Food & drink business europe april 2016

April 2016

PepsiCo looks to the long-term in Europe

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C o n t e n t s

- 41 & 43 F ROZEN F OODS

- 3 M ERGERS & A CQUISITIONS

€15 million expansion at Agristo.

Coverage of British and international deals.

McCain Foods expands In Europe.

PAGE 3

Bob KunzeConcewitz, CEO, Gruppo Campari.

- 7 C OVER S TORY

P AGE 17

- 51 M ARKET F OCUS

Janet McCollum, CEO, Moy Park.

France is the world’s most innovative retail pizza market.

PepsiCo looks to the long-term in Europe.

R EGULARS PAGE 19 Bottling & Packaging. . . . . . . . . . 10 & 29-32

- 13, 15, 17 & 19 P OULTRY Major investment by leading UK poultry processors.

Information Technology . . . . . . . . . . . . 20-23

Andy Dawkins, MD, Faccenda Foods.

PAGE 5

Peder Tuborgh, CEO, Arla Foods.

Processing & Manufacturing . . . . . 27, 45-49 Storage & Logistics . . . . . . . . . . 33-37 & 40

Signs of further progress on Campylobacter reduction.

Quality & Safety . . . . . . . . . . . . . . . 39 & 40

Moy Park consolidates its leadership position.

Materials & Ingredients . . . . . . . . . . . . 53-56

PAGE 43

Dirk van de Put, CEO, McCain Foods.

Faccenda Foods positioned for the long-term.

Managing Director: Colin Murphy Editor: Mike Rohan

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Ramon Laguarta, CEO, PepsiCo Europe Sub-Saharan Africa.

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Barilla Group continues its international expansion.

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1

M E E R R G G E E R R S S M Gruppo Campari to Acquire Grand Marnier Owner Gruppo Campari has agreed to acquire a controlling stake in SPML, the French spirits company which owns the Grand Marnier brand. The deal has an enterprise value Eur652 million (for 100% of SPML). Gruppo Campari has also entered into an agreement with SPML for the worldwide exclusive distribution of the Grand Marnier spirits portfolio.

Headquartered in Paris, SPML is listed on Euronext (Paris) and has a market capitalisation of Eur427 million as of March 11, 2016. Its main bottling and packaging site is located in Normandy, France.

In fiscal year ending December 31, 2015, SPML achieved a consolidated annual turnover of Eur151.7 million and a consolidated EBITDA of Eur30.8 million.

Bob Kunze-Concewitz, chief executive of Gruppo Campari.

The Grand Marnier spirit portfolio is SPML’s core business, accounting for about 85% of sales. The Grand Marnier portfolio includes Grand Marnier Cordon Rouge, Cherry Marnier, Louis Alexandre, Cuvée du Centenaire, Cuvée du Cent Cinquantenaire and Quintessence.

SPML generates over 90% of its sales outside France. Key markets are the US, accounting for around 60%, Germany, Canada and France. SPML brands are currently distributed in over 150 countries through third party distributors.

Bob Kunze-Concewitz, chief executive of Gruppo Campari,

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

comments: “This acquisition represents a perfect fit with our external growth strategy in terms of brand profile, distribution and financial framework.

With Grand Marnier, we add a premium and distinctive brand to our Global Priorities portfolio, thus driving richer product mix, and we further consolidate our position as the leading purveyor of premium liqueurs and bitter specialties worldwide. In terms of route-to-market, Grand Marnier is a unique opportunity to continue leveraging our enhanced international distribution capabilities benefiting from a perfect fit of the distribution reach of the acquired business.”

Refresco Gerber to Purchase Dutch Co-packing Business Refresco Gerber, the leading European bottler of soft drinks and fruit juices for retailers and A-brand owners, is acquiring Dutch beverage manufacturer DIS for Eur72 million. DIS is focused on the filling of a wide range of cans with diverse nonalcoholic beverages such as carbonated soft drinks and energy drinks. DIS additionally fills beer in cans for regional and international brewers. The company employs 198 people and operates a high quality manufacturing site in Sittard, the Netherlands. DIS has an annual turnover of approximately Eur90 million.

Hans Roelofs, chief executive of Refresco Gerber, says: “With DIS we take a next step in the execution of our buy & build strategy and enhance our copacking position in the Netherlands. We also broaden our proposition and capabilities in the filling of cans. DIS’ international co-packing concept has been very successful over the years and will be continued and broadened in the Refresco Gerber setting.”

The transaction will be financed from existing credit facilities and available cash, and is subject to the approval of the competition authorities. Closing of the transaction is expected during the second quarter of

2016.

Earlier this year, Refresco Gerber agreed to acquire the PepsiCo bottling facility in Hamburg, Germany, for an undisclosed sum. Included in the terms of agreement is a 10year co-packing agreement with PepsiCo.

Hans Roelofs, chief executive of Refresco Gerber.

McCormick & Company Raises Potential Bid Price For Premier Foods US-based herbs and spices group McCormick & Company has revised its possible offer for Premier Foods, the UK convenience food group, to 65 pence in cash per share, following the rejection of two earlier approaches. The improved proposal values Premier Foods’ equity at £537 million.

However, the board of Premier Foods believes that the revised proposal continues to undervalue Premier and its prospects, but is prepared for meetings to take place to establish whether McCormick & Company will increase its offer price to a recommendable level.

Nissin Food Holdings of Japan has unconditionally agreed to acquire a 17.27% shareholding in Premier Foods from an existing shareholder.

Premier and Nissin are seeking to finalise the terms of a Relationship Agreement, conditional on completion by Nissin of the acquisition and Premier no longer being in an offer period.

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

FOOD & DRINK BUSINESS EUROPE, APRIL 2016

Asia Pacific, the Americas, Europe, Middle East and Africa.

It is a global leader in instant noodles holding the number one or two positions in key markets, including Japan, the United States and Brazil and has a growing presence in chilled and frozen foods, cereal-based confectionery and yoghurt beverages in Japan. Nissin's presence in Europe includes Hungary, Germany and Spain, with brands such as Cup Noodles, Soba and Top Ramen.

Gavin Darby, chief executive of Premier Foods, comments: "This is an exceptional opportunity for us to gain a major strategic partner which understands our business and supports our growth ambitions. We look forward to working with Nissin to explore ways our two businesses can cooperate to better serve both our customers and our shareholders."

Gavin Darby, chief executive of Premier Foods.

Fyffes Acquires Canada’s Largest Mushroom Business For €98 Million Fyffes, which is one of the largest tropical produce importers and distributors in Europe, has purchased Canadian mushroom producer Highline Produce. Fyffes has paid CAD$145 million (Eur98 million) to acquire 100% of the equity in Highline and refinance its existing debt. Fyffes is funding this acquisition through new and existing bank debt.

Highline is a fully integrated mushroom business operating from five facilities, of which four are owned and one is leased. It is the largest operator in the mushroom category in Canada, with retail customers 3

M E E R R G G E E R R S S M

accounting for about 75% of sales, and wholesale, food service and canning customers accounting for the balance. US customers represent about 35% of current annual revenues.

Highline’s experienced management team, led by chief executive Glenn Martin, will continue to run the business.

“This transaction fits perfectly with Fyffes strategic objective of adding an additional product to its existing three through the acquisition of an established, successful, integrated operator in a category with significant scale,” explains David McCann, chairman of Fyffes.

Fyffes has operations in Europe, the US and Central and South America. Its primary activities are the production, procurement, shipping, ripening, distribution and marketing of bananas, pineapples and melons.

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brands currently on offer in the US produce cheddar using the highest milk quality available, without growth hormones or artificial ingredients.

“Together with Dairy Farmers of America and eight of their farmers, who will supply the raw milk, we will explore the opportunities in building premium quality standards into the cheddar category through the Arla brand. Adding cheddar to our US portfolio will make us more attractive to the retailers and help increase the sales of our European products made from owner milk,” says Peder Tuborgh, chief executive of Arla Foods.

Part of the joint venture agreement is the construction of a production site in the western part of New York State, where the eight farms supplying the raw milk are placed. The joint investment is $58 million (Eur53 million) of which Arla covers 20%. The construction of the site will begin later this year and production is expected to start in autumn 2017.

Arla Foods Forms Cheese Joint Venture With Dairy Farmers of America Arla Foods and Dairy Farmers of America (DFA) have agreed to enter into a joint venture that includes the construction of a small dairy plant in the US for cheddar cheese production. In their first collaboration ever, the two farmer-owned co-operatives plan to explore opportunities to build premium-quality standards in the cheddar category, in the world’s biggest cheese market.

The joint venture will be 70% owned by DFA, which also holds the management role, 20% by Arla and 10% by the eight farmers who supply the milk. Thirty people are expected to be employed in the joint venture.

A third of the cheese bought

by American consumers is cheddar cheese. However, very few

Peder Tuborgh, chief executive of Arla Foods

Anheuser-Busch InBev Agrees Sale of SABMiller’s Stake in Chinese Joint Venture to China Resources Beer Anheuser-Busch InBev has agreed to sell SABMiller’s 49% interest in its Chinese joint venture, China Resources Snow Breweries, to China Resources Beer (Holdings) for $1.6 billion.

CRB currently owns 51% of the joint venture.

The sale agreement is in line with AB InBev’s commitment to proactively address potential

regulatory considerations relating to its recommended acquisition of SABMiller. The proposed transaction with CRB is conditional on, and expected to close in conjunction with, the completion of AB InBev’s acquisition of SABMiller. This is currently expected to occur in the second half of 2016.

mer chief executive of Gruppo Campari, and former investment banker, Warren Scott in 2011.

In addition to Quintessential Brands Ireland, the Quintessential Brands Group is made up of the Quintessential Brands Company; G&J Distillers, the world’s oldest gin distiller; Essential Drinks Company, the business-to-business supply division; Marblehead, the UK brand agency; and L&L, a leading manufacturer of fruit spirits and liqueurs.

Quintessential Brands Expands Further in Ireland International drinks group, Quintessential Brands has acquired Dublin Whiskey Company as part of a Eur10 million investment that will see it build a new Dublin whiskey distillery and Warren Scott, chief executive of Quintessential Brands, and Darryl McNally, general manager visitor centre for its and master distiller of Dublin Whiskey Company. established portfolio ds including The Dubliner and The Dublin Acquisition of Liberties. The development will DOC Kaas by DMK support up to 55 jobs over the Cleared next 18 months. The company The European Commission has has also appointed renowned approved under the EU Merger Irish whiskey distiller Darryl Regulation the acquisition of McNally as general manager and DOC Kaas of the Netherlands master distiller of its Irish by DMK Deutsches Milchkontor of Germany. DMK is a milk whiskey operations.

This latest investment follows co-operative which produces Quintessential Brands Ireland’s dairy, cheese and whey-based acquisition of First Ireland products. DOC Kaas is a milk Spirits in 2014 which included co-operative active in the proits extensive Irish creams and duction of Dutch-type cheese liqueurs brand portfolio and and other types of hard and production facility in Abbeyleix, semi-hard cheese, as well as County Laois, and is part of the cream and whey-based products group’s ongoing strategy to derived from the cheese producgrow its brands and operations tion process. in Ireland. In 2015, Quintessential Brands Ireland invested Eur4 million in doubling the production capacity of First Ireland Spirits, including the introduction of a comprehensive whiskey bottling operation. It already employs a total of 40 people in Ireland.

Quintessential Brands was founded by Enzo Visone, for-

FOOD & DRINK BUSINESS EUROPE, APRIL 2016

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COVER STORY

PepsiCo Looks to the Long-term in Europe Although facing significant challenges, PepsiCo’s European business region accounted for 17% of total group revenues in 2015 and offers the US-based beverages and snacks group major opportunities for long-term growth.

P

epsiCo is one of Europe’s leading food and beverage companies, supplying more than 200 brands to over 880 million consumers from Turkey in the south to Norway in the north, and from Portugal in the west to Russia in the east.

The brands portfolio encompasses household names such as Quaker, Lays, Pepsi and Tropicana and many popular local brands such as the UK's Copella juice, Russia's Chudo yoghurts and Solgryn oatmeal in the Nordics.

PepsiCo is Europe’s top savoury snacks producer; the number one juice company; the leader in RTD tea with its Lipton joint venture with Unilever; and is the second biggest cola company.

PepsiCo is also now a major dairy company in Eastern Europe and has been the leading food and beverage provider in Russia since its $5.4 billion acquisition of Wimm-Bill-Dann Foods in 2011, which was the US-based group’s largest ever international deal.

Enlarged Business Since June 2015, PepsiCo’s Sub-Saharan Africa business, which was formerly part of the Asia, Middle East and Africa division, has been part of the Europe segment. The enlarged division has been renamed PepsiCo Europe SubSaharan Africa (ESSA). PepsiCo’s other global business Ramon Laguarta, chief executive of PepsiCo divisions are PepsiCo North America BeverEurope Sub-Saharan Africa (ESSA). ages, Frito-Lay North America, Quaker Foods North America, PepsiCo Latin America, and PepsiCo Asia, Middle East and North Africa (AMENA).

The strength of PepsiCo ESSA, which is a $10.5 billion turnover business, is due to the balance between its strong snacks and beverages portfolios and its geographical diversity.

Strong Market Positions “We have a very large snack business, accounting for about half of our business. We have very strong market positions wherever we compete,” points out Ramon Laguarta, chief executive of PepsiCo Europe Sub-Saharan Africa. The snacks portfolio is headed by Walkers, Lay's and Doritos, which are very strong brands in Europe.

Ramon Laguarta continues: “On beverages, we have a leadership position in some NCB segments like tea with the Lipton brand.

And we have a very scale number-two CSD business with a very

PepsiCo ESSA generates about 40% of its revenue in the developed markets of Western Europe with the balance from Eastern Europe and Sub-Saharan Africa, which chiefly comprises developing and emerging economies.

strong non-sugar position in many European markets. As for nutrition, we have a very strong nutrition business behind the Tropicana brand in most of Western Europe. We're leaders in juices in Russia and CIS. We have a very strong dairy business in the East and we are also a very strong healthy cereal business behind Quaker in Western Europe.”

Geographical Diversification In terms of its geographical composition, PepsiCo ESSA generates about 40% of its revenue in the developed markets of Western Europe with the balance from Eastern Europe and Sub-Saharan Africa, which chiefly comprises developing and emerging economies.

The UK is the strongest market in Western Europe, accounting for about 40% of the region’s sales, but PepsiCo also holds strong positions in Spain, France, the Netherlands and Belgium. Snacks is the dominant category for PepsiCo in Western Europe, which enjoys higher margins than other PepsiCo regions due to its less asset-intensive franchise bottling approach in soft drinks, where it is strong in both the carbonated and non-carbonated sectors.

PepsiCo ESSA has also been concentrating on improving efficiency and competitiveness in its developed markets in Western Europe to maintain market share and profitability. The productivity programmes are designed to enhance cost competitiveness as well as generate funding for future brand building and innovation initiatives.

UK Stronghold “The UK is clearly our stronghold in Western Europe and we have a very large-scale business in the UK, very profitable, growing nicely, based on a very strong-scale snack business under the Walkers brand and the Doritos brand, where we have above 40% market share

FOOD & DRINK BUSINESS EUROPE, APRIL 2016

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and continue to grow. We have a very strong Quaker business, growing with the megatrends around healthy cereals. And we have a very strong juice business, with Tropicana and Naked also growing very nicely. We have a very strong partnership with Britvic that allows us to have a lot of scale in LRB and gain share in the CSD business,” Ramon Laguarta points out.

