Food and Drink Business Europe

March 2013

Innovation fuels strong growth at NestlĂŠ

Food & Drink Business Website:

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C o n t e n t s

- 3 M ERGERS & A CQUISITIONS

- 41 M ARKET F OCUS

Coverage of British and international deals.

UK cider can move beyond its core market.

P AGE 11 PAGE 3

- 7 C OVER S TORY Innovation fuels strong growth at Nestlé.

Jorgen Buhl Rasmussen, CEO, Carlsberg.

R EGULARS Information Technology . . . . . . . . . . . . . . 16

Fiona Kendrick, CEO, Nestlé UK & Ireland.

Demand Solutions - Meeting the challenges of supply chain management.

Processing & Manufacturing . . . . . . . . . . . . . . . . . . . . . 17

Solid performance by Nestlé UK & Ireland.

PAGE 13 Quality & Safety . . . . . . . . . . . . . . . . . 18-27

Jerry Fowden, CEO, Cott Corporation.

Food Safe Lubricants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18-21 Changing times in the food testing industry. . . . . . . . . . . . . . . . . . 23

Logistics & Distribution . . . . . . . . . . . . 33-35 PAGE 4

- 13 B EVERAGES

Mark Allen, CEO, Dairy Crest.

Control & Automation. . . . . . . . . . . . . . . . 40

Cott focuses on diversification.

Bottling & Packaging. . . . . . . . . . . . . . 42-47

PAGE 37

Palletising & Pallet Wrapping . . . . . . . . . . . . . . . . . . . . . . . . 42-45

Ranjit Singh, CEO, 2 Sisters Food Group.

Materials & Ingredients . . . . . . . . . . . . . . 48

- 29 F OCUS ON I RELAND Irish food and drink exports reach record levels.

Top 50 Food and Drink Manufacturers in Ireland.

Managing Director: Colin Murphy Editor: Mike Rohan Sales Director: Ronan McGlade Advertising: Susan Doyle and Sylvia McCarthy

PAGE 7

Paul Bulcke, CEO, Nestlé.

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

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- 37 & 39 M EAT & P OULTRY 2 Sisters Food Group enters red meat market.

PAGE 8

New chief for Tulip.

Wan Ling Martello, CFO, Nestlé.

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FOOD & DRINK BUSINESS EUROPE, MARCH 2013

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M E E R R G G E E R R S S M HJ Heinz Sold For $28 Billion to Berkshire Hathaway and 3G Capital HJ Heinz Company is being acquired by an investment consortium comprised of Berkshire Hathaway and 3G Capital in a transaction valued at $28 billion, including the assumption of the global food group’s outstanding debt. The acquisition is the largest ever in the food industry.

& &

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

The per share price represents a 20% premium to Heinz’s closing share price of $60.48 on February 13, 2013, a 19% premium to Heinz’s all-time high share price, a 23% premium to the 90-day average Heinz share price and a 30% premium to the one-year average share price.

The transaction will be financed through a combination of cash provided by Berkshire Hathaway and affiliates of 3G Capital, rollover of existing debt, as well as debt financing that has been committed by J.P. Morgan and Wells Fargo.

Carlsberg Expands Further in China

Specialising in ketchup, sauces, meals, soups, snacks and infant nutrition, Heinz is one of the world’s leading food groups.

In its 2012 financial year, on a continuing operations basis, Heinz delivered:record sales of $11.6 billion, driven by 16% organic sales growth in emerging markets (41% reported) and growth in its top 15 brands and global ketchup. Net income increased by 19% to $1.09 billion.

Warren Buffett, chairman and chief executive of Berkshire Hathaway, says: “Heinz has strong, sustainable growth potential based on high quality standards, continuous innovation, excellent management and great tasting products. Their global success is a testament to the power of investing behind strong brand equities and the strength of their management team and processes. We are very pleased to be a part of this partnership.”

Alex Behring, managing partner at 3G Capital, comments: “We have great respect for the Heinz brands and the strong business that management and its employees operate around the world. We approached Heinz to explore how we might work together to expand the value of this storied brand.”

Carlsberg Group has launched a partial take-over offer for up to 30.29% of the shares in Chongqing Brewery Company at RMB20 per share. Carlsberg Group is already the largest shareholder in CBC with a current shareholding of 29.7%.

Upon the successful completion of the partial take-over offer, Carlsberg will have control over CBC and potentially up to 60% of the shares in CBC. The transaction will enable Carlsberg, as the controlling shareholder of CBC, to directly manage the company, drive greater synergies and leverage the expanded production foot-

Jorgen Buhl Rasmussen, president and chief executive of Carlsberg.

print across several new provinces in China. Carlsberg will look to strengthen CBC’s position in the market and build it into a world class brewer through the implementation of best practice systems and processes across the key areas of production and procurement, sales and marketing as well as finance.

The total purchase price for

the additional 30.29% stake in CBC will be around RMB2.9 billion (approximately DKr2.65 billion, Eur355 million). The purchase price corresponds to an EV/EBITDA of approximately 15.7x based on expected profits in the first year after completion of the transaction.

The transaction will be financed through existing facilities and may take up to 12 months to complete assuming the usual regulatory approval process.

“Our Asian business is very important for our long-term growth strategy and we are very pleased that we now can take this important step forward in China,” comments Jorgen Buhl Rasmussen, president and chief executive of Carlsberg. “We believe that through our commitment to develop CBC’s strong local brands, Shancheng and Chongqing, together with our successful track record of implementing best practices and processes, we will strengthen the business significantly, both operationally and financially.”

VION to Sell UK Red Meat and Poultry Operations to 2 Sisters Netherlands-based food producer VION has agreed to sell its red meat and poultry activities in the UK to Boparan Holdings, the holding company for 2 Sisters Food Group, for an undisclosed price. The deal follows the strategic decision made

by VION last year to dispose of its UK food operations to focus on its core food activities in the Netherlands and Germany and its global ingredients business, and the subsequent management buy-out of VION’s UK pork activities in January 2013.

Finsbury Food Group Sells Free From Business For £21 Million Finsbury Food Group, a leading UK manufacturer of cake, bread and bakery goods, has sold its Free From business for a total value of approximately £21 million to Genius Foods, the Edinburgh-based gluten-free food specialist. The disposal will allow Finsbury to focus on its core cake and bread businesses.

FOOD & DRINK BUSINESS EUROPE, MARCH 2013

The Free From business consists of two subsidiaries, Livwell and United Bakeries (the holding company of United Central Bakeries), which account for 14% of Finsbury’s group revenues. In December 2010, Finsbury entered in to a joint venture arrangement with Genius in respect of fresh gluten-free bread and an additional range of gluten-free products to be sold under the Genius brand. The Free From companies achieved total sales of £28.5 million for the year ended June 2012 and annual profit before tax of £0.6 million. The value of the net assets of the Free From business was £6.1 million on 29 December 2012.

Danone Expands in North Africa Danone has paid Eur543 million to take control of Moroccan dairy company Centrale Laitiere by increasing its shareholding from 28.2% to 67%. Danone has held its original stake since 2001.

This transaction represents a key step in Danone's development in Morocco and confirms the strategic appeal of markets in North Africa for the French food and beverage group.

Having raised its shareholding in Centrale Laitiere above the 40% threshold, Danone is required to file a mandatory takeover bid for the company's shares.

In 2012, Danone generated sales of more than Eur20 bil-

Franck Riboud, chairman and chief executive of Danone.

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N N E E W W S S lion, of which more than half were in emerging markets. The group holds top positions in healthy food through four businesses: fresh dairy products, baby nutrition, bottled water and medical nutrition

Aryzta Strengthens European Bakery Business Aryzta, the Zurich-based global speciality bakery group, is strengthening its position in Europe with the acquisition of Klemme, a leading bakery in Germany, for Eur280 million.

The strategic acquisition will substantially transform Aryzta’s European manufacturing footprint and greatly enhance its channel diversification and product capability in the region.

Established in 1991, Klemme operates seven highly efficient bakeries with multi-product manufacturing capabilities.

Klemme has approximately 1,400 employees. Its food range (2,500 bakery items) includes an assortment of bread rolls and ciabattas, croissants, sweet and savoury pastries, doughnuts and pretzels. Klemme’s revenue was Eur229 million for the year ending 31 December 2012.

The deal is in line with Aryzta’s strategy to target acquisitions which add new geographies, customers, channels and product capability. On completion, Aryzta will become a leading bakery player in the growing German in-store bakery sector and a leading partner manufacturer for well established European retailers in the specialty bakery sector.

This acquisition will substantially rebalance Aryzta’s historical under representation within European large retail and further position the company for future growth opportunities. It will strengthen Aryzta’s capabilities and allow the group to refocus its strategy in Europe by 4

growing market share in all consumer channels.

Ebro Acquires 25% of Italian Rice Company Ebro, the multinational food group operating in the rice, pasta and sauces sectors, is acquiring 25% of Riso Scotti, parent company of the Scotti Group, for Eur18 million.

Scotti is an Italian group specialising in the production and processing of rice and is the leader in risotto rice in Italy, and has a broad array of products that are sold under the Scotti brand in over seventy countries. Its portfolio includes numerous high value-added products (rice and soybean milk, rice biscuits, rice oils, ready meals, etc) targeted at the premium segment.

Based in Spain, Ebro has a presence in more than 25 countries in Europe, North America, Asia and Africa, through its extensive network of subsidiaries and brands. It is global leader of the rice sector and the second biggest pasta manufacturer in the world.

B B R R II E E F F turnover is around Eur330 million. Besides Norway, Kavli has companies in Sweden, Finland, Denmark and the UK.

US Acquisition For Nestlé Health Science Nestlé Health Science, a fully owned subsidiary of Nestlé, has agreed to acquire the business of Pamlab, a US-based company with an innovative portfolio of medical food products for use under medical supervision in the nutritional management of patients with mild cognitive impairment, depression and diabetic peripheral neuropathy.

The acquisition further strengthens Nestlé Health Science's capacity to deliver personalised healthcare to address chronic medical conditions through nutrition, especially in the areas of metabolic health and brain health.

Raisio Sells Non-dairy Business to Kavli Raisio, the Finnish food and functional food ingredients manufacturer famous for its Benecol brand, is selling its nondairy business to Kavli Group in order to focus on its core activities. Producing oat, soy and ricebased non-dairy products, the business being sold has annual net sales of around Eur7 million.

The acquisition will strengthen Kavli Group’s foothold in the Finnish and Swedish markets with a new product category.

Kavli Group is one of Norway’s largest and most international food companies, employing some 800 people. The group’s

priority is to maintain supply to customers and use this modern dairy in a strong milk field to help us to develop new products, such as vitamin enriched milk.”

Dairy Crest Buys Welsh Dairy Dairy Crest has bought the small specialist milk business Proper Welsh Milk from the administrators BDO LLP for £325,000.

Proper Welsh Milk was created in 2011 and invested over £1 million in a new dairy on the site of the former Whitland Creamery in Carmarthenshire.

It now employs around 40 people and packs local milk for Tesco, Marks and Spencer and a number of other customers.

It has recently started supplying milk enriched with vitamin D which contributes to strong bones. Proper Welsh has been hit by cash flow problems and went into administration on 1 March 2013.

Dairy Crest is committed to supporting dairy farming in Wales and is one of the country's biggest milk buyers. However until now all of its Welsh milk has been packed in England.

Mark Allen, chief executive of Dairy Crest, comments: “Our

FOOD & DRINK BUSINESS EUROPE, MARCH 2013

Mark Allen, chief executive of Dairy Crest.

25% of Fever-Tree Sold For £48 Million Lloyds Development Capital, the private equity arm of Lloyds Banking Group, has purchased a 25% stake in Fever-Tree, the UK’s leading premium tonic water and mixers brand, for £48 million. The new investment will help to strengthen the brand’s presence in the UK and Spain, accelerate expansion into the US and help drive growth in numerous other countries around the world.

British entrepreneurs Charles Rolls and Tim Warrillow cofounded Fever-Tree in 2005.

Over the past three years FeverTree has recorded average annual revenue growth of close to 60%, supported by the consumer trend towards craft and premium spirits. Fever-Tree is now the number one premium mixer brand in the UK, where the mixers market is estimated to be worth around £320 million, in Spain, which has one of the world’s biggest gin and tonic markets, and in the US, the largest market for premium spirits, cocktails and mixers.

Over the next three years, the firm forecasts close to 25% average annual revenue growth for the UK and Spain and over 50% for the US. Daniel Sasaki, managing director of LDC’s London investment team, and Bertie Aykroyd, investment director, will join Fever-tree’s board.

I CONFECTIONERY

Cargill’s Stevia-sweetened Dark Chocolate is an Award Winner tevia sweetened dark chocolate proS duced by Cargill’s cocoa and chocolate business has won an award at the recent International Sweets and Biscuits Fair (ISM). The chocolate, sweetened with Cargill’s Truvia® stevia leaf extract, took second place for Greek confectionery company Hatziyiannakis Dragees as the most innovative product of the year.

The company took the award for its chocolate coated whole roasted almonds.

This product was selected from 120 entries by a 90 strong panel of experts looking for the top three innovative products of the year which demonstrate versatility and creativity in the confectionery sector.

Hatziyiannakis Dragees was founded in 1950 by Nikolaos Hatziyiannakis. It soon grew to become a leading company in the Greek confectionery market, and now has a steadily growing international market share.

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Truvia® stevia leaf extract is a zero-calorie sweetener made from the best-tasting stevia leaf components. It delivers naturallysourced sweetness, for a variety of applications including chocolate, beverages, yoghurts, ice cream, and dairy desserts.

Olivier du Chatelier, Cargill Business FOOD & DRINK BUSINESS EUROPE, MARCH 2013

Development Manager for health and nutrition products EMEA, says: “We supply Truvia® stevia leaf extract to many companies across Europe and beyond. In the EU Truvia® stevia leaf extract is used in the beverages such as Eckes-Granini juice drinks, Nestea, and Coca-Cola’s Sprite and Fanta Still® for example, as well as confectionery, yoghurts and ketchups.”

