Edrington benefits from strong demand for premium spirits
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C o n t e n t s
- 3 M ERGERS & A CQUISITIONS
- 38-45 P OULTRY
Coverage of British and international deals.
Testing times ahead for European poultry processors. Moy Park sold for $1.5 billion.
- 7 C OVER S TORY Edrington benefits from continued strong demand for premium spirits.
Faccenda Foods named ‘Manufacturer of the Year’. PAGE 3
Pierre Laubies, CEO, Jacobs Douwe Egberts.
- 15 D AIRY
Cargill invests £35 million to upgrade UK poultry business.
- 46 P ROCESSING & PACKAGING PPMA Show 2014 returns to the NEC to demonstrate opportunities for UK manufacturing prosperity.
€5.5 billion investment in EU dairy processing. Global Dairy Top 20, 2015.
R EGULARS Storage & Logistics . . . . . . . . . . . . . . . . . 11
- 20 C ONFERENCE & E XHIBITION
How to Scale Up a Food & Drink Business - Conference & Exhibition, Dublin, 16th September 2015.
Roelof Joosten, CEO, Royal FrieslandCampina.
Control & Automation . . . . . . . . . . . . . 29-31
Materials & Ingedients . . . . . . . . . . . 47 & 48 Fi Europe & Ni 2015 predicts largest gathering to date for those sourcing food and beverages ingredients. . . . . . . . . . . . . . . . . . . 47
European biscuits market to show moderate growth.
Mary Thompson, Head of Cargill’s European poultry business.
Managing Director: Colin Murphy Editor: Mike Rohan
- 24-28 B ISCUTS
€15 million investment to establish new biscuits manufacturer.
Andy Dawkins, MD, Faccenda Foods.
Bottling & Packaging. . . . . . . . . . . 17-19, 23
Energy & Environment . . . . . . . . . . . . . . . 36
Iba points out ways to the future and to success.
Processing & Manufacturing. . . . . . . 12 & 35
Quality & Safety. . . . . . . . . . . . . . . . . . . . 35
- 21-23 B AKERY, C ONFECTIONERY & S NACKS
P AGE 27
Jeff van der Eems, CEO, United Biscuits.
Group Operations Manager: Sylvia McCarthy Advertising: John Bent, Ian Stewart & Rachel Howard
Production Manager: Sylvia McCarthy
David Nuutinen, CEO, Cloetta.
Food & Drink Business Europe is published by Premier Publishing Limited, 51 Parkwest Enterprise Centre, Nangor Road, Dublin 12. Tel: + 353 1 612 0880 Fax: + 353 1 612 0881 E-Mail: firstname.lastname@example.org Website: www.fdbusiness.com Premier Publishing Limited can accept no responsibility for the accuracy of contributors’ articles or statements appearing in this magazine. Any views or opinions expressed are not necessarily those of Premier Publishing and its Directors. No responsibility for loss or distress occasioned to any person acting or refraining from acting as a result of the material in this publication can be accepted by the authors, contributors, editor and publisher. A reader should access separate advice when acting on specific editorial in this publication!
- 28 C AKES Premier Foods opens new Mr Kipling cake line.
- 33 F ROZEN F OODS
McCain Foods GB invests in innovation and sustainability.
Ian Curle, CEO, Edrington.
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Visbeen: serving Europe daily Cool, Fresh & Frozen Lamb Weston / Meijer, producer of frozen potato products and logistics-service provider Visbeen have entered into an innovative, multi-year co-operation for frozen-food distribution within Europe. This co-operation is based on partnership â€“ sustainable solutions are created by
taking a joint integrated look at transport opportunities throughout the chain and by using the latest technology. This forms the basis for strengthening the transport flows â€“ other transhippers can link in in order to make the flows even more efficient.
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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
Mondelez International and DE Master Blenders 1753 Complete Coffee Deal
Mondelïz International will continue to benefit from future growth of the coffee category.
bility of building new markets, accelerating innovation and establishing brand leadership.”
Mondelïz International and DE Master Blenders 1753 have completed the transactions to combine their respective coffee businesses, including Mondelïz International's coffee portfolio in France, to create Jacobs
Britvic Expands International Presence With £121 Million Deal
Cargill Completes Acquisition of ADM's Global Chocolate Business
UK soft drinks group Britvic has acquired Empresa Brasileira de Bebidas e Alimentos (ebba), the leading supplier of liquid concentrates and the number two supplier of ready-to-drink nectar drinks in Brazil for R$580 million (£120.8 million). The transaction provides Britvic with immediate access to the sixth largest soft drinks market and the largest concentrates market globally. Britvic intends to accelerate growth in ebba by building on the existing strong platform and route to market by investing behind the ebba brand portfolio, extending existing brands into new sub-categories and introducing Britvic brands to the Brazilian market. Ebba reported net revenue of R$437.2 million and EBITDA of R$45.0 million in its 2014 financial statements. The deal is in line with Britvic’s long-term sustainable growth strategy, a central pillar of which is to pursue international expansion by capitalising on global opportunities in the childrens, family and adult categories, where Britvic has the leading brands in its core markets. Simon Litherland, chief executive of Britvic, says: "The acquisition of ebba represents a unique opportunity to acquire a high quality business in a substantial soft drinks market, with exciting future growth potential. Ebba operates in categories where Britvic has a proven capa-
Cargill has completed the acquisition of ADM's global chocolate business for an enterprise value of $440 million. Cargill's cocoa and chocolate business now operates globally with 27 sites in 11 countries with over 3,000 employees and serves customer needs worldwide with a range of cocoa and chocolate products, tailor-made for confectionery, bakery, dairy, and other applications. Addressing the European Commission's conditional clearance, Cargill has agreed to divest ADM's industrial chocolate production facility in Mannheim, Germany. The facility is kept as a separate entity with its own interim management until transferred to a prospective buyer. Chocolate production onsite and service to customers continues normally.
Pierre Laubies, chief executive of Jacobs Douwe Egberts.
Douwe Egberts (JDE), which will be the world's leading pureplay coffee company with annual revenues of more than Eur5 billion. Upon closing, Mondelïz International received cash of approximately Eur3.8 billion and a 44% interest in the new joint venture, subject to standard post-close adjustments. Acorn Holdings, owner of DE Master Blenders 1753, holds a 56% share in JDE. Acorn Holdings is owned by an investor group led by JAB Holding Company in partnership with BDT Capital Partners, Quadrant Capital Advisors and Société Familiale d'Investissements. The new company will be based in the Netherlands and hold market leading positions in 18 countries globally as well as a strong emerging market presence. JDE will own some of the world's leading coffee brands, such as Jacobs, Tassimo, Moccona, Senseo, L'OR, Douwe Egberts, Kenco and Gevalia. Following the transactions, Mondelïz International becomes an even more focused snacking company, with approximately 85%of net revenues derived from biscuits, chocolate, gum and candy. By retaining a significant stake in JDE, however,
Simon Litherland, chief executive of Britvic.
Hain Celestial Acquires Mona Group Hain Celestial Group, the organic and natural products company with operations in North America, Europe and India, has acquired the Mona Group, a leader in plant-based foods and beverages with facilities in Germany and Austria, for an undisclosed sum. Mona offers a wide range of organic and natural products under the Joya and Happy brands, including soy, oat, rice and nut-based drinks as well as plant-based yogurts, desserts, creamers, tofu and private label products, sold to leading retailers in Europe, primarily in Austria and Germany and eastern European countries. In 2014 Mona had approximately $50 million in net sales and is expected to be accretive to Hain Celestial's earnings in
FOOD & DRINK BUSINESS EUROPE, AUGUST 2015
fiscal year 2016. With the acquisition of Mona, Hain Celestial Europe will have three facilities producing plant-based beverages, two in Germany and one in Austria, serving the European markets. Mona's Vienna office will be the base for expansion into eastern Europe.
Suntory Disposes of Cognac Business Suntory is selling Louis Royer, its French spirits business, to Terroirs Distillers, a privatelyheld fine spirits company based in France, for Eur100 million. The transaction includes the Louis Royer cognac brand, aging inventories, and facilities in France. The companies expect to complete the transaction by the end of August. Terroirs Distillers produces and sells fine spirits including Tullibardine single malt and Highland Queen Scotch whisky.
FrieslandCampina Acquires Mozzarella Business European dairy co-operative FrieslandCampina is expanding its cheese portfolio with the takeover of Belgian-based mozzarella maker Fabrelac for an undisclosed sum. Fabrelac mainly produces cow milk mozzarella, which is processed in other foods. The acquisition provides FrieslandCampina with entry to the fast growing mozzarella market. Established in Bree, Belgium, in 1993, Fabrelac extended its production facility from 6,500 to 30,000 sq m in 2012. A year later, the company launched a fully automated production system. The maximum annual production capacity is 30 million kg of mozzarella. In addition to mozzarella for use as pizza topping, amongst other things, the 3
M E E R R G G E E R R S S M company also makes salad cheese, whey ingredients and cream.
Roelof Joosten, chief executive of Royal FrieslandCampina.
MBO at Seabrook Crisps LDC, the private equity part of the Lloyds Banking Group, has backed the management buyout of English crisp brand Seabrook. Established in 1945 by Charles Brook and his son Colin Brook, Seabrook produces a range of crinkle cut, straight cut and premium handcooked lattice crisps, as well as low-calorie stick snacks, at its headquarters in Bradford, Yorkshire. The company supplies over 20 million bags of crisps each month and employs nearly 150 staff. The management buyout has been led by chief executive Jonathan Bye who has overseen the strong growth of the Seabrook brand since his appointment in 2012. The transaction will see a full exit by owner Ken Brook-Chrispin. The investment from LDC, which has taken a majority equity stake in the business, will support Seabrook as it looks to invest in its manufacturing infrastructure, new product development and progress international sales opportunities. In addition, the team has identified a number of potential acquisition targets which will further enhance the customer offering.
Cloetta Acquires Lonka Swedish confectionery group Cloetta has agreed to acquire 4
A C C Q Q U U II S S II T T II O O N N S S A
Locawo (Lonka), a Dutch company producing and selling fudge, nougat and chocolate, for SEK295 million (Eur31.5 million) in cash. The acquisition will significantly strengthen Cloetta’s position in the Netherlands. Lonka’s sales amounted to about SEK300 million in 2014 with the Netherlands being the core market, accounting for about half of the sales. The Nordic countries and the UK are other important markets, especially within Pick & Mix. “Lonka is a well-known brand that will significantly strengthen Cloetta’s positon in the Netherlands. The acquisition will diversify Cloetta’s product range into new technologies and categories including the Dutch chocolate market. It will also create cost synergies, thereby over time supporting Cloetta’s EBITmargin target of 14 per cent. In addition, there are long term revenue synergies that can be realized,” says David Nuutinen, president and chief executive of Cloetta.
David Nuutinen, president and chief executive of Cloetta.
Danish Crown/Tican Merger Referred to Denmark's Competition Authority The European Commission has partially referred the proposed merger between Danish Crown and Tican to the Danish Competition and Consumer Authority (DCCA) at its request. Both companies are Danish and are active in the operation of slaughterhouses and in meat processing. After a preliminary investigation, the Commission found that the proposed transaction would threaten to significantly affect competition in certain markets in Denmark. Those aspects will now be examined by the DCCA under national law. At the same time, the
Commission has approved under the EU Merger Regulation the proposed transaction in the other affected Member States Poland, Sweden and the UK. Danish Crown and Tican are both vertically integrated food companies with activities at every level within the value chain for pig meat, including pig breeding, slaughtering, meat processing and in supplying fresh pig meat. Their activities span several European countries including Denmark, Poland, Sweden and the United Kingdom.