He elaborates: “As you know, the market is quite challenged now in the UK given the increased competition between retailers in the last two years to fight against discounters and e-commerce.”

PepsiCo’s strategy in its key UK market is to continue to invest in its core snacks, beverages and cereals brands, such as Walkers, Tropicana, Naked and Quaker, while stepping up its marketing and sponsorship activity. For example, PepsiCo recently signed a new deal with the UEFA Champions League, the annual European club football tournament. Lay’s/Walkers, Gatorade and Pepsi MAX will serve as lead brands for the tournament, while PepsiCo will also integrate its Doritos, Lipton and 7UP brands into the sponsorship programme. The move takes PepsiCo’s long-standing relationship with football to another level.

Ramon Laguarta comments: “The UEFA Champions League is without a doubt one of the most prestigious football competitions in the world, and with more than a billion football fans watching the matches every season, this new partnership offers unprecedented opportunities for both parties.” PepsiCo is also linking with other major events to further promote its Lay’s and Pepsi brands across Western European markets.

Innovation is also a key priority for PepsiCo in the UK and other Western European markets. The company is continuing to innovate to exploit very clear consumer trends including ‘healthy breakfast’ with Hots, ‘better for you snacking’ with crackers under Sunbites and ‘drink to eat’ with the Naked brand.

PepsiCo’s strategy in its key UK market is to continue to invest in its core snacks, beverages and cereals brands, such as Walkers, Tropicana, Naked and Quaker, while stepping up its marketing and sponsorship activity.

Leveraging Strength in Russia The East Europe and Sub-Saharan Africa region accounts for about 60% of PepsiCo’s ESSA’s business. Generating the lion’s share of sales, Russia is clearly PepsiCo’s largest business in this region. “We are the number-one food and beverage company in Russia with a very balanced portfolio; probably the most balanced of all PepsiCo in terms of snacks, beverages and nutrition, and with a very integrated operating model,” he says.

The economic fundamentals in Russia and the CIS (Commonwealth of Independent States) are strong with urbanization, the growth of the middle class, and the consumer shift from unpackaged to packaged foods driving growth across PepsiCo’s product categories and likely to continue to do so in the future.

The food and beverage giant is consolidating its strength in Russia by using its global brands supported by local brands like

PepsiCo is one of Europe’s leading food and beverage companies, supplying more than 200 brands to over 880 million consumers from Turkey in the south to Norway in the north, and from Portugal in the west to Russia in the east.

Eastern Europe In Eastern Europe and Sub-Saharan Af-rica, where per capita consumption of snac-ks and beverages is still low, PepsiCo has adopted a different business model with a company-owned dir-ect store delivery (DSD) system, which although more capital intensive allows great-er control at point of sale. However, margins are consequently lower than those in Western Europe but the opportunities for growth are greater.

“In the East, we have a very strong and growing business. The per-caps opportunity in our Eastern markets is very high,” he explains. “We believe we can drive continued sustainable growth in the future in those markets. We believe in those markets that still there's a lot of value creation by controlling the point of sale and, therefore, we invest more in company-owned DSD systems, both in our snacks and our beverages business, and that gives a lower margin than average PepsiCo.” 8

FOOD & DRINK BUSINESS EUROPE, APRIL 2016

Agusha and Tchudo in snack foods and J7 in beverages. PepsiCo is using its strength in Russia as a gateway to develop a stronger presence in CIS countries such as Belarus, Georgia, Kazakhstan, Armenia, Uzbekistan and Tajikistan.

PepsiCo’s Russian business is streamlining its operations to improve efficiency to adapt to the challenging market environment in the country. During 2015, PepsiCo closed two dairy facilities and a juice factory in Russia and continues to reduce its working capital. It has cut its cash conversion cycle by 72% over the last four years by reducing SKUs and optimizing demand-supply forecasting.

“Clearly there are short-term challenges in the Russia business,” Ramon Laguarta remarks. “This country has been through crises in the last ten years. We have very strong and very experienced local management in each one of the markets, in Ukraine, in Russia, the CIS markets, that have been through these turbulences. And we're managing the business to stay competitive, to make sure that our brands remain relevant with our consumers, and that we continue to provide value to the consumers.”

He adds: “We believe that these markets have a lot of long-term potential and the way we navigate the crises has been to always take into consideration the long-term potential.”

Financial Performance PepsiCo ESSA re-ported a 22% dec-rease in net revenue to $10.51 billion for 2015, primarily ref-lecting unfavorable foreign exchange, which negatively impacted net performance by 24 percentage points, inc-luding 13 percentage points from Russia, as well as net volume declines. These impacts were partially offset by effective net pricing. However, on a constant currency basis, net revenue grew by 2%.

Snacks volume rose by 1%, with mid-single-digit growth in Turkey and Spain, and low-single digit growth in the UK, South Africa and the Netherlands, partially offset by a mid-single-digit decline in Russia. Beverage volume declined 2%, chiefly due to a double-digit decline in Russia, partially offset by mid-single-digit growth in Nigeria and low-single-digit growth in Turkey and the UK. Germany also experienced a slight decline.

PepsiCo ESSA’s operating profit decreased by 22% to $1.08 billion, reflecting higher commodity costs, which negatively impacted operating profit performance by 24 percentage points, primarily from transaction-related foreign exchange. Furthermore, operating profit performance was negatively impacted by certain operating cost increases, the net volume declines and higher advertising and marketing expenses. These impacts were partially offset by the effective net pricing and planned cost reductions.

Unfavourable foreign exchange translation negatively impacted operating profit performance by 22 percentage points. Organic operating profit growth on a constant currency basis was 2.5%. J

PepsiCo is using its strength in Russia as a gateway to develop a stronger presence in CIS countries.

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Repacking Line With High Flexibility ACMI has installed an innovative repacking line for shrink-wrapped packs at the Polish site of Znin belonging to the PepsiCo Group. he line in question allows the repackaging on half pallets of shrink-wrapped packs packaged on whole pallets coming from T the store and of shrink-wrapped packs coming from the production line. Going into detail, the line is equipped with three loading bays for receiving the whole pallets from the store (off-line mode), but may also receive one of the three products directly from the production line (on-line mode). In the latter case of the three loading bays, only two are used. As a whole the line can mix up to three different flavours of product, provided that each pack has the same dimensional characteristics. It is impossible, that is, to obtain outfeed pallets made up of packs that have different dimensions between them.

TwisterboxÂŽ layer formation system.

robot. The robot, which was equipped with a special gripping head, picks up alternately from three pallets coming from the store a complete layer of packs at a time and deposits them on the discharge conveyors. Following the preset depalletisation programme, the Condor robot operates effectively both the gripping phase and the unloading phase of the product also taking care of the storage of the interlayers and pallets. The system presents a high level of automation and flexibility that allows it to reach significant working speeds and ensure perfect integrity of the product at the same time. This is possible thanks to the special gripping head designed

by ACMI which was equipped with the perimeter pad system and the sliding table with symmetrical opening and carbon rollers typical of the palletisation systems.

Palletisation of two half pallets with mixed flavours.

Configuration and Performance The repacking line installed at the Pepsi plant reaches a maximum production of 25 pallets per hour and can handle shrink-wrapped packs of 2x2 and 4x2 with bottles of 0.85 - 1.25 - 1.75 - 2 and 2.25 litres.

Depalletisation The depalletisation phase is entrusted to a 700 kg Condor model

The repacking line installed at the Pepsi plant reaches a maximum production of 25 pallets per hour and can handle shrinkwrapped packs of 2x2 and 4x2 with bottles of 0.85 - 1.25 - 1.75 - 2 and 2.25 litres.

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Depalletising robot.

FOOD & DRINK BUSINESS EUROPE, APRIL 2016

line infeed. Thanks to the system designed by ACMI, PepsiCo Poland can respond effectively and flexibly to the demands of the outlets, whether they are local shops or large-scale retail stores. J

All the format changeover operations are managed through an operator panel and no manual interventioon is required for the operation of ACMI machines.

Line overview.

Palletisation The packs deposited on the discharge conveyors reach on three independent lanes the infeed of the Twisterbox layer formation system which is the core of the mixing and palletisation system.

One of the three Twisterbox infeed lanes can, if necessary, receive the packs directly from the production line, thus obtaining a mixed repacking system, both off-line and on-line. The Twisterbox is configured with one module consisting of concentric closing carbon grippers. The Twisterbox receives the packs from the depalletisation zone and/or from the production line and combines them producing the preset palletising pattern. In this way, having three products available at the infeed which can be managed independently, the system produces a mix of packs depending on customer requirements. The layer of mixed packs is transferred to the openable platform head of the Condor P136 model robot which deposits them on two half pallets placed side by side. For each palletisation cycle two half layers are therefore produced, each containing the required product mix.

SCARA The palletiser is equipped with a SCARA type robot designed by ACMI to handle half pallets and interlayers.

This particular robot deposits the half pallets and inserts the half interlayers between the layers. Once completed, the two half pallets are sent to the rotating ring stretch wrapper and wrapped individually.

Overall, the line installed in Znin is presented as a highly flexible and fully automated line. All the format changeover operations are managed through an operator panel and no manual intervention is required for the operation of ACMI machines. The only manual operation remains, of course, the pallet film removal at the FOOD & DRINK BUSINESS EUROPE, APRIL 2016

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I POULTRY

Major Investment By Leading UK Poultry Processors Faced with continuing stiff competition in the UK retail market which is putting pressure on prices, many of the major poultry processors are investing to further enhance efficiency in an attempt to bolster profitability and revenues, while improving flexibility. he UK’s largest poultry processor is 2 Sisters Foods Group (see Table). 2 Sisters Food Group is currently investing heavily in its core poultry business to improve performance. “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 Food Group 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.

2 Sisters Food Group is also now active in the red meat sector following its purchase of VION’s loss making UK red meat and poultry business in 2013. With sales of £2.209 billion in 2015, the Protein division is by far the largest element of 2 Sisters Food Group.

However, like-for-like sales declined by 3.2% in 2015.

In addition to poultry and red meat, 2 Sisters Food Group is also a major player within the chilled and frozen food categories in the UK. Although predominantly a private label manufacturer, the group also produces a number of branded products including Fox’s biscuits and Goodfella’s pizza.

T

Turnaround Efforts at Bernard Matthews Bernard Matthews, Europe’s largest turkey producer, has also reported falling sales.

Despite turnaround efforts by Rutland Partners, the private equity firm which acquired a majority stake for £25 million Ranjit Singh, group chief executive of 2 Sisters in Bernard Matthews in 2013, revenue at the Food Group. problematic English poultry group dropped by £30 million from £306.8 million in 2014 to £276.7 million for the year ended 28 June 2015 as operating losses increased to £2 million compared to £1.8 million in the previous year. However, pre-tax losses after exceptional charges improved to £5.2 million, against £9.9 million in 2014.

Headquartered in Norfolk and employing about 2,000 people across East Anglia, Bernard Matthews is a fully integrated food business, allowing for full traceability across its 56 farms, which rear near-

Many of the UK’s major poultry processors are investing to further enhance efficiency.

ly 7 million turkeys per annum. Through its farming and production business the company supplies nearly half the homes in the UK with turkey and chicken meal time solutions.

Beset by various problems, including an outbreak of avian flu in 2007, Bernard Matthews has been loss-making for a number of years.

Part of its current turnaround plan is to increase the number of chicken products it sells alongside its turkey range.

Rebranding Bernard Matthews has initiated a £3 million complete rebrand to return its iconic brand to its famous roots and make it more relevant for today’s consumers. The new logo and branding has been brought to life through state-of-the-art 360 degree video technology, with a specially created animation of the brand’s home – Witchingham Hall – which has already been viewed by the top grocery retailers via virtual reality, a world-first for the industry.

The new look for the UK’s largest poultry brand has been impleTop Poultry Processors in the UK Company 1 2 Sisters Food Group (Protein Division) 2 Moy Park 3 Faccenda Foods 4 Sun Valley Foods 5 Bernard Matthews

Turnover £2.21b £1.44b £532m £451.2m £276.7m

Pre-tax Profits NA £9.4m £11.7m -£8.0m -£5.2m

Source: Company accounts, the Food & Drink Business Europe Top 100, 2015.

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mented across the entire company, including its website, Facebook page, email marketing and category offering, which includes 100 turkey and chicken SKUs in its frozen, fresh breaded and cooked meats ranges. In addition to new packaging, the brand re-launch includes TV sponsorship, PR activity, social media and website redesign.

Rob Burnett, chief executive of Bernard Matthews, comments: “The branding is a completely new direction and new chapter in what has been an iconic story. The branding combines the best from the past, with the landmark Witchingham Hall, and a contemporary and fresh design that feels very British. However, it’s not simply about new packaging, this is about an integrated sales, marketing and NPD strategy which helps us resonate with modern families.” Rob Burnett expects Bernard Matthews to return to profitability this year Faccenda Foods has also encountered difficult market conditions and has been broadening its product portfolio. “It’s no secret this is a tough trading environment, driven by export restrictions, currency fluctuations and fierce competition in the UK retail sector,” says Andy Dawkins, managing director of Faccenda Foods, who predicts the current year will be equally as challenging.

Major Investment Following recent investment of £35 million, Faccenda Foods’ extended flagship site at Telford is now one of the most advanced facilities of its type in Europe, allowing the company to expand into a wider range of convenience poultry-based products and to supply innovative fresh and convenience food solutions to customers (see ‘Faccenda Foods Positioned For the Long-term’ on Page 19).

Northern Ireland-based Moy Park is also investing heavily in its poultry operations. Moy Park has commenced a £170 million expansion programme across its three Irish sites at Dungannon, Craigavon and Ballymena (see ‘Moy Park Consolidates its Leadership Position’ on Page 17).

Moy Park has been part of JBS, the Brazilian meat group, since September 2015, having been previously been owned by Marfrig Global Foods, another Brazilian food group.

Another overseas business, US-based Cargill, also owns significant poultry operations in the UK. Cargill is currently investing £35 million Mary Thompson, head of Cargill’s European poultry phased over three years in its UK poultry busibusiness. ness, Sun Valley Foods. The investment programme entails creating a state-of-the-art processing facility in Hereford, which has been the base for Cargill’s poultry business in Europe for more than 50 years. In addition to the Hereford site, Cargill has production facilities in Wolverhampton and Newent in the UK, and in France and Russia.

Rob Burnett, chief executive of Bernard Matthews.

ments will enable Cargill to expand its capacity to process and supply fresh UK reared chicken.

Latest Technology The installation of the latest technology, such as robotic packing, cutting and evisceration systems will enhance efficiency while also improving productivity, quality and food safety. Cargill was the first processor in the UK to introduce this type of machinery, in partnership with Marel Stork.

Mary Thompson, head of Cargill’s poultry business in Europe, comments: “Consumption of chicken continues to grow in Europe (between 1.5-2%). Chicken is versatile, nutritious and, most importantly, delicious. I believe we have not reached the peak and that consumers will increasingly look to chicken for their main protein. With this trend as a backdrop, Cargill’s European chicken business will continue to identify opportunities to help drive growth for our customers through innovation and exceptional service and continue to pursue opportunities to enhance our efficiency and effectiveness.” J

Leading Supplier Employing over 2,800 people, Cargill’s European poultry business is a leading supplier and innovator of primary and further processed chicken products for retail, food service and food manufacturing customers. Through a network of six primary and further processing facilities, Cargill produces a range of products including tray packed fresh chicken and chicken portions, BBQ chicken products, rotisserie and marinated chicken and coated chicken products.

