with total confidence that these critical goals can be achieved for the entire supply chain.

For further information contact Aquabio on Tel +44 (0)1905 641966 or visit www.aquabio.co.uk. J

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I CONFERENCE & EXHIBITION

Dare to Dairy at the IDF World Dairy Summit 2016 – October 16-21– Rotterdam he IDF World Dairy Summit is the annual top meeting of the T global dairy industry attracting about 1,500 participants from all over the world. This year (from the 16 to 21 October) the Summit is being held in The Netherlands and the theme is Dare to Dairy!

The World Dairy Summit is held annually by the International Dairy Federation somewhere in the world. This year’s organizing committee has chosen a new approach: it engages the ‘outside world’ to have an inside look. Representatives of civil society are taking the stage to debate with the international dairy community about animal welfare, animal health, climate and energy, and sustainable food.

There is one central question: how could dairy products contribute to feeding 9 billion people? The answer requires a thorough dialogue with civil society organizations and public authorities.

Speakers are representatives of the World Wildlife Fund, the US animal protection and the Dutch Environmental Assessment Agency among others. Dare to Dairy and already join the debate online and on twitter.

Participants can also get a taste of the Dutch dairy! They can have an insight at the innovative farming, discover the Dutch cattle breeds or learn about the highclass research and education done in The Netherlands. To avoid missing the summit sessions, the participants enjoy the visits after the conference program, on Thursday 20th and Friday 21stOctober.

This summit is of interest to anyone who has been active in the dairy sector, and who wants to quickly update in the challenges the sector faces. For decades, the Dutch dairy has been in the forefront of developments in the global dairy sector. The entrepreneurship, innovation and international orientation that underpin the competitive position of the dairy sector in The Netherlands is attracting many visitors! J

The Nagel-Group – A Link Between Manufacturers and Retailers ased at Versmold in Germany, the B Nagel-Group is a leading specialist for food logistics operating throughout Europe and employing more than 11,000 people at 100 locations in 16 countries. In 2015, the company generated a turnover of more than Eur1.7 billion.

The company group moves food consignments of all sizes and in all temperature ranges. Among them are frozen products, meat, sweets – and of course dairy products.

The Nagel-Group daily contributes to providing consumers with the right goods in 24

the right quality at the right time.

The services range from collecting raw materials up to delivery of ready-to-use products at Distribution Centers, in the outlet or even right at the doorstep.

Warehousing, picking, packing, labelling and other value added services have become an important part of the customized solutions.

As a link between manufacturers and retailers, the Nagel-Group makes a substantial contribution to providing more than 500 million consumers in Europe with daily

fresh food. This is the key to success of its customers. J

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IMHX 2016 Showcases the Latest Materials Handling and Supply Chain Solutions ogistics and materials handling touch L everyone’s lives – whatever is purchased be it online, in store or delivered from a wholesaler. That’s why IMHX, the UK’s leading logistics exhibition taking place at Birmingham’s NEC from 13th to 16th September, is a must-attend event.

Sponsored by financial services provider Investec, IMHX 2016 will reflect every aspect of 21st century intralogistics. Present at the show will be over 100 suppliers of forklift trucks and associated products and services, over 30 supply chain and warehouse IT providers, in excess of 40 suppliers of automation solutions, over 25 companies working in packaging and well over 60 general materials handling exhibitors.

The regional heats of the RTITB Operator of the Year return to IMHX in 2016. This is held every three years to find the best forklift operator in the country.

The Design4Safety awards, organised by the British Industrial Truck Association (BITA), will also be part of IMHX 2016. The

aim of the awards is to highlight the importance of product or service design in improving safety standards. Enter by visiting www.imhx.biz/design4safety.

Demonstration Zone and Supply Chain IT Village There will also be a Demonstration Zone where manufacturers will be putting their trucks and equipment through their paces, showing their capabilities and versatility.

IT solutions are playing a growing role in the supply chain and in response to these developments for the first time IMHX will feature a dedicated Supply Chain IT Village.

Among those exhibiting will be Proteus Software which specialises in providing Warehouse Management Systems (WMS).

David Bugden of Proteus says: “IMHX is the event for anyone involved in logistics and supply chain and this is our fifth time attending. The new IT Village provides a great platform for technology providers to meet potential customers and showcase new innovative developments.”

Future Skills Zone Also for the first time ever this year at IMHX we are pleased to announce a Future Skills Zone highlighting the careers available to young people in Britain’s logistics sector, and featuring leading employers from across the sector.

The Future Skills Zone at IMHX will show the brightest and the best that they don’t need to choose university as their route to a good career – and that a vocational route can take them into highly skilled managerial positions.

Leading companies across the UK are crying out for ambitious and motivated young people to take on interesting and challenging roles in logistics and allied industries and those participating in the Zone include leading forklift truck manufacturers

Toyota Material Handling, and Linde Material Handling, whose apprentices will be stripping down and rebuilding a vehicle, Crown and Jungheinrich.

Within the Future Skills Zone there is also a Future Skills Presentation Theatre which will feature a series of presentations from young aspiring logisticians who will provide insight into what a logistics career path can offer. Presentations from XPO Logistics and Widdop & Co are already scheduled, with others being confirmed shortly.

The former BITA Academy, now the new Forklift Training Engineering Centre (FTEC), the industry’s training centre for apprentices and engineers, will also be providing information on apprenticeships.

Aftersales Director for Linde Material Handling UK, Mark Sullivan, says: “As a business, it's so important for us to invest heavily in future generations, and create a highly diverse and skilled workforce.

Participating in the Future Skills Zone enables us to demonstrate the role we can play in harnessing talent. We're delighted to be part of it.”

As you can see there is plenty going on over the four days of the show – and with over 400 exhibitors expected to attend, IMHX 2016 is on track to be the biggest ever. To find out more go to www.imhx.net. J

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I MEAT & POULTRY

Lean Times For Meat and Poultry Processors The pace of consolidation within the European meat and poultry industry is accelerating as the major processors seek to add scale, move into new markets and diversify their product portfolio through acquisition as the trading environment becomes increasingly challenging and global in nature. he European meat and poultry industry is facing intensifying competition in the retail market, which is putting pressure on prices, at a time of declining export sales due to the Russian trade embargo and a slowdown in some emerging markets, such as China.

Over half of EU-27 meat volume production is now generated by 100 companies. The Top 100 meat and poultry processors, ranked according to their European market shares and listed by their ultimate holding companies, are featured in the Tables.

About 30% of volume production - up from 23% ten years ago – is now controlled by the top 15 European meat processors – Vion Food, Danish Crown, Tonnies, Bigard Group, Westfleisch, LDC, HK Scan, Veronesi Group, Cooperi, Doux Group, Plukon Food Group, Terrena, ABP, Moy Park and 2 Sisters Food Group (Boparan). Although the majority of EU meat processors remain local and national in nature with no operations outside their domestic markets, the biggest players have been investing in acquiring overseas production assets and the industry is steadily becoming more consolidated and international.

T

Jais Valeur, chief executive of Danish Crown Group.

food group, since 2008. The acquisition furthers JBS’s European expansion strategy.

JBS is a global leader in beef, lamb and poultry processing and is also heavily involved in pork production. JBS is the world's largest exporter of animal protein, selling to over 150 countries worldwide.

Another leading European poultry business to change hands recently is Doux Group of France. Terrena, the French agrifood co-operative, has purchased a controlling 52.5% stake in the poultry giant.

Doux Group is being combined with Terrena’s existing poultry business, Gastronome. The move will consolidate Terrena’s position as the second largest poultry producer in France behind LDC. Terrena has now embarked on a major investment programme to complete the integration of Doux Group as it seeks to

$1.5 Billion Acquisition The largest deal of this kind in the past year was the $1.5 billion acquisition of Moy Park, one of Europe’s largest poultry producers, by JBS, the Brazilian meat group, in September 2015. Based in Northern Ireland, Moy Park had previously been part of Marfrig Global Foods, another Brazilian

Maxime Vandoni, managing director of Terrena.

expand both domestically and internationally. “Our ambition is to create marketleading poultry brands, to win market share in France, and export French know-how internationally,” says Maxime Vandoni, managing director of Terrena.

Over half of EU-27 meat volume production is now generated by 100 companies.

Bernard Matthews For Sale Bernard Matthews, the UK’s leading turkey producer and the country’s largest poultry

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Europe’s Top 100 Meat and Poultry Companies Ranked by Market Shares, 2016 Company Ranking

Ultimate Holding Company

Market Shares

JBS is the world's largest exporter of animal protein, selling to over 150 countries worldwide.

brand, has just been put up for sale by owner Rutland Partners, the specialist turnaround and restructuring investor, which has appointed Price Waterhouse Coopers (PWC) to look at possible buyers. Rutland Partners first invested in Bernard Matthews alongside the existing family interests in 2013.

To reduce debt, Bernard Matthews recently sold its German subsidiary Bernard Matthews Oldenburg – to Sprehe Gruppe, which is owned by Albert and Paul Sprehe, and produces chicken, turkey and pork across a number of sites in Germany. The sale will reduce Bernard Matthews debt by Eur14 million.

It has been reported that interested suitors in Bernard Matthews include 2 Sisters Food Group, the UK’s largest supplier grocery market supplier, Faccenda Foods, the UK’s second largest chicken processor, and Moy Park. 2 Sisters Food Group first entered the turkey market in April 2016 with the purchase of Irish business Grove Farms.

Northern Ireland-based meat processor Dunbia, which has annual sales of £827 million, is also reported to have been put up for sale by brothers Jack and Jim Dobson, who founded the business in 1976.

Consolidation in Ireland In the Republic of Ireland, ABP Food Group, which is one of the top three beef processors in Europe, is in the process of acquiring a 50% stake in Slaney Foods to form a joint venture with Northern Ireland meat processor Linden Foods, which is part of Fane Valley Co-operative. Slaney Foods comprises of the Slaney Foods International beef business and the sheep meat specialist Irish Country Meats.

Ranjit Singh Boparan, group chief executive of 2 Sisters Food Group.

Selected meat markets in Europe (22 countries). A total market of Eur159.9 billion.

Products: 5 Product Markets: Beef, Poultry, Canned Meat, Frozen Convenience Meat, Bacon & Ham. * Market shares are for end retail and foodservice markets by value, based on weighted averages of value market data and retail and foodservice buy-in prices.

Source: Food for Thought, see: www.fft.com

Francis Kint, chief executive of Vion Food.

“Consolidation within the industry is absolutely necessary in order for our sector to remain competitive,” points out Paul Finnerty, chief executive of ABP Food Group. “This consolidation trend is the result of an increasingly challenging international background where we compete against global players, many of whom have processing capacity multiple times that of the entire Irish industry.”

Employing 9,000 people, ABP Food Group operates 41 manufacturing plants in Ireland, the UK, Denmark, Poland, Austria, Holland and Spain.

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Europe’s Top 100 Meat and Poultry Companies Ranked by Market Shares, 2016 Company Ranking

Ultimate Holding Company

Market Shares

Major Investment Moy Park and 2 Sisters Food Group are continuing to invest heavily in their processing facilities and supply chains.

Established in 1993 by Ranjit Singh Boparan, 2 Sisters Food Group has evolved from a small scale frozen retail cutting operation into an international, diversified food group with a strong presence in the poultry, red meat, chilled and frozen food categories.

“We are launching a major £150 million investment programme in our poultry business that will completely revolutionise our supply chain end-to-end,” says Ranjit Singh Boparan. “We are aiming to further align our poultry business with the needs of our customers, creating world class facilities utilising state-of-the-art technology, and driving efficiency.”

Reflecting its continued growth in sales, chiefly to customers outside Northern Ireland, Moy Park has commenced a £170 million expansion programme across its three Irish sites at Dungannon, Craigavon and Ballymena. The investment, which entails the installation of additional processing lines and the establishment of an Innovation Centre to drive new product development, will result in the creation of 628 new jobs over a four year period. Moy Park is also spending £10 million at its processing facility and hatchery operations at Ashbourne, Debyshire in England, leading to the creation of 100 new jobs.

Janet McCollum, chief executive of Moy Park.

Like 2 Sisters Food Group, Moy Park has been diversifying its product portfolio to become a broader-based convenience food business. “We have transitioned from being a poultry processor to a food company, investing heavily in innovation and food development,” comments Janet McCollum, chief executive of Moy Park.

“Today, the trend in the market is very much about convenience. We have been on that journey. We’ve always complemented our fresh poultry offering with convenience foods, such as ready-to-eat meals and breaded-coated products.”

New Poultry Plant in Finland HKScan, the leading Nordic meat processor, is building a new poultry plant at Rauma in Finland. The new plant will specialise in the expanding poultry segment and chicken products. Construction commenced at the start of the year and is scheduled for completion at the end of 2017.

Valued at roughly Eur80 million, the project is one of the largest production investments in HKScan’s history.

“We have been producing Finnish food for Finnish consumers for over 100 years.