Mondelez International Completes Vietnamese Acquisition Mondelïz International has completed the acquisition of an 80% stake in Kinh Do, Vietnam's leading snacks business. First announced in November 2014, the combination brings together Kinh Do's local snacks, including Kinh Domooncakes and biscuits, Cosy biscuits, Solite soft cakes and AFC crackers, with Mondelïz International's iconic global brands, such as Oreo cookies, Ritz crackers and Cadbury chocolate. "This acquisition is a perfect fit for our growth strategy in Asia Pacific, strengthening our core snacking categories in a high-growth dynamic market," says Tim Cofer, executive vice president and president, Asia Pacific and Eastern Europe, Middle East & Africa. Vietnam is home to over 90 million increasingly sophisticated consumers looking for highquality snacking products.
Bacardi Adds Banks Rum and Cachaca Brand to its Portfolio Having just expanded its portfolio of super-premium rums with
FOOD & DRINK BUSINESS EUROPE, AUGUST 2015
the purchase of Banks rum for an undisclosed price, Bacardi has now completed the acquisition of Brazil-based Leblon Holdings and its Leblon cachaça brand after serving as a significant minority investor for several years. Celebrating its 10th anniversary this year, Leblon is available in more than 35 countries including Brazil, the United States, Canada, and select markets in Europe, Asia and in the Caribbean. The terms of the transaction were not disclosed. Banks rum is currently available in some of the most influential on-premise establishments in the United States, Germany, United Kingdom, France, Japan, Portugal, Russia, Switzerland, Denmark and Singapore. Headquartered in Hamilton, Bermuda, family-owned Bacardi operates 29 facilities globally and sells its brands in more than 160 countries.
Parmalat Expands in Brazil Parmalat has completed its US$700 million acquisition of Elebat Alimentos, the dairy busi-
ness of Brazilian food group BRF. The acquisition comprises of 11 production facilities in Brazil and several brands, including Batavo, Elegé, Cotochés, Santa Rosa and DoBon. The pro forma revenues of BRF’s dairy division amounted to about R2.7 billion (Eur865 million) in 2014. Parmalat, which is listed on the Italian Stock Exchange, has been controlled by the Lactalis Group of France since July 15, 2011. Employing more than 16,000 people, Parmalat operates facilities in Europe, the Americas, Africa and Australia. The Italian dairy and fruit beverages group is present in 33 countries and has 73 factories. Parmalat generated revenues of about Eur5.6 billion in 2014.
Edrington Benefits From Continued Strong Demand For Premium Spirits Scottish distiller Edrington is continuing to focus on the fast growing premium and super-premium sectors of the global spirits market, and the company is currently investing £100 million in a new distillery and visitor centre for its prestigious Scotch single malt whisky brand, The Macallan.
n addition to The Macallan, Edrington’s other core brands are Highland Park single malt whisky, The Famous Grouse and Cutty Sark blended whiskies, Brugal rum and Snow Leopard vodka. The group owns several malt whisky distilleries, including The Macallan, Highland Park, Glenrothes and Glenturret. Edrington’s malt distilleries produce more than 17 million litres of spirit every year. The company also owns 50% of The North British Distillery, which has an annual capacity of more than 65 million litres of grain spirit. In the Dominican Republic, Brugal uses more than 12 million gallons of home produced molasses to create 22 million litres of Ian Curle, chief executive of Edrington. spirit each year. Brugal was acquired in 2008 and Snow Leopard was purchased in 2013 as part of Edrington’s strategy of diversifying its portfolio beyond Scotch whisky and focusing on developing super premium brands. Financial Performance For the year ended 31 March 2015, Edrington reported an 8% decline in earnings before interest and tax, pre exceptional, (EBIT) to £181.1 million on revenues down 2.4% to £617.1 million as a result of a significant reduction in non-branded sales and the impact of adverse currency factors. Although profits and turnover declined, the underlying performance in the core branded business was satisfactory. Eliminating the effect of the reduced levels of non-branded sales, underlying EBIT increased by 4.6%. Brand turnover rose by 1.8% reflecting a strong performance from the company’s whisky portfolio but a subdued performance from Brugal. Edrington is continuing to invest in
strengthening its routes to market. Last year the company established its own sales, marketing and distribution companies in the US, South East Asia and the Middle East. Taking control of the company’s route to market has resulted in the brands, most notably The Macallan, continuing to expand their presence in the world’s most important premium spirits markets. Edrington also invested in the increasingly important travel retail market and this year saw the launch of its new Global Travel Retail unit, based in Singapore, as well as a new joint venture based in Miami serving the market in the Americas and the Caribbean. Ian Curle, chief executive of Edrington, comments: “Edrington enjoyed a good year in which we saw the benefits of controlling our distribution in the key spirits markets of the US and South East Asia and continued strong demand for our premium spirits. Our whisky portfolio per- The Macallan now occupies formed ahead of the market and this market-leading positions in shows the strength of our brands, Russia, China, Japan, South which are well Korea and Hong Kong and has placed to bene- grown quickly to occupy the fit further from number two position in the USA. continuing trends towards premium spirits.” Indeed, 80% of Edrington’s sales are now managed by its own distribution businesses in many of the world’s fastest growing markets for premium spirits.
Edrington’s malt distilleries produce more than 17 million litres of spirit every year.
Brands Portfolio The Macallan grew turnover by 10.5% during Edrington’s last financial year. The brand now occupies market-leading positions in Russia, China, Japan, South Korea and Hong Kong and has grown quickly to occupy the number two position in the USA, where the brand’s pricing strength reflects its pre-eminent premium malt positioning According to Edrington, The Macallan is
FOOD & DRINK BUSINESS EUROPE, AUGUST 2015
well positioned to exploit internationRepublic. Although it retained its al opportunities. The USA offers sigleadership positions, the brand lost nificant potential to increase volume year on year. Due to the chalEdrington’s distribution footprint, lenging trading environment in South East Asia is a strategic growth Dominican Republic and Spain, opportunity and emerging markets Edrington has revised downwards its offer viable options to expand the growth forecasts for Brugal, resulting brand further. in a non-cash impairment charge of Highland Park achieved volume £239 million to the carrying value of growth in excess of 15% from the the brand. Edrington is continuing to prior year, which coupled with the focus on the premium market for introduction of innovative higher Brugal after delivering 50% growth of margin ranges delivered a net turnover the brand’s premium expressions, growth in excess of 20%. The brand Highland Park achieved volume growth in excess of 15%. Extra Viejo and XV, in the last year. performed strongly in the USA where it is well positioned for further growth. Building on the brand’s Improvement Programme rich heritage, Edrington aims to make Highland Park the most In conjunction with investing in its routes to market and strengthrespected single malt globally. ening its brands equity, Edrington is also continuing to make The Famous Grouse maintained its position as Scotland’s and progress on its Project Integra improvement programme. Central the UK’s favourite Scotch, increasing the brand’s volume and mar- to this is the integration of the company’s business systems from ket share during the year. The Famous Grouse also grew in several three SAP platforms to a single global platform. When completed emerging markets including Turkey, Russia and sub-Saharan in 2017, this project is expected to deliver greater efficiency and Africa. The strategy for The Famous Grouse is to focus on main- effectiveness across Edrington’s businesses. taining share in core markets and continuing to premiumise the The initial UK work stream was implemented successfully in brand in the mind of consumers. April 2015 and work is now underway on the next phase, which Edrington’s other main blended Scotch whisky brand, Cutty involves the international implementation across local operating Sark, grew volume and market share in its largest market, Spain, companies. and launched its Prohibition Edition in the USA. The Snow Leopard vodka brand showed positive volume growth Edrington 2020 Strategy during the year with successful launches across the USA, Asia and The independent Scotch distillery company has during the past Global Travel Retail. year embarked on a new development strategy designed to build on However, Brugal encountered tough economic and competitive the progress already made. Entitled Edrington 2020, the strategy conditions in the key markets of Spain and The Dominican prioritises further enhancing The Macallan brand, accelerating the
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and visitor centre remains on track for completion in Spring 2017.”
The Famous Grouse is Scotland’s and the UK’s favourite Scotch.
growth of Highland Park, and further developing the group’s super premium capability. Premium and super-premium are forecast to remain the fastest growing segments of the overall spirits market. As a result, Edrington’s 2020 strategy is focused on building on its investments made in the brands and the route to market to enable it to further exploit opportunities in these categories, as well as realising the potential of Snow Leopard vodka and innovating in rum and whisky. Edrington will also focus on leveraging its brands’ market-leading positions across key regions by aiming to maintain and strengthen overall brand equity and the relevance of the company’s blended Scotch and rum brands, optimising return on invested capital and advertising and promotion investment. “Edrington’s focus in the coming years will be on this increasingly important premium end of the market – with The Macallan as the Ultimate Luxury Spirit – and we continue to invest to support our growth objectives and our long-term prospects,” says Ian Curle. “Our strategy of investing for the long-term is evidenced by our expansion in the travel retail market and the on-going work to transform The Macallan estate, where work on the new distillery
£100 Million Investment As part of its investment to further develop and enhance The Macallan brand, Edrington is investing £100 million in a new distillery and visitor centre in Speyside. The new facility is scheduled to open to the public in Spring 2017. The new distillery is designed to ensure the on-going quality control of the production of The Macallan and to further consolidate the brand’s position as one of the world’s leading luxury spirits. Over time the distillery will deliver additional capacity to meet the growing demand from existing and new international markets. Incorporating a rolling roofscape, the new facility, when completed, will complement the natural beauty of The Macallan Estate, which overlooks the River Spey. Outlook Although acknowledging that the market for mainstream blended Scotch and rum will continue to be competitive in the coming years, Ian Curle believes that Edrington “has brand assets that are well positioned to benefit from continuing trends towards premium spirits.” “The company is continuing to invest behind its future growth potential whether that be through increasing investment in building brand equity, investment in route to market execution, recruiting and developing talented people or upgrading infrastructure to drive efficiency and effectiveness,” he comments. “We remain confident in our portfolio of market leading brands, route to market and talented resources and we believe the sharpness, clarity and focus of the refreshed strategic imperatives will continue to deliver strong organic growth and long term shareholder value.” J
FOOD & DRINK BUSINESS EUROPE, AUGUST 2015
More Breweries Go Plastic! Jim Hardisty, MD of Goplasticpallets.com, explains why more UK breweries and beverage manufacturers should follow Europe’s example when it comes to handling drinks products. hen sourcing pallets for use in the bevW erage supply chain safe handling is a primary consideration. The drinks industry requires customised pallet solutions – pallets that are suitable for use in automation, whether that’s being moved by forklifts, handled in automated conveyor systems or arranged in high-rack storage.
Goplasticpallets.com's BPPi9 Beverage Pool Pallet.
Switching to plastic pallets is a trend that has taken hold in Europe’s beverage industry, which has been quick to recognise the significant benefits of using plastic pallets for handling and distribution. Although the UK has been slower to follow suit, some UK beverage manufacturers like Edrington, are already reaping the benefits of ‘going plastic’. Three years ago, Edrington came to us seeking a more durable, less damaging and
more cost-effective solution to wooden pallets for keeping its scotch whisky safe during transportation – essential since each pallet carries up to £60,000 worth of scotch. Impressed by our “knowledge and helpful attitude” Edrington ordered 1,400 of our APB 1210 Pool Perforated 5R pallets, which marked a decisive switch from using traditional wooden pallets to plastic ones. Rising timber costs and the short lifespan of wooden pallets – around five trips in Edrington’s experience – also contributed to the company’s decision to switch to plastic. Not only do our plastic pool pallets have a life expectancy of around 10-15 years, they also work seamlessly in automated conveyor systems. In mainland Northern Europe beverage manufacturers have taken to plastic pallets in a big way, by joining forces and collectively purchasing them to use as a group. Dranken Pallet Beheer (DPB) in Holland is a prime example. The jointly operated pallet pool of Dutch breweries and beverage manufacturers ordered 400,000 plastic beverage pool pallets in 2012 and has been successfully renting them to Heineken, Bavaria, Grolsch, Inbev and Vrumona for shipping crates of beer, spirits and conserves. This year, a new brewery joined DPB’s pallet pool leading to the purchase of a further 35,000 plastic pallets.