The£35 million phased investment is designed to focus Cargill’s UK poultry business on the retail sector and key partners in food service. This entails improving efficiencies, upgrading technologies and creating a state-of-the-art processing facility in Hereford. The invest14

FOOD & DRINK BUSINESS EUROPE, APRIL 2016

I POULTRY

Signs of Further Progress on Campylobacter Reduction he Food Standards Agency (FSA) has pubT lished the latest results from its survey of campylobacter on fresh shop-bought chickens. The results for the second quarter of testing, from October to December 2015, continue to show a decrease in the number of birds with the highest level of contamination from the same months last year. These most heavily contaminated birds, carrying more than 1,000 colony forming units per gram (cfu/g), are the focus of the current target agreed by industry, which is equivalent to no more than 7% of chickens at retail having the highest levels of contamination. Research has shown that reducing the proportion of birds in this category will have the biggest positive impact on public health.

The latest data show 11% of chickens tested positive for the highest level of contamination, down from 19% in October to December 2014.

Campylobacter was present on 59% of chicken samples, down from 74% in the same months of the previous year.

In this second quarter of the FSA’s second survey, 966 samples of fresh whole chilled UK-produced chick-

ens and packaging have been tested. The chickens were bought from large UK retail outlets and smaller independent stores and butchers. The survey commenced sampling in July 2015.

The data continue to show an improvement from the previous year. Interventions, including improved biosecurity, SonoSteam, and the trimming of neck skins, introduced by some retailers to reduce levels of campylobacter, may be helping to deliver the improved results. The trimming of the neck skin, the most highly contaminated skin area, means chickens are carrying less campylobacter.

Steve Wearne, director of policy at the FSA, says: “These results are heading in the right direction and we must continue to build on this progress. Retailers and processors must ensure the interventions that are working are embedded in industry practice. We have also arrived at a point where consumers expect access to data about campylobacter, so the FSA must ensure its survey remains robust and work with industry to ensure as much sampling data as possible are available to the public.” J

FOOD & DRINK BUSINESS EUROPE, APRIL 2016

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I POULTRY

Moy Park Consolidates its Leadership Position Moy Park is consolidating its position as one of Europe’s top prepared food products and poultry producers by continuing to grow the business through further investment in its industry leading farming and operational facilities.

Janet McCollum, chief executive of Moy Park.

perating 14 processing and manufacturing units in Northern Ireland, England, France, the Netherlands and the Republic of Ireland, Moy Park has the capacity to process 240 million birds annually, in addition to producing around 200,000 tons of food per year. Its product portfolio consists of a variety of fresh meats, ready-to-eat meals, pre-cooked meals, breaded and frozen foods, vegetarian foods and desserts, supplied to major restaurant chains and retailers in the UK and Continental Europe.

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

For example, Moy Park recently completed the first phase of a major £20 million investment at its facility in Dungannon, significantly enhancing pro-

duction capabilities as one of the most advanced processing plants in Europe. The investment programme has seen production increase significantly at Dungannon from 1.3 million to 1.8 million birds per week; increasing to 2.3 million birds per week on full completion. The investment has resulted in technology advancements and production efficiencies, and has also created an enhanced working environment for staff.

Moy Park has also announced a significant £4 million investment in its facilities at Craigavon positioning its ‘ready to eat’ cooked chicken production for further innovation and growth. According to Moy Park, the ‘ready to eat’ cooked chicken category represents a key growth area. The investment will enhance production capabilities and allow for continued innovation in this fast moving category.

Moy Park is also spending £10 million at its processing facility and hatchery operations at Ashbourne, Debyshire in England, leading to the creation of 100 new jobs.

The investment at the Ashbourne processing facility will enable Moy Park to increase processing capacity to over 1 million birds per week with the installation of a new cutting line, processing equipment and refrigeration chilling technology. In parallel, Moy Park is increasing the hatchery’s capacity to 1.2 million chicks per week, enabling Moy Park to meet growing demand from its customers for high quality, locally sourced poultry products.

Moy Park recently completed the first phase of a major £20 million investment at its facility in Dungannon.

Robust Financial Performance Aided by 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 in spite of adverse currency factors, commodity price deflation and lower international sales prices partially offsetting sales volume growth. Underlying

FOOD & DRINK BUSINESS EUROPE, APRIL 2016

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.

Underlying profit before tax increased by 2.0 % to £45.5 million. Profit before tax, including exceptional costs of £12.5 million, fell by £22.9 million against the prior year, to £9.4 million.

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

Janet McCollum adds: “As part of our £170 million strategic investment programme, the company invested £28 million in our industry-leading operations, securing Moy Park’s position as one of the UK’s most advanced food manufacturing companies. A further £30 million was invested in our agricultural base through our farming partners. Positive cash flow throughout the year enabled us to do this whilst reducing net debt.”

Change of Ownership 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. The acquisition is in line with JBS's expansion strategy in Europe with integrated production focused on innovation and powerful brands. J 17

I POULTRY

Manor Farm Consolidates Irish Market Leadership Carton Bros (trading as Manor Farm), which is the largest chicken processor in the Republic of Ireland, is further consolidating its market leadership by upgrading its factory at Shercock in County Cavan. anor Farm is a vertically integrated poultry business, exercising control over all stages of chicken production from breeding through to processing and finally to retail distribution. The company operates its own dedicated feed mill in Shercock along with a hatchery unit in nearby Carrickmacross.

Employing over 800 people, the family-owned business has a current turnover of Eur240 million and sells chicken to all the main retailers in Ireland either under private label or under the Manor Farm brand. It conThe company operates its own dedicated feed mill. trols in excess of 50% of the Irish retail chicken market including sales of both branded and private label fresh chicken.

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€15 Million Investment In line with its long-term growth plan, Manor Farm is currently investing in expanding and upgrading its processing facility at Shercock. This entails the creation of a new evisceration section with full recovery of offal along with the installation of a new IQF portion line, an extra fillet processing line and a new gas-stunning facility within the slaughter line.

Automation at the plant is also being enhanced with the introduction of a robotic fillet grading line. All aspects of the investment programme are due to come on-line in 2016. The current Eur5million spend is part of a Eur15 million five year investment plan.

“The objective of the investment plan is to bring the Shercock site up to the highest industry standards – on a par with the most

modern facilities.

This is a never-ending ambition because of the constant improvements in technology, equipment and new management information systems,” says Vincent Carton, chief executive of Carton Bros (Manor Farm).

“Manor Farm has one Vincent Carton, chief executive of Carton Bros of the most modern (Manor Farm). processing facilities in Europe producing consistently premium quality chicken, week-in week-out.” J

Owen McElroy Ltd. POULTRY TRANSPORTERS Carrickrobin, Kilkerley, Dundalk, Co. Louth Tel: 042-9377140 Email: owenmcelroy@eircom.net

Owen McElroy Ltd. has been in in business as a Poultry Dealer and Transporters for over 30 years.

We are NQA ISO 9002 Registered Company We offer our customers a 24-hour service at all times We have a fleet of 7 Scania Lorries, 14 Trailers and 4 forklifts, also a couple of backups. We are able to deal with breakdowns quickly and efficiently so as to maintain the smooth running of our operation.

Our on-site mechanical team see to the ongoing maintenance of all our lorries, forklifts and modules We pride ourselves on the highest standards of health and safety, all drivers having current Health and Safety Pass. We also have on-site washing facilities to insure cleanliness of all baskets, modules, trailers and lorries, so as to meet National

Carton Bros (trading as Manor Farm) is the largest chicken processor in the Republic of Ireland.

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Wish Manor Farm every success for the future

FOOD & DRINK BUSINESS EUROPE, APRIL 2016

I POULTRY

Faccenda Foods Positioned For the Long-term With its new portioning factory at Telford now operational and having recently completed the acquisition of duck processing business Cherry Valley Foods, Faccenda Foods is well placed for long-term growth as the UK’s only one stop shop for poultry. vertically integrated business controlling the whole product supply chain, Faccenda Foods employs more than 3,500 people at its chicken, turkey and duck operations across England and Wales, which supply both the retail and food service channels. Faccenda Foods is wholly owned by the Faccenda family and has been successfully supplying UK consumers for six decades.

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Andy Dawkins, managing director of Faccenda Foods.

Faced with difficult market conditions, Faccenda Foods achieved a solid performance in its 2014/15 financial year with revenue growth of 2% to £532 million despite deflationary pressures, while operational profits held up well at £11.7 million.

Tough Trading Environment Andy Dawkins, managing director of Faccenda Foods, comments: “It’s no secret this is a tough trading environment, driven by export restrictions, currency fluctuations and fierce competition in the UK retail sector, and our results reflect this. Maintaining strong results in these conditions reflects our focus on the fundamentals: delivering great service to our customers and providing the consumer with innovative products, while looking after our people – our most

important asset. We have also managed this while continuing to grow by developing our facilities and strategic acquisition.”

Following investment of £35 million, Faccenda Foods’ extended flagship site at Telford is now one of the most advanced facilities of its type in Europe, allowing the company to expand into a wider range of convenience poultry-based products and to supply innovative fresh and convenience food solutions to customers.

Indeed, Faccenda Foods’ convenience food business is continuing to grow. “This has been a new and expanding market for us in recent years and we are delighted that it continues to go from strength to strength,” says Andy Dawkins. “Our recently opened dedicated convenience food factory will build on this success, satisfy consumers’ demand for tasty, easy to cook meals, and accelerate our growth in this sector.”

The acquisition of Cherry Valley Foods has made Faccenda Foods the only UK supplier of chicken, turkey and duck creating further opportunities for growth in all three areas across a broader customer base.

In terms of the direction of the business he adds: “Our strategy is unchanged - by investing strongly across our supply chain, in agriculture enrichment, facility development and food safety we will establish ourselves as the first choice supplier for poultry. This is made possible by our solid foundations - a strong balance sheet and the financial stability to plan for the long term, giving our customers’ confidence to grow with us as a trusted partner.”

Food Safety Faccenda Foods has been at the forefront of efforts to tackle the problem of campylobacter in fresh poultry. The company is focusing on two key areas - factory processing intervention to significantly reduce the amount of Campylobacter in chicken and packaging innovation to improve food safeFOOD & DRINK BUSINESS EUROPE, APRIL 2016

Faccenda Foods has developed into one of the UK’s largest poultry businesses.

ty in the kitchen Faccenda Foods has adopted a new factory process called Sonosteam, which has the potential to reduce Campylobacter by 90%. The technology kills Campylobacter and other micro-organisms on the skin and internal cavity of chickens through the simultaneous application of both steam and ultrasound.

Working in partnership with UK supermarket chain Asda, Faccenda Foods has adopted an innovative packaging system for its award-winning Simply Roast in the Bag range, which enables consumers to put the poultry product straight in the oven without having to remove the packaging first, taking food safety in the kitchen to another level.

Simply Roast in the Bag products use an innovative packaging system.

Outlook Andy Dawkins expects 2016 to be equally challenging but is convinced the Faccenda Foods has adopted an appropriate strategy.

“I expect the market to remain challenging but if we continue to make good decisions for the long term sustainability of the business, remain resilient and continue to deliver for our customers day-in day-out, we will deliver our long term business plan,” he concludes. J 19

NetEDI Implements Cloud-based EDI Solution at Filippo Berio etEDI provide powerful Cloud-based EDI/B2B services offering ERP inteN gration and web form turnaround inside a platform that connects and automates vital business processes. NetEDI Managed Service gives customers advice, tools and confidence and extracts the B2B tasks from a company’s daily operation.

NetEDI has a fast growing list of clients including some of the largest household names in the retail sector. Here, we share the experience of implementing Filippo Berio’s system and the benefits it has brought to their operation.

Filippo Berio Established in 1867, in the small Italian town of Lucca, Tuscany, Filippo Berio has grown into an international company to become a leading producer of quality

Olive oils. Filippo Berio is the premier brand of the Salov Group which is specialized in the production and sale of olive oil, seed oil and related products in over 60 countries, is a market leader in the US and GB, and generates a turnover in excess of Eur300 million.

Accounts Department, states: “We were doing everything manually in our old system and wanted to centralize and automate the B2B operations. NetEDI were recommended to us and we haven’t looked back since.”

Technical Situation Filippo were communicating EDI Orders and Invoices electronically with their retail customers. A desktop system was used for receipt/transmission of the EDI messages whilst a further third-party system was responsible for the import/export of transactions with Sage. Manual intervention would be necessary to ensure their daily Orders/Invoices transactions were integrated with Sage whilst different points of failure and data visibility problems meant that maintenance proved difficult. The technical objective was to ensure that transactions could be integrated directly with the Sage 200 ERP system without any manual intervention/re-keying of data.

Solution NetEDI implemented their cloud based EDI service that provides hosted resources for clients. A single, centralised solution meant that the overall end-to-end visibility of Order and Invoice transactions was greatly improved whilst also ensuring full process automation was achieved. Orders are automatically converted from Trading Partners and imported into Sage 200 as if they had been keyed in, whilst Invoices are exported from Sage and automatically

Business Situation Electronic trading was becoming an increasingly important aspect in the operational running of the business. Besides several of their established customers, newer partners were being added onto the system and this led to a review of B2B operations. The previous solution consisted of older legacy systems which meant having to operate and maintain two separate solutions. Colin Clitherow, 20

FOOD & DRINK BUSINESS EUROPE, APRIL 2016

translated into the required file formats by the trading partners. The new implementation allowed Filippo to take advantage of the NetEDI Managed EDI Service that ensures clients do not require any inhouse EDI expertise. Clitherow adds: “After using the previous software for several years we didn’t expect that the EDI processing could be made as simple as this.

Our EDI documents have always been integrated into our ERP system but NetEDI make the process effortless. We’re alerted to when new orders are received which notifies us that it has been integrated to Sage.

The automation does make life a lot easier.”

Benefits The NetEDI managed service has greatly benefited Filippo Berio giving an overall operational benefit for the company. The service allows an organisation to extract the traditional EDI process from its daily operations enabling employees to focus on running the business.

Having one central system which takes care of the communication, processing and Sage integration serves to simplify whilst providing a singular view of data and endto-end tracking of EDI data – Orders and Invoices.

NetEDI offer significant benefits over traditional EDI solutions for Sage and other ERP systems. NetEDI offer an unrivalled knowledge of the Sage product family and a firm understanding of client requirements.

Clitherow concluded, “Moving to NetEDI was a good decision. I’m certainly very pleased that it has worked out successfully for the business. The service just works, the support is great and I certainly recommend the managed service to others”. J

Kanes Foods Takes Fresh Look at ERP With IFS Applications 9 anes Foods, one of the UK’s leading K suppliers of fresh prepared foods, has chosen IFS Applications 9 to replace its legacy systems. Kanes Foods produces a range of washed and ready to eat salads, prepared vegetables and stir fry vegetable mixes as well as fresh salad dressings and stir fry sauces.

Founded in 1990, Kanes Foods now has an annual turnover in excess of £100 million and supplies over 3.2 million packs of fresh produce to the UK’s leading super-

markets every week. In order to support its rapid growth, Kanes Foods needs to update its current landscape of disparate systems with one, fully integrated ERP solution.