We set out in the poultry business in the 1970s, since which Kariniemen has grown into Finland's leading poultry brand. This new investment will consolidate our posi-

Selected meat markets in Europe (22 countries). A total market of Eur159.9 billion.

Products: 5 Product Markets: Beef, Poultry, Canned Meat, Frozen Convenience Meat, Bacon & Ham. * Market shares are for end retail and foodservice markets by value, based on weighted averages of value market data and retail and foodservice buy-in prices.

Source: Food for Thought, see: www.fft.com

Paul Finnerty, chief executive of ABP Food Group, who is retiring on 30th September 2016.

FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2016

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In Spain, Campofrio Food Group is investing Eur225 million on building a new meat factory.

tion in the rapidly expanding poultry market and in value-added product groups, in line with our strategic focus areas. Rauma offers us an optimal location with the most advanced zoning solution and infrastructure,” explains Aki Laiho, chief operating officer and deputy chief executive of HKScan.

HKScan produces pork, beef, poultry and lamb products, processed meats and convenience foods under strong brand names. Its home markets are Finland, Sweden, Denmark and the Baltics, but the group also exports to close to 50 countries.

In 2015, HKScan had net sales of approximately Eur1.9 billion and some 7,400 employees.

Restructuring at Vion Food Vion Food, which operates production sites in the Netherlands and Germany and has sales offices in 16 countries worldwide, is

Jari Latvanen will be joining HKScan from Stora Enso by the end of November 2016.

continuing to restructure its business by investing in enhancing the efficiency of its production base and supply chain. In spite of the challenging market environment, particularly in pork, Vion Food returned to profit in 2015 with a net profit of Eur22 million against a net loss of Eur21 million in 2014. Turnover in 2015 was Eur4.6 billion.

During 2015, Vion Food continued its ongoing efforts to improve its network of production locations by closing some sites and investing Eur64 million in the remaining facilities.

Francis Kint, chief executive of Vion Food, comments: “In 2015, we continued the line of progress that was started in 2014. We invested in improving our production infrastructure. Over these two years, we have reduced the number of our sites from 35 to 25, without losing volume.

We have also made further progress in value creation from our livestock by a better valorisation of the animal parts and implementing programs around animal welfare and regionality.”

Two pork sites (Bad Neustadt and Straubing) and two beef sites (Anklam and Frankfurt) were closed in 2015, while Vion Food simultaneously invested in expanding and modernising its sites in Groenlo, Landshut, Vilshofen and Waldkraiburg.

When the investment in Waldkraiburg is finalised in August 2016, the site will be one of Europe’s most modern and best-performing beef slaughtering and deboning facilities.

€225 Million Investment by Campofrio In Spain, Campofrio Food Group is investing Eur225 million on building a new meat factory at Burgos to replace the orginal factory, which was destroyed by fire, as the company continues its international expansion. Present in Europe and America through its eight business units based in Spain, Italy, Portugal, US (South Region), Germany, Belgium, France and The Netherlands (North Region) and a joint venture, Caroli Foods Group, in Romania, Compofrio is now part of Sigma, the food subsidiary of the Mexican conglomerate ALFA. Due to be operation by the end of 2016, the new factory will give Campofrio a production capacity of over 100,000 tonnes per year to serve the Spanish, Portuguese, French, Italian, Belgian and US markets.

Leadership Changes Some of Europe’s largest meat and poultry processors – including Danish Crown, HKScan, Vion Food and ABP Food Group - have announced leadership changes in the past twelve months. Jais Valeur is the new group chief executive of Danish Crown Group after succeeding Kjeld Johannesen, who headed the world’s largest exporter of pork and Denmark’s largest cattle slaughterhouse business for 27 years, at the start of 2016.

Danish Crown, which has been affected by the Russian trade embargo, has activities and sales in more than 130 countries. “The challenges facing Danish Crown on a daily basis include a weak demand for and an excess supply of meat in neighbouring European markets,” says Jais Valeur.

“Danish Crown is a well-managed and well-invested business. However, we are also a part of a food sector which is under pressure and undergoing rapid change. For Danish Crown to maintain its leading position in the market, we must become even better and work even harder to create value for our 8,000 owners and suppliers.”

Jari Latvanen has been named as the new president and chief executive of HKScan.

Jari Latvanen will be joining HKScan from Stora Enso by the end of November 2016 at the latest. Vion Food has been under new leadership since September 2015, when Francis Kint became chief executive.

ABP Food Group has named Frank Stephensen, current group chief operations officer, as successor to current chief executive Paul Finnerty, who is retiring on 30th September 2016. J

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I MEAT & POULTRY

Make the Most of Your Raw Product – Minimize Give-away and Maximize Quality ere’s a though - how much extra food can we produce if we optimize the H production processes all the way from the harvest to the end consumer’s table? And how can we improve and enhance our businesses if we are smart and precise in every step of the process?

By handling food with care and intelligence, Cabinplant can help you get the most out of every piece of meat, fish, vegetable or the food product you are making. Cabinplant has the technology to precisely measure, cut, trim, weigh and package any food product on the market.

into trays. The sausage depositor is designed to handle various formats and multiple product layers and to minimize give-away.

From Stand-alone Machinery to Turnkey Projects

Multibatcher.

Weighing and Packing Solutions

Speed, flexibility and accuracy are key parameters to optimize your production economy.

Cabinplant has a multitude of optional features which enable you to produce sticky and fragile products with accurate results at high speed on our weighing machines.

One of the recent inventions from the com-

Total packing solutions.

pany is the fully automatic multi batcher. It is suitable for weighing and batching of large portions at high speed and handles portion sizes of up to 30 kg of meat or meat by-products. The accurate weighing of batch sizes reduces give-away significantly compared to other systems and improves your return on investment.

The Cabinplant multi batcher is tailormade based on product size and batch size according to customer request and available either as a stand-alone unit for automatic or 34

manual bagging, box packing or filling into thermoformed packages, or as part of a complete packing line.

Weighing and Packing of Sausages

Designing food production equipment is often a question of combining various existing technologies in new and innovative ways. That is one of the core skills of Cabinplant – to meet your requirements, while applying everything they know about automation, robotics and mechanical engineering.

The people of Cabinplant use their skills and long market expertise in designing a production line which is tailor-made to your needs and specifications. Altogether, Cabinplant’s ability to provide precision weighing of all kinds of products and development of food processing technology puts you in a very strong position. J

Another recent development within their weighing and packing solutions is a sausage depositor. It is a fully automatic solution for alignment of portions of sausages (or similar products) in trays. The depositor is designed to operate together with a multihead weighing machine and must be installed directly above the thermoforming/tray sealing machine.

The weighed-out portions fed by the multihead weigher are dropped into a vibrating unit, where each portion is aligned. After alignment, the portions are gently discharged Sausage depositor.

Pioneering Food Processing For More than 40 Years Cabinplant is a leading global provider of tailor-made processing solutions for the food industry.

The main focus areas are within fish, shellfish, vegetables, fruit, berries, meat and poultry and convenience foods. Additionally, Cabinplant provides multihead weighing and packing solutions for a wide range of industries. In close cooperation with the customers, they develop, manufacture and market innovative process and packaging machines with built-in knowhow that optimize yield, throughput and product quality.

The company is a privately owned company with headquarters in Haarby, Denmark, and employs more than 230 people. Cabinplant has subsidiaries in Germany, Spain, Poland and the USA as well as a sales network of agents in more than 30 countries worldwide.

FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2016

A Busy Year Ahead For AGRO Merchants Group GRO Merchants Group was A established with one goal in mind: to build a strong worldwide network

serve ports, distribution hubs, and production locations via ship, rail, truck, and air – providing comprehensive “one-stop” services and support from booking to final destination delivery.

of family-owned cold storage and logistics companies and with their experience and capabilities provide world-class solutions to their clients.

All of AGRO’s companies have a long history of success behind them and AGRO helps them build on the amazing potential they have, at the same time as helping their customers grow.

Global Cold Chain Network AGRO Merchants Group was founded in 2013 and has since built a presence in 8 countries worldwide – UK & Ireland, the Netherlands, Spain, Austria, the USA, Brazil and Chile, with more locations coming soon. AGRO is always on the lookout for new opportunities to develop infrastructure that improves the cold chain.

Operating more than 750,000 sq. meters of refrigerated and dry warehouses, AGRO has become one of the top players in the world.

AGRO’s state of the art facilities provide cold chain management integrity and accurate temperature control for all major food commodities including beef, pork, poultry, seafood, bakery products, fruits and vegetables. AGRO is certified across a variety of international product handling and governmental standards. In Lough Egish, Ireland, they operate the first and only 3rd party packing line approved by the local authorities.

The Full Package When producers decide to pack and store

their produce locally in any of the facilities of the network, AGRO can help them save immense costs for logistics. Some of the packing line services include product quality inspection & testing, pre-portioning, metal detection, UV treatment, re-packing & bagging, store-ready labelling and coding.

First Class Integrated Services AGRO’s focus on integrated and valueadded services makes the company stand out the most. Quality inspections, tray washing, import and export management, cross-docking, order picking, blast freezing or product tempering are just some of the services AGRO can offer their customers and since having acquired the Northern-Ireland based Sawyers Transport, refrigerated and ambient transport are part of the comprehensive services in the UK, Ireland and Europe. AGRO is always open for innovation and dialogue with their clients so that they can tailor the services based on each individual customer’s needs. AGRO work very closely with existing and potential partners to determine how they can influence and improve opportunities for trade and create global trade flows rather than just follow them.

AGRO Merchants invest in strategic port-proximate locations, which enables them to

AGRO’s Growing Further There are several projects on the way and to be finalised this year, as AGRO keeps adding to its capacities and developing their capabilities to support them in their ambitious plan for growth.

A massive expansion in the port of Algeciras in Spain, which will increase the current facility’s capacity by five times, will be finalised in August 2016. Algeciras is optimally positioned, being the first Mediterranean port of call for most ocean services from South America, Asia and other regions.

Construction works are also on the way in Maasvlakte - Rotterdam, where AGRO is building the first European greenfield. The facility of the capacity of 18,000 pallet spaces is expected to be operational in December 2016. Environmental sustain-

ability is one of the key elements of AGRO’s business strategy and the new warehouse was designed based on the latest standards to be environmentally friendly and energy-efficient.

Another expansion project is on the way in Rotterdam, which will add 5.500 pallet spaces and 13 additional loading bays to the fresh produce-focused ADB Cool Company, a proud member of AGRO Merchants Group since 2015.

AGRO has many more exciting projects coming up over the next few years, as they are not only strengthening their presence in Europe, U.S. and Latin America, but exploring new opportunities in Asia Pacific and Africa. J

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I CEREALS & SNACKS

Innovation to Spur Growth at Kellogg Company Kellogg Company is banking on innovation, strategic acquisitions and cost reduction to help reduce over reliance on its sluggish but still core US breakfast cereals business and to spur future growth. ellogg’s strategy is to drive long-term growth in its core cereals business, while also seeking to become a global player in snacks. It is also planning to continue to expand in emerging markets.

The $2.69 billion acquisition of Pringles, the world's second largest player in savoury snacks, in 2012 nearly tripled the size of Kellogg's international snacks business. The acquisition also significantly advanced Kellogg's strategic goal of building a global snacks business on par with its global cereals business.

Snacks, spearheaded by Pringles, accounted for almost 50% of Kellogg’s revenue of $13.5 billion in 2015, with its breakfast cereals brands, including its flagship Special K, generating about 43% and frozen foods the remainder.

tial growth capital and access to Kellogg resources and expertise, which will help drive their ideas and businesses. It's truly a winwin.”

K

Innovation Innovation is crucial to fuelling organic growth by helping to revive flagging sales in the sluggish breakfast cereals markets, especially in the US, and to expand Kellogg’s global snacks business. The company invests 1.5% of its annual revenues in R&D compared to levels of 1.2% and 1.25% respectively by rivals PepsiCo and General Mills.

Kellogg has also established eighteen94 capital (1894), a venture capital fund intended to support growth by making minority investments in companies pursuing next-generation innovation, so providing access to cutting-edge ideas and trends. The investment mandate includes start-up businesses pioneering new ingredients, foods, packaging, and enabling technology.

1894 intends to invest approximately $100 million. As a result, it will play an important role in achieving Kellogg's 2020 strategic growth objectives. 1894 will invest in emerging businesses in both

Kellogg's core categories and adjacent categories, and in companies that have developed new consumer-driven technologies that could lead to long-term, mutual growth opportunities. While stage-agnostic, the fund will emphasise early stage opportunities with companies that have demonstrated good product and market fit and have generated initial revenue.

