Food & drink business europe may 2016

May 2016

Irish Distillers Pernod Ricard drives global renaissance of Irish whiskey

Food & Drink Business Website:

www.fdbusiness.com

C o n t e n t s

- 3 M ERGERS & A CQUISITIONS

- 41 B REWING

Coverage of British and international deals.

Anheuser-Busch InBev moves closer to completing SABMiller deal.

P AGE 15

- 5 C OVER S TORY Irish Distillers Pernod Ricard drives global renaissance of Irish whiskey.

PAGE 3

Adam Couch, CEO, Cranswick.

- 44 G ROCERY M ARKET

Aki Laiho, Deputy CEO, HKScan.

Continued growth in UK online grocery shopping.

R EGULARS - 9 -

Processing & Manufacturing . . 19-22, 34, 35 & 40

B EVERAGES BevExpo 2016 - 15th & 16th June Manchester Central.

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Quality & Safety. . . . . . . . . . . . . . . . . . . . 23

Anna Malmhake, CEO, Irish Distillers Pernod Ricard.

Energy & Environment. . . . . . . . . . 27, 37-39

PAGE 17

Janet McCollum, CEO, Moy Park.

Materials & Ingredients . . . . . . . . . . 33 & 34

- 11-22 M EAT & P OULTRY

PAGE 29 Bottling & Packaging . . . . . . . . . . . . . . . . 36

Consolidation to make European meat industry leaner.

Emmanuel Faber, CEO, Danone.

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

PAGE 11

- 25 C OOKED M EATS

Francis Kint, CEO, Vion Food.

Website: www.fdbusiness.com

O’Brien Fine Foods set to accelerate export growth.

- 29 D EVELOPMENT S TRATEGY

Danone to invest €240 million in European early life nutrition facility.

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FOOD & DRINK BUSINESS EUROPE, MAY 2016

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M E E R R G G E E R R S S M McCormick & Company Declines to Make an Offer For Premier Foods McCormick & Company, the US-based spices and spices group, has announced that it does not intend to make an offer for Premier Foods after completing its due diligence review of the British food business. McCormick concluded that it would not be able to propose a price that would be recommended by the board of Premier Foods while also delivering appropriate returns for McCormick shareholders.

The Premier board sees a strong future for an independent Premier Foods, and believes that the foundations have been laid for significant growth and shareholder value creation. The Premier board also considers that the company's longer-term prospects will be enhanced by the co-operation agreement it has recently signed with Nissin Foods Holdings which will expand Premier Foods' range of growth opportunities.

With annual revenues of around US$3.8 billion and operating profit of around US$216 million, Nissin, which invented the world's first instant noodles in 1958, operates in 19 different countries, spanning Asia Pacific, the Americas, Europe, Middle East and Africa.

It is a global leader in instant noodles and has a growing presence in chilled and frozen foods, cereal-based confectionery and yoghurt beverages in Japan.

Cranswick Expands its Poultry Business Cranswick, the UK food producer, has acquired Crown Chicken from the Thacker family and management for £40 million in cash, funded from existing bank facilities. Crown is

& &

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

a leading integrated poultry producer based in East Anglia. For the year ended 31 December 2015, Crown generated revenue of £83.8 million and adjusted EBITDA was £6.6 million.

Adjusted gross assets of Crown at 31 December 2015 were £28.4 million.

Cranswick’s activities are focused within the UK and include the processing and supply of fresh pork, sausage, bacon, cooked meats, premium cooked poultry, charcuterie, pastry products and sandwiches.

Products are primarily supplied into the UK food retail, food service and food manufacturing sectors. Results for the year to 31 March 2015 showed revenues of £1.00 billion and profit before tax of £52.8 million.

Adam Couch, chief executive of Cranswick, comments: “Crown is a well-respected operator in the UK poultry sector and represents an excellent opportunity for Cranswick to continue the development of its UK poultry business, building on the highly successful acquisition of Benson Park, the market leading producer of premium cooked poultry, in October 2014. This acquisition represents important progress in our long term growth strategy of developing new product channels in both pork and other proteins.”

acquire the 48.65% interest in Illovo Sugar that it does not already own for ZAR5.6 billion (£262 million) in cash. ABF acquired its majority shareholding in Illovo in 2006.

Illovo is listed on the Johannesburg Stock Exchange and is the largest sugar producer in Africa. It is one of the world’s lowest cost producers, with leading market positions in South Africa, Malawi, Zambia and Swaziland and a strong presence in Mozambique and Tanzania. For the year ending 31 March 2015, Illovo generated an operating profit of ZAR1.655 billion (£77 million) on sales of ZAR13.3 billion (£619 million).

AB InBev Snaps Up Another Craft Brewery

Africa is a growth market for sugar, driven by increasing populations and rising incomes.

Illovo is well positioned to capitalise on this growth although high global sugar stocks, low world sugar prices and forthcoming changes to the EU sugar regime have created a challenging trading environment. AB Sugar, an operating division of ABF, has a strong track record of commercial development and delivering performance improvement programmes and believes that full ownership will accelerate Illovo’s progress in these areas.

AmRest Takes Over Starbucks Stores in Germany

Adam Couch, chief executive of Cranswick.

ABF Acquires Full Ownership of Illova Sugar Associated British Foods, the UK-based diversified international food, ingredients and retail group, has agreed to

Germany is the largest market for Starbucks in continental Europe.

AmRest, founded in 1993 by current supervisory board member Henry McGovern, and based in Wroclaw, Poland has been a partner licensee for Starbucks since 2008. Currently, AmRest operates 103 Starbucks stores, a portfolio to which the 144 stores in Germany will be added.

AmRest Holdings, Starbucks exclusive licensed partner in the Czech Republic, Hungary, Poland, Romania, Bulgaria and soon in Slovakia, has signed an agreement with Starbucks Coffee Company to acquire its retail stores in Germany. Since entering Germany in 2002 with two stores in Berlin, Starbucks has expanded to 158 stores across the country. Indeed,

FOOD & DRINK BUSINESS EUROPE, MAY 2016

Anheuser-Busch InBev has acquired Birra del Borgo, one of the leading craft brewers in Italy, for an undisclosed sum.

AB InBev will provide the support to allow Birra de Borgo to expand its brewery know how and infrastructure, continue to innovate and bring new beers on the market through its distribution system. Founder Leonardo Di Vincenzo will continue to lead Birra Del Borgo as chief executive of the company.

The acquisition of Birra del Borgo marks the latest in a series of purchases of craft beer businesses by AB InBev. The global brewer recently completed its eighth craft brewery company in the US and its sixth in the last 18 months, when bought Devils Backbone Brewing Company. AB InBev has also been adding craft breweries in other markets to its portfolio. For example it purchased London-based Campden Town Brewery and Torontobased Mills Street Brewery late last year.

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COVER STORY

Irish Distillers Pernod Ricard Drives Global Renaissance of Irish Whiskey Irish Distillers Pernod Ricard is nearing completion of a €237 million investment to upgrade and expand distillery, maturation, bottling and warehouse capacity to meet rapidly growing global demand for Jameson, the company’s flagship Irish whiskey brand.

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rish Distillers Pernod Ricard is Ireland’s leading supplier of spirits and wines and produces famous Irish whiskeys including Jameson, Powers Gold Label, Paddy and the Single Pot Still range of Midleton – Midleton Barry Crockett Legacy, Powers John’s Lane, Greenspot and Redbreast. The portfolio also encompasses other spirit brands such as Cork Dry Gin and Huzzar Vodka. The company also markets and distributes Pernod Ricard premium wine and spirit brands within Ireland.

received consistent marketing investment to stress the brand’s unique qualities, its time-honoured triple distillation and the passion of its master distillers and blenders.

Investment Programme Having completed a Eur220 million investment, which doubled production and bottling capacity to meet global demand for its products in 2015, Irish Distillers Pernod Ricard has now embarked on an additional Eur17 million expansion to increase bottling capacity at its Fox &Geese site in Dublin to 7.5 million cases – or 120 million bottles – per year by 2017, with the creation of 30 new jobs.

“Irish Distillers’ portfolio of brands has been growing by doubledigits for the last twenty years and we are continuously investing in our operations to keep pace with demand,” explains Anna Malmhake, chairman and chief executive of Irish Distillers Pernod Ricard. “Our long-term vision is for Irish whiskey to regain its place as the biggest whiskey category in the world. Investing in critical infrastructure such as the Fox and Geese bottling facility will enable us to realise that vision.”

Indeed, the Fox & Geese site is central to the continued growth of Pernod Ricard’s Irish business and its global ambitions for Irish whiskey, headed by the Jameson brand. When Pernod Ricard acquired Jameson in 1988, the brand sold just 466,000 cases globally, with Ireland as its main market. In 2015, Jameson passed the 5 million cases barrier and continues to grow at an impressive rate globally.

Anna Malmhake, chairman and chief executive of Irish Distillers Pernod Ricard, with Liam Donegan, general manager for bottling operations.

Irish Distillers Pernod Ricard employs over 600 people across its distilling and maturation operations in Cork and its bottling and head office sites in Dublin. Irish Distillers Group was formed in 1966 following the merger of three of the major Irish whiskey distillers - John Jameson & Sons, established in Dublin in 1780; Powers & Sons, founded in Dublin in 1791; and the Cork Distillery, which dates back to 1825.

Heart of Operations “The Fox & Geese facility is at the very heart of Irish Distillers’ operations,” points out Liam Donegan, general manager for bottling operations at Irish Distillers Pernod Ricard. “It’s where we blend, bottle, warehouse and distribute our products. The facility currently employs 160 people on a full-time basis, with an annual output of 6 million 9-litre cases of whiskey, and a storage capacity of 10,000 pallets.”

Global Distribution Irish Distillers has been part of Pernod Ricard, the world’s joint leader of wine and spirits, since 1988, following one of the most protracted takeover battles in Irish corporate history. Pernod Ricard was successful in acquiring Irish Distillers against a rival bid from GrandMet, Allied-Lyons and Guinness. Being part of an expanding international drinks group has provided Irish Distillers with access to Pernod Ricard’s extensive global distribution network and resources.

Following its acquisition of Irish Distillers, Pernod Ricard was quick to identify the massive potential for Jameson in international markets and made it a flagship brand. Jameson has subsequently FOOD & DRINK BUSINESS EUROPE, MAY 2016

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site is completed next year, the facility will be ‘world class’. “Our investments at the Fox & Geese facility will allow us to deliver a fully automated bulk intake and blending facility that will be as advanced as any global bottling facility. This will afford us the ability to continue to be Ireland’s leading supplier of spirits and wines and producer of the world’s most well-known and successful Irish whiskeys,” he remarks.

Irish Distillers Pernod Ricard is working with a number of key local partners as it continues to grow its business. “PJ Hegarty & Sons is acknowledged as one of Ireland's leading and most progressive building and civil engineering companies and is engaged as a civil partner. BCD Engineering is one of the leading firms in the field in Ireland and work with us as process partner.” Liam Donegan continues: “PM Group is one of the most respected engineering design, architecture, project and construction management firms in the world and is engaged in design and project management with us.”

In 2015, Jameson passed the 5 million cases barrier and continues to grow at an impressive rate globally.