Edrington is already reaping the benefits of plastic pallets for transporting its Scotch whisky.
At Goplasticpallets.com, we’re urging UK breweries and beverage manufacturers to follow Europe’s lead and not only replace their wooden pallets with plastic ones but consider operating their own plastic pallet pools. We stock the UK’s widest range of plastic pallets which includes pallets designed specifically for the beverage industry – our BPPi9 Beverage Pool Pallet and our Keg S9 Pallet, which can hold up to eight 50-litre kegs. For further information, call Goplasticpallets.com on 01323 744057 or visit www.goplasticpallets.com. J
Maturation Storage Solutions From Link 51 he process of distilling Scotch whisky, which involves maturaT tion in barrels for periods of several years, has remained largely unchanged for 500 years. However, as overseas and domestic demand increases in modern times, the operational and logistical challenges of storing huge numbers of these casks grow ever more complex and expensive. Link 51, the UK’s leading storage manufacturer, has worked with several of Scotland’s most famous distilleries, such as Macallan’s Speyside facility, to provide bespoke maturation racking solutions that maximise warehouse storage capacity, reducing the costs involved. Their system can be tailored to the needs of any distillery storing any spirit, walkways throughout provide quick access to individual casks and the possibility of load crushing is also eliminated. Visit www.link51.com/macallan to find out more about Link 51’s maturation racking solution or call 0800 169 5151 to arrange a free space planning consultation at your premises. J FOOD & DRINK BUSINESS EUROPE, AUGUST 2015
Energy Efficient Compressed Air From Kerr Compressor Engineers err Compressor Engineers (EK) Ltd K were founded over 30 years ago, and since then have served the Scottish whisky industry with their knowledge and expertise in the Compressed Air & Vacuum market.
Operating from four Service Centres, East Kilbride (Head Office), Perth, Aberdeen & Inverness, Kerr Compressor Engineers provide 24/7 service 365 days per year. With 23 Mobile Service Engineers, Kerr Compressor Engineers guarantee a maximum 4 hours response to
all customers. As the only Scottish Distributor for Kaeser/HPC Compressed Air Equipment, Kerr Compressor Engineers provide an extensive range of Energy Efficient Equipment designed to meet the rigours of 24 hour operation. Whether it is a replacement compressor for an ageing inefficient unit, or a complete Turnkey Package, Kerr Compressor Engineers are on hand to provide the correct solution to meet your requirements. With World renowned reliability & Energy Efficiency, the Kaeser/HPC equipment is the only sensible choice for all your compressed air needs. ‘Oil Lubricated’ or ‘Oil Free’ Compressors are available from 6 cfm – 3,000 cfm in standard 8 – 15 Bar configurations, there is a package available to suit everyone’s requirements. With some of the world’s leading food and drink companies as part of Kerr Compressor Engineers’ portfolio, including The Edrington Group, Chivas Brothers,
Diageo, 2 Sisters, Marine Harvest, Mackies and many more, it is essential to ensure the quality of compressed air meets the ISO 8573.1:2010 standard for Food Grade use. As such Kerr Compressor Engineers offer an extensive range of Energy Efficient filtration and drying equipment to eliminate all impurities in the compressed air. All equipment comes with a Standard Five Year No Quibble Parts & Labour Warranty, which can be extended for the life of the equipment based on a Service Contract from Kerr’s. J
Busch Introduces the First Hygienic Vacuum Pump he first vacuum pump with T hygienic design in the world has been introduced by Busch Vacuum Pumps and Systems. This new rotary vane vacuum pump was developed specially for foodstuffs packaging with tray sealers and thermoforming machines, and is designed to be cleaned using steam jets and conventional detergents. The unit surfaces are smooth and slightly inclined, allowing water and detergent to drain away after cleaning to leave a residue-free finish. Initially only the models RAH 200 A and RAH 300 A with pumping speeds of 200 and 300 m?/h will be available. The new vacuum pumps are based on the proven oillubricated Busch R 5 rotary vane vacuum pumps, which have been installed in many packaging machines and remote centralised 12
vacuum systems. The rotary vane technology of the new hygienic vacuum pumps guarantees a permanent vacuum of 0.1 mbar and high pumping speeds for the entire range between atmospheric and ultimate pressure, allowing rapid evacuation and short packaging cycle times. FOOD & DRINK BUSINESS EUROPE, AUGUST 2015
The vacuum pumps are water cooled, preventing heat emissions to the packaging machine and cooled packaging area. The packaging area temperature (a legal requirement, and important for food packaging operations) remains unaffected. In addition, cooling energy is saved. A water cooled motor may be ordered as an option to further reduce heat emissions. The heat energy from the cooling system can be reused elsewhere, resulting in an additional improvement to the energy balance of the vacuum system. The water supply is easily connected to the packaging machine cooling system. Installation of the unit is a simple process due to its compact dimensions and flexible vacuum connector. For further information visit www.buschvacuum.com. J
€5.5 Billion Investment in EU Dairy Processing €5.5 billion was invested in the expansion of dairy processing capacity across the EU between 2012 and June 2014 in preparation for the abolition of the milk quota regime in April 2015.
ome Eur2.68 billion, almost half of the total investment, was spent on the processing of dry dairy ingredients such as milk powder and whey powder, with the majority of these facilities located in the Netherlands, Germany, Ireland and France. Other key product categories to receive investment included cheese (Eur1.02 billion or 18% of the total investment figure), milk and dairy drinks (Eur650 million or 12%), yoghurt and chilled products (Eur330 million or 6%) and butter (Eur100 million or 1.8%). Encompassing 190 projects, the Eur5.5 billion investment was made by 120 companies with Lactalis Group, FrieslandCampina, Arla Foods, DMK and Glanbia Ingredients Ireland prominent amongst them. Europe is already the world’s largest cheese exporter and the recent heavy investment in dry dairy ingredients processing has further strengthen its standing and competitive position in the global milk powder and whey powder markets. Further Investment Further investment in European dairy processing is ongoing. For example, Sodiaal, the largest dairy co-operative in France, is planning to spend Eur600 million in a six year programme to increase its output and to diversify its activities and further develop its international business. Sodiaal’s international operations accounted for 25% of total turnover of Eur5.4 billion last year. Sodiaal has set a target of doubling its gross operating surplus, which was Eur93 million for 2014, and to increase the proportion of its turnover earned through exports by 2020. In the Netherlands, FrieslandCampina is continuing to expand its production capacity and enhance its manufacturing facilities, having already invested Eur2.5 billion across its operations since 2009 in preparation for the abolition of EU milk quotas in April last. The international dairy co-operative invested Eur656 million last year and
further investments in infrastructure and production capacity are expected to total around Eur600 million in 2015. In Germany, DMK, the country’s largest dairy company, is currently building one of the most modern and efficient milk powder plants at Zeven in Lower Saxony. Having invested more than Eur500 million in its facilities during the past three years, DMK recently opened a new production facility at its Nordhackstedt site in a joint venture with Arla Foods, the international dairy cooperative which has members across Sweden, Denmark, Germany, Great Britain, Belgium, Luxembourg and the Netherlands. The joint venture, ArNoCo, is processing the whey produced from DMK’s cheese production and supplying high quality whey protein concentrate and lactose to
Arla Foods’ global ingredients business. The site will process around 700,000 tons of whey, which is made into 25,000 tons of lactose and 12,000 tons of whey protein concentrate per year. International Expansion In addition to expanding production capacity at home, the top European dairy groups are also expanding their presence internationally, particularly in fast growing, emerging markets through acquisitions and joint ventures. French dairy group, Lactalis, through its Parmalat business, has just completed its US$700 million acquisition of Elebat Alimentos, the dairy business of Brazilian food group BRF. The acquisition comprises of 11 production facilities in Brazil and several brands, including Batavo, Elegé, Cotochés, Santa Rosa and DoBon.
Global Dairy Top 20, 2015 Company 1 Nestlé 2 Lactalis 3 Danone 4 Fonterra 5 Dairy Farmers of America 6 FrieslandCampina 7 Arla Foods 8 Saputo 9 Dean Foods 10 Yili 11 Mengniu 12 Unilever 13 Sodiaal 14 DMK 15 Savencia (formerly Bongrain) 16 Kraft Foods 17 Meiji 18 Schreiber Foods 19 Land O’Lakes 20 Muller
Country of Headquarters Switzerland France France New Zealand USA Netherlands Denmark/Sweden Canada USA China China Netherland/UK France Germany France USA Japan USA USA Germany
Dairy Turnover 2014 (€billion) 20.9 14.7 14.6 13.9 13.5 11.1 10.3 7.4 6.8 6.5 6.1 5.8* 5.4 5.3 4.6 4.5 4.2 4.2* 3.8 3.8*
Source: Rabobank, 2015. Turnover data is dairy sales only, based on 2014 financials and M&A transactions completed between 1 January and 15 June 2015. *Estimate
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The proforma revenues of Elebat Alimentos, which is Brazil’s third largest dairy business, amounted to about R2.7 billion (Eur865 million) in 2014. Parmalat, which has been controlled by the Lactalis since July 15, 2011, operates facilities in Europe, the Americas, Africa and Australia. FrieslandCampina is also continuing to expand its international presence and recently increased its equity stake in its subsidiary FrieslandCampina WAMCO Nigeria from 54.6% to 67.6% at a cost of approximately Eur180 million
tive Group, which ranks fourth in the Global Top 20 and is also the world's leading dairy exporter, has just opened its first wholly owned and operated dairy ingredients plant in Europe, as part of a strategic partnership with Dutch cheese manufacturer Royal A-ware. The new site at Heerenveen in the Netherlands consists of two plants working in tandem - A-ware’s facility produces cheese for its customers in Europe, while Fonterra’s plant Pictured at the official opening of the new site of Royal A-ware and Fonterra at processes the whey and lacHeerenveen were (left to right): Theo Spierings, chief executive of Fonterra; King of the tose generated by A-ware’s Global Strength plant. Netherlands Willem-Alexander; and Jan Anker, chief executive of Royal A-ware. The top European dairy comFonterra has also formed a panies also figure prominently in terms of France, which accounts for 22% of EU strategic partnership with Dairy Crest, the scale at a global level. Indeed, Europe’s top cheese production, 20% of butter produc- leading UK-owned dairy foods company. ten dairy processors by turnover feature in tion, 28% of non fat dry milk production Fonterra will market and sell products Rabobank’s Global Dairy Top 20 for 2015 and 17% of whole dry milk production, is manufactured by Dairy Crest for the fast and command the first three places (see the European country boasting the highest growing global infant formula market. Table). number of companies in the Top 20 with Dairy Crest is currently investing £45 milLactalis leapfrogged Danone to claim sec- Lactalis, Danone, Sodiaal and Savencia lion to manufacture demineralised whey ond place in this year’s league table, while (formerly Bongrain) all ranked. Germany powder, the base ingredient in infant forFrieslandCampina dropped out of the top has two representatives – DMK and mula, produced from the whey generated at five into sixth after being overtaken by Muller. its cheese making factory at Davidstow in Dairy Farmers of America. New Zealand-based Fonterra Co-opera- Cornwall. J
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Primoreels® – ‘The Lidding System of the Future’ – Cost Efficient and Reliable rimoreels has become a well-established P and flexible partner for a wide range of manufacturers all around the world - mainly in the dairy industry. Primoreels has invented a lidding system which offers
unparalleled advantages to dairy product manufacturers whom traditionally are using ALU/PET die cut lids or roll-stock solutions.