“As consumer preferences move toward more diverse tastes and trends, the pace of innovation in the packaged food industry continues to intensify,” explains Gary Pilnick, vice chairman of Kellogg Company. “By investing directly in the most promising entrepreneurs and ventures, we can increase greatly our access to game-changing ideas and trends that could become significant sources of growth for us. At the same time, we will be providing these companies with essen-

Cost Reduction Kellogg has been focusing on cost reduction and efficiency improvement to bolster profits in the face of weak sales. The world’s leading cereals manufacturer and the second largest producer of cookies, crackers and savoury snacks, is part way through the implementation of Project K - a four-year programme designed to deliver estimated annual savings of between $425 million and $475 million by 2018. The bulk of the cost savings are being reinvested to drive future growth.

Strategic Acquisitions Kellogg is continuing to build its presence in emerging markets, such as the Middle East and Africa, through strategic acquisitions and joint ventures. For instance, it recently acquired Mass Food Group, Egypt's leading cereals company, for $50 million, having earlier acquired Bisco Misr, the country's leading packaged biscuits company.

Kellogg has also significantly increased its presence in the growing African market and advanced the company's breakfast, snacks and emerging market strategies to drive future growth by acquiring a 50% stake in Multipro, a premier sales and distribution company in Nigeria and Ghana, for about $450 million. Furthermore, Kellogg has formed a new, long-term partnership with leading food company Tolaram Africa to develop snacks and breakfast foods for the West African market, as well as noodles across Africa, which are often eaten at breakfast. J

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CPM Wolverine Proctor – A ‘One-stop Shop’ For Customers PM Wolverine Proctor Ltd has been C supplying processing machinery to the food industry since early last century and continues to do so on a global basis. CPM Wolverine Proctor has manufacturing facilities in Europe and the USA and customers are becoming progressively more reliant on the company as a system supplier, partly because they have had to reduce their own staff numbers to remain competitive.

As a consequence, CPM Wolverine Proctor has developed its project management and engineering resources across the board, bringing in new design initiatives and process knowledge, allowing the company to draw on experiences that may have come from unexpected applications in other industry sectors and enabling it to offer a truly turnkey supply.

For breakfast cereals, CPM Wolverine Proctor is able to offer complete plants

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based on traditional steam cooking and extrusion cooking, drying and tempering, flaking and shredding, baking and toasting, coating and decorating. CPM Wolverine Proctor’s recent acquisition of TSA Griddle Systems now enables it to add to the breakfast capability with waffles and pancake systems, in addition to its tried and tested granola and cereal bar lines.

Using “Inventor” software, CPM Wolverine Proctor is able to design a complete plant in 3D and ensure that it will fit without problem by digitally scanning an existing facility at the outset of a project.

Teaming up with other machinery specialists, CPM Wolverine Proctor can offer customers a ‘one-stop shop’ for everything from raw material handling through to finished product palletization, all managed by a dedicated project management team.

CPM Wolverine Proctor’s continuing drive to be the preferred machinery supplier means that it talks to customers about what they like and dislike, listening to their ideas and identifying the priorities for their business. Only then can CPM Wolverine Proctor hope to meet and exceed their expectations.

CPM Wolverine Proctor is proud to be a major supplier to the global leader in breakfast cereal manufacture. J

FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2016

I HYGIENE

Re-inventing the Wheel If you’re responsible for a busy food manufacturing facility you’re concerned with cleanliness, safety and reliability.

S manufacturer Rite-Hite has literally re-developed the wheel with its new U Traxion drive system that powers their FasTrax doors at speeds of 2.54 metres per second, and this simple mechanism is helping tens of thousands of doors around the world open and close more safely and reliably every minute of every day.

springs and pulleys, all of which add complexity to the operation and maintenance of the doors. Perhaps most importantly for food environments with a focus on hygiene, routine wash downs are fast and effective.

The simpler design leaves fewer places for contaminants to hide.

Simple is Better

“The beauty of FastTrax doors is that we’ve re-designed the fundamentals so we can keep things simple. Simple is better,” claims Jim Smith, Director of Rite-Hite in the UK. “Our Traxion Drive System is a great example. This simple mechanism brings three great benefits: our doors operate at high-speeds, there are fewer things to go wrong, and most importantly in the food business, FasTrax are extremely quick and easy to clean.”

Rite-Hite’s FasTrax doors are made in numerous configurations and with many additional safety features available.

Rite-Hite’s unique Traxion drive mechanism is easier to clean and virtually maintenance free.

Rite-Hite’s simple design makes routine wash downs quicker and easier because there are fewer places for potential contaminants to hide.

the drive mechanism only needs greasing from time to time. Not only are FasTrax doors the best performing doors on the market, they also offer the lowest cost of ownership over their lifetime.”

Safety Features

About Rite-Hite

“The FasTrax range of high speed doors is comprehensive, with solutions for every application,” continues Jim Smith.

“Whether you’re putting a high-speed door between a freezer and an ambient area, or between cold storage and loading bays, the same simple and efficient Rite-Hite engineering lies at its heart. We offer the fullest possible range of insulation designs and safety features, including sensors and visibility aids, to make an efficient and safe working environment.”

Rite-Hite is the world leader in the manufacture, sale, and service of loading dock equipment, industrial doors, safety barriers, HVLS fans, industrial curtain walls, and more - all designed to improve safety, security, productivity, energy savings, and environmental control.

Contact Rite-Hite on infoUK@Ritehite.com. I

Lowest Cost of Ownership Fast and Effective Washdowns

The Traxion Drive System that is built-into all FasTrax doors consists of a drive gear, unique drive spheres and a semi-rigid material that is attached to the curtain. This eliminates the need for counterweights,

“But the most important thing for everyone these days is definitely cost. FasTrax doors are great value, and because we’ve designed out the fussy technicalities and built in the features you really need, they’re easy to maintain and inexpensive to own. In fact

FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2016

The beauty of FastTrax doors is that we’ve re-designed the fundamentals so we can keep things simplee.

Simple is better.

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I LABELS & LABEL APPLICATORS

Original Liqueurs – Original Labels For the ultimate personalised gift The Wiltshire Liqueur Company uses LX-Series Label Printers for their Bespoke Labelling Service. riginal Liqueurs – you can just drink O them as they are or you can be as creative as Tiffinie Pride, director and chief experimenter of The Wiltshire Liqueur Company, and enjoy them in endless ways: cool and refreshing in cocktails, traditional with a twist in pudding recipes or exotic and dazzling in desserts. “While cooking at home that’s actually the best time to try and come up with new ideas and flavours,” says Tiffinie, who runs the family-run business from deep in the Wiltshire countryside. “We have set out to transform the way we think about liqueurs, encouraging new and experimental ideas about how to mix and cook with them.”

Using unusual fruits such as blood oranges grown on the side of Sicily’s Mount Etna and wild strawberries from the south of France, the liqueurs are produced with less sugar than some traditional recipes meaning that the fruits are the dominant flavour of the liqueurs.

The Original Liqueurs Rather unique or let’s say unconventional is also the creation story of the company. The Original Liqueurs have been produced since 1993, back then only as a side businesses of the Hungerford firm and only a limited number of bottles of sloe gin and damson vodka each year as gifts for customers. “In 2012 my partner Christopher Robinson and I got the opportunity to buy 40

the company and pursue our passion for spirits and create our own range of uniquely-flavoured liqueurs.”

Since then the company’s wild strawberry and blood orange liqueurs were launched and boosted the production from 1,500 bottles a year to 10,000.

While the taste of each Original Liqueur is unquestionably the heart of their success, you first eat – or in this case drink – with your eyes.

Meaning the stylish labels (a mixture of traditionally English design with an original twist) that the company uses on their products, definitely help selling bottle for bottle.

“Our inspiration came from quintessentially English designer William Morris and the vibrant Czech art nouveau painter Alphonse Mucha.”

Tiffinie, who was working as a freelance marketing specialist before running her own liqueur business, knew of the potential of labels and launched immediately The Wiltshire Liqueur Co’s Bespoke Labelling Service, offering personalised bottles of their delicious liqueurs with a name or special message on the label, great for birthdays, anniversaries or that “just because” present.

But how can The Wiltshire Liqueur Company produce these labels at no extra cost for customers without any set up fees or minimum order requirements?

The Solution The solution presented itself at the London International Wine Fair and Distil at the

booth of Primera Technology in May 2012. Primera, a manufacturer of label printing equipment, showed its LX-Series of colour label printers and visitors were able to see the machines in action. One of the visitors happened to be Tiffinie and was instantly intrigued.

The LX-Series includes several desktop label printers, which utilise the latest in high-resolution inkjet technology to print brilliant, colourful labels for products, boxes and packaging. Printed labels can include photos, graphics, illustrations and text – even high-resolution linear or twodimensional bar codes. So when designing a label, really the sky is the limit. Included with every LX Color Label Printer are two label design software applications: Bartender UltraLite and NiceLabel SE Primera Edition. Those applications offer extra features such as modified templates, variable data and any barcode type. But any other preferred design program can be used to print labels directly from the application they were designed in. Tiffinie and her coworkers create each personalised label in Adobe Photoshop and then print them.

Another advantage of Primera’s label printers is that labels can be printed when and where they are needed in just the quantities that are required at the moment. So there are literally no minimum order requirements, no plate or die charges, no

FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2016

obsolete label inventory or long lead times.

“85% of our orders require a personalised label,” says Tiffinie.

“Rather than relying on a print company, we can now produce all our personalised labelling in house which means that we can turn around orders very quickly.”

LX810e Color Label Printer The Wiltshire Liqueur Company first bought the LX810e Color Label Printer, which uses one colour cartridge and one black cartridge. They use the printer every day and the demand of personalised labels increased immensely.

Therefore, a second printer – the LX900e Color Label Printer – was purchased in September 2015. LX900e incorporates the most advanced inkjet technology ever offered in a desktop label printer. Called Primera Imaging Perfection, this all-new printing technology delivers razor-sharp text, graphics and the most photo-realistic

printing possible.

LX900e has individual inks for cyan, magenta, yellow and black, keeping operating costs low since only one colour at a time needs to be replaced. Besides the traditional photo-quality dye-based inks, the LX900e can also run with specially designed pigment inks, which offer far

more stability against harsh conditions including water, chemicals, abrasion and exposure to long periods of UV light.

“During the Christmas season – our busiest – we produce between 100 and 150 labels a day. And without the LX printers we would not be able to offer our personalised labelling service. We dispatch within 24 hours of accepting an order.” Tiffinie adds: “I love the fact that the labels never slip so you can set a large print run and leave it running. It is also fairly fast and always accurate.”

Both printers were purchased from Primera’s UK distributor Bannerbridge plc. “The after sales support and back up has been great from Bannerbridge. We order all our ink and labels from Bannerbridge and the support is brilliant, always helpful and fast.”

For further information contact Primera Technology Europe on Tel +49 (0)611 927770 or visit www.primeralabel.eu. J

I LABELLING

Johnnie Walker to Provide Per Serving Alcohol Content and Nutritional Information On-pack iageo has announced that Johnnie D Walker is to be its first global brand to provide consumers around the world with on-pack alcohol content and nutritional information per typical serve. From early

Autumn, the new labels for bottles of Johnnie Walker Red Label, the best-selling Scotch whisky around the world, go into production and will then be shipped to dozens of markets globally. By the end of the year, up to 30 million bottles of Johnnie Walker Red Label with on-pack alcohol content and nutritional information per typical serve will be on the shelves, helping consumers understand what is in their glass. Every year around 115 million bottles of Johnnie Walker Red Label are typically produced and shipped around the world.

The labels conform to the new Diageo Consumer Information Standards (DCIS) and will apply to all Diageo brands. Diageo developed the DCIS based on research of more than 1,500 consumers around the world, including people from North America, Great Britain, Mexico and Spain. The new label

designs reflect the way consumers want to receive – and can understand – information on alcohol content.

Using this research, Diageo is committing to provide labelling across all its brands which is consistent in layout, so people know where to look for information on every pack, and uses icons which are significantly easier to understand than words, all of which tested well in focus groups.

Cans and bottles of Ireland's number one ale, Smithwick's, will also soon hit the shelves with updated labels, and from early next year, Guinness Draught cans sold in the Republic of Ireland will also be updated to carry alcohol content and nutritional information per serve. Updates to Johnnie Walker Black Label, Double Black, Gold Label Reserve, Platinum and Green Label are also planned for the first half of 2017. J

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I TRAYS & TRAY SEALING

Packaging Automation Helps Burton’s Biscuits Develop a New Concept ‘Snap and Go’ For Cadbury Chocolate Fingers he ‘Snap & Go’ packs are available in T packs of 4x31g PP trays with complementary lidding films that have been created to tap into the portioned snacking market, whilst offering portion control features for consumers and strong on-shelf aesthetics for retailers.

PA worked closely with Parkside Flexibles and Coveris to develop a tray and film combination to offer a one process heat sealing solution using pre perforated tray and film eliminating the need for additional, costly machinery to perforate the pack after being sealed.

PA played a fundamental role with the development of the new pack concept, producing samples for Burton’s in PA’s fully equipped trials kitchen facility at its headquarters in Knutsford, Cheshire.