The Fox & Geese facility takes in bulk whiskey components from the company’s operations in Cork, blends and bottles them and prepares them for international distribution. From Fox & Geese Irish Distillers’ brands are exported to more than 130 markets across the world, with over 50 of those experiencing doubleand even triple-digit growth in recent years.

Continued Growth Irish Distillers Pernod Ricard is continuing to expand in international markets as it spearheads the growing resurgence in Irish whiskey through its iconic Jameson brand and its growing portfolio of premium Single Pot Still Irish whiskeys. Jameson achieved its twenty-sixth year of consecutive growth in 2015 as it reached sales of 5 million cases. Volume was up by 8.5% and value growth was

Benefits in Costs and Efficiency “The expansion is primarily designed to drive capacity, but will see incremental benefits in costs and efficiency around water consumption. This will be particularly relevant when we are fully ISO50001 registered,” says Liam Donegan.

The Fox & Geese site is in the process of preparing for ISO50001 registration, which is now considered the benchmark standard worldwide for Energy Management. The green technologies being implemented will focus around reduction of water consumption and the monitoring of water and energy usage which will lead to a greater ability to minimise energy usage, more effectively meet legislative and regulatory requirements and incorporate energy efficiency in the planning of all new investments.

Liam Donegan and his team are also focusing on reducing the carbon footprint and improving the sustainability of the packaging being used, including light weighting and promoting the use of local suppliers.

Lean Approach “Safety and efficiency are always to the forefront of our thinking when it comes to our continuing expansion and investment. Like most manufacturing sites lean methodologies drive our thinking in these areas and we are constantly seeking new and innovative ways to improve these facets of our operations,” he stresses.

When the upgrade and capacity expansion at the Fox & Geese

The new still house at Irish Distillers Pernod Rocard’s site at Midleton in County Cork.

Pernod Ricard is the world joint leader in wine and spirits.

an impressive 10.2% for the 2014/15 financial year. Consistent value growth ahead of volume remains a key objective for Jameson.

Of the 130 plus markets in which Jameson is sold around the world, 53 achieved double- to triple-digit growth last year.

The Jameson brand has maintained its strong growth in the first half of Irish Distillers Pernod Ricard’s current financial year. “The six-month period to the end of December 2015 was another positive one as our portfolio of premium Irish whiskey brands, led by Jameson, continues to drive the global renaissance of Irish whiskey,” says Anna Malmhake. “After hitting the milestone of 5 million cases sold last year, Jameson experienced volume growth of 8%, while the crucial value growth was 11% in the first half of the fiscal year. More than 50 markets are in double- to triple-digit growth.”

In the first half of the year Irish Distillers’ portfolio of prestige whiskey brands (Redbreast, Green Spot, Midleton Very Rare) achieved volume growth of 30% and value growth of 32%. This follows 19% volume growth and 26.4% value growth in 2015 and reflects the growing global interest in Single Pot Still Irish Whiskey, the style of whiskey that is unique to Ireland. The prestige brands are exported to 26 markets worldwide, with further expansion planned this year. J

FOOD & DRINK BUSINESS EUROPE, MAY 2016

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I BEVERAGES

BevExpo 2016 – 15th & 16th June – Manchester Central evExpo 2016, a free to attend, two-day event showcasing the B entire beverage supply chain, is the forum for improving trade connections; discovering what is new and innovative; providing you with the tools you need to grow your business. With exhibitors and seminar presenters from the UK, USA, Germany, Belgium and Spain, this is an opportunity to meet with the international supply chain on UK soil.

15th June will see Founder Partners, including Brewing Engineers Association (BEA), BBPA, SIBA and IBD, holding presentations in the world class auditorium under a theme of: ‘Packaging – the vessel that transports a beverage into a brand’.

• Design purchasing and supply of packaging - specification and economics • Canning equipment part 1 supplier view, part 2 user view • Bottling equipment part 1 supplier view, part 2 user view • PET • Filling line hygiene and aseptic packaging • Making it lean • One trip kegs - materials and special considerations - supplier and user views • Sustainability • Making it to the glass • branding and shelf presence.

The two-day seminar programme (15th & 16th June) within Exchange Hall, provides a complementary programme of presentations under a theme of: ‘Do You Know Your Cost To Sell?’

• Trends / Innovation / Market Growth

Exchange Hall Auditorium.

• Fusion Drinks – Cross Innovation Between Alcoholic & Non Alcoholic Brands • Automating Your Process – What You Need versus What You Would Like • Process Innovation • Packaging Your Brand • Environment / Water Management • Dispense – Do You Know Your Cost To Serve?

• How to grow profitably & what you need to spend your money on.

Manchester Central.

Manchester Rich in history and culture, Manchester is one of the UK’s most exciting and energetic cities. Most importantly for the beverage industry, the city boasts a fantastic selection of bars and pubs.

All drinks manufacturers and packers who register to visit the event, are invited to attend the exclusive BevExpo evening at Manchester’s newest venue – The Albert Schloss, Manchester’s first Tankovna, serving the finest German and Czech beer and food.

Join BevExpo exhibitors and seminar presenters in this Bohemian Palace for an eclectic and unique night! Tickets are £36 and this includes: entry, music, 2x steins of beer or 2x glasses of prosecco/soft drinks and food. Tickets are now on sale and available from organisation@bevexpo.com.

Entire Drinks Industry The organisers intend for this event to be the platform for the entire drinks industry. Whether you’re a dairy manufacturer, vintner, micro brewer, cider maker, soft drinks or indeed anything drinks – you need to be at BevExpo 2016!

This event is free to attend. Simply pre-register online at www.bevexpo.com. For further information please contact organisation@bevexpo.co.uk. I

FOOD & DRINK BUSINESS EUROPE, MAY 2016

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I MEAT & POULTRY

Consolidation to Make European Meat Industry Leaner Faced with continuing stiff competition in the retail market which is putting pressure on prices, and a decrease in exports due to the Russian trade embargo and a slowdown in some emerging markets, many of Europe’s leading meat and poultry processors are investing to further enhance efficiency in an attempt to bolster profitability while consolidating to seek protection in greater economies of scale. uropean meat and poultry processors have also had to contend with a series of ‘food scares’ such as the horsemeat scandal, which was first discovered in January 2013, and immediately caused a drop in sales of meat products like beef burgers and beef-based ready meals. Meanwhile, poultry consumption has been undermined by outbreaks of

E

Francis Kint, chief executive of Vion Food.

Avian Flu and the problem of campylobacter on fresh chickens. Meat and poultry processors have responded by investing in more integrated and transparent supply chains.

However, the economic fundamentals remain positive for the European meat and poultry industry. Global meat production has quadrupled in the past 50 years, and the OECD and FAO are projecting production to increase from 297 million tonnes in 2011 to 350 million tonnes by 2021. Poultry meat production is expected to exhibit the strongest growth at 2.2% ahead of beef (1.8%) and pork (1.4%).

Poultry meat’s share of world meat production is expected to increase to 37% by 2021 with pork accounting for 37%. Production is expanding throughout Europe and reached 45.1 million tonnes in 2015 – up 1.3% on 2014. The European Commission is expecting further growth in 2016.

Consolidation and Internationalisation Although the majority of EU meat and poultry processors remain local and national in nature with no operations outside their domestic markets, the biggest players have been investing in developing foreign production assets and the industry is steadily becoming more consolidated and international in nature. Over half of EU-27 meat volume production is now generated by 100 companies. Indeed, over 30% is currently controlled by the top 15 European meat processors – Vion Food, Danish Crown, Tonnies, Bigard Group, Westfleisch, LDC Group, HKScan, Veronesi Group, Cooperl, Doux Group, Plukon Food Group, Terrena, ABP Food Group, 2 Sisters Food Group and Moy Park.

Vion Food Returns to Profit Despite the challenging markets, particular-

ly in the pork sector, Vion Food returned to profit in 2015 with a net profit of Eur22 million, against a net loss of Eur21 million in 2014, as The Netherlands-based meat group continued its ongoing efforts to improve its network of production locations by closing some sites and investing Eur64 million in the remaining facilities.

Reflecting the negative impacted of low meat prices, particularly in its Pork division, turnover from ongoing operations declined from Eur4.83 billion to Eur4.57 billion although volumes remained stable, which consequently impacted margins.

Incorporating three divisions - Pork, Beef and Food Service – Vion Food provides fresh pork and beef, and derived products for the retail, food service and the processed meat industries, supplying customers in its home markets of The Netherlands and Germany, other countries in Europe and the rest of the world.

During the past two years, Vion Food

Danish Crown is the world’s largest exporter of pork and the largest cattle slaughtering business in Denmark.

FOOD & DRINK BUSINESS EUROPE, MAY 2016

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Jais Valeur, chief executive of Danish Crown.

has reduced its production footprint from 35 to 25 sites, without losing volume. “At the same time, key investments upgraded various sites to best-in-class level. For example, Waldkraiburg in southern Germany will be one of the largest and most modern beef processing sites in Europe,” explains Francis Kint, who became chief executive of Vion Food in September 2015. “This year we made further progress on optimising the economic value of the animals processed by accurately aligning our product selection with global market demand. Access to markets around the world is a key success factor for our company.”

He continues: “We are fully aware that, over the past few years, meat has been the subject of important social debates, such as on animal welfare, food safety and traceability and the role of meat in healthy diets, to name just a few. Our position as a ‘funnel’ between the fragmented animal husbandry sector on the one hand and the meat processing industry on the other makes Vion Food the natural – and much needed – chain co-ordinator in our markets. The chain co-ordinator guarantees the origin of the meat, encourages and rewards animal-friendly husbandry and safeguards food safety, quality and consumer satisfaction.”

New Head at Danish Crown Danish Crown, which is the world’s largest exporter of pork and the largest cattle slaughtering business in Denmark, has also recently changed its chief executive with Jais Valeur taking over in January 2016 from Kjeld Johannesen, who headed the Danish meat co-operative for 27 years.

In its 2015 financial year, Danish Crown posted revenue of DKr59.6 billion (Eur8.0 billion), against DKr58 billion in 2014, and a profit of DKr1.82 billion, up from DKr1.656 million the previous year.

The trade embargo with Russia has resulted in a surplus of pork in Europe and the difficult sales situation on the global market has had a significantly negative impact on the value of pork. However, Danish Crown’s targeted strategic efforts to create growth in foreign markets and the company’s focus on its processing activities have allowed it to deliver a solid financial performance and to disburse DKr1.54 billion to its owners - approximately 8,300 Danish farmers.

“Danish Crown is a well-managed business,” says Jais Valeur, “so there is no doubt in my mind that Danish Crown has a very strong foundation on which to build.”

Although its plans to merge with Tican, another Danish pork processing co-operative, have fallen foul of the competition authorities, Danish Crown has recently formed a European meat joint venture with Westfleisch, which is owned by more than 4,200 farmers in the north-west of Germany, and is one of the top five meat suppliers in Europe. The new enterprise, Westcrown, will be equally owned by Danish Crown and Westfleisch, and will specialise in the deboning and sale of sow meat. Westcrown will operate from a facility in Dissen, south of Osnabruck in Germany. The new joint venture is expected to increase competition for Tonnies, the current market leader in Germany.

Tonnies Strengthens its International Business Meanwhile, Tonnies, which has annual sales of over Eur5 billion, is strengthen its

Tonnies is still a family-owned business, focused on the slaughtering, butchering and processing of pigs, sows and beef cattle.

