Food and Drink Business Europe

October 2012

Kerry Group to invest â‚Ź100 million in Global Technology & Innovation Centre in Ireland

Food & Drink Business Website:

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C o n t e n t s

- 2 M ERGERS & A CQUISITIONS

- 41-43 S AVOURY S NACKS

Coverage of British and international deals.

Intersnack Group plots UK expansion.

Innovation is key ingredient at Largo Foods.

- 5 C OVER S TORY Kerry Group to invest €100 million in Global Technology & Innovation Centre in Ireland.

PAGE 2 Michael Clarke, ceo, Premier Foods.

- 9-16 B AKERY Rising costs squeeze bakers’ margins.

- 55 B EVERAGES European fruit juice industry feels the squeeze.

R EGULARS

Top 100 bakery manufacturers in Western Europe.

Processing & Manufacturing . 11, 16, 45-47, 53, 56

Aryzta is a global leader in specialty bakery.

Materials & Ingredients . . . . . . . . . . . . . 31-33 PAGE 2 Stephen Glancey, ceo, C&C Group.

Finsbury Food Group becomes £200 turnover business.

P AGE 19 Paul Walsh, ceo, Diageo.

PAGE 21 Donal Dennehy, operations director, Danone Baby Nutrition.

Bottling & Packaging. . . . . . . . . . . . . . 36-39 Control & Automation. . . . . . . . . . . . . . . . 44

- 17 S EAFOOD

Quality & Safety . . . . . . . . . . . . . . . . . 48-52

Seafood industry striving to swim upstream.

Logistics & Distribution . . . . . . . . . . . . . . 56

PAGE 55 Andrew Biles, President, European Fruit Juice Association.

- 19 A LCOHOLIC B EVERAGES Diageo exercises brands strength.

Managing Director: Colin Murphy Editor: Mike Rohan Sales Director: Ronan McGlade Advertising: Susan Doyle, Neela Desai, Mark Davies and Sylvia McCarthy

- 21-25 B ABY N UTRITION

PAGE 5 Stan McCarthy, ceo, Kerry Group.

Danone invests €70 million in Irish baby food plants.

. Senior Sales Executive: Paul Lees Production Manager: Susan Doyle

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Irish baby food production continues to grow.

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- 27 B EVERAGES Halewood International plans to double.

- 35 F OCUS ON I RELAND ‘Origin Green’ goes global.

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PAGE 15 Owen Killian, ceo, Aryzta.

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FOOD & DRINK BUSINESS EUROPE, OCTOBER 2012

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M E E R R G G E E R R S S M More Disposals by Premier Foods Premier Foods has agreed to sell its sweet pickles and table sauces business to Mizkan of Japan for £92.5 million. Once the disposal is completed, Premier will have delivered around £370 million in disposal proceeds since March 2012, significantly exceeding the £330 million target it committed to achieve by June 2014 as part of its new financing arrangements.

The disposal of the sweet pickles and table sauces business includes Branston sweet pickle, ketchup, relish, salad cream and mayonnaise, together with the company's Bury St Edmunds factory in Suffolk. Mizkan is one of the leading vinegar manufacturers in the world with operations in Japan, the US, the UK and other Asian countries.

Meanwhile, Premier Foods has completed the disposal of its sweet spreads and jellies business to Hain Celestial. Premier Foods has received a cash payment of £170 million and will receive shares in Hain Celestial worth at least £30 million to make an aggregate consideration of £200 million.

Michael Clarke, chief executive of Premier Foods.

PepsiCo and Suntory to Form New Strategic Beverage Alliance PepsiCo and Suntory of Japan have agreed to form a strategic alliance in Vietnam. Suntory will acquire a 51% stake in PepsiCo's Vietnam beverage business, while PepsiCo will retain a 49% shareholding. The new alliance is expected to build on PepsiCo’s existing position in Vietnam and to create new 2

& &

A C C Q Q U U II S S II T T II O O N N S S A

growth opportunities for PepsiCo and Suntory in the market. PepsiCo and Suntory have an established record of successfully working together in other beverage markets, including the US, Japan and New Zealand.

C&C Group to Acquire US Cider Marker For $305 Million C&C Group, the Irish and UK branded cider and beer producer, is acquiring the Vermont

Stephen Glancey, chief executive of C&C Group

Hard Cider Company, an independent, premium, craft cider company in the US, for $305 million (Eur233 million).

VTHCC owns a leading US cider brand, Woodchuck, a well-invested cidery in Vermont and a national distribution platform. The acquisition will accelerates C&C’s growth prospects, increasing its exposure to the high growth US cider category, which grew approximately 60% in the first six months of 2012.

Stephen Glancey, chief executive of C&C Group, says: “This transaction transforms our international cider business and accelerates our growth prospects. We intend to invest in the company to capitalise on the growth opportunities presented by this business.”

C&C has exported its Magners cider brand into the US for over a decade. In 2011, C&C acquired the Hornsby’s brand, on the US West Coast, as a first step in building a presence in domestic US cider.

Glanbia Enters into a New Dairy Processing Joint Venture With Co-operative Owners Glanbia, the global nutritional

solutions and cheese group, has signed contracts with its majority shareholder, Glanbia Cooperative Society, to enter into a joint venture in respect of Dairy Ingredients Ireland. Dairy Ingredients Ireland (DII) is a business unit of the Dairy Ireland division of Glanbia, including its 45% share of the Corman Miloko Ireland JV and its 23% shareholding in the Irish Dairy Board. Under the proposed transaction, the new joint venture, to be known as Glanbia Ingredients Ireland (GII) will be 60% owned by Glanbia Co-operative Society and 40% owned by Glanbia.

The existing DII business is the largest dairy ingredients processor in Ireland, assembling a milk pool of 1.6 billion litres and processing it into about 180,000 tonnes of dairy ingredients largely for export to over 50 countries worldwide. In 2011, DII generated revenue of Eur738 million and EBITDA of Eur44 million.

Emmi Acquires Stake in German Organic Dairy Company Swiss dairy group Emmi, through its organic products subsidiary Molkerei Bieder-

mann, is entering into a strategic partnership with German organic dairy Glaserne Molkerei, by acquiring a 24% stake in the company. Glaserne Molkerei is a leading organic milk processor in Northeast Germany, with a premium range of milk, cheese, yogurt and other dairy products. This partnership will significantly increase Emmi's expertise in the

FOOD & DRINK BUSINESS EUROPE, OCTOBER 2012

area of organic products.

Zetar Being Sold to Zertus Zetar, the UK-based confectionery and natural snacks manufacturer, is being acquired for £42.7 million by Zertus Group, a leading group of specialty food companies headquartered in Hamburg, Germany. Floated on AIM in 2005, Zetar focuses on supplying private label and character licence products to UK retailers as well as export customers particularly in Australia and France.

For the financial year ended 30 April 2012, Zetar reported annual revenues of £128.3 million (2011: £135.0 million) and adjusted profit before tax of £5.5 million (2011: £6.7 million).

McCain Foods Acquiring PinguinLutosa’s Potato Division McCain Foods is purchasing PinguinLutosa Food Group’s Lutosa potato division, which has an enterprise value of Eur225 million and encompasses Lutosa’s operations in production, marketing and distribution of frozen, chilled and dehydrated potato products, as well as the Lutosa brand. The terms of transaction were not disclosed.

Jean Bernou, chief executive of McCain Continental Europe, comments: “This acquisition is in line with our strategy of reinforcing our core potato business in Europe. The products and brand positioning of Lutosa and McCain are highly complementary. Lutosa will help us to further expand our product offering and cater to a wider range of customers.”

COVER STORY

Kerry Group to Invest €100 Million in Global Technology & Innovation Centre in Ireland Kerry Group, the global ingredients, flavours and consumer foods business, is to establish an industry-leading Global Technology & Innovation Centre in Ireland to serve the group’s customers.

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isted on both the Irish and based ingredients and taste soluLondon Stock Exchanges, tions and pharma, nutritional and Kerry Group is Ireland’s functional ingredients for food, largest agri food company. beverage and pharmaceutical marIt operates 150 manufacturing kets. sites and sells its products in 140 Kerry is the leader in the develcountries worldwide. Headquartopment of a new sector of the ered in Tralee, County Kerry, the supply chain - supplying cusgroup employs over 24,000 peotomised Ingredient and flavour ple throughout its manufactursystems that provide marketers ing, sales, technology and appliwith components that speed cation centres across Europe, product development and reduce North America, South America, manufacturing investment.

Australia, New Zealand and Asia.

Kerry’s pre-eminence stems Kerry’s ingredients and from its core technological flavours business accounts for strengths in savoury ingredients, 69% of group annual revenue of Stan McCarthy, chief executive of Kerry Group, pictured with Taoiseach Enda sweet ingredients, food coating Eur5.3 billion and 77% of trad- Kenny at the announcement of Kerry’s decision to establish an industry-leading systems, nutritional systems and ing profit. The balance is con- Global Technology & Innovation Centre in Ireland. speciality protein applications. tributed by Kerry’s consumer foods business, which supplies added value chilled foods across Commitment to R&D Ireland and Great Britain in both the branded and private label sec- Kerry’s success has been built on a total commitment to ongoing tors. The consumer foods portfolio includes category leading technological innovation in all sectors of its business, providing brands such as Wall's, Mattessons, Richmond, Pure, Denny, integrated customer-focused product development. The group Galtee, Roscrea, Shaws, Ballyfree, Cheestrings, Char-leville, invests heavily in highly focused research, development and appliMitchelstown, LowLow and Dairy-gold. cation centres of excellence. This gives Global Leader Kerry a ‘technological Kerry is the largest edge’ in its chosen player in the $50 bil- sectors, allowing it to lion global ingredi- proactively meet cusents and flavours mar- tomer and market ket. The market is needs. growing but is highly Kerry boasts the broadest range of technologies and capabilities fragmented and Kerry within the food and beverage ingredients and flav-ours market. is seeking to take Dealing with Kerry enables customers to work with a company that advantage of the pot- understands their needs, can propose value enhancing solutions, ential for consolida- and can do it quickly. It is a potential ‘one stop shop’ for custion and to benefit tomers. from being a player of 'One Kerry' Approach scale.

Kerry’s ingredients The ingredients and flavours developer has adopted a 'One Kerry' and flavours division approach to provide unique benefits to food and beverage manudevelops, manufactur- facturers. 'One Kerry' unites all of Kerry's international ingrediers and delivers inno- ents, bio-science, sweet, fruit and flavours capabilities. This proKerry aims to deliver customer-focused innovation. vative technologyvides Kerry's customers with a single point of access to the compaFOOD & DRINK BUSINESS EUROPE, OCTOBER 2012

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ny's industry-leading market applications expertise and broad technology base. One Kerry aims to deliver customer-focused innovation.

The One Kerry strategy seeks to align the global Kerry organisation internally to efficiently deliver ‘One Face to the Customer’ externally. The One Kerry business model is designed to enable functional excellence across a diverse portfolio of technologies, end use markets and geographies, while also accommodating the efficient integration of new acquisitions.

The One Kerry approach provides customers with access to unique consumer and market insights, development expertise, application and pilot proficiency, plus sensory and analytical capabilities. Kerry’s Eur100 million investment in establishing a Global Technology & Innovation Centre in Ireland is in line with its emphasis on R&D, technological excellence and a customer-focused approach.

established expertise in food science and its existing research, development and technology infrastructure. The close proximity of the Naas location to Dublin Airport will provide Kerry’s global and regional customers with good transport links when visiting the Global Technology & Innovation Centre.

According to Taoiseach (Irish Prime Minister) Enda Kenny: “The decision by Kerry Group, with the support of the Irish Government, to establish this ground breaking facility in Ireland will bolster our strong reputation as a globally renowned country for food production and innovation.”

Construction of the new facility will commence in early 2013 once planning is complete.

Evolution From the commissioning of its first manufacturing plant in Listowel in 1972, Kerry has grown at an astounding rate. In its first year the fledgling business processed 16 million gallons of €100 Million Investment skim milk to produce 2,000 tonnes of Located on a 28 acre site at Naas in casein with a workforce of about 40 peoCounty Kildare, the new flagship global Kerry’s consumer foods portfolio includes category leading ple and reported profits of Eur127,000 technology and customer innovation brands such as Wall's, Mattessons, Richmond, Pure, Denny, on a turnover of Eur1.3 million. Kerry centre will serve as a key focal point for Galtee, Roscrea, Shaws, Ballyfree and Cheestrings. was launched as a public company in Kerry’s customer engagement activities 1986, and its market capitalisation has providing strategic customers with access to the group’s complete now grown to approximately Eur7 billion. breadth and depth of technologies, scientific research, innovation Kerry has expanded through a combination of organic growth and applications expertise across food, beverage and pharmaceuti- and acquisitions to establish a global processing and technical cal markets. network with an ingredients portfolio extending to some 15,000 products offered to food processor, food service and beverage markets.

For instance, late last year Kerry completed the $230 million acquisition of Cargill’s global flavours business. The acquisition of Cargill Flavor Systems, which has annual sales of about $200 million, has strengthened Kerry’s capability to provide integrated customer solutions across all food and beverage end-use-markets and extended the group’s market spread in emerging markets.

Kerry also recently expanded its sweet ingredients and flavours Kerry recently expanded its sweet ingredients and flavours business with the business in the EMEA region with the acquisition of SuCrest, a acquisition of SuCrest, a leading provider of sweet ingredients to the bakery, leading provider of sweet ingredients to the bakery, ice-cream, ice-cream, confectionery, cereal and snack sectors in European markets. confectionery, cereal and snack sectors in European markets. J Kerry Group will invest Eur100 million in the new campus, which will accommodate 800 people in 2015 and a further 100 positions when fully commissioned by mid-2016. The new Kerry Global Technology & Innovation Centre will also include Kerry Ingredients & Flavours EMEA (Europe, Middle East and Africa) regional management, One Kerry Global Business Services and support functions.

Stan McCarthy, chief executive of Kerry Group, comments: “The establishment of this new global technology and innovation centre is consistent with the group’s One Kerry Strategy for Sustainable Growth, providing our customers with access to Kerry’s total technical and innovation capability to optimise product differentiation in the marketplace and provide unrivalled speed to market. Working in tandem with the group’s existing technology and innovation facilities, the new centre will focus groupwide capability to drive strategic customer engagement and sustainable growth.”

Other potential sites in Europe with easy access to an international airport were considered for the new Global Technology & Innovation Centre, but Kerry chose Ireland because of its long

Kerry invests heavily in highly focused research, development and application centres of excellence.

FOOD & DRINK BUSINESS EUROPE, OCTOBER 2012

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I BAKERY

Rising Costs Squeeze Bakers’ Margins Bakers in the UK and throughout Western Europe are facing continued pressure on profit margins due to rising raw material costs, which are difficult to pass on to consumers within the highly price sensitive retail environment. anufacturers are also challenged by having to constantly develop new, healthy and interesting bakery products to excite consumer interest and spur growth in what is a mature market.

In the UK, household expenditure on the bread and bakery products increased by 7.6% to £4.74 billion last year but the growth was driven not by increased consumption but by escalating input costs, according to ‘Bread & Bakery Products 2012’, a new report published by Key Note. Similarly, rising input costs are also partly responsible for growth within the UK biscuits and cakes market, which grew by 4.5% to £3.26 billion in 2011.