Burtons purchased a high speed, inline,

fully electric tray sealing machine capable of sealing up to 60 packs per minute, 17 cycles per minute atmospherically.

Featuring PA’s Powerdrive™ technology, the SL4 operates without using any compressed air, therefore offering savings of up to 90% of the running costs of conventional pneumatically operated tray sealers. This enables food producers to demonstrate a real commitment to environmental issues, whilst delivering a competitive operating cost.

The machine is servo driven including the film feed and rewind system which helps give greater control and accuracy over the film passing through the machine which avoids film snaps and hits the correct position each time for the registered film and stay within tolerance for film tracking.

For further information contact Packaging

Automation on Tel +44(0)1565 755000 or visit www.pal.co.uk. J

Fruit Stays Fresh For Longer in Corrugated Trays orrugated trays keep fruit fresher and C safer than reusable plastic crates (RPCs) and can significantly reduce contamination from pathogenic and spoilage microorganisms, according to scientific research. The research by the University of Bologna found that corrugated trays ensured better quality packed fruits and a longer shelf-life, reducing fruit microbial cross contamination. This decreases the risk of food-borne illnesses and increases fruit shelf life, contributing to the fruit’s freshness, scent, appearance and taste.

The research was led by Professor Rosalba Lanciotti at the University of Bologna’s Department of Agricultural and

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Food Sciences. It looked at the exchange of microbes between produce and packaging and vice versa. The study was particularly interested in how differences in packaging materials can influence the cross contami-

nation.

The results revealed statistically significant differences in the microbiological quality between produce packed in RPCs and corrugated trays.

The researchers packed peaches in deliberately contaminated packaging, both corrugated trays and RPCs, with the same number of Escherichia coli, Saccharomyces cerevisiae and Pseudomonas spp. and they then measured the transfer of the microorganisms to packaged fruit. The tests showed that the fruit reached contamination levels generally associated to fruit spoilage 48 to 72 hours earlier in plastic crates than in corrugated trays. J

FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2016

To Cap It All ooking for a caps and closures manufacturer with ranges to L inspire you and to make your product stand out and give shelf appeal? Then look no further, Measom Freer manufacture and stock 16 different closure ranges in all varieties and sizes to suit your chosen bottle, in neck sizes from 15mm through to 31mm.

Choose from general screw, disc and flip caps to more precise application from nozzle, dropper, plugseal and luer caps or more directional application from spray, trigger, gel and lotion pumps, all available in a range of colours to order.

Need a bottle, well they sell those too from small 2.5ml through to larger Litre sizes in a wide variety of shapes and food grade materials. Measom Freer are continually adding to their ranges, often in response to customer requests, resulting in a constantly evolving portfolio of products from jars and spatulas to boxes and fasteners. With cost effective prices and a minimum order of just a single box and next working day delivery you can rely on them to find your perfect product and quickly.

For further information contact Measom Freer on Tel +44 (0)116 2881588, Fax +44 (0)116 2813000, E-mail sales@measomfreer.co.uk or buy online at www.measomfreer.co.uk. J

Avery Dennison Completes Acquisition of European Business of Mactac very Dennison, a global leader in labelling and packaging A materials and solutions, has completed the acquisition of the European business of Mactac from Platinum Equity, a California-based private equity firm, for the purchase price of Eur200 million including assumed debt.

Mactac’s manufacturing facility in Soignies, Belgium, along with sales offices and warehouses in Europe and Asia, are now part of Avery Dennison’s global footprint. The transaction excludes the Mactac business in the US, Canada and Mexico which will continue to be owned by Platinum Equity. J FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2016

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See us the PP at Total S MA ho Stand w – J60

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The True Cost of Wrapping Your Pallets In recent weeks there has been some debate on the pros and cons of the cost of wrapping pallets 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. addy McCartney, National Sales P Manager of Aetna UK Ltd, and Becky Goy of First County Finance, who have worked with Aetna clients for many years, have made the following observations on the subject.

Paddy comments: “In some ways the idea of simply paying a cost of 70p a pallet seems a 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 continues: “I would like to outline some observations on the above.”

Costings “For a customer wrapping 50 pallets a day this amounts to 12,000 pal-

In some ways the idea of simply paying a cost of 70p a pallet seems a reasonable however the more paallets 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.

lets 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.

paying per pallet show that customer’s could actually end up paying for the machinery several times over.”

Becky Goy continues: “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 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

FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2016

For a customer wrapping 50 pallets a day this amounts to 12,000 pallets per year. If a customer takees 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 costss of under 25p per pallet, a total cost is 47.5p per pallet.

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Olympic Success Leads to Robot Investment at Speciality Breads he installation of a second-user robotic T system by Pacepacker has revolutionised the palletising of artisan loaves for Speciality Breads. Cutting palletising time in half, the robot is keeping up with the bakery’s daily production of 100,000 individual loaves from its brand new state of

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the art £3 million bakery.

Speciality Breads produces over 100 different types of handmade bread, from focaccia to brioche and ciabatta, at its Margate bakery in England. The loaves are freshly frozen and supplied to wholesalers throughout the UK, for distribution to restaurants, pubs, cafés and hotels.

Since winning the contract to supply bread and rolls to the London Olympics in 2012, the company has seen consecutive year on year growth of 30%. To increase production capacity and drive NPD, in November 2015, the company opened a new £3 million bakery, just minutes away from its original bakery which opened nearly 20 years ago.

“It was vital that we invested in the latest infrastructure and resources to help us continue to drive further growth in the years to come,” explains Peter Millen, MD of

Speciality Breads.

Planning for the project began in 2014, and Speciality Breads took control of the new site in early 2015. One of the last pieces of the puzzle was finding a palletising solution to stack cases of loaves onto pallets. J

FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2016

I PACKAGING INNOVATION

London’s Only Packaging Show Offers Plenty of Food for Thought Those working in the food and beverage industry will have masses to see at Packaging Innovations and Luxury Packaging London 2016, which returns to London’s Olympia, for its seventh edition on 14 & 15 September. ver 170 international suppliers have O signed up, many of whom will be using the show to introduce their new products, services and solutions to the UK market.

For instance, API will debut its new brand enhancement creative service and holographic foils.

Swedbrand will be presenting its next generation technology of bag-in-box wine, called Topflow. This new-patented technology enables the wine to be poured from the top of the bag.

According to Rawlings – Black is the New Amber – with its new type of glass bottle, Black Glass. Its high gloss finish not only increases shelf presence, but its UV light protection acts as a taste protector, extending the life of the bottle’s contents.

Drinks Symposium The Drinks Symposium, happening on day two of the show, will see three leading drinks brands take to the stage in order to share their knowledge, and firsthand experience on how packaging can help to win the hearts and minds of the consumer.

Kicking things off will be Catherine Monahan, Founder and CEO at Daemon & Genius, who will be presenting ‘Bricks vs. Clicks': Brand Experience > Brand Exposure’. Monahan who has worked for

two of the UK's largest supermarkets, Sainsbury’s and Tesco, as well as one of the largest global distributors, Constellation Brands will be talking about how brands that provide consumers with deep experiences of their product, and manage to generate an emotional experience of ownership, win at the point of purchase.

Monahan comments: “I've been in the retail and wine industry since 2000, and there are still a few things that continue to fascinate me. There is a fear to innovate on shelf within grocery, because of financial targets set for year on year performance and the risk associated with replacing known products/trusted brands with new/innovative products. This leaves innovation in the hands of the big boys and whilst yes, they do provide that to a degree, it often removes the entrepreneurship type of innovation coming in from start-ups, new brand builders and so on.”

Next up will be Steven Sturgeon, Fellow of the Chartered Institute of Marketing and recipient of the International Wine & Spirits Competition's 'outstanding achievement to industry' award. Steven will be looking at ‘Packaging’s role through the lens of the Operations Director and CFO’.

He will examine why their perspective is

often at odds with the brand team, and explore ways to overcome these tensions, with tips on how to review concept designs to ensure the best chance of success.

The session will consider some of the sources of inspiration for the packaging: heritage, provenance, characters, myths, stories and product cues, and how these can be used to inform an inspiring design brief.

The presentation will end with a number of ‘top tips’ and some ‘so what’s?’

Show Features New for 2016, The Dieline Conference, the first ever to appear outside the US, will deliver a series of sessions from leading brands and design agencies to discuss the challenges and opportunities that arise when designing for a brand.

The Starpack Awards, now in its 58th year, will be hosted for the first time at the event, plus The Beauty Forum, The Great Innovation Debate, and The Innovation Wall will all return. The show will also feature a free-to-attend seminar programme spanning the entire packaging market, delivered by an array of leading experts, including Coca-Cola, Harrods and Britvic.

Registration is now open. To register for free, please visit www.easyfairs .com/PI-London, www. easyfairs.com /LuxuryPackaging or contact +44 (0)20 8843 8800. J

FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2016

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I CORPORATE FINANCE

‘Brexit’ – The Challenges and Opportunities Facing the Irish Food and Drink Sector

By Ian Hunter, Senior Equity Analyst at Investec Across our main businesses in Investec Ireland - Corporate Treasury, Corporate Finance and Wealth & Investment - we have been working with clients in the food and drink sector to address the many challenges and opportunities thrown up by ‘Brexit’. rexit has closed IPO markets for now, tightened debt markets and reduced Merger & Acquisition activity, but it is also throwing up potential opportunities for growth. More volatile investment markets prevail for both cash rich companies and high net worth individuals. And the exchange rate volatility has brought corporate treasury decisions to boardroom tables across Ireland.

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The UK currently accounts for 41% of all Irish food and beverage exports, worth €4.4bn. For the prepared consumer foods (PCF) category in particular, the UK is the key market, accounting for 70% of its total trade at €1.75bn. While larger companies such as Kerry, Aryzta, Glanbia, Dawn Farm, Green Isle, Largo Foods, Kepak and Valeo Foods account for 50% of the sector’s output, in general, PCF companies tend to be small, employing less than 50 people. In markets where innovation, quality, brand and customer focus are key, the Irish PCF sector is seen as an enabler for the primary producers to add value and generate sales in export markets.

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Period of Uncertainty While a period of uncertainty post-Brexit is bound to impact investment decisions re business expansion both in Ireland and the UK, the immediate impact has been felt in the drop in sterling. Almost overnight, Irish exports into the UK have either become 13% more expensive and, therefore, less competitive against UK producers or 13% less profitable, if retail prices are maintained. The latter appears the more obvious scenario given the current deflationary environment in the UK food sector with retailers resistant to passing on higher currency costs. Indeed, Morrisons has already indicated that there will be no post-Brexit price increases And while exports into the UK have always been subject to the vagaries of exchange rates, the current concern is that the recent rate move proves to be a permanent structural change rather than the more usual temporary cyclical move.

Many Irish Corporates have been reluctant to recognise this new reality and we are seeing less commitment from Irish exporters to place FX hedges for longer periods. While the hope is that the sterling rate will improve, the concern is that it will continue to weaken, leaving exporters further exposed.

Some Relief Some relief for Irish corporates may come from the fact that the Post-Brexit currency moves have also impacted food manufacturers in the UK with the drop in sterling fuelling input cost inflation. Latest data from the UK Office for National Statistics shows a 4.1% rise in all food and drink production costs between June and July 2016 compared to a 1% rise between May and June 2016.

Coupled with this, the deflationary

environment in the retail sector has presented a challenge to food and drink manufacturers for over two years. Consumers have reduced their spending on food/drink, actively shopping for lower prices without compromise on quality.

This move to low cost quality products and a general reduction in waste has hit supermarket margins, which have been further exacerbated by the growth of discounters. For the food production industry, this pressure has been somewhat mitigated by the sustained low prices of raw material inputs. The challenge going forward, however, will be how efficiently food manufacturers will be able to pass through any increased costs.

Investec Track Record Investec has a track record of supporting clients across the food and drinks sector.

Recent transactions include the IPO of Fevertree, the investment by Spar SA in BWG Foods and the formation of Valeo Foods with the acquisition of Origin Foods, Batchelors and Jacobs Fruitfield.

Through our Corporate Treasury division, we actively work to provide hedging solutions for foreign exchange, commodity and interest rates and cash management.

And our Wealth & Investment business provides Investment advice to both private individuals and corporates, access to tax expertise and pre & post retirement planning. Our international presence coupled with a dedicated on-the-ground team is a unique proposition in the Irish market. We would be delighted to discuss any of the issues above in more detail. J

FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2016

I PROTEIN

9th Protein Summit 2016, 19-21 September, Lille Grand Palais, France onsumer awareness of the benefits of proC teins has soared, prices for dairy protein have dropped, new plant proteins, ingredients and technologies have come to market. How do retailers and food service organisations see the future across Europe and the world?

Availability of new vegetable protein sources such as pulses, rapeseed, rice, insect, algal, oat, potato, sugar beet and duckweed is increasing.

How to accelerate and scale-up introduction and investment in new protein sources and ingredients for both the food and drink industries? Which new technologies accelerate change? What is the legal framework?