FOOD & DRINK BUSINESS EUROPE, MAY 2016

presence in south-east Europe by agreeing to take over a number of State-owned pig breeding businesses in Serbia. Tonnies will invest about Eur300 million in Serbia with the ambition to breed and process up to four million pigs by 2026. Tonnies has also invested in Russia, where it produced 600,000 pigs in 2015, with the objective of increasing its Russian production capacity to 1.5 million animals by 2017.

Founded in 1971, Tonnies is still a family-owned business, focused on the slaughtering, butchering and processing of pigs, sows and beef cattle. About 50% of production is exported.

Tonnies has also just formed an alliance with Groupe Avril, the French meat producer, to jointly invest Eur5 million in the creation of l’Atelier des Viandes. The new company will serve the French meat market. Since 2013, France has imported more pork than it has exported. The new enter-

Maxime Vandoni, director general of Terrena.

prise is designed to combine the quality of French meat with German expertise to help recover some of the market share lost in recent years by French pork.

French Poultry Sector Consolidation is also taking place within the French poultry sector. Terrena, the French agrifood co-operative, has taken a controlling 52.5% stake in Doux Group.

French poultry giant Doux Group collapsed into administration in 2012 with debts estimated at Eur450 million due to rising commodity prices and a costly move into Brazil.

Following a restructuring of the ownership of the business that entailed the Doux family’s holding being reduced to 22.5%, Doux Group’s debts have been reduced and it has emerged from administration. Doux is being merged with Terrena’s Gastronome poultry business. The move consolidates Terrena’s position as the second largest poultry company in France, behind LDC Group.

“Our ambition is to create market-leading poultry brands, to win market share in France, and export French know-how 13

2 Sisters Food Group is currently investing heavily in its core poultry business to improve performance.

internationally,” points out Maxime Vandoni, director general of Terrena. A major investment programme is being implemented to complete the new enterprise.

LDC Group has also forged an alliance with fellow French poultry processor Sofiproteol to improve competitiveness to counter the growing threat of imports and to boost the two company’s influence on the international market. More than Eur100 million is being invested in the new partnership over a five years period.

Nordic Region HKScan, the leading Nordic meat group, which produces pork, beef, poultry and lamb products, processed meats and convenience foods, is also investing to enhance its production infrastructure. It has commenced construction of a new Eur80 million plant specialising in poultry products at Rauma in Finland. Scheduled for completion at the end of 2017, the new facility will replace HKScan’s current production facility located at Eura. The investment will

Aki Laiho, deputy chief executive of HKScan.

increase capacity and shorten throughput times, thus further improving HKScan’s product quality.

The state-of-the-art production technology to be installed at the new plant will enable the development of innovative Kariniemen novelties for the domestic and export markets. HKScan supplies the retail, food service, industrial and export sectors.

Its domestic markets comprise Finland, Sweden, Denmark and the Baltics. The company exports to close to 50 countries and continues to expand its international business. For example, HKScan inaugurated its Asian business operation in Hong Kong early January 2016. In 2015, HKScan had net sales of Eur1.9 billion and employed 7,400 people.

Challenging Business Environment “The business environment remained challenging during 2015, and political and economic uncertainty continued globally. The meat industry witnessed ever-tougher price competition in food retail, and the Russian ban on meat imports continued,” comments Aki Laiho, deputy chief executive of HKScan. ”Despite the headwind, we resolutely initiated the implementation of our profitable growth strategy,” he adds. “In line with the strategy, the group will further strengthen its sales and marketing oriented approach.

We will keep focusing on developing and investing in our value-added and branded products, continuous improvement, as well as in new and improved ways to meet customer and consumer expectations.”

UK Investment Two UK-based groups – 2 Sisters Food Group and Moy Park - are investing heavily in their poultry operations. Having moved into red meat following its purchase of Vion’s loss making UK red meat and poultry business in 2013, 2 Sisters Food Group is currently investing heavily in its core poultry business to improve performance.

FOOD & DRINK BUSINESS EUROPE, MAY 2016

“Our aim is to build a better business,” comments Ranjit Singh, group chief executive of 2 Sisters Food Group. “We are launching a major £150 million investment programme in our poultry business that will completely revolutionise our supply chain end-to-end. We are aiming to further align our poultry business with the needs of our customers, creating world class facilities utilising state-of-the-art technology, and driving efficiency.”

During the past year, 2 Sisters has streamlined its UK poultry processes and supply chain and is also continuing to focus on measures to reduce campylobacter – an area where it has already invested £10 million to date.

With sales of £2.209 billion in 2015, the Protein division is by far the largest element of 2 Sisters Food Group. However, like-forlike sales declined by 3.2% in 2015. In

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

addition to poultry and red meat, 2 Sisters is also a major player within the chilled and frozen food categories in the UK. £170 Million Expansion Programme Northern Ireland-based Moy Park has commenced a £170 million expansion programme across its three Irish sites at Dungannon, Craigavon and Ballymena.

The investment entails the installation of additional processing lines and the establishment of an Innovation Centre to drive new product development. Moy Park is also spending £10 million at its processing facility and hatchery operations at Ashbourne, Debyshire in England. In addition to Ireland and England, Moy Park has operations in The Netherlands and France.

Reflecting strong sales volume growth of 6.7%, Moy Park reported a 1.4% increase in revenue to £1.442 billion for the year ended 2 January 2016. Underlying EBITDA increased by 4.4 % to £116.2 million in 2015 and margins improved by 30 basis points to 8.1%. The improvement in margins was the result of increased operating efficiencies and Moy Park’s ongoing focus on cost control which more than offset the lower prices on international sales.

“This strong performance was delivered 15

against the backdrop of a highly competitive market, foreign exchange headwinds, commodity price deflation and export restrictions,” explains Janet McCollum, chief executive of Moy Park. “One of the highlights for the business was processing, for the first time, over 5 million chickens per week, which is a significant milestone.”

Moy Park is now part of JBS after being

acquired by the Brazilian meat group for$1.21 billion cash (plus £193 million in net debt) in September 2015. Moy Park had been previously been owned by Marfrig Global Foods, another Brazilian food group, since 2008.

“This is an exciting new phase in Moy Park's development,” points out Janet McCollum. “Moy Park and JBS share com-

Janet McCollum, chief executive of Moy Park.

mon values and goals with a focus on our customers, delivering high quality, innovative products underpinned by agricultural and operational excellence.”

For example, Moy Park recently launched a range of new products including the first roast-in-the-bag chicken product to use cutting edge thermoformed packaging technology.

Northern Ireland-based Moy Park has commenced a £170 million expansion programme across its three Irish sites at Dungannon, Craigavon and Ballymena.

Irish Beef Giant ABP Food Group, which is one of the top

WOLVERINE PROCTOR

The leader in Sanitary Food Processing Technology

FOOD & DRINK BUSINESS EUROPE, MAY 2016

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three beef processors in Europe, is also based in Ireland. ABP Food Group employs 9,000 people and operates 41 manufacturing plants in Ireland, the UK, Denmark, Poland, Austria, Holland and Spain. In addition to its core beef and lamb processing activities and the production of convenience foods, the group is also involved in rendering, renewable energy and pet foods. The business is owned by founder Larry Goodman and his family.

ABP Food Group recently completed a Eur50 million redevelopment of its Irish flagship plant at Cahir in County Tipperary, to expand production capacity to one million packs of meat each week for supply to both national customers and export markets. In the UK, ABP Food Group has invested £30 million in upgrad-

ing its plant at Ellesmere, establishing the site as a carbon neutral operation.

ABP Food Group is seeking to consolidate its position within the Irish meat industry by acquiring a 50% stake in Slaney Foods to form a joint venture with Northern Ireland meat processor Linden Foods, which is part of Fane Valley Cooperative. Slaney Foods comprises of the Slaney Foods International beef business and the sheep meat specialist Irish Country Meats.

“Consolidation within the industry is absolutely necessary in order for our sector to remain competitive,” points out Paul Finnerty, chief executive of ABP Food Group. “This consolidation trend is the result of an increasingly challenging international background where we compete

ABP Food Group is one of the top three beef processors in Europe.

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FOOD & DRINK BUSINESS EUROPE, MAY 2016

Paul Finnerty, chief executive of ABP Food Group.

against global players, many of whom have processing capacity multiple times that of the entire Irish industry.”

Paul Finnerty elaborates: “The long term outlook is positive as global consumption of beef is expected to increase in the coming years. However, it is important that markets such as China and the US are fully open so that we can take advantage of this demand. Similar to other Irish food sectors, we also need to build strong capabilities that can compete effectively on the international stage and this transaction is a step in the right direction.” J

I MEAT & POULTRY

Admix ‘Beefs Up’ Its Product Line For Meat and Poultry Processors op meat and poultry processors require T tough equipment that will stand up to harsh production environments. Admix has designed several products that solve key issues within the meat and poultry industry, and recently unveiled its latest line of products.

All Admix products are constructed of stainless steel and meet stringent 3-A compliance and clean-in-place standards, standing up in the toughest washdown environments. Plus, their experience mixing diverse ingredients like salts, phosphates, spices, soys, starches, and honey means that processors enjoy the highest rate of ingredient functionality for every batch. Visit admix.com/meat for more.

Designed specifically for meat and poultry processors, the Rotosolver RXRS completely wets out and disperses starches, proteins, and other difficult-to-hydrate ingre-

Fastfeed Powder Industrion System.

dients. With a larger high-shear mix head than conventional mixers, it provides complete dispersion of powders in under 10 minutes.

Combining the proven high-shear technology of the Rotosolver with an easy-tomaintain bearing frame design and reduced RPM, the RXRS delivers lower overall operating costs, improved process results, and reduced energy consumption. Admix offers customized quotes at admix.com/quote.

Complementing the Rotosolver RXRS, the Admix Fastfeed powder feed and dispersion system ensures the consistent dispersion of dry ingredients into marinade and brine preparation tanks. This product handles the higher viscosity challenges of newer, natural ingredients while integrating in-tank shear. The Fastfeed delivers powder at controlled feed rates up to 160 pounds per minute, and deagglomerates and hydrates the toughest ingredients with 100% dispersion of difficult powders guaranteed.

Fastfeed benefits include: • Decreased batch times and reduced labor and ingredient costs • Less maintenance downtime • Reduced energy consumption • Ergonomic design to reduce the risk of operator injury • Increased batch consistency • Less air entrainment due to single pass dispersions.

Rotosolver RXRS.

The Admix meat and poultry line-up is rounded out by the new OptiFeed EZ. Like the Fastfeed, this atmospheric feed system handles thicker marinades with higher viscosities and the challenges of newer, natural ingredients. Its optimized powder feed rates produce maximum yields, and its updated design makes it operator-friendly and easier to use.

With over 25 years of experience, Admix continues to innovate in this market offering free testing in its pilot test lab where they work across countless ingredients, applications, and processes. Schedule a test at admix.com/lab-testing. J

Admix Acquires In-Mix Flow Technology – Expands Its Reach in Europe On May 2, Admix, Inc. welcomed In-Mix Flow Technology to the Admix Europe ApS family. Long-time partners, Admix and In-Mix have collaborated on advanced equipment designs for high shear processing and dispersion for 25 years. The companies co-developed the Rotosolver technology, a high shear mixing icon across many industries. This merger expands the reach for the In-Mix Rotofoil agitator and an Admix milestone, growing its European base by hundreds of customers and installations.