“With IFS Applications 9 we will have a system that supports the business through the entire supply chain – from procurement, raw material handling, production and final shipment to our customers,” comments Mark Harris, Production Director at Kanes Foods. “In addition, IFS Applications 9 will allow us to replace a number of stand-alone systems, such as quality management, plant maintenance, payroll, HR and time & attendance giving complete visibility across the business.”

Kanes Foods operate in a fresh produce environment, with much of the product arriving, being processed and dispatched within the same day, as a result speed and accuracy of data capture is imperative. That is why the deployment of a number of IFS mobile solutions will be critical to the implementation project. Kanes Foods will use IFS Warehouse Data Collection for the

reporting of all movement of goods throughout the process. In addition, IFS’s mobile solution will be utilised by over 100 maintenance and quality technicians – to allow real time reporting on the shop floor.

Paul Massey, Managing Director of IFS Europe West, says: “We are excited to welcome Kanes Foods into our growing list of food customers. It is encouraging to hear that the breadth of the IFS solution, along with our ability to deploy functionality to a mobile workforce, were key factors in the company’s decision to work with IFS. We look forward to a long and successful partnership.” J

Iglo Savours Salmon Software Treasury Management System glo Group, Europe’s largest frozen food ITreasury business, has implemented a cloud based Management System (TMS) from Salmon Software. Iglo Foods, which had revenues of Eur1.4 billion in 2014, produces, markets and distributes branded frozen food in 11 European countries. Its core brands include Birds Eye, Findus (Italy) and Iglo.

“We needed to upgrade to an automated treasury management system from Excel spreadsheets which were proving to be too cumbersome, time consuming and unreliable,” comments Gareth Roberts, IT Business Solutions Manager at Iglo Group.

“We were also in the process of being acquired so needed a faster, more accurate and auditable perspective on our treasury positions.”

The Software-as-a-Service (SaaS) application, which Iglo has implemented, is part of the Salmon Treasurer TMS suite which is also available as an on-premise offering.

John Byrne, CEO, Salmon Software.

Salmon Treasurer helps corporate treasurers to manage foreign exchange, debt, money market, treasury, banking transactions, forecasting, derivatives and many other related treasury activities.

FOOD & DRINK BUSINESS EUROPE, APRIL 2016

“We operate in 11 countries across multi-currencies so in particular we needed greater transparency of our FOREX as well as our debt positions,” adds Monika Molnar, Treasury Manager, Iglo. The new software is integrated to its banking systems and includes Salmon’s EMIR (European Market Infrastructure Regulation) reporting module.

John Byrne, CEO, Salmon Software, which is headquartered in Dublin, Ireland, adds: “As one of the few remaining independent TMS specialists, we offer companies like Iglo the most comprehensive and flexible TMS currently available and at an affordable price.”

Independent Salmon Software, which has specialised in treasury management solutions for three decades, works with other blue chip corporates across many industries including in the food sector, Glanbia and ABP Food Group. For further information visit www.salmonsoftware.com. J 21

If Not Now – When??

By David McNamara of Verify Technologies today’s fast paced world of increasing Ileadnlegislation, tighter margins and shorter times, there are serious questions that you, as business owners and managers, need to ask yourselves. Why are businesses still operating with paper-based systems and how can we trust that our traceability can be managed securely on hand written paper? Why do management spend half their week wrestling with spreadsheets just to extract some meaningful data? Why is it, when 60% of all turnover is consumed by materials, we don’t know how much inventory we have on a day to day basis? Why don’t we know the cost of each batch? How are we not be able to put an exact figure on waste?

All of the above are things that your business should be able to tell you almost instantly. These facts should be at your fingertips. Without the information, how can you control your business efficiently and effectively? These are very real issues, which ultimately show us that paper-based systems are by their very nature, inefficient!

You Need to Invest in Your Information Machine Now You need a complete business management Solution. One that connects all processes into one solution. It is only when all your business processes are connected with one solution that true automation can be achieved, simply because all your processes (Sales, Production, Purchases, Quality, Training, and Accounts) can now talk to each other and exchange information, reducing the amount of work required by each person. These systems don’t replace jobs. They enhance jobs.

These systems do not cost a lot anymore.

In fact these systems pay for themselves.

With the dawn of cloud computing, there is one solutions out there that is available to every business for the cost of one part time employee. A complete business management system that will optimize all your

You need a complete business management Solution. One that connects all processes into one solution..

• Operator training and support We essentially become your outsourced I.T department. So why wouldn’t you make Verify Technologies your next employee?

Visit www.VerifyTechnologies.com/foodtraceability to find how to improve efficiency, reduce cost and waste and make your life a little easier! J processes.

Now, if you could employ one more person, just one more person to do all of this.

An employee who managed all of the above for you, generated instant reports, managed real time inventory, Batch Costings and reduced waste. An employee who worked 24/7, 365 days a year. Never called in sick, never leaves you.

You would bite my hand off for that employee!

So why not employ Verify Technologies to help?

At Verify Technologies we look to form lasting partnerships. With us you pay one low cost monthly subscription (equivalent to a part time wage). In return we provide; • The Verify Technologies software platform • Project management • On-going support and maintenance and updates as they become available

It is only when all your business processes are connected with one solution that true automation cann be achieved, simply because all your processes (Sales, Production, Purchases, Quality, Training, annd Accounts) can now talk to each other and exchange information, reducing the amount of work requireed by each person.

Seerys Bakery Receive BRC – AA rating using Verify Technologies System Sharon Buggy (Financial controller) & Karolina Ryczkowska (Inventory controller): “We needed to bring our business into the 21st century, because all our processes were very manual. We discovered we were losing a lot of money through wastage. We chose Verify because they were the most cost effective and most importantly they integrated with our accounts package. And I Suppose thrust was a big thing. We liked them.

“Verify Helped us to get much greater control over our processes. We have a Quality Portal, Sales portal, Production portal. Which shows us in real time all the processes. So we can control it much tighter. We can trace any batch code and see what it is doing inside the business. We can control our processes much tighter.

“The help and support from Verify was tremendous! Before Verify everything was manual. Now we use tablets and handhelds which frees up a lot of resources and peoples time. We have plans to integrate our equipment with the system for greater traceability and accuracy. Obviously our plans are to continue with Verify and develop with Verify in the years ahead.”

FOOD & DRINK BUSINESS EUROPE, APRIL 2016

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I ITALIAN FOOD

Barilla Group Continues its International Expansion Faced with a sluggish domestic market, Italian food group Barilla, which is the world’s leading pasta producer, is continuing its international expansion and recently opened new operations in France and America. n addition to its global pre-eminence in pasta, Barilla is also a leader in pasta sauce in continental Europe, bakery products in Italy, and crisp bread in Scandinavia. The Barilla Group currently operates 30 production sites (14 in Italy and 16 abroad), including nine directly managed mills that provide most of the raw materials for the production of its pasta and bakery products.

Barilla was established in Parma in 1877 as a shop producing bread and pasta. Pietro Barilla, a grandson of the company founder, who joined the family business in 1947, is credited with masterminding the transformation of Barilla from just another small Italian pasta producer into the world’s largest and best-known pasta brand.

The company exports to more than 100 countries. Apart from the flagship Barilla, the group’s other brands include Mulino Bianco, Voiello, Pavesi, Academia Barilla, Wasa, Harrys (France and Russia), Misko (Greece), Filiz (Turkey), Yemina and Vesta (Mexico).

Still family-owned, Barilla Group’s strategy is to focus on growing its pasta, sauces and ready meals business worldwide, while simultaneously consolidating its branded bakery business in Italy and other key European market.

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€170 Million Investment in France Last year, the Italian food group opened

France’s largest industrial bakery site at Chateauroux. The extension and modernisation of its La Malterie facility, at a cost of Eur30 million, represents Barilla’s most important investment in France since the acquisition of Harrys in 2003.

It is part of a Eur47 million investment program between 2014 and 2016 that also includes the building of a new crustless soft bread production line on the Plaine de l’Ain facility (near Lyon), which was inaugurated in June 2014.

Since acquiring Harrys, Barilla has invested Eur170 million in the business to support its rise to become the leader as well as the most dynamic player in the pre-packed bakery market.

American Expansion In the United States, Barilla recently opened a new headquarter in Chicago serving markets in North and South America. The new 75,000 sq ft facility has been chosen to enhance the employee and customer experience, as well as enable new research and development innovation capabilities. The building incorporates pilot plant facilities, full test and demonstration kitchens, and a Customer Collaboration Centre for joint business planning with customers.

“This is a new and exciting chapter for us – one that speaks to the passion we feel for continuous innovation.

It's how we are growing the business,” points out Guido Barilla, chairman of Barilla Group. “Now, when our employees come to work they are welcomed to a space that is built for collaboration and learning, both of which are the engine that pushes us forward into new territories and to even better serve our customers.”

FOOD & DRINK BUSINESS EUROPE, APRIL 2016

Also in the US, Barilla recently opened a third restaurant in Manhattan, New York.

Barilla owns two production plants in the US, one in Iowa and one in the State of New York. In Brazil, Barilla operates with plants run in collaboration with a local manufacturer of pasta produced with common wheat and egg, which is more suitable to the taste of local consumers.

Funding To help finance its growth outside Italy, Barilla recently completed the placement with US institutional investors of its new bond worth $185 million with maturity in 2027, the year of the 150th anniversary of the foundation of the Italian pasta company. The choice of the duration is aimed at encouraging long-term partners amongst the group’s financial backers.

Barilla Group has been courting US institutional investors since 2003 and the latest move is its fourth issue with a private placement, for an overall funding of $885 million (of which $350 million have already been paid back since the end of 2015).

In its last financial year, Barrilla achieved revenues of Eur3.254 billion with like-for-like growth of 2% compared to 2013. EBITDA increased from Eur409 million to Eur427 million or 13.1% of revenues against 12.7% the previous year. J 25

I INTERMEDIATE BULK CONTAINERS

Improve Production Efficiency and Flexibility Using MATCON IBCs major advantage of IBCs is the ability to maximise productivity even when A accommodating a widening portfolio of recipes. Total manufacturing flexibility is

The Matcon Powder Packer can efficiently fill sacks from 5-25kg straight from the IBC, and with change-out parts available, recipe changeovers are extremely rapid. achieved because material is blended in the container, meaning that recipe changeovers are virtually instantaneous as there is no need to clean down. In addition, the decoupled nature of the system results in product flowing efficiently around the manufacturing

process steps, keeping OEE rates high on the essential processes of Blending and Packing. The Matcon Powder Packer can efficiently fill sacks from 5-25kg straight from the IBC, and with change-out parts available, recipe changeovers are extremely rapid.

Improvements in yield reduce costs as waste from scrap or rework is diminished by using Matcon Cone Valve IBCs. The IBCs stimulate cohesive materials to flow and control free-flowing powders. Mass-flow discharge protects all blended mixes from segregation, producing a quality final product every time.

A large proportion of manufacturing costs are sustainability related in the form of energy, water usage and wastewater. The Matcon product modules are designed to reduce utility consumption.

Notably, the air wash station efficiently cleans most recipes costing a fraction of that for water cleaning.

Bakery manufacturer British Bakels added a Matcon IBC System alongside their fixed mixing system to produce the high variety, low volume product lines.

This additional line has reduced cleaning time from 480 to 70 man hours, released £175,000 of cash by reducing Inventory, reduced labour costs by 25%, cut manufacturing time in half as mixes with fat are done as ‘singlestage’ mixes and enabled the company to expand their product range to meet changing consumer tastes.

Boh Tea Plantations Sdn Bhd in Malaysia maximised their throughput with only minimal investment as the small footprint

A major advantage of IBCs is the ability to maximise productivity even when accommodating a wideningg portfolio of recipes.

of the IBC System allowed them to use available factory space without costly extensions. The modular design also allows for expansion as the company grows.

If you would like to find out more about how a Matcon IBC system can help reduce your costs, please contact them on +44 1386 769000 email: matcon_marketing@idexcorp.com. web: www.matconibc.com J

Improvements in yield reduce costs as waste from scrap or rework is diminished by using Matcon Cone Valve IBCs.

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I INTERMEDIATE BULK CONTAINERS

CLD Puts Companies on Track Towards a More Efficient Supply Chain tanks. Our Combo-bin is available with 3 or 5 runners at the bottom and includes a dropdoor for easier filling when needed. Another special product is our lightweight foldable Orca, a 1000 litre bag in bag solution that CLD helped to design. This bag is ideal for products that need to be heated before discharging, like butter-oil in the chocolate industry, but it can also be used in many other industries and for long distance transport where the filling of 20ft and 40ft containers needs to be optimized and packaging weight and waste reduction are essential.

ONTRALOAD is the Pan-European C market leader in plastic pallet pooling.

This includes the rental and management of plastic pallets, IBCs and drums for the B2B market (mainly the food industry).

CLD also offers support services such as transport, cleaning and pallet repair of different load carriers. In addition, the group recently developed a number of new activities, such as specialized load carrier solutions for specific market applications ranging from the automotive industry to the packaging industry and even into high care areas. CLD offers a free consultancy to put companies on track towards a more efficient supply chain through load carrier optimization and tailored pooling solutions.

Q - Is CLD also involved in the IBC business?

A - Yes and it is a growing business for us.

Beside pallet solutions, we also provide a range of box-solutions for a number of different industries. We have BOP- (Box on Pallet) solutions for lightweight products such as packaging, preforms, caps and closures as well as heavier bins (Magnums) for customer products ranging from packaged foods, frozen products and even car parts and we have collapsible IBCs (Arca Combo) for liquid products in the food industry such as oils, fruit

juices & preparations, sauces, creams and such.

Q - Are they all the same size?

A - No, we have light and heavy solutions and they vary from 600x800mm to 1140x1140mm. If a customer would need an odd-sized bin, we would also investigate the possibilities and invest in that specific bin, if the application makes sense. It is the basis of our philosophy to adapt our offer to the real needs of our customer.

To give you an idea, we have 210 litre conical drums which are nestable, an enormous space-saver compared to the standard steel drums whereby the use of a liner is not always necessary anymore because of our high cleaning standards. The drums are mostly used for fruit preparations, frozen products and in the beverage industry. Our Arca Combo is a 1050 litre bag-in-box solution, available with a bottom discharge valve for aseptic filling and emptying and for non-aseptic applications as well. We also have this bin without a bottom discharge opening for the customers that prefer to empty the bin from the top like the tomato paste users. Because the Combo is collapsible, it is a spacesaver and an economically interesting alternative to stainless steel

FOOD & DRINK BUSINESS EUROPE, APRIL 2016

Q - Does CLD also provide a complete bag in box solution?

A - Certainly, because we are a one stop solution shop! Together with our liner and valve partners we have decades of liquid liner experience. We can provide you with liners for every IBC we have and for 95% of the liquids on the market. Steamable valves, Free flow gusset technology, high barrier foils, flexcrack proof liners, you name it, we have it and at a very competitive price!

Q - Anything new on the horizon?

A - YES, many things, but coming into the market soon are our brand new top decks, 800x1200mm and 1000x1200mm, made from plastic and stainless steel. This product is the ultimate solution for many packaging companies struggling with wooden top decks.

No more nails, wood chips, dangerous strapping, etc. We have a returnable strong solution that we will pool alongside our pallets, but can be bought as well.