Brigitte Bayart, Marketing Manager Chocolate of Cargill Cocoa & Chocolate, comments: “We have produced our stevia sweetened chocolate by working closely with our colleagues across Cargill, and in our confectionery application centre in Vilvoorde, Belgium. Using our unique Tmodel for product innovation, which combines our extensive food knowledge with deep knowledge of cocoa and chocolate, this team formulated an indulgent, high quality stevia-sweetened dark chocolate with a great taste.” J

COVER STORY

Innovation Fuels Strong Growth at Nestlé Nestlé again increased sales and profits in 2012 across its various geographic regions and product sectors, building upon the profitable growth achieved consistently over recent years.

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espite the tough trading environment, Nestlé performed strongly in the developed markets of the world, such as Western Europe, where innovation in products, systems and routes to market is allowing it to adapt quickly to changing consumer demands and shopping patterns. Nestlé is also continuing to expand in the faster growing emerging markets.

ness agenda continued to bring enhanced benefits for consumers, greater brand differentiation in the market place and increased value for shareholders. With creativity and innovation, our people laid the foundations for future growth.”

Developed Markets In spite of the challenging economic conditions in the developed world, Nestlé’s innovation in Strong Broad-based Performance products, systems and routes to market delivNestlé achieved a 10.2% increase in sales to ered organic growth of 2.5%. Developed marSFr92.2 billion (Eur74.8 billion) for 2012 with kets accounted for 57% of group sales in 2012. organic growth of 5.9%, maintaining the “One of the things that I believe sets Nestlé momentum of recent years. The organic sales apart, is our commitment, regardless of shorter growth was composed of 3.1% real internal term challenges, never to sacrifice future develgrowth and 2.8% pricing. After years of opment just to meet shorter term targets,” adverse impact, foreign exchange added 1.7% Paul Bulcke, chief executive of Nestlé. explains Wan Ling Martello, chief financial to sales, and acquisitions, net of divestitures, a officer of Nestlé. further 2.6%.

In terms of investment, Nestlé announced a new factory for The group's trading operating profit increased by 11.8% to Nescafé Dolce Gusto in Germany, for Nespresso in Switzerland, and SFr14.0 billion. The trading operating profit margin was 15.2%, up for Nestlé Health Science and PetCare, in Australia. It also extended 20 basis points, and up 10 basis points in constant currencies. nine lines in a range of factories across Europe and the US. “We conNestle increased the marketing support behind its brands during tinue to see many opportunities for growth in the developed markets, 2012 ratcheting up total marketing costs by 30 basis points. even despite the challenges,” says Wan Ling Martello.

Consumer facing spend rose about 8% in constant currencies. Net Nestlé is also continuing to build its R&D capability in developed profit rose by SFr1.1 billion to SFr10.6 billion, and earnings per share markets, announcing two new centres during 2012. The first was the were up 12.2%.

Nestlé Institute for Health Science, which in close collaboration with The Nestlé growth was broad-based across all its geographies, with Nestlé Health Science, 5.9% organic growth will focus on personin the Americas, 2.4% alised science-based in Europe and 10.3% nutritional solutions to in Asia, Oceania and help prevent or manAfrica. age chronic diseases.

Paul Bulcke, chief The second new R&D executive of Nestlé, facility was a global comments: “In 2012 centre for clinical triwe delivered on our als, attached to commitment - a good, Nestlé’s R&D centre broad-based perfor- in Switzerland. This mance building upon new centre will be at the heart of Nestlé’s efforts to drive competitive the profitable growth advantage through the health benefit claims of its products.

Nestlé also expanded its global chocolate product technology centre achieved consistently over previous years. All at York in England, which will work on innovative ideas in manufacour businesses, both in turing, raw material processing, product reformulation and packaging. developed and in Nestlé has an extensive product and brand emerging markets conEmerging Markets portfolio, ranging from global iconic brands to tributed. Our nutriIn emerging markets the global food and beverage group grew 11%, local favourites. tion, health and well- achieving sales of SFr39.3 billion, equivalent to 43% of the group FOOD & DRINK BUSINESS EUROPE, MARCH 2013

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total. “This makes us the biggest and by capitalising further on the player in our industry in the emergenormous potential of ‘out-ofing markets,” points out Wan Ling home consumption’.

Martello.

During 2012, Nestle announced Four Operational Pillars or opened factories in Malaysia, the Nestlé invests heavily in the Philippines, the Congo, Angola, ‘innovation and renovation’ of its South Africa, Chile and Sri Lanka, products, systems and processes. while also extending lines in many The Nestlé Continuous Excellfactories, including in Russia, ence approach ensures optimum China and India. The Swiss food ‘operational efficiency’, by elimiand beverage group also opened nating waste, increasing cost three R&D centres in emerging effectiveness, and improving qualmarkets - two in China and one in Nestlé has the largest R&D network of any food company in the world, with 32 ity across all operations. Nestlé R&D centres and over 5,000 people directly involved in R&D. India. operates 468 factories in 86 counConstant investment in innovatries around the world. tion, technology and R & D is allowing Nestlé to prosper and outperNestlé is also consumer-centric, maintaining that it is not sufficient form its peers. “Innovations are the cornerstones of our ability to to manufacture the most innovative products in the most efficient deliver growth and to remain differentiated from our competition,” way but also to ensure that its products are available ‘whenever, wherWan Ling Martello remarks. ever and however’ consumers want to buy them.

Development Roadmap Nestlé’s ambition is to be the recognised and trusted leader in ‘nutrition, health and wellness’, as well as to deliver its financial objectives.

The group’s development strategy – the Nestlé 4x4x4 Roadmap – has been designed to align the group’s vast resources to achieve these goals by exploiting its ‘four competitive advantages’ through its ‘four growth drivers’ and ‘four operational pillars’ Four Competitive Advantages Nestlé’s competitive advantages are its extensive ‘product and brand portfolio’, ranging from global iconic brands to local favourites, supported by an ‘unmatched research and development capability’, which is clearly focused on driving innovation and renovation to meet the changing consumer requirements throughout each of its markets globally, where Nestlé has an ‘unmatched geographical presence’.

Nestlé has operated in most of its markets for generations, building up extensive local knowledge which has contributed to what the global food and beverage group characterises as its greatest strength – its ‘people, culture, values and attitude’. The Nestlé culture binds the group’s 330 000 employees in the disparate parts of the vast global organistion together, providing a shared set of values and a single way of doing business.

Nestlé also stresses the importance of communicating with consumers in a dynamic way, to keep them up-to-date with the latest product development and marketing initiatives. This ‘consumer engagement’ is also crucial in gaining insight into changing consumer requirements and shopping habits in order to tailor Nestlé’s innovation and renovation.

Four Growth Drivers Having anticipated the key market trends of ‘nutrition, health and wellness’, Nestlé has structured its business to offer consumers tastier and healthier choices across all its product categories. Furthermore, Nestlé is seeking to address specific nutritional needs through its Nestlé Nutrition business and is pioneering ways to use nutrition to combat critical illness through its Nestlé Health Science venture.

A second growth driver is the extensive range of ‘Popularly Positioned Products (PPP)’ that Nestlé has developed for emerging markets, to provide lower-income consumers with affordable nutritious foods.

Nestlé is also seeking to drive growth through a ‘premiumisation strategy’ in Wan Ling Martello, chief financial officer of Nestlé. appropriate markets

Focus on Innovation R&D is a major competitive advantage for Nestlé and has been crucial to its evolution into the world’s largest food manufacturer and its transition into a nutrition, health and wellness company.

“Innovation has been at the heart of our company since its beginning. Ever since Henri Nestlé invented Farine Lactée to alleviate infant mortality, we have been dedicated to enhance people’s lives,” says Werner Bauer, chief technology officer at Nestlé, who is responsible for overseeing all the group’s innovation, technology and research and development activities. “We have the largest R&D network of any food company in the world, with 32 R&D centres and over 5,000 people directly involved in R&D.” Werner Bauer, chief technology officer at Nestlé.

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Nestlé is also seeking to drive growth through capitalizing further on the enormous potential of ‘out-of-home consumption’.

FOOD & DRINK BUSINESS EUROPE, MARCH 2013

Indeed, Nestlé invests well over SFr1.0 billion in R&D for food and beverages annually and has steadily increased this spend over the past thirty years. As a percentage of sales, Nestlé Institute for Health Science focuses on R&D investment personalised science-based nutritional solutions to help has doubled over prevent or manage chronic diseases. this period.

Werner Bauer continues: “Behind every one of Nestlé’s products there is a team of scientists, engineers, nutritionists, designers, regulatory specialists and consumer care representatives dedicated to earn our consumers’ trust with safe products of the highest quality - at Nestlé, safety and quality are non-negotiable. Whether it is in terms of convenience, health or pleasure, we are able and committed to create trustworthy products, systems and services that contribute to improving the quality of consumers’ lives.”

European Business Nestlé managed to continue to grow its business in both Western and Central/Eastern Europe during 2012, demonstrating that even in a challenging trading environment, there are opportunities to achieve above-market growth and share gains. Zone Europe reported sales of SFr15.4 billion, with 1.8% organic growth and 1.1% real internal growth. The trading operating profit margin at 15.7% improved by

10 basis points, reflecting volume growth and good cost management, and was achieved whilst increasing brand investment. This improvement built on the 230 basis points improvement in 2011.

Although trading conditions were challenging, Nestlé delivered growth in Greece, Spain and Great Britain (see Panel) and gained market share in most categories in France.

Growth in Western Europe was fuelled by a strong innovation pipeline combined with a rigorous approach to efficiencies, which permitted increases in both brand investment and margin. Nestlé expects to be able to maintain this growth momentum in 2013.

In Central Europe and Eastern Europe Nestlé enhanced its competitive position in coffee and pet care, with increased local manufacturing and distribution capabilities. There was continued improving momentum in Russia, with Nescafé, ice cream and chocolate all contributing good real internal growth. The other parts of the region also performed well.

Global Outlook Having further strengthened its global R&D network and increased support behind its brands during 2012 and with a good business balance between exposure to developed and emerging markets, Nestlé looks set to continue to outperform its peers.

Paul Bulcke remarks: “Despite the many challenges 2013 will no doubt bring, we expect to deliver the Nestlé Model of organic growth between 5% and 6% as well as an improved margin and underlying earnings per share in constant currencies.” J

Solid Performance by Nestlé UK & Ireland Despite the tough economic environment, the UK and Ireland was a growth market for Nestlé in 2012. Nestlé UK & Ireland delivered growth by responding to the changing shopping habits of UK consumers.

Employing approximately 7,000 people across 19 sites, Nestle UK & Ireland manufactures a variety of iconic brands in the Britain, including Kit Kat, the country’s number one selling biscuit, Quality Street confectionery, Nescafe soluble coffee, and Shredded Wheat cereal. Nestle is one of the UK’s major food exporters, selling products worth more than £300 million each year to 50 countries around the world. Nestle UK and Ireland has annual sales of over £2.5 billion.

New Reality Fiona Kendrick, chairman and chief executive of Nestlé UK & Ireland, comments: “2012 was a strong year for Nestlé UK & Ireland. Our consumers are adapting to the tough economic climate by changing the way they shop. We have grown our business by responding to this new reality, particularly in fast growing channels such as online shopping, convenience stores and discounters, as well as the more traditional outlets.”

Nescafé continued to lead the coffee category by providing consumers with innovative new products such as Nescafé Azera, the instant barista style coffee, successfully launched in 2012. Nescafé Dolce Gusto, which provides coffee-shop quality at home for a fraction of the price, increased sales of coffee pods by nearly 40%, with the number of machines in UK and Ireland households increasing by 30%.

During 2012, the first Nescafé Dolce Gusto shop opened in Ireland. This success is not at the expense of the core Nescafé range, whiWafer line at York. ch is continuing to

retain its position as the UK & Ireland’s number one soluble coffee brand.

Helped by strong performances by the Milky Bar, Rolo and Yorkie brands, the confectionery division achieved 2.5% value growth in Fiona Kendrick, chairman and chief executive of 2012. Yorkie’s growth Nestlé UK & Ireland. was fuelled by its return to TV for the first time in ten years. Sales of Kit Kat, Nestlé’s leading confectionery brand, also increased in 2012.

Nestlé Waters finished 2012 with a record total value market share of 21.7% up from 20.5% a year ago and making Nestlé Waters the fastest growing branded player in the category. The key local brands, Nestlé Pure Life and Buxton continued to deliver throughout 2012 with NPL consolidating its position as the fastest growing bottled water brand with growth of 15.8% in the year, and Buxton maintaining its position as the UK’s leading local mineral water with a value share of 12.8%.

In pet food, Nestlé Purina delivered another sound performance in 2012 and continued to shape and add value to the category. This success was reinforced by innovative product launches and campaigns that drove growth for Purina brands such as Gourmet, Purina One, Bonio and Pro Plan.

Competitive Edge Nestlé UK & Ireland invests heavily to maintain a competitive edge in manufacturing technology and efficiency. Indeed, the business is currently undertaking a £500 million investment programme, running over three years, to modernise its British manufacturing facilities, including spending £200 million to extend its Nescafé factory in Tutbury, Derbyshire.

On the bottled water side of its business, Nestlé UK & Ireland recently built a new £35 million bottling plant in Buxton, Derbyshire, which is one of the most environmentally sustainable operations of its kind in the world.

FOOD & DRINK BUSINESS EUROPE, MARCH 2013

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I BEVERAGES

Cott Focuses on Diversification Cott Beverages, the UK subsidiary of Cott Corporation, which is the world’s largest supplier of retailer brand soft drinks, has reported a 6% increase in revenue to US$473 million (£315 million) for 2012, despite a fall in volume sales. facturing in the UK. It is also growing positions in attractive market segments such as energy and sports drinks.

Jerry Fowden, chief executive of Cott Corporation.

K filled beverage case volume declined from 195 million cases to 190 million cases due primarily to Cott’s exit from certain low gross margin business as well as poor weather in the summer months. The rise in revenue was due to an increase in average price per case and favorable product mix, including growth in the energy and sports drinks categories. Operating income slipped slightly from $27.5 million to $27.1 million (£18.1 million).