Increased Consumer Understanding and Demand Many consumers understand the value of proteins and global food companies develop high protein foods which are often more nutritionally balanced. There is a need for better understanding of the market and consumer insights.

How does awareness of proteins change, how is awareness linked to shopping behavior?

High Protein Foods: Taste v Texture The quality of food and drinks with a higher protein content have increased but there remains a ‘taste’ and ‘texture’ gap. How can the development of better tasting protein food and drinks to delicious food and drinks be accelerated? What is needed, what is available but not used and which know-how from outside the food sector could be ‘sourced in’?

Plant-Protein Foods: A Tipping Point?

Is the consumer market for plant protein foods at a tipping point? Influx of new capital offers great opportunities. How do retailers and food service organisations see the future?

Availability of new vegetable protein sources is increasing. How to accelerate and scale-up introduction and investment in new protein sources?

A Great Place to Develop Your Protein Strategy – 9th Protein Summit 2016 At this networking and insights platform 250

delegates will share visions and gain inspiration in the global proteins world. More than 40 high level corporate and start-up speakers will inspire the audience to take the next step and raise the protein bar for creating new business and a better food world.

Free Innovation tours to the research facilities of IMPROVE – the first open European platform for research and development dedicated to the valorisation of plant-based proteins, and Roquette – a family owned group specialising in the processing of plant based raw materials: maize, wheat, potato and pea.

Unique 3-in-1 Industry Summit + Exhibition Track I: Consumer Insights & Target Groups - Get a better understanding on the food protein consumer. Be inspired by thought leading speakers from: Auchan, General Mills, GEPV, GfK, Nestle, Watch Me Think, Nutrikeo, Mintel, Motivaction, Wageningen University, INRA. Track II: New Protein Ingredients & Processes - Accelerate market access for new protein sources and technologies for agriculture, ingredient suppliers, technology and research organisation and food manufacturers.

Focus on pea, pulses, wheat, rice, faba beans, milk, animal by-products, insects, single cell protein and fish by-products. Thought leading speakers from: Tereos, VTT, IMPROVE, Clextral, Rousselot, Mosa Meat, MycoTechnology, NIZO, EAPA, IPIFF, GIRACT and Ingredia.

Track III: New Protein Foods & Channels for acceleration of market access for new protein foods in different channels, from brands to retail, food service and investment funds and venture capitalists. Start-ups speaking: Muscle Food, Gold & Green, Protein Pow, WheyHey, Tereos, Fortified Food Coatings, Fresh Fitness Food. Venture Capitalist: NewProteinCapital, Seventure, Munich Venture Partners.

Bridge2Food is a specialist knowledge and

network agency which develops specialist platforms on food category trends such as Sports & Performance Nutrition, Healthy Ageing, Ingredients with a specific focus on Protein and Food Technology.

Bridge2Food is hosting the 11th Food Proteins Course, 8-10 November in Amsterdam. This unique event is designed to give participants a theoretical and practical overview of vegetable and animal proteins currently available for food applications and to provide hands on know-how and knowwhere.

For more information, please visit: www.Bridge2Food.com New Awards Celebrate and Reward Protein Innovation!

New Protein Awards from Bridge2Food are designed to showcase and celebrate entrepreneurs and organisations driving growth and innovation in protein industry. Awards for Best New Category Development, Best New Protein Product, Most Novel Protein Ingredient, and Most Disruptive Technology will be presented at 9th Protein Summit. J

FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2016

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I WATER DRINKS

Consumer Demand For Healthy Hydration Propels Water Sales Sales of water drinks in both the UK and internationally are rising, driven by steady growth in plain water, functional waters, flavoured waters and premium waters, as consumers switch from sugary soft drinks to healthier, natural forms of hydration.

K consumption of all water drinks rose by 8.2% in 2015 to reach 3,299 million litres, with a retail value in excess of £2.5 billion, according to Zenith International, the specialist food and drink industry consultancy. Still water drinks were responsible for 83% of 2015 volume and sparkling water drinks 17%. Plain bottled water accounted for 85% of total consumption, flavoured and functional waters 13% and

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To meet growing consumer demand for water drinks producers of all sizes are investing in new capacity.

juicy waters 2%.

Plain water sales in retail pack sizes were the fastest growing sector in 2015, jumping by 9.1% to 2,517 million litres, while water cooler sales advanced 5% to 296 million litres. Flavoured, functional and juicy water plus drinks increased by 5.7% to 486 million litres.

Stefano Agostini, president and chief executive of the Sanpellegrino Group.

Scope For Further Growth With volume sales having more than doubled during the past 15 years, UK per capita consumption currently stands at 51.7 litres a year, with plain water accounting

UK consumption of all water drinks rose by 8.2% in 2015 to reach 3,299 million litres, with a retail value in excess of £2.5 billion, according to Zenith International.

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for 44.1 litres and water plus for 7.6 litres.

“This is a tremendous achievement by the industry, making sales 100 times higher than in 1980,” comments Richard Hall, chairman of Zenith International. “Yet the average in Europe and America is above 100 litres per person, so there is every prospect of continuing strong growth.”

The top five plain water brands by volume in the UK in 2015 were Evian, Highland Spring, Buxton, Volvic and Nestlé Pure Life. The top five water plus brands by volume were Volvic Touch of Fruit, Calypso Clear, Trederwen Essence, Drench Juicy and Volvic Juiced.

Zenith International forecasts that the UK plain water market will reach in excess of 4,000 million litres by 220 and the total water drinks market will stand at almost 4,800 million litres. The rising popularity of flavoured, functional and premium water drinks is evident not just in the UK but globally.

Flavoured, Functional and Premium Waters Global sales of flavoured water rose an estimated 4% in 2015 with Germany exhibiting the highest per capita consumption in

FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2016

West Europe. “Flavoured water’s success is drawing on the best of both the plain water and carbonated soft drinks worlds,” explains Richard Hall. “It promotes the taste of carbonates without the calories and the health of water with added interest. It can also command a price premium as well as providing opportunities for faster growth.”

According to Zenith International, the main areas of innovation within flavoured waters are new and more diverse flavours, all natural ingredients and low or no sugar content.

Global demand for functional waters also surged ahead in 2015, rising by an estimated 12% in volume with consumption per person highest in North America, Asia Pacific and West Europe.

“Functional waters provide added benefits for health conscious consumers at a substantial price premium for the industry,” says Richard Hall. “The most common added ingredients are vitamins and minerals alongside herbs and fruit flavours.

These are generally combined to provide a targeted package of taste, convenience and lifestyle with a wellbeing appeal.”

Nestlé Waters is planning the redesign of its Italian bottling plant for S.Pellegrino, the world’s leading sparkling mineral water.

Consumption of premium bottled water is also expanding with worldwide sales up 3.9% in 2015, as the sector benefits from the same consumer trends that are driving growth in the overall packaged water market. The global premium water market is relatively consolidated, with the leading five brands – Evian, Volvic, Vittel, Gerolsteiner and S Pellegrino – accounting for more than half of total volume.

Investment For Growth To meet growing consumer demand for water drinks producers of all sizes are investing in new capacity while simultaneously improving the efficiency, versatility and the sustainability of their operations.

For example, Danone recently invested Eur11.1 million to install a second line at its bottling plant in La Salvetat-sur-Agout in France, specialising in producing 50cl bottles of its sparkling water brand La Salvetat, to meet higher demand for hydration on the go Arch rival Nestlé Waters is planning the

redesign of its Italian bottling plant for S.Pellegrino, the world’s leading sparkling mineral water, in San Pellegrino Terme, Italy, where the source is located. The objective is to design a plant that not only conveys an artistic vision, but also sets new standards in terms of efficiency and environmental sustainability, all while also providing a favourable working environment.

Nestlé Waters has launched an international-scale tender to secure a truly innovative and futuristic project by involving four of the world’s most distinguished architecture firms. “Our brand is one with a rich history that is deeply-rooted in Italian tradition, which is recognised worldwide for

Les Montgomery, chief executive of Highland Spring Group.

Consumer thirst for bottled water is growing.

its elegance, taste and excellence,” says Stefano Agostini, president and chief executive of the Sanpellegrino Group. “We have invited four architecture studios of international stature to take part in this tender to design the home of S.Pellegrino mineral water, which is to become the signature of our group, welcoming visitors from all corners of the world.” The winning project and its timeline will be announced by the end of September.

Richard Hall, chairman of Zenith International.

Flagship Facility Elsewhere in Italy, Nestlé Waters has just opened a new state-of-the-art bottling facility for the Nestlé Vera Naturale mineral water brand at Castrocielo following investment of Eur16 million. The new facility is a flagship development for Nestlé Waters in environmental sustainability and energy consumption, offering ‘best in class’ performance, especially in water consumption and energy savings. All energy is derived exclusively from renewable sources and the new bottling plant also uses photovoltaic systems, LED lights, and heat recovery and retention systems, to ensure that the entire site is carbon neutral throughout.

UK Projects Indeed, Nestlé Waters is implementing 52

measures to improve sustainability across its bottling sites in Europe, including its £35 million plant at Buxton in England, which is already one of the most state-of-the-art factories for bottling water in Europe.

Charlie Roberts, manager of the Buxton factory, says: “We frequently produce more than 2 million bottles in a day of natural mineral and spring water, giving people the chance to choose a healthy beverage, and we always strive to make our products as sustainable as possible. Bottled water is widely recognised as having the lowest environment footprint of all packaged beverages.”

Also in England, Princes, the food and soft drinks group, is investing £15 million in a major extension and redevelopment project at its bottled water site at Eden Valley in Cumbria. The work at the Eden Valley site is part of Princes’ continual investment programme and will support plans to grow its Aqua Pura brand of natural mineral water.

Across the border in Scotland, Highland Spring, the UK’s leading producer of naturally-sourced bottled water, has broken ground on a major factory extension to house a new production line at its Blackford site in Perthshire. In total, £16 million is being invested as part of a business commitment to double production capacity in the next 12 months as the UK’s thirst for bottled water grows.

Long-term Sustainable Growth Les Montgomery, chief executive of Highland Spring Group, comments: “UK consumption of bottled water drinks rose 8.2% in 2015 to reach almost 3.3 billion litres, with a retail value in excess of £2.5 billion. We have great confidence in the underlying strength of

the category and our investment plans to drive long-term sustainable growth. The factory extension will increase capacity at our main Blackford site by 50%, ensuring we are perfectly placed to meet demand for bottled water as consumers continue to switch from sugary soft drinks to healthier hydration choices.”

Les Montgomery continues: “It’s expected that, by 2020, the plain water market will reach in excess of 4 billion litres and the total water drinks market will stand at volume sales of almost 4.8 billion litres.

2016 is set to be another year of doubledigit growth and we’re currently out-performing the market. With increased capacity to deliver against demand, we will continue to be at the forefront of healthy hydration for UK consumers.”

Celtic Pure Expansion Celtic Pure, the Irish mineral water company, has unveiled plans for a Eur5 million new bottling facility at its plant in County Monaghan. The new development will incorporate a state-of-the-art 6,600 sq m warehouse, which will house a technologically advanced management and tracking system, new bottling lines and additional office space for the company’s expanding workforce.

Padraig McEneaney, chief executive of Celtic Pure, comments: “The investment in our facilities will further create 25 plus new jobs, increase our annual production capacity by 65% and see our annual turnover rise twofold by 2017. Our target is to bring the business to the stage where we can target sales of Eur18 million to Eur20 million.”

The company currently employs 50 people and produced and sold record volumes of bottled water last year, in Ireland and worldwide via indirect exportation to China, United Arab Emirates, USA and Australia. Padraig McEneaney adds: “We’ve come a long way since 2000, with only two employees, supplying local customers with water in 5 litre drums.” J

Padraig McEneaney, chief executive of Celtic Pure.

FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2016

Kosme 3Bloc – Block Configuration Featuring Three Machines he trend towards combining several T units to form a single machine continues unbroken, for quite a simple reason - the advantages this offers to the users far outweigh the disadvantages involved. In the shape of the 3Bloc, Krones’ subsidiary Kosme has now presented its first concept for a block configuration featuring three machines available in two different variants - one for PET and one for HDPE containers.

Kosme 3Bloc.

3Bloc For PET Containers This consists of the following three concatenated machines: - blow-moulding machine - filler - labeller • either for applying pressure-sensitive labels • or for reel-fed wrap-around labelling.

This configuration is suitable both for

cylindrical or square PET bottles and for special-shaped containers. The maximum output is 16,000 bottles an hour.

3Bloc For HDPE Containers This consists of the following three concatenated machines: - unscrambler - filler

- labeller.

The unscrambler is tasked with putting the already-blow-moulded HDPE bottles in an upright position before they reach the filler and here takes the place of the blow-moulder needed for PET containers. This 3Bloc variant can handle up to 25,000 bottles an hour.