The unique Primoreels® system is already installed in numerous high capacity machines throughout the world, and further development has allowed Primoreels to retro-fit its stand-alone units to existing Inline machines as well as Round table machines, to significantly enhance their efficiency and hygienic security level in production. This comes with a small investment to the existing filling machine, which runs with preformed cups and a diecut/roll-stock solution. Switching lidding system to a Primoreels solution will be done in a maximum of 4 days - on site and the existing machine can be of any brand and size. Each machine unit is tailor-made and has its own dedicated touch-screen panel and controls, thus making them truly independent units without interfering with the current PLC or other on the filling machine. The simple instalment creates the perfect interaction between machine and foil material. Compared to regular die-cut PET and Aluminium lids, Primoreels® PET lids are the new great alternative – cost efficient
and with a minimum carbon footprint. Primoreels lids come in thinner materials than normal die-cut lids, and therefore are expected to create savings for customers all around the world. The reels contains as much as 40,000 lids per reel. Furthermore, it is possible to obtain exceptionally high print quality on the ultra-smooth lid surface. Other obvious benefits include UV-C sterilised lids, which eliminate contamination and increase shelf life. For further details of Primoreels’ latest innovative lidding products and services visit www.primoreels.com. J
Smurfit Kappa Wins Top European Supplier Award From Nestlé murfit Kappa has been awarded its second prestigious supplier S award in recent weeks from Nestlé, the world’s leading nutrition, health and wellness company. Smurfit Kappa was ranked the number one European Supplier of the Year for all-round excellence among Nestlé’s European corrugated packaging suppliers. This comes after it was recently awarded the Nestlé European Innovation Recognition Award for outstanding innovation proposals.
The Supplier of the Year Award is Nestlé’s most sought-after packaging supplier award across Europe. It measures excellence across six categories of innovation and renovation, quality, technical, relationships, cost and logistics. Suppliers are rated by individual market, with the overall award given for the best supplier across Europe. The award is the culmination of a collaborative, strategic partnership between the two businesses, delivering measurable value across the Nestlé supply chain in multiple categories, from coffee to pet food. Stephen Mc Aneny, VP Sales at Smurfit Kappa, says: “We are delighted to gain further recognition from Nestlé and in particular as its leading corrugated supplier across Europe. As part of embedding our new ‘Open the future’ strategy with all our clients, we have worked in complete partnership with Nestlé to deliver innovation at every step of the supply chain. So it’s particularly pleasing for our work to be recognised across all six categories, from innovation to logistics. We look forward to working with our clients at Nestlé to create new opportunities for the business and it brands in the year ahead.” For further information visit www.smurfitkappa.com or check out the microsite www.openthefuture.info. J
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I CASE STUDIES
DS Smith Takes the Lead in Butcher’s Pet Food Promotion uring an on-site technical workshop, D Butcher’s challenged DS Smith to costeffectively incorporate a redeemable voucher into its existing high quality, corrugated 12 pack consumer box, to support its sales and promotional strategy. DS Smith presented a range of options including special varnish effects, foil blocking and random coding. However, after joint consideration, the best solution was a HD pre-print liner to the existing litho printed pack offering the shopper a redeemable £1 voucher. The resulting pack encourages repeat purchase of the high quality product and
supports brand loyalty and engagement – key strategies for family-owned Butcher’s.
Sarah Alexander, Head of Marketing Department at Butchers, says: “DS Smith was central to the development of this promotional idea. We wanted to increase brand engagement but not sacrifice our family heritage. The solution has already delivered results higher than ever seen previously - redemption rates >35% against market norms of <1.5% which we are now monitoring to understand the impact on long-term loyalty trends. The reverse-printed coupon also allowed us to create noise & vibrancy for the shopper and protect the brand from the risk of mal-redemptions often seen with inserted coupons.” J
DS Smith’s Packaging Division Helps Dr Organic Create a New Suite of Packaging to Support its E-retail Offer atural skincare brand Dr Organic uses N only the finest natural and organic raw ingredients in its products and has devel-
oped a loyal customer base since launching in 2009. As a brand built on a firm commitment of premium ingredients and ethical practices, Dr Organic was keen to ensure its eretail packaging reflected these values. Anthony Davis, Creative Director at Dr Organic, says: “We always put our customers first and this includes making sure they have an enjoyable experience when they receive their goods at home. We set DS Smith a tough task with a number of important practical requirements as well as the need to communicate our brand values effectively.”
DS Smith’s expert designers worked closely with Dr Organic to build a range of packs that hold the product firmly in the centre, creating a small void around the pack for transit protection. Anthony adds: “The cases are quick to erect and the securing adhesive tapes mean fast packing, and ensures security and tamper evidence. The easy opening rip strip also supports a positive customer experience on receipt of the product and enables an easy returns process if a customer needs to send any products back. We really feel we have got a solution that eliminates risk and maximises sales.” J
DS Smith Wins Recognition For Design and Innovation at the European Flexographic Industry Association Print Awards 2015 total of six honours - four in the UK A and two for Germany - were awarded to the corrugated packaging and supply cycle specialist, including Gold for its work with Typhoo, Silver for Diageo and Bronze for Mondelez. The EFIA Awards have been running since 1972 and offer participating companies the opportunity to gain recognition for excellence in flexographic print on packs produced during the previous year. Tony Foster, UK Sales and Marketing Director at DS Smith, says: “We enjoy this challenge every year as we continue to 18
invest in flexographic print machines, systems, printing plates and technical expertise. Apart from producing great print, we also digitally manage colour across our production sites to ensure consistency in appearance. All aspects of ‘flexo’ continue to improve, print standards are unrecognisable compared with a few years ago.” “These awards recognise all the hard work done by our talented teams and we are delighted to have been honoured by the Flexographic Industry Association.” For more information and news from FOOD & DRINK BUSINESS EUROPE, AUGUST 2015
DS Smith visit www.dssmithpackaging .co.uk. J
I LABELS & LABEL APPLICATORS
FDF Launches Gluten Labelling Guide new guide has been A launched to support food manufacturers on the labelling of food products containing gluten. The Food & Drink Federation (FDF) has launched a new best practice guide to help manufacturers adhere to the Food Information to Consumers (FIC) Regulation and to provide consumers with clear and consistent allergens labelling. The FIC Regulation brought changes to the way allergen information is provided and emphasised on pre-packaged foods. 'Gluten Labelling Best Practice: How to label pre-packaged foods which include cereals containing gluten' has been developed by the FDF with support from Coeliac UK, Anaphylaxis Campaign and the British Retail Consortium. This best practice has been produced to illustrate examples of the usual as well as some of the more challenging labelling situations of gluten containing foods, and it also covers claims for gluten-free foods. Special consideration is also given to oats and wheat. Director of Regulation, Science & Health at the Food and
Drink Federation, Barbara Gallani says: “As consumers are increasingly seeking clear information about various allergenic ingredients within the foods they purchase, it is important that food manufacturers provide labels that are legally compliant and make it easier for consumers to find and understand allergen information so they can make safer food choices. By following a best-practice approach, we hope that this new guide will help manufacturers of all sizes make informed labelling decisions with regard to cereals containing gluten.” Sarah Sleet, CEO for Coeliac UK, says: "The Charity supports the new best practice guidance for the industry and the introduction of an approach to limit the use of 'may contain gluten' statements on packaged foods which will be welcomed by everyone with coeliac disease.” The free guide is available of the FDF website www.fdf.org.uk/Gluten-Labelling.aspx. J
Denny Bros Helps 9BAR Deliver ‘Good Energy, Twice’ Campaign new stripped-back look is awaiting peoA ple with an active lifestyle who rely on super seeded 9BAR snacks from Wholebake to get them through each and every work and play day. A rebranding campaign has been revealed by 9BAR on multipacks by a multi-page Fix-a-Form® from print specialists Denny Bros. The teaser ‘New Look Coming Soon’ leaflet labels show the fun,
natural and quirky graphics that have replaced the former 9BAR look. The new branding focuses on the pure ingredients that give the brand its natural lift - like sunflower, pumpkin and hemp seeds as well as apricots, raspberries, cocoa, peanuts, cashews and raisins. The three mini pages of text and pack shots, wrapped in a perforated carrier label, confirm that
FOOD & DRINK BUSINESS EUROPE, AUGUST 2015
9BAR offers the same energy-boost but now with a more natural look which focuses on the nutritious ingredients. While three additional pages announce that for every 9BAR sold, Wholebake will provide a night of light for a child in Africa. The ‘Good Energy, Twice’ initiative means that people will buy an energy-boost and give an energy boost at the same time thanks to the company’s mission to ‘energise the globe, one bar at a time.’ Across Africa, almost 600 million people without electricity have to rely on kerosene lights which are expensive and toxic. Wholebake is working with UK Charity SolarAid to provide solar lights to families of children in Africa to enable them to study using a clean and sustainable energy that will help to change lives (www.9BAR.com/impactmap). Wholebake chose the Fix-a-Form® concept to support the 9BAR re-launch as it enabled the company to communicate its two distinctive messages ‘The Power of Seeds + The Power of Deeds’ directly to its customers in one go. J 19
I CONFERENCE & EXHIBITION
How to Scale Up a Food & Drink Business – Conference & Exhibition, Aviva Stadium, 16th September 2015 The second annual Food & Drink Business Conference & Exhibition will be held at the Aviva Stadium, Dublin on Wednesday, 16th September 2015. The theme of this year’s conference and exhibition is ‘How to Scale Up a Food & Drink Business’. ood Wise 2025, which will build on the Irish Government’s successful Harvest 2020 development strategy, has set out significant growth targets in all of the key sectors of the Irish food and beverage processing industries. The new 10 year plan targets an 85% jump in the value of exports to Eur19 billion by 2025. The growth is expected to deliver an additional 23,000 jobs based on the projected expansions in dairy, beef and seafood, as well as a doubling of consumer food and drinks exports. The plan identifies a surge in global food demand driven by emerging middle class populations across Africa and Asia as significant opportunities for Ireland. In beverages the plan envisages doubling whiskey output by 2025 and an increase in the number of micro breweries from 21 to 100. To achieve these targets indigenous companies must be able to scale up to increase sales to local retailers but more importantly to develop sustainable export markets.
presentations from some of Ireland’s leading craft beer and whiskey companies with an emphasis on Brand Development, Distribution, Investment in Capacity and New Product Development.
Aidan Cotter, Chief Executive of Bord Bia.
Key Note Speakers The conference will hear from key note speakers who have a proven track record in creating growth through investment, innovation and automation. Key note speakers include: • Aidan Cotter, Chief Executive of Bord Bia (Irish Food Board); • Michael Carey, Co-Founder and Executive Chairman of ‘The Company of Food’, and Chairman of Bord Bia; • Raymond Coyle, Founder and Chairman of Largo Foods; • Cathal Fizgerald, Head of Food and Agriculture Investments – ISIF National Treasury Management Agency; • Paul Kelly, Director of Food and Drink Industry Ireland; • Michael Cantwell, Director of the Food Division of Enterprise Ireland; • Richard Cullen, Managing Director of The Jelly Bean Factory; • Jason Whooley, Chief executive of BioMarine Ingredients Ireland; • Louise Ryan, Head of Strategic Planning at Irish Distillers/Pernod Ricard. Food and beverage manufacturers on the Island of Ireland are perfectly placed to capitalise on the country’s reputation for producing high quality, safe and sustainable products which are respected and sought after in retail and food service sectors. Major Workshop This year’s conference will include a major workshop on the future growth opportunities for the craft beer, whiskey, spirits and cider sectors. The workshop will include FOOD & DRINK BUSINESS EUROPE, AUGUST 2015
Louise Ryan, Head of Strategic Planning at Irish Distillers/Pernod Ricard.