The UK gross margin increased by 40 basis points for the financial year as a whole. “As we look forward to 2013, we believe the combination of a normal summer, let's hope, and some increased UK capacity that comes online during quarter two should see further improvement both in UK volumes as well as revenue,” says Jerry Fowden, chief executive of Cott Corporation.

Cott’s UK business contributed 21% of total group sales of $2.25 billion and 25%

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of group operating income of $109.7 billion in 2012.

Return to Growth Having seen net profits plummet by 31% in 2011, Cott Corporation returned to growth last year with net profit up 27% to $48 million and operating income up 9% despite a 4% fall in sales.

Cott is one of the world's largest producers of beverages on behalf of retailers, brand owners and distributors. Cott produces multiple types of beverages in a variety of packaging formats and sizes, including carbonated soft drinks (CSDs), 100% shelf stable juice and juicebased products, clear, still and sparkling flavoured waters, energy products, new age beverages, and ready-todrink teas, as well as alcoholic beverages for brand owners.

It is the leader in retailer brand CSDs and juices in North America and the leader in retailer brand CSDs and contract manuFOOD & DRINK BUSINESS EUROPE, MARCH 2013

UK Business With over 800 employees and headquartered in Kegworth, Cott Beverages operates six production facilities in the UK – at Nelson (two facilities), Bondgate, Kegworth, Lichfield and Sangs (Macduff).

The company’s customers include some of the largest food retailers and wholesalers in the UK as well as a significant number of leading retailers throughout Europe. Cott has expanded in the UK through a combination of organic growth and acquisitions.

Cott entered the UK soft drinks market in 1994 with the launch of Classic Cola in partnership with grocery retailer Sainsbury and subsequently acquired a 51% stake in the Pontefract canning plant operated by UK soft drinks producer Benjamin Shaw.

The following year, Cott bought out the remaining stake in the Pontefract plant and acquired the Featherstrong plant of Crystal

Drinks. In 1997, it acquired the Kegworthbased Hero Drink Group.

Move into Aseptic Drinks Production In 2005, Cott completed the acquisition of Macaw Soft Drinks, the UK’s biggest privately owned manufacturer of retailer brand CSDs, for £76 million. The addition of Macaw nearly doubled Cott’s UK business and provided its first entry into aseptic, or preservative-free, drinks production.

Since 2007, Cott’s traditional core busi13

Constar International is among the world's leading suppliers of polyethylene terephthalate (PET) plastic containers (preforms, bottles and jars) and one of Europe's leading manufacturers of HDPE

closures. Both standard and barrier PET bottles are highly sustainable, contributing to the reduction of the carbon footprint for brand owners and are recyclable in conventional PET reclamation systems.

ness in private label soft drinks to major retailers has expanded with growing sales in the sports and energy isotonic categories through wholesale channels into various retail stores and outlets.

Cott’s most recent acquisition was the purchase of the SUSO brand of sparkling and still soft drinks for an undisclosed price in 2012. The deal complemented the growing strength of Cott’s UK branded portfolio which includes Old Jamaica Ginger Beer, Ting, Emerge, Red Rooster and Ben Shaws.

Cott Beverages’ brand portfolio in the UK comprises value brands, which provide small retail chains, without the volume necessary to justify an own label range, with the opportunity to compete in between private label and national brands. This business now accounts for about 12% or 13% of Cott Beverages’ UK product mix and for 25% of the UK gross margin.

Development Strategy Cott is continuing to diversify its product range and packaging offerings to strengthen its position as the leading producer and contract manufacturer for others. In the last three years it has successfully broadened its portfolio and reduced its traditional reliance on CSDs, which accounted for about 38% of sales in 2012 compared to 60% in 2009. Following the acquisition of Cliffstar in 2010, juice/juice drinks have increased as a proportion of sales from 1% to 24%. Contract manufacturing has also increased from 4% of volume in 2009 to 6% last year.

“Our mission is to be the low cost, high service leader and preferred supplier to our customers and partners,” explains Jerry Fowden. “Our plan is to focus on diversifying our product and packaging capabilities in our core strengths in private label/contract manufacturing given our world-class capabilities in manufacturing, new product development, customer service and supply chain, while continuing to focus on the four C’s.” The four C’s are – to strengthen customer relationships; continue to lower operating costs; control capital expenditures and rigorously manage working capital; and to deliver significant free cash flow.

Employing 4,000 people, the Canadian

beverages group operates 33 state-of-the-art and strategically located beverage/concentrate manufacturing and fruit processing facilities, with 20 in the US, five in Canada, six in the UK and one in Mexico.

Cott has a vertically integrated global concentrate facility at Columbus in the US, which exports to over 50 countries around the world.

Indeed, a key strength of Cott is that it is a vertically integrated business with its own concentrate production and has a substantial R&D capability for new product development, which is crucial to continued growth within beverage markets globally.

used for further debt reduction.

While Cott is well equipped for large and small pack hot-fill, for large pack 2-liter PET and for various canned formats for CSDs, it still has no capability in pouches, cartons and tetra packages. “As time passes, we will continue to add those more diverse product and packages to our manufacturing make-up so that we can be an even better one-stop shop for our customers,” says Jerry Fowden.

He adds: “Our goal, as part of this diversification, is to be a manufacturer of beverages for others.” The Cott chief executive expects further consolidation within the manufacturing of beverages for others sector, which will provide opportunities for the Canadian drinks group to expand its contract manufacturing, private label and value branded businesses. J

Diversification Cott is intent on further expanding and diversifying its product and packaging offering. During 2013, Cott will be adding new packaging formats. For instance, the extra capacity being added in the UK will be slanted towards small pack and also ultra-clean steel products.

Cott’s capital deployment strategy for the next couple of years has allocated about 30% of free cash flow for both bolt-on or organic investment to diversify the product, package and channel portfolio. About 30% of free cash flow will be returned to shareholders and the remaining 40% will be Cott Beverages Improves and Sustains With FME Cott Beverages has recently completed its first Food Manufacturing Excellence (FME) apprenticeship programme with FDQ. “The outcomes have been great for our business,” says Mark Heath, operations manager at the Kegworth site. “The operatives we selected for the programme have been responsible for key improvements in our business; solving problems which management teams had tried a number of times to overcome, as well as cutting waste in areas which we thought were not possible.”

He continues: “What is really fantastic and something I hadn’t really expected - is the fact that these gains are truly sustainable. By gains, I am referring not only to the waste reduction, but the improved performance and communication between teams. This work has led to on-going improvements which are affecting our site positively every day. In some cases projects which began as part of the FME apprenticeship are continuing to secure greater gains for the business.”

The FME programme linked directly to Cott’s overall business strategy, and is contributing in a real and worthwhile way to the objectives the

FOOD & DRINK BUSINESS, MARCH 2013

business has set.

Peter Booth, managing director of CQM T&C, the Derbyshire based lean consultants who delivered the programme, comments: “Communication can often be considered a touchy feely skill and perhaps not of key importance in a factory environment. The reality however, is that it is crucial, particularly as food manufacturers often have around 40% of staff for whom English is not a first language.”

The FME projects looked at performance improvement in a number of areas - quality, cost and customer service.

One particular project tackled a long term problem Cott was having around over-production on bottling runs, which resulted in the storage of some 950 part pallets of goods each week. The work of the apprentices reduced this by 350 per week, generating significant savings for the business week in week out. This issue of part pallet production was a growing problem, which is now in the process of being reversed. Others achieved 50% reduction in overtime; reduction of time lost in changeovers; standardisation of weighing of raw materials etc.

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Demand Solutions – Meeting the Challenges of Supply Chain Management ood and beverage processors are conF stantly introducing new products, changing the mix, and adjusting package sizes to stimulate sales. This process leaves no margin for error, especially as products have limited shelf life and have to carry expiry dates.

Delivering the right product on time and to precise specification is crucial and customers expect the product to be available exactly when they want it.

Established in 1985, Demand Solutions offers demand planning software for the full spectrum of supply chain management and inventory planning. Its products are characterised by being highly effective, affordable, easy to implement and use, delivering fast ROI. Demand Solutions products are designed to allow users to increase forecast accuracy through better forecast management, allow for collaborative planning and forecasting, improve fill rates, reduce inventory and unlock working capital whilst enhancing customer satisfaction.

With Demand Solutions supply chain planning software, food and beverage companies can: • Generate, manage, and collaborate on reliably accurate forecasts; • Analyze sales history and forecasts in units, revenues, margin, and any other unit of measure; • Automatically respond to seasonality, shifting growth trends, and product mix transitions; • Objectively manage new product introductions; • Forecast by SKU at the customer level and summarise in total by SKU, customer, sales; channel, region, product family, supplier and more; • Generate production plans that keep inventories in sync with ever-changing forecasts and static capacity constraints; • Drive an effective sales and operations planning process.

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Demand Solutions food and beverage supply chain planning software aids producers in launching new products, meeting seasonal shifts in demand, and adopting new packaging formats and sizes.

Highly Flexible “In the food and beverage business demand is volatile. Therefore it is crucial that whatever tool you use is highly flexible and can easily respond to those constant changes in demand.” points out Tim Welch, Managing and Technical Services Director, EMEA at Demand Solutions. “The ability to add promotions as and when they occur is another important benefit of using Demand Solutions.”

Demand Solutions software is being used by food and beverage companies of all sizes, from SMEs up to the regional operations of multinational corporations. For example, Diageo is a major customer, having implemented Demand Solutions for demand planning across Africa.

Tim Welch continues: “Many of these companies have very sophisticated ERP systems. However, with an ERP system there can be a degree of rigidity. So it is important that you do have a modeling and planning tool, which is very flexible and easy to use, on top of the more rigid ERP solutions.”

Effective Scheduling Food and beverage processing is similar to other industries in that products must be produced on time to meet demand, production capacity is limited, raw material purchasing and intermediate production must be coordinated, and there are constraints limiting which products can be made on which equipment. However, food and drink manufacturing poses a number of unique production scheduling challenges, such as spoilage concerns, cross contamination issues, cleanouts can be lengthy, intermediate storage is limited and conveyance equipment constrains material flow paths.

The benefits of effective scheduling in the food and beverage process industry are substantial. Good schedules mean more time producing and less time performing cleanouts – resulting in increased output and higher revenues. Also, risks associated with spoilage and cross contamination FOOD & DRINK BUSINESS EUROPE, MARCH 2013

are reduced as are the costs of storing products that are produced too early or shipped late. Transport costs can also be reduced by tightly integrating shipment schedules with production.

Without a system that can model the various constraints, this type of scheduling can be extremely complex and difficult. Because Demand Solutions is a modern Microsoft.NET based application, it is very easy to add constraints for specific production environments. This, combined with the rich pre-defined tools related to food process scheduling, result in a system that is rapid to implement, easy to learn, and highly profitable to use.

Implementation and ROI Demand Solutions is quick to implement, leading to a fast return on investment. “The majority of implementations are completed within three to six months, which is significantly faster than many of our competitors.

That means that you recoup your investment much faster.” says Tim Welch.

Cott Beverages has been using Demand Solutions for more than ten years. The system allows Cott to respond to surges in demand for its products, such as during hot weather or due to promotions, in order to balance efficiency with inventory levels. The system has also been flexible enough to incorporate the new businesses that Cott has acquired and integrated over the years.

“They use our forecasting software in weekly mode with replenishment planning.

In a dynamic situation, often it is the replenishment planning that is the part that responds fastest to the changes in the market.” He continues: “With replenishment planning, the inventory side of the implementation that they have is the part which will respond immediately to a sudden change in demand and will start sending signals to the manufacturing system.” J

I BEVERAGE SYSTEMS

Pentair Receives Additional BMF Order From SABMiller entair Beverage Systems has delivered a Beer Membrane P Filtration (BMF) System to SABMiller subsidiary Cerveceria Nacional in Guayaquil, Ecuador that replaces the brewery’s Diatomaceous Earth (DE) filter. Following the successful implementation of Pentair’s BMF technology at the Quito production site, it is the second Cerveceria Nacional brewery in Equador to switch from DE to BMF. With an annual capacity of approximately five million hectoliters, the brewery in Guayaquil produces a wide range of beer brands including Pilsener, Pilsener Light, Club Premium and Dorada. The order is part of SABMiller’s strategic initiative to replace DE filtration systems in breweries worldwide with a more sustainable technology.

Pentair supplied Cerveceria Nacional with a fully automated turnkey membrane filtration line, including unfiltered and filtered beer tanks, membrane filter skids with an output of 400 hl/h, security filter, and a cleaning-in-place (CIP) unit. The system was put into operation in late 2012. At present, 75% of the beer production at the Guayaquil brewery is filtered with BMF.

“SABMiller continuously looks for innovative solutions that provide sustainability benefits and help to optimize production processes,” says Gustavo Guimas, Manufacturing Vice President at Cerveceria Nacional/SABMiller. “Pentair’s BMF fits our strategy well as this technology eliminates the necessity of diatomaceous earth, decreases solid waste and at the same time offers easy handling and a constant beer quality. In addition, water consumption and beer losses are reduced.”

The compact modular design of the BMF skids makes it possible to filter more beer in a smaller footprint than other technologies.

Moreover, membrane filtration ensures a constantly high beer quality as it is a permanent barrier to beer spoiling materials resulting in significant advantages in regard to the product’s taste and colloidal stability.

For more information on Pentair’s BMF technology, visit www.pentairbeveragesystems.com. J FOOD & DRINK BUSINESS EUROPE, MARCH 2013

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FOOD SAFE LUBRICANTS

New PURITY FG Sprays From Petro-Canada Help Plant Managers Protect Hard to Reach Places etro-Canada Lubricants, the makers of PURITY FG lubricants, P has launched a new line of sprays. PURITY FG Sprays provide a solution for lubricating hard to reach areas, allowing food processors to apply the same high standards of food safe, plant tough lubrication throughout their facilities. These new PURITY FG Sprays were developed to spray as effectively when the container is held upside down as right side up, making application easier and more thorough “With the introduction of sprays to our family of PURITY FG lubricants, we’re able to offer manufacturers a full line of food safe, plant tough lubricants to protect their machinery safely and effectively from top to bottom,” says Petro-Canada’s Christie Longhurst, Category Manager Food Grade Lubricants.