Lou Beaudette, Admix President and CEO, states: “Admix looks forward to building on the In-Mix tradition of innovation and quality by offering our full sanitary equipment portfolio to its European customers. These same customers will also benefit from unparalleled customer service which will help make this transition a smooth one.”

The Admix Europe office and pilot test lab are currently located in Allerød, Denmark, with new production facilities planned in Horsholm over the com-

ing months. With representatives in Denmark, Italy, France, the Netherlands, Poland and Turkey, bringing In-Mix on board secures the company’s presence in Denmark and beyond.

“The Admix management team is excited about this acquisition and with over 200 years of combined experience in high shear mixing and turbine agitators, we look forward to further growing the Admix brand in Europe,” according to Bjarne Buchert, General Manager of Admix Europe ApS.

FOOD & DRINK BUSINESS EUROPE, MAY 2016

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I MEAT & POULTRY

How to Achieve Higher Yield aking a profit in meat and poultry processing requires coming up with the M correct answers to the never-ending array of questions, from choosing the right production equipment to meeting the demand for new products.

With industry know-how drawn on more than 40 years of experience, Cabinplant is one the preferred suppliers in the market of food processing equipment. Every day Cabinplant faces the challenge of their customers to increase reliability, reduce downtime, minimize give-away and stay competitive.

Customized Weighing and Packing Solutions

Achieving high yields with fresh and sticky products, like marinated meat and poultry, poses a particularly tough challenge.

Cabinplant designs unique weighing and packing solutions to help customers keep up with market trends and meet the grow-

designed to closely match your individual requirements. That is also the case with regards to weighing and packing of large portions.

The Cabinplant multi batcher is based on highspeed combinatorial weighing and handles large portion sizes of up to 30 kg of meat, poultry or fish. The multi batcher automatically weighs raw material into partial portions, which are then combinatorically selected, based on an intelligent algorithm, to make the optimum batch weight.

This reduces give-away by up to 5 times that of other systems.

Handling of Sausages Manual Labour Replaced by a Fully Automatic Solution

ing demand for new products and new packing requirements, such as packing to fixed weight. In fact, Cabinplant’s patented screw feed multihead weigher was initially developed in response to a customer request for help for a specific new-product processing and weighing challenge.

Cabinplant equipment not only enables you to produce competitive, value-added products, but is also designed to quickly pay for itself by helping to reduce operating costs and give-away.

Precise Handling of Large Portions

It is a constant effort to increase efficiency and reduce give-away, and the Cabinplant weighing and packing solutions are 20

Cabinplant also supplies customized distribution tools, which provide the connection between the multihead weigher and the packing equipment.

These tools are tailored to match specific requirements and here is one of the recent examples.

Visualize a chaotic pile of sausages and then a neatly packed tray of sausages you grab from the display cooler in your local supermarket. How do you get from A to Z? How do you automatically orient difficult-to-handle products such as long sausages in a tray and how do you ensure the right amount of product?

To solve a challenge like that, Cabinplant combined know-how and experience with a close co-operation with the customer and came up with FOOD & DRINK BUSINESS EUROPE, MAY 2016

an innovative solution that fully automatically aligns portions of sausages in trays.

The essence of the innovation and the great advantage for the sausage producers is accurate portion weighing to fixed weight and accurate counting of product.

Automation of horizontal and stepwise filling is the key parameter since this process has traditionally been very labourintensive. Cabinplant’s solution incorporates a large number of existing technologies, such as the multihead weigher with vibratory feeding. The combinatorial weighing principle ensures minimum giveaway and the state-of-the-art sausage depositor results in a labour-saving solution which is a key issue for the customer to stay competitive. J

I MEAT & POULTRY

Marel Poultry Uses Innovation to Tackle Topical Issues oultry producers are facing new chalP lenges all the time. Key current issues are hygiene, food safety, sustainability and satisfying ever increasing demand for meat from the world’s growing population. How is Marel coping with these challenges? For Marel, there is only one way to go and that is to innovate.

Growing World Population

The worldwide increase in demand for meat protein requires new and innovative ways for producing the necessary volumes. As the global leader in poultry processing technology, Marel Poultry is intimately involved in making the additional processing capacity available. This means large scale industrialization, for which Marel Poultry offers the very best in automated high speed processing solutions, where the interests of both processors and consumers are always kept firmly in mind. To satisfy demand for the large volumes of poultry meat now needed, line speeds are increasing at an accelerating rate. Both capacity and performance need to increase too.

Sustainability

With innovative concepts which respect poultry, people and the planet, Marel Poultry is committed to the sustainability of its systems and solutions. The Stork AeroScalder is an excellent example. Traditional immersion scalding techniques use huge amounts of hot water. In the AeroScalder, products are not

immersed in hot water but scalded using moisturized hot air which is blown onto them. This innovative concept saves up to 75% water and up to 50% energy. An additional bonus is that there is no cross-contamination during the process.

No Give-away, Maximum Value

Making the best use of product by avoiding costly give-away is part of the sustainability program. As each part of a processed product is highly valuable, losing just one gram of meat per product could mean the daily loss of 108 kg. That is why maximizing product use and avoiding give-away is one of Marel Poultry’s focus areas. Innovative technologies have been developed to give intelligent composite solutions such as the “robot with a knife” consisting of the I-Cut 122 Portion Cutter paired with the RoboBatcher Flex. The combination cuts strictly to customer order while the resulting offcuts are batched as valuable products in their own right.

The “Robot with a Knife” concept is a process

Hygiene

Early grading, enabled by the Stork IRIS vision system in the EV department, paves the way for tracking and tracing, ensuring a high grade of food safety.

which maximizes product use and avoids give-

As even the smallest localized incidence of bacterial contamination in the food chain can have much wider even global implications, hygiene has become of paramount importance for the food processing industry. Marel Poultry is keenly aware of this and offers solutions which help processors produce the safest possible food.

Automation plays a key role here by doing away with the need for people to touch product. “Our maturation chilling system is a firstclass example,” says Anton de Weerd, General Managing Director of Marel Poultry.

“The cross-contamination of product with harmful bacteria is virtually eliminated. Product is fresher and shelf life significantly longer. The process both pre-chills and matures product to give very tender meat in a relatively short process time.”

Tracking the Food

Food safety and hygiene are closely related. A comprehensive tracking and tracing sys-

FOOD & DRINK BUSINESS EUROPE, MAY 2016

away.

tem is the best way for a processing plant to ensure food safety. Marel Poultry has developed just such a tracking and tracing system. The moment a product enters the plant, the collection of data on it begins.

Further data is added as it moves through the process. Data stays with the product, enabling retail consumers to check the origin and trustworthiness of what they are buying.

Innovative, accurate and reliable tracking and tracing would not be possible without a comprehensive software system. Marel’s Innova software has opened up new possibilities for effective poultry processing management. Today’s poultry processing plant can hold up to 40,000 broilers from beginning to end of the process. Innova software will register the weight, quality grade and eventual destination of each and every product in the process. By using Innova to monitor and control production, poultry processors can significantly improve the efficiency and safety of their process.

For further information visit marel.com/poultry. J 21

I MEAT & POULTRY

Interfood at IFFA 2016 nterfood will be returning to IFFA 2016, Iments the biggest shop window for developin the meat industry in the world.

The company will be supporting the leading manufacturers for whom Interfood is the distributor in the UK and Ireland.

From ingredients and product development to end of line packing solutions – and everything in between – the Interfood team

will be on hand to discuss visitors’ specific requirements.

All of Interfood’s eight divisions will be represented at IFFA: Product Development, Butchery, Fresh Meat Portioning, Preparation, Curing to Clipping, Cooking & Cooling/ Pasteurisation, Slicing and Packing Solutions.

Amongst the latest developments will be BladeStop, an innovative system specifically designed to address the health and safety issues relating to bandsaws.

The system has been designed and manufactured by Australian based company Scott Automation & Robotics in collaboration with Meat & Livestock Australia. BladeStop works by mechanically stopping the bandsaw blade when the unit senses that a person has come into contact with, or is dangerously near to, the

blade. The blade stops operating within 15 milliseconds, minimising the severity of an incident – potentially the difference between just a small skin cut and an amputated finger.

Already well established in Australasia, hundreds of systems have been sold worldwide since its launch in 2014. Now, following the appointment of Interfood, BladeStop is available in the UK and Ireland from Interfood’s Butchery Division.

For further information visit www.interfoodtechnology.com. J

CPM Wolverine Proctor – The Processing Machinery Specialist PM Wolverine Proctor has been supplying processing machinC ery to the food industry since early last century and continues to do so, on a global basis. Customers are becoming progressively more reliant on the company as a system supplier, partly because they have had to reduce their own staff numbers to remain competitive.

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

CPM Wolverine Proctor’s continuing drive to be the preferred machinery supplier means that it talks to customers about what they like and dislike, listening to their ideas and identifying the customer’s priorities for their business. Only then can CPM Wolverine Proctor hope to meet and exceed their expectations in terms of machine performance, longevity, product flexibility, price and other important capital equipment issues.

Over the years, CPM Wolverine Proctor has supplied a wide range of machines for drying meat and protein-based foodstuffs.

These have included beef and chicken jerky products as well as pet food treats and have utilised CPM Wolverine Proctor’s batch tray/truck dryers right up to multi-stage conveyor dryers running several tonnes per hour. The company’s test facilities in the UK and USA enable it to work with customers to develop new processes and test the exact drying characteristics of each product under various conditions. This ensures that CPM Wolverine Proctor 22

offers the most appropriate machinery and process solution so would recommend that every customer takes advantage of this.

CPM Wolverine Proctor’s policy of continuous development means that it is always striving to improve its product range and if it sees an opportunity to develop something new for a particular application, the company takes it.

CPM Wolverine Proctor is currently working on a patented automatic chain lubrication system which can be applied to any dryer – this system is PLC-controlled and can be programmed to feed controlled amounts of oil directly on to the parts of the chain that need it most, at specific times, thus saving large amounts of lubricant and extending the operating life of the chains. J

FOOD & DRINK BUSINESS EUROPE, MAY 2016

I FOOD SAFETY

Alternative Application of Steam Treatment Can Potentially Replace Chemical and Physical Disinfections team is a well-known decontaminaS tion method with a wide range of utilization. Steam processes are generally

Adjustable Processes Allow For a Wide Range of Application

considered as highly cost-effective, easy to use and free from chemicals.

Nevertheless, focus on this subject seems to be declining due to several process limitations, encountered in several cases.

Cases with food products that possesses high infections risks, such as fresh or raw meat products, poultry, fish and berries do not respond well to steam processes.

Long treatments cause thermal damages, while short treatments are inadequate for achieving appropriate microbial kill on such surfaces. The reason is due to a well-known phenomenon, referred to as the laminar sublayer. Laminar sublayer is a layer of stagnant air, present around any given object. This layer takes up much energy and delays heat transfer to the surface of the product. By the time the heat reaches the surface, the overall temperature of the product has increased and the product undergoes thermal damages.