Do you have more questions? Please contact CONTRALOAD at info@ contraload.com; Tel UK +441212701007; France +33561337690; Iberia +346 28705154; Europe +3232059020. J

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I INTERMEDIATE BULK CONTAINERS

Foodcert – Packaging as a Quality Factor he food industry has very high standards for the production and transport of foods. As IBCs are commonly used at the beginning T of the food chain, eg for concentrates, pre-products and raw ingredients, even small impairments can have serious implications. High safety standards guarantee quality along the entire chain, from production to transport and sales.

Schütz has developed the new Foodcert IBCs and drums to match these requirements. These packaging products provide full material, product and process safety. They comply with all the specifications of the Food and Drug Administration (FDA) and European guidelines, and include many additional factors to minimise risks. This new packaging matches today’s significantly higher requirements in the food industry, extending far beyond the usual focus on materials.

Certified Safety This new IBC range is based on a complex process of certification in accordance with the industry standard FSSC 22000 (Food Safety System Certification, based on ISO 22000 in connection with ISO/TS 22002-4) for all relevant Schütz production sites worldwide. Internal audit planning ensures renewed FSSC compliance

Particular preventive measures on the Cleancert line: Preproduced components, such as screw caps, for instance, are hygienically wrapped until required for final assembly. Staff wear protective clothing in accordance with detailed hygiene regulations.

every year. Schütz follows the guidelines of the Global Food Safety Initiative (GFSI), which recognises this system certification. The GFSI is the world’s largest non-profit organisation for the improvement of food safety; it was founded in 2000 by food producers and retailers to establish international standards. The area of influence of the GFSI and its guidance document currently includes Europe, the US, South America, China and India.

Preventive Manufacturing Complying with maximum safety requirements demands effective preventive programmes: Schütz has implemented numerous measures within the HACCP (Hazard Analysis and Critical Control

Just-in-time production and seamless traceability: the new Foodcert IBCs conform to the wishes of consumers for food labelling stating the exact place of origin.

Schütz manufactures Foodcert packaging just-in-time on the basis of individual customer orders. The containers are loaded indoors to ensure the highest cleanliness standards.

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31

bers for articles or packaging items. Finished Foodcert IBCs are loaded indoors without delay and dispatched. Pre-produced components such as screw caps, outlet valves or bung plugs are hygienically packaged and stored separately. Containers which are being dispatched later are stored in special, closed rooms. Optional plastic covers provide additional protection until the IBC is used to transport concentrates and food products.

Schütz Foodcert packaging matches the current needs of the food industry, including FSSC 22000 certification.

Points) concept. These apply to all buildings, equipment and the entire production environment and together make a huge contribution to maintaining filling product quality.

Schütz manufactures Foodcert packaging just-in-time on the basis of individual customer orders: immediately after moulding the IBC inner bottles are transferred to final assembly and inserted.

Each production step and component is clearly assigned to the relevant packaging product and is free of silicone. A barcode system identification enables seamless traceability right back to batch and process level. Schütz can also assign individual identification num-

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EVOH – Protection For Consistent Quality Schütz can also supply Foodcert IBCs with an EVOH barrier layer to protect sensitive goods, e.g. milk, fruit juices, alcoholic beverages and aromas, during transport. This enhanced protection is made possible by Security Layer Technology, where up to six functional layers can be extruded in one go. Integrated between two carrier layers, this technology offers effective protection against permeation, preventing gases, aromas, fragrances or solvents from permeating in or out of the container, stopping vitamin degradation and significantly extending the shelf-life of sensitive filling products.

The EVOH barrier also allows the proportion of preservatives to be reduced and even means that the containers do not require cooling during transportation. A white or black conductive outer layer provides protection against UV radiation and light. Customers profit from the consistently high quality and storability of their products.

Schütz Packaging Systems is committed to continuous internal research activities and close cooperations with institutions and universities. This ensures that the products developed by the IBC specialist are closely aligned to the changing requirements of the food industry. J

FOOD & DRINK BUSINESS EUROPE, APRIL 2016

I HYGIENIC PALLETS

Mitigate Cross-contamination Risk With Hygienic Pallets With food and beverage exports having doubled over the past decade, Jim Hardisty, MD of Goplasticpallets.com, provides examples of hygiene best practice in logistics. ccording to the Food and Drink A Federation (FDF), there are nearly 30 industry groups such as the Food Storage

and the benefits of using plastic pallets and food containers.

Food Poisoning Food poisoning affects as many as 5.5 million people in the UK every year. Most manufacturers are already aware of these concerns, and thus are increasingly turning to plastic pallets and sealable plastic containers for the arguably more economical and secure transportation solution that aids safe storage of food ingredients and fresh produce and helps to reduce waste.

Microorganisms can be introduced at any point in the food supply chJim Hardisty, Managing Director of Goplasticpallets.com. ain and are invisible to the naked eye, which is why it’s grade high density polyethylene (HDPE) vitally important for food which makes them fully compliant with manufacturers to source the EU safety legislation and suitable for food most hygienic pallets for businesses to use as part of an HACCP handling and transporting plan. The smooth sealed surfaces of our their products. Plastic pallets Hygienic plastic pallets have no cavities, are water-resistant and allow won’t absorb moisture and are tolerant of for high-pressure cleaning in weak acids and alkalis. between uses, which minAnother great example of how our plastic imises the risk of infestation, products have helped to improve hygienic odour, fungi, mould or operations within food manufacturing is harmful foodborne path- our collaboration with Forresters Chicken. ogens which may be found The company ordered just over 2,000 of on wooden pallets. our GoS&N 64140P food containers to replace cardboard boxes used to hold prodHygienic Plastic Pallets ucts in factories and to transport chicken Although all plastic pallets products to customers. are hygienic when compared to traditional wooden pallets, Versatile Range at Goplasticpallets.com we Our versatile range of durable plastic stack offer a range of specially and nesting containers are a perfect fit for designed Hygienic plastic the poultry company due to the smooth pallets that are ideal for use and straight walls for large internal capacity in food production areas and (10kg of product), perforations that allow clean room environments. for drainage and good airflow, as well as non-absorbent surfaces Our Hygienic plastic pallets ease of cleaning. are manufactured from food Heidi Nickson, Director of Forresters

& Distribution Federation, and the industry’s 400,000 employees feed nearly 64 million people every day from 9,500 manufacturing sites and factories.

In 2014, industry exports accounted for £18.3 billion1 yet future manufacturing and processing industry growth prediction is set to exceed £113 billion2 with over 105,000 skilled new recruits being needed by 2022.

In addition to the annual Food Safety Week campaigns, the government runs ongoing consultations within the food and drink manufacturing industry to improve food hygiene practices and consumer safety regulations. In this article we focus on hygiene best practice within the industry

Our Hygienic pallets have fully sealed and are available in a range of colours.

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Chicken said: “We are an A grade BRC approved food processing company. Top quality hygiene is key to our business success. Everything used in the factory must be food grade and either plastic or stainless steel ideally.

From the moment we decided we needed plastic trays and contacted Goplasticpallets.com we have received good service from helpful staff with a product that serves our needs perfectly.”

Made of food-grade HDPE plastic, our Hygienic pallets are ideal for food and drink manufacturers.

Food Hygiene Scares Food hygiene scares present a massive threat to food manufacturers not only in terms of the financial impact, but also in the damaging effect they can have on a company’s brand. Every day there are product recall stories in the news which can be detrimental to con-

sumer trust and supply chain relationships. Professionals in the industry can help to avoid such negative experiences by making the decision to ’Go Plastic’ by using plastic pallets and boxes.

For further information - Tel 01323 744057, E-mail sales@goplasticpallets.com or visit www.goplasticpallets .com. J REFERENCES:

1.IGD – Key Industry Facts – www.igd.com/About-us/Media/Keyindustry-facts.

2.Food Manufacture – Food and drink manufacturing industry set for 3-4% growth – www.foodmanufacture.co.uk/Manufa cturing/Food-and-drink-manufacturing-industry-set-for-3-4-growth.

I REUSABLE PLASTIC CONTAINERS

IFCO Launches SmartGuardian™ Proprietary RPC Wash Process Control Technology FCO, the leading global provider of reusable packaging solutions Ietary for fresh products, has announced the global launch of its propriSmartGuardian technology to monitor and control IFCO’s RPC (Reusable Plastic Container) sanitation process, helping to ensure adherence to the company’s strict global hygiene and sanitation standards at each of its 50+ wash facilities worldwide.

SmartGuardian is an integrated software and hardware system which was developed by IFCO and CM Automation specifically for IFCO’s processes and equipment, making IFCO the first and only RPC provider with this technology.

IFCO operates a pool of over 225 million RPCs in 37 countries.

IFCO RPCs are used primarily to transport fresh products from producers to leading grocery retailers worldwide. IFCO's solutions help retailers and producers reduce costs and increase sales by maximizing efficiency, product protection, sustainability, and safety throughout their supply chains.

SmartGuardian strengthens IFCO’s global sanitation process standards, which include state-of-the-art cleaning and drying equipment and Diversey™ detergents and disinfectants from Sealed Air, who ensures the hygiene of all IFCO RPCs washed with Diversey detergents and disinfectants through an integral cleaning and sanitation program. In addition, IFCO’s standards include

critical control point parameters including water pressure and temperature, contact time, and detergent concentration.

“The deployment of SmartGuardian in our service centers demonstrates IFCO’s commitment to providing our customers with the best container solutions for fresh foods,” says Wolfgang Orgeldinger, CEO of IFCO. “This new technology is a significant investment for our company and will help make our global sanitation processes even more rigorous by tracking our cleaning parameters on a continual basis.”

SmartGuardian ensures the RPC cleaning process meets IFCO’s strict global hygiene and sanitation standards by monitoring detergent and disinfectant concentrations, water temperature, and pump pressure during RPC washing and providing pallet-level reporting of those parameters. If at any time one of the critical wash parameters become inconsistent with IFCO’s standards, SmartGuardian halts the process and alerts company personnel. Processing will not resume until IFCO experts diagnose the problem and bring the system back into compliance.

In addition to critical wash parameters, SmartGuardian also monitors and records the consumption of water, gas and electricity, to help IFCO continue to reduce natural resource consumption and impact on the environment. J

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I PALLET NETWORK

After a Record-breaking 2015 UPN is Growing From Strength to Strength s it maintains a trajectory of continued strong growth, 2015 has been a year of A new records for UPN, outgrowing the pallet sector not only in percentage terms but also in actual pallet business growth. UPN services continue to maintain over 99% service level performance even with the additional 20%+ volume growth seen in 2015.

“As we enter 2016 UPN is growing from strength to strength following what was a fantastic 2015. Overall year on year UPN business growth has been an impressive 20%,” says UPN MD David Brown. “We have continued to see our membership grow and grow, with high quality new additions and indeed one addition already in 2016.

With 24 new members joining in 2015 UPN has now built up its nationwide membership to a record 90+ members.”

David Brown, Managing Director of UPN.

UPN’s growth has enabled the company to consolidate in key operational areas and to provide even greater levels of service across the board.

Ongoing Flexibility, Efficiency, and Capacity UPN have recently agreed to extend its lease for its Fradley Park location. The decision has been made to provide the UPN operation with ongoing flexibility, efficiency, and capacity, as its business continues its growth trajectory. This significant announcement provides really exciting opportunities for UPN. “This important lease extension provides the platform for UPN to continue to grow our network with the comfort of the knowledge that in the right location, we definitely have the ongoing capacity for significant growth,” say David Brown. “This move gives UPN capacity, space, and flexibility that some of our competitors will be envious of.”

UPN are also planning for further expansion of its hub infrastructure with an additional 55,000 square feet extension. This will take its total to over 250,000 square feet and a nightly capacity of more than 11,000 pallets.

In January of this year UPN launched SmartPOD, its third generation multi-platform App for Live Signature Capture.

Launch of SmartPOD In January of this year UPN launched SmartPOD, its third generation multi-platform App for Live Signature Capture. UPN FOOD & DRINK BUSINESS EUROPE, APRIL 2016

were the first Pallet Network to have Live Signature Capture. The launch of SmartPOD has maintained the company’s reputation as a pallet sector IT innovator.

SmartPOD is now available for both Apple and for Android smart phones. Bespoke to UPN, SmartPOD is an industry-leading App tailored specifically to the UPN operation enables all members to now achieve 100% live signature capture. The new SmartPOD App is available for both Android and Apple smart phones. Uploaded proof of delivery can now be available within seconds of the delivery being made. All signatures obtained at the point of delivery are uploaded to UPN central servers in real-time.

“UPN now have a great team in place across all elements of our business,” adds David Brown. “Our membership is strong, growing, and unified. Our IT infrastructure and systems are second to none, 2016 really is going to be a big year for UPN!” Tremendous Growth United Pallet Network has enjoyed tremendous growth since entering the UK market place in 2001 and now has a nationwide UK network of over ninety members.

The UPN network delivers a seamless delivery and collection service across the UK and Europe. UPN has evolved over more than a decade to provide truly first class delivery for palletised freight. UPN services are underpinned by the most advanced IT systems including the Pallet Network sectors first successful real-time signature capture system.

For further information visit www.u-pn.co.uk. J

The UPN network delivers a seamless delivery and collection service across the UK and Europe.

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I PROCESSING & PACKAGING

PPMA Total 2016 Returns For Allnew September Line Up – 27-29 September 2016, NEC, Birmingham howcasing the UK’s latest innovations in processing and packaging machinery, materials, containers and packaging design, the PPMA Total Show 2016 is set to return to the Birmingham NEC this September for the first time in its history, moving from its usual summer slot – with over 300 exhibitors already signed up to exhibit at the 2016 event.

Run over three days from 27-29 September 2016, the PPMA Total Show 2016 will be the first under the sole ownership of the PPMA for over a decade. This follows the success of the PPMA Show 2015, which saw

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over 1,000 leading packaging and processing machinery manufacturers represented at the NEC where more than 7,500 visitors descended to see the latest technology innovations and discuss new business opportunities.

Incorporating PPMA, Pakex and Interphex Expanding on the success achieved at the PPMA Show 2015, the Total 2016 exhibition will open its doors to a wide range of materials, containers and packaging design companies as well as playing host to companies specialising in food manufacturing equipment and engineering solutions.

Incorporating PPMA, Pakex and Interphex, the show aims to provide businesses across the packaging design and food sectors with an unrivalled opportunity to reach the right decision makers and showcase precisely how their solutions can address a number of particular packaging and processing challenges.

Speaking about the 2015 exhibition 38

ahead of its return to the PPMA Total Show 2016, Andrew Yates, Sales Director for Endoline, comments: “The PPMA Show 2015 was an extremely busy show – one of the busiest in years.

Not all visitors are UK based creating more export links for British businesses, which is good. There was a good quality of visitors and a chance to deal with existing customers too. It’s a great way to promote the company and meet new people and decision makers.”

Bigger and Better With returning exhibitors, including Bosch Packaging Technology, Schubert, Reiser and Festo, already confirmed to join the line-up, organisers are confident that the 2016 show will be bigger and better than ever before. Speaking about its return, Grant Jamieson, Chairman, PPMA Group of

FOOD & DRINK BUSINESS EUROPE, APRIL 2016

Associations, says: “The PPMA Total Show brings together buyers and sellers at one of the most visually dynamic exhibitions of the latest processing and packaging machinery, materials, industrial automation and vision innovations. What’s more as a trade association we have been able to keep stand space pricing as competitive as possible, offering the very best value to members and non-members alike. Attended by thousands of quality buyers and industry experts, this event is not to be missed.”