The PURITY FG Spray lineup features three new products: PURITY FG Penetrating Oil, PURITY FG Silicone Spray and PURITY FG2 with Microl MAX Spray grease. Many of the PURITY FG lubricants start with Petro-Canada’s 99.9% pure base oils and all are specially formulated to deliver industrial strength protection in even the most severe operating conditions.

Collectively, PURITY FG lubricants provide longer lasting protection, excellent wear performance, and when it comes to greases, high resistance against water washout. And like all PURITY FG lubricants, the new sprays fit perfectly into the HACCP system (Hazard Analysis and Critical Control Point) and GMP plans (Good Manufacturing Practice).

“Employing food grade products like PURITY FG lubricants and sprays across their full facilities provides manufacturers with peace of mind, knowing their equipment is properly protected, and products are safe for consumers,” says Christie Longhurst. “At the same time this level of protection also helps them to meet or even exceed today’s growing regulatory demands.”

Complete food grade protection from a single source like PURITY FG lubricants can save manufacturers the time and hassle of searching for and dealing with multiple suppliers. Just ask Keith Manning, Lubricant Engineer at Muller Dairy “Switching to Petro-Canada as our sole lubricant provider minimized our lubricant stock holding, resulting in immediate cost reductions,” says Keith Manning. “With everything coming from one supplier, our logistics became much easier to manage.”

Food manufacturers can get more information about the new PURITY FG Sprays and the full PURITY FG product line at www.purityfg.com. J 18

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FOOD SAFE LUBRICANTS

FOODLUBE® – The Essential Link in the Food Chain ince 1878 ROCOL® has estabS lished itself as the market leader in the development of the highest per-

dling of lubricants which may come into contact with food, cosmetics or animal feed products during manufacture or processing. All ROCOL® FOODLUBE® products are mineral hydrocarbon free and H1 registered, therefore can be used as an incidental food contact lubricant.

The NSF Certification and H1 Rating gives you the confidence of knowing the products and processes of ROCOL®’s FOODLUBE® offering are in compliance with internationally accepted food safety standards which is a key component in any HACCPbased risk management program.

forming chemicals and lubricants by understanding the complex needs of the industrial, clean and safety markets.

The company’s comprehensive range includes high performance lubricants, cutting fluids and line marking systems.

ROCOL® operates to internationally recognised standards for quality, environment and safety. ROCOL® is proud of its commitment to the continual engagement and development of staff and holds Investors In People accreditation.

ISO 21469 Certification

ROCOL® is proud to be one of only a few companies worldwide that has achieved ISO 21469 certification. This certification takes into consideration ROCOL®’s manufacturing facility for hygiene, quality, dedicated manufacturing areas and good manufacturing practice. NSF.org states: ISO 21469:2006 specifies hygiene requirements for the formulation, manufacture, use and handling of lubricants Within a factory environment, lubricants can come into incidental contact with products and packaging used in the food, foodprocessing, cosmetics, pharmaceutical, tobacco or animal-feeding-stuffs industries.

All ROCOL® food grade products are manufactured within the strict guidelines of ISO 21469:2006, ensuring zero risk to customer products and consumers in the event of contamination.

base oils, including synthetics, renewable oils and silicones, these lubricants are also treated with the most effective anti-oxidants and additives to specifically address the performance and application needs of today’s food industry. With higher load carrying capability, superior resistance to water wash out, lower flammability ratings and wider temperature ranges, our FOODLUBE® products have been designed to preserve and protect against costly breakdowns and ensure maximum performance.

Also, equally as important as performance in today’s heightened regulatory environment, all of ROCOL®’s food grade lubricants are NSF H1 compliant. Leveraging NSF’s voluntary registration program for non-food compounds and proprietary substance, you can be assured that the FOODGRADE® range meets the formulation hygiene requirements for the use and han-

FOODLUBE Products

ROCOL® has an enhanced product offering with the addition of our FOODLUBE® range of products.

These products help your facility operate more safely, without sacrificing performance. The ROCOL® FOODLUBE® range features a wide range of lubricants which have been specifically developed to answer the needs of the demanding food processing market.

Consisting of the finest food grade FOOD & DRINK BUSINESS EUROPE, MARCH 2013

Fully Audited Process

ROCOL® has been audited by NSF, and will continue to be audited annually by NSF, ensuring the highest standards of hygiene and quality are maintained. A sample of every NSF H1 product manufactured by ROCOL® has been tested in the NSF laboratories to ensure that they comply with the highest standards of food safety.

The ISO 21469 certification ensures that all ROCOL® NSF H1 products are manufactured under strict recipe and hygiene standards in dedicated areas where necessary for complete confirmation that they are food safe.

For more information visit www.rocol .com. J 19

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Mobil SHC Cibus™ Production Facilities Earn Food Safety Management Certification xxonMobil Lubricants & Petroleum Specialties Company, a E division of Exxon Mobil Corporation, is the first lubricant provider to garner ISO 22000:2005 certification for facilities that manufacture NSF H1-registered lubricants. This accreditation is for facilities that produce ExxonMobil’s popular Mobil SHC™ Cibus Series of high-performance NSF H1 registered food machinery lubricants.

The ISO 22000 certification is one of the most stringent and comprehensive food and beverage safety standards. Established by the International Organization of Standardization, ISO 22000 is a food safety management system with a set of specified requirements that ensure a company’s ability to control food safety at every step of the manufacturing process.

“ExxonMobil is committed to the highest standards of manufacturing hygiene and safety, and we are proud to again lead our peers in the lubricant industry by becoming the first company to produce in facilities which have achieved ISO 22000 certification,” says Yan Cote, global business development advisor, ExxonMobil Lubricants & Petroleum Specialties Company. “In addition to protecting product integrity during manufacturing, Mobil SHC Cibus lubricants can help companies improve the energy efficiency and productivity of their operations.”

Ideal for a wide range of applications, such as food, beverage and pharmaceutical processing, and animal feed manufacturing, Mobil SHC Cibus lubricants are suitable under Halal and Kosher dietary law and are designed to be gluten-, nut- and wheat-free. They are formulated to deliver excellent wear and rust protection, long-term oxidation stability and can help food and beverage processors realize valuable sustainability-related benefits.

For instance, in extensive laboratory and field testing, Mobil SHC Cibus demonstrated the ability to deliver energy efficiency savings of up to 3% in gear oil applications when compared to conventional, mineral-based oils.

In proprietary rig testing, Mobil SHC Cibus Series synthetic lubricants also demonstrated their ability to last up to two times longer than comparable mineral oils, allowing for extended drain intervals, depending on the severity of the application.

For more information about ExxonMobil’s suite of H1-approved lubricants, Mobil SHC branded synthetic lubricants, or any other Mobil-branded products and services, visit www.mobilindustrial. com. J 20

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I FOOD SAFE LUBRICANTS

Enhancing Maintenance Through Lubrication Expertise roactive lubrication management as part P of a preventative maintenance programme is crucial to the success of any organisation that is operating machinery.

Effective operation with extended lubricant life and lubrication intervals enhances safety with the equipment being returned to less often.

The benefits can be far-reaching and have a genuine impact on the bottom line,

especially when advanced lubricants are combined with a comprehensive lubrication management and training programme.

The experience of Kluber Lubrication customers is one of enhanced reliability, reduced lubrication frequency and enhanced safety. One aspect of this enhanced safety is the recently implemented ISO21469 international registration standard for the production of lubricants.

ISO21469 sets the standards bar higher for the production of lubricants. This demands greater involvement with the end user customer and higher standards of production from lubricants manufacturers than ever before assuring safety and reliability in lubricants beyond H1; Kluber Lubrication has the broadest range of ISO 21469 registered products with over 150 registered.

KlüberEfficiencySupport delivers these

FOOD & DRINK BUSINESS EUROPE, MARCH 2013

exceptional lubricants in a package designed to manage lubrication across site.

Ensuring the right product in the right place at the right frequency and volume minimises lubricator tasks minimising personal risk. Add this to typical 10% reduction in lubricants used, customer measured significant reductions in power consumption and not only is safety the right thing, it’s the economic choice.

With the unrivalled expertise and experience in lubrication management offered

by KlüberEfficiencySupport linked to the highest standards of production and product quality, Kluber Lubricants are an integral part of machine safety and reliability. J

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Changing Times in the Food Testing Industry he current food authenticity scares T have led to a demand for more DNA testing of processed foods and their constituent ingredients. The current gold standard for such DNA testing is the Polymerase Chain Reaction (PCR).

However there are limitations to PCR – machines are expensive and typically only found in central laboratories, and this introduces delays and costs which could be eliminated by on-site testing.

TwistDx Ltd, part of the Alere group, is a molecular diagnostics company and provider of a revolutionary new technology called Recombinase Polymerase Amplification (RPA). RPA technology isothermally amplifies and detects DNA within 10-15 minutes, and can be carried

yes/no answer is required, using disposable lateral flow technology.

RPA can detect anything that has nucleic acid- and has been successfully used to detect pathogens like Salmonella, as well as to authenticate fish species, and determine the presence of genetically modified organisms (GMOs - TwistDx has already entered a partnership with Monsanto to use RPA to enhance their biotech crop program, developing tests for field and laboratory use ).

means that RPA tests can provide the same level of assurance as PCR testing for pathogens such as Salmonella and Listeria, but with only a 10 minute reaction time and using rapid, crude lysis of cultured bac-

Species Authentication Testing

TwistFlow Red Snapper in action.

out in many cases with low cost batteryoperated hardware. This has been shown to permit ultra-rapid species identification with fish and potentially other species. It also offers the possibility to reduce the time and complexity of pathogen testing (eg Salmonella) as part of streamlined culture/testing regimes.

TwistDx is about to launch a technology demonstration kit (www.twistdx.co.uk/products/twistflow_red_snapper_kit/) that uses RPA to determine if a fish is a genuine Red Snapper, a high value species that is often fraudulently substituted from the closely related Mutton Snapper and other species, without false positives. Sample material obtained with a disposable swab from flesh or skin of Red Snapper performs equally well as purified DNA. Similar rapid, easy to use tests to detect pig/horse DNA or other animal species in processed foods are under development. These will allow for disseminated authenticity testing with the potential to be used on the factory floor, enabling rapid decision making.

Food Pathogen Detection

Single molecule sensitivity and specificity

teria. Testing by Silliker laboratory found that a TwistDx test successfully detected Salmonella enteritidis from cultures grown up and subjected to alkaline lysis from matrices as diverse as raw ground beef, pet food, raw chicken, chocolate, lettuce, peanut butter, pecan nuts, mozzarella cheese, flour, stainless steel and liquid whole egg. R&D demonstration kits for fluorescent detection (www.twistdx.co.uk/products/twistglow_salmonella_kit/) and lateral flow detection (www.twistdx.co.uk/products/twistflow_salmonella_kit/) of Salmonella enteritidis are currently available.

Solving the Problems of PCR

Unlike PCR, RPA-based products can be configured to operate without significant laboratory infrastructure and without major capital equipment costs. Often a crude sample treatment (eg alkaline lysis) is all that is required, so time consuming DNA purification steps can be avoided. Tests can be run on inexpensive devices instead of expensive real-time PCR machines, or, if a simple

Partnering Opportunities

Red Snapper.

FOOD & DRINK BUSINESS EUROPE, MARCH 2013

TwistDx is primarily a human molecular diagnostics company, but is interested in exploring partnership opportunities for the development of RPA in the food testing arena. If you would like to help revolutionise the food testing industry, then please contact TwistDx at info@twistdx.co.uk. J 23

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I TRACEABILITY

Horse Meat Scandal Erodes Trust in UK Supermarkets K shoppers are considerably more likely U to attach blame to the suppliers of products as opposed to the supermarkets when it comes to the horse meat scandal, according to new research by Canadean Custom Solutions. Nevertheless, the survey of 2,000 respondents has found that the crisis has further eroded trust in UK supermarkets, and whilst some believe media coverage on the topic has been exaggerated, most shoppers feel squeamish about the idea of eating horse meat.

UK shoppers are considerably more likely to “blame” the supplier of beef products (88%) as opposed to supermarkets (12%) when it comes to the horsemeat scandal, research conducted by Canadean Custom

Solutions has found. This has undoubtedly had an impact on shopper attitudes and behaviours, with 51% saying they are now sceptical about the quality of meat stocked in their main supermarket. However, despite the vast majority shifting blame towards the suppliers, 38% of shoppers say that they are now less trusting of their supermarket as a result of the scandal.

Perhaps more worrying for supermarkets, one in five (19%) said that they would be likely to switch their main supermarket if horse meat was found on the retailer’s shelves.

Overall, shoppers have concerns about the presence of horse meat on the aisles of UK retailers, with a considerably higher proportion saying this (60%) compared to those who believe the media coverage on the issue has been exaggerated (27%).

When it comes to the reasons for concern over the scandal, shoppers are more likely not to like the idea of eating horse meat (55%) as opposed to horse meat potentially having a negative impact on their health (22%). This highlights how trust and transparency is the main thing bothering shoppers.

The fact that four in ten are now less trusting of supermarkets indicates that many feel that the retailers could have done more to avoid the crisis, such as sourcing better suppliers, conducting more stringent quality checks etc, with the decision to source cheaper meat being the result of supermarkets looking to maximise profits.

Michael Hughes, Research Manager at Canadean Custom Solutions, says: “The horse meat crisis has further eroded levels of trust that shoppers place towards supermarkets. More than anything, shoppers value trust and transparency and while they primarily attach the blame to suppliers of the products, they also feel the supermarkets could have done more to prevent the crisis from happening.” J

I FOOD SAFETY

New Chairman For Food Safety Authority of Ireland he Food Safety Authority of Ireland T (FSAI) has appointed Professor Michael Gibney as its new Chairman. Prof. Gibney, who is Professor of Food and Health at University College, Dublin’s (UCD) Institute of Food and Health, has a long and distinguished career as a world-leading expert in food science and nutrition. The FSAI has also appointed Raymond O’Rourke, a qualified barrister and a food regulatory and consumer affairs lawyer, and reappointed Prof Charles Daly, Emeritus Professor of Food Science and Technology at University College, Cork to its Board.