Key Note projects that UK household expenditure on bread and bakery products will continue to rise over the next five years to reach £5.61 billion by 2016, driven by the price of wheat, and the demand for speciality breads, foreign bakery goods and healthier options (especially gluten-free products), as well as partbaked bread. However, Key Note expects manufacturers’ value and volume sales to remain squeezed by intense competition, promotional activity and rising input costs.

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According to Key Note, 2012 will be a good year for the biscuits and cake industry in the UK as demand is being fuelled by consumer indulgence, encouraged by manufacturers continuing to introduce different packaging and product formats for all occasions although these are increasingly being price-marked. These tactics will maintain consumer interest in the UK biscuits and cake market, which Key Note predicts will be worth approximately £4.78 billion by 2016.

Continental Europe The UK is the fourth largest bakery market in Western Europe. Germany is the largest bakery market in the region, accounting for 25% of total sales, followed by France and Italy, both on 14%.

The bakery market in Western Europe is worth over Eur90 billion but the industry remains relatively fragmented and localised compared to other food sectors. About 28% of the bakery market in Western Europe is still controlled by small scale artisanal producers (baking their own-products for own sale), compared to the UK where the share held by craft bakers is only about 3%.

According to international food and drink consultancy Food For Thought, the top ten Western European bakery manufacturers account for 23% of the market, while the top twenty companies hold 31% (see Table on page 10).

Leading Players With a market share of 8.5% and annual sales of over Eur4 billion, Italian group Barilla is the leading baker in Western Europe. In addition to being the world’s largest pasta manufacturer, Barilla is also the biggest bread producer in Europe and the number one in Italy in bakery products.

Biscuit manufacturers Mondelez International (formerly Kraft Foods), United Biscuits (owned by the Finalrealm consortium) and Bahlsen are respectively the second, third and fourth ranked players within the Western European bakery market.

FOOD & DRINK BUSINESS EUROPE, OCTOBER 2012

Bahlsen is the market leader in biscuits and cakes in Germany. The largest family-run biscuit business in the world, Bahlsen operates from six sites across Europe.

United Biscuits has recently been divided into two businesses – one centred on biscuits and the other on bagged snacks - prior to a sale. Biscuits, including the McVitie’s, Go ahead! and Jacob’s brands, account for about 75% of United Biscuits’ group sales of £1.33 billion. UB operates manufacturing facilities in the UK, Belgium, France and the Netherlands.

United Biscuits is one of four UK-based groups to feature in the top ten. Bread and bakery products manufacturers Premier Foods (with its flagship Hovis brand), Warburtons and ABF (Allied Bakeries) are the other three. However, Premier Foods’ bread business, Warburtons and Allied Bakeries only have a manufacturing presence in the UK and, due to the short shelf life of fresh bread and bakery products, have only limited export sales.

Premier Foods is currently seeking potential buyers for its Hovis bread division, which is facing declining margins due to higher input prices.

Eighth ranked Lantmannen Unibake is a truly international baker employing 3,000 people in 18 countries. Specialising in frozen and fresh bakery products for both the food service and retail markets, the Swedish owned group operates 24 bakeries across Denmark, Sweden, Norway, Finland, Poland, Belgium, Germany, Russia, the UK, Hungary and the USA. Lantmannen Unibake had sales of Eur780 million in 2011 and produced 400,000 tonnes of bakery products. J

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I BAKERY

Top 100 Bakery Manufacturers in Western Europe, 2011 Company Ultimate Holding Company Ranking

1.

2.

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11.

12.

13.

14.

15.

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18.

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21.

22.

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27.

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31.

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36.

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50.

Barilla Mondelez International Finalrealm Bahlsen Süßwaren Premier Foods Warburton's Lantmännen ABF Ostendorf Sara Lee Colussi Orkla Apax Partners Nestlé Lion Capital Danone Pågens Coppen. & Wiese Fazer Konfektyr Harry–Brot Saveurs de France Lotus Bakeries Vision Capital Kuchenmeister Migros Lambertz Finedon Mills Berkshire Partners Arla Foods Duke Street CNP Griesson Oetker Rugensberger Kohberg Ferrero Brioche Pasquier Greggs DCI Laihian Mallas Heinz Aryzta Vicenzi Bake Five General Mills Permira Limagrain Coop Schweiz Artal Pasquale

Market Shares † West Europe Cumulative

8.54% 3.21% 1.96% 1.83% 1.81% 1.28% 1.24% 1.17% 1.15% 1.03% 0.97% 0.91% 0.86% 0.82% 0.82% 0.80% 0.73% 0.73% 0.71% 0.60% 0.59% 0.57% 0.56% 0.56% 0.55% 0.55% 0.48% 0.47% 0.47% 0.47% 0.47% 0.45% 0.42% 0.41% 0.39% 0.39% 0.35% 0.34% 0.34% 0.31% 0.30% 0.29% 0.29% 0.27% 0.27% 0.26% 0.25% 0.25% 0.24% 0.23%

8.54% 11.75% 13.71% 15.55% 17.36% 18.64% 19.87% 21.05% 22.20% 23.23% 24.20% 25.11% 25.98% 26.80% 27.62% 28.42% 29.16% 29.89% 30.60% 31.20% 31.79% 32.36% 32.92% 33.48% 34.03% 34.58% 35.06% 35.54% 36.01% 36.48% 36.94% 37.39% 37.82% 38.23% 38.62% 39.02% 39.37% 39.71% 40.05% 40.36% 40.66% 40.95% 41.25% 41.52% 41.79% 42.05% 42.30% 42.55% 42.79% 43.02%

Company Ultimate Holding Company Ranking

51.

52.

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62.

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83 84.

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100.

NPM Capital Loacker Del Carlo Erlenbacher Bonne Bouche Mars Sammontana Parmalat Edeka Minden Axa Northern Foods McCambridge Albro Norac Euricom Van Hove GEP Brennans Bakeries VK Mühlen Heberer Frischback Grupo Novelli Wollbacher Kronenbrot Fage Gramss Steinecke Biscuits Bouvard Panasa Klemme Citterio Delicato Bakverk Kambly Hügli Vivartia East Balt TMT Finance Europastry Manner Goûters Magiques Greencore Memory Lane Dulcesa La Lorraine Champagne Céréales Industri Kapital Bakkavör Nutrexpa Country Style Børset Bakeri

* Media, especially mergers & acquisitions, continuously monitored and verified; weighted averages based on 2010 market data. † Artisanal producers such as bakers (i.e. own produced for own sale) account for 28.4% of the market and are not included.

Source: Food for Thought (FFT)

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FOOD & DRINK BUSINESS EUROPE, OCTOBER 2012

Market Shares † West Europe Cumulative

0.22% 0.22% 0.21% 0.20% 0.20% 0.20% 0.20% 0.19% 0.19% 0.19% 0.19% 0.18% 0.18% 0.18% 0.18% 0.17% 0.17% 0.16% 0.16% 0.16% 0.16% 0.16% 0.16% 0.16% 0.16% 0.15% 0.15% 0.15% 0.15% 0.14% 0.14% 0.14% 0.14% 0.14% 0.13% 0.13% 0.13% 0.13% 0.13% 0.13% 0.13% 0.13% 0.13% 0.13% 0.12% 0.12% 0.12% 0.12% 0.11% 0.11%

43.24% 43.46% 43.67% 43.88% 44.08% 44.28% 44.49% 44.68% 44.87% 45.06% 45.24% 45.43% 45.60% 45.78% 45.96% 46.13% 46.30% 46.47% 46.63% 46.79% 46.95% 47.11% 47.27% 47.43% 47.58% 47.74% 47.89% 48.04% 48.19% 48.34% 48.48% 48.62% 48.76% 48.90% 49.04% 49.17% 49.30% 49.43% 49.56% 49.69% 49.82% 49.95% 50.07% 50.20% 50.32% 50.44% 50.56% 50.67% 50.79% 50.90%

I BAKERY

WP BAKERYGROUP – Think Process!

Since 1877, companies of the WP BAKERYGROUP have had a major influence on the development of bakery technology. oday they cover the complete process T chain from dough production to the forwarding of packing lines. They additionally offer services such as engineering, complete solutions for different retail environments or integrated energy management for bakeries.

A Group of Specialists

Under the umbrella of the W&P brand, ten companies form the WP BAKERYGROUP.

production of any kind of bread. The employees of the Dutch company are experts for bread lines and give competent advice to every requirement.

WP Industrial Bakery Technologies consult, deliver and support industrial projects around the world, from the first

innovations, such as the WP hygiene concept CleanTec or the standardized control philosophy SmartControl.

New fields of operation have also been established, such as the new energy provider WP Green or WP Food, the product segment for new impulses in front baking.

At the iba expo 2012 in Munich, Germany, the newest innovations and developments were presented at the WP BAKERYGROUP iba stand. Those who were not able to visit can experience all the excitement and action again at the special WP iba website: www.wpiba.com. Also, more interviews and videos are available at the WP YouTube channel: www.youtube. com/thewpbakerygroup. J

WP Kemper Evolution line: Due to the patented stamping system, donuts can be produced with up to 30% less scrap dough compared to conventional production systems.

Many of the subsidiaries are market leaders in their area for more than a century. Due to its specialization, the group has several areas of competence, such as for bread, rolls and ovens. Traditionally, every subsidiary has its own focus: WP Kemper is the expert in the area of dough dosing and mixing, as well as production lines for rustic, round and fat baked products.

WP Bakery Technologies sets the standard in the manufacturing of ovens and instore ovens. Also artisan roll lines belong to the competence of this traditional company.

WP Haton is the right contact for the

sketch to the production ready set up.

Think Process

The highest quality in the baking process comes from the perfect process chain.

With its “think process” strategy, the WP BAKERYGROUP pursues this goal.

With the capabilities of the individual subsidiaries, all steps in the bakery production can be implemented. The work flow through all production steps can be connected.

The result is a technique which suits perfectly – for artisan bakers as well as for industrial bakeries. The “think process” strategy also results in joint FOOD & DRINK BUSINESS EUROPE, OCTOBER 2012

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“Sanderson food business software has supported Finsbury Food Group’s success for over 15 years”

Mobile and ‘Cloud’ Business Software Now Available From Sanderson oday manufacturers need business software which easily manT ages their rapidly evolving operations. This is presenting ample opportunities for Sanderson, the specialist UK provider of food and drink business software and IT services. Here Steve Fisher, Sales Director of Sanderson Food & Drink, explains how new Mobile and ‘Cloud’ business solutions are offering businesses greater possibilities.

For over 30 years Sanderson has been providing software solutions which enable food and drink companies to automate their business processes. Whilst Sanderson typically supplies companies with a turnover over £10m, for today’s increasing number of small companies it can now offer a low cost entrylevel system via the ‘Cloud’.

“For smaller companies, one of our latest options is our Software as a Service (SaaS) or ‘Cloud’ offering. This makes our business software available over the internet using just a PC or laptop. So one advantage for the customer is that no extra IT hardware is needed on their premises,” says Steve Fisher.

“Freeing them from responsibility for the IT administration side allows them to instead concentrate all their time and effort purely on their primary business, the area in which they excel.”

“Different sized companies have different business needs, so we continually add new functionality to our products and services. For example, over the next 12 months we are extending our range of ‘Mobile Solutions’. We already have mobile solutions underway for the sales team, plus management information and HACCP recording within the factory, running on tablets, iPhones and other smartphones,” explains Steve Fisher.

“We’re principally helping companies that want to move to the next level in their development by improving their efficiencies in order to support their growth.” With its modular system, Sanderson customers “can buy certain core modules and choose to add others individually - whether it’s New Product Development, Quality Control and Checklists, or Recipe Management to achieve two-way traceability,” adds Steve Fisher. “This is a key difference between our offerings and many others in the market. Our integrated approach provides a comprehensive suite of proven services that can be mixed and matched to deliver the best possible business solution for the customer.”

To find out more about Sanderson food and drink business software call 0333 1231400, email info@sanderson.com or visit www.sanderson.com/food. J

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FOOD & DRINK BUSINESS EUROPE, OCTOBER 2012

I BAKERY

Finsbury Food Group Becomes £200 Turnover Business Finsbury Food Group, through its Memory Lane Cakes business, ranks 92nd in the league table of Europe’s top 100 bakers. insbury Food Group is the second largest player in the £914 million ambient packaged cake market (excluding in-store bakery) in the UK. The group is also the market leader in the supply of gluten free baked goods to the UK's multiple grocers.

The group’s speciality cakes and breads portfolio is well balanced between branded and retailer own-label products. Retailer own label accounts for about 58% of revenue with the remainder generated by licensed brands controlled by Finsbury Food Group, including WeightWatchers, Disney, Nestle and Thorntons. Finsbury Food Group has also developed a growing export trade, generating about 14% of its sales from continental Europe.

range of speciality bread products to UK retailers. Based in Hull and employing around 90 people, Livwell continues to deliver new products into the free from market.

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John Duffy, chief executive of Finsbury Food Group.

Efficiency Improvement Like other bakers, Finsbury Food Group faces rising input price inflation, which is impacting adversely on operating margins, coupled with weak spending by consumers.

Finsbury Food Group is continuing to focus on internal efficiencies and productivity initiatives to lessen the impact of rising commodity prices on consumers and to keep its products affordable.

“Restructuring measures in recent years have generated exceptional cost savings across the business. Over the last 12 months, with such savings primarily

Cake Business Memory Lane Cakes along with Scottish company Lightbody of Hamilton comprise £200 Million Turnover Barrier Finsbury Food Group has just exceeded Finsbury Food Group’s cake the £200 million turnover barrier for the division.

Based in Cardiff, Wales, first time. Reflecting significant organic growth across all its divisions, and despite Memory Lane Cakes employs the impact of commodity and cost infla- around 800 people and is the tion, Finsbury Food Group increased rev- leading manufacturer of the enue by 9.4% to £207.4 million and UK retailers' premium own adjusted profit before tax by 11.6% to label cake ranges. It also pro£6.5 million for the 52 weeks ended 30 duces under a number of brands notably Nestle, June 2012.

The cake division increased sales by WeightWatchers and Thorn- Finsbury Food Group is the second largest player in the £914 million ambient packaged cake market (excluding in-store bakery) in the UK. 9.2% to £152.4 million last year from tons.

Lightbody employs around both UK and export markets. Sales at the bread and free from division rose by 1,100 people and is the UK's largest sup- realised, efficiency measures moved centre 10.0% to £54.9 million, driven by strong plier of celebration cakes with Disney, stage,” explains John Duffy, chief executive growth in the fresh gluten free market, Nestle and Thorntons products within its of Finsbury Food Group. “We are constantly striving to reap the scale benefits of Vogel's bread brand growth and fresh free portfolio. our businesses, becoming more efficient in from own label in the speciality bread Bread and Free From Division the use of raw materials. Stringent efforts market.