Sonosteam disinfection processes offer a wide range of application - everything from meat, fruits, vegetables and dairy products to non-food products such as conveyors, food boxes, crates, cutting knives and etc. SonoSteam disinfection can be adjusted to existing working parameters (line speed, product quantity, product quality) and performs efficient decontamination without stalling main processes or production lines. The technology have demonstrated more than 7 logs microbial reductions on solid materials in just a quarter of a second, illustrating the efficiency of this technology.

A Case of SonoSteam Box and Tray Disinfection For Industrial Application

Whether they are used as a means of transportation or as storage, boxes or trays constitute a potential risk of cross contamination in clean environments.

Microorgan-isms and their biofilm and

toxins can built up very quickly on the surfaces, if routine cleaning is inadequate or neglected. Disinfection with certain chemicals can cause selection of dangerous superbugs that are able to outlive standard cleaning procedures. At worst case, the bacteria can end up on food products or sterile medical devices, where it can cause illnesses and even deaths.

One way of solving these problems would be the addition of more time consuming and costly cleaning steps. This would require more chemicals and extensive water rinse, including both hot and cold water to remove chemical residues.

Another way is to apply SonoSteam disinfection. The SonoSteam disinfection for boxes and trays is a custom made unit, which can be integrated to the existing washing processes. The treatment time for the Sonosteam disinfection is adjusted to the existing line speed and the disinfection does not require any post wash. This technology removes the need for chemical disinfection and reduces large amount of water, without affecting the disinfection process. J

Steam Combined With Ultrasound Offers New Possibilities

What if you could apply steam disinfection to heat sensitive food products and avoid the thermal changes?

What if you could do this in a superfast process with minimal costs and what if you could apply this same process to non-food products as well?

SonoSteam® combines steam with ultrasound to create a strong and intensified treatment. While the ultrasound waves rapidly disrupts the stagnant air, temperate steam gains instant access to the surface as well as inside microstructures where microorganism may hide. The ultrasound is like a “catalyst” which intensifies and accelerating the steam process. SonoSteam processes are therefore able to kill high loads of bacteria within just a second, before heat can penetrate and thermally damage the organic material.

FOOD & DRINK BUSINESS EUROPE, MAY 2016

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O’ Toole Transport Limited was established in 1996 by the O’ Toole family in Moycullen, Co. Galway. Since it was established the Company has grown to become one of the largest refrigerated transport companies in Ireland, servicing the FMCG sector, with cross dock and cold storage facilities in Galway, Dublin Port, & Waterford and an International distribution network servicing mainland Europe.

In 2012 O’ Toole Transport was the first Irish Company to be awarded the prestigious BRC quality accreditation for the transport, storage and distribution of frozen, chilled and ambient foodstuffs. Over the last 4 years the Company has established an extensive distribution network in Ireland providing a next day delivery service to all the retail distribution centres in Ireland.

Today the Company operates 75 vehicles, 100 trailers and employs in excess of 120 people. This year the Company celebrates its 20 year anniversary and would like to thank all its customers for the support over the last 20 years.

www.otooletransport.com / sales@otooletransport.com / phone: (01) 8550063

I COOKED MEATS

O’Brien Fine Foods Set to Accelerate Export Growth O’Brien Fine Foods, which is one of Ireland’s leading producers of cooked meats and breakfast products, including the Brady Family and Rudd’s brands, is investing €14 million to more than double capacity at its cooked meat processing facility at Timahoe in County Kildare. he planned 8,000 sq m expansion, which is supported by the Department of Jobs, Enterprise and Innovation through Enterprise Ireland, will facilitate the company’s growth in export markets. The expansion is expected to more than double operational capacity from 200 tonnes to 400 tonnes per week, and will create an additional 40 fulltime jobs when it comes on stream.

Construction is expected to be completed in July.

“Not only will it more than double our operational capacity, but it will also drive greater efficiencies, expand our production capabilities to other proteins, and allow us to become more sustainable in the longterm, while also reducing our costs,” explains John O’Brien, who took over as managing director of O’Brien Fine Foods in 2014, succeeding Bill O’Brien, who

T

remains active in the business as company chairman.

John O’Brien adds: “The new facility will be one of the most modern cooked meats facilities in Europe, with four new cooking and resting units, along with a large range of added-value capabilities. We will continue to invest in our systems and technology over the coming months, including an ERP system to track the movement of product throughout the factory.”

The site at Timahoe produces cooked meats, including both Brady Family and own label cooked meats for the delicatessen and pre-packed markets. Brady Family Ham is a leading premium cooked meats brand in Ireland. The Brady Family range uses meat that is cured for three days using a secret family recipe.

The Timahoe plant is complemented by a second facility at Birr in County Offaly, Brady Family pre-packed ham being produced.

where breakfast products are produced including sausages, bacon, and award-winning puddings under the Rudds and own label brands.

Founded in 1978, and owned by the O’Brien family since 2000, the company has grown from a modest turnover of Eur3.6 million and 18 employees to over Eur60 million turnover and more than 300 employees in 2016. O’Brien Fine Foods currently produces over 200 tonnes of cooked meats and breakfast products per week.

Bill O’Brien, chairman, and John O’Brien, managing director of O’Brien Fine Foods, with the Brady Family range.

FOOD & DRINK BUSINESS EUROPE, MAY 2016

Strong Track Record “We have a strong track record in the cooked meats sector, and pride ourselves on producing 100% Irish, Bord Bia-approved pork products. We purchase one third of all the pork legs produced in Ireland, or 33,000 legs per week,” points out John O’Brien. “We produce 75% of the Bord Bia quality-marked products in the Irish market in cooked and breakfast meats. We 25

“It is our ambition to become the leading producer in the cooked meats sector and, as such, we have plans to expand our customer base to include foodservice and B2B in the near future,” says John O’Brien.

Brady Family glazed ham on the Bone.

also produce over 40% of the cooked meats in Ireland.”

O’Brien Fine Foods currently supplies branded and own-label products to all major multiples, discounters and convenience groups in Ireland, serving as catego-

ry partners with a number of these key players. The company’s products are also exported to retailers in the UK and Northern Ireland. Indeed, sales are currently split 50/50 between Irish retailers and international retailers.

Market Trends The Irish cooked meats market is worth between Eur280 million and Eur300 million and is exhibiting steady single-digit year-on-year growth. Key trends include consumers seeking authenticity, provenance and healthier options at meal times and for different eating occasions.

“Our products are all 100% traceable so that the customer always knows where their food is coming from,” remarks John O’Brien. “Our wide variety of formats – sliced, deli, torn and pots – allows the customer use our products in a number of different ways and for different occasions, like omelettes, open sandwiches, or even as a quick snack. Our products are also low in fat, making them a health food option.”

By offering consumers a high quality, premium product at an affordable price point, and by allowing shoppers to ‘trade up’, O’Brien Fine Foods has helped to expand and reinvigorate the market through clever use of its well-supported brand offering.

“Our strategy continues to be based on

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FOOD & DRINK BUSINESS EUROPE, MAY 2016

tional - marketplace.”

growing the retailer’s category. To grow market share, we need to look at new usage occasions and get the consumer looking at new products for these occasions. By using our brands to bring in new shoppers, we are in turn growing the retailer’s category.”

John O’Brien elaborates: “Our range continues to be a market leader in the cooked meats category, with our products firmly established as a favourite among Irish consumers. We will continue to invest in innovation and further NPD to maintain our leading position in the Irish – and interna-

New Product Development To meet developing consumer needs, O’Brien Fine Foods constantly updates its product range. The company recently launched a new product, Brady Family Thicker Cut, which is available in two variants - Hand Crumbed and Glazed. The 140g packs contain on average five thicker cut slices and is ideal for consumers looking for a high quality offering from pre-pack cooked meats. In consumer testing, the range received a strong positive response and desire to buy.

“The new range encompasses the core traits of Brady Family ham including a unique curing process, and is made with only 100% Irish pork, with no added water and using only one single pork joint,” says John O’Brien.

Brady Family Thicker Cut is set to roll out nationwide, with significant investment in TV, digital and social media advertising, as well as in-store through impactful POS displays and in-store sampling.

ENERGY

Development Strategy The Eur14 million expansion of its ham processing facility at Timahoe is designed to allow the company to maintain the rapid growth path of the past few years and to continue to provide a market-leading service and award-winning product range.

John O’Brien concludes: “It also allows us to look at growing our business further into international markets, which is a key focus for our business going forward. For O’Brien Fine Foods, it is important that our growth and capability mirrors the ambitions of our customers.” J

ENVIRONMENT

The Energy Crisis is a Powerful Opportunity For UK & Ireland Businesses he energy landscape is fundamentally changing. As more renewT able energy sources come online, our power infrastructure needs more ‘flexibility’. For the electricity grid operators in the UK and Eire, this means they need to find new ways to balance energy demands. Demand side response is the answer.

The National Grid in the UK and EirGrid in Ireland have a long-term vision for a smarter and more flexible energy infrastructure. Endeco Technologies provide the answer. Endeco Technologies work in partnership with the grid operators to deliver a unique technology-led solution that enables widespread participation in demand side response schemes.

Virtual Power Plant This vision is delivered by Endeco Technologies’ ‘Virtual Power Plant’, which enables customers to join together to balance the electricity grid and reap lucrative financial rewards in return. This not only contributes to a more sustainable energy system, it presents new opportunities for energy intensive companies to participate in the grid balancing schemes.

Unlocking Powerful, Long-term Revenues These schemes, operated by the National Grid and EirGrid offer multi-layered benefits for participating companies. For grid operators, adding stability to the system reduces the need for coal and gas fired reserves to be ready to supply power at short notice.

For the end-user, Endeco Technologies unlock powerful, longterm, recurring revenue streams from these mechanisms to provide a generous income from the Grid; the ability to avoid price peaks; plus the cost-benefits of load flexibility when renewable sources are available.

No Risks and No Impact Endeco Technologies’ unique technology platform connects energy intensive assets and automatically adjusts power consumption in real-time to balance the Grid. All of this is achieved without risk or impact on customer operations.

What’s more the technology is designed to deliver a seamless transition between new revenue schemes launched by the grid operators.

Trusted and Proven Endeco Technologies have successfully deployed their award-winning technology at over 200 sites in the UK and Ireland. Customers, who include many companies in the food sector such as the Brady Family in Ireland and Brakes Group in UK, can testify to the benefits of participation. These schemes can help to boost competitiveness, improve sustainability and make a significant contribution to the bottom line. J

FOOD & DRINK BUSINESS EUROPE, MAY 2016

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I DEVELOPMENT STRATEGY

Danone to Invest €240 Million in European Early Life Nutrition Facility Danone is investing €240 million to build a new plant at Cuijk in the Netherlands to support the continued expansion of its Early Life Nutrition business. he new plant is Danone's largest investment in its European production capabilities, and will double its capacity in the Netherlands. Output will be exported to more than 80 countries worldwide. The investment will allow Danone to capitalise on the strong and growing demand for its international early life nutrition brands, including Aptamil and Nutrilon, for both standard and specialized products. The state-of-the-art facility is due to commence production in late 2017.

The Cuijk location was chosen because of the expert know-how of current staff, and for the site’s proximity to Danone's Research & Development Centre in Utrecht, which is the company’s global hub for research dedicated to early life nutrition and advanced medical nutrition.