Originally a graduate of UCD, with a 24

Masters in Agricultural Chemistry, Prof Gibney completed a PhD in Sydney University. During his career, Prof Gibney held the position of Professor of Nutrition and subsequently Dean of Research with Trinity College, Dublin. After 23 years with Trinity College, Dublin he took up the post of Director of the UCD Institute of Food and Health in 2006 Prof. Gibney previously served as a Board member of the FSAI from 1999 to 2009; he has served on several EU and UN committees on nutrition and health including the EU Scientific Committee for Food and the EU Scientific Steering Committee, where FOOD & DRINK BUSINESS EUROPE, MARCH 2012

Pictured are (l-r): Prof Alan Reilly, Chief Executive of the Food Safety Authority of Ireland, with Prof. Michael Gibney, who has been appointed as Chairman of the Food Safety Authority of Ireland.

he chaired its BSE Working Group. In 2010, he was appointed to the Scientific Advisory Board of the European Joint Programme Initiative on Food and Health Research. J

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I INSPECTION SYSTEMS

New X-ray Inspection Technology Offers Complete Glass-in-Glass Inspection ettler-Toledo Safeline has M launched the new InspireX R50G x-ray inspection system to enhance glass foreign body detection in glass packaging at high throughput speeds. Ideal for inspecting small to large diameter glass jars containing a broad range of food and pharmaceutical products, the InspireX R50G offers manufacturers high detection levels across the entire container to meet increasingly stringent food safety standards.

Traditionally, the base of glass jars has presented a challenge for x-ray inspection systems, as the thicker glass in the base absorbs more x-rays than the thinner wall, masking foreign bodies. The InspireX

R50G, however, features an angled single xray beam to inspect blind spots at the base, as well as in the body, maximising the likelihood of detection. The body, neck and cap are all fully imaged on the x-ray detector; ensuring comprehensive inspection of the container and enabling inspection of jar fill level as well.

The InspireX R50G can accurately inspect up to 1,200 containers per minute, optimising production line efficiency for food and pharmaceutical manufacturers. The high-speed automated reject device ensures only contaminated products are removed without the need to slow production. The machine’s data logging and xray image library include automatic time stamps for rejected products, enabling manufacturers to demonstrate due diligence and guarantee products conform to the highest food safety standards.

For more information on this enhanced glass in glass detection technology visit www.mt.com/pi-InspireX-R50G. J

Loma Ahead of the Curve With IQ3+ Upgrades oma has introduced a number of innovL ative upgrades to its flagship IQ3+ metal detector to ensure it continues to offer unsurpassed levels of detection performance, whilst keeping compliant with the latest inspection Codes of Practice set by key industry standards. Enhancements include a 20% increase in field strength for improved contaminant detection, as well as the first integration of its EnviroScan software and patented AutoBalance technology in a variable frequency system. Together with additional technical updates to key operational features, the changes are designed to ensure the robust IQ3+ keeps pace with both regulatory demands and business developments.

The IQ3+ achieves a 20% increase in field strength through improved components and enhanced thermal management in its MaxDrive feature. This is of particular benefit for the inspection of dry goods,

such as biscuits, breads and cereals which lack moisture and so do not interact with the mag- Through its MaxDrive feature the IQ3+ ensures a greater sensitivity to netic field. Running at contaminants which is of particular benefit to dry goods such as pasta higher field strength, the which lacks moisture.

IQ3+ ensures great-er sensitivity to contaminants, imp-roved can then easily eliminated by switching to detection and superior performance. one of the alternative 70 frequencies availOutside environmental noise resulting able on the IQ3+ and quickly repeated by from vibrations or electrical interference the operator on an ad hoc basis as the faccan impair detection performance. Hand tory environment changes. In addition, held metering systems are normally technical enhancements to the noise filterbrought in to monitor such noise levels, ing system further improve stability of the identify ‘hot’ spots and facilitate line coil head by increasing its resistance to adjustments but are often not available for harsh electronic noise close to the contamiline operators to use on a just-in-time nant signal. basis. The IQ3+ now streamlines this The latest IQ3+ innovations can be process with its built-in EnviroScan soft- retrofitted to enhance the existing technolware which intuitively scans across fre- ogy of the flagship Loma IQ3, depending quencies from 30-900kHz to check if on the age of the machine. For further interference is detected , then these issues information visit www.loma.com. J FOOD & DRINK BUSINESS EUROPE, MARCH 2013

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WEIGHERS & CHECKWEIGHERS

Form Through Function – Accurate Checkweighing From Sartorius he Synus® from Sartorius combines T flexibility and precision to offer the perfect checkweighing solution for areas where space is at a premium.

The Sine wave or Sinusoid is a smooth, repetitive, oscillating curve. Well known in mathematics, a Sine curve is most often seen in ocean waves, sound waves, light waves and now one additional area checkweighing. The Synus® from

Sartorius gets its name from the famous mathematical graph because of the unique wave structure of the stainless steel housing. This new design allows the conveyor to offer flexible, friction locked connections to adjacent systems, letting the Synus® effortlessly integrate alongside any pre-existing infrastructure.

Sartorius products are renowned for their longevity, and the Synus® is no different. The flexibility of the conveyor system allows users to rest assured that the system will be able to evolve to suit any changes in their production procedures. The cantilevered weighing and

transport system makes it incredibly easy to replace both belts and weighing tables.

Modular Solution

The speed with which operators can alter the system mechanics is thanks to the “Quick-release” mechanism of the transport belt. This modular solution is available with three different electronic systems and 18 weighing systems (1, 2, 5, 7 kg) allowing the Synus® to support all customer requirements, regardless of how unique their process is. On top of this, the checkweigher is equipped with Sartorius’ Electromagnetic Force Compensation (EMC) weigh cells. These cells have been specifically designed for use in dynamic checkweighers and offer perfect stability, exceptional precision, stabilisation times and rugged industrial grade construction (IP54/IP65) As the perfect partner to the food and pharmaceutical industries, the Synus® offers a system designed and optimized for the easy maintenance of strict hygiene levels. The primary function of the Synus® however is the accurate management of product classification, completeness checks, over/under checkweighing and average weight control. Most importantly, the Synus® can perform these tasks at incredible speeds and on a variety of products, such as beverage cans, cardboard boxes, sealed bags, plastic bottles, tetra packs and a whole lot more.

To fully facilitate its optimal integration into any process the Synus® can be upgraded with numerous special features, these can included items such as a polycarbonate touch guards. These guards protect the weigh cells from accidental contact or from drafts. The inclusion of these is highly recommended for verifiable applications that demand high levels of accuracy. Either pushers or air blast nozzles can be installed which allow the automatic removal of products that fail to fall within predetermined parameters. Additionally, the control lines for the operation of customer specific sorting lines can be integrated.

FOOD & DRINK BUSINESS EUROPE, MARCH 2013

The CoSynus - Combining Checkweighing and Metal Detection

For compact operating environments space is often highly restricted. To solve this, the Synus® can be easily transformed into a dual checkweigher and metal detector. Known as the CoSynus, this combination system offers all the benefits of a regular Synus® in addition to a whole lot more. From a single control interface, both machines can be configured and controlled allowing the CoSynus to offer speed and effort advantages over more traditional two machine installations. For customers who already own a Synus® the move to upgrade to a CoSynus is easy and economical whilst also being achieved with minimal downtime.

To ensure compliance with regulations such as IFS and BRC both the Synus® and CoSynus can be connected to process control software such as Sartorius ProControl@Enterprise (SPC@Enterprise). This software is the very latest in cutting edge statistical process control software that allows you to secure Product Quality, Consumer Safety and Equipment Effectiveness from one easy to use system. For more information: www.sartorius.com J

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I

FOCUS ON IRELAND

Irish Food and Drink Exports Reach Record Levels The value of Irish food and drink exports rose by 2% in 2012 to exceed €9 billion for the first time. his builds on the Republic of Ireland’s food and drink industry's strong performance over the past three years, with exports 28% (or Eur2 billion) ahead of 2009 levels. The fastest growing categories in 2012 were meat and livestock (up 4% to Eur3 billion), seafood (up 18% to Eur493 million) and beverages (up 3% to Eur1.26 billion).

Due to the relatively small size of the domestic market, exports are a crucial source of revenue to Irish food and drink manufacturers. The Irish food industry has traditionally been strong in meat processing and dairying but has also developed a sophisticated convenience food sector as well as an international expertise in food ingredients. Brewing and distilling are key strengths on the drinks side.

T

Stan McCarthy, chief executive of Kerry Group Ireland’s largest agri food company.

Strategy For Growth To fully exploit the full potential of the Irish food and drink industry as a driver of economic growth, the Irish Government has developed a strategy for major expansion up to 2020. Launched in June 2010, Food Harvest 2020 proposes ambitious growth targets, including increasing the value of primary output in the agriculture and fisheries sector by Eur1.5 billion (a 33% increase); growing value added sales

by Eur3 billion (a 40% increase) and achieving food and drink exports of Eur12 billion (an increase of 42%) by 2020.

A central theme of Food Harvest 2020 is to build on the clean green image of Irish food production as a basis for competing in premium quality food markets internationally.

Top 50 Players The Top 50 food and drink manufacturers in Ireland, both North and South, are listed according to turnover in the Table. The top ten players have annual sales in excess of Eur1 billion.

Kerry Group, the global ingredients, flavours and consumer foods business, is

Ireland’s largest agri food company.

Indeed, Kerry is the largest player in the $50 billion global ingredients and flavours market. Northern Ireland’s largest food company is Moy Park, with a turnover of £1.07 billion (Eur1.26 billion). Moy Park is the leading poultry processor in the UK and also one of the largest in Europe.

Food and Drink Manufacturers in Ireland Company 1 Kerry Group 2 Aryzta (Food) 3 Glanbia 4 Total Produce 5 ABP Food Group

Turnover (Euro) 5.85b 2.87b 2.67b 2.43b 2.2bE

Pre-tax Profits (Euro) 496.8m 374.8m* 124.0m 37.1m nd

6 Irish Dairy Board 7 Diageo Ireland 8 Greencore 9 Moy Park 10 Dawn Meats Group 11 Dairygold Co-op 12 Dunbia 13 Kepak 14 PepsiCo Ireland 15 Fyffes 16 United Dairy Farmers 17 C & C Group 18 Lakeland Dairies 19 Heineken Ireland

1.98b 1.90bE 1.36b 1.26b 1.0bE 757.8m 750.2m 750mE 750mE 659.0m 514.1m 480.8m 472.0m 464.0m

20.9m nd 34.0m 56.5m nd 22.3m nd nd nd 12.5m 6.1m 110.9m 6.9m* nd

20 Irish Distillers Group

450mE

nd

Ownership/Status co-op/plc plc co-op/plc plc formerly Irish Food Processors -independent co-op Diageo, UK plc Mafrig, Brazil independent co-op independent independent PepsiCo, US plc co-op plc co-op Heineken, Netherlands Pernod Ricard, France

Source: Company accounts, Irish Times, Belfast Telegraph. * operating profits. £=Eur0.85

FOOD & DRINK BUSINESS EUROPE, MARCH 2013

29

Food and Drink Manufacturers in Ireland Company

Nigel Dunlop, chief executive of Moy Park -

21 Fane Valley Co-op 22 Arrow Group 23 Kraft Foods Ireland 24 Linden Food Group

Turnover (Euro) Pre-tax Profits (Euro) Ownership/Status 436.6m

5.8m

co-op

394.0m

3.0m

Queally Group

380mE

nd

Kraft Foods, US

350mE

nd

Incorporates

Northern Ireland’s largest food company.

Linden Foods,

Most of the major players within the Top 50 are active throughout the whole of Ireland and have also developed substantial businesses in Great Britain. Indeed, Irish food companies now hold UK market leading positions in areas such as convenience foods, ready meals, pizza, food ingredients, dairy products and beef.

The Irish Dairy Board is one of the leading players within the butter, cheese and dairy ingredients sectors in Britain.

Greencore is the largest pre-packed sandwich maker in Britain and also holds leading positions in other convenience food sectors. Aryzta is a leader in the British speciality bakery products market.

Slaney Foods,

Major Capital Investment Irish food and drink processors are continuing to add new capacity to meet growing demand for their products, particularly in the dairy sector which is preparing for an anticipated increase in production following the abolition of EU milk quotas in 2015. Glanbia, which has already invested Eur107 million to expand its two Irish dairy processing facilities at Ballyragget and Virginia in the last six years, is planning to spend an additional Eur180 million to further increase capacity, including the establishment of a greenfield dairy facility at Belview in County Kilkenny costing Eur150 million.

In order to facilitate the expected increase in milk production from its mem-

Kettle Irish Foods and Irish Country Meats

25 Diageo NI 26 Keelings 27 Valeo Foods 28 Hilton Meats (Retail)

344.4m

4.1m

Diageo, UK

300mE

nd

independent

300mE

nd

CapVest

286.5m

9.3m

Hilton Food Group – plc

29 Rosderra Meats 275mE 30 Gleeson Group 261.5m 31 Carbery Group 256.5m 32 Foyle Food Group 255.6m 33 Town of Monaghan Co-op 208.1m 34 Monaghan Mushrooms 205mE 35 Pfizer Nutritionals Ireland 200mE

nd

independent

5.31m

C&C Group

8.7m

West Cork co-ops

3.9m

independent

3.3m

co-op

nd

independent

nd

Nestle, Switzerland

36 Coca-Cola HBC Ireland 186.1m 37 Arrabawn Co-op 180.1m 38 Carton Group 168mE 39 Manderley Food Group (Tayto)165.6m 40 Britvic Ireland 163.2m 41 Boyne Valley Foods 155mE 42 Tipperary Co-op Creamery 147.3m 43 Green Isle Foods 144mE

17.1m

CCHBC, Greece

6.2m

co-op

nd

independent

5.2m

independent

nd

Britvic, UK

nd

independent

1.0m

co-op

nd

Boparan Holdings, UK

Diageo Ireland is currently investing Eur153 million in creating a brewing centre of excellence at its famous St James’s Gate site in Dublin.