The 3Bloc concept has been based on technically sturdy components, and when compared to a layout featuring individual machines scores highly in terms of its substantially lower energy consumption, its higher efficiency and its enhanced user-friendliness. Needless to say that the block configuration also benefits the machine’s footprint, plus the capital investment and operating costs involved. No intermediate conveyors are needed, for example, and the times required for format changeovers and maintenance routines are shorter as well. J

Sterilizer Cleared Out! t an Indonesian production A site of the world’s leading dairy food brand, sterilized milk is produced in huge quantities. As usual in a production plant of that size, efficiency needs to be continuously optimized.

The ready to drink milk is canned and sterilized before secondary packing. But if the downstream tray packing equipment fails, the sterilizer needs to be cleared of products immediately. If not, the temperature will damage them and at least 24,000 cans will have to be discarded as waste, costing a huge amount of money in product loss and disposal costs, as well as the resulting hours of down time before restart.

However, there was a contradiction in the requirements; a huge storage capacity for inline storing of all the cans while the actual space was limited.

AmbaFlex therefore proposed their AccuVeyor AVo concept as the solution.

This consists of two SpiralVeyor SVm mass flow spiral conveyors positioned inline

and parallel to the normal flow. In case of a downstream stoppage now, the complete contents of the steriliser is cleared out of the system. Then, when downstream processes are up and running again, the cans are automatically fed back into the packing flow without any manual intervention.

The total AVo system utilises a belt which is 120 meters long and 500mm wide. This is enough to store 24,000 cans on just 8 square meters of floor space, thus achieving both of the customer’s objectives!! The total unit is 4.6 meters high and represents a good example of how to utilize the free space available in the third dimension.

One more proof of AmbaFlex’s leading position in Spiral Conveyor Solutions! J

FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2016

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I PROCESSING & PACKAGING

The Future of UK Manufacturing Debate Heats Up at the PPMA Total Show 2016 – 27-29 September 2016, NEC, Birmingham The UK manufacturing industry looks to the future with baited breath following the results of the EU referendum. As the wider UK economy remains unpredictable, the results of the referendum could represent a unique opportunity for the manufacturing sector should businesses consider the tactical, short-term implications and realise the importance of maintaining a focus on long-term strategic planning.

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peaking about the future of the UK manufacturing sector, the Rt. Hon Lord Francis Maude, former Minister of State for Trade and Investment will join visitors at this year’s PPMA Total Show to open the 2016 exhibition and deliver the opening address on both the challenges and opportunities that lie ahead. Appearing on the PPMA Total seminar stage on the first day of the show (Tuesday 27 September) Lord Francis Maude will discuss the outcome of the recent EU referendum and reveal the future plans for the government’s ‘Exporting is Great’ campaign.

The PPMA Total Show 2016 will not only see headline speakers like the Rt. Hon Lord Francis Maude but a range of industry experts who can offer insight and advice on the future of the UK manufacturing industry. Also confirmed to speak at this year’s PPMA Total Show, Emma De-Alwis, Hygiene Specialist at Campden BRI, Claire Shrewsbury, Packaging Programme Manager for WRAP, Elliot Woolley, Lecturer for the Centre for Sustainable Manufacturing & Recycling Technologies (SMART) at Loughborough University and Joanna Stephenson, Director for Women in Packaging will join the line up to discuss a wide range of highly topical issues including contaminated food products, food and packaging waste, self-optimising Cleaning in

Place (CIP) systems as well as the gender balance in the UK packaging industry.

Demonstrating the Latest Innovations in Manufacturing Attendees to Hall 5 at the NEC in September can also find out more about the latest trends and innovations taking the industry by storm. With returning exhibitors, Bosch Packaging Technology, Schubert, and Festo, already confirmed to join the line-up, organisers are confident that the 2016 show will be bigger and better than ever before.

In fact, since the PPMA shows returned to the full control of the association in 2013, the size of its events has increased by circa 25% year-on-year. The latest edition – PPMA Total 2016 – is already 50% larger than the first show of the new regime in 2014. With over 400 exhibitors, the event has already firmly established itself as the industry event not to be missed with 2016 set to be one of the biggest and highly

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FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2016

Manufacture Software and Display Systems From London Electronics – Stand G01

anticipated events yet.

New PPMA Group CEO, Andrew Mint, who joined the association on the 1st February 2016, says: “The PPMA Total Show 2016 is set to be biggest yet and the show is a great opportunity for businesses to get their brand, products and equipment in front of a high profile audience and celebrate the innovation that the industry has to offer. The show is a fantastic platform to highlight the latest innovations whilst also bringing some of the industry’s biggest issues to the fore such as the skills gap. I’m looking forward to seeing some the most exciting recent technological developments in our industry on show, as well as hearing from some of the industry’s leading figures at the PPMA Total seminar theatre.”

To register your attendance at the show please visit: http://bit.ly/28QsHuF. For more information on the PPMA Total Show 2016, please visit http://www.ppmatotalshow .co.uk/ or join the conversation on twitter @PPMATotalShow #PPMATotalShow or the PPMA Total Show LinkedIn page. J

London Electronics design and manufacture software and display systems to help you optimise the efficiency of your manufacturing and logistics processes.

Tailored real-time displays and software show production figures such as rate, total, downtime, OEE, finishing time, quality % etc. Whatever is important to you, London Electronics can measure it.

Live data allows you to respond immediately to any drop in performance, which you might not otherwise notice.

London Electronics’ secure cloud-based systems allow you to view live and historic data from anywhere you may be, over a protected link. A big advantage is that you don't need to download and special software or apps. Everything is run in your browser and is kept up to date automatically.

London Electronics’ speciality is customising systems to suit your requirements exactly. Nothing you don't need, everything you do need, in a format which is easy to understand. Visit Stand G01 or www.londonelectronics.com.

Riggs Autopack Volumetric Depositors and Filling Machines on Display at PPMA Total Show 2016 – Stand A21 Riggs Autopack Ltd will be exhibiting a selection of their high quality volumetric depositors and filling machines, transfer pumps and conveyor filling lines at this year’s PPMA Total Show, including an example of their servo drive filling machine.

Visitors to the Lancashire company stand on A21 will view a 4 head automatic depositor with conveyor, a semi-automatic servo drive filling machine with transfer pump, a micro-fill depositor for small volume deposits, and a semi-automatic bulk depositor for filling catering bags, buckets and jerry cans.

Riggs Autopack's depositors and filling machines are available as a semi-automatic stand-alone unit for small scale producers, or as an automatic conveyor filling system for medium to large scale manufacturers.

They provide damage free depositing of hot or cold liquid, semi-liquid and suspended solid products, and accurately fill most container types or size.

If you're investing in a high quality semi or fully automatic depositing system to accurately fill jars, bottles, pots, tubs, ready meal trays, cartons, buckets, jerry cans, pouches or bags, then Riggs Autopack could have the solution.

For further information contact Riggs Autopack Ltd on Tel +44 (0)1282 440040, Email info@riggsautopack.co.uk or vist www.riggsautopack.co.uk.

FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2016

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I MIXING & BLENDING

Admix Enhanced Services Are Revolutionising Food and Beverage Processing s a designer of sanitary mixing A equipment, Admix has relaunched several enhanced programs to set the pace for unsurpassed service, both before and after the sale. Admix invests significant resources into its value-added services, enabling customers to test new ingredients, formulas and applications in a variety of ways, offering maximum flexibility and cost savings.

Complimentary lab testing of recipes and formulas – Admix offers free testing in its pilot test lab in Allerod, Denmark. Veteran applications engineers work across countless ingredients, applications, and process- Admix fully-equipped test lab. es to prove the value and efficiency of Admix technology. Priority scheduling of induction systems, and high shear mixers. your formula testing is available at The program offers an aggressive Try & www.admix.com/lab.

Buy incentive, enabling processors to apply Robust trial program – Expanded to prorated trial fee credits to final unit prices. include its entire portfolio for 14-day trials, Product demonstrations – Throughout the Admix trial equipment inventory Europe, Admix representatives are available includes emulsifiers, wet mills, powder to conduct on-site product demonstrations

of the Rotosolver pilot unit, and in some locations, the DynaShear inline emulsifier and Fastfeed powder induction system. In addition, Admix backs up every purchase with a process assurance warranty, ensuring reliable, repeatable results.

Aftermarket support and field services – Service after the sale is a standard that Admix has invested heavily in for 2016. Along with a comprehensive spare parts program, the Admix field service team offers inplant customer audits along with implementation of preventative service programs.

Quick Ship program for flagship products – Rounding out this package is the Quick Ship program featuring the DynaShear inline emulsifier and the Rotomixx portable low shear agitator, which can ship within 14 days of order receipt. These mixers are clean-in-place, 3A compliant, and constructed of stainless steel materials. J

Fastfeed – An Overachiever in the Lab & Field One of Admix’s most popular products is the unmixed ingredients is eliminated allowing longer Fastfeed powder induction and dispersion system. process times and less frequent CIP cycles.

It consistently delivers smooth product for any In addition, batch times are reduced as powders batch size and has revolutionised food and beverare dispersed into the liquid stream while the age batching by enabling processors to: batch tank is filled. Fastfeed disperses powders • Cut batch times in half directly into the blend tank, so time-consuming • Improve operator safety and ergonomics 750-1100 liter pre-blends or “side batches” that • Reduce energy consumption up to 70% require processors to fill, add powders, mix, trans• Eliminate dusting and reduce air entrainment fer, and repeat are eliminated. And with 11 kiloWith installations all over the world, the Fastfeed watts driving the pump and the DynaShear high system inducts, wets, and disperses countless speed disperser, Fastfeed consumes up to 70% less ingredients, instantly eliminating agglomerates energy than conventional tank mixers. that plague today’s processors. Proteins, gums, Fastfeed powder induction and dispersion system.

Importantly, Fastfeed allows operators to batch starches, vitamins, fiber, sweeteners, stabilisers, from the safety of floor level, not elevated platemulsifiers, flavors, and colors are dispersed at rates up to 225 kilograms per forms. Since the Fastfeed easily inducts powders from bulk bags, back minute in a single pass. injuries and dusting from dumping bags into open top tanks are no longer Batch-to-batch inconsistencies are eliminated as powders are introduced issues. at the same rate every time through the Fastfeed hopper. If finished product To see the Fastfeed in action and learn how it improves operations and receives a thermal treatment in a plate heat exchanger, burn-on from product quality, visit www.admix.com/fastfeed.

FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2016

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I MIXING & BLENDING

Silverson Introduces High-Viscosity In-Line Mixer he new Silverson Ultra Sanitary HighT Viscosity In-Line mixer is engineered to process higher viscosity products in the food, pharmaceutical, cosmetic and chemical industries. The HV In-Line is

based on the EHEDG and 3-A Certified UHS series of mixers, which comply with FDA and cGMP guidelines. The difference is the new mixer’s unique pumping rotor design, which substantially increases its flow capacity as well as providing the ability to process higher viscosity mixes.

“The flow rate of the mixer remains high as product viscosity rises,” says Matt Smith, international sales director, Silverson Machines, “this has opened up a whole new range of products to the advantages of Silverson high shear mixers."

Because the HV In-Line maintains its flow rate as product viscosity increases, there is no need for an addi-

tional feed pump when processing higher viscosity products, such as gels and creams.

“Eliminating the requirement for a feed pump is a significant savings for a manufacturer in terms of capital outlay," points out Matt Smith. "It also reduces power requirements, maintenance and cleaning costs too. But one of the biggest advantages is simplicity. Balancing an InLine mixer's flow rate with that of a feed pump can be a compromise; with our new HV In-Line a single machine does the job. It's much simpler and much more efficient." J

Industrial Mixers and Blenders For the Process Industry ased at Bellshill in Scotland, Morton B Mixers & Blenders has been a leading supplier of industrial mixers and blending technology since 1859. The strength of Morton Mixers & Blenders is its commitment to the core business of developing the technology and design to apply to its mixers and blenders to solve customers’ problems.

Morton has gained a reputation for manufacturing equipment of quality and reliability. Whether you mix powders, pastes,

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creams, doughs, batters, slurries, sludges or granules, Morton can supply the mixer or blender designed to match your application. All mixers are manufactured to comply with ISO 9001:2008 Quality Standard.

Morton Mixers & Blenders can also offer a full range of used and reconditioned mixers with units offered at competitive prices.

Morton Mixers & Blenders can offer customers the use of Test Facilities for test work using any of the machine types manufactured such as: Multi-Mixers, Ribbon Blenders, Duplex Mixers (Z-Blades), Gridlaps, Air Pressure Whisks, Batter Whisks and Mixer Granulators.

All aspects of test work are carefully monitored and recorded in order that the customer’s process can be scaled up to the required production machine. As many customer products are new or in development, complete confidentiality is guaran-

teed by Morton Mixers & Blenders.

Where it is essential that test work takes place on the customer’s premises, machines can be supplied for on-site test work with the assistance of Morton Mixers & Blenders’ experienced personnel.