T

Emmanuel Faber, chief executive of Danone.

The new facility incorporates state-ofthe-art technologies and will meet Danone’s targets for sustainability, offering very high energy efficiency and complying with the strictest CO2 emission standards. €180 Million Investment In response to growing demand for its products in the European and Asian markets, Danone recently invested Eur180 million in its Early Life Nutrition business in

Early Life Nutrition is now Danone’s second largest category by sales, behind Fresh Dairy Products.

Ireland, resulting in major expansion of its production sites at Wexford and Macroom.

The Wexford plant manufactures consumer packs of infant milk such as Aptamil, Cow & Gate, Nutrilon and Bebilon for the Irish and overseas markets. The Macroom facility produces infant milk base powder for sister baby food sites within the Danone group.

Danone’s Early Life Nutrition division specialised in products designed for the first 1,000 days of the child - from the first day of pregnancy until the age of two. The product range includes specialized foods for babies and young children to complement breast-feeding. The business also offers products and services to pregnant women and nursing mothers.

Infant formula accounts for more than 80% of the Early Life Nutrition division’s business, with a special emphasis on the development of second and third stage follow-up milks (designed for children at least six months old). Supplementary foods for babies (‘weaning food’) account for more than 10% of activity and are marketed mainly in European countries such as France, Italy and Poland.

ness will play a key role in achieving this strategy as will Danone’s Fresh Dairy Products division.

Early Life Nutrition is now Danone’s second largest category by sales, behind Fresh Dairy Products. In 2015, the Early Life Nutrition division generated sales of almost Eur5 billion, accounting for 22% of group sales and reporting Danone’s strongest growth (nearly 10%) and operating margin (19%).

Danone’s other two business lines are Waters and Medical Nutrition. The Waters division is second in the world by volume and generated sales of Eur4.77 billion in 2015, equivalent to 21% of group turnover. Danone’s Medical Nutrition business is the European leader in this field with annual sales of Eur1.59 billion and contributed 7% of group turnover in 2015.

Key Role The investment at Cuijk is in line with Danone’s 2020 roadmap calling for strong, profitable and sustainable growth.

The Early Life Nutrition busiFOOD & DRINK BUSINESS EUROPE, MAY 2016

29

reviewing its business model in China.

“Our plan to transform Danone is underway, and it’s already paying off,” points out Emmanuel Faber, who became chief executive in October 2014, with a mission of returning Danone to “strong profitable and sustainable growth” by 2020.

This progress is reflected in Danone’s markedly improved 2015 Danone has been restructuring its European Fresh Dairy Products business to regain its competitive edge.

Transformation Underway at Danone Danone delivered a 4.4% organic rise in sales to Eur22.41 billion for 2015 with trading operating income up 5.7% to Eur2.89 billion. Operating margin improved by 17 bps on a like-for-like basis for 2015. The results mark the start of a recovery for the French food and beverages group following a tough year in 2014, when it reported a fall in sales and trading margins.

Danone has been restructuring its European Fresh Dairy Products business to regain its competitive edge and to adjust to the new trading environment, and is also

financial performance. “With organic growth of 4.4% and trading operating margin up 17 basis points like-for-like, our results are very solid and perfectly aligned with our objectives. They confirm that we have taken this mission to a new level, paving the way for strong, profitable and sustainable growth by 2020.”

Dairy and Early Life Nutrition Danone’s Fresh Dairy Products business, which accounts for almost half of total

New Head For Danone’s Early Life Nutrition Business Danone recently appointed Bridgette Heller as executive vice president of its Early Life Nutrition business and as a member of the group’s executive committee with effect from July 1, 2016. She takes over from Felix Martin Garcia, who has led the development of the Early Life Nutrition business for nearly six years.

Over the past 17 years, Bridgette Heller has held a range of positions, starting with Kraft Foods and moving on to serve as global president for Johnson & Johnson, Baby Care, before becoming president, Consumer Care, for Merck. Backed by very solid international experience, she has developed expertise in both Bridgette Heller is the new head of FMCG and healthcare that offers a perfect fit with the specific Danone’s Early Life Nutrition needs and challenges involved in growing the Early Life business.

Nutrition business.

Emmanuel Faber, chief executive of Danone, says: “Bridgette Heller is a proven leader with impressive experience who, throughout her career, has demonstrated a unique ability to engage her teams. I believe that passing the baton to her will ensure continued success for our category.”

FOOD & DRINK BUSINESS EUROPE, MAY 2016

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strong margin improvement of the Fresh Dairy Products division.

sales, increased sales on a like-for-like basis by 0.6% to Eur11.057 billion in 2015 and started to reap the rewards of the restructuring with trading operating margin improving by 24 bps to 9.95%.

Benefiting from the popularity of its international brands Aptamil and Nutrilon and strong demand in China, the Early Life Nutrition business increased like-for-like sale by 9.8% to Eur4.99 billion as trading operating margin rose 142 bps to 19.32%.

In China, Danone is pushing ahead with efforts to build a sustainable model of growth by continuing to invest in the Aptamil and Nutrilon brands, and by forging a structure for its local internet offering using a direct distribution model, while developing sales through specialised stores.

In Europe, Danone improved its trading operating margin by 168bps to 17.26% in 2015, as profitability benefited from the success of international infant formula brands exported to China as well as the

2020 Goals Emmanuel Faber comments: “In an environment that is still complex, unstable and fragmented, we must continue to strengthen and adapt our model to ensure that Danone will generate strong, profitable, sustainable growth in 2020.”

Danone’s goal for 2020 is to generate overall growth equal to or higher than 5%. This includes like-for-like growth of between 3% and 5% for the Fresh Dairy Products division and between 7% and 10% for both the Early Life Nutrition and the Water divisions. Growth of between 6% and 8% is projected for the Medical Nutrition division.

Danone is also committed to annual growth in margin driven primarily by a structural recovery in the margin reported by its Fresh Dairy Products division, which is expected to deliver a rise of over 200 basis points in aggregate margin between 2015 and 2020, compared to the 2014 figure, at constant

exchange rates.

This will be achieved by maintaining business volume in mature European countries, while strengthening the division’s main growth platforms such as the US, Russia, Brazil, Mexico, Morocco and South Africa, where consumption of fresh dairy products offers strong growth potential, and developing new regions, in particular in Africa and Asia.

Current Outlook Danone is projecting organic sales growth of 3% to 5% and a further solid improvement in trading operating margin for 2016 as it benefits from further cost reduction, continuing improvement in its European dairy business and rising baby food sales in Asia.

Emmanuel Faber adds: “In 2016, in a global context that remains volatile, Danone will continue to invest behind its brands and will mark a further important step to develop a balanced model of strong, profitable and sustainable growth.” J

Yogurt – The New Healthy, High Quality Snack odern consumers are craving M healthy and high quality snacks suited for a busy day on the go. They do not want to sacrifice convenience over health or health over taste - on the contrary, modern consumers want to be inspired by new exciting flavours.

Done right, yogurt is the perfect product to match such consumer demands.

YoFlex® Acidifix™ from Chr. Hansen is the new best friend for developers and marketers who want to excite consumer segments across the board with new flavours. This innovative culture offers superior mildness which makes it ideal for indulgent flavours such as coffee, toffee and chocolate as well as more subtle flavours like watermelon, lychee, rose

or green tea. In other words, YoFlex® Acidifix™ is a tool to expand the flavour palette and attract more consumers.

The superior mildness of YoFlex® Acidifix™ also translates into a very stable pH during shelf-life. The fact that the yogurt won’t go sour results in a more consistent quality and the possibility to add less sugar.

Last but not least, YoFlex® Acidifix™ helps to build a thick creamy texture, which is essential for creating a truly indulgent sensation. YoFlex® Acidifix™ is suitable for both stirred and drinking type products and is already a success with customers around the globe. J FOOD & DRINK BUSINESS EUROPE, MAY 2016

33

I FOOD SAFETY

SPX FLOW Installs New Infant Formula Processing Line cross the dairy, food and beverage industries, food safety is of paramount A importance, but nowhere more so than in the production of early life nutrition products for infants and young children.

The production of powder based nutrition involves many process stages, all of which require careful design and integration to ensure the desired product quality and maximum food safety is achieved.

Recently, SPX FLOW worked together with a world leading food company on their new infant formula processing line.

34

The project scope comprised of a complete line, including wet phase (milk, ingredients reception and mixing) evaporation and drying, as well as installation and commissioning.

To succeed, the project required experts from both the food manufacturer and SPX FLOW to collaborate and innovate.

The result was a process with enhanced capability that exceeded expectations.

In SPX FLOW’s experience, achieving

FOOD & DRINK BUSINESS EUROPE, MAY 2016

the highest standards of safety and quality does not mean manufacturers of infant formula need to compromise on production efficiency and flexibility. Systems are designed to meet the needs of today and the future, covering areas such as advanced powder nutrition for all life stages. J

I DAIRY

Innovative Self-priming Pump Does Double Duty For Dairies Reduce Total Cost of Ownership With Alfa Laval LKH Prime For CIP Return and Dairy Product Handling new self-priming pump is based on the Alfa Laval LKH A range of centrifugal pumps, which is world-renowned for hygienic design and gentle product treatment. The Alfa Laval LKH Prime is constructed for pumping liquids containing entrained air, making it an excellent choice for emptying dairy tanks and as a CIP return pump.

Reduced Energy Consumption

The hydraulic efficiency of the Alfa Laval LKH Prime reaches over 50 percent (Image 1). This means an advantage over liquid-ring pumps, which typically reach efficiencies of approximately 30 percent. Its high efficiency is attainable at a wide flow range.

Reducing Installation Costs

While the Alfa Laval LKH Prime is designed with CIP return in mind, it may also be used to pump dairy products. Because of this ability it is possible to eliminate the need for a separate liquid-ring pump (Image 3) thus saving both capital and installation costs.

Like the other pumps in the LKH famiHow it Works ly, the Alfa Laval LKH Prime is EHEDG certified and authorized to carry the 3-A symbol.

Service is a key element of any Alfa Laval offering and the commonality of spares, including the shaft seal, in the LKH range translates into reduced spare parts inventory and fast maintenance. J

Image 2

Image 1

Improved Working Environment

The Alfa Laval LKH Prime reduces the noise emission level by up to 80 percent compared to conventional liquid-ring pumps.

Liquid-ring pumps have always posed the challenge of excessive noise calling for protective measures. With a noise level of a mere 74dBA, the Alfa Laval LKH Prime efficiently eliminates the need for these.

Image 3

FOOD & DRINK BUSINESS EUROPE, MAY 2016

35

Acqua Lete’s 40,000 bph Compact Line t the plant in Pratella, a few kilometers away from Caserta (Italy), Acqua Lete A SpA, one of the most famous Italian brands of mineral water and main sponsor of SSC Napoli, purchased from ACMI a compact line with a nominal filling speed of 40,000 bottles per hour. The line in question can handle both round 1.5 L. bottles and square 2 L. bottles, with which, however, the speed drops to 36,000 bottles per hour. The compact line concept proposed by ACMI is enjoying great success among mineral water bottlers that are looking for a product with increasingly good performance and efficiency.

tive concept produces advantages in terms of efficiency, reduction of space, management costs and TCO, assembly and start-up times.