The bread and free from have been made to remove non valuedivision consists of three pro- added processes in all our factories, squarduction operations. United ing the circle of keeping costs down to offCentral Bakeries (UCB), set the rising price of raw materials.” based in Bathgate near Finsbury Food Group has developed Edinburgh, employs around through a series of acquisitions supported 180 people and manufactures by organic growth. While the group’s a range of gluten free bakery short-term focus is on integrating and products and morning goods. growing the existing businesses, it also Nicholas & Harris, based in plans to expand in the longer term Finsbury Food Group is the market leader in the supply of gluten free Salisbury, employs around through bolt-on acquisitions as opportunibaked goods to the UK's multiple grocers.

270 people and produces a ties arise. J FOOD & DRINK BUSINESS EUROPE, OCTOBER 2012

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I BAKERY

Aryzta is a Global Leader in Specialty Bakery Formed in 2008, following the merger of Dublin-based IAWS Group with Swiss company Hiestand Holding, Aryzta is a global leader in speciality bakery. eadquartered in Zurich, Switzerland, Aryzta has operations in Europe, North America, South America, Asia, Australia and New Zealand. Its primary listing is on the Swiss Stock Exchange with a secondary listing on the Irish Exchange. Aryzta is also the majority shareholder (68.8%) in Origin Enterprises, the Dublin-based agri-services business.

In its last financial year, ended July 31st 2012, Aryzta reported an 8.5% rise in revenue to Eur4.21 billion with EBITA up by 12.9% to Eur444.1 million. Aryzta’s core food business increased EBITA by 16.3% to Eur374.8 million on revenue up by 11.3% to Eur2.87 billion. Ongoing reorganisation to improve efficiency throughout the bakery business, being implemented under the Aryzta Transformation Initiative (ATI), helped to improve margins by 60bps to 13.1%.

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Speciality Bakery Aryzta’s core business is speciality bakery, a niche sector within the total global bakery market. Artyzta’s products are designed for bakeoff at point of sale to provide consumers with freshly prepared bakery goods, offering value, variety, taste and convenience. The aroma of the freshly baked goods at the point of sale helps to drive consumer footfall and represents a point of difference for Aryzta’s customers in both food service and retail outlets.

Owen Killian, chief executive of Aryzta, comments: “Aryzta’s performance in FY 2012 was satisfactory given the challenging macro environment. Weak consumer spending affected our customers and the impact of government austerity measures was particularly noticeable in Europe. The business perfor-

Artyzta’s products are designed for bake-off at point of sale to provide consumers with freshly prepared bakery goods.

mance reflects the benefits of good progress on implementing internal transformation measures designed to better support our customers.

This will continue throughout FY 2013.”

European Business Aryzta’s original European bakery business currently accounts for 44% of total Food Group revenue and 45% of EBITA. The North American business contributes 48% of revenue and 47% of total EBITA, reflecting rapid expansion in this region by Aryzta in recent years.

Operating 16 manufacturing centres and 37 distribution centres across 10 countries, Food Europe holds leading market positions in the European speciality bakery market. It has a diversified customer base including convenience retail, gas stations, multiple retail, restaurants, catering and hotels, leisure and limited serve restaurants.

Given the macroeconomic environment in the region, Food Europe performed robustly in its last financial year. Revenue increased by 7.5% to Eur1.3 billion, chiefly due to the contribution from the acquisition of Honeytop in the UK. However, underlying revenue declined by 1%, reflecting weak consumer spending across Europe. The uncertain economic climate reinforced the continuing trend of consumers switching channels from independent convenience towards large retail and limited-service restaurants (LSR).

Honeytop primarily manufactures flat breads and supplies both large retail and LSR customers. The addition of Honeytop, which was acquired in August 2011, has added new product capabilities, new customers and has broadened Aryzta’s channel to market in Europe, which has a high dependency on independents.

During the year, Aryzta commenced further investment in expanding and upgrading its facilities in Poland to meet increased demand from European LSR customers.

Food Europe increased EBITA by 13.7% to Eur169.5 million due to the benefit of ATI measures and changes in the food offering.

This also led to EBITA margins expanding by 70bps over the previous year to 13.3%.

However, macro-economic conditions remained challenging throughout the year, not only in Ireland and the UK but throughout FOOD & DRINK BUSINESS EUROPE, OCTOBER 2012

Owen Killian, chief executive of Aryzta.

the region, as the Euro financial crisis continued to impact government spending and consumer sentiment.

Outlook According to Aryzta, the economic outlook for developed markets remains extremely challenging, particularly in Europe. Food inflation has also re-emerged as a business issue, with rising input costs. To tackle the challenging trading environment the food group has been implementing the Aryzta Transformation Initiative.

Following on from the phased implementation of Enterprise Resource Planning throughout the business during the 2010 and 2011 financial years, the ATI programme will continue to advance in 2013 with additional investment planned, especially in Europe.

Indeed, rolling out SAP in Food Europe remains a key focus during the current financial year.

Aryzta is continuing with its ongoing Eur400 million investment strategy in its existing businesses. This is aimed at supply chain optimisation, SAP implementation throughout the food business and upgrading its manufacturing footprint to fewer, larger, more efficient multi-product bakeries. The ATI programme is targeting a 15% return from underlying food assets by 2015.

“Resurgent food inflation adds additional challenges for Aryzta and its customers,” says Owen Killian. “We remain focused on working closely with our customers to manage inflationary pressures in order to maintain affordability without compromising quality or service. We have no great expectation of any recovery in consumer behaviour during FY 2013 to support revenue growth.” J 15

I BAKERY

Rademaker – The Perfect Partner ademaker has managed to transform bakery traditions of the past into robust, R state-of-the-art industrial bakery production lines that meet and exceed customer requirements all over the world.

Rademaker is specialized in the development and supply of innovative solutions for the bakery industry. Today it is one of the front runners in the bakery industry, with a service that goes well beyond the delivery and installation of bakery production lines alone.

Rademaker professionals employ the latest engineering technology to provide customers with solutions resulting in flexible produc-

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tion lines and turn-key solutions. The company offers 24/7 support all over the world.

The development process starts in the Rademaker Technology Centre, where production processes and recipes are tested.

Rademaker is an expert in stress-free dough handling and its portfolio contains a wide range of dough processing machines.

Rademaker has incorporated its bread know-how into the Crusto bread line which is designed to produce all kinds of breads.

High quality flatbreads and topped pizzas can be produced on Rademaker’s Flatbread production lines.

Rademaker is the recognized leader in flexible croissant lines, guaranteeing large quantities and excellent quality. The secret of good croissant and pastry dough originates from Rademaker’s Laminators. The Rademaker Universal make-up line is able to produce a wide range of pastry products, while the company’s Pie line offers production solutions for pie and quiche products.

A unique combination of proven and new

FOOD & DRINK BUSINESS EUROPE, OCTOBER 2012

technology plus attention for detail, all based on customer requirements, guarantee Rademaker to be the perfect partner in the bakery industry. J

I SEAFOOD

Seafood Industry Striving to Swim Upstream Although UK households reduced their average spending on seafood and volume sales declined in 2011, seafood producers are battling against this trend by introducing convenient products with exciting flavours so as to appeal to a wider audience. ish & Fish Products 2012, a new market report by Key Note, also finds that fish and fish products manufacturers have struggled for years with the fact that many consumers find seafood smelly and do not know how to cook with it. As a result, although an important source of protein, fish plays a less important role in consumers’ diets than red meat in the UK. However, in recent times, efforts by the Government, media and celebrity chefs have helped to boost the popularity of fish in the UK and consumers are eating seafood more regularly; however, this has failed to boost expenditure and volume sales.

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Market Forces Competition in the market is in partly responsible for the decline in household expenditure on seafood in 2011.

Manufacturers are competing with other brands and own labels by engaging in promotional activity. Consumers, who are economising as a result of the financial crisis, are on the prowl for the best bargain and are willing to betray brand loyalties for good value.

The Key Note report divides the market into three principle categories - fresh and chilled fish, frozen seafood and canned fish products. Fresh and chilled fish is the biggest sector but its market share has fallen year-on-year since 2007, while both the

frozen and canned seafood sectors experienced an increase in their market share between 2007 and 2011. Despite this, in 2011, household expenditure on all fish sectors fell.

The rise of the frozen aisle is an important reason behind the fall in UK household expenditure on seafood in 2011. Not only are frozen fish and fish products slightly cheaper than chilled variants, but they result in virtually zero wastage. This is not only beneficial for the environment, but it also means that consumers can save even more money by defrosting only the necessary amount required, and by freezing fresh fish, which they can use at a later date. However, this also means that consumers do not need to buy fish and fish products as often, which has taken a toll on the industry's volume sales.

Premium Products When consumers buy fish, they still want premium products and are willing to pay more for quality. The demand is primarily for convenient solutions and exciting flavours. Consumers have increasingly busy lifestyles and do not have the time to spend preparing fish and accompaniments. This has created a niche in the market for preprepared seafood and sauces that require minimal effort on the part of the consumers.

There is also room for flavour innovation as consumers are becoming more adventurous and want their meals to have zest, spice and be full of flavour.

Furthermore, manufacturers can maximise sales by keeping consumers on their toes, offering them exciting seafood every day of the week.

FOOD & DRINK BUSINESS EUROPE, OCTOBER 2012

Sustainability The key theme in the industry, however, is sustainability. With many of the world's stocks being overfished and methods that are harmful to species - such as fish aggregating devices (FADs) - being used, there is growing concern for the future of seafood and the fish and fish products industry.

Celebrity chefs, particularly HughFearnley-Whittingstall and his Fish Fight campaign, have played a crucial role in raising consumer awareness on the situation.

In addition, the industry is facing increasing pressure from the EU to modify its practices. As a result, labels are being introduced, campaigns are being launched and consumers are being encouraged to eat alternative fish. The issue is set to remain at the core of the fish and fish products industry in the UK. Following an analysis of the market and data exclusive to Key Note, the market intelligence company predicts that over the next five years manufacturers will find the balance between meeting consumers' various demands and returning the market to profit. Although competition will remain cut-throat, innovation will help the fish and fish products industry return to growth by 2014 and continue augmenting in value after that. While innovation will continue to contribute to the increasing popularity of seafood, market consolidation will be a by-product of the economic crisis. J 17

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FOOD & DRINK BUSINESS EUROPE, OCTOBER 2012

I ALCOHOLIC BEVERAGES

Diageo Exercises Brands Strength Diageo is building a business that is increasingly recognised for the strength of its brands globally. iageo has assembled a portfolio of relevant brands at almost every price tier (ultra premium, super premium, premium, popular/value) across all the major drinks categories.

The broadness and strength of the portfolio provides resilience. Given the range of its price points, Diageo is able to capture consumption shifts across the price spectrum.

This breadth and depth enables it to sustain its performance over time.

Diageo sells its products in more than 180 countries. Two-thirds of the global drinks group’s net sales are generated by Diageo’s 14 strategic brands - Johnnie Walker, J&B, Buchanan's and Windsor Scotch whiskies; Crown Royal Canadian whisky; Bushmills Irish whiskey; Smirnoff, Ciroc and Ketel One vodkas; Baileys liqueur; Captain Morgan rum; Jose Cuervo tequila; Tanqueray gin; and Guinness beer.

These brands have broad consumer appeal across geographies and although each of them has a rich heritage, Diageo continues to innovate and expand them to meet new and emerging consumer trends.

Diageo’s strategy is to invest behind its most successful brands in their most important markets.

Indeed, the strength of its brands globally plus its increasing presence in emerging markets, which now account for almost 40% of the group’s business, allowed Diageo to achieve organic growth of 6% in net sales to £10.76 billion and 9% in operating profit before exceptional items to £3.20 billion for the year ended 30 June 2012, with the margin improving by 60 basis points.

“Diageo is a strong business, getting stronger,” says Paul Walsh, chief executive of Diageo. “We have enhanced our leading brand positions globally, through effective marketing and industry leading innovation and we have strengthened our routes to market.”

During the year, Diageo increased marketing investment by 8%, up 30 basis points to 15.8% of net sales, focusing on strategic brands and the fastest growing markets.

biggest ever for innovation launches.”

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Scotch and Vodka “Scotch whisky and vodka are the cate-

Paul Walsh, chief executive of Diageo.

£1 Billion Investment Diageo will build a major new malt distillery as part of the £1 billion investment in Scotch whisky production over the next five years, alongside a programme of major expansion at a number of Diageo’s existing distilleries.

Detailed plans will also be developed for a second new distillery which will be built if global demand for Scotch is sustained at expected levels. Diageo also plans to invest in substantial new warehousing capacity to house the millions of additional litres of Scotch whisky which the distillation investment will produce.

“Over recent years our brands have achieved remarkable, sustained global growth. Scotch whisky is Scotland’s most celebrated manufactured export, led by brands like Johnnie Walker, resonating with consumers from Boston to Beijing.”

Paul Walsh adds: “We expect that success to continue, particularly in the high growth markets around the world”

gories at the core of Diageo,” says Paul Walsh, and both recorded very strong growth in the group’s last financial year.

With sales approaching £3 billion, Scotch whisky represents 27% of Diageo’s net sales and a third of gross profit.

Led by Johnnie Walker and Buchanan’s, Diageo’s Scotch brands delivered 12% growth last year and continue to outperform the market. “We are confident that there is still more opportunities for growth and therefore took the decision to invest a Promising Start further £1 billion in whisky production Diageo is continuing to show its resilience, and maturation in Scotland – the largest reporting 5% organic net sales growth in its investment of its type every made,” he first quarter ended 30th September 2012. explains.

“Diageo has delivered a solid start to the Diageo’s vodka brands contributed 12% new financial year with net sales growth in to net sales last year and saw 13% growth line with expectations,” says Paul Walsh. with positive price/mix as value vodka “The strength of our brands and our routes brands declined and super premium brands to market, coupled with the investments we grew strongly with volume up almost 30%. have made in faster growing markets con“Vodka also performed very strongly and tinue to drive the performance of our busigrew double digit – a real testament to the ness.” J quality and durability of brands like Smirnoff, Ketel One vodka and Ciroc,” he points out. “Much of this growth across our brands was driven by our capacity to innovate, with both new to world products and through the renovation and extension of existing brands.

This year was our Two-thirds of Diageo’s net sales are generated by its 14 strategic brands.

FOOD & DRINK BUSINESS EUROPE, OCTOBER 2012

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I

BABY NUTRITION

Danone Invests €70 Million in Irish Baby Food Plants Danone Baby Nutrition has spent Eur50 million on tripling the capacity of its baby food manufacturing plant in Macroom, County Cork, and is investing a further Eur20 million to expand its facility in Wexford. he investment programme at Macroom has entailed the building of a separate production plant, which is fully integrated into the existing facilities. At the centre of the new fully automated manufacturing plant is a new 10 tonnes/hour spay dryer, supported by new wet-based facilities and packing plant.

The IT systems for both the new and existing plants have been upgraded and the latest SCADA control technology has been introduced. Energy savings have been achieved by switching from heavy fuel oil to natural gas and by using indirect flue heating in the manufacturing process instead of steam boilers. The new plant benefits from the use of high solids mixing prior to drying, which also enhances energy efficiency.

The new facility commenced production last March and has increased the site’s annual capacity from 35,000 tonnes to 120,000 tonnes. Storage capacity has An aerial view of the Danone Baby Nutrition manufacturing plant at Macroom, County Cork. been expanded with the addition of a modern semi-automatic warehouse.