For further information contact Morton Mixers & Blenders, Unit 10, Murray Place Righead Industrial Estate, Bellshill, ML4 3LP, Scotland. Tel +44 (0)845 2770939, Fax +44 (0)845 2770949 or visit www.morton-mixers.co.uk. J

FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2016

I BISCUITS & CONFECTIONERY

Tunnock’s Plans Major Expansion To meet growing domestic and international demands for its products, Tunnock’s, the family-owned Scottish biscuit and confectionery company, is planning to expand its factory at Uddingston in Lanarkshire.

Heritage Tunnock’s was founded in 1890 by Thomas Tunnock after he bought a shop in Uddingston for £80. The company operated as a bakery and flour confectionery business until the 1950s when it began to specialise in the mass production of biscuits and developed its four iconic products – Tunnock’s Caramel Wafers, Snowballs, Caramel Logs and Teacakes.

The company is still family-owned and run. It is currently headed by managing director Boyd Tunnock, grandson of the original founder. Boyd Tunnock’s third grandchild, Stuart, joined the business in 2013.

unnock’s is one of Scotland’s best loved brands and, just like AG Barr’s Irn-Bru drink, Baxters foods and Scottish whisky, has found growing popularity beyond its domestic market.

Indeed, the Tunnock’s range of Caramel Wafers, Snowballs, Caramel Logs and Teacakes, in their distinctive wrappers, is now well known throughout Britain and internationally.

The planned multi-million investment extension is expected to create 30 new jobs to add to the current workforce of 532 people.

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Expansion Programme Tunnock’s is proposing to extend its existing bakery in central Uddingston to the rear, to create 1,900 sq m of additional space over two floors to accommodate new production and improved equipment and to increase production of existing product ranges.

New Technology and Tradition While still adhering to a traditional ethos of producing top quality products, which offer Boyd Tunnock, managing director of Tunnock’s. the consumer value for money, Tunnock’s has not been slow to embrace the latest production technology, such as robotics and automation systems. For example, the company purchased its first robotic system, to pack Caramel Logs, in 1999 and bought its first Teacake robot in 2006. Last year, Tunnock’s replaced its first robot with a new one, which has significantly increased productivity.

The expansion programme is designed to future proof the present factory to accommodate increasing worldwide demand for Tunnock’s products. The additional investment into the existing bakery premises will help safeguard current employment on the site.

Tunnock’s has submitted plans for its proposed expansion project to South Lanarkshire Council. However, the planning process could take in the region of ten months to complete.

The company constantly reinvests in new plant in order to maintain its position at the forefront of the market. Indeed, annual capital expenditure for the last two financial years was over £3.0 million. £50 Million Business For the financial year ended February 2015, Tunnock’s increased annual turnover by 7% to £51.3 million, although operating profit slipped slightly to £5.96 million from £6.48 million in the previous year. Reflecting a £1.4 million one-off gain relating to HM Revenue & Customs’ decision to reclassify Snowballs as not subject to VAT, Tunnock’s reported pre-tax profit of £7.59 million for the year ended February 2015, against £6.48 million for 2014. Sales per employee during the period rose from £98,000 to £108,000.

FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2016

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According to Tunnock’s, the results highlight the strength of the company’s brand reflected in quality products, which reach a worldwide market. Export markets include Canada, the US, Saudi Arabia, Australia and South Africa. Most of its overseas markets are well established, for example, Tunnock’s has been exporting to Canada for over 50 years.

Export sales amounted to £8.1 million in the year ended February 2015, down from £9.1 million in the previous year.

However, Tunnock’s UK sales rose from £38.8 million to £43.2 million during the same period.

Buoyed by growing sales in both domestic and export markets, Tunnock’s has increased turnover from £35 million to over £50 million since 2010.

Development Strategy Tunnock’s development strategy is simple. “Basically, we still have the same product range as we have had for many years,” says Boyd Tunnock. Cheaper products are available but lack the same

quality, which is why Tunnock’s continues to build and retain a loyal customer base.

“It is all about quality and keeping the standard right so that when consumers buy our products they get what they want. You have to keep your customers happy,” he stresses.

New product development has tended to focus on brand extension. For instance, Tunnock’s has introduced a tub containing mini Caramel Wafers, which are ideal for snacking.

The Tunnock’s brand is well supported by TV and radio advertising. The company has also developed a range of merchandise, including mugs, key-rings, teddy bears, oven gloves, umbrellas and clothing, to further strengthen its branding activities.

Similar to Scotch whisky distilleries, Tunnock’s organises tours of its factory, which is a local landmark in Uddingston, to generate revenue and to reinforce brand awareness. The tours are booked out for more than 12 months in advance. The factory is linked to the Tunnock’s tearoom which also attracts visitors. J

I BISCUITS

Mondelez International to Acquire Cadbury Biscuits License From Burton's Biscuit Company ondelez International has agreed to M purchase from Burton's Biscuit Company the license that enables the company to manufacture, market and sell Cadbury-branded biscuits around the world, including in the UK, France, Ireland, North America and Saudi Arabia.

The deal, which will enable Mondelez International to accelerate its biscuit growth in key markets around the world, is subject to regulatory approval.

Burton’s Biscuit Company is a leading branded and own label supplier of biscuits and snacks and is the second largest biscuit supplier in the UK. It owns and bakes market leading brands such as Maryland, Jammie Dodgers and Wagon Wheels, and bakes Cadbury biscuits under licence.

Burton’s has successfully grown the Cadbury biscuit business to become one of

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the leading biscuit brands around the world with strong positions in the UK and Ireland and established and growing businesses in France, North America and the Middle East.

“Ownership of the Cadbury biscuits license offers us exciting opportunities to accelerate global growth and innovation, as we expand our leading position in biscuits, globally and in Europe,” says Hubert Weber, executive vice president and president of Mondelez Europe. “The transaction will help us to unify and expand our global Cadbury biscuits portfolio in key markets and enable us to explore delicious new products by using the best of our chocolate and biscuit innovation platforms.”

Mondelez International and Burton's Biscuit Company have agreed that Cadbury-branded biscuits will continue to be manufactured in Burton's factories under a co-manufacturing agreement. The companies have agreed not to disclose financial terms of the transaction.

The sale will enable Burton’s to implement a transformational growth plan across its core brands and continue to invest in innovation to grow. It will

Hubert Weber, executive vice president and president of Mondelez Europe.

also support Burton’s ambition to be the top manufacturer of premium branded and private label biscuits and snacks and continue to grow its contract manufacturing business.

Headquartered in St Albans and employing over 2,000 people, Burton’s operates manufacturing sites in Blackpool, Edinburgh, Llantarnam, and a chocolate refinery in Moreton. The company was acquired by Ontario Teachers’ Pension Plan in November 2013. J

FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2016

I CASE STUDY

Tunnock’s Expansion Aided By Food IT Experts at Sanderson The administrative burden for any food manufacturer is huge these “days,” says Bruce Reidford of Tunnock’s. He was responsible for choosing the Sanderson food manufacturing IT system, today known as UnityF8, on which Tunnock’s has expanded its business. “We just could not have coped without UnityF8,” he says. “It would have been impossible to manage our expansion into global markets and to manage the regulatory demands.

Sanderson has understood the way we operate, our values and our needs.”

Reidford’s role sees him in charge of administration, finance and IT, and he also has involvement in operational matters within the factory. “Without the support of sophisticated technology like UnityF8, we’d need an army of clerks running around carrying out this work,” he says.

Tunnock’s uses the software to manage every aspect of the organisation, from ordering and receiving raw ingredients, to managing production and sales ledger processing, through to final despatch and distribution.

Meeting the Needs of Customers Tunnock’s customers range from the major supermarkets to independent retailers – this diversity could pose challenges in terms of meeting the needs of customers large and small. However Reidford says “We’re able to balance conflicting requirements very easily with UnityF8. We schedule orders

through the system and attach priority listings to them. This also helps us at the other end of the line, with transport scheduling and loading.”

At goods-in and despatch, Tunnock’s uses radio data terminals (RDTs) which are linked directly to the Sanderson system. All goods are bar-coded and the RDTs enable Tunnock’s to locate both raw materials and finished goods quickly and efficiently. In common with most manufacturers, Tunnock’s is continuously striving to ensure its processes are as effective as possible. A key part of this improvement drive is using UnityF8 ‘s integrated factory floor data capture functionality.

“With increases in costs such as energy and raw materials, we have to know exactly what is happening on the factory floor, where any waste is – both physical and process – and where the best areas are, so that we can learn from that. This is about reducing downtime, reducing costs and raising efficiency. We know we can be more effective by cutting waste, using labour more efficiently and automating certain lines.”

reporting requirements and structures change, but UnityF8 means we can cope with all of that very easily. Sanderson are very responsive and an excellent business partner.”

As a specialist business management system for the food industry – or what you may call a food enterprise resource planning (ERP) system – Sanderson UnityF8 provides control and visibility across the organisation. Its inherent flexibility has proved particularly crucial to Tunnock’s, as the system has been able to grow and expand to help the business drive forward into new international markets.

“I looked at several solutions and I was confident from the start that Sanderson was the best fit for our business,” he recalls.

“UnityF8 is a very effective, reliable and dependable product. But it’s not just about software. We wanted true commitment from an IT supplier to work with us to solve our business problems. That was as important as the software itself. We’ve grown with Sanderson and we’ve been delighted to have them as our business partner.”

For further information contact Sanderson on Tel +44 (0)333 1231400 or visit www.sanderson.com/food. J

New Developments Reidford continues: “The new developments to UnityF8 enhance our capability and ensure that we can remain one step ahead. As the regulatory demands become greater and greater, we have to look at the best way of meeting those. Often the

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I BISCUITS

New €15 Million Biscuit Venture Offers an Alternative Source For Private Label and Branded Products With the final stages of commissioning completed in July, East Cost Bakehouse - Europe’s newest large scale biscuit manufacturer - is ready to commence full production, offering retailers an alternative source for private label and branded products. ncorporating one of the largest biscuit production lines in Europe, the new plant located at Drogheda in County Louth, Ireland, will produce sweet biscuits such as cookies, plain sweet biscuits and chocolate enrobed cookies and biscuits.

The state-of-the-art facility incorporates bulk handling equipment for key ingredients and a single production line of 400m in length and 1.5m in width that encompasses a mixer, dough forming equipment, travelling oven, ambient cooling conveyors, chocolate enrober, cooling tunnel and automatic packing equipment.

The line has the capacity to produce 20,000 tonnes of finished product annually. While output differs by product type, it can typically handle over 10,000 packets of 200g biscuits per hour. Capital expenditure on the supply and installation of the new bakery equipment was Eur7.2 million. Total investment in the project, including acquiring and renovating an existing building, pre-trading costs and range development, is Eur15 million.

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Innovation East Coast Bakehouse’s on-site ‘Innovation Centre’ is now established and is actively working closely with some key target customers on the development of consumer insight based product and format innovations.

“We have received a very warm welcome from our potential retail customers, with active discussions on development of opportunities with most major Irish and UK retailers. We have also engaged with a number of partners in other export markets,” points

The team behind East Coast Bakehouse (left to right): commercial director, Daragh Monahan; chief executive, Michael Carey; marketing & innovation director, Alison Cowzer; operations director, James Yarr; and chief financial officer, Gerry Murphy.

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out Michael Carey, chief executive of East Coast Bakehouse, who is also chairman of Bord Bia (Irish Food Board). “We are now fully operational, and available to supply retailer private label product and as a contract manufacturing facility for branded food businesses.”

Brands Although primarily a retail own label supplier, the company will also build its own brands to aid business development. It has already launched two brands ‘Oh My!’ and ‘East Coast Bakehouse’ into the Irish retail market, with initial deliveries commencing in July.

“Our two branded offerings aim to meet needs in both the economy sector (‘Oh My!’) and at the top end of the mainstream sector (’East Coast Bakehouse’). We believe that these branded positionings provide a real and substantial opportunity to generate profitable revenue,” Michael Carey explains.

He elaborates: “The ‘East Coast Bakehouse’ brand uses real Irish butter as a core ingredient in each of its recipes and is committed to supporting community projects through our Bakers’ Dozen Fund.

By providing these brands we are also demonstrating the scope of our capabilities in terms of biscuit types and formats of our offering to our retail private label and brand partners.”

Management Team East Coast Bakehouse has been established by Michael Carey along with marketing & innovation director, Alison Cowzer; commercial director, Daragh Monahan; operations director, James Yarr; and chief financial officer, Gerry Murphy. They are the same management team that successfully developed the Jacob Fruitfield Food Group before selling the Irish ambient food company for an undisclosed sum in 2011 to Valeo Foods to form a business with com-

FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2016

bined sales of about Eur300 million.

Target Markets East Coast Bakehouse is initially targeting the mature biscuits markets in Ireland and the UK. The Irish market for the types of biscuits East Coast Bakehouse can supply is valued at Eur160 million per annum at retail sales prices, while the UK market is estimated to be worth £3 billion.