44 Kildare Chilling Company 140mE 45 Liffey Meats 135mE 46 Pepsi Lipton International130.0m 47 Mars Foods Ireland 129.0m 48 Tender Meats 116.3m 49 HJ Heinz Ireland 114.6m 50 Ballina Beverages 110mE

nd

independent

nd

independent

53.0m

PepsiCo/Unilever

5.0m

Mars, US

6.0m

independent

17.2m

HJ Heinz, US

nd

Coca-Cola, US

Source: Company accounts, Irish Times, Belfast Telegraph. * operating profits. £=Eur0.85

FOOD & DRINK BUSINESS EUROPE, MARCH 2013

31

Glanbia is planning to spend Eur180 million to further increase capacity, including the establishment of a new dairy facility at Belview in County Kilkenny. Artist’s impression of the proposed Belview plant.

bers, Dairygold, the farmer owned dairy cooperative, is planning a phased investment of Eur120 million over the next eight years to incrementally expand its weekly processing capacity by 18.5 million litres by 2020.

In food ingredients, Kerry Group is investing Eur100 million in a new Global Technology & Innovation Centre in Ireland to serve the group’s customers within the ingredients and flavours sector.

To satisfy rapidly growing global demand, the Irish whisky industry is adding new capacity. Irish Distillers Pernod Ricard, which is the largest producer and market leader with its flagship Jameson brand, recently invested Eur100 million to expand its distillery in Midleton, County Cork, to

facilitate future expansion. The company is also spending an additional Eur100 million in a new maturation site.

The second largest Irish whiskey brand, Tullamore Dew, is also benefiting from the Irish whiskey ‘renaissance’. The brand’s owner, Scotch whisky group William Grant & Sons, is to invest Eur35 million in a new, state-of-the-art pot still whiskey and malt whiskey distillery in Tullamore, bringing whiskey production back to the Irish town for the first time since the original distillery closed in 1954.

Also on the beverage side, Diageo Ireland is currently investing Eur153 million in creating a brewing centre of excellence at its famous St James’s Gate site in Dublin. The move is designed to ensure the long term sustainability of the global drinks group’s brewing operations in Ireland. However, the centralisation of all Diageo Irish brewing activities at one site, which was first announced in 2008, will entail the ceasing of brewing activities at Kilkenny and Dundalk.

Prospects For 2013 The short-term prospects for Irish food and drink exports in 2013 remain positive, with increased output in some key sectors, most notably beef, combined with more stable global commodity prices expected. The results of the annual Bord Bia (Irish Food

Board) industry survey, completed in December 2012, show continued confidence among food and drink manufacturers and a strong positive outlook for the year ahead. In total, 77% of exporters reported increased sales over the past 12 months, while 75% expect export sales to increase again in 2013.

However, the survey was carried out before the discovery of the fraudulent substituting of horse meat for beef in convenience food products across Europe. To its credit, the Food Safety Authority of Ireland was the first to expose the malpractice but Irish beef processors and convenience food companies have been caught up in the scandal. With the full implications of the horsemeat contamination saga still to be revealed, the precise impact it will have on Irish beef and prepared foods exports is unclear. J

Anna Malmhake, chief executive of Irish Distillers Pernod Ricard.

Leaders in Temperature Controlled Solutions

Allied Logistics – working with retailers and leading brands, pushing innovation, flexibility and standards by: • Being both BRC Global Food Safety Standards and ISO 22000 Food Safety Management compliant.

• Multi sites; Ambient, chilled and frozen. Operated 24/7 in Cork and Dublin.

• Offering a wide range of client specific KPI data, including pick accuracy, order fill rates, POD statistics / management and budget analysis.

• Using Voice enabled picking as a key to delivering this information accurately as well as helping to deliver excellent stock accuracy and productivity standards.

• Having a distribution solution that can be designed as a dedicated or as part of a multi-user network.

• The use of Vehicle Management System’s (VMS) GPS system, we track our entire fleet at all times to ensure all deliveries are on time and within temperature.

• Using our IT systems that can be bespoke applications, tailored to suit all clients’ needs, including a WMS with full integration option.

• Additional services including central billing administration, reverse logistics, product tempering and co-packing.

Call us in Dublin on + 353 (0) 1 466 2600 Email us at logistics@alliedfoods.ie www.alliedlogistics.ie

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FOOD & DRINK BUSINESS EUROPE, MARCH 2013

I TEMPERATURE CONTROLLED LOGISTICS

Allied Logistics and Allied Foods Provide Experience, Strength and Value art of Allied Foods, Allied P Logistics is a leading ambient and temperature controlled distributor, offering a wide range of supply-chain solutions since 1999. Established in 1989, Allied Foods is one of Ireland's largest ambient, chilled and frozen foods distributors. It provides brand management and supply chain services to the FMCG and food service sectors. Many of Ireland’s leading brands have chosen Allied Foods as their preferred supplier.

Allied Foods is part of the DCC Group, under the Food and Beverage Division. DCC employs 9000 people across five Divisions in 15 countries and has revenues of over Eur10 billion.

Cost Effective Solutions Allied offers specialist warehousing and distribution for ambient, chill and frozen. It has a continuous programme of investment in its facilities and network technology to provide a strong growth platform for clients with cost effective solutions.

The business has a proven record of integration with its clients systems, from full integration or simple flat file transfer, to operating all activities directly on the client’s system.

Allied’s distribution network can be designed as dedicated or as part of a multiuser network. The business operates a range of multi-temperature vehicles from 1 tonne vans up to 44 tonne articulated trucks. It has a delivery network servicing the 32 counties and frequency of deliveries is designed to meet customer requirements. Allied Logistics takes pride in having the most comprehensive and advanced IT tools to enable it to employ robust controls and remain in full control of all stock movements at all times.

Its multi-temperature vehicles are capable of holding ambient, chill, frozen and ice cream. Through the

Vehicle Management System’s (VMS) GPS system, the company is able to track its entire fleet at all times to ensure all deliveries are on time and within temperature.

Customer Benefits Real time stock management ensures customers have an opportunity to reduce stock inventory and improve margin performance across affected stock lines. Voice enabled picking is key to delivering this information accurately as well as helping to deliver excellent stock accuracy and productivity standards. As well as providing a range of services, Allied ensures that continuous improvement plans are constantly being implemented. Its practices and models are under constant review to reduce overheads and ensure the business is responding to

FOOD & DRINK BUSINESS EUROPE, MARCH 2013

the needs of the supply chain.

Allied offers a wide range of client specific KPI data. Reporting standards are extremely important to the business and KPI analysis is additionally provided through specialist software. Reports are tailored to suit clients needs.

It works under BRC Storage and Distribution accreditation, which is linked to the company’s ISO 22000 Food Safety Management standard.

Allied’s approach to food safety is based on the internationally recognised Hazard Analysis Critical Control Point (HACCP) system and it is an active member of the Global Food Safety Initiative Storage and Distribution Working Group which defines key requirements for the benchmarking of existing food safety management schemes.

Sustainability Sustainability at the Irish supply chain solutions specialist is about being able to meet the needs of today without compromising on the company’s strategic goals to reduce waste. The success of sustainable supply chains is closely linked to the appropriate use of transportation. Allied’s advanced vehicle technology and active route management improves efficiency and minimises non-productive mileage. It implements continuous plant investment to reduce carbon output.

Allied’s strategy is to drive efficiency and extend its services. It puts the customer first and works hard to understand and meet customer requirements cost-effectively. A highly motivated and experienced team, with over 30 years experience, takes pride in a high degree of interaction, communication and support with customers.

These factors are a hallmark of the company’s customer relationships and a priority for its Quality Team. J 33

I TEMPERATURE CONTROLLED LOGISTICS

Wincanton Belfast is Chilled Operator of the Year incanton Belfast has been voted W Chilled Operator of the Year 2012 at the annual Export & Freight Transport & Logistics Awards. Wincanton operates the Belfast depot on behalf of Musgrave Retail Partners NI, wholesale distributors of frozen, chilled and ambient grocery to the SuperValu, Centra and Mace brands in Northern Ireland. The depot regularly services the needs of over 260 independent retail outlets with a 6-day per week delivery service.

Wincanton runs a mixed rigid and articulated fleet of temperature controlled vehicles. There is a mixture of dedicated frozen or chilled vehicles and multi-temp vehicles to give flexibility to deliver variable order volumes. Seasonality, promotional activity

and weather conditions affect the sales of chill and frozen foods and the flexible nature of the fleet allow strict delivery on time criteria to be met consistently.

All drivers are trained in safe and fuel efficient driving techniques, and they undergo food safety training before being assigned to temperature controlled deliveries. They are instructed in the operation of the refrigeration systems on the vehicles and know the temperature limits for each regime.

Andy Short, General Manager at Wincanton, says: “Our drivers are in company uniform, not just because image is important, but because cleanliness is important for food hygiene. Food safety training for drivers and refrigeration system

operation training are refreshed every two years.”

Wincanton provides award-winning supply chain services to many of the UK and Ireland’s most progressive organisations, and has an annual turnover of over £1.2 billion. Further information on Wincanton's expertise and services can be found at www.wincanton.co.uk J

Glanbia Consumer Foods Chooses Cullina ajor food and dairy producer Glanbia M Consumer Foods has appointed Culina to manage the distribution of its chilled portfolio into the UK market. The first products to be introduced are a new range of WeightWatchers products for the large UK butter and spreads category.

“A bigger presence in the UK is important to us and we recognised that branded products represented the right way to go,” says William Wake, UK country manager for Glanbia Consumer Foods. “To be successful we needed a supply chain partner that offered a full range of services and scalability to grow with us. Culina met all of our requirements.”

Based in Ireland, where it is the largest milk supplier, Glanbia has grown in a number of key markets in Europe and North America to become one of the biggest international dairy and food pro-

ducers. Historically the company’s consumer goods division has had a low profile in the UK but changes in market conditions led it to reassess its position and seek new opportunities. Feedback from retailers was encouraging when Glanbia Consumer Foods reached an agreement with WeightWatchers, which did not have a butter product in the UK, to supply two new low fat products into the UK’s giant butter and spreads category.

The products both have the lowest fat content in their segments of the category, and the lead spread product has around 85 per cent less saturated fat than standard butter. J

New Controlled-temperature Atego BlueTec Hybrid Joins Norbert Dentressangle Fleet orbert Dentressangle, a major European player in transport and logistics, at the forefront N of innovation and committed to reducing its carbon footprint, has just taken delivery of its second Mercedes-Benz Atego BlueTec Hybrid, the first hybrid truck specifically intended for the transport of goods under controlled temperature. This 12-tonne truck will be operated out of the Norbert Dentressangle site at Miramas (France) and dedicated to the delivery of controlled-temperature (chilled and frozen) products, mainly for the food industry. The first (ambient temperature) truck of this type was delivered a year ago and operates in the Paris region.

The Atego BlueTec Hybrid 1222 L enables haulage companies to significantly improve their ecological footprint by: reducing CO2 emissions by 25%, and responding to specific constraints in terms of noise emissions since the truck meets “PIEK” standards, which stipulate that the noise level for night deliveries must not exceed 60 decibels, the equivalent of a normal conversation. J FOOD & DRINK BUSINESS EUROPE, MARCH 2013

35

I

MEAT & POULTRY

2 Sisters Food Group Enters Red Meat Market 2 Sisters Food Group has agreed to acquire VION’s poultry and red meat processing businesses in the UK. The acquisition will help to meet growing demand from 2 Sisters’ poultry customers and further diversifies its offering to include red meat, supporting the food group’s strategy of serving more meal occasions.

Sisters, which employs over 18,000 people and has annual sales of over £2.3 billion, operates from 42 sites in the UK, Ireland, India and Europe, supplying poultry, ready meals, sandwiches, salads, pies, pizza, fish, puddings, cakes and desserts, and biscuits. Its brands include Fox’s biscuits and Goodfella’s pizzas.

2

The integration of Northern Foods into 2 Sisters has created a £2 billion turnover powerhouse within the British convenience foods market.

The acquisition, for an undisclosed sum, follows the decision by VION’s Dutch parent company to exit its UK operations.

VION’s poultry and red meat businesses are suppliers of poultry, beef and lamb to the retail and food service sectors in the UK and Europe. They have 11 processing sites in the UK and approximately 6,000 employees but have suffered from challenging trading conditions, in particular in poultry, with the loss of a number of major contracts.

Viable Future Ranjit Singh, chief executive of 2 Sisters Food Group, says: “We are delighted to be acquiring VION UK’s poultry

and red meat businesses. They have faced significant uncertainty and tough trading in recent months, but the acquisition secures a viable future. With the majority of the operations being in Scotland and Wales, we are delighted that the Scottish and Welsh governments are supportive of this deal and we look forward to working with them and developing a sustainable future for these businesses. This acquisition will safeguard a key supply chain for high quality British poultry and meat, offering reassurance to farmers in England, Scotland and Wales and upholding the quality and provenance that UK customers and consumers deserve.”

The VION UK poultry sites are at Coupar Angus and Cambuslang in Scotland, at Llangefni and Sandycroft in Wales and at Basildon, Witham and Eye in England. The red meat sites being acquired are McIntosh Donald at Portlethen in Scotland, St Merryn Foods at Merthyr in Wales, along with the St Merryn operations at Victoria and Bodmin in England.

Ranjit Singh continues: “At 2 Sisters,

Ranjit Singh, chief executive of 2 Sisters Food Group.

we put the customer at the heart of everything we do and in line with our customers’ strategies, these businesses will help us to shorten the supply chain for consumers and meet growing demand for British sourced food. Our immediate focus will be to improve performance, as we have successfully done with our previous acquisitions.”

VION’s UK pork division was sold to a management buy-out consortium backed

by Leeds-headquartered private equity firm Endless in December 2012. This business has since been renamed Karro Food Group.