In addition to the increase in much needed production facility in Ireland. The Wexford The Macroom dairy processing site was production capacity, the investment pro- manufacturing facility produces consumer originally established in the 1980s by gramme at Macroom has enhanced quality, packs of infant milk such as Aptamil, Cow Ballyclough Co-operative, which later hygiene and safety levels and significantly & Gate, Nutrilon and Bebilon for the Irish, evolved into Dairygold. The facility was reduced costs, according to Donal UK, Dutch, Belgian, Spanish, Portuguese taken over by Dutch infant formula manu- Dennehy, operations director of Danone and Polish markets. The site also produces facturer Numico, which was subsequently Baby Nutrition. infant milk base powder for sister babyacquired by Danone in 2007.

The Macroom manufacturing facility food sites within the group. produces infant milk base powder for sister A new processing and packing line will Technologically Advanced baby food sites within the Danone group. double the capacity of the Wexford facility The trebling of capacilty at Macroom has “The Macroom site specialises in the man- to 70,000 tonnes annually in finished made the site the largest and most techno- ufacture of base powder and has no fin- packed product. The expansion of the logically advanced manufacturing centre in ished product packing. It produces the base operations in Ireland coincides with the Danone Baby Nutrition’s global network. powder, which is 90% of the finished prod- 125th anniversary of the start of manufacuct, and that is shipped to packing plants turing of Cow & Gate infant and toddler around Europe, including France, milks in Ireland.

Germany, Holland, Poland, Russia and to The new packing capacity is due to come the Wexford packing plant in Ireland. on stream in April 2013. “Once the extenMacroom is the main supplier to all of the sion is complete, Wexford will be close to packing plants for Danone Baby Nutrition being the biggest packing plant in the in Europe,” explains Donal Dennehy.

Danone Baby Nutrition group,” he adds.

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€20 Million Expansion at Wexford Danone Baby Nutrition is currently investing Eur20 million to expand its second FOOD & DRINK BUSINESS EUROPE, OCTOBER 2012

Danone’s Baby Nutrition Business Producing and marketing specialised infant and toddler milks, Danone Baby Nutrition 21

Delivering Optimal Production Facilities for Food Companies

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and 2011, spurred by rapid internationalisation after Danone’s acquisition of Numico four years ago. Danone Baby Nutrition has now moved into 17 new countries, and in 2011 its products were sold in a total of 137 countries. The division’s strongest positions are in the AsiaPacific region, which accounts for around 40% of its business. Its largest market is China.

“European sales of infant formula are still growing but slowly, whereas in Asia they are growing in double-digits continuously.

So Asia is obviously a key market for Danone,” he remarks.

Donal Dennehy, operations director of Danone Baby Nutrition.

had annual sales of Eur3.67 billion in 2011 and operates 14 plants globally. Danone is one of the world’s top four producers of baby milk formula along with Nestle, Mead Johnson, Danone and Abbott.

Danone Baby Nutrition’s sales have grown by more than 50% between 2007

Ireland as a Production Base Ireland has a long tradition of baby food manufacturing. “Danone has a long and positive experience of manufacturing here we first started to manufacture Cow & Gate products in Ireland 125 years ago so it is fantastic that we are further deepening our roots and our commitment during this celebratory year,” says Donal Dennehy.

“The continued investments in our Irish operations means that Ireland is now home to the most technologically advanced production facilities in the region and positions us well for continued growth into the future.”

In securing the investment for expansion,

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the Irish baby food operations faced stiff competition from other regions within the Danone Baby Nutrition business, including Poland and Germany.

“The quality of product consistently delivered to Danone by the local farming community is a key strength when we compete for new investment here in Ireland,” adds the Danone Baby Nutrition operations director. “The quality of raw materials had a major impact on the decision making process, especially with the quota system lifting in 2015.”

In addition to the quality of the raw materials supply chain, other influential factors in determining Danone’s investment decision included the strong track record of quality production and existing expertise in Ireland, plus the synergies between the Macroom and Wexford factories. J

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I CAPITAL PROJECTS

Malone O’Regan Consulting Engineers alone O’Regan which has a strong M track record of working on food and beverage plants in Ireland, was selected by Danone Baby Nutrition as project manager for the new infant milk formula blending and packing facility and for a new biomass boilerhouse building at the Wexford site.

There were significant challenges on the site due to the proximity of the proposed buildings to both existing production facilities and utilities.

“To mitigate against some of the constraints an enabling works contract was undertaken in April and May 2012 with the Main Building Contract commencing in June 2012. Further critical elements of work were arranged to coincide with a planned Plant maintenance shutdown in early July 2012,” explains Brian Mackey, Associate Director of Malone O’Regan.

“Due to the extremely short programme and the requirement to maintain existing production levels without interruption throughout the project, close coordination between the design team, contractors and Danone Baby Nutrition was essential. The

24

flexibility shown by all parties during the works has been the key to maintaining progress on site and equipment has been accepted into the buildings on programme.”

Both projects are due for completion in December 2012.

For over thirty years, Malone O’Regan has specialised in delivering optimal production facilities for food and beverage companies, completing projects to agreed programmes and budgets. Working in partnership with its clients’ plant and engineering teams, Malone O’Regan delivers ‘best fit’ building and equipment layouts, finishes and utilities within investment constraints. From project concept through to handover and commissioning, Malone O’Regan draws upon its extensive expertise and experience within the food and drink processing industry to solve engineering, planning and environmental problems, ensuring clients comply with statutory requirements.

The company’s experienced multi-disciplinary team has built trusted relation-

FOOD & DRINK BUSINESS EUROPE, OCTOBER 2012

ships with an extensive client list including Danone, Nestle, Glanbia, Kerry Foods, Lakeland Dairies and Largo Foods, since the practice was founded 34 years ago. Malone O’Regan handles contracts of all sizes providing pragmatic solutions to a range of Clients from minor capital projects up to investments in the order of €25 million.

For example, Malone O’Regan served as the project manager, equipment procurement lead, civil, structural, mechanical, electrical consultants, cost manager and environmental consultant for Lakeland Dairies’ recently completed €20 million investment in new milk powder processing systems at its site at Bailieboro.

In addition to the ongoing Projects at Danone Baby Nutrition Malone O’Regan is currently involved in numerous projects in the food and beverage industry including a number of Projects with Glanbia, ongoing works with Lakeland Dairies and a production facility for Glanmore Foods which is due for completion in 2013. J

I BABY NUTRITION

Irish Baby Food Production Continues to Grow Ireland is one of the world’s leading manufacturers of infant nutritional products, generating over 15% of global baby powder formula supply. he global market for infant milk formula is estimated to be worth in the region of $5-6 billion and the top four players account for about two-thirds of total sales. Nestle and Danone (incorporating Royal Numico, Dumex, Milupa) are the leading players in Western European but the market is fragmented with a host of smaller companies competing.

Controlling about 80% of sales, Abbot and Mead Johnson dominate the US baby milk market.

The Askeaton site can produce more than 48,000 tonnes of powder infant formula a year and exports to almost 70 countries, with about three-quarters of output destined for markets outside the EU.

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World’s Leading Manufacturers Three of the world’s top four manufacturers of infant formula are based in Ireland - Nestle, Danone and Abbott. Nestle became a major Irish producer following its $11.85 billion (Eur9 billion) acquisition of the Wyeth baby formula business from Pfizer in April 2012, beating off stiff competition from Danone. Pfizer operated five infant formula plants worldwide, including a factory at Askeaton in County Limerick, which employs 600 people.

Three of the world’s top four manufacturers of infant formula are based in Ireland - Nestle, Danone and Abbott.

Nestle, Danone and Abbott also have their biggest manufacturing facilities in Ireland, which are crucial to their longterm development.

For example, the infant formula plant in Askeaton, County Limerick, was the only Pfizer plant producing certain products, including ready-to-feed liquid products and speciality products for specific nutrition needs. The plant at Askeaton became part of Pfizer in 2009 following the US-based pharmaceutical giant’s acquisition of the Wyeth baby food business.

Irish Dairy Industry Powdered formula manufacture is a major element of the Irish dairy industry, accounting for 12% of total milk production. .About 50% of total Irish lactose production is also used in infant formula production.

For instance, about 70% of the Askeaton plant's skim milk powder requirements and around two-thirds of its lactose requirements are sourced in Ireland.

In addition to the Eur70 million investment by Danone in expanding its baby food plants at Macroom and Wexfod, Abbott also recently expanded its infant nutrition facility at Cootehill, County Cavan.

Abbott Nutrition in Cootehill commenced its operations in 1975. This site manufactures a wide range of science based infant formulae and follow-on formulae to support the healthy growth of infants.

Approximately 1,000 dairy farms in the region supply quality milk to the Cootehill facility, which processes 500,000 litres per day. J Leading Players in the Global Baby Milk Formula Market Company Nestle/Wyeth

FOOD & DRINK BUSINESS EUROPE, OCTOBER 2012

Market Share 24.9%

Mead Johnson

16.4%

Danone

13.5%

Abbott

12.1%

25

I BEVERAGES

Halewood International Plans to Double Halewood International, the North West of England-based drinks group famous for its Crabbie’s alcoholic ginger beer, Lambrini wine and cider, Tsingtao beer and Lamb’s navy rum brands, plans to double in size over the next five years. ounded in 1978 by the late John Halewood, the business has developed from a start-up company to become the UK’s largest independent drinks manufacturer and distributor, with a turnover in excess of £270 million and employing more than 1,500 people worldwide.

The Halewood International portfolio spans both alcoholic and non-alcoholic drinks. The alcoholic drinks range covers all the major categories, including spirits, beer, wine, cider, ready-to-drink and fortified wine.

The drinks group supplies all the biggest UK retailers in both the on- and offpremise markets. Additionally, its products are distributed through most wholesale channels from specialist fine wine merchants to general wholesalers and cash & carry outlets.

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Halewood International has also developed internationally and exports to more than 40 countries around the world. It has established businesses in Romania and South Africa, along with a joint venture in China. Worldwide annual sales currently exceed 20 million cases.

The underlying philosophy of the business has always been one of ‘creative independence’ and entrepreneurship and innovation have been central to Halewood International’s success.

Strategy The group’s strategy is to grow through driving its key brands, strategic acquisitions and developing new brands that have high consumer and trade appeal. The objective is to maintain Halewood International’s position as the UK’s leading independent drinks producer and distributor, while continuing to expand its international footprint.

Although shaken by the untimely death of founder John Halewood last year, the company is determined to retain its independence and recently unveiled its long term growth plan to double its current sales of £264 million in the next five years, while remaining a family owned business based in the North West of England. Halewood International is seeking to drive growth through a combination of domestic and international expansion.

“We want to grow the business aggressively over the next five years. We aim to double the size of the business,” says Andy Smallman, managing director of Halewood International. “To have that we’ll grow the business in other countries – the US, further growth in Australia, and other countries including China. And in the UK there are a lot of opportunities as well.”

The ambitious expansion is being supported by a £2 million investment programme at the group’s drinks factory at Huyton, near Liverpool.

Innovation Innovation will continue to play a crucial role in Halewood International’s planned development. Crabbie’s Alcoholic Ginger Beer, which was launched in the UK in 2009, is arguably the group’s most successful innovation to date and will be central to further business growth.

Indeed, through its Crabbie’s brand, Halewood International has created a new drinks category - alcoholic ginger beers. It is the UK’s top selling alcoholic ginger beer, the number one selling premium bottled ale and is now available in more than 30 countries around the world.

Crabbie’s Alcoholic Ginger Beer was recently launched in a new can format.

Introduced to fill a gap in the market amongst 25-50 year old males, Crabbie’s Alcoholic Ginger Beer will offer a refreshFOOD & DRINK BUSINESS EUROPE, OCTOBER 2012

ing alternative to other canned brands dominating the market and is expected to extend potential in a category valued at £1.5 billion.

“Crabbie’s has achieved notable success within the off trade since the brand was launched in 2009, but we are now looking to offer consumers more choice and occasions to enjoy the brand,” points out Richard Clark, director of innovation at Halewood International. “The canned ale category has huge potential in the UK, but it requires new, innovative brands to retain consumer interest, and our new can format for Crabbie’s Ginger Beer should do just that. We also believe that the cans are a good platform to attract new consumers who may not have tried the product before and who prefer their beverages in this can format.”

Expansion in Soft Drinks Halewood International has also extended its John Crabbie & Co soft drinks brand, following its successful launch in 2010.

The John Crabbie’s range has been extended with the introduction of two new flavours - Scottish Raspberry with Ginger and Lemonade with Ginger. In addition to launching two new flavours, the packaging has also undergone a major re-design.

“It is important to deliver innovation into the soft drinks market to ensure growth in market value and share. John Crabbie and Co provides a crafted alternative to mainstream flavours like cola and lemonade which retailers should look to capitalise on as part of the rising trend for nostalgia brands amongst consumers,” says Richard Clark. “Our new packaging design underlines this exciting time for the brand, and also reflects the product ranges’ strong identity, clearly differentiating John Crabbie & Co from Crabbie’s Alcoholic Ginger Beer.” J 27

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FOOD & DRINK BUSINESS EUROPE, OCTOBER 2012

I CAPITAL PROJECTS

PM Group – The World’s No.1 Food Engineering Company tarted in 1993, the specialist food division in Dublin-based PM Group has become a global leader in food engineering, offering a fully comprehensive one-stop shop delivering integrated process solutions from the traditional to the most sophisticated nutritional food, beverage and consumer health products.

“Our clients come to us because of our specialist food engineering expertise and extensive track record in delivering world class food and beverages facilities - whether it’s Ireland, the UK or further afield,” points out Eyre Tarrant, Director & Head of Food/Beverages Sector, PM Group. “Our expertise covers food process engineering; GMP/Hygienic layout design, process integration; project and construction management of complex projects; and site master planning all of which require the latest lean design and sustainability technology features, right the way through from project concept through to commissioning and handover.”

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years on various projects providing engineering and environmental services both in Ireland and abroad. PM Group’s Food/Beverages Sector is currently involved as part of the core Diageo Management team in a major upgrade of the St James’s Gate brewery – a Eur180 million capital value project due for completion in Q2 2013.

Within the UK food sector, PM Group is now working with a major UK dairy client on multi million euro projects across three of their facilities. The programme of work began in early 2012 and is due for completion by end 2013.

ness when they need them,” explains Eyre Tarrant. “It’s all about helping our clients to get to market quickly and safely with the right quality product. We are constantly developing new products and services to satisfy this need - for example market-ready design principles and other fit for purpose services. The day we’re not up with our clients’ thinking and satisfying their present day needs is the day we will be the same as everybody else.”

Excellent Reputation The Dublin-based food engineering business is continuing to build on its excellent reputation throughout the international food and drink industry. It was recently appointed to work with international flavour companies like Givaudan and IFF on new facilities in Turkey, India and China.

In Europe, PM Group’s Polish offices have seen a step change in the bakery sector and are currently working on major new facilities for Aryzta and BAMA, both of whom supply speciality bread products to McDonald’s.

Major Projects PM Group is currently working on a number of major projects CGI of the proposed new Glanbia dairy ingredients manufacturing facility at both in Ireland and international- Belview, County. Kilkenny.

Changes in Demand ly.