In addition to an exciting line-up of seminar speakers and show features, which will be confirmed in the coming months, exhibitors and visitors to the PPMA Total Show 2016 can discover more about PPMA BEST (Business Education Skills and Training).

The charity, established by the PPMA Group

in 2014, encourages young people to enter and develop a career in engineering within the processing packaging, robotics, automation and industrial vision supply industries through education, training and support.

New PPMA Group CEO, Andrew Mint, who joined the association on the 1st February 2016, says: “I am delighted to join the PPMA Group ahead of The PPMA Total Show 2016. The show is a great opportunity for businesses to get their brand, products and equipment in front of a high profile audience and celebrate the innovation that the industry has to offer.”

For more information on the PPMA Total Show 2016, or for details on exhibiting please visit www.ppmatotalshow.co.uk, call +44 (0) 20 8773 8111 or email totalshow@ppma.co.uk. J

I FOOD SAFETY & CERTIFICATION

3M – Optimising Food Safety, Quality and Productivity M applies science in collaborative ways 3 to improve lives daily. With $30 billion in sales, 3M’s 90,000 employees connect with customers all around the world. 3M invests about 5.6 per cent of its sales revenue in research and development and is recognised as a global innovator1, producing more than 3000 patents each year.

3M’s 8,500 scientists around the globe apply science in powerful ways, developing ingenious solutions which improve daily life for millions of people. This is encapsulated in the company’s brand identity, 3M Science. Applied to Life™.

Science is at the heart of everything 3M does, including application of clever technologies which enable food manufacturers to optimise product safety, quality and productivity.

3M’s Food Safety business offers a comprehensive range of food safety solutions:

rapid hygiene management and allergen control; indicator testing, advanced pathogen testing; sample handling; end product screening; and supply chain product temperature monitoring.

FOOD & DRINK BUSINESS EUROPE, APRIL 2016

With today’s increasingly stringent food quality standards, both laboratory testing and hygiene monitoring need to be reliable and consistently accurate for consumer and brand protection.

As a science-based company, 3M is constantly innovating, but recognises that ‘science is just science’ until it’s applied to making a difference to people’s lives. That’s what 3M’s Food Safety team has been doing for over thirty years - keeping consumers safe, improving lab and manufacturing efficiencies for customers and providing them with the highest standards of technical support.

More information about our food safety products can be found at www.3M.com/foodsafey.

References - 1) Thomson Reuters 2015 Top 100 Global Innovators. www.stateofinnovation.com. J

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I FOOD SAFETY & CERTIFICATION

Certification Allows European Companies to More Easily Adopt the BAX® System X5 For Pathogen Detection FNOR Certification has extended its A validation of the DuPont™ BAX® System method to include the latest BAX® System X5 PCR assays for Salmonella(QUA 18/03-11/02) and E. coli O157:H7 (QUA 18/04-03/08). These validation extensions apply to the detection of Salmonella in all human and animal food products and production environments, and the detection of E. coli O157:H7 in raw meats, raw milk, fruits and vegetables.

“AFNOR Certification is particularly important to the European food industry, where validation according to ISO standards is a requirement before an alternative method can be adopted by food companies or contract testing laboratories,” says Hugo Gonzalez, EMEA sales leader for Diagnostics, DuPont Nutrition & Health.

“Validation of the BAX® System X5 by

AFNOR Certification allows customers to use these assays to quickly and reliably detect Salmonella and E. coli O157:H7 in their products with certainty.”

The DuPont™ BAX® System X5 is an automated, PCR-based detection method that helps food companies, service laboratories and government agencies detect pathogens in raw ingredients, finished prod-

ucts and processing environments. The BAX® System X5 is designed to offer fast, accurate and easy-to-use pathogen detection that customers expect from the DuPont™ BAX® System, but in a smaller, lightweight construction to provide greater testing flexibility. BAX® System X5 PCR assays also are available for detecting Listeria species and L. Monocytogenes and have been certified by the AOAC Research Institute (AOAC-RI) as an accurate and reliable method for detection of these organisms in food and environmental samples.

AFNOR Certification is a European independent validation that analyzes alternative detection methods for the food industry based on the EN ISO 16140 standard. For complete details of BAX® System validations by AFNOR Certification, visit http://nf-validation.afnor.org/en/. J

Egemin Automation Delivers Automated Deep-freeze Warehouse For Agristo has built an automated deep-freeze warehouse for Belgian Egemin producer of frozen French fries Agristo on its Belgian produc-

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tion site of Nazareth. The investment needs to support Agristo’s projected growth. The new high-bay warehouse is 44 metres high and includes eight AS/RS stacker cranes for storage and retrieval.

With its 15 storage levels it will provide space for 24,000 pallets or 17,000 tons of frozen fries. Egemin already did a similar project for Agristo in Tilburg, the Netherlands, in 2012. The deep-freeze warehouse is built next to the existing production facility.

Egemin was responsible for the clad rack construction of the warehouse and the concept design and integration of the automated material handling installation. The installation includes 8 automated pallet cranes for storage and retrieval of the pallets in the warehouse and an extensive inbound and outbound conveyor system with pallet lifts to control all logistics movements to and from the warehouse. Egemin also delivered the controls software for all equipment and the higher-level warehouse management software.

Thanks to the new warehouse, Agristo will be able to reduce its supply chain costs, increase its storage capacity and improve flexibility towards its customers. J

FOOD & DRINK BUSINESS EUROPE, APRIL 2016

I FROZEN FOODS

€15 Million Expansion at Agristo Agristo, the Flemish family-owned company specialising in the production of frozen and pre-fried French fries, is expanding operations at its site at Nazareth in Belgium with the construction of a new deep freeze warehouse.

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eadquartered at Harelbeke in Belgium with additional production plants at Nazareth and at Tilburg in the Netherlands, Agristo is primarily a private label producer but also sells under its own Agristo, Maesto, International and Mondy brands. The company’s products are found in over 80 countries with France and the UK being its main export markets.

Agristo has invested heavily in expanding its production capacity since being established in 1987. Initially producing 20,000 tons of finished products, the company has steadily expanded annual capacity to a current level of 400,000 tons. €15 Million Investment Agristo’s latest expansion project entails the construction of a new deep freeze warehouse at its production site at Nazareth.

Involving investment of Eur15 million, the new facility will handle the automated storage of 24,500 euro pallets, or almost 17,500 tonnes of frozen potato products at temperatures of -25 C. “This 15 million euro investment is part of the continuing growth of Agristo and it is the first step in expanding production at the production site in Nazareth in East Flanders,” says Carmen Wallays, procurement and logistics director at Agristo.

A feature of the new facility is the installation of eight automated stacker cranes in the high-bay warehouse. Egemin, the specialist in automated material handling solutions, installed the 23tonne cranes in the eight crane aisles of the warehouse, which has 15 storage levels.

Fast Dispatch The new warehouse will be able to process 360 pallet movements per hour. “Since Agristo produces seven days a week and has a logistics department that operates 16 hours a day, five days a week, large buffers must be processed quickly,” explains Carmen

Wallays. Fast dispatch is also important, so that trucks can be loaded quickly with no time lost.

The clad rack structure of the new deepfreeze warehouse is specifically designed to be energy efficient. All installed cranes are equipped with an internal energy recovery system so the energy released during lowering and braking of the cranes is recovered and used for lifting and driving movements. J

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I FROZEN FOODS

McCain Foods Expands In Europe McCain Foods, the world’s largest manufacturer of frozen potato products, has further expanded its presence in Europe and broadened its product portfolio by taking a majority stake in Van Geloven, a Netherlands-based frozen food company. ased at Tilburg, Van Geloven supplies a full range of frozen convenience snacks and foods across a diverse family of brands, including the iconic Mora brand – the most popular snacks brand in the Benelux known as ‘the snack inventors’ - the artisanal ragout brand ‘the Bourgondier’, satay specialist Hebro, food service specialty brands Ad van Geloven, van Lieshout & Welten as well as private label contracts with major retail and food service customers.

Van Geloven has led the market by supporting its clients both in the retail and the out-of-home segments with high quality products, creating innovative new snacks targeting different consumer preferences and preparation methods. Mora has exhibited 34% growth since 2010 in retail, driven by successful innovations in appetizers and oven products. Van Geloven generated sales of Eur197 million in 2015.

chief executive of Van Geloven.

The Van Geloven head continues: “We are very excited to partner with McCain, whose global scale and expertise in frozen food will not only help further strengthen our position in the Benelux region but will also accelerate our growth internationally as we continue to develop our European customer base. With the backing of McCain and TowerBrook we will continue to grow our business substantially through ongoing product innovation and market expansion.”

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McCain Foods is the world’s largest manufacturer of frozen potato products.

McCain Foods purchased its majority stake for an undisclosed sum from TowerBrook Capital Partners, the private equity group. TowerBrook Capital Partners, together with management, acquired Van Geloven in March 2015.

TowerBrook, which has a strong track record of significantly developing portfolio companies during its period of ownership, will remain a shareholder in Van Geloven and continue to support its expansion plans under McCain Foods ownership. The deal is in line with McCain Foods’ ambition of

Dirk van de Put, chief executive of McCain Foods.

creating a leading frozen snacks company in Europe.

European Business Headquartered in Villeneuve d’Ascq in France, McCain Foods’ operations in Continental Europe cover 50 countries, incorporate eight factories and employ more than 2,700 people. Of Course, the business is part of Canada-based McCain Foods, a well established global leader in frozen foods. The family owned company operates 41 production facilities on six continents and its products are used in restaurants and sold at retail stores in over 160 countries around the world. In addition to frozen French fries, McCain Foods also produces a diverse range of frozen products, including appetizers, oven meals and desserts. McCain Foods generates annual sales in excess of C$6 billion (Eur4.4 billion).

“Whilst Van Geloven will operate as a stand-alone company within the McCain Group, this acquisition truly complements our strategy for growth within our European markets,” says Dirk van de Put, chief executive of McCain Foods. “Van Geloven’s market leading brands and products offer us a fantastic opportunity to strengthen our overall appetizer and snack food market presence within the region.”

Platform For Growth “We have worked very hard in the last few years to strengthen our position within our home markets, while also building the platform for future growth within and outside the Benelux,” points out Peter Doodeman, FOOD & DRINK BUSINESS EUROPE, APRIL 2016

Development Strategy McCain Foods’ strategy in Europe is to stimulate growth through innovation, quality and service, and by taking advantage of its position as market leader to retain its competitive edge. Continual investment in product innovation and maintaining an efficient and sustainable field to fork supply chain is central to helping McCain Foods to consolidate its leadership positions within a challenging frozen potato products market-place.

McCain Foods entered the European market initially with imports to the UK in 1965, before building its first production facility at Scarborough in 1968. Indeed, Britain was the group’s first major overseas market and this was used as a foundation for further expansion into continental Europe throughout the 1970s and 1980s.

Operating five factories in England and a seed potato business at Montrose in Scotland, McCain Foods GB is the leader in the UK retail and food service sectors in frozen potato products such as French fries,

McCain Foods recently launched a new range of fries designed to appeal specifically to adults McCain Spicy Peri-Peri Fries and McCain Steakhouse Ridge Cut Fries.

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WOLVERINE PROCTOR

The leader in Sanitary Food Processing Technology

McCain Foods has launched frozen mashed potato, which can be heated up in the microwave in three minutes.

potato specialties, and appetisers. McCain Foods GB generated pre-tax profits of £54.7 million on turnover of £444.8 million for the year ended June 30th 2014.

Continuous Innovation Continuous innovation enables McCain Foods to deliver both variety and quality to consumers via its retail and food service customers. The company invests continually in new technology in order to meet customer demand for more varied products while minimising manufacturing costs.

For example, in the UK, McCain Foods recently launched a new range of fries designed to appeal specifically to adults McCain Spicy Peri-Peri Fries and McCain Steakhouse Ridge Cut Fries. Another new addition to the McCain Foods product portfolio is frozen mashed potato, which can be heated up in the microwave in three minutes.

Acquisitions McCain Foods supports its organic growth in Europe with strategic acquisitions such

as the purchase of a majority stake in Van Geloven. Another recent deal was the acquisition of the potato division of Pinguin Lutosa, which had an enterprise value of Eur225 million, in 2013.

However, to comply with European competition laws, the Lutosa retail brand in Europe has been licensed to a third party.

Earlier in 2012, McCain Foods strengthened its core potato business while broadening its product range by acquiring Netherlands-based CelaVita, a subsidiary of Bieze Food Group, owned by the German Wernsing Group.

Sustainable Business Model In line with its corporate social responsibility strategy, McCain Foods invests significantly in reducing its environmental impact and carbon footprint while also boosting productivity. McCain Foods is determined to reduce its environmental impact and develop a sustainable business model, encompassing a vertically integrated farm to fork approach. This covers all aspects of the group’s business from the way it prepares food products to the way it works with farmers to its relationships with customers.

For instance, in the UK, McCain Foods operates a potato business in Montrose, Scotland, where it grows seed potatoes. To ensure the best quality and taste, the company uses 12 different varieties from over 50 specialist seed growers in the North and East of Scotland. Indeed, McCain Foods is the UK’s largest purchaser of British potatoes, buying approximately 15% of the annual crop. The world’s largest French fries producer has fostered close links with over 300 British potato growers from every part of the country, to ensure quality even further back in the supply chain.

Tackling Food Waste McCain Foods is also utilising its farm to fork business model to help tackle the global problem of food waste throughout the food service value chain. It has joined the International Food Waste Coalition, along with Ardo, PepsiCo, SCA, Sodexo, Unilever Food Solutions and WWF, to tackle this issue, starting in Europe.

The ultimate objective of the founding members of the International Food Waste Coalition is to inspire other companies and organisations to adopt comprehensive food waste reduction programs. Currently more than 30% of all the food that is produced in the world is left uneaten, while more than 800 million people suffer from hunger and malnutrition.

McCain Foods is the world’s largest manufacturer of frozen French fries and a global leader in frozen foods.

“Food waste is a serious issue and all of the actors of the value chain, from the growers to the final consumers, need to reflect on new opportunities for partnership and co-creation,” points out Jean Bernou, chief executive of McCain Foods Continental Europe. “Responsible food companies need to take a farm to fork approach to food production and actively seek to reduce waste at every stage of the supply chain.” J

CPM Wolverine Proctor – The Processing Machinery Specialist PM Wolverine Proctor has been supplying processing machin- this system is PLC-controlled and can be programmed to feed conC ery to the food industry since early last century and continues trolled amounts of oil directly on to the parts of the chain that need to do so, on a global basis. CPM Wolverine Proctor’s customers are it most, at specific times, thus saving large amounts of lubricant 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 unexpected 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.

CPM Wolverine Proctor is currently working on a patented automatic chain lubrication system, which can be applied to any dryer –

and extending the operating life of the chains. J

FOOD & DRINK BUSINESS EUROPE, APRIL 2016

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I POWDER HANDLING

Eilersen – Hygienic Load Cells and Innovative Weighing Solutions stablished in 1969, the Danish engineerE ing company Eilersen Electric A/S specializes in supplying industrial weighing solutions to food and pharmaceutical customers worldwide based on a broad range of high-quality, robust digital load cells. The patented digital load cell technology features a number of advantages compared to other technologies used in load cells for industrial weighing. The innovative weighing solutions from Eilersen have made a significant impact on the industry with installations in more than 85 countries worldwide.