VION is continuing to explore opportunities for its Welsh Country Foods business which is currently in a 90 day consultation process following a key customer delisting it as a supplier.

2 Sisters operates from 42 sites in the UK, Ireland, India and Europe, supplying poultry, ready meals, sandwiches, salads, pies, pizza, fish, puddings, cakes and desserts, and biscuits

FOOD & DRINK BUSINESS EUROPE, MARCH 2013

Acquisition Spree The purchase of VION’s poultry and red meat processing businesses in the UK is the third major acquisition by 2 Sisters in the last two years. In early 2011, 2 Sisters successfully completed the audacious £342 million acquisition of Northern Foods, one of Britain’s largest convenience food processors. The last minute bid effectively 37

snatched Northern Foods from under the nose of Greencore, also one of the largest convenience food groups in the UK, which was confident of achieving an allshare merger of equals to form Essenta Foods, a £1.7 billion turnover business.

Northern Foods’ chilled business incorporated sandwiches, salads and ready meals operations, while its branded division combined the group’s frozen and bakery activities including Fox’s biscuits, Goodfella’s pizzas, Donegal Catch fish, Green Isle vegetables, McDougalls and Holland’s pies, and Matthew Walker puddings. Northern In addition to poultry, 2 Sisters supplies ready meals, sandwiches, Foods’ customer base encom- pizza, fish, puddings, cakes and desserts, and biscuits. passed all of the UK’s major food retailers and a number of discount 2 Sisters has created a £2 billion turnover retailers along with some food service powerhouse within the British conveoperators. nience foods market. The acquisition was The integration of Northern Foods into arguably the most significant in the UK food industry since Premier Foods’ purchase of RHM in early 2007. Indeed, the combined 2 Sisters and Northern Foods business now rivals Premier Foods as the UK’s largest domestic food processor.

In late 2011, 2 Sisters purchased Premier Foods’ loss-making Brookes Avana business, comprising RF Brookes chilled foods and Avana Bakeries, for £30 million in cash. The move represented an important step in streamlin2 Sisters’ brands include Fox’s biscuits and Goodfella’s pizzas. ing Premier Foods’ I

portfolio following its decision to focus investment behind eight ‘power brands’ and to dispose of selected businesses in order to reduce debt.

Brookes Avana supplies chilled convenience products, including ready meals, accompaniments, chilled pizza and pies. Avana is one of the UK’s leading suppliers of high quality bakery, cake and dessert products. Brookes Avana reported a trading loss of £0.1 million on a turnover of £203.6 million for the year ended 31 December 2010.

Humble Origins From humble beginnings in salads, pies, 1993 as a small-scale retail frozen poultry cutting operation, 2 Sisters has developed into a major international business through a combination of organic growth and acquisitions. In addition to increasing the scale of its core poultry business, acquisitions have also helped to diversify 2 Sisters’ product portfolio.

For example, during 2010, 2 Sisters acquired Storteboom Group, a Eur400 million turnover Netherlands-based poultry processing business, and moved into the seafood market with the purchase of Five Star Fish, a leading £65 million turnover UK supplier of added-value, prepared fish to the food service sector; and Harry Ramsden’s, the famous seafood restaurant chain.

The purchase of VION’s poultry and red meat processing businesses in the UK will allow Ranjit Singh Boparan to add further scale to his food business empire and broaden its product range and scope, while improving overall efficiency and cost effectiveness. “Our approach is simple,” he says. “It’s about producing the best tasting product at the lowest cost, with fantastic service.” J

MEAT & POULTRY

New Chief For Tulip ulip has confirmed the appointment of Chris T Thomas to the role of chief executive of its UK operation with effect from May 15th, 2013. Part of Danish Crown, one of Europe's largest meat companies, Tulip has 18 manufacturing sites in the UK and employs approximately 8,000 people.

Chris Thmoas will join Tulip from Adelie Foods where, in the position of chief executive since 2009, he has been instrumental in establishing Adelie as one of the UK's leading food to go businesses, supplying the retail, coffee shop, travel and contract catering sectors. Before joining Adelie, Chris Thomas held senior management positions with

Chris

Thomas,

executive of Tulip.

new

chief

businesses including Mars, PepsiCo, St Ivel and, most recently, as managing director at Bakkavor, during which time he has gained a broad wealth of experience across a range of disciplines including R&D, supply chain, commercial and operations.

Chris Thomas will replace Tulip current chief executive and chairman Flemming Enevoldsen, who will relocate back to Denmark at the beginning of July where he will continue to work with the Danish Crown Group as chairman of Tulip and chief executive of DC Foods, which includes the four processing companies within the Danish Crown Group. J

FOOD & DRINK BUSINESS, MARCH 2013

39

Automated Solution Puts the Fizz Back into Production ithin any business, finding a likeW minded supplier can be a recipe for success and in the case of Ridgeview Wines, the UK-based family-run wine producers, investing in an Endoline system solution has achieved exactly this. By automating a previously labour intensive operation Endoline has increased the efficiency and productivity on a production line which has an annual volume output of a quarter of a million bottles, while reducing the need for manual labour.

Stockists to several leading British and international retailers, including Waitrose and M&S, Ridgeview Wines produce their award winning English Sparkling Wine at their 100 acre Sussex vineyard. However, manually forming packing and sealing cases was an inefficient process.

“We needed to increase our production and utilising skilled winemaking staff to perform this task is not only a waste of resource but it adds no value to the product so we decided to automate this process,” explains Tamara Roberts, General Manager of Ridgeview Wines.

Endoline's automated solution has increased the efficiency and productivity of the Ridgeview line.

Endoline’s Solution Previously operators would form the wine case manually, staple the bottom, and load the wine bottles into it – a laborious task which required numerous members of staff being drafted in if a large order needed to be packed.

Endoline’s solution to this challenge was to install a bespoke case former, engineered on an incline specifically to enable efficient packing of bottles.

The case former folds the lower flaps and securely holds the open case to allow packing to take place with both hands. The filled boxes are then pushed by the operator onto an Endoline conveyor system which has been integrated with a labeller and sealed by an Endoline case sealer which simultaneously tapes both the bottom and the top of the box before being pushed through to a second feed table ready for palletising.

Ridgeview produce 250,000 bottles of homegrown sparkling wine per annum.

40

More Efficient Production “Endoline’s machinery has simplified a previously complex and labour intensive task. Our team have found the line extremely easy to use and fewer people are needed to operate

FOOD & DRINK BUSINESS EUROPE, MARCH 2013

the line resulting in a more efficient production,” comments Tamara Roberts. “We have made significant savings in productivity, giving us more time to focus on the areas which add value and ensure the quality of our products.”

Line output has increased enabling Ridgeview to prepare orders more effectively and be more responsive to customer requirements. However it was not only Endoline’s ability to create an automated system which attracted Ridgeview to their solution - but also for the like-minded nature of Endoline’s family business.

Family Businesses “There are six members of our family running Ridgeview and Endoline has a similar set up with five members of the Yates’ family working in the company. We also share a similar ethos in the fact that we pride ourselves on manufacturing UK produce – from within the UK. Couple this with the solution they provided to automate our line and Endoline were the clear favourite,” she says.

For further information on any of Endoline’s extensive range of machines, contact Endoline on Tel + 44 (0) 1767 316422, Fax 01767 318033, email sales@endoline.co.uk or visit www.endoline.co.uk. J

I

MARKET FOCUS

UK Cider Can Move Beyond its Core Market With lager companies now also looking to capitalise on the growth in the UK cider market, it seems that consumer demand for this fruity drink shows no signs of losing fizz just yet. ndeed, according to new research from Mintel, three in five adults (60%) now drink cider, significantly up from the previous year’s total of 47%. This progress means that in 2012, a greater share of adults drank cider than spirits (57%).

Cider is even closing in on beer in terms of usage. While its recent successes have helped a number of cider producers to grow rapidly, Mintel research shows that the market’s future prospects could be equally positive as, even among cider drinkers, 23% state that it does not always occur to them to drink it. Further boosting the visibility of the drink in the on- and off-trade could therefore reap spectacular rewards for operators.

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still managed overall growth of 18% between 2007 and 2012.

Continuing Growth The success of cider looks set to continue in the coming years, with new producers continuing to build momentum and with strong consumer demand leading to a better range of ciders in both the on- and offtrade sales channels. Over the next five years, Mintel forecasts that the market will reach sales of £3.7 billion, driven partly by duty increases but also growing user numbers.

While apple remains the nation’s favourite flavour of cider, drunk by 47% of adults, there are striking signs of growth coming from the pear and flavoured segments. Pear has grown to be a firm favourite amongst cider drinkers, and is drunk by almost four in ten (37%) adults, buoyed by the entry of brands such as Strongbow and Stella Cidre into the segment. Meanwhile, almost a quarter (24%) of Brits have drunk any other type of fruitflavoured cider, with flavours in this adventurous segment ranging from cloudberry to toffee apple.

Pear has grown to be a firm favourite amongst

cider drinkers, buoyed by the entry of brands such Star Performer as Strongbow and Stella Cidre into the segment.

Chris Wisson, senior drinks analyst at Mintel says: “Cider continues to stand out Challenges as one of the star performers among alcoWhile the cider market continues to make holic drinks markets. Usage has flourished great strides, there are still a number of in recent years as the market has improved challenges for producers to overcome. its image, with strong growth at the premiMany of these relate to its image as um tier. The market has also performed amongst lager, wine and RTD drinkers, well on the back of its accessibility, with its just 8% think that cider accessible flavour profiles is sophisticated while helping to attract new 14% think that it is users such as women and worth paying more for, 18-34 year-olds. While both of which are signifimany drinks markets are cantly behind associastruggling to grow in real tions with wine. terms and are also ham“While cider enjoys a pered by the governrange of positive associament’s tax escalator, cider tions among drinkers, is one of the anomalous such as being refreshing, success stories which is natural and suitable for also showing underlying men and women, sophisvolume growth.” tication is an area where Cider is in fact one of Over the last five years sales of cider have increased by 32% to reach £2.7 billion in 2012. there is significant room the few success stories in the alcoholic drinks landscape, achieving “Pear cider is now a highly profitable for improvement. The cider market has steady growth despite the economic down- segment of the market and one which pro- improved its image greatly over the past turn. Over the last five years sales of cider ducers should almost be prioritising on a decade and should continue working to have increased by 32% to reach £2.7 bil- par with apple cider. While apple contin- evolve away from unfav-ourable historical lion in 2012, up from £1.8 billion in 2007 ues to drive most of the sales, pear can also associations such as those with underage and with sales increasing 5% in the last be an effective gateway into the market, and binge drinking, and towards being a year alone. Meanwhile volume sales have with a particular appeal to female sophisticated drink to be seen with.” Chris Wisson concludes. J posted slower growth, although the market drinkers,” Chris Wisson continues.

FOOD & DRINK BUSINESS EUROPE, MARCH 2013

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I PALLETISING & PALLET WRAPPING

Neatly Packaged by Aetna For Potter Logistics otter Logistics is a multi-based P logistics company that provides a high quality warehouse

from Aetna.

and nationwide distribution service to a diverse range of industries. With this diversity of logistic services comes the need for packaging solutions that ensure that the goods reach their destinations in good condition. Specialist packaging company, Aetna Group UK, has provided an excellent solution for Potter’s York distribution centre (DC) in the form of its 507 Robopac rotary wrapping machine.

Aetna’s origins are in Italy, with its UK base in Bedford. Having 507 Robopac in situ at the York DC. been established in the UK for over 20 years, the company has built a Robopac Wrapping Machines reputation as a market leader in the pro- In February 2011, Potter Logistics bought duction of automatic stretch and shrink two 507 Robopac wrapping machines for pallet wrappers. There is a variety of its Selby site to wrap jars of jam for Greencore Foods. Three similar machines were purchased for the Ripon DC to wrap products ranging from hair care to industrial chemicals. There is also a further machine at its Droitwich site. These six machines were purchased on the back of a trial at Selby which showed a significant saving in employee time and packaging film. Three months ago, Potter Logistics, made the decision to invest in a new wrapping machine for its York DC. Aetna’s 507 Robopac, was selected as it had proved itself to be a real asset at the Aetna Group UK has provided an excellent other sites. solution for Potter’s York distribution centre.

Operations Manager of Potter Logistics’ choice to fit a variety of products - verti- York DC, John Myers, is very pleased cal and horizontal stretch wrapping with its performance. “The machine was machines, manual, semi-automatic and purchased with a particular client in mind automatic shrink wrapping machines and and it has been a godsend,” he says. “We five taping and case erector machines. were previously wrapping up to 60 pallets Potter Logistics has come a long way by hand each day, which was both awksince its beginnings as Topcliffe ward and time consuming. I’m pleased to Transport Company, a single 10ft truck say that the machine is fully utilised. operation carrying grain and fertilisers on “We opted for the Aetna 507 Robopac local routes in the 1960s. In the interven- for two reasons. Firstly the machine and ing years it grew significantly, acquiring a Aetna were known to Potter Logistics. network of sites and similar transport Having already been installed in several companies, most recently House of James of its other sites, everyone considers it a Transport which has now become the very useful tool. And secondly, the comcompany’s York DC. pany has always received excellent service 42

FOOD & DRINK BUSINESS EUROPE, MARCH 2013

Product Security and Cost Savings John Myers continues: “We introduced the wrapping machine to the York DC to increase product security and to save money, and it has fulfilled the first purpose extremely well. We are planning to analyse the cost saving in a couple of months by which time we shall have been using it for about six months. Based on experience of Potter’s other machines, however, it should be delivering a meaningful saving.

Despite not yet being able to make a valid judgement in terms of financial benefit, staff members think it’s great and are very happy with it. I’m glad to say that all the people who used to wrap by hand have been redeployed into other areas of the business thanks to significant expansion.”

He concludes: “All told, we have been very impressed with Aetna, both with the service we’ve received and the Robopac’s performance. It was fitted quickly and without fuss, and we’ve had no occasion to call on them for help as yet. Our other site managers assure me, however, that there is always someone on the end of the phone should the need arise. Hopefully we won’t need this support, but you can ask for no better service than that.” J

Wrapped pallets.