So what changes in demand It has been retained to provide all services Across the world PM Group is working from food and drink clients is PM Group from the initial feasibility study through to on various projects for companies such as seeing in light of the current economic cliconstruction management and eventual Mars, Danone and Kraft/Mondelez in Asia mate? “In one way or another, we are seehandover, for Glanbia’s new state-of-the-art and the Middle East. It has just finished ing a huge demand across all our MNC dairy ingredients manufacturing facility at major projects for Nestle Nutrition in clients, to enter emerging markets,” he Belview, County. Kilkenny. The project is Singapore, China and the Philippines and replies. “In more mature markets, the focus due for completion in Q1 2015. is just in the middle of a multi-million euro continues to be on healthier, functional PM Group is also involved with the pro- greenfield project for Abbott Nutritional in foods and new product development such posal to re-introduce the sugar industry to China. as sophisticated snack foods.

Ireland. Its teams have carried out a feasiConsequently, we are seeing a lot of adapbility study and pre-engineering work for Team Approach tation of existing facilities and additions the proposed Eur400 million super green- Central to the success of PM Group’s for new product lines with a requirement field facility to produce sugar and biofuels. Food/Beverages Sector has been its team for LEAN and logistics initiatives that The project would take 36 months to com- approach and client focus, coupled with its drive costs down.” plete. in-depth knowledge of the food and drink Eyre Tarrant adds: “The continuing For Irish Distillers/Pernod Ricard, PM industry. growth in the world’s population means the Group is currently providing full profes“Our team has come from the food trends in Asia continue to be around the sional services on the doubling of capacity industry - from either client or vendor need for more sophisticated (and safe) westat the Midelton facility in Cork. The pro- companies - so we know what it takes to ern products to satisfy the growing middle ject began in mid 2011 and is scheduled for deliver a food project successfully. But our classes particularly in China and India. completion by Q2 2013. job is also to monitor trends and develop GMP, food safety and sustainability are on Also within the drinks industry, PM services ahead of time - ensuring our clients all agendas as is the need to address margin Group has worked with Guinness for many can access the right solutions for their busi- pressure.” J FOOD & DRINK BUSINESS EUROPE, OCTOBER 2012

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I COLOUR & FLAVOURS

GNT Group – Focusing on ‘Perfect Solutions From Natural Sources®’ Specialising in developing and processing food ingredients made from edible fruits and vegetables, GNT Group has long been an advocate for the use of colouring foods in food processing.

ounded in 1978 in Aachen, Germany, F the independent family-owned company now operates worldwide through its subsidiaries in Europe, Asia and the Americas. Its success is based on supply chain control, innovative products, technical/application know-how and excellent customer service. Constant investment in R&D and application technology has been crucial in upholding the company ethos of providing the food and beverage industry with ‘Perfect Solutions from Natural Sources®’.

Indeed, GNT Group has played a central role in the increasing use of colouring foods by European food and drink manufacturers.

Growing Demand For Clean Label Colours “For many years there has been an ongoing trend towards more natural forms of colour, and in this respect the well reported Southampton Study published around 2008 was a significant catalyst for the replacement of artificial colours in food and drink,” explains Paul Collins,

Managing Director of GNT UK. “The Southampton Study only covered six so called ‘azo-dyes’, however since it resonated so well with consumer concern and understanding, it had a significant impact on the food industry. The EU authorities bought into play the need to give a mandatory warning notice regarding the potential effect on children when any of these azo-dyes are used, and this coupled with the long-term belief held by consumers that such artificial colours are not so healthy, resulted in an acceleration of the switch from artificial to more natural colours.”

He elaborates: “One very important point of consideration in this respect is to understand what are the more natural and healthy alternatives to artificial colours? Very often some additive colours are positioned as being ‘not artificial’, however when you consider the raw material source, process steps and other components present in their formulation, it is hard to see how these can be sustainably offered as a more natural or healthy alternative.”

FOOD & DRINK BUSINESS EUROPE, OCTOBER 2012

Pioneer in Colouring Foods As an alternative to ‘not artificial’ additive colours, GNT Group has developed its ‘Colouring Foods’ concept, where the raw material is a food and with physical processing (using water) it is possible to produce a concentrate which delivers colour in the most natural and healthy way.

“GNT is a pioneer in this area with its EXBERRY® range of Colouring Foods; these are suitable for a wide variety of food and drink applications. Such Colouring Foods are not additives but rather food ingredients that provide their colour, in simple terms the practice can be described as ‘colouring food with food’,” says Paul Collins.

EXBERRY® Colouring Foods are fruit and vegetable concentrates offering a wide range of vibrant, stable colours for many applications and are labelled as ingredients (without E-numbers). With EXBERRY® Colouring Foods food and drink manufacturers can develop clean label products to meet current and future market demands.

“The real advantage and benefit is the ability to provide the consumer with attractive and appetising food whilst meeting their perceptions of healthy, natural and clean-label ingredients,” he remarks. “In short the appearance of food and drink does not have to be compromised; EXBERRY® Colouring Foods allow manufacturers to provide outstanding products for their consumers.”

GNT Group provides food and drink manufacturers with the technical/application know-how to allow them to colour their end products to meet the expecta-

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tions of consumers. The company’s technical specialists provide advice on the most suitable product and application considerations, and where necessary can support customers with accelerated stability testing, prototype development, colour matching/replacement and regulatory support as required. Of course, all customer/project work is carried out under the strictest confidentiality.

Colour Solutions “We see ourselves as both the specialists and partners to the food and drink industry in providing real natural solutions based on our fruit and vegetable knowhow.”

The Managing Director of GNT UK continues: “GNT is passionate about Colouring Foods since we have followed this philosophy since our formation. It is our primary focus and we are not engaged in business with additive colours

which do not fulfill consumers’ expectations of natural”.

“We support our business by having a policy of being vertically integrated, so we are involved from the seed to the factory for the fruits and vegetables that we process. This gives us the supply chain control that is critical when working with agricultural products, which in turn allows us to manage quality, authenticity, consistency, performance and also avail-

ability for our customers. Finally our application know-how is a core competence of GNT; we work together with customers to find perfect solutions to the challenges that they face.”

As consumers continue to show a preference for natural, healthy and clean label ingredients in food and drink, the colour of food and drink has similarly become high profile.

Paul Collins concludes: “GNT is focused on ‘Perfect Solutions from Natural Sources®’, therefore within our EXBERRY® range of Colouring Foods we are constantly developing new solutions to meet the challenges that our customers present us, however we have stayed loyal to our principle of colouring food with food. By utilising new sources of raw material, process development and application know-how we are meeting the current and future needs of the food and drink industry.” J

EU Adopts List of Approved Flavouring Substances he European Commission has adopted two pieces of legislation T designed to make the use of flavouring substances in food even safer and more transparent. Only those flavouring substances featuring on the approved lists will be permitted for use by the food industry.

Used to alter the taste and/or odour of food, flavourings substances have a long history of safe use in a wide variety of foods, such as soft drinks, confectionery, cereals, cakes and yoghurts, and have now been evaluated at EU level. The two new pieces of legislation will clarify and harmonise the use of flavouring substances within the single market: The first Regulation provides for a new EU wide list of flavouring substances which can be used in food and will apply from 22 April 2013, giving time for the EU food industry to adapt to the new rules.

All flavouring substances not in the list will be prohibited after a phasing out period of 18 months.

The second Regulation concerns transitional measures for other flavourings such as flavourings made from non-food sources and applies from 22 October 2012. The new list includes over 2,100 authorised flavouring substances. A further 400 will remain on the market until EFSA concludes its evaluation. These have been used for a long time and have already been assessed as safe by other scientific bodies. J

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FOOD & DRINK BUSINESS EUROPE, OCTOBER 2012

I COLOUR & FLAVOURS

IFF to Invest Over $50 Million in Flavors Creative and Manufacturing Facility in Turkey nternational Flavors & Fragrances plans Iflavors to invest over $50 million in its existing facility in Gebze, Turkey over the next three years. The investment will be allocated to a new, leading-edge, 2,000 sq m creative facility and to an expansion of its existing manufacturing site to 18,000 sq m to support current and future customers in the developing markets of Europe, Africa, and the Middle East. The global flavors and fragrances company anticipates opening the site in phases, with the first phase delivering significant capacity expansion and expected to be completed by Q2, 2013.

"Over the next three years, we expect to invest significantly in our flavors creative and manufacturing capabilities in Turkey, which will provide additional support to key emerging markets," says IFF chairman and chief executive Doug Tough. “This investment in the facility reflects our continued confidence in our growth strategies in the region and our long-term commitment to these very important markets."

Hernan Vaisman, group president, fla-

vors adds: "The developing economies of Central, Southern, and Eastern Europe, the Middle East, and Africa are creating increased demand from our customers, so we want to ensure we have the right people and the right infrastructure to support them. Turkey offers an unparalleled strategic hub into the fast-growing emerging markets in the region that will allow us to significantly increase and differentiate our value proposition to our customers.”

The new site will be a major center for the company’s creation of flavors and technologies for use by manufacturers of sweet goods, beverages, dairy products and savory prepared foods. The products are tailormade to address consumer preferences in a wide range of markets across the region. In line with IFF’s commitment to sustainability, the building is designed using Leadership in Energy and Environmental Design (LEED) standards. J

Cargill’s New Managing Director Cocoa Focuses on Innovation and Customer Service hilippe Huet has been appointed as the P new Managing Director Cocoa for Cargill’s cocoa & chocolate business. He

Commenting on his appointment Philippe Huet says: “I am very much looking forward to my new role. Focusing on takes over from Harold Poelma, who made our customers will be a particular priority a major contribution to establishing the for me, ensuring that we provide them with company’s leadership in cocoa, and has now the best possible service, and with the suptaken up a new challenge – as Managing port necessary for them to develop innovaDirector of Cargill Refined Oils Europe. tive solutions for their businesses.”

Since joining Cargill in 1995, Philippe Huet has held various managerial positions across the company. In 2005 he joined the management team of Cargill’s cocoa & chocolate business as Commercial Director for the cocoa division, leading the product sales, cocoa bean origination, and risk management activities.

Most recently Philippe Huet has overseen the successful integration of German chocolate manufacture Kakao Verarbeitung Philippe Huet, the new Managing Director Cocoa for Berlin (KVB) into Cargill’s cocoa Cargill’s cocoa & chocolate business. & chocolate business, making FOOD & DRINK BUSINESS EUROPE, OCTOBER 2012

Cargill the largest chocolate producer in Germany and the second largest in Europe.

Jos de Loor, President, Cargill Cocoa & Chocolate, says: “I would like to welcome Philippe to his new role. We are all looking forward to working with him and ensuring that our business continues to go from strength to strength.”

Cargill Cocoa & Chocolate offers the food industry a wide range of both standard and customised cocoa and chocolate ingredients to be used in bakery, confectionery, and dairy applications all over the world. The product range includes high quality Gerkens® cocoa powders, chocolate including Wilbur®, Peter’s® and Veliche®, coatings, fillings, cocoa liquors and cocoa butters. With years of experience in technical food expertise Cargill supports its customers in new recipes and new product development. It operates facilities in Belgium, Brazil, Canada, Cote d’Ivoire, France, Germany, Ghana, the Netherlands, UK and the USA. J 33

info@stephan-uk.co.uk

+44 (0)845 456 0823

I FOCUS ON IRELAND

‘Origin Green’ Goes Global ‘Origin Green’, the programme designed to help Ireland become a world leader in sustainably produced food and drink, has been launched internationally by Bord Bia (the Irish Food Board). at the heart of our the world in 2013. longer-term strategy.

“Ireland has embarked upon an innovaWe intend to have tive sustainability development programme 100% of Irish food for the food and drink industry,” says Irish and drink exports Prime Minister (An Taoiseach) Enda sourced through the Kenny. “We have not only a clear vision of Origin Green pro- where we should be going but the wheregramme by the end of withal to get there. ‘Origin Green’ demon2016. In addition, as strates the commitment of Irish food and part of our Quality drink manufacturers to operating sustainAssurance scheme, ably and we believe it is the starting point Bord Bia has assessed for Ireland to become a world leader in susthe emission perfor- tainably produced food and drink.” mance and carbon footprint of over Export Performance 30,000 beef farms. However, Irish export values for 2012 are Bord Bia has launched a comprehensive national sustainability development Taking these steps, and being affected by the continuing volatility programme entitled 'Origin Green'. setting these ambitious in markets, with dairy product prices still targets at some 25% off their March rigin Green is a comprehensive national and farm level, gives 2011 peak, adverse weathnational sustainability develop- Ireland the most comprehener conditions, poor grass ment programme, the first of its sive and verifiable commitgrowth, and the rising cost kind in the world, designed by ment to sustainability of any of inputs with which farmBord Bia, to help Ireland become known as country of origin in the ers across all enterprises the optimum source of sustainably pro- world.” have to contend. Acc-ordduced food and drink. Industry recruiting to Bord Bia, exports, ment commenced in June 2012 and to date International Launch currently valued at Eur79 companies accounting for over 50% of Over 300 food buyers includ8.85 billion, will largely Irish food and drink exports have signed up ing representatives from key retailers such stablise in 2012. The strongest performing to the programme. as Carrefour and Monoprix attended the categories this year are expected to be meat, recent international launch at SIAL 2012 in seafood, edible horticulture and to a lesser Sustainability Paris. The launch at SIAL is the initial pro- extent, beverages.

At the heart of Origin Green is a sustain- motion of Origin Green outside of Ireland France is the leading Eurozone market for ability charter that will commit Ireland’s and the start of Bord Bia’s global promo- Irish food and drink products, and is the secfood and drink industry to engage directly tional campaign which will include trade ond largest global market after the UK. and robustly with the challenges of sustain- marketing, advertising and participation in France is Ireland’s biggest customer for lamb able production - reducing energy inputs, some 25 international trade shows around and seafood; second largest for beef and minimizing their overall carbon third for whiskey. Irish food and footprint, and lessening their drink exports to France in 2011 impact on the environment. amounted to Eur646 million, an Working in conjunction with Bord increase of 13.9% since 2010.

Bia, the registered companies are Exports to international marcurrently working on sustainability kets meanwhile have been perplans, setting out clear targets in forming strongly, helped by a key areas such as emissions, energy, weaker euro, rising by almost waste, water, biodiversity and cor10% to date this year, as signifiporate social responsibility (CSR) cant increases to Asia, North activities.

America and to a lesser extent Aidan Cotter, chief executive of Africa boosted trade. The UK Bord Bia, comments: “Globally, remains the principal export desconsumer demand for premium tination with exports largely sustainably produced food and unchanged during the first six drink is growing and our ability to An Taoiseach (Irish Prime Minister) Enda Kenny speaking at the global months of 2012 with its share of meet that particular need must be launch of Bord Bia’s ‘Origin Green’ initiative at SIAL 2012 in Paris. exports remaining at 41%. J

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I LABELS & LABELLING

SATO Extends its Labelling Solutions Range ATO, a leading supplier of integrated Automatic S Identification and Data Collection solutions based on barcode and RFID technologies, has extended its range of labelling products and can now offer rolls of labels on 19 mm cores in addition to the 26, 40 and 76 mm sizes currently available. As a result, customers now have more choice of rolls to best suit their application. To meet market demand further, the French site has installed an extra folding machine to increase production of fanfold labels.