A Single Accumulation Table The “Compact Line” requires only a single accumulation table placed between the filling block and the packaging block. This detail provides a simple precaution to harmonize any fluctuations in the production that may concern the Twisterbox layer formation system. two blocks. With this solution, the “Compact Line” proves to be suit- nents of the line to be constantly guaranable to handle any type of PET teed. Precisely for this reason the Fenix container, especially thin-walled shrink wrapper is equipped with the exterbottles and square bottles of still nal reel carrier box and the automatic (conwater, because the pressure exerted tinuous) film changeover, the Viper twois very limited. lane handle applicator is built with an electronic spacing system (which avoids the use Labeller/Shrink Wrapper of spacing screws) and is equipped with the Synchronism automatic handle joining system, the From a technical point of view, if Thunder palletiser with the Twisterbox® the labelling of the bottles is not continuous layer formation system is performed within the filling block, it is necessary to apply an electronic synLabeller/Shrink wrapper synchronism. chronism between the The “Compact Line” Concept labeller and the Fenix shrink wrapThe “Compact Line” represents a new bot- per. This synchronism, which is tling concept in which the production line possible thanks to the use of specifmainly consists of two highly efficient ic algorithms processed by ACMI, blocks: the filling block and the packaging makes it possible to manage the block. To date, ACMI is the only company production speed oscillations of able to design and build a so-called “com- the labeller and shrink wrapper pact” system because it is the only compa- and eliminates the need for any ny that designs and builds with the same intermediary accumulation table. high technology all the machines that With the application of the make up the part of the line dedicated to “Compact Line” concept, these Rocket pallet stretch wrapper. packaging. The application of this innova- two machines work synchronously reaching very high efficiency val- designed with automatic interlayer and palues. let feeding systems, and the Rocket model rotating pallet stretch wrapper is equipped Automatic Feeding with an automatic pre-stretching unit For the “Compact Line” concept changeover system which ensures perfect to be applied it is necessary for all continuity of operation. the packaging block machines to share the same technology and the The Compact Line Operator same level of efficiency. Moreover, The “Compact Line” is a highly automated they must all be equipped with system that requires only one operator for automatic consumable material each block. The operator of the ACMI end feeding and changeover systems, of line block mainly has to deal with feedsince it is essential for the continu- ing the automatic stores by loading conFenix shrink wrapper with automatic film changeover. ity of operation of all the compo- sumable materials. That’s all. J 36

FOOD & DRINK BUSINESS EUROPE, MAY 2016

ENERGY

ENVIRONMENT

I WATER & WASTEWATER TREATMENT

Aquabio to Build Leading Edge Plant For Bakkavor’s Cucina Sano o help achieve its sustainability goals, T Bakkavor has appointed waste water treatment specialist Aquabio to design and construct a state-of-the-art effluent treatment and water recycling facility, at its Cucina Sano business based in Boston, Lincolnshire.

Construction of the cutting edge plant has commenced and will take 10 months to complete. The plant has been designed to treat wastewater from the production process to ensure full compliance with stringent consent requirements for local watercourses. The plant will also incorporate additional treatment to high grade potable water quality for reuse within the facility.

The new plant will use Aquabio's AMBR LE™ Low Energy Membrane Bioreactor (MBR) technology which has been successfully utilised for industrial effluent treatment and water reuse in numerous applications in the UK and US since 2001.

Ben Cooper, Manufacturing Manager of Cucina Sano, says: “We are always working

to ensure we can help sustain the environment in which we operate and one of our key areas of focus is water usage. We are looking forward to seeing the benefits of this new plant in helping us achieve our sustainability goals.”

Steve Goodwin, Managing Director of Aquabio, says: "We are providing a full turnkey installation including civil, mechanical, electrical, software, commissioning, operation and maintenance. Aquabio is very pleased to be partnering with Cucina Sano in this long term project. The new Plant will recycle over 80% of treated effluent to potable water and thus significantly reduce both water consumption and wastewater discharge volumes.

"We are a leader in industrial waste water treatment, most notably in Membrane Bioreactor (MBR) technology and water recycling and reuse and have pioneered the implementation of water recycling within a wide range of industries including food and drink.”

FOOD & DRINK BUSINESS EUROPE, MAY 2016

The plant is due to be operational from September 2016 and will be the fourth plant installed by Aquabio for Cucina Sano's parent group Bakkavor.

The forthcoming plant has already received a certificate of Environmental Benefit from DEFRA under the Enhanced Capital Allowances (ECA) Scheme for Water Efficient Technologies, within the category of ‘waste water recovery and reuse systems’. The ECA Scheme for Water Efficient Technologies is aimed at businesses which use energy efficiency, reduce water use or improve water quality. J

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ENERGY

ENVIRONMENT

I WASTEWATER SOLUTION – CASE STUDY

Premier Foods – Ambrosia Plant – Lifton Devon he effluent plant at Premier Food T Ambrosia creamery, Lifton, Devon generates sludges from 2 humus tanks, a

could be achieved with a screwpress.

The RoS3Q-440 was selected for the duty and Huber checked that the existDAF plant and surplus activated sludge ing building could be utilized. The from the activated sludge process. existing conveyor and polymer make up The sludge’s were pumped to a belt was also to be used. Huber advised on press which was requiring a lot of attenthe installation layout to use the existtion so it was decided to trial the screwing building and were selected in press unit type RoS3I in 2012.

November 2014 to supply a new screwThe trial unit comes complete with press with controls which also included feed pump, flowmeters, polymer dosing the conveyor and polymer dosing conequipment, discharge conveyor and all trols. controls. All equipment is mounted in a The plant was commissioned in July RoS3.2(Industrial version) trial unit at the effluent 30 foot container to make trials easy to 2015 and has given very good results plant of Premier Foods Ltd., Lifton. set up and run. saving Premier Foods in disposal costs.

Mixing sludges was a problem during The Utilities Engineering Manager at the trials and polymer dosing rates were difficult to define. The Lifton Phil Dawes states: “The press is working extremely well dry solids varied from 0.28 % to 5.46% DS. A daily sludge rate on the initial effluent stream and we will be looking to include of 57M3/day was established with an estimated 50% DAF sludge further waste streams going forward to further reduce costs. and 50% biological sludge. The trial work was conducted with Huber were very helpful in the initial discussions and through the the Huber type RoS3I but due to the biological fine solids the trial process.” type RoS3Q was chosen as this handles biological sludges better.

For further information contact: Tony Clutten, Huber Process The output cake from the belt press was 9.55% DS and the Sales Manager, Tel 01249765050; Mobile 07525224521; Email trial gave 10.8% DS but it was felt with mixing a better result tc@huber.co.uk. J

ENERGY

ENVIRONMENT

I SUSTAINABILITY

Byworth Receives a Queen’s Award For Enterprise yworth Boilers has been named a winB ner of the Queen’s Award for Enterprise in Innovation. The UK’s highest accolade for business success, the award was received in recognition of Unity, Byworth’s revolutionary boiler house control system. The first of its kind on the market, Unity has achieved outstanding results in its respective field of innovation.

The prestigious awards are made annually by HM The Queen, and are only given for the highest levels of excellence demonstrated in each category. They are judged following a rigorous and highly competi-

tive entry process.

Rewriting the Rules Byworth was seeking an innovative product to solve the problem in the market. Unity was first touted as an idea in 2007 to the existing controls’ manufacturers; but after years of getting nowhere trying to persuade them to take on the development, Byworth felt so strongly that the industry was missing the key technological advancement, it appointed its own team to develop the idea into the finished product. After a two-year development plan, Unity was born.

Encourage and Nurture Innovation Numerous departments at Byworth have had and continue to have a role in its development contributing to its success. Unity as a physical entity is not merely enough, without the pioneering capabilities from the people ‘on the ground’ it would not sustain its competitive edge.

How has Unity Changed the Industry?

The innovative product controls and

manages a boiler house as one entity rather than relying on various third party control systems; creating a considerably more efficient and configurable boiler house for the customer.

Data is accessible from the cloud; enabling plant managers to optimise the relationship between boiler and process by understanding when large peaks and troughs are happening.

The intelligent use of data allows site managers and operators to react more quickly to plant conditions, reducing the number of start-stop cycles, fuel and water usage.

Essentially, having better control makes the customers' plant safer and more efficient, as well as reducing emissions. For further information visit www.byworth .co.uk. J

Green Energy From First Milk Cheese learfleau, a leading British provider of on-site treatment solutions C for the food and beverage sector, is commissioning its most complex plant to date, which will feed bio-methane into the gas grid in rural Cumbria. The plant has been designed and built for Lake District Biogas, which will operate the site for twenty years taking feedstock from dairy co-operative First Milk’s Aspatria creamery site.

This comprises low-strength wash waters such as process rinses, supplemented by whey permeate (cheese production residue after protein

Clearfleau's completed AD plant at Lake District Biogas.

extraction for use in energy supplements). This is pumped to the AD plant from the creamery.

By feeding the bio-methane into the gas grid, the facility will produce over £3 million per annum in cost savings and revenue, while supplying up to 25% of the creamery’s energy requirements.

This is the first on-site Anaerobic Digestion (AD) plant in the dairy industry in Europe to feed bio-methane to the gas grid, generated exclusively by digesting its cheese making residues. When the plant is operating at full capacity later this Spring, it will treat 1,650 cu m per day of process effluent and whey and generate around 5MW of thermal energy.

It will produce 1000 cu m of biogas per hour, of which over 80% will be upgraded for injection into the national grid. At least 60% of the bio-methane will be used in the creamery for steam generation, with the balance being used by local businesses and households in Aspatria.

Revenue benefits include 20-year index-linked, Governmentbacked incentive payments, with about £2 million per annum in support through the Government’s RHI scheme and a further £1 million through the sale of gas to the wholesale market and from the Feed in Tariff scheme for the power generated in the CHP engine. J

FOOD & DRINK BUSINESS EUROPE, MAY 2016

39

I PUMPS & VALVES

Packo High Shear Pump Series SFP2 & SFP3 he new, efficient high shear mixing T method developed by Packo is based on the proven EHEDG certified pump series FP2 with open impeller and series FP3 with closed impeller. The Packo shear mixer pump is mainly used for inline mixing, homogenisation and dispergation applications.

The shear is generated between the rotor and an innovative and optimized perforated stator (patent pending). The shear can be optimized and increased by

raising the speed of rotation. Shear rates up to 40.000 s-1 can be achieved at a maximum speed of 3600 rpm!

The final goal is to achieve a homogeneous solution of two liquids with high difference in viscosity and/or density and to obtain a particle size reduction for emulsions and particles.

The smooth operational performance achieved by this conforms with the unique precision and quality you have come to expect from all Packo components.

Thanks to the special designed stator (patent pending) together with small clearance between rotor and stator an important shear will be generated resulting in a significant particle size reduction (from 1.4 up to 2 µm)! A smaller particle size will result in a more stable final product.

The benefits of the Packo High Shear Pump Series SFP2 & SFP3 include: • High efficient so less energy cost!

• Use of std. components, easy maintenance.

New Benchmark For Standard Valves esto, a leading supplier of automation technology, has extended F its existing range of VUVS and VUVG standard single valve technologies with the launch of its ‘blue star’ VUVS-LK-S and VUVG-LK-S products. These valves have been designed to meet a wide variety of application needs with traditional high quality, but with more cost-effective pricing than ever before.