The weighing solutions are based on the robust Eilersen load cells which are high quality products manufactured in stainless steel and hermetically sealed to IP68 by laser welding. The Eilersen load cells have been designed for hygienic installations and feature high specifications, outstanding reliability, simple mechanical and electrical installation for minimal maintenance in environments requiring daily cleaning.

Eilersen digital load cells are based on a capacitive measurement principle with a non-contacting robust PROFINET weighing ceramic sensor. module.

Because the load cells contain no moving parts and the ceramic sensor is not in contact with the load cell body, the Eilersen load cells tolerate very high overloads, sideloads and torsion.

Innovative Load Cells

The patented Eilersen load cells are very robust (tolerance of up to 1000% overload and sideload) and are designed for simple and hygienic installation.

The load cells are installed without the use of often expensive and complicated mounting kits, eliminating bacteria traps to ensure the highest hygiene standards. This also eliminates the need for maintenance, which

conveyer belts and graders in food processing environments.

The most common applications include production lines for processing of meat, poultry, fish and vegetables, where the robustness, high accuracy and no maintenance of the Eilersen technology is highly rated by users. Furthermore, Eilersen load cells are suitable for installation at freezing temperatures below -40°C. OEM Solutions Eilersen Weighing Indicator.

in turn reduces the total cost of ownership.

All Eilersen digital load cells are supplied pre-calibrated to very high accuracies, thereby reducing commissioning costs.

Furthermore, the load cells require no junction box and the calibration is not dependent on the cable length which may be up to 100 meters long, so the installation is true ‘plug and play’.

Eilersen load cells are available with both digital PROFINET, Profibus DP, EtherNet IP, DeviceNet, Modbus ASCII/RTU, and RS485 interface, or analog 4-20 mA output, and can be supplied in OIML and ATEX certified versions.

Industrial Weighing Solutions

Eilersen also offers an extensive range of innovative weighing solutions and components for industrial weighing. These include weighing indicators with LED and LCD displays, OEM weighing cards, modular weighing modules with interface to PLC and PCs, weighing application software, and customized scales in stainless steel.

Eilersen has vast experience in weighing solutions for tank installations, vessels and silos with installations at many of the leading food processing companies worldwide. The innovative company also supplies weighing components for dynamic weighing such as dosing, filling, combination weighHygienic digital load cell. ers, checkweighers, FOOD & DRINK BUSINESS EUROPE, APRIL 2016

Eilersen is constantly developing new innovative OEM solutions in close cooperation with machine builders worldwide.

Often these solutions are based on a combination of customized hardware and firmware optimized for the specific application. The solution can be supplied with direct interface to factory automation systems via e.g. PROFINET, Profibus DP or EtherNet IP fieldbus interface.

One example is a newly developed OEM weighing card for up to 8 digital load cells developed for fast and accurate dynamic weighing. The weighing card features serial RS485 interface, EtherNet and EtherCAT interface.

Eilersen has a long track record through more than 40 years of supplying leading weighing solutions worldwide across all sectors, and its dedication to innovation, quality, and service has led to a very high level of customer loyalty.

For further information on the innovative and hygienic weighing solutions, please visit www.eilersen.com or meet Eilersen at Powtech 2016 in Hall 1, stand 1-114 or at IFFA in Hall 11, stand D25. J

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I POWDER HANDLING

Newly Designed Magnetic Separator Based on EHEDG Guidelines he Hydrohansu-type rotating cleanflow T magnet recently introduced by Goudsmit Magnetic Systems BV of Waalre (NL) was developed in collaboration with producers of top-tier food products. The driving force was a pressing need for removal of very fine iron (Fe), AISI 304 and 316L particles in the dairy industry, for products such as baby food, yet it is also suitable for use in the sugar and lactose industry.

direct contact with the product. Tests have shown that in addition to separating Fe (99%) a high percentage of the AISI 304 and 316L particles are also separated.

Cleaning

The semi-automatic cleaning process can be performed during a production stop.

After the rotor is released and pulled out manually, compressed air internally shifts the magnet packs to the cleaning position.

This provides a quick, easy and safe cleaning method in which the metal particles are carried away. Moreover, the Hydrohansu – in comparison to previous versions of rotating magnets– no longer has any delicate loose parts. This results in a high level of efficiency and user-friendliness. Sensors ensure that all these steps can only be performed in the correct order.

Magnetic separators remove very fine Fe as well as AISI 304 and AISI 316L particles from powders and liquids in the food industry.

Cleaning The newly designed, completely hygienic

Magnetic Filter For Liquids

Hydrohansu magnet was made in collaboration

The EHEDG magnetic filter is composed of Neoflux® (Nd-Fe-B) magnets that provide an efficient separation of iron particles from 5µm, weak magnetic particles and even iron dust from liquids like chocolate.

It generates a magnetic field of a maximum of 10,700 Gauss (+/-5%) on the. This has been specially developed for the food & confectionery industry The entire system is made of stainless steel 316, smoothly finished (Ra 0.8µm ), and complies with the EHEDG standard; the highest standard in the field of food safety.

with food product manufacturers in accordance with EHEDG guidelines and separates Fe, AISI 304 and AISI 316L contaminants from products such as dairy products and baby food.

Rotating magnets prevent the accumulation of fatty powders on the magnetic bars and guarantee a high level of separation.

The new magnet system is hygienically designed in accordance with the EHEDG guidelines and can be cleaned semi-automatically.

Hygienic Design

The single-piece, hydroformed housing is made entirely of grade 316 stainless steel and therefore has no dead ends, sharp corners or welded seams, which prevents bacterial growth. The complete system has a high quality surface finish (Ra 0.6 µm).

The magnet rotor has pneumatically operated magnet bars, is mounted in the door and rotates on a bearing. To prevent product from entering the space between the rotor and the housing, it is fitted with a removable labyrinth air lock. A continuous, clean stream of air (+0.2 bar) feeds that air lock and blows from the inside towards the product chute. The use of rotating pneumatic magnet bars ensures that the powerful magnetic value (11,500 gauss) is in 48

The

magnet filter according to EHEDG

specifications was recently developed by Goudsmit Magnetics and removes very fine iron particles from chocolate, fruit juice, pastes or powders and complies with the highest standards of food safety.

FOOD & DRINK BUSINESS EUROPE, APRIL 2016

The removal of the captured metal particles done in 3 ways: manually, whereby the operator can easily pull apart the magnetic bars covered by an extractor; manually + pneumatically, whereby the cleaning is done automatically and, according to the most recent method, pneumatically + CIP (Cleaning In Place), whereby in addition to cleaning also the rinsing of the magnetic bars is done automatically.

EHEDG

Recently, Goudsmit has become the first magnet supplier to be admitted to the European Hygienic Engineering & Design Group. The EHEDG is a consortium of installation suppliers, companies in the food industry, research laboratories and national public health bodies that aim at the highest standards of food safety.

EHEDG sets standards for avoiding contamination or the growth of damaging micro-organisms, cleaning and decontamination capacity, and the use of materials and surface finish. It tests the product designs in the field of cleaning, sterilization and bacteriological impermeability. Only those firms that comply with the standards set are eligible for the EHEDG certificate.

For more information contact Goudsmit Magnetic Systems on Tel 040 2213283, Email pe@goudsmit.eu or visit www. goudsmitmagnetis.com. J

I POWDER HANDLING

POWTECH 2016 – Extensive Supporting Programme Offers Ready-to-go Expertise he world of mechanical processing technology will gather at POWTECH 2016 T from 19 to 21 April. About 900 exhibitors will present the latest technologies for processing, analysing and handling powder and bulk solids in Nuremberg.

Visitors will also have free access to an extensive supporting programme, providing them with first-hand access to the latest process expertise. The VDMA (German Engineering Association) will present best practices in eco-efficiency through its Blue Competence Initiative. Trade visitors will encounter concentrated university research and new talents at the Generation Future special area. The new POWTECH app will help to find personal highlights in the programme.

Three trade forums with non-stop presentations in the exhibition halls reflect the wide range of sectors and topics at POWTECH. The special areas organised by associations and high-calibre partners at the exhibition also invite visitors to linger, network and exchange knowledge.

The VDMA: Innovation For Greater Sustainability

The VDMA, represented at POWTECH by its Drying Technology and Air Pollution Control associations, will highlight its Blue Competence sustainability initiative at the exhibition. Visitors to the VDMA stand will find exhibits and success stories showing how process technology helps to foster more sustainable processes that conserve resources.

The VDMA and participating companies span the entire exhibition with the Blue Competence network: a special exhibition

guide lists all POWTECH exhibitors supporting the initiative and helps to find sustainable solutions.

will be able to experience up close how quickly gas or dust explosions can occur during production and how they can be prevented during moderated live explosions in the outdoor area of the exhibition.

Expert Knowledge to Take Home

Summit Meeting For Process Experts

The three presentation areas in the POWTEC exhibition halls will offer nonstop presentations, many of them in English.

The 30-minute slots and panel discussions will address current topics in the industry in a useful, compact format.

The Pharma Manufacturing Excellence expert forum (hall 3A), organised by APV (the International Association for Pharmaceutical Technology), will focus on trends and challenges in pharmaceutical manufacturing.

The POWTECH Expert Forum (hall 2) will provide non-stop presentations on process automation, particle analysis and measurement technology. This is also where the new POWTECH Awards will be presented in three categories: technology, energy excellence and service.

In the POWTECH Technology Forum (hall 3), visitors will receive practical tips about handling bulk solids in the food, chemicals and pharmaceutical industries.

For the first time, POWTECH visitors can use an app to find out information and the times of all presentations and compile their own personal schedule using their smart phone. If desired, the POWTECH App can remind visitors of selected events at the exhibition and help visitors to find their way around thanks to an interactive hall plan. “In 2016 we are raising the visibility of POWTECH’s high-calibre programme.

Nowhere else do so many experts from the bulky solids and process industry meet in one location,” notes Beate Fischer, Project Manager for this event at NürnbergMesse.

“Every trade visitor will go home with a wealth of new knowledge – and can start afresh with very tangible solutions and ideas after visiting the exhibition.” Visitors can also find details of all presentations and speakers in the POWTECH programme by visiting: www.powtech.de/programme.

A Bridge to Research and New Talents

Alongside POWTECH, the Nuremberg Exhibition Centre will also be welcoming PARTEC, the international congress for particle technology. PARTEC brings together leading particle engineers and scientists to share knowledge about the latest developments in particle formation, agglomeration and coating processes as well as measuring techniques and various industrial applications for particles. J

A total of 15 universities, institutes and institutions will present their research projects in the new special area Generation Future at POWTECH and will provide information about partnerships. Here companies will meet the talents of tomorrow and can recruit new professionals thanks to a constantly updated job board. The DSIV (the German Powder and Bulk Association) invites visitors to network in a relaxed, student atmosphere every day at 16:30.

The Latest Developments in Particle Technology

Experience Explosion Protection Live

The international IND EX Safety Congress will be held at POWTECH on 20 April 2016. Explosion protection experts from all continents will be on hand to explain different legal requirements by region and the latest approaches for greater explosion protection.

On all three days of the exhibition, visitors FOOD & DRINK BUSINESS EUROPE, APRIL 2016

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I MARKET FOCUS

France is the World’s Most Innovative Retail Pizza Market France has overtaken the US as the most innovative pizza market in the world, in terms of retail pizza launch activity, with the UK, Spain, Germany and Italy ranked third to sixth respectively.

M

intel research reveals that France was responsible for the largest slice of pizza product innovation in 2015, accounting for 11% of all new pizza launches, up from 9% in 2011. Meanwhile, the global share of newly introduced pizza products in the US has almost halved over the same period - the US accounted for one in ten (10%) new pizza launches globally in 2015, compared to one in five (19%) in 2011.

Furthermore, whilst over one in four (28%) pizzas launched in 2011 came from North America, the drop in product innovation in this region means that overall North America accounted for just one in six (15%) pizza launches in 2015. Indeed, Europe dominated the sector in 2015 accounting for nearly two thirds (65%) of launch activity, up from 58% in 2011.

Whilst France held the highest proportion of launches (11%), this was followed by the US (10%), the UK (10%), Spain (8%) and Germany (6%).

“It is unlikely that the US retail pizza sector will look back on 2015 with much fondness. With the economy looking brighter, consumers have been trading up and out of retail pizza, to more expensive delivery and foodservice options. As a result of this, and the rapid growth of fast casual pizza chains, frozen pizza makers have been under huge pressure in the region,” explains Alex Beckett, Global Food and Drink Analyst at Mintel.

Premiumisation “In Europe, however, retail pizza brands have been investing in premiumisation to help compete with the threat from the outof-home channel, therefore boosting launch activity,” he adds.

Whilst the US has been battling with consumers upgrading their slices for more foodservice options, there seems to be a growing opportunity in the premium tier of the retail market. Mintel research shows that nearly three in five (58%) US pizza FOOD & DRINK BUSINESS EUROPE, APRIL 2016

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With gluten-free having become something of a lifestyle choice in Western countries, especially among younger generations, it is no surprise that a growing base of consumers are buying into gluten-free pizza.

eaters claim that they would buy more frozen pizza if it had more premium or gourmet ingredients, rising to 72% of 2534 year olds. What’s more, over half (55%) of US consumers agree that they’d buy more frozen pizza if it wasn’t so processed.

Fastest Growing Market Europe might hold the largest number of pizza launches, but it is the Asia-Pacific region which is the fastest growing market for pizza innovation. The Asia-Pacific region accounted for 11% of innovation in 2015, almost doubling since 2011 when this number stood at 6%. Furthermore, Mintel research reveals that the increased number of launches in the Asia-Pacific region in 2015 directly corresponds with a leap in microwaveable pizza launches. In 2013, three in ten (30%) new pizza launches in Asia-Pacific featured a microwaveable

In Europe, retail pizza brands have been investing in premiumisation to help compete with the threat from the out-of-home channel, therefore boosting launch activity.

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claim, before soaring to 58% in 2015.

“Increasing urbanization in developing markets is driving ownership of microwaves ovens – and with it the consumption of microwavable pizza. It is noticeable that many of the retail pizzas which have launched in Asia-Pacific in 2015 have sought to appeal to the specific tastes and needs of the country’s consumers. As such, a number of Asian-based manufacturers offer toppings with a local flavour twist as part of their ranges, as demonstrated by a number of tom yum-flavoured sauces in Singaporean pizza launches in 2015, and roti bases emerging in Thailand,” points out Alex Beckett.

Gluten-free Pizza Mintel research finds that following consumer demand, the number of pizzas launched globally with a gluten-free claim soared by 58% between 2012 and 2015. What is more, the number of pizza launches containing rice flour as an alternative ingredient to wheat increased from 78% to 90% between 2014 and 2015.

The rise in gluten-free pizza launches comes as a result of the growing demand for wheat alternatives, as one third (32%) of French, 28% of Polish and 22% of German consumers say they would like to see a wider variety of gluten-free pizza. In Italy this number increases to a staggering 44%, while over half (51%) of Spanish consumers say they want more gluten-free pizza options.