The event will bring together key stakeholders responsible for Ireland’s largest manufacturing sector, which has a turnover of over Eur25 billion. Exports reached over Eur10 billion for the first time in 2015. The sector employs over 230,000 people and the Government has committed to increase this number substantially over the next six years. Admission to the event is FREE for Food & Drink Manufacturers. All other attendees pay Eur295.00 for Day Pass. For further information or to register visit www.fooddrinkevent.com. Exhibitor & Sponsorship options also available (Limited spaces). To be included contact Ronan Meagher at firstname.lastname@example.org. J
I BAKERY, CONFECTIONERY & SNACKS
Iba Points Out Ways to the Future and to Success 12 exhibition halls, over 1,200 exhibitors, and a multitude of innovations - from the 12th to the 17th September 2015, bakers, confectioners, caterers, restaurateurs and the decision-makers of the food retailing industry will all come together at iba in Munich.
t the world's leading trade fair for bakery, confectionery and snacks they will learn about new products and ideas from all fields of the trade. Topics include: production technology, recycling, logistics, packaging, snacks and snack food production, new raw products, trends in fittings and furnishings for shops, marketing and sales concepts, and many inspirations for day-to-day business. "Anyone who wants their business to be successful has to visit iba," says Peter Becker, President of the International Union of Bakers and Confectioners (UIBC), as well as the German Bakers' Confederation. Comprehensive Market Overview "Every three years it is iba that offers a comprehensive market overview in all fields of the trade," says Dieter Dohr, CEO and president of the trade fair organization GHM. "Iba reveals current and future developments and sets the course for the coming years." At iba, the choice of products is deliberately aimed at businesses of all sizes, from medium-sized artisan bakeries to industrial companies with production lines. Dieter Dohr adds: "Iba is the trade fair for premieres and trend setters and represents an important platform for dialogue, where the whole world comes together." Every three years, businesses take advantage of this international stage to demonstrate their highlights and innovations. Alongside the big global market leaders, many newcomers also introduce themselves at iba. Here is where they get the chance to receive feedback from trade visitors from more than 160 different countries. In addition, iba offers a comprehensive
overview and a range of products that no other trade fair in the industry can match. And that's not all, at iba, trade visitors can witness new innovations in action, be it smaller machines for medium-sized businesses or large production lines. At iba, the visitor can witness the entire process chain and not only see but also smell and taste the result. As well as products and services relating to raw materials, production, packaging and logistics, process optimisation, energy efficiency, EDP solutions, cash systems, food-on-thego, snacks, work wear, hygiene and shopfitting, there will also be special exhibitions such as iba forum with daily live demonstrations and presentations by international experts. International competitions, such as the iba UIBC CUP ‘Bakers’ and ‘Confectioners’, will take place in glass-walled bakeries, where the best in their respective fields from more than 12 countries compete and show off their skills in front of an audience.
roasting to correct preparation. You can taste and compare products, watch machines of different price ranges in action and receive expert advice in our lounge area about the whole business area that is coffee. The special ‘SnackTrendS’ exhibition is likewise dedicated to a market with enormous potential, not only for bakers and confectioners but also for caterers, food courts, system catering, restaurants and the food retailing industry. Covering an area of more than 200 square metres, all that is worth knowing about the snack industry is gathered in one place, from fresh snacks to frozen products, from shop layout to snack technology and snack design concepts. New creations and recipes will be presented. There will be numerous live shows and expert
Special Exhibitions Iba also offers some special exhibitions on key areas such as coffee and snacks. For example, at ‘COFFEE WORLD’, visitors can learn everything worth knowing about these brown beans, from green coffee and FOOD & DRINK BUSINESS EUROPE, AUGUST 2015
demonstrations from experienced snack specialists, informative workshops and a lounge area with space for personal consultations. Snack food is becoming more and more popular. As a result, there will be a wide range of products to be seen in all of the exhibition halls at iba. The special exhibition provides not only an initial introduction but also a summary of all the important suppliers in this field present at the trade fair in the iba SnackGuide.
experts Bob O'Brien (USA) and Jonathan Doughty (UK). You can register at www.iba.de/en/summit. Entry is available for ?490 plus VAT. Any additional participant pays a reduced rate of ?350 plus VAT. The six-day iba ticket is included in the price, as is entry to the iba opening gala on the evening of 11 September. The iba summit lecture series will be translated simultaneously into English, German, French and Spanish. That the fair takes place between 12 and 17 September 2015 might well prove appeal-
International Conference This year's fair will start off with the iba summit. Under the banner ‘B(re)aking Ideas for your Business’, this international conference will take place on 11 September 2015, one day before the start of the fair. Industry experts and decision-makers in the international baking world will meet for an interdisciplinary discussion. Top consultants will give insights into the baking world of tomorrow, from international artisan baker Eric Kayser (France) to international industry
FOOD & DRINK BUSINESS EUROPE, AUGUST 2015
ing to foreign visitors. Just two days after the fair ends, Munich's world-famous Oktoberfest begins. For those who would rather not wait that long, iba will provide a sneak peek at the fair itself. Exhibitors and visitors will be able to enjoy beer, roast chicken, and live music in the iba Oktoberfest tent at the Fairground Messe München and interact in a convivial Bavarian setting with colleagues from all over the world. Further information about iba is available at www.iba.de/en. J
I IBA 2015 PREVIEWS
Multi-packing Without the Robot his year at the iba exhibition, A.M.PT Rose will be showcasing their brand new revolutionary auto adjustable infeed system on a flowpack. The ‘X-Pax’ machine has been designed for single and multi-pack wrapping, and combines the flowrapping machine with the very latest in linear transport systems. The linear transport system, XTS, combines the benefits of rotary and linear systems. The revolutionary feeding system allows individual product size, number of pieces
in the pack, number of product layers, and pack length to all be changed at the touch of a button. Change over parts can therefore be eliminated entirely and downtime reduced to a minimum. This makes the XPax suitable for a wide range of products, and in particular for companies that regularly change product or pack sizes for special offers and promotional deals. XTS adapts itself precisely to the customer requirements: the arbitrary number of movers, the modular path guidance, and the controllability of each individual mover allows precise configuration to suit the product. Up to 4m/s can be achieved with the feed system, without any jerking and still with maximum positioning accuracy. Synchronisation, stopping and starting can be accomplished at any of the stations on the entire path. Added to this is a sensitive response; jerk-free acceleration profiles even allow the transport of open liquids. The flowrap machine is a medium speed full servo driven horizontal wrapping
machine suitable for single pack or multipacking with heat or cold seal wrapping materials. The flowrap is fully synchronised to the XTS feed system and incorporates a large user friendly Windows based HMI screen. Available in powder coated finish as standard, or fully stainless steel optionally, the machine can be supplied with rotary or box motion end sealing jaws, depending on the application and speed requirements. A.M.P-Rose will be exhibiting in Hall B1, Stand 573 at the iba show. For further information contact A.M.P-Rose on Tel +44 1427 611 969, E-mail email@example.com. J
New Pack 301 LS System to Meet Growing Demand For Flow Wrapped Biscuits on Edge t iba 2015, Bosch Packaging Technology will launch its Pack A 301 LS (Length Slug) system for the efficient and flexible packaging of biscuits and crackers on edge. The packaging machine has been developed as an addition to the Pack Series of horizontal flow wrappers, which range from entry-level models to fully automated technologies. It is designed to help manufacturers meet the increasing market demand for biscuit wrapping together with premium product quality. The mid-range automation solution is comprised of a Smart Measuring Loader, a Smart Slug Feeder and a Pack 301 LS horizontal flow wrapper. With innovative features for gentle product handling, as well as fast and simple changeovers, all components have been developed with a holistic approach and for high reliability and robustness. The Pack 301 LS system including the Smart Measuring Loader for slug portioning has been designed specifically to ensure gentle product handling for delicate and brittle biscuit-type products – even at higher speeds. The Pack 301 LS system is capable of packaging rectangular, square and round products, as well as sandwich biscuits. Depending on the manufacturer’s requirements, the solution can be equipped with up to ten vibratory channels. The modular design allows for scalable solutions and layout flexibility, enabling
manufacturers to easily expand their production capacity or increase the level of automation from entry level, hand fed machines to fully automated solutions. The Pack 301 LS system will be displayed at iba from September 12 to 17 in hall B1, Booth 567. J
FOOD & DRINK BUSINESS EUROPE, AUGUST 2015
€15 Million Investment to Establish New Biscuits Manufacturer A new, large scale and innovative biscuits manufacturer is scheduled to commence production in early 2016, offering Irish and British retailers an alternative source for private label and branded products. ewly launched East Coast Bakehouse is transforming a recently renovated 50,000 sq ft premises at Drogheda in County Louth, Ireland, into a stateof-the-art bakehouse, innovation facility, warehouse and offices. The size of a football pitch, the building is ideally suited to house biscuits manufacturing, offering ample space to accommodate the long production lines required for efficient biscuit baking complete with suspended product cooling lines. East Coast Bakehouse will manufacture sweet biscuits and chocolate covered biscuits, so offering a new and competitive source of mainstream products. The fledgling company will launch its own new brand and also manufacture retail private label products, serving both the domestic and export markets.
€15 Million Investment New equipment for the facility is being sourced from across Europe, including Germany, Switzerland and Italy. The first production line to be installed will have an output capability of 20,000 tons. A total of Eur15 million is being invested to establish the enterprise and move it
Primarily, we believe we can offer a new commercially competitive alternative source of mainstream biscuits and cookies. The Bakehouse will have the latest generation of state-of-the-art baking and chhocolate enrobing equipment, capable of supplying mainstream product.
The team behind East Coast Bakehouse (left to right): commercial director, Daragh Monahan; chief executive, Michael Carey; marketing & innovation director, Alison Cowzer; operations director, James Yarr; and chief financial officer, Gerry Murphy.
into profit. Eur10 million is being spent on the building and equipment with the balance being used for general business purposes and overheads. The new venture is expected to create in the region of 100 jobs. The project is being supported by the Irish Government’s Department of Jobs, Enterprise and Innovation through Enterprise Ireland. Experienced Management Team East Coast Bakehouse is being created by chief executive, Michael Carey, who is also chairman of Bord Bia (Irish Food Board); marketing & innovation director, Alison Cowzer; commercial director, Daragh Monahan; operations director, James Yarr; and chief financial officer, Gerry Murphy. They are the same management team that successfully established the Jacob Fruitfield Food Group before selling the Irish ambient food business for an undisclosed sum in 2011 to Valeo Foods to form a business with combined sales of about Eur300 million. FOOD & DRINK BUSINESS EUROPE, AUGUST 2015
Jacob Fruitfield Food Group was developed following the management buy-in of Nestle Ireland in 2002 and the subsequent acquisition of the Jacob’s biscuits business in Ireland from Groupe Danone in August 2004. Jacob Fruitfield Food Group commanded strong positions in a range of major sectors of the Irish food market including biscuits, marmalade, chocolate and mint confectionery, and sauces. After disposing of Jacob Fruitfield Food Group, Michael Carey and his team founded the Company of Food, a Dublin-based investment and consultancy firm specialising in supporting start-up businesses in the food
sector. “We have been backing entrepreneurs and working with others to support growing food companies. We came to the conclusion that really to make something of substance, it would be much more interesting and exciting if we could establish a venture on our own account,” Michael Carey explains. Why Biscuits? Although the team examined opportunities for a start-up business in various sectors of the food industry, it identified biscuits as being the most attractive. “It is a sector where we believe there is a huge opportunity. It is a sector that has gone through a period where quality has been reengineered out of the product. Some of the manufacturers have very high cost legacy issues associated with them – they are old plants and old businesses,” he reasons. Michael Carey elaborates: “We think now is a good time to come in with a fresh approach, with a well invested, new facility that can compete in the mainstream. The management team is a group of five former directors of food companies who have spent between us over sixty years working within the biscuits sector. It is a sector we are very comfortable with.” For example, before establishing Jacob Fruitfield Food Group in 2002, Michael Carey worked in a number of multinational food companies in Ireland and the UK, including holding the roles of managing director of Fox’s Biscuits in the UK and marketing director of Jacob’s in Ireland. Irish and UK Markets The Irish biscuits market is currently worth Eur170 million at retail sales prices, with virtually all products imported. The UK market is valued at over Eur2 billion. According to Michael Carey, both markets have been sluggish in terms of real innovation over many years. “There is a real interest in newness and innovation and a demand for better food credentials with cleaner labels and using better ingredients. That is what we intend to offer, both as private label and with our own brand,” he says. Innovation Product innovation will be crucial to breaking into both the Irish and UK biscuits markets. East Coast Bakehouse is focusing keenly on this area. “Our new innovation centre and approach will be based on deep consumer insights. We are investing
The management team has a good track record in this sector and has a deep understanding of the biscuiit sector in Ireland, UK and mainland Europe.