The new VUVS-LK-S is an entry-level standard valve range, providing robust and durable valves for challenging environments, while the VUVG-LK-S are compact valves for machine automation. Together, they meet the most common performance requirements across a broad range of customer applications, from material handling to electronic light assembly and packaging.

Part of Festo’s core product range, denoted in its product catalogue and online shop by a blue star, these products guarantee global stock availability and delivery within 24 hours, via easy online ordering.

For more information on the blue star VUVS and VUVG series of solenoid valves, visit www.festo.co.uk. J 40

FOOD & DRINK BUSINESS EUROPE, MAY 2016

• • • • • • • •

Several seal configurations available.

ATEX available.

Monobloc execution, easy installation.

Easy to clean (CIP and SIP).

‘Self’ pumping.

High mechanical & hydraulic shear.

Rapid solid dissolving.

Particle size reduction leading to a stable product.

For complete mixing and homogenizing units, please contact Packo Pumps. J

I BREWING

Anheuser-Busch InBev Moves Closer to Completing SABMiller Deal Anheuser-Busch InBev has moved closer to completing its £71 billion acquisition of SABMiller by accepting a €2.55 billion binding offer from Asahi Group of Japan to acquire some of SABMiller’s European premium brands and their associated businesses, while making certain commitments in South Africa.

T

he European business being acquired by Asahi Group comprises of the Peroni, Grolsch and Meantime brand families and related businesses in Italy, the Netherlands, the UK and internationally. The brands and operations of Royal Dutch Grolsch, Birra Peroni, Miller Brands UK, the Meantime Brewing Company, and SABMiller’s sales and marketing office in France are included. The global rights to the Grolsch, Peroni and Meantime brands are also part of the deal, with the exception of the rights in the United States for the Peroni and Grolsch brands.

The Eur2.55 billion sale is conditional on the successful closing of the recommended acquisition of SABMiller by AB InBev. The acquisition will allow Asahi to expand its growth platform in Europe and to become a global player with a distinct position, while increasing the presence of its flagship Asahi Super Dry brand.

The agreement with Asahi Group is designed to address potential European regulatory considerations relating to AB InBev’s recommended offer to acquire SABMiller.

South Africa In a similar move intended to smooth the passage of the acquisition of SABMiller in South Africa and to pre-empt any objections from the Competition Authorities there, AB InBev has made a number of

commitments to the South African Government regarding employment, localisation of production and inputs used in the production of beer and cider, empowerment in the company, and participation of small beer brewers in the local market.

The proposed acquisition will gain AB InBev entry into the fast growing beer market in South Africa, the traditional home of SABMiller.

AB InBev has undertaken to ensure that at no point in the future will there be involuntary job losses in South Africa as a result of the transaction. In addition, the company has committed to maintain its total permanent employment levels in South Africa as at the date of closing, for a period of five years.

AB InBev has also agreed to invest R1 billion (£48 million) to support small-holder farmers as well as to promote enterprise development; local manufacturing, exports and jobs; the reduction of the harmful use of alcohol (including making available locally produced low and no-alcohol choices for consumers) and green and watersaving technologies.

As part of the R1 billion commitment, AB InBev will finance 800 new emerging farmers and 20 new commercial farmers to produce barley, hops, maize and malt for the company, with the strategic intent to create additional jobs in the agricultural supply chain. This will entail expanding the production of barley to be malted and to turn a current net import of barley to a net export of malt (the processed form of grain used in beer brewing). AB InBev has also committed to support other enterprise development initiatives.

office for Africa will be located in Johannesburg and a secondary listing on the Johannesburg Stock Exchange has already been completed. The agreement also includes commitments by AB InBev to support the participation of small craft-beer producers in local markets.

Carlos Brito, chief executive of AB InBev, comments: “We are pleased to have reached this agreement with the South African Government. As we have stated from the outset, we are excited about the growth opportunities and the role South Africa will play in our combined business.

Recognizing South African Breweries’ important contributions to South Africa’s economy and society, our commitments seek to build on this deep heritage and we believe there is a huge amount that the two companies can achieve together to the benefit of all stakeholders.” J

Long-term Commitment As a further indication of its longterm commitment to investment in the country, AB InBev's regional head FOOD & DRINK BUSINESS EUROPE, MAY 2016

41

I GROCERY MARKET

Continued Growth in UK Online Grocery Shopping The days of heading to the supermarket are over for some British consumers as they trade trolleys for home delivery. Indeed, new research from Mintel reveals that 29% of UK online grocery shoppers are shopping for their groceries more online now than 12 months ago. nd online tills are ringing as a result, with online grocery sales forecast to reach £9.8 billion in 2016, up 13% from an estimated £8.6 billion in 2015. What’s more, sales are forecast to grow a further 73% to reach £15 billion by 2020.

Online-only grocery retailers are particularly benefiting from sofa surfing, with sales increasing 110% from £1.1 billion in 2010, to an estimated £2.3 billion in 2015. Currently, online grocery shopping accounts for 6% of total grocery sector sales in 2015, up from 3% in 2010.

Today, as many as half (48%) of Brits are current online grocery shoppers. One in ten (11%) do all of their grocery shopping online, with a further 12% doing most of their grocery shopping online. And it is younger consumers that are shunning the supermarket trip: one fifth (19%) of 25-34 year olds now doing all of their grocery shopping online, with 36% of this group shopping for groceries online more often now than 12 months ago.

The main reason consumers cite for shopping online more is convenience, with 60% of Brits who are shopping more online doing so because it is more convenient than visiting stores. This is followed by the fact that online shopping allows consumers to keep better track of how much they are spending (33%) and the wider variety of delivery slots available (32%).

doing so, rising to 38% of over 55s.

Additionally, 11% of UK online grocery shoppers are shopping online less now than 12 months ago.

A

Double Digit Growth Nick Carroll, Retail Analyst at Mintel, comments: “The online grocery market continues to grow in double digits, but remains small in the context of the wider grocery market. However, the shift away from superstores to more convenient shopping channels is certainly benefiting the market with the majority of consumers now doing some grocery shopping online and almost a third saying that they now shop online more than a year ago. The majority of online shoppers still mix online shopping with store-based shopping, but consumers are becoming increasingly comfortable shopping at online-only retailers with growth outpacing the total market.”

Not all consumers are ditching the trip to the shops however, with as many as one quarter (24%) of Brits having never bought groceries online and having no interest in

FOOD & DRINK BUSINESS EUROPE, MAY 2016

Lack of Control Two fifths (38%) of those who are shopping for groceries online less or who have stopped shopping for groceries online have done so because of the lack of control when choosing fresh products, while one quarter are put off by high delivery charges (26%) or have begun shopping more at discount grocery retailers (25%).

“The lack of control when selecting fresh food and drink products remains one of the biggest issues for online grocery retailing and not one that is easy to address. All of the major players now offer some form of freshness guarantee but this is still not a substitute for picking your own. Inevitably, due to the volume of orders the major retailers now have to process, not all products or orders live up to expectations.

Additionally, the discounters have obviously been a disrupting force in the grocery sector for a number of years, and it seems that online grocery retailers are not immune to the impact discounters are having on the market,” Nick Carroll continues.

Discounted Delivery Rates Finally, it seems that Brits are responding to delivery passes from retailers, entitling them to discounted delivery rates. As many as one fifth (21%) of those who shop for online groceries at retailers that offer a delivery pass currently own one and a further 29% don’t, but would be interested in having one in the future.

“As we see Brits turning away from the main weekly shop and towards fluid, whenneeded shopping, it is important for online grocery retailers to find a way to engage with these consumers. A wider proliferation of delivery passes may be one way in which retailers can do so as it makes more frequent online grocery shops viable,” Nick Carroll concludes. J 43

Maximum Yield Approach Delivers Bigger Profits and Enhanced Green Credentials For Dairies rla Foods Ingredients has launched a new drive to raise awareA ness of the ways in which whey protein ingredients can enable dairy companies to maximise output, increase profits and significantly cut waste.

The campaign – called Maximum Yield – will highlight how simply adding whey protein to an existing production process with only small or no processing adjustments can significantly increase a dairy’s efficiency and boost its sustainability credentials at a stroke.

The campaign is focusing on two fronts – the elimination of unwanted by-products, and the use of by-products as a raw material – underlining that there is an approach available to suit every dairy, whatever their circumstances. As well as supplying a wide range of tailored whey protein solutions, Arla Foods Ingredients offers the technical expertise to ensure factory managers can get the best out of them with little or no further investment in manufacturing equipment required.

Brian Jorgensen, Business Unit Director at Arla Foods Ingredients, says: “Maximum Yield is about emphasising the benefits of whey protein ingredients in terms of either making sure 100% of the milk processed ends up in the finished product, or alternatively treating any by-products created during production as a valuable raw material. In both cases, dairies will be maximising their productivity and reducing the burden they place on the environment.”

Waste is among the leading consumer concerns in today’s food and beverage industry, and Euromonitor International has ranked sustainable food production among its top 10 trends for 2016.

However, a sustainability positioning alone isn’t sufficient – and product quality remains the major driver to purchase.

Arla Foods Ingredients has developed a portfolio of whey-based solutions that offer the benefits of Maximum Yield in conjunction with exceptional quality. J

2 in 1: Flavour Booster and Sodium Reducer From Umamix alt of the Earth has launched Umamix S Bold for multiple food applications in the food manufacturing and food service industries. The new, all-natural ingredient is designed to simultaneously reduce sodium and boost flavour. Umamix Bold is a new addition to the company's recently developed Umamix line.

Food technologists and chefs constantly seek real innovation, with reducing sodium as just one goal in developing today’s new products. To effectively compete, new foods must be tasty and “wow” consumers with a bold, exotic flavour. Umamix Bold fits perfectly into this slot. The all-natural ingredient contains a proprietary combination of sea salt, tomato concentrate, and mushroom and seaweed extracts. It also helps to eliminate the use of monosodium glutamate (MSG) in savoury foods.

According to recent study conducted by MMR Research, 30% of global consumers actively seek products with a clean label. Umamix Bold is non-GMO, MSG-free and does not contain any arti44

ficial colors, preservatives or e-numbers. It enables a clean label claim and helps companies in their efforts to launch healthier products.

“Consumers are aware of the World Health Organization’s (WHO) call to reduce sodium and, at the same time, they

FOOD & DRINK BUSINESS EUROPE, MAY 2016

demand cleaner products with natural positioning,” says Revital Ben Shachar, marketing manager for Salt of the Earth. “We don’t consume food just to feel satiety; we want so much more from our food today.

For example, eating in a restaurant involves all of our senses – appearance and texture are not enough. A food must be healthful, look great and taste delicious.

Umamix Bold has an exotic taste that can enhance the flavour of a variety of products.”

“Umamix Bold fits perfectly in with the current flavour trends in Europe and the USA market,” notes Dror Levy, food service export manager for Salt of the Earth. “Bold flavours that also deliver health benefits are on the rise. The alluring taste of umami so favoured in Asian cuisine fits well in new gourmet recipes as well as in processed foods.”

A successful trial conducted with a leading processed meat company in Israel showed that replacing salt with Umamix Bold in sausages can improve flavour and easily decrease sodium by up to 30%. J