Yet while interest in gluten-free pizza varieties appears to have increased, just 2% of French, 3% of German, 3% of Polish, 5% of FOOD & DRINK BUSINESS EUROPE, APRIL 2016

Spanish and 8% of Italian consumers actually bought gluten-free pizza in 2015.

Alex Beckett comments: “With glutenfree having become something of a lifestyle choice in Western countries, especially among younger generations, it is no surprise that a growing base of consumers are buying into gluten-free pizza. However, as pizza is an inherently indulgent food, manufacturers need to magnify the quality appeal of their wheat-free pizzas and convince consumers that the taste and texture of wheat-free alternatives is akin to regular pizza.”

Lactose-free Mintel research indicates that innovation in lactose-free claims could be the next step for pizza launches. Almost half (47%) of consumers in Spain say they would like to see a wider variety of dairy-free pizzas, followed by 39% of consumers in Italy, 31% in Poland, 30% in France and 20% in Germany. J

I PIZZA TOPPINGS

Spicy Layers of Flavour Trending For 2016 he key ingredients and tastes exciting pizza T consumers in 2016 are likely to revolve around spice and layers of flavour, according to Europe's leading supplier of cooked and fermented ready-to-eat meat toppings.

Dawn Farms sees continuing demand from consumers for rustic, natural and authentic products in the year ahead, with gourmet Italian, Americana and ethnic fusion at the heart of key pizza trends. The company has also noted signs of a modest trading-up to premium in line with higher expectations of convenience, fast food and home delivery.

Menu Excitement “We recognise the importance of menu excitement to compete for share of the consumer spend” said Conor Cahill who leads the Innovation team at Dawn Farms.

“Today’s consumer has higher expectations - it’s no longer about offering the lowest price. Consumers want consistent high quality, great taste and good food fast and

to meet higher sustainability expectations all our products are free from MSG, hydrogenated fats and made with 100% natural colourings.

With menu excitement high on everyone’s agenda, Dawn Farms new products include jalapeno pepperoni, a taco mince sauce and slow cooked pulled pork and beef toppings,” says Conor. Pepperoni is still the most popular pizza topping and according to the Technomic 2015 report was among the Top 10 pizza toppings in growth last year, despite being so well established on pizza menus. "This is due to it being spicy and staying relevant to today's consumer tastes,” said Conor. “Chicken toppings are another topping on the increase but they must deliver on flavour, for example chargrilled or roast chicken rather than simply plain. We have combined all the best-selling toppings (mini pepperoni, chicken,

beef and ham) in our trademark Meat Feast product, providing a simple solution for those stores with limited facilities which can now offer this popular menu item."

More Premium, Gourmet Toppings "Last year was the year in which Italian-style pizzas fought back against the growing monopoly of American pizzas with more gourmet artisan pizzas featuring in retail premium ranges," says Conor. He adds that with salami featuring on 25% more pizzas in 2015 (Source: Q3 2014-15, Technomic), this reflected a general trend towards more premium, gourmet toppings. "Other meat toppings which grew last year were pork and chicken.

Pork was due to the overwhelming popularity of pulled pork, so we expect other slow cooked pulled meats such as beef and chicken to be in demand in 2016, a trend we’ve seen in salads and sandwiches, with plenty of scope to bring that extra rustic authenticity to pizzas."

With the Americana trend remaining vibrant in 2016, with huge enthusiasm still

FOOD & DRINK BUSINESS EUROPE, APRIL 2016

for products like gourmet burgers and ribs, Dawn Farms is exploring new ways of capturing the best of the USA in pizza toppings and has added Philly beef, slow cooked beef brisket and peppery pastrami as topping options from its Cooked Cuts range as they show strong signs of migrating from sandwiches to the pizza counter.

Spicy Pizza Toppings And with the Olympics and Paralympics coming up in Rio de Janeiro this summer, the company sees this as a great opportunity to

tap into families and friends coming together to take in the celebrations and the competitions. Spicy pizza toppings are ideally placed to communicate the colour and vibrancy of the Brazilian carnival atmosphere with jalapeño pepperoni, chilli beef, fajita chicken, and smoked bacon all popular and relevant.

"Consumer expectations of more complex, layered flavours certainly look set to continue this year, so the toppings and ingredients used really need to pull their weight," says Conor.

"This means maximising the taste and flavour from every single ingredient, with more marinated meats in the key ethnic cuisines like Indian, Mexican and Chinese, as well as more generic ones such as garlic-infused chicken.

We also expect to see more variety in base sauces and ‘post-cook’ drizzles, and more experimenting with ingredients that add crunch, texture and freshness, from full slice 53

crispy bacon, pepperoni chunks, pigs in blankets to chunkier vegetable and fresh herb toppings."

Meat Repertoires The increasing fragmentation of pizza top-

pings has shown that consumer meat repertoires are growing. In recent times, pork is the most noticeable, but Dawn Farms is also seeing greater demand for beef, particularly spicy beef and pulled beef and chicken. Seasonally, there have been more duck and lamb pizza toppings, an evolving trend which Dawn Farms expects to see extending not just to Christmas but all year round in coming years.

Dawn Farms has been in this business for over 30 years and prides itself on being at the forefront of trendsetting and innovation with consumer insights front and centre of all its new product development activity. "My job is to discuss insights, products and innovation strategy with our customers and, through our own expertise and experience, develop relevant, on trend products that meet theirs and

their customers' needs," says Conor.

For more information visit www.dawnfarms.ie. Dawn Farms publishes a popular weekly Top 9 for Friday trend ezine. For further information contact info@dawnfarms.ie. J

I SEASONINGS & MARINADES

95 Years of Seasonings and Marinades nbar Rothon, one of the UK’s leading seasonings and marinades U suppliers, has celebrated 95 years as a successful manufacturer and exporter and for more than seventy of those years it has been owned and run by the same family. It was established in London in 1921 and in 1948 Felix Rothon (later to be awarded an MBE) moved its headquarters to Billericay in Essex.

Over time Unbar Rothon became internationally recognised as a leader in the business of supplying high quality seasonings and

Patrick (left) and Richard Rothon against the backdrop of a charcoal drawing of Unbar Rothon pioneer Felix Rothon.

54

marinades to food manufacturers, caterers and butchers with Felix Rothon’s sons, Patrick and William, joining him on the board.

Now with two members of the next generation, Richard and Matthew, also directors, the company is leading the market sectors it serves with new seasonings and services, including the innovative Lean Blending Service.

This generates the precise blends required and delivers individual packs (anything between 100g and 25 kilos) to the customer, thus minimising the use of storage space. Operational costs, including storing, picking, weighing and blending a multiplicity of minor ingredients are also avoided.

A big attraction is the peace of mind generated by Unbar Rothon’s taking responsibility for food safety, legality and quality issues through its assessment of all raw materials used and by its worldwide early-warning problem scanning service.

“We have streamlined the process so customers no longer have to blend their own seasonings. That reduces the dangers of cross contamination and our batch packing service is a further benefit that reduces the associated risks even further,” says Richard Rothon.

Recently, the company developed and launched a new and exciting range of flavours for meatballs and stuffings, including sweet orange with tart cranberry and a savoury leek and black pepper.

Unbar Rothon celebrated the anniversary with newcomers to its workforce joining others who have given decades of service to the company – and announced plans to further expand the team to efficiently handle growing business.

Throughout its history Unbar Rothon has reacted (and often driven) change within the industry and in doing so has enhanced its sector leading position.

“The company has a good future ahead and we aim to be here for a further 95 years,” says Patrick Rothon.

Long-time customer Snowbird foods has congratulated Unbar Rothon on its longevity. Commercial and marketing director Roy Anderson comments: “The inventiveness and reliability of the Unbar Rothon service has played a welcome and significant part in the profitable running of this company and we look forward to growing with them in the future.” J

FOOD & DRINK BUSINESS EUROPE, APRIL 2016

I COCOA

Cargill Cocoa Promise Report – How Livelihoods For Cocoa Farmers and Their Communities are Improving argill has published its second report on C the Cargill Cocoa Promise, highlighting its progress towards improving the livelihoods of cocoa famers and their communities. Strengthening the Cargill Cocoa Promise, the company has introduced a monitoring and evaluation system to improve the effectiveness of its activities, enabling a more evidence-based approach to help raise the living standards of farmers and their families, as well as to address the sustainability challenges in the cocoa supply chain.

“We have advanced our way of thinking and reporting. It’s not only about reaching the farmer, we are focused on improving livelihoods of cocoa farmers and their communities. Capturing the results of our efforts achieved on the ground is key, as it helps us understand how our actions are delivering results that truly benefit farmers and communities,” says Harold Poelma, President, Cargill Cocoa & Chocolate.

Farmer organizations are the startingpoint for farmer training, farm develop-

ment and community support. In association with strong partner organizations on the ground, Cargill supports the development of professional, business-oriented farmer organizations that take responsibility for managing sustainability programs and supporting their implementation by farmers and communities. Some 181 farmer cooperatives are now enrolled in the program.

By participating in the Cargill Cocoa Promise, farmers become empowered, self-

supporting entrepreneurs who manage professional and responsible farms and generate a living income or beyond. In 2015, some 90,000 cocoa farmers attended 2,700 Farmer Field Schools. This training enables farmers to achieve maximum profitability from their cocoa farms, to optimize production by using inputs, such as crop protection and fertilizers efficiently, while reducing their impact on the environment.

Building on more than a decade of experience and lessons, a major part of the work today is focused on women’s empowerment, children’s protection and family nutrition. Because of the role women often play as care givers and food providers, the Cargill Cocoa Promise is helping to reduce poverty whilst improving family welfare and child nutrition. In 2015, more than 2,000 women successfully accessed credit to support income generating activities, which is over 50% of the total number of people who received finance through Village Saving and Loan Associations set-up with Cargill’s support. J

Renaissance For Cameroon’s Cocoa Cooperatives he Cargill Coop Academy, an adult T education managerial program aimed at cocoa farmer cooperative leaders, will now deploy in Cameroon. The training aims at helping to reduce poverty for vulnerable local communities and professionalize farmer organizations. A four year commitment providing education in partnership with Telcar to almost 900 executives from

227 farmer organizations has been made by IFC, a member of the World Bank and Cargill Cooperatives have proven to be one of the most efficient and effective means to reach cocoa farmers, reduce poverty and impact their livelihoods. Decentralized and local, they help famers bring their products to the market. Further developing and professionalizing farmer organizations is a key priority of the Cargill Cocoa Promise because they are extraordinary multipliers to promote good agricultural practices and behavioural change in rural areas.

Initiated in 2013, some 320 executives from 80 cooperatives in Côte d’Ivoire have already had access to 28 days of intensive classroom training followed by a full year of personalized on-the-ground coaching.

Building on the lessons learned and followFOOD & DRINK BUSINESS EUROPE, APRIL 2016

ing an in-depth assessment of the country specific requirements, the program is now brought into Cameroon.

More than US$1.1 million has been committed until 2020 by the partners to roll out the program. “There is an opportunity to provide the nascent cooperatives in Cameroon with the appropriate support right from the beginning. Along the performance indicators we defined, we will keep monitoring progress and report back in full transparency to ensure a measurable impact,” says Lionel Soulard, Managing director for Cargill’s cocoa and chocolate business in West Africa.

Ultimately, the aim is to reach over 50,000 farmers and train them on adapted financial literacy and cooperative management in recognition of their role as the true drivers of successful cooperatives. J 55

Givaudan Marks 10th Anniversary of TasteTrek® Citrus With Creation of Global Citrus Collection ivaudan is celebrating the 10th anniverG sary of its customer TasteTrek® Citrus programme, with an Anniversary Global Flavour Collection inspired by a decade of exploring citrus in groves around the world.

TasteTrek Citrus has brought customers and flavourists together to experience citrus in its fullest and freshest form, straight off the tree. From rare and exotic varieties, to local favourites, to the most commercially successful fruits in the world, the Anniversary Global Collection captures the diversity and cultural importance of citrus.

Ten years of TasteTrek® Citrus have played a key role in enabling Givaudan to meet customers’ needs by delivering distinctive citrus flavours with stability and sustainability at their heart, reflecting regional flavour preferences as well as developing those that surprise with exotic or unexpected characteristics.

Henning Hartnacke, Givaudan’s regional Commercial Head of EAME, says: “Our creative and technical approach to Citrus delivers unique insight for our customers – inspiring consumer preferred products around the Europe, Africa and Middle East region. By partnering with a world renowned Citrus grove in Italy we can introduce our customers to new Citrus ingredients and inspiring varietals.”

Henning Hartnacke adds: “The focus of TasteTrek® is collaborating to deliver a great customer experience. With Citrus Development Centres on every continent, we work with customers in their markets to optimise profiles and build stability and sustainability into their products.”

One of the annual grove adventures is conducted at the Oscar Tintori collection in Tuscany, Italy, home to over 300 varieties of citrus trees. The Oscar Tintori collection has hosted dozens of Givaudan customer TasteTreks® with over 70 varieties of orange, lemon and lime, and grapefruit and pummelo evaluated by participants from 11 countries. The 10th Anniversary Global Flavour Collection includes Lemon Femminello, Italy’s lemon famed for its use in Limoncello liquor.

As a result of this decade long effort, and to mark these achievements, Givaudan has curated a 10th Anniversary Global Citrus

Flavour Collection, bringing together for the first time remarkable citrus flavours developed around the globe through 10 years of TasteTrek® Citrus.

Some of the flavours in the collection include: • Lemon Femminello, (Tuscany, Italy) • Valentine Pummelo (California, US) • Sakurajima Mikan Mandarin (Japan) • Kumquat Meiwa (China) • Sanguinelli Blood Orange (Spain) • Perao Sweet Orange (Brazil). J

DuPont Nutrition & Health Identifies Six Health and Wellness Consumer Segments uPont Nutrition & Health has collectD ed data from more than 14,000 consumers in 22 countries for an insight-driven research project designed to help manufacturers develop and market products in the health and wellness area. With health and wellness as a category growing nearly twice the rate of traditional foods and beverages, this research comes at an opportune time for food and beverage manufacturers.

The DuPont Nutrition & Health research, conducted with HealthFocus® International, helps food manufacturers define market opportunities by determining the motivations, needs and behaviours of consumer groups in today’s evolving food and beverage market. In addition to demographic and geographic data, the study includes illuminating information on health concerns, brand influences, attitudes and usage, lifestyle choices, and parenting 56

style. The segmentation results in six core consumer groups – Health Helpers, Weight Strugglers, Health Wise, Taste Driven, Good Life and Just Food – divided into nutrition as primary and nutrition as secondary clusters.

“Eighty three percent of global consumers consider diet and nutrition impor-

FOOD & DRINK BUSINESS EUROPE, APRIL 2016

tant to wellbeing, which is greater than wealth or physical fitness,” says Greg Paul, PhD, MBA, global marketing director, Consumer Segments at DuPont Nutrition & Health. “We have become increasingly proactive about our health, yet well-defined and decidedly varied segments still exist.

Consumers portray diverse behavior depending on their place in the spectrum of health and wellness. The importance of learning the demands of each segment is critical to understanding what motivates food purchase behavior.”

In parallel with the newly available research, DuPont Nutrition & Health offers a unique and wide range of food ingredient solutions. The product range includes antimicrobials and antioxidants, cultures, emulsifiers, enzymes, fiber, hydrocolloids, probiotics, protein and tailored blends. J