SATO’s label designers can create and print personalised products on demand, such as conformity or sealing labels, together with pre-printed labels such as logos, addresses or company images. The labels are available in numerous materials suitable for all types of surface, ranging from vellum to protected or unprotected thermal paper, as well as synthetic materials or card.

SATO also provides ecological labelling solutions thanks to its Eco-Match system which has been developed to minimise the environmental impact at every step of the product life cycle. The range includes linerless labels that have no backing paper, thus limiting waste; recyclable labels that are biodegradable thanks to the use of a natural rubber adhesive; recyclable plastic labels made of the same material as the container to enable the units to be recycled at the same time; labels that are soluble in water or alkalis used for glass containers, plus eco-thermal labels that are Bisphenol A-free.

All the labels produced are fully compatible with SATO printers, which considerably reduces technical issues that can arise from devices of different origins, and brings a significant increase in production rates. Furthermore, in order to provide quality service and minimise downtime, SATO carries a regular stock of the most widely used products on the market.

These latest solutions have been developed in response to a strong market demand, and they further enrich SATO’s wide offer of labels that are adapted to suit a wide range of industries, including the health sector, retail, food and drink, industrial or transport and logistics. For more information visit www.satoeurope.com/uk. J 36

FOOD & DRINK BUSINESS EUROPE, OCTOBER 2012

I LABELS & LABELLING

Primera Presents New Label Printing Innovations at Emballage rimera Technology Europe, EMEA P headquarter of Primera Technology, is presenting its new CX1000e Color Label Printer and FX1000e Matrix Removal System at Emballage Packaging Exhibition.

Emballage is a key event of the packaging industry in the EMEA region. The event is being held from November 19-22, 2012 at Paris Nord Villepinte in Paris, France.

Primera is located in hall 4, stand 4 DE 106.

CX1000e Color Label Printer, the latest addition to Primera’s range of industrial label printers, is designed for in-house production of professional-quality product labels. It is ideal for producing short- to medium-run jobs of pre-die cut label material in various sizes. With 2400 dpi print resolution and print speed of 5 meters per minute, CX1000e delivers professional full-color print quality along with high-speed production.

CX1000e prints onto many different laser-qualified label materials including pressure-sensitive plain papers, white and clear polyesters and more. A wide range of approved matte, semi-gloss, high-gloss and specialty food and beverage label materials are available. Primera has also qualified an all-new selection of eco-friendly substrates that are made of up to 100% post-consumer waste.

Printed labels are waterproof, highly

scratch, smudge and tear-resistant. Ink is also highly UV-resistant so printed labels can be used indoors or outside. Many of the most popular sizes are in-stock and ready for immediate shipment. Custom sizes are also readily available.

Andreas Hoffmann, managing director of Primera Technology Europe, explains the benefits of an in-house label printing system like the CX1000e: “Producing your own labels on CX1000e not only saves time and is far more convenient, but it almost always saves money, too.”

The second innovation Primera is showcasing for the first time at Emballage is the new FX1000e Matrix Removal System, the perfect accessory to the CX1000e Color Label Printer. In a single automated process

the FX1000e removes the waste label matrix while slitting and rewinding the printed labels to finished rolls. The FX1000e is available either with a single or double rewinder mandril.

“Emballage is the first European show where we present the CX1000e in combination with the FX1000e. And we look forward to demonstrate to all show visitors how easy it can be for manufacturers and distributors to be flexible and independent when it comes to high-quality label production,” says Andreas Hoffmann.

Complete product details are available at www.primeralabel.eu. Follow Primera on Facebook at www.facebook.com/primeraeurope and on Twitter at www.twitter.com/primeraEU. J

Hybrid System For Food Labelling Given Green Light onsumers will be able to make healthier choices about the food C they eat with the introduction of a new, consistent system of front of pack labelling, according to UK Public Health Minister Anna Soubry. The announcement of the proposed system – a combination of guideline daily amounts (GDA), colour coding and high/medium/low text – comes after a three-month consultation with retailers, manufacturers and other interested parties on what a consistent, clear front of pack label should look like.

Many retailers already use variants of a hybrid system, and some provide only GDA. However they each display the information with different visuals, colour and content making it hard for consumers to compare foods.

The UK Governments are now working with industry and other partners to agree the detail of the system and make sure they use

consistent visuals to show – on front of packs – how much fat, saturated fat, salt and sugar, and how many calories are in food products.

“The UK already has the largest number of products with front of pack labels in Europe but research has shown that consumers get confused by the wide variety of labels used,” points out Anna Soubry. “By having a consistent system we will all be able to see at a glance what is in our food. This will help us all choose healthier options and control our calorie intake.”

She adds: “Obesity and poor diet cost the NHS billions of pounds every year. Making small changes to our diet can have a big impact on our health and could stop us getting serious illnesses – such as heart disease – later in life.”

The new label is expected to be in use by summer 2013. J

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AutoCoding Systems - PPMA 2012 Review t was AutoCoding Systems’ second year at Iwide the PPMA Exhibition demonstrating its range of packaging line automation solutions. The range of equipment integration demonstrated at the show illustrated the versatility of the solution and confirmed AutoCoding Systems’ commitment to continue to expand the functionality of the solution, making it adaptable to all types of factory environment.

Visitors were able to witness at first hand the ease at which the system sets up and controls all the devices on the packaging

The AutoCoding system line terminal sets up and controls all types of packaging line devices.

line quickly and with limited human intervention. The benefits of the newly developed “paperless” quality system, now included as standard with AutoCoding, were immediately recognised. By automating the manual quality checks that have to be undertaken throughout a job run, the amount of physical paper records is greatly reduced. The automation of in-line and offline quality processes enables data to be captured in the audit log for use in subsequent reports.

Although AutoCoding Systems were pleased with the level of new enquiries received during the show, they were also delighted to welcome existing customers to the stand, as well as have the opportunity to continue to build relationships with existing and prospective OEMs. Mike Hughes, Managing Director, explains: “Our business is dependent on good working relationships with a wide range of companies in the areas of packaging, coding and labelling. We are always keen to meet new partner companies who would like to add value to their product offerings. The PPMA exhibition has proved to be an ideal location to meet up with all the major players in coding and

AutoCoding Systems’ “paperless” quality module automates in-line/off-line QA/QC processes with data capture and subsequent reporting.

labelling, as well as packaging equipment providers.”

AutoCoding Systems offer solutions for all FMCG manufacturers, small or large, whether they are looking for an entry level application to manage product specific coding information or a more robust industrial application for complete set-up and control of all packaging line devices.

For more information, contact Janet Harrison on Tel +44 (0)1928 790444, Email janetharrison@autocodingsytems.com. J

I PACKAGING DEVELOPMENT

Pukka Pouches From National Flexible he challenge of working with an iconT ic brand on a new product project places a large amount of responsibility

which was made difficult by art-working restrictions conflicting with the printing requirements of the pouch format.

with any packaging supplier.

A specialist herb, spices and baking ingredients supplier, required a packaging partner who would be confident in developing a new pack format whilst adhering to strict guidelines laid out by the brand managers and delivering the project within tight deadlines.

National Flexible working alongside brand, design and management specialists NXL Design, were able to deliver a new pouch format that required extensive pack development and innovation. The quality of the packaging had to match the aspirational values of the Jamie Oliver brand, 38

FOOD & DRINK BUSINESS EUROPE, OCTOBER 2012

According to Daniel Wyness, at National Flexible: “The tight brand guidelines gave little room for manoeuvre when developing the packs, however the communication, experience and technical expertise throughout the workflow between NXL and National Flexible created a smooth transition to a new pack format, meeting delivery targets and production fulfilment.”

The integrated relationship between NXL Design and National Flexible has been proven to reduce packaging development costs associated with new product launches. To find out more about National Flexible’s integrated packaging design and supply services call +44 (0)1274 685566 or visit www.nationalflexible.co.uk. J

Check Out Invopak’s New 100% Oxy-biodegradable Range From Cheko! s the largest packaging supplier in A the UK, Invopak recognises the industry’s need to take environmental

ations are a key issue in our industry.

The sheer volume of packaging that is used in the UK means efficient disposal issues into consideration when sourcing and recycling is vital. Cheko’s products new suppliers. It has recently offer our customers a cost effective, announced a distribution agreement viable alternative to ‘environmentally with Polish company, Cheko, to stock friendly’ plastic products currently its oxy-biodegradable square and recavailable.” tangle plastic buckets.

Invopak will be stocking a compreEstablished in 1988, Cheko claims to hensive range of Cheko’s containers be the first manufacturer to produce ranging in size from 1-11 ltrs. Products oxy-biodegradable plastic containers can be digitally printed or in-mould that are 100% eco-friendly. Thanks to labelling (IML) can be applied - even to the special addition of the modifying short runs. Cheko’s 20 production lines agent d2w® to polypropylene, Cheko’s at its factory in Wloclawek, to the west containers decompose into water, carof Warsaw, also offer both paper and Sales director, Scott Sandilands, with a selection of Cheko bon dioxide, biomass and trace eleplastic labelling facilities - meaning products stocked by Invopak. ments in just a few years, instead of Invopak’s customer’s have a variety of clogging up landfill sites for years on labelling methods at their disposal. end. porates a tamper evident feature for added For further information on Invopak’s Cheko’s products are all made from food security. range of plastic containers contact the sales grade polypropylene and contents are proInvopak’s sales director, Scott office on 0161 366 4451 or enquire online tected through a collar system which incor- Sandilands, says, “Environmental consider- at www.invopak.co.uk. J I FOOD SERVICE

Onyx Retail Park is Absolutely Fabulous Site For a Restaurant ighteen months ago a former colliery E works in South Yorkshire was nothing more than a strip of bare land. Today, thanks to developer Onward Holdings, the Manvers site is home to a thriving retail park that is attracting customers in their droves. Due to its enormous success the search is now underway to find a restaurant or diner that will enhance even further the Onyx Retail Park’s existing culinary range.

Naturally, the park has already successfully attracted a large number of high street food retailers eager to take advantage of the opportunities the site presents. However, Onward Holdings is now keen to find a suitable restaurant, café or snack bar to balance out the diversity of food offering on site. Established businesses already located at the park include Subway, Greggs the Baker, Domino’s, KFC and Costa Coffee but there is still tremendous demand for a franchise or independent sit-

down restaurant to complete the mix.

Onward Holdings director Neil Storey comments: “The interest and take up of units has been higher than originally anticipated. Tenants are reporting excellent trading figures with one of the units recording triple the turnover that was expected. Part of the success seems to be down to the high level of passing vehicles and on-going housing developments which has created a ready

FOOD & DRINK BUSINESS EUROPE, OCTOBER 2012

market, crying out to be serviced.”

According to figures drawn up by Rotherham Metropolitan Borough Council an impressive 18,000 vehicles pass the Onyx site each week day. Visitor numbers to the area are also excellent with the RSPB nature reserve and wetlands attracting in excess of 95,000 people per year.

The Onyx Retail Park, based in WathUpon-Dearne, comprises 17,500 square feet of retail space and is located midway between Rotherham and Barnsley.

Units for the Onyx Retail Park come complete with A3 planning permission.

Units are available in configurations ranging from 1,000 to 6,000 square feet and retailers can enjoy a range of sensible lease terms starting from five years upwards with realistic rentals from £15 per square foot.

Promotion of the site is handled by Andrew Miller Chartered Surveyors of Sheffield. For further information contact: 0114 236 2340 or email andrew@andrew miller.co.uk. J 39

I SAVOURY SNACKS

Intersnack Group Plots UK Expansion With annual sales of Eur1.5 billion and employing 6,000 people, Germany-based Intersnack Group is one of the largest manufacturers of savoury snacks in Europe. he privately owned company was founded in 2008 and is headquartered in Dusseldorf. It produces about 400,000 tonnes of snack products a year and has businesses in 14 European countries. The product range encompasses potato crisps, nuts, baked products and speciality products. Intersnack sells snack foods under various brand names such as Chio, Funny-Frisch, Bohemia, Felix, Monster Munch, Vico, Pom-Bear and Penn State, and is also a major private label manufacturer.

T

UK Business Intersnack is also a growing player within the £2.5 billion UK savoury snacks market, manufacturing under its own brands as well as private label. Employing around 400 people, the UK business is headquartered in Stanley, County Durham, but also has sites in Corby and Haverhill.

With turnover currently around £80 million, Intersnack UK has expanded substantially in the past three years through a combination of organic growth and acquisition.

In 2009 it acquired the Percy Daltons peanut business in Haverhill and the West Midlands-based Imperial Snack Foods The UK business commenced a new phase of development following the appointment of Richard Robinson as managing director in 2011. The senior management team has since been strengthened and its three key brands – Pom-Bear, Imperial and Penn State - have been re-launched. To support its expansion in the UK, Intersnack also recently invested £50,000 in new innovation facilities at its base in County Durham.

Although the UK savory snacks market is dominated by PepsiCo, through its Walkers business, and KP Snacks (part of United Biscuits), Richard Robinson is confident

that Intersnack can grow organically. “We are investing a seven figure sum across our three sites this year,” he says. Investment in news products and marketing has also been increased.

“Snacks is one of UK grocery’s most exciting and innovative sectors and we’re proud at Intersnack to have the imagination, vision and resources to enable us to drive new value and ideas into the category for both our customers and consumers,” he remarks.

Irish Market Leader Intersnack is now leader in the Irish savoury snacks market after taking control of Largo Foods. Largo Foods is the largest savoury snacks manufacturer in Ireland and has a market share of about 49%. In addition to its strong brands portfolio, which includes Tayto, Hunky Dorys, King, Sam Spudz and Perri, Largo Foods also produces private label products.

Bid For KP Snacks To strengthen its UK business and to consolidate its European market position, Intersnack is reported to be considering making a bid for KP Snacks, the snacks diviFOOD & DRINK BUSINESS EUROPE, OCTOBER 2012

sion of United Biscuits. Operarting four factories and employing about 1,500 people, KP Snacks is the second largest bagged snack company in the UK and has shown consistent top and bottom line growth for the last five years. Its portfolio includes

household brand favourites such as McCoy’s, Hula Hoops, KP Nuts and Skips, together with a range of other well known brands ripe for development like Phileas Fogg, Space Raiders, Nik Naks and Wheat Crunchies.

United Biscuits’ current joint owners, private equity companies Blackstone Group and PAI Partners, recently separated UB into two distinct businesses – one focused on biscuits and the other on bagged snacks – prior to disposal of the two units. UB was offered for sale in 2010 with a price tag of about £2 billion but the auction process was unsuccessful. Blackstone Group and PAI Partners acquired UB for €1.6 billion in 2006. J 41

I SAVOURY SNACKS

Innovation is Key Ingredient at Largo Foods Largo Foods, Ireland’s largest crisps and snacks manufacturer, is seeking to protect its domestic market position against strong, multinational rivals while also developing export sales. stablished in 1983, Largo Foods controls about 50% of the Eur210 million crisps and bagged snacks market in the Republic of Ireland. Largo Foods has a turnover in excess of Eur100 million and operates two factories in Ireland.