heavily in building that level of knowledge and expertise, and that is being led by our marketing and innovation director, Alison Cowzer,” says Michael Carey. The East Coast Bakehouse chief adds: “I think retailers are very welcoming of the fact that a new and significant scale player is coming on the market as an alternative supplier. We are happy to get involved in discussions with retailers on their existing products but also, equally importantly, to offer them real innovation.” Commercial director, Daragh Monahan, is currently negotiating with retailers to offer them an alternative supply of existing products but also to encourage them to work closely with East Coast Bakehouse’s innovation centre in developing new products. East Coast Bakehouse is expected to generate about 20% of its future business from the Irish market but the lion’s share of sales will be earned from exports, primarily to the UK but also to mainland Europe. Ability to Compete “Currently, there are about 180 biscuit manufacturers of scale across Europe,” points out Michael Carey. “There is no biscuit manufacturer of scale in Ireland and we think there should be.” However, Irish biscuit manufacturers have struggled in the past to compete with producers from the UK and elsewhere, so what advantages will East Coast Bakehouse have? “Primarily, we believe we can offer a new commercially competitive alternative source of mainstream biscuits and cookies. The Bakehouse will have the latest generation of state-of-the-art baking and chocolate enrobing equipment, capable of supplying mainstream product. The management team has a good track record in this sector and has a deep understanding of the biscuit sector in Ireland, UK and mainland Europe. Also, the innovation capabilities of the business will be at a level where we can add real value to the offer of the customers both on their private label products and on our own brand that we will launch in 2016,” he replies. FOOD & DRINK BUSINESS EUROPE, AUGUST 2015
Michael Carey continues: “A lot of businesses in the sector have been around a long time, the equipment is very old and it has been difficult for them to respond to customers because of the nature of their legacy and history. We think we are offering something completely new.” Eventual Aim Given that the biscuits market tends to be dominated by large multinational companies, is the eventual aim of the new venture to sell out to a bigger player? “At this stage, all our focus is on establishing the business and maybe this could become a platform for acquiring other companies,” Michael Carey responds. “We are small enough to be really hungry for business but also to really care about what we are offering our customers. But we are a big enough start-up with the right credibility of management team to be confident that we can supply the customer with what they want and not have the same level of risk associated with many start-ups.” Michael Carey concludes: “Our immediate strategy is simple – to survive. We want to work with customers to establish new relationships and any future direction will depend upon the initial success in achieving this and our initial sales. Much will depend upon ensuring we can really offer great products at competitive prices.” J
The innovation capabilities of the business will be at a level where we can add real value to the offfer of the customers both on their private label products and on our own brand that we will launch in 2016.
European Biscuits Market to Show Moderate Growth Although dominated by four multi-national manufacturers – Mondelez International, United Biscuits (Yildiz Holding), Barilla Group and Bahlsen, the €13 billion European biscuits market remains relatively fragmented with a plethora of smaller players accounting for about 56% of sales. he European biscuits market has experienced moderate value growth over the past few years (see Table One), with volume expansion being even weaker. These trends are expected to continue in the near future, according to MarketLine, the business information specialist. Butter-based cookies and chocolate cookies constitute the two largest segments of the European biscuits market, each accounting for about 20% of total sales. Germany is the largest biscuits market in Europe, accounting for almost 16% of total sales, just ahead of Italy with nearly 15% and the UK, which generates about 14% of European biscuit sales. France and Spain are the next biggest markets. These five countries are responsible for about 60% of total European biscuits sales. Like most food categories, the European biscuits market is dominated by the major supermarkets/hypermarkets which control about 61% of sales with independent retailers accounting for 18% and convenience stores about 11%.
Major Players US-based global snacking giant, Mondelez Table One:
Europe Biscuits Market Value Forecast, 2013–18 Year 2013 2014 2015 2016 2017 2018
Value $17.44b (€13.13b) $17.82b (€13.42b) $18.25b (€13.74b) $18.68b (€14.07b) $19.14b (€14.41b) $19.58b (€14.75b)
Growth 2.2% 2.2% 2.4% 2.4% 2.5% 2.3%
Source: MarketLine. Currency conversions calculated using 2013 annual average exchange rates.
Jeff van der Eems, chief executive of United Biscuits.
International, is the market leader with a share of about 20%, followed by United Biscuits with 9.7%, Barilla Group on 8.3% and Bahlsen at 6.1% (see Table Two). Mondelez International owns a number of billion-dollar biscuit brands including Oreo, belVita, LU and Nabisco. The group has been investing heavily in improving the performance of its biscuits infrastructure in Europe, having spent $240 million since 2010, including enhancements at its sites in France, the UK and Central Europe. Mondelez is currently investing over $100 million in a state-of-the-art biscuit manufacturing plant at its Opava site in the Czech Republic to further expand its European biscuits manufacturing capacity. In addition to biscuits, Mondelez Internatpional is also a world leader in chocolate, gum and candy. Having been created in October 2012 after being separated FOOD & DRINK BUSINESS EUROPE, AUGUST 2015
from Kraft Foods’ North American grocery business, Mondelez International recently spun off its coffee business, combining it with DE Master Blenders 1753 to create a new joint venture, Jacobs Douwe Egberts, which is now the world’s leading pure-play coffee company. United Biscuits is the leading manufacturer and marketer of biscuits in the UK and second largest in the Netherlands, France, Belgium and Ireland. Among United Biscuits’ popular brand names are McVitie’s, Penguin, go ahead!, Jacob’s, Mini Cheddars and Carr's in the UK, and BN, Delacre, Verkade and Sultana in Continental Europe. United Biscuits is a £1.3 billion turnover business operating 16 manufacturing facilities, of which seven are in the UK. Still family owned Barilla Group is the world leader in pasta with 10.5% of the global market. In addition to its dominance in pasta, the Italian company is also a leader in pasta sauce in continental Europe, bakery products in Italy, and crisp bread in Scandinavia. Barilla Group owns 30 production sites (14 in Italy and 16 abroad) and exports to more than 100 countries. Barilla’s strategy is to focus on developing
its pasta, sauces and ready meals on a global level, while strengthening its branded bakery products activities in Italy and in the main countries in Europe. Bahlsen is another family owned company with operations in Europe, Asia and the US. Based at Hanover in Germany, Bahlsen specialises in the manufacture of cakes and biscuits. Further Consolidation The European biscuit market is expected to consolidate further as the major players seek to increase their scale and influence through acquisitions. In late 2014, Yildiz Holding, Turkey’s largest food and beverages group,
Top European Biscuits Manufacturers by Value Market Share Company Mondelez International United Biscuits Barilla Group Bahlsen Others
Market Share 20.0% 9.7% 8.3% 6.1% 55.9%
Source: MarketLine. Figures for 2013.
emerged as the world’s third largest biscuits manufacturer following its £2 billion (Eur2.6 billion) acquisition of United Biscuits. United Biscuits’ attractive product and brand portfolio is highly complementary to Ülker, Yildiz’s flagship biscuits and confectionery brand. United Biscuits with its large footprint in Europe and the UK is highly complementary geographically to Yildiz’s existing biscuits business, Ulker Bisckuvi Sanayi, which has a strong presence in Turkey, the Middle East and Northern Africa, as well as China and Japan, but has very limited sales and no manufacturing assets in the UK. Yildiz
Holding acquired United Biscuits from private equity firms Blackstone Group and PAI Partners, which had purchased the UKbased biscuit and snacks group for €1.6 billion in 2006. Another recent deal was the sale of UK biscuits manufacturer Burton's Biscuit Company to Ontario Teachers' Pension Plan, the largest single-profession pension plan in Canada for a price believed to be in the region of £350 million, with Burton’s management retaining a significant minority stake in the business. With annual sales of more than £340 million, Burton's has some of the best known brands in the UK biscuit market including Cadbury Fingers, Maryland Cookies, Jammie Dodgers, Wagon Wheels and Lyons. Outlook According to MarketLine, the European biscuits market is forecast to reach a value of $19.58 billion (Eur14.75 billion) by 2018, an increase of 12.3% since 2013, with a compound annual growth rate during the period of 2.3%. Volume growth is expected to be slower with sales projected to be 3,747.9 million kg by 2018, an increase of 9.2% since 2013, equating to an annual growth rate of 1.8%. J
Premier Foods Opens New Mr Kipling Cake Line remier Foods has unveiled a new £20 million production line at P its Mr. Kipling bakery in Carlton, Barnsley, more than doubling capacity of its fast-selling Snack Pack cake slices. The new line marks the introduction of innovative robotic technology at the site, the creation of 80 new jobs and the wider economic benefits for Premier Foods’ suppliers including British farmers. The investment builds on the recent success of Mr. Kipling following its re-launch last year which included new packaging, advertising and promotions. The Snack Pack format of individually packed slices is now the fastest selling Mr. Kipling cake responding to consumer demand for more convenient, on the go formats. At full capacity the new production line can produce more than 300 million Snack Pack slices a year helping keep pace with growing demand. The use of advanced robotics increases the number of pack and case sizes possible, enabling greater flexibility to meet different consumer and retailer requirements. The Carlton Bakery, which celebrates its 40th anniversary this year, employs 750 people, rising to 1500 in seasonal periods. Around 80 new jobs will be created over two years, including a number of higher skilled roles, building on the company’s commitment to increase the intake of apprentices. The investment will also bring wider economic benefits given Premier Foods’ focus on sourcing 70% of its ingredients for the new slices, including wheat flour, sugar and glucose syrup, from UK suppliers and farmers. Gavin Darby, chief executive of Premier Foods, says: “Our cake business has grown significantly over the last 9 months and the additional capacity and flexibility from this new investment will 28
help us improve productivity and capture new growth opportunities.” Mr. Kipling is the UK’s leading cake brand with a 17% share of the £1 billion packaged cake market. In the six months to March this year the packaged cake category grew 2.6% in value terms while the Mr. Kipling brand grew by 11%. Market share is up 1.3 percentage points and household penetration increased by 2.2 percentage points. J
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Mr. Kipling â€“ Life is Better With Cake very child in Great Britain is familiar with Mr. Kipling of Premier E Foods Group. A few years ago, Schubert supplied the company with a packaging line for a brand new type of special cake slice packaging. The cakes can be purchased in a plastic tray comprising three individual packages. The consumer can simply separate a slice of cake, open it individually and enjoy it.