Although stable in overall value terms, the two market-places are exhibiting solid growth in the cookies, breakfast, on the go and healthier options sectors as convenience and snacking continue to drive consumer demand.

“At East Coast Bakehouse we are developing products to meet these new exciting sectors,” says Michael Carey. “Consumers continue to seek indulgent treats but are also discerning in terms of how products are produced. Our focus on sourcing better ingredients and our obsession with product quality ensures we deliver on our promise of ‘Baking Better Biscuits’.”

Challenges Irish biscuit manufacturers have struggled in the past to compete with producers from the UK and elsewhere. So what advantages will East Coast Bakehouse have?

“Our advantages lie in the areas of a great manufacturing facility, an experienced team, and an entrepreneurial drive and love of food,” replies Michael Carey. “In the past biscuit manufacturing in Ireland was not competitive due to high costs and old facilities.

This new facility at East Coast Bakehouse in Drogheda uses stateof-the-art biscuit production manufacturing and packing equipment. This start-up is unusual - we have established a full scale manufacturing facility to ensure we can compete on cost with major producers in UK and mainland Europe.”

Michael Carey continues: “We have extensive experience and knowledge of the business sector. All of the leadership team (the promoters) have direct senior management experience in the biscuit sector. Many of the team we have recruited in product development, quality management, manufacturing/operations and marketing have also worked in the past in leading biscuit companies.”

The business has a clear commitment to sustainable sourcing and processing. It has been designed to become a member of Origin Green - Bord Bia’s innovative sustainability programme created to underpin Ireland’s green image abroad.

“Finally, we have the advantage of being a new entrepreneurial business, owned and run by a team who care about the food being produced. We can make speedy decisions - customers deal directly with the owners. We believe that many of the major biscuit businesses have allowed quality to slip. We aim to provide great food, our motto is ‘Baking Better Biscuits’,” says Michael Carey.

Development Strategy The management team’s current focus is on successfully establishing the new facility, launching the brands and commencing supply of agreed private label products to retail customers. The new facility has the capability to produce over Eur30 million in sales value.

“Subject to successful launch of our brands and securing appropriate opportunities to provide retail private label and other contracts, our business plan aims to reach that level of activity within five years,” Michael Carey remarks. “At that point we would employ approximately 100 staff. Current numbers employed are 35.”

Michael Carey adds: “If we successfully secure sufficient volume of new business, funding is available to make further capital investment in additional volume capacity.”

This would entail exploiting future opportunities to widen the product offering following a second investment phase in additional production lines and packing capability – the newly renovated building offers sufficient space for such a second phase of investment.

Opportunities The East Coast Bakehouse chief executive concludes: “Having established in our initial targeted countries, we believe there will be opportunities to extend further into new geographies.

Ultimately East Coast Bakehouse could become a platform for investment into other food sectors, either organically or via acquisitions. But for now we recognize that we are a start-up new business and we have to firstly secure sufficient business in our core sector. All of our attention is currently on that task.”

Commercial Director Daragh Monahan is available for discussions on how East Coast Bakehouse’s new capabilities can be used to satisfy the needs of all potential customers (daragh.monahan@eastcoastbakehouse.com). J

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I GROCERY MARKET

Number of New Product Launches Falls by 13% as UK Grocers Cut Ranges The number of new products being launched by manufacturers into UK retail stores is falling significantly, according to a study of the performance of new grocery products from launch, published by IRI, a leading provider of FMCG market intelligence and predictive, actionable insight.

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s major retailers like Tesco cut their ranges to remove slower selling items, resulting in 1,000 fewer packaged grocery items on shelves (a drop of 6.3%), the study shows that 13% fewer new branded items were launched in 2015 compared with 2013.

IRI’s 2016 New Product study shows a drop in the number of new products launched in both food and non-food categories. The number of new private label items launched also fell, but twice as quickly – by 26%. This trend is continuing into 2016, with the rate of new product innova-

tion falling further.

According to IRI, first year sales of branded NPD contributed just 2% to overall sales in the UK across 2014 and 2015, down from 3% (based on a similar study of new products by IRI in 2011). While NPD is recognised as a key driver in category growth, encouraging consumers to trade up at a premium price, there were less new branded items launched across food and non-food sectors.

Rationalisation “As UK retailers look to rationalise their ranges, new products are finding it harder and harder to get listings. At the same time, however, suppliers are producing fewer new products, largely due to budgetary pressures brought about by massively high trade promotion costs and squeezed margins as mar66

ket prices drop,” comments Tim Eales, author of the study and Director of Strategic Insight at IRI. “We are also seeing new products not being supported by trade promotions as much as they used to be, which is contributing to their price premium having increased and, arguably, negatively impacting rate of sale. Delisting is happening more often and more rapidly under the scenario of more aggressive range management by retailers. All of this culminates in a big drop in the contribution of NPD to overall grocery sales, a serious concern given that it is recognised as the lifeblood of an industry that is struggling to cope with a number of serious challenges.”

He adds: “NPD has the potential to give UK retailers, such as Tesco, Asda, Sainsbury’s, Morrison’s, Co-op and Waitrose, a competitive advantage versus their discounter competitors who have limited SKU ranges, as they offer new news and increased choice to shoppers. The key question our study raises, however, is whether manufacturers and retailers can find a way to collaborate andchampion the right innovative NPD, whilst managing range reduction agendas. If they get this right, NPD can continue to be a differentiator for all parties.”

multiple retailers. On average, the maximum distribution achieved by new products in multiple retailers in the latest study was 44%, 5 points lower than when IRI measured it in 2010/11. It was 3 points lower for food products and 9 points lower for non-food products.

Tim Eales: “Achieving good distribution is essential to maximise sales of new products, but this is getting harder and harder to do. To be successful with new product development, manufacturers will often aim for 75% distribution within 12 weeks. In fact, what we’re actually seeing is that only 1 in 20 new launches achieve this target in multiple retailers, and only 1 in 7 ever achieves that level of distribution at any point in their life. It seems that as retailers concentrate on reducing range, it has become more difficult to grow distribution for new products.” J

Achieving Distribution IRI’s study also shows that new products are finding it harder to achieve distribution in

FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2016

I FLAVOURING

€2 Billion European Flavouring Market is Full of Opportunities Valued in excess of €2 billion, the European flavouring market has been stable for the past five years, but demand is expected to grow in the future. f course, the flavour industry is a key O supplier to the European food industry, since a large proportion of processed food products contain flavourings.

“It’s a business full of opportunities, always expanding and on the lookout for what’s next. The industry at large invests approximately 10% of its turnover in R&D and innovation,” points out Jean Robello, President of the European Flavour Association (EFFA) and Vice President of Flavours in Southern Europe for Firmenich.

EFFA is the European umbrella of the flavour industry and comprises many SMEs and leading international companies in the EU. It has 21 members - the nine largest flavour companies in Europe and 12 national associations. They represent the flavour companies in their countries, including small and medium business (there are approximately 300 flavour SMEs in Europe).

Jean Robello continues: “The European flavour industry is constantly investing in R&D to provide consumers with healthier and tastier food and beverage products. The industry has also developed a broad range of natural and sustainable flavouring solutions

to sustain market and consumer trends.

Many of those key developments were made in close collaboration with food and beverage companies.”

Regulation Since 2011, the industry works within a new legal regulatory framework within the EU, which established a positive list of flavourings. Only flavourings included in the positive list can be used. EFFA welcomed the review and update of the flavourings legislation and has drafted a Guidance Document (available at www.effa.eu/library/guidancedocuments) summarising the major changes introduced in the new Regulation.

The high level of investment in R&D has allowed EFFA members to respond to changing consumer demands.

Consumer Demands “One of the key trends is the desire for health and wellness and for products that have reduced levels of fat, sugar and salt,” he explains. “Flavourings enable consumers to enjoy these kinds of products without compromising on taste, contributing to healthier and more balanced eating habits,” he

The European Flavour Association (EFFA) team (left to right): Jean Robello, President of the EFFA; Jimena Gomez de la Flor, Communications director; and Jan Demyttenaere, Director of Scientific and Regulatory affairs.

explains.

He elaborates: “Consumers are also concerned about sustainability, which is also a priority for the flavour industry. Our companies are running ongoing sustainable sourcing initiatives, are looking for new raw materials from renewable sources, and are working on increasing efficiency within their supply chains.”

The European flavour industry is very diverse, with global players and SMEs, and has a very long history of being innovationdriven. “It is also an industry that provides pleasure, so it is connected with emotions and memories. Last but not least, it’s a very responsible industry, with a strong regulatory background and a reputation of scientific excellence,” says Jean Robello.

More Communication Because it operates on a business to business basis, the European flavour industry sees big potential in successfully communicating the benefits of flavourings and the added value of its products to the end consumers.

“There is a lack of knowledge among the general public of what flavourings are. We have to communicate better by explaining the important role of flavourings in the food chain and how they benefit consumers which is by providing pleasure to their food experience,” he comments.

EFFA has made communication a key strategic objective. Jean Robello adds: “We have just launched a new website that we invite you to discover at www.effa.eu, and we are coordinating our efforts at national, regional and global level to successfully tell the flavouring story, which is a fascinating one.”

With the demand for flavourings expected to increase during the next five years, the industry is well placed to meet the challenges ahead. “As it is a very innovative industry, I see it continuing to provide solutions for the different consumer demands sustainability, healthy eating, pleasure, etc,” concludes the EFFA President. J

FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2016

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Sensient Flavors Introduces Natural ‘Nut Free’ Nut Flavours ensient Flavors has introduced its new S ‘nut free’ nut flavour product range Almond, Hazelnut, Peanut, Pistachio and Walnut. What is different about these versatile new flavours is that they are not only natural but completely free from any nut components and deliver truly authentic taste profiles.

This combination is bang on trend with current market demands - Almond and Hazelnut are among the top 10 flavours across a huge range of food products. At the same time, according to Mintel, ‘allergen free’ is one of the top claims among food products, featuring on more than 14 per cent of global product launches.

Forecasts estimate that in the UK alone, the more specific ‘free from nuts’ claim will experience 50 per cent growth by 2019.

Organisations like European Federation of Allergy (EFA) are also advocating for the needs of people with allergies.

The novel line has come to life at Sensient’s Milton Keynes, UK, subsidiary.

Nut flavours are characterised by their great compatibility with other flavours and, as such, they are a vital component of a wide array of products within the dairy, bakery and confectionery segments. As well as being Clean Label, it allows manufacturers to use ‘allergen free’ claims on product packaging. Using these flavours eliminates contamination on industrial lines and saves on cleaning down time. Cost-efficiency is

another advantage: In contrast to potential harvest-related scarcities of raw materials, Sensient’s flavours are available all year round. Standardised quality and price is assured and most of the flavours are efficient at low dosages.

Sensient’s skill lies in its ability to create authentic flavour profiles. Its new Almond flavour, for example, provides the profile of blanched, raw almonds with a nutty and creamy characteristic. The Walnut version, meanwhile, has nutty, earthy notes with roasted nuances. J

Frutarom Buys Redbrook of Ireland For €40 Million rutarom Industries, one of the world's F 10 largest companies in the field of flavours and specialty fine ingredients, is continuing its momentum of acquisitions and the implementation of its rapid and profitable growth strategy. The company has agreed to purchase 100% of the shares of the Irish company Redbrook Ingredients Services for approximately US$44.8 million (Eur40 million). The purchase agreement includes a mechanism for an additional consideration based on Redbrook’s future business performance. The transaction was financed through bank debt.

Redbrook was founded in 1987 and has an R&D and sales and marketing centre and an efficient production site near Dublin, Ireland as well as a production unit and R&D and sales and marketing centre in Daventry, England, near Frutarom’s site at Wellingborough, England. Redbrook has 39 employees. Redbrook’s main activity is the development, production and market68

ing of innovative specialty savoury taste solutions, which includes seasoning and functional blends, marinades, glazes, cures and specialty ingredients for food processors.

The global market for savoury flavours is growing due to the rise in standard of living and changes in lifestyle and consumer habits bringing about increased demand for

processed and convenience foods both for home consumption and for eating out.

Frutarom considers the field of savoury flavours an important growth engine for itself and about 10 years ago embarked on a strategic course of action to significantly build up its global savoury activity by acquiring leading companies in their fields possessing unique solutions and a strong position in strategic target markets.

Among the companies and activities acquired are: Nesse, Gewürzmüller and the savoury activity of Chr. Hansen in Germany (in 2006, 2007 and 2009 respectively); EAFI in the UK, the savoury activities of Rieber in Norway, US-based FSI and the savoury activities of Chr. Hansen in Italy in 2011; Savoury Flavours in the UK and ETOL in 2012; JannDeRee in South Africa and PTI in Russia in 2013; FoodBlenders in the UK and BSA of Canada, with activity also in India, in 2015; and AMCO in Poland and Wiberg of Austria in 2016. J

FOOD & DRINK BUSINESS EUROPE, AUGUST/SEPTEMBER 2016