The largest plant, based at Ashbourne in County Meath, focuses on potato based products and sources over 30,000 tonnes of potatoes from Irish farmers annually, which equates to approximately 10% of the country’s annual potato crop. The second factory based at Gweedore in County Donegal makes extruded and fried savoury snacks.

The highly automated Ashbourne factory now concentrates on higher volume products with longer production runs, leaving Donegal to focus on niche type products usually with a higher export element.

The company’s four main brands - Tayto, King, Hunky Dorys and Perri – allow it to cover all key market categories and to compete across the price spectrum from economy through to premium.

E

Development Largo Foods has developed through a combination of organic growth and acquisitions.

The Perri brand was bought in 1984 and the Donegal-based Irish Snack Foods business was acquired in 1996. However, the most significant deal was the purchase of the Tayto and King brands for Eur62 million from C&C Group in 2006.

This deal made Largo Foods the brand leader in snack foods in the Republic of Ireland. However, the once dominant Tayto brand was in decline as its market share was being steadily eroded by imported products.

Largo Foods has since successfully revitalised this iconic Irish brand.

in among the top five brands of crisps/snacks. Largo’s Tayto brand is the market leader and Hunky Dorys is also in the top five.

Largo Foods also has to compete with other private label suppliers, namely: United Biscuits, Kolak Snack Foods and the Tayto Group, the Northern Ireland based company that holds the rights to the Tayto name in the UK and also owns the Golden Wonder and Real Crisps brands.

Innovation Largo Foods has a proven track-record of successful product innovation, which has enabled it to compete both at home and abroad with its much larger, multinational rivals Largo Foods’ strategy is to try and differentiate its branded products through imaginative marketing and through their taste and flavour.

For example, to cater for more health conscious consumers Largo Foods has developed Velvet Crunch, a range of low calorie (82 calories per pack) snacks which use 70% less oil. The company has also developed a range of wholegrain rice chips branded as Tayto Occasions in Ireland and as Wholly Crunch in the UK. Another recent innovation is Love Bites, which are low in calories and

based on a mixture of rice and maize to produce a distinctive texture and eating quality.

Another innovative move by Largo Foods is the development of ‘Tayto Park’, an outdoor visitor centre and heritage park built on land adjacent to the Largo Foods factory in County Meath. Featuring wild animals, Indian villages and landscaped gardens, Tayto Park allows visitors the opportunity to go behind the scenes to see where Tayto crisps are made via an enclosed walkway constructed above the factory. Believed to be the first facility of its kind by a snacks manufacturer in Europe, the tourist attraction is helping Largo Foods to maintain brand loyalty and to recruit a new generation of consumers.

Alliance With Intersnack Largo Foods has also been helped in its quest to protect its domestic market leadership while also building export sales through its relationship with Intersnack, one of Europe’s largest snack manufacturers. Largo Foods has been co-operating with Intersnack for a number of years since the German group acquired a 15% stake. Intersnack has subsequently increased its shareholding. The alliance has been highly beneficial through the sharing of knowledge and expertise, and allowing Largo Foods access to Intersnack’s international distribution network.

Recent Expansion Largo Foods continually invests in the region of Eur2.5 million annually in its plants to add capacity where needed, improve efficiency and increase flexibility for new product development’ The Irish snacks manufacturer recently completed a Eur3 million investment to expand its packaging operations, including new fully automated packaging systems for extruded and fried savoury snacks, at its manufacturing facility in County Donegal.

The plant had earlier been extended following an earlier investment of Eur2.2 million on a new rice and tortilla based snack-food manufacturing line. Approximately 70% of the Donegal site’s output is exported, principally to the UK. J

Stiff Competition Largo Foods faces stiff competition within the Irish snack foods market from large multinational manufacturers with strong brands - PepsiCo (Walkers, Doritos, Red Sky, and Sensations), United Biscuits (KP, Phileas Fogg, Hula Hoops and McCoys), Kellogg (Pringles) and Manhattan (Manhatan). Walkers, KP and Pringles rank FOOD & DRINK BUSINESS EUROPE, OCTOBER 2012

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I ROBOTICS

Tekpak’s Robotic Design Improves Productivity at Largo Foods ekpak Automation, the UK and Ireland T based high speed packaging machinery specialist, has recently provided Ireland’s leading snack food manufacturer, Largo Foods (part of the Intersnack Group) with a robotic pick and place solution for loading bagged snack products into shelf ready cartons or multipacks.

The investment has reduced labour costs associated with manual case packing and increased throughput on the line by providing a continuous packing process.

John Donnelly, Operations Director at Largo Foods, says: “The investment led us to automate an off-line (WIP) production process, significantly improving productivity, reducing the production lead-time from 5 days to 1 day and increasing packing efficiency by 30%.”

Flexible Solution As a selected manufacturing partner, Tekpak was asked to provide a flexible, fast

to size-change and easy to operate automated packing solution for a bagged corn snack product from the Organix range, in both 15g and 20g bags. The project was complex due to the varying case sizes and product formats. Also the need to retain some semiautomated hand packing for loading to cases, meant that the design of the system had to be super flexible, with special control logic features to allow the system to change formats with minimum size change and designed ergonomically.

Working closely with Largo Foods for a number of months, Tekpak designed and built a complete solution that was customised to give maximum flexibility. The line incorporates integrated carton erectors that can handle three different carton sizes.

It utilises specially designed seal check units to verify the bag seals and a robotic pick and place system for bags to multipack flow wrapper and auto assisted manual pack stations, as well as case pack bags to shelf ready cases.

John Donnelly adds: “Tekpak quickly understood our project brief and came up with a solution that minimised the expenditure needed but maximised the potential investment return from the automation.”

Tekpak manufactures robotic pick and place and product collation systems for packaging applications specifically for large scale, high volume manufacturing companies in the food sector. The company specialises in designing and manufac-

Complete line.

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FOOD & DRINK BUSINESS EUROPE, OCTOBER 2012

Product in-feed.

turing lines that require a higher degree of design innovation - where an off the shelf solution will not do the job. Tekpak build complete lines including all the elements that its customers need to get the product from production line to pallet.

For further information on Tekpak visit www.tekpakautomation.com/testimonials. J

I SPIRAL FREEZING & COOLING

50 Years of Experience Keep JBT FoodTech Ahead riginal FRIGoBELT® in Frigoscandia O freezers from JBT FoodTech are freezing half the world’s production of frozen

food, as well as a sizeable share of the world’s chilled food. This is what JBT FoodTech has done for 50 years and it keeps the company ahead.

JBT FoodTech never stops finding ways to enhance your performance, hygiene, reliability, flexibility and throughput. Its business is always about developing better ways to help you create successful food products, and at the same time JBT FoodTech gives you the lowest Cost of Ownership.

Safe and Efficient Freezing With Frigoscandia

With outstanding experience and a market

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share of freezing more than 50% of all frozen food products in the world, JBT FoodTech has the ability and knowledge to exactly meet customer requirements with the modular design of its Frigoscandia

GYRoCOMPACT® chiller and freezer.

This technology has been accepted as the industry benchmark for quality, hygiene, operating simplicity and reliability.

Combine this with an efficient and reliable refrigeration system from JBT FoodTech. This is one of the most important investments you can make in your process set-up. The high-performance Frigoscandia LVS FRIGoPAK® is a

proven, performance-matched refrigeration system that benefits you immediately and in the long-term.

The Best Gets Even Better

With more than 8 000 installs and 2 million meters in operation of its world-leading Frigoscandia FRIGoBELT® – Frigoscandia is once more revolutionizing freezer and chiller technology with the strongest ever

self-stacking spiral. The combination of the new Frigoscandia FRIGoDRIVE® M system and the new Frigoscandia FRIGoBELT® NOVA with new improved side link technology, takes performance and reliability to the next level. This will give you higher capacity, more uptime and lower operating costs as well as rapid return on investment and maximum future flexibility in your food processing business. J

Acticool – The Active Spiral Cooler for the Bakery Industry he bakery industry makes extremely T high demands on issues like process safety, reproducibility and process hygiene, in particular with regard to fresh bakery products. For these special applications, Heinen has thoroughly analyzed the process of active cooling and relaunched it with the most modern technology, combined with a 30 years experience in industrial proofing, cooling and freezing.

In the development phase, the focus was put on the process climate, as only a continuous climate control, working within narrow tolerances, can guarantee a product result which is reproducible at any time. All three parameters – air temperature, air humidity and air speed – can be controlled according to the requirements of the product and in view of an optimum product quality and use of energy.

Important for the developers was to generate a process climate being independent from the outside or production

room conditions to ensure identical process conditions throughout the year.

This is essential because the product outfeed temperature is allowed to vary only in very small tolerances for high quality during downstream processes like slicing (less product loss).

Another reason for developing the active spiral cooler is to achieve a significantly improved quality of the end product. The air humidity in the spiral cooler can be controlled in narrow tolerances with at the same time high relative humidity. Conventional cooling processes tend to desiccate the product due to either high air speed or too low temperatures. By actively influencing this climate parameter in the Heinen spiral cooler, a desiccation of the product to be cooled can be reduced or even completely prevented.

The use of multi-stage filters and (as an option) with UV-V light disinfected air can prevent to a great extent a contamination of product and conveying system during the cooling process. Overpressure within the system additionally avoids contamination by non-filtered air entering the insulated enclosure. Horizontal or laminar air flow guarantees a gentle, soft and uniform cooling of the product. The result is an extended shelf-life of fresh bakery products due to increased process hygiene.

A complex software controls FOOD & DRINK BUSINESS EUROPE, OCTOBER 2012

the entire process to exactly maintain the required climate conditions. This software also controls the optimum air mix so that the energy required for the cooling process is reduced to a minimum.

Basic climate data of the active bread cooler: * Air temperature: +15 C to +25 C (adjustable) * Temperature tolerance: +/- 0.5 K * Air humidity: 55% to 75% relative humidity (adjustable) * Humidity tolerance: +/- 5% * Air speed: < 1.0 m/s (adjustable).

The system is available at belt widths of 660 mm, 760 mm, 914 mm and 1067 mm. The number of tiers can vary between 12 and 32 at a maximum bread loaf height of 180 mm.

For more footprint flexibility, the customer can choose between normal radius and reduced radius execution as well as single or double drum system with upward or downward conveying. Possible retention times ranging from 30 to 240 minutes at belt speeds between 5 m/minute to 25 m/minute can be chosen according to the required outfeed product temperature. The complete system is made of stainless steel, the belt is available in stainless steel or synthetic material. J 47

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& HYGIENE

PRODUCT INTEGRITY & INSPECTION SYSTEMS

What is the Value in Product Integrity?

By Stephen Jacobs, Global Product Manager, Fruit and Vegetables, Bühler s consumers and retailers continue to A demand uniformity in food products and health and safety regulations become increasingly stringent, fruit and vegetable processors in particular are facing increasing pressure to guarantee product integrity.

Food safety standards pose a significant challenge to processors and a less than stringent approach to the issue can have disastrous consequences, not just for the processor, but across the entire supply chain financially, legally and in terms of reputation.

in the form of bugs, cigarette ends, vermin and animal droppings and other materials, including seeds, stalks, twigs, stones, wood, plastic and metals, all of which can find its way into the crop at harvest or during later stages of processing.

There is a clear cost benefit to high quality sorting equipment, in safeguarding the processor against product contamination risks and ensuring the best quality product at the end of the line. This is where Bühler’s optical sorting solutions can be the most appropriate choice for processors.

Why SORTEX?

Gaps in control measures can compromise the safety and cleanliness of the end product, which can ultimately pose a health and safety risk to the consumer.

Furthermore, even a single instance of poor food safety management can have huge financial impact on the brand, retailer and processor, through product recalls, wastage, reputation damage and, in the most serious of cases, significant legal costs and fines.

This means that there is a significant reputational and financial incentive to invest in effective inspection systems to ensure the best quality and safe end product.

Sorting the Good From the Bad

The sorting process is a vital part of any production line’s integrity measures, particularly for fruit and vegetable producers, where there can be a greater risk of foreign material (FM) or extraneous vegetable matter (EVM) contamination. These can come 48

Bühler’s optical sorting technology provides processors with an efficient and effective guarantee of safety and quality in the end product. The SORTEX E1D, E1A and K provide leading edge technology, offering processors a flexible solution at any point in the processing line. Whether implemented before or after blanching, after freezing or in the packing line, SORTEX technology can be placed to suit the specific processor’s needs.

Bühler’s SORTEX equipment combines Enhanced InGaAs technology cameras, high resolution bichromatic cameras and PROfile (shape) technology to provide the most effective performance.

PROfile (shape) technology offers the most efficient and flexible shape recognition system available, to detect foreign material by both size and shape.

SORTEX high-definition, colour bichromatic cameras are customdesigned and built in-house. They allow the product to be viewed from one or two sides, improving detection for a high quality sort. In addition, Bühler’s InGaAs technolFOOD & DRINK BUSINESS EUROPE, OCTOBER 2012

ogy allows producers to identify a wider range of contaminants than previously possible, particularly for packaging fragments.

Finally, Bühler’s PROfile (shape) technology intelligently detects and digitally separates touching objects, allowing for better shape detection.

Bühler’s SORTEX optical sorters offer the added benefit of a low cost of ownership. SORTEX sorters do not have expensive components that require frequent replacement – a significant contribution to on-going expenditure. Similarly, Bühler’s sorting technology is hard-wearing, with very few moving parts, resulting in lower maintenance costs, enabling the processor to reduce their manufacturing costs. J

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I PRODUCT INTEGRITY & INSPECTION SYSTEMS

Demand For In-process Contaminant Removal is Rising Significantly

By Hitesh Hirani,Group Technical Director of Lock Inspection ith food and pharmaceutical manufacturW ers looking to extract every ounce of value from their assets, the potential benefits

cle 18 requires that traceability shall be established at all stages of production, processing and distribution, it has become essential for manufacturers to incorporate into their processes the total traceability of ingredients, products and batches. It also places a legal responsibility on ethical food business operators to have systems and procedures in place which can identify an affected product and enable effective isolation, quarantine, or if necessary, complete product recalls.

Lock Inspection’s INSIGHT range of metal detectors, which deliver class leading sensitivities to magnetic and non magnetic metals, are designed to satisfy growing demand for preventive detection and removal of metal fragments during the production cycle to avoid downtime and damage to expensive process machinery. The range not only ensures that metal contaminants are identified and rejected, but the integral Datachek data management software provides comprehensive real time product, batch and performance data on single or multiple lines, with networking capability for up to 40 systems, ensuring full traceability. These unique features help manufacturers stay compliant and increase their competitive edge when demonstrating to retailers their competency over traceability. Retailers are keen to ensure that they have the necessary systems and controls in place to minimise the incidence of foreign body contamination and ensure they are able to retain consumer confidence in the event of a food safety incident.

The alternative is clear, inaction could, in the event of a contamination event, lead to termi-

nation of contracts and loss of brand integrity, not to mention punitive legal action.