The flexible mechanical punching unit.
The lid film is sealed to the mother tray using an ultrasonic sealer.
Just a few years ago, many would have maintained that a packaging machine of this type would not be possible because it would involve too many process steps. Today, this assertion has finally been put to rest, since the Transmodul has made it possible to keep both products and packaging units under control at all times. As a result, a compact packaging machine is capable of greater efficiency than a chain of individual machines. The Transmodul The Transmodul is one of the most recently launched standard components at Schubert. It is single-axis, rail-based robot which features contactless communication with the system and contributes to the compactness of the TLM machines. Moreover, the Transmodul also reduces the mechanisms because many projects can be resolved more easily and efficiently with the Transmodul, including filling cosmetic liquids. The result is much lower space requirements and higher efficiency while increasing system output. J
Facts & Figures
Mr. Kipling â€“ life is better with cake.
Cake slices with this special packaging were well received by the market, which is why Premier Foods needed a second packaging line capable of forming 2- and 4-count packages, in addition to the 3-countpackages. Another requirement was the in-line thermoforming of the mother trays to reduce the level of logistics required.
* 1,000 pieces of cake per minute * In-line thermoforming of mother trays * Fully automatic product buffering for 20 minutes * 2-, 3- and 4-count packages * 1-, 2- or 3-layer sleeves * 15 different shipping cartons * Conversion time of approx. 30 min * Two people can handle operation of the line.
The consumer can simply separate a slice of cake, open it individually and
The thermoforming unit for the mother tray.
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New Range of Robotic Palletisers From OCME CME of Parma, Italy, has been manufacturing palletisers O and depalletisers for 50 years and they offer a wide choice of traditional and robotic solutions. The trend in automatic palletising technology is certainly towards robotics, however OCMEâ€™s experience is that some applications are more suited to the use of traditional palletisers. This is the reason why OCME offers both traditional and robotic palletisers. A variety of factors determine the best solution for a project; for example, the handling characteristics of the product, the stacking patterns, the production rate and the space available for the equipment. New from OCME in 2015, is a range of robotic palletisers, designated by the model name Pegasus Alpha. The range consists of 6 standard layout configurations for handling one or two different products simultaneously. By offering their customers a choice of standard configurations, OCME can offer quicker delivery times, shorter installation times and lower prices than their range of customized robotic palletisers.
Pegasus Alpha can be used for a wide range of applications and is versatile enough to handle cardboard boxes, shrinkwrapped trays and film bundles. The gripper head is designed to handle pack sizes from 150/160 to 410/610mm and weight ranging from 1kg to 25kg. Configured with a single infeed conveyor, the typical palletising speed is up to 20 packs/min. With a dual input, the speed increases to 30 - 40 packs/min. For those applications requiring customized solutions, where Pegasus Alpha is not suitable, OCME design robotic palletising systems specifically to meet the needs of their customer. Examples can be found throughout the beverage industry where high speeds, great flexibility and fast size changeovers are essential. OCME have experience in designing robotic palletising systems with gripper heads capable of picking complete layers
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of product at speeds of up to 8.5 layers/min. To meet these high throughputs, it’s not uncommon to see several robots working together within the same system; for example, layer preparation, layer placing, picking empty pallets, placing interlayer pads, etc. All OCME solutions feature the extensive use of servo motors for greater speed, accuracy, repeatability and lower maintenance. They also offer a choice of either Siemens or Rockwell PLC. A useful tool included on both their traditional and robotic palletisers is the Programme Maker software. This runs on the
HMI PC and allows the operator to create, modify, simulate, store and run new palletising patterns. By simply entering the basic data about the product, the software presents the operator with a choice of patterns that are possible on the machine. The operator can select the most appropriate pattern, or create his own, before running the simulation to determine the palletising speed. The new pattern can then be stored and run. For further details of OCME equipment, visit www.ocme.com. J
Bosch Launches New Robotic Packaging Portfolio osch Packaging Technology, a leading supplier of robotic techB nology for primary and secondary packaging solutions, has fully redesigned its Delta robotic packaging portfolio to give food producers more versatility and performance. Based on an open frame platform featuring the latest GD series Delta robot, the new portfolio offers modular and standardized robotic solutions with application-specific options. Bosch’s enhanced D3 robotic platform handles higher payloads up to three kilograms and ensures faster speeds to increase pick rates. Designed for quick changeovers, simplified use and maintenance, it allows manufacturers to achieve a lower total cost of ownership (TCO) and a shorter return on investment (ROI) period. “With the launch of the D3 robotic platform we offer a highly versatile portfolio of primary and secondary packaging solutions. The new modular and scalable design enables multiple robot solutions by combining standard machine modules. Through increased modularity Bosch demonstrates its commitment to engineering customer-focused technologies that enhance productivity, reduce TCO and enable a faster time to market,” says Marc de Vries, sales director, Bosch Packaging Technology. “Combined with added flexibility, the platform helps our customers leverage robotic automation to generate competitive advantage.” The D3 platform includes several features that improve packaging efficiency and enable manufacturers to meet the growing demand for diverse products, such as biscuits, cereal bars, choco-
late, confectionery treats, baked goods and vertically packaged products. “Many customers look for robotic packaging equipment that can handle a great variety of products on the same machine,” says Marc de Vries. “By increasing performance, payload capability and working volume height as well as offering optional fourth and fifth axes for improved product rotation, we have significantly extended the application range.” With the industry-leading Gemini 4.0 Delta robot controller and software new product formats can be simulated offline without the need for physical products, reducing set-up and installation times. The simplified platform design also promotes faster changeovers and ease of use. Another advantage of the D3 platform is the hygienic and open frame design with fewer parts and better visibility of moving elements which helps manufacturers comply with increasingly stringent food safety regulations. The control cabinets are positioned on top of the machines, enabling operator access from both the front and rear, which reduces cleaning and maintenance times. Being a part of Bosch’s Module++ single-source provider concept for simple and modular line automation, D3 robotic solutions can be easily integrated with both Bosch and third-party primary or secondary packaging machines. The D3 platform has been designed to increase flexibility for small- and medium-sized as well as multinational companies. The new portfolio offers flexible and scalable robotic solutions that allow customers to adjust quickly to current production needs and to reach future manufacturing goals. J
FOOD & DRINK BUSINESS EUROPE, AUGUST 2015
I FROZEN FOODS
McCain Foods GB Invests in Innovation and Sustainability Continual investment in product innovation and maintaining an efficient and sustainable field to fork supply chain is helping McCain Foods GB to consolidate its leadership of a challenging frozen potato products market. High Level of New Product Development McCain Foods GB has maintained a high level of new product development into 2015. It has already launched six new products. It has introduced frozen mashed potato, which can be heated up in the microwave in three minutes. Containing real mashed potato, McCain Mash Machines are made in the shape of trains, planes, cars and boats, and are targeted at the children’s sector. McCain Foods GB has maintained a high level of new product For adults, the company has development into 2015. launched McCain Spicy Peri Peri Fries and McCain Steakhouse Ridge lion, according to Euromonitor. Cut Fries, which emphasise the big, bold During 2014, McCain, which is the flavours available at casual dining restauConstant Innovation McCain Foods GB is committed to con- brand leader in frozen potato products, rants. tinuous innovation in order to deliver launched a new range of oven baked chips, McCain Foods GB has also added two both variety and quality to both its retail which can be cooked in just five minutes. variants to its existing portfolio - new and and food service customers. New product Supported by impactful advertising through improved McCain Croquettes and McCain development allowed the McCain brand television and billboard campaigns, American BBQ Wedges - designed to stimMcCain’s ‘Ready Baked’ jacket potato prod- ulate new consumer interest to the categoucts continued to gain popularity with con- ry. sumers and sales grew by 6% to £24 million. “The new products will not only bring “The huge growth of the jackets sector new shoppers into the frozen potato categosince launch has demonstrated that with the ry but drive interest and excitement by right product solution consumers are willing meeting demand for the latest out of home to change their cooking habits, with many trends in the home, as well as offering qualshoppers converting from preparing jacket potatoes from scratch to the convenience of frozen Ready Baked Jackets,” explains Mark Hodge, marketing director of McCain Foods GB. The UK frozen potato products market has proved resilient during the economic downturn and the horsemeat scandal that McCain Foods GB has launched frozen mashed affected other sectors of the frozen foods potato, which can be heated up in the microwave industry. Demand for frozen potato prodin three minutes. ucts, including chips, croquettes and to increase both sales and volumes last wedges, has remained high as they are year within the highly consolidated UK regarded by consumers as being convenient frozen potato products retail market. and offering good value to money. Potatoes Buoyed by the leading branded players remain a key component of the national diet introducing successful new products, the and feature in more than 10 billion homeMcCain’s ‘Ready Baked’ jacket potato products frozen potato products market grew by prepared meals each year, the equivalent of continued to gain popularity with consumers. 5% in 2014 to reach sales of £822 mil- 3.3 meals per person per week. cCain Foods GB is the market leader in both the UK retail and food service industries in frozen potato products such as French fries, potato specialties, and appetisers. Operating five factories in England and a seed potato business at Montrose in Scotland, McCain Foods GB posted pre-tax profits of £54.7 million on turnover of £444.8 million for the year ended June 30th 2014. The company invests continually in new technology in order to meet customer demand for more varied products while minimising manufacturing costs and its environmental impact.
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sold to retailers and food service operators in more than 160 countries around the world. Sustainability In line with the corporate ethos of its Canadian parent group, McCain Foods GB has established a sustainable business model, encompassing a vertiMcCain Foods is the world’s largest manufacturer of frozen French fries and cally integrated farm to a global leader in frozen foods. fork approach. ity, value and convenience,” says Mark Processing over 10% of the national Hodge. potato crop, McCain Foods GB forward contracts the growing of specialised variGlobal Leader eties of potatoes with UK farmers, supplyOf course, McCain Foods GB’s product ing them with seed potato. The company innovation activities benefit from being fosters long-term partnerships with its able to draw upon the resources of a multi- potato growers and has encouraged the national parent group. It is part of establishment of grower groups, so they Canada-based McCain Foods, the world’s can benefit from economies of scale. Indeed, the sustainable sourcing of its largest manufacturer of frozen French fries and a global leader in frozen foods. raw materials allows McCain Foods to Employing 18,000 people and operating demonstrate full traceability through the 50 production facilities on six continents, value chain and to prove the cultivation privately-owned McCain Foods generates techniques used have minimal impact on annual sales in excess of C$6 billion the environment. Similarly, McCain Foods GB has also (Eur4.4 billion). The group’s products are
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invested significantly in reducing the carbon footprint of its manufacturing operations while also improving efficiency. For instance, over £10 million has been invested in green initiatives at its Whittlesey site, which is the largest chip factory in the UK. The site is the first major UK food plant to be powered mainly by wind.