I PALLETISING & PALLET WRAPPING

Save Money and Protect Your Products With LOCK N’ POP – An Alternative to Plastic Pallet Wrap t is always a good idea to look at costs and Idepressed ways of reducing them and with demand in current economic times it is more of an imperative. Most of the time of course the focus is on making processes more efficient but the big savings are generally only possible when processes are done differently.

LOCK N’ POP pallet stabilisation systems do just that: they enable companies to secure their pallets differently and they are now being used extensively throughout the UK where companies seek both a reduction in operating costs and in the use of plastic packaging.

LOCK N’ POP systems provide an alternative approach to stabilising and protecting pallet loads in the supply chain. This is the result of using the LOCK N’ POP system to provide load stability and pallet wrap to provide dust and contamination protection. That means improved pallet stability and less product damage, reduced use of plastic wrap, reduced landfill and

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reduced operating costs.

The maths are simple! Stabilising a pallet using plastic pallet wrap typically costs between 50p and £1.00. Using a LOCK N’ POP system usually costs only 10p to 20p per pallet and allows a reduction in the use of pallet wrap of at least 50%. This typically gives an overall reduction in the cost of stabilising and protecting a pallet of 30%.

LOCK N’ POP is also effective in eliminating the need for layer pads and corner posts. In such cases the cost of pallet stabilisation and protection can be reduced by well over 50%.

In the UK companies which use LOCK N’ POP have experienced savings of about £35,000 in the cost of stretch wrap and seen a reduction of over 20

FOOD & DRINK BUSINESS EUROPE, MARCH 2013

tonnes of plastic waste sent to landfill.

The invisible magic! LOCK N’ POP pallet stabilisation uses a cold adhesive with high shear strength giving pallet stability by locking items together. However because the adhesive has a low tensile strength items can be easily separated. The magic of this invisible adhesive is that it does not damage the fibres of the packaging material and leaves no evidence of its use.

Blue chip companies in many industries use LOCK N’ POP systems to stabilise their pallets. They save money because they use less plastic wrap. They also save because their products get to their customers without pallet damage and so reduce claims.

And finally it’s a benefit to their customers because they have less plastic waste to send to expensive landfill, up to 20 tons/year for some companies.

LOCK N’ POP pallet stabilisation is a different approach. For more information contact tim.symes@gransden.org or on 01223 257899. J

I PALLETISING & PALLET WRAPPING

Final Solution to Palletising Issues al-cut is a new and innovative method P of solving palletising issues resulting from paper layer sheets. Anti-slip layer

pre-programmed length, directly from the roll. This is customised and programmed to suit the specific production line.

The benefits of Pal-cut have been proved by many high-volume production lines such as Kellogg’s, Silver Spoon and Noble Foods. This system is produced by Pal-cut in Denmark and distributed by LINDUM in the UK. For further information visit www.palcut.com or www.lindumpackaging.com. J

sheets are the most efficient way to increase pallet stability, but palletising robots have always struggled with picking them up. Palcut eliminates drop and multiple pickups, whilst increasing the speed and efficiency of the production line.

The fully automatic dispenser quickly and accurately cuts paper layer sheets to a

New Blu-Robot Pick and Place Solutions For Budget Conscious Manufacturers esponding to manufacturers’ demands R for more economical automation solutions, multi award winning packing equipment designer and manufacturer Pacepacker Services has launched a range of second user Blu-Robot pick and place systems which are typically half the cost of a new robot.

Incorporating a second user robotic arm, Pacepacker’s economical Blu-Robot range comes with over 20 different end effectors to suit bespoke pick and place applications from tubs, trays, netted products, pots and bulk bags, with pick-up speeds of 30 cycles per minute.

Throughput speed will depend on the robot selected for each application.

“We realise that new automation systems can be cost prohibitive particularly for low volume packers or seasonal producers,” explains Dennis Allison, MD of

Pacepacker Services. “To address this the second-user Blu-Robot pick and place system, which is typically half the cost of a new robot, presents an affordable option for smaller packers looking to benefit from automation and still achieve a realistic ROI.” As a robotics systems integrator, and an active supporter of BARA’s Automating Manufacturing Programme which aims to increase robot uptake in the UK, Pacepacker launched a pre-owned BluRobot palletising system in 2011 which provided both automation-shy SME manufacturers and seasonal packers an economical alternative to first-user systems.

The success of this initiative has led to the launch of the Blu-Robot pick and place system as Dennis Allison explains: “Pick and place is an area of automation which has historically been widely over-

looked due to the complexity of packing irregular products. However it is also a labour intensive operation which can lead to product wastage due to human error.”

The pre-owned/second user robotic arm, typically Fanuc, originates from the automotive industry and approximately 35% of the way through its expected 100,000 operational hour lifespan.

Pacepacker re-programmes, services, paints and fits the appropriate end effector to the system ready for its new occupation before installing this system with full servicing, spares and a one year warranty.

“I’d defy anyone to identify that we’ve installed a pre-owned robot; it came delivered as new,” says Blu-Robot customer and potato grower/packer Preva Produce Managing Director Ian Anderson. For further information visit www.pacepacker.com. J

Blu-Robots - An economical pick & place or palletising

Pacepacker has developed a wide range of gripper end effectors to suit bespoke pick

solution for veg packers.

and place applications including punnets of fruit.

FOOD & DRINK BUSINESS EUROPE, MARCH 2013

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I DEPOSITORS & FILLERS

Turbo Systems Acquires FP Packaging Machinery urbo Systems has acquired the rights to T manufacture the entire range of FP Packaging Machinery's de-nesting and associated equipment at Turbo's Hull factory.

Along with new equipment manufacture, Turbo looks forward to supporting FP's many existing clients by providing after sales service, spares, service engineering and modifications to existing machinery.

FP customers will benefit from the wide range of expertise and skills available at the Turbo factory, which has had ISO 1900 / 2001 Accreditation since 2003 and employs 80 people encompassing a wide range of inhouse engineering design and manufacturing capabilities. Customers will also benefit from Turbo's proven ability to manage major turnkey projects with engineering and production capacity significantly higher than was previously available to FP. Turbo Systems was formed in 1954 and have been successfully designing; manufacturing and installing food processing equipment for several industry sectors. The acquisition will expand the full range of products.

Former FP Managing Director, Charles Guest, joins Turbo as Technical Sales Director for the FP product range, bringing 14 years experience as a Director of FP to ensure complete continuity for both the commercial and technical support of the range. Charles Guest says: “This is a major

step forward as there is a very good synergy between the products on both the technical and commercial fronts and on this basis we look forward to offering a well developed and complete range of machinery with the benefits of efficient assembly processes and larger scale buying of parts and materials afforded by the existing Turbo business.

UK Sales Manager, Clive Butcher, is confident that increased sales will come from the FP Systems range of container de-nesting machinery, which will form an excellent complement to the extensive Turbo Systems product range covering the confectionary, bakery, biscuit, fruit, vegetables, dairy, ready meals, pharmaceutical, cosmetic and hardware industries. J

Riggs Autopack Ltd Southfield Street Nelson Lancashire BB9 0LD Tel: +44 (0)1282 440040 Fax: +44 (0)1282 440041 Email: info@autopack.co.uk Web: www.autopack.co.uk

Q Semi or fully automatic depositors & filling machines Q Suitable for small, medium or large scale batch production Q Volumetric piston pump technology Q Accurately fills most types or size of container Q Damage free depositing of fragile particulates up to 38mm3 Q Depositing nozzle to suit to ensure clean cut-off Q Deposit range of 3ml – 5,000ml per cycle Q High quality, robust construction Q Hygienic, quick to strip down, easy to clean Q Easy to use, simple to maintain Q Single or multi-head options Q High or low level frames Q Pneumatic or PLC QMulti-cycle / multi-lane Q Free, professional bespoke design service 46

FOOD & DRINK BUSINESS EUROPE, MARCH 2013

I DEPOSITORS & FILLERS

Riggs Autopack – Manufacturers of Depositors and Filling Machines iggs Autopack design and build high R quality depositors, filling machines, and bespoke conveyor filling lines, for the food production industry.

Established in the 1930’s, they supply food producers of varied type and size with clients typically ranging from start-up companies and cottage industries, through to multi-national groups and international factories. Over the years, Riggs Autopack's filling equipment has improved a large number of food manufacturers production processes and helped companies meet growing demand for their goods.

The Lancashire firm take great pride in their machine range and excellent customer service. Providing a friendly and

professional service, they employ an experienced and highly skilled team encompassing sales, design, production, research and development, parts supply, service and maintenance.

Riggs Autopack's Model 1000 range of depositors and filling machines is the main stay of the business and built in-house at their Nelson factory. They’re available as a semi-automatic stand-alone unit for small to medium scale food production, or as an automatic conveyor filling system for larger batch runs. Manufactured using high quality 316 stainless steel on product contact parts, these machines provide damage free and highly precise volumetric depositing of hot or cold liquid, semi-liquid and suspended solid products, and accurately fill most container types or size.

With quick changeover times and easy set-up, the Model 1000 depositors and filling machines are robust, reliable, hygienic and quick to clean, easy to use and simple

to maintain, with fully adjustable depositing volumes and speeds. They’re supplied with an after sales support package and available for purchase, short or long term hire. A no-obligation on-site machine trial is also available upon request.

If you're seeking to invest in a semi or fully automatic depositing system to accurately fill jars, bottles, pots, tubs, trays, foils, cake tins, cartons, buckets, jerry cans, pouches or bags, then Riggs Autopack could have the solution. For further information contact Riggs Autopack on Tel +44 (0)1282 440040, Email info@ autopack.co.uk or visit www. autopack.co.uk. J

New iSpot Depositor From Unifiller nifiller Europe has unveiled the new iSpot Depositor. With its reworked design, this U versatile machine is a perfect tool for fast, simple, clean and accurate depositing of smooth products (particle size up to 6mm) directly from a bowl, kettle, pail or container.

The new iSpot Depositor is one machine with a ream of applications: • Depositing, decorating, pumping and spraying; • Handling of smooth products such as soups, sauces, dressings, desserts, crèmes, marmalade, fruit fillings, oil, syrup etc; • Depositing directly from a bowl, kettle, pail or container – quick switch between different sizes; • Processing of hot and cold products.

Unifiller Europe is a partner of Unifiller Systems of Canada, which specialises in the design and manufacture of bakery depositors, food service fillers, pumps and automated production lines Unifiller Europe has extensive knowledge and expertise for applications in bakeries, confectioneries, ready meals and other food-processing production. The European operation, which was founded 2003, is located at Lörrach in the Black Forest region of Germany. For further information contact Unifiller Europe on Tel +49 76215836310 or visit www.unifiller-europe.com. J FOOD & DRINK BUSINESS EUROPE, MARCH 2013

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Kerry Ingredients & Flavours Acquires Cape Town-based Orley Foods erry Ingredients & Flavours has comK pleted the acquisition of the Cape Town-based sweet ingredient solutions supplier Orley Foods for an undisclosed sum.

Orley Foods is part of the Libstar Holdings Group and has a 50-year history of providing sweet ingredients for the confectionery, ice cream, beverage, cereal, dairy and bakery markets.

The Orley Foods deal comes a year after Kerry’s acquisition of FlavourCraft, also in South Africa, and complements the earlier purchase of Cargill’s global flavour busi-

ness. It is the latest step in Kerry’s journey to becoming the innovation and development partner of choice for the world’s leading food and beverage brands as they start to meet fast-growing local appetites for the next generation of products in EMEA. Scott Scharinger, President EMEA Developing Markets for Kerry Ingredients & Flavours, comments: “This is a key part of our strategy to work alongside our global customer base, finding ways to deliver our unique range of ingredient and flavour technologies and food science know-how in the territories where they are being consumed. Although South Africa is an important market for us in its own right, it is also the springboard for our expansion into other important and growing sub-Saharan countries such as Nigeria and Kenya.”

Craig Henry of Orley Foods says: “We are very proud to become the newest member of the fast-expanding Kerry family. What’s

particularly exciting for us is joining one of the world’s largest and most highly qualified teams of food scientists and product innovators, with all the benefits that this will bring to our customers old and new.”

Scott Scharinger adds: “Kerry is the only company that can provide a portfolio of technology-based ingredients and flavours for all sectors of the food, beverage and pharma markets. We have the scale for global execution but, as this acquisition underlines, we can also tailor for regional tastes, aligning our ingredients and flavours offering with customer needs in developed and developing markets. Over the months ahead, we will continue consolidating the elements of our South African footprint under our One Kerry model, which will better enable us to deliver value to our customers in the region. The coming year is going to be an exciting one for Kerry.” J

Halal Ingredients on the Menu at Pecan Deluxe eading European inclusions specialists L Pecan Deluxe Candy (Europe) is set to break into new markets in the UK and

for Halal customers and we are responding to that trend by ensuring the availability of certified inclusions. The HFA audit was

abroad after its Yorkshire site was given the seal of approval to produce Halal accredited products. Halal certified products are sourced, manufactured, imported and distributed in accordance with Islamic law to meet the needs of Muslim consumers. After several of its confectionery inclusions passed the strict Halal Food Authority (HFA) audit at its factory, Pecan Deluxe revealed its plans to take advantage of the new opportunities presented by this accreditation.

Pecan Deluxe Technical Manager, Matthew Dobson, explains: “There is a growing trend for quick service restaurants and food manufacturers to cater 48

FOOD & DRINK BUSINESS EUROPE, MARCH 2013

technically challenging as each product had to be individually ratified by the authority as fit for consumption by Muslims.”

He adds: “Pecan Deluxe is committed to offering better choice and more novel ingredients to meet demand from across the world for our 250plus inclusions. Now, Halal food providers can tap into our expertise in getting new concepts to market quickly. We’re confident that being able to offer Halal products will broaden our customer base and ultimately our market share across all sectors of the food industry.”

Pecan Deluxe recently invested over £200,000 in its manufacturing facility in Sherburn-In-Elmet in direct response to increasing demand for its products. J