The food and pharmaceutical range of detectors which is made up of 6 platforms, each one can be built to specific customer requirements developed to suit a wide range of applications detecting product at all stages of the manufacturing process. For Further information visit www.lockinspection.com. J

Sick Sensors ‘See’ Difficult Objects Reliably

speeded with less downtime, as the sensor repositioning is usually not required.

to be accrued by removing contamination before valuable manufacturing time has been wasted are very attractive and the demand for in process contaminant removal is rising significantly in the industry. Couple this with the governance of EU regulation 178/2002 which states the general principles and requirements for food law, within which arti-

Lock Inspection's INSIGHT range of metal detectors identify reject and provide real time product and batch data to ensure full traceability.

ifficult shapes, flat or transparent D objects that have previously defied reliable detection can now be seen clearly with the welcome new MultiLine and MultiPac sensors from Sick. Their innovative design reduces the risk of machine downtime and improves productivity by eliminating the possibility of false or misleading signals.

The Sick MultiLine photoelectric sensor ensures a stable and continuous detection signal from the leading to the trailing edge of a product, even when surfaces are glossy, flat, or contoured. Its innovative twin light50

beam technology consistently detects lowprofile, uneven or glossy product surfaces for example, vacuum foil coffee packs, wrapped chocolate bars or soup sachets.

The MultiLine detection phase starts when both lines detect the object and detection stops when both no longer signal the object, from leading edge to leaving edge. With MultiLine, a greater object throughput is possible, as objects may be placed on the belt with smaller gaps between them, improving productivity.

Additionally, changeover between lines is FOOD & DRINK BUSINESS EUROPE, OCTOBER 2012

INSIGHT VF metal detection system for inspection bulk materials and ingredients, featuring sealed flap reject and test sample catcher grid.

The Sick MultiPac photoelectric sensor offers a promising new solution to the

QUALITY problem of detecting clear-shiny, dark-glossy or multi-reflective surfaces in automated packaging and logistics operations, especially where there are complex curved shapes or transparent outlines.

The MultiPac therefore promises to improve productivity in operations where highly efficient checking and control is required, for example detecting PET-foil six packs or shrink-wrapped transparent bottles or pallets.

The MultiPac operates from one fixed position without the need for reflectors. It can be mounted up to a height of 500mm above the conveyor, enabling detection of a wide variety of shapes and heights. On multiple-product lines, time-wasting adjustments for differing pack heights are therefore eliminated. For more information contact Andrea Hornby on 01727 831121 or email andrea.hornby@sick.co.uk J

& HYGIENE

Boost Productivity With Enhanced Software For Checkweighers â&#x20AC;&#x201C; Request Free Brochure equest your free checkweigher softR ware brochure and learn how enhanced software features can protect against product failures and costly recalls. Mettler Toledoâ&#x20AC;&#x2122;s informative guide presents an overview of the software features and solutions available for checkweighers. It covers topics including advanced product handling such as identifying open or defective product to avoid unnecessary line stoppages. It also outlines connectivity and data security solutions which provide full product traceability, safeguarding data collected for effective auditing procedures.

Checkweighing as a manufacturing process not only ensures final product remains compliant to weights and measures regulations but also boosts productivity by reducing wastage in production. It also achieves greater product consistency through tighter production tolerances which can increase your bottom line.

Request your free brochure by emailing your contact details to enquire.mtuk@mt.com J

FOOD & DRINK BUSINESS EUROPE, OCTOBER 2012

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I TEMPERATURE MONITORING

Tinytag Data Loggers Help Maintain Quality Standards inytag temperature and humidity T data loggers are used during the manufacture, storage and transportation of a wide range of food and drink products to help achieve quality standards and compliance with specified regulations and procedures, including HACCP controls. Manufactured in the UK, Tinytags are robust, compact and cost-effective, and information recorded by the data loggers enables conditions to be measured, documented and validated. Recorded data from stand-alone battery powered Tinytags is downloaded to a PC via a USB cable for viewing with easy to use Tinytag Explorer software.

The Tinytag radio data logging system is ideal in larger scale or dynamic logistics

operations, as data is automatically sent using wireless communications to a receiver connected to a PC for immediate viewing.

For example, award-winning brewers

Timothy Taylor is using the radio data logging system to help ensure that its Yorkshire Beers are enjoyed in perfect condition.

The radio loggers monitor the temperature of the coolers in the delivery fleet, providing evidence that the beers are well kept throughout the supply chain. The loggers store data locally when the vehicle is out, then automatically offload the data once returned to the depot and within range of the Radio Systemâ&#x20AC;&#x2122;s mesh network.

For further information contact Gemini Data Loggers (UK) Ltd, Scientific House, Terminus Road, Chichester, West Sussex, PO19 8UJ, UK. Tel +44 (0)1243 813000, Email info@tinytag.info or visit www.tinytag.info. J

DATAPAQ Food Tracker With Humidity Sensor ATAPAQ has introduced a D new generation of the Food Tracker temperature profiling system with a humidity sensor for even more comprehensive data on food processes. The capacitive sensor provides both relative humidity and temperature data in processes from -50 to 200 C. It is ideal for baking applications such as dough proving where the moisture level is critical to product quality and yield. The humidity sensor is connected to the data logger along with up to eight type T thermocouples. While the logger is protected by a thermal barrier, the sensors can be placed directly within the product, on the surface, or in the air.

The Food Tracker enables HACCP-compliant documentation.

The data logger has a large non-volatile memory that can be read out when the device exits the process. Additionally, an optional integrated radio transmitter provides the ability to send real-time temperature data to receivers outside the process, enabling instant parameter review and adjustment.

The tested and proven radio telemetry system operates on license-exempt frequencies and is approved for use in Europe and other regions. The accompanying Insight software enables comprehensive analysis including functions such as microorganism lethality calculations (Fo, Pu).

A choice of thermal barriers affords suitable protection in static and conveyor ovens, steam cookers, deep fat fryers, and freezers.

Further accessories include food trays and thermocouple jigs. J 52

FOOD & DRINK BUSINESS EUROPE, OCTOBER 2012

I CASE STUDY

From Consulting to Realisation – Process Plant For Fruit Concentrates

By Bernhard Scheller, Managing Partner, Ruland Engineering & Consulting or IPRONA AG, RULAND Engineering & Consulting GmbH completed in two steps the equipping of a newly built facility with process plants for fruit processing and refinement.

To find out which course of action would be best for equipping their new production facility, IPRONA decided on a consulting process with a concept phase and a second detailed engineering phase.

RULAND started by recording the current methods of production and generated a block diagram which shows the complete flow of materials, from raw goods reception/storage up to the production lines for the finished products. The immense knowledge of the staff was used to discuss details and concepts.

Based on the block diagram, RULAND developed each area into a PI diagram.

Different automation concepts were elaborated and decided on. To avoid collisions of the pipeline routes, a basic 2D piping alignment planning for all media was included.

F

Bernhard Scheller, Managing Partner of Ruland Engineering & Consulting.

The mother-juice can be concentrated in two different plants: a thermal concentration plant and a cold concentration plant.

At the finished product lines, the main products like pulp-, puree- and juice concentrates, with or without fruit pieces and components, can be mixed according to individual customer wishes in mixing tanks of varying size, pasteurised in diverse heat exchangers and filled aseptically.

Project Realisation

Production Process

IPRONA processes varied fresh fruits as well as frozen fruits, which are processed to ‘mother-juice’. The fruits are pressed and treated to clear or naturally cloudy juices, before they are short-term heated and stored in sterile tanks.

Mixing tank group.

single batch, switching to another filling system can be done simply.

For the cleaning of the production plants, RULAND built two central CIP plants. Finished product lines and juice generation are strictly separated, carryover is eliminated. The complete 13 cleaning circuits were distributed in such a way, that overlap in the individual areas was minimised and production efficiency maximised.

In addition, RULAND implemented a concept to use energy from water vapours from the thermal concentrate plant.

To control the complex processes the Siemens system PCS7 is used and combined with a RULAND-developed MES system, which bridges the PCs with IPRONA’s ERP system. In addition, all components from subcontractors which have an individual automation, are integrated into the control system via a common interface, developed by RULAND. This allows for a common operation and supervision of all plant units.

More than 50 km of piping was installed on five building levels. The whole project was designed in 3D which allowed for piping installation to be optimised both from a process engineering perspective as well as product loss. For further information visit www.rulandec .de. J

RULAND was responsible for all production areas: the juice generation, the juice tank farm, the existing concentrate plants, the finished product lines and the CIPsupply of all plants.

Coaxial agitators in the mixing tanks ensure a homogeneous batch for the following continuous pasteurisation processes. To allow for maximum flexibility, depending on batch size and product needs, either plate- or scraping heat exchangers can be included in the process. Whichever is chosen, the resulting route is leakage-proof, so in parallel or crossing ways other production or cleaning may take place.

This flexibility is also seen when filling bag-in-box, bag-in-drum or stainless steel transport container by CIP unit. using sterile valve clusters. Within a FOOD & DRINK BUSINESS EUROPE, OCTOBER 2012

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I BEVERAGES

European Fruit Juice Industry Feels the Squeeze The EU fruit juice and nectars market is expected to decline by 1.9% in volume in 2012, continuing the contraction of the previous two years.

Andrew Biles, President of the European Fruit Juice

owever, the rate of decline is expected to decelerate, with the market stabilising by 2015 and recording marginal growth by 2017, according to the European Fruit Juice and Nectars Market Report from European Fruit Juice Association (AIJN) Although consumption declined by 2.2% to 10.7 billion litres in 2011, the market value was estimated to have increased by some 4%. The report, prepared by Canadean, is published bi-annually by the AIJN. It provides an overview of the fruit juices and nectars market and key developments across the EU 27 countries plus Norway, Switzerland and Turkey.

The AIJN has been active for over 54 years in Brussels as the representative association of the EU fruit juice industry, defending and promoting the interests of both processors and packers.

The EU accounted for just over a quarter of global fruit juice and nectars volume consumption in 2011. Worth about Eur26 billion, the EU value share is even higher at

H

Despite the recent difficulties, the overall outlook for the European juice and nectars market remains positive.

29%, reflecting the higher price per litre obtained in the region compared to Asia and Latin America in particular.

Germany is the largest market within Europe, accounting for 26% of consumption, followed by France, the UK, Spain and Italy. Orange remains the most popular juice and nectar flavour, accounting for close to 40% of total consumption.

The EU fruit juice industry is an international business, processing and packing fruit juice raw materials, such as orange, grapefruit, pineapple, cranberry and guava, sourced from around the globe. Carton packaging dominates the European market with a volume share of 65%.

Challenging Environment “In the last two years challenges abound in every consumer market in the world. The juice market is not alone. Energy costs and commodity prices – especially apple and orange, which more than doubled in price – remain overall at record high levels,” comments Andrew Biles, President of the AIJN. “The macro economic climate in the EU, where we operate, is under stress.”

He continues: “Thus the fruit juice industry needs not only to assist the consumer to make an informed choice to include fruit juice as part of a healthy, well balanced diet but also to strive to keep our products cost- and price-competitive.”

The industry is continuing to face escalating input costs. The AIJN is exploring ways to reduce import duties on the juice products imported into the EU. “In 2011, the industry paid about Euros 500 million in customs duties, and the consumer about Euros 5 billion VAT (sales tax) on our products! These seem to be large and illogical penalties for the consumer to pay on 5a-day products that the EU seeks to encourage its population to include in a healthy diet,” he points out.

Balancing Act Juice and nectar producers are playing a delicate balancing act between managing increasing overhead costs, due to commodity and logistical price hikes, and curtailing FOOD & DRINK BUSINESS EUROPE, OCTOBER 2012

Association.

retail price increases because of weak consumer sentiment and cautious spending.

This approach has brought some success with the EU fruit juice and nectars market returning to value growth in 2011 after two years of decline. Although volumes were down by 2.2%, value is estimated to have increased by 4%.

Market Potential According to the report, fruit juice and nectars continue to offer significant potential for value growth through the channelling of new investment behind value-added segments such as enhanced juices offering functional benefits and targeted at specific consumer groups. The ongoing consumer interest in health and wellness and the ageing population in many countries also offer good opportunities for increasing market segmentation.

“Our industry itself continues to find innovative blends and mixes to keep our products exciting for consumers who deserve a choice,” says Andrew Biles.

The report notes the potential for adding premium through marketing which emphasises product ‘health’ and ‘naturalness’, nutritional value/benefit or, for example, organic status or regional heritage.

Product innovation has focused on developing flavour mixes and this is expected to continue, allowing producers the opportunity for managing production costs, and also to highlight the functional benefits flavour mixes can offer consumers.

Healthy Outlook Despite the recent difficulties, the overall outlook for the European juice and nectars market remains positive. According to the AIJN report, although volumes will remain under pressure in the short to medium term, value gains should continue, driven by innovation in premium and functional products in particular, due to increasing consumer demand for high quality and healthy products, which the juice and nectars industry is uniquely well placed to serve. J 55

OEE Systems From London Electronics ondon Electronics makes flexible and L easy to use production monitoring systems, designed to help you get the best out of your plant and teams. You can see live data for your lines, so that you can act instantly if a problem should occur. This is essential in lean manufacturing environments, where a fast response to any drop in efficiency is critical.

Suited for these applications and more: • Calculating true live OEE on production lines • Logging reasons for stoppages • Charting OEE over time, so you can see trends • Calculating production line down time.

You can simply display the live production data on large overhead boards, or you can save the data in a database, to allow graphing and general data analysis.

See www.london-electronics.com for more details. J

Paragon Software Helps Glanbia Cut 106,000 Km From Delivery Routes lanbia, the global nutritionals and G dairy business group, is cutting 106,000 km a year from its delivery vehicle routes by using Paragon transport optimisation software to plan efficient deliveries. The routing software is also improving vehicle utilisation by 15 per cent and reducing the annual number of routes by 10 per cent. The spinoff is an overall reduction in CO2 emissions of over 100 tonnes per year and improved service levels to the marketplace.

Glanbia's transport challenge involves daily planning and optimising of same day direct to store deliveries that have a narrow two-hour 6am to 8am delivery window and Coldbox depot deliveries between 4pm and 6am the following day.

Paul Devlin, Glanbia's Consumer Foods Ireland Senior Route Planner says: “It's really important that we make the best use of our vehicle fleet and that loads are maximised and routes optimised. Paragon gives us the power to do that and, when used in 56

conjunction with our SAP business software, has resulted in efficiency gains across our dairy product delivery operation which spans the entire Republic of Ireland.”

The dairy operation runs six days a week between 6am and 10pm from the Ballitore, Co. Kildare distribution centre. It supplies major retailers and 145 agents, who are subcontracted to distribute Glanbia prodFOOD & DRINK BUSINESS EUROPE, OCTOBER 2012

ucts from the Coldbox locations. With more than 4,500 weekly deliveries across 136 routes, serviced by nine hauliers and contending with more than 250 individual delivery windows, Glanbia was keen to see how Paragon could improve the operation and improve efficiencies wherever possible.

Having first set up the base case with information about depots, agents, hauliers and customers to model the current routes and costs, Glanbia was then able to try out various scenarios aimed at improving efficiencies. Several options were tested involving more flexible delivery times for Coldbox locations, and the greatest efficiencies came from standardising Coldbox time windows at a regional level, whilst combining Coldbox deliveries with time-constrained direct store deliveries. As a result, routing efficiencies yielded a 15 per cent gain in vehicle utilisation, a 10 per cent drop in loads per week, and a fuel reduction equating to over 100 tonnes of CO2 per year. J