The wind turbines can deliver a total of 9 megawatts. The plant also uses a covered anaerobic lagoon for the treatment of primary wastewater while also generating electricity by burning the methane gas produced during the process. Since 2007, 70% of the electricity at Whittlesey comes from green energy. J
inis Foodprocessing Equipment BV is a F family business that has been supplying solutions to the food industry for almost a century. Always striving to improve and exceed the expectations of its customers’ requirements, Finis continuously invests in product development and new innovations. Amongst these are the new way to peel root vegetables and a completely automatic onion peeling and processing line, using vision technology. The KGSCH is a world-class continuous peeling machine for potatoes and other root products. Due to the machine design, it uses less water and the product’s cell structure is kept intact, resulting in an end product with a longer shelf life and a hand
peeled look. It is perfect for any fresh peeling process and an extremely useful addition to any high volume steam peeling line as a reject peeler where it has been proven to give serious yield advantages in the process. To complement this, Finis also supplies extremely accurate potato quartering machines using vision technology and an audio detection unit to reject stones, lava rock, wood, glass etc. from process flows. Finis is also proud to introduce the first Automatic Orientation System for onions in the world. This new innovation can feed a peeling line without the need of manual labour. Adding this new way to top and tail an onion not only means less labour but
also significant yield advantages. Finis is an acclaimed worldwide leader in providing complete end to end processing projects. When working in partnership with customers, Finis is able to use Computer Aided Design (CAD) to visualise and deliver bespoke solutions. Finis has formed partnerships with other world renowned manufacturers to enable the company to offer turn-key projects. Each supplier has been carefully selected based on their knowledge, experience, quality and reputation. For further information contact Finis Foodprocessing Equipment BV.on Tel +31 (0)315 695569, E-mail firstname.lastname@example.org or visit www.finis.nl. J
DuPont Diagnostics to Introduce Smaller-Footprint BAX® System Instrument uPont Diagnostics, a DuPont Nutrition D & Health business, is introducing the DuPont™ BAX® System X5, a new PCRbased testing platform and the newest addition to the award-winning BAX® System family. The BAX® System X5 instrument and associated accessories, including the automated DuPont™ Thermal Block for sample preparation, offer the same fast, accurate and easy-touse pathogen detection solution that customers have come to expect from the BAX® System method, but in a smaller lightweight construction to provide greater testing flexibility. “Our goal in developing the BAX® System X5 platform is to bring the advanced, genetics-based PCR technology of the BAX® System method to
customers who may not have a need for the full 96-sample capacity of the BAX® System Q7 instrument,” says Alain Minelli, DuPont Diagnostics marketing manager. “Now food companies, contract
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testing laboratories and government agencies can use the BAX® System X5 to perform reliable, accurate pathogen testing in a way that best suits their testing volume, laboratory space and financial requirements.” Initially the BAX® System X5 platform will be available for testing a variety of food and environmental samples for Salmonella, E. coli O157:H7, Listeria species and L. monocytogenes. These BAX® System X5 PCR assays will provide nextday results for most sample types after a standard enrichment and about 3.5 hours of automated processing in the BAX® System X5 instrument. Further development is under way to expand the new platform to include additional PCR assays. J 35
Energy Optimisation With Scanenergi Solutions By Julian Hall, Strategic Account Manager – Food sector, Scanenergi Solutions here are fewer industries that operate with the intensity of food and beverage companies. Production output is for most the key T determinant of business success, but when operating in an environment when profit margins are tight, competition is strong and product quality and supply chain effectiveness are a given, there is little available capacity to embrace other initiatives.
tion. Despite the introduction of UK legislation in the form of the Energy Savings Opportunities Scheme (ESOS) providing a compliance driver to identifying energy savings opportunities, without the requirement to implement the identified findings, places the emphasis on the company to find the appropriate mechanism for realising savings.
Energy Optimization – ‘A No Brainer’ Energy optimisation is one area within the sustainability agenda that should fall into the ‘no brainer’ category, as it is one of the most effective ways to drive cost out of the business whilst having a positive impact on operating margins.
When we cut our energy consumption, we also cut our costs and that makes us more competitive in a marrket with constant price wars and an ongoing struggle for market share. – Pedro Moreira da Silva, Prroduction Director, Unicer, Portugal. A lot has been written, said and done in this area over the years. In fact it is expected that when Scanenergi Solutions engages with a site on a project aimed at driving energy and water waste out of the business, it is rare that a company hasn’t already realised some success stories in this area, whilst inevitably the list of further opportunities tends to be longer. So, why are so many companies still not maximizing the savings potential from energy and water? Lack of available resources, limited know-how and restricted capital are typically the underlying reasons why many factories are unable to fully optimize their energy and water consump-
Ideally we would have the money, time, and resources to optimise our energy consumption. But we don’’t have that or the focus to do it ourselves, so we turned to Scanenergi. – Pedro Moreira da Silva, Production Director, Unicer, Portugal. 36
So, why are Scanenergi Solutions so confident we can help? Over the past 15 years we have been assisting food and beverage companies in realising their potential for energy savings. Actually, we are proud to say that our customers cut up to 20% off their annual energy costs, whilst gaining control and insight over their energy consumption and save the environment tonnes of CO2. We acknowledge and appreciate the reality that businesses have many reasons for not maximising the potential from energy efficiency, and have therefore developed a project model (EnSave®) that encourages rather than prohibits implementation. Our primary role is to identify energy savings potential, be responsible for the successful implementation and be the catalyst of securing sustainability. We focus on industrial processes based on a “follow-the-money” philosophy. In other words, we focus on where our clients get most savings for the money. This results in a short payback time typically within 3 years and a high internal rate of return (IRR) of 25-40%. The EnSave® model is designed to ensure optimum implementation of energy saving projects with focus on employee involvement (processes & behaviour), systems (management systems, meters and software) and technology. Our services include energy audits and the implementation of energy saving measures based on a savings guaranteed philosophy. A very important tool in the EnSave® model is our energy management information system, Montage™, which captures, validates, analyses and reports energy performance from equipment level through to management reporting. This process is an integral part in raising awareness amongst the staff and providing a catalyst for changing behaviour.
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Energy savings – guaranteed With over 10 years’ experience working with major businesses we have developed a proven and sustainable methodology for optimising consumption and reducing energy costs through three focus areas:
ESCO and Energy Performance Contracting As an Energy Service Company, we guarantee the energy savings performance, we offer. Put simply, if we can’t meet the savings expectations we initially estimated, we pay the difference. In cases whereby we overachieve and deliver more than the expected levels of savings, both parties benefit. Therefore, the risk is on us and not the customer.
EnSave is neither a Unicer project or a Scanenergi project but a kind of joint venture where both paarties feel ownership and are willing to fight for it. – Pedro Moreira da Silva, Production Director,, Unicer, Portugal.
• People: reducing energy use through employees, changing behaviour and mind-set. • Systems: using state-of-the-art software to obtain insights into consumption and potential savings. • Technology: upgrading equipment and improving processes. How we combine these three aspects depends entirely on customers’ needs. But in all cases, our goal is the same: to reduce organizations’ energy costs by applying our experience and our expertise to their business. Read more at scanenergi.com
Energy Performance Contracting (EPC) is financing alternative to the standard payment model. Lack of initial capital to perform energy efficiency work is not an obstacle to get started. The concept uses cost savings from reduced energy consumption to repay the cost of installing energy conservation measures. This way the customers get a positive cash-flow throughout the project and avoids the need to find and plan for capital funding. Our ‘no cure – no pay’ guarantee also applies, with multi-year performance guarantees built-in to incentivise sustainable energy savings initiatives. J
FOOD & DRINK BUSINESS EUROPE, AUGUST 2015
Testing Times Ahead For European Poultry Processors The EU poultry industry has encountered a number of major challenges in recent years with profit margins being squeezed between high feed costs and weak pricing power, compounded by animal welfare and sustainability issues and avian influenza outbreaks. lthough the outlook remains promising with the EU poultry market projected to expand by 10% between 2014 and 2015, processors still face testing times ahead. Being optimally efficient and market focused are crucial for EU poultry processors as feed prices are expected to remain volatile and consumers to remain price conscious and focused on ‘value to money’. According to Rabobank, the best-in-class EU poultry companies now command EBITDA margins of 7-10%, down from a few years ago when margins were above 10%. Margins of the worst-in-class companies still remain below zero.
Ten Golden Rules For Winners in EU Poultry The ongoing turbulent outlook for the EU poultry industry will further challenge the
position of individual poultry companies. The top 20 EU poultry companies by volume are listed in the Table.
Top 20 EU Poultry Companies by Volume, 2015 Company 1 LDC 2 2 Sisters Food Group 3 Plukon 4 Wesjohann 5 Veronesi 6 Moy Park 7 Amadori 8 Sada 9 Cedrob 10 Gastronome 11 Rothkotter 12 Doux 13 Heidemark 14 Sprehe 15 Cargill Meat 16 Faccenda 17 Scandi Standard 18 Agrofert 19 Aminex 20 Indykpol
Countries France, Spain, Poland UK, Netherlands, Poland Netherlands, Germany, Belgium Germany, Poland Italy UK, France Italy Spain Poland France Germany France Germany Germany UK, France UK Norway, Sweden, Denmark Slovakia, Czech Republic Poland Poland
Source: Rabobank, 2015
FOOD & DRINK BUSINESS EUROPE, AUGUST 2015
Rabobank believes that, under these circumstances, the differences between winners and losers will only grow. A rethinking of individual companies’ strategies is now more essential than it has ever been before, according to Rabobank’s ‘Poultry in Motion’ report. Rabobank has devised ‘10 Golden Rules For Winners in the EU Poultry Industry’ – see Panel. With the poultry industry and its market landscapes changing faster than ever, the emerging challenge for companies will be to adjust their strategy and business models. Major Shift The EU poultry industry has historically been a local business characterised by specialist companies in each European country. However, Rabobank expects the EU poultry market to undergo a major shift in the next decade from a national to a regional and eventually to a pan-European market structure. The basis of this shift should be formed by trade relationships in fresh poultry, which is typically efficiently traded in an action radius of 600-1,000 kilometres for the production base, according to Rabobank. This will require exploiting economies of
and Rothkotter. Wesjohann has combined both approaches, according to Rabobank.
scale through rationalisation from an international perspective and the creation of optimal flexibility by being able to shift between different processing bases to protect against volatility in supply and demand. For instance, HPAI outbreaks in Europe since the fourth quarter of 2014 resulted in supply chain problems for companies reliant on a single production location. But companies such as Plukon and 2 Sisters Food Group, benefited from access to different production locations both in a single country and internationally. Companies like LDC, 2 Sisters, Plukon, Scandi Standard and Agrofert, have used acquisitions to build up a regional presence. Greenfield investment to develop local growth has been the strategy adopted by processors including Moy Park, Cedrob
Building Scale The EU poultry industry landscape is already changing rapidly as the major players move to exploit economies and other benefits of scale. The three biggest companies in the EU – LDC, 2 Sisters and Plukon – have doubled total production volumes during the last four years, as they have expanded with the aim of becoming leaders in their chosen key markets. “But the industry needs to acclimatise to a new market reality, with ongoing social concerns about animal welfare and sustainability, an ongoing weak economic environment, volatile input prices and a stronger and more savvy and price-driven customer base,” comments Nan-Dirk Mulder, senior analyst at Rabobank. “This new reality requires a strategic repositioning of individual companies, and it will also require significant investments.” Rabobank believes that the ‘10 Golden Rules for Winners’ model could help individual companies to position themselves in this changing industry landscape and to remain competitive in the future. This model could help individual companies to come up with a road map which they can further develop in the next five to ten years. J
10 Golden Rules For Winners in the EU Poultry Industry 1 The customer is king. Invest in market intelligence and product development. 2 Be the category captain. Invest in #1 positions as the preferred supplier of winning supermarkets, QSRs and food companies. 3 Consolidate your market, think outside country lines with a fresh 1,000 km sales radius as base. 4 Scale up or find a niche. The middle segment will disappear and companies will need to choose. 5 Optimal efficiency of the whole value chain is more important than ever. 6 Improve your value chain model to fit the new market reality. 7 Participate in social debate and be prepared for NGO pressure. 8 Optimise the value of individual cuts and offal streams to increase revenues and profitability. 9 Exploit your industry and client knowledge, and follow your customers. Expand in new markets. 10Reconsider your capital structure. Family ownership has been the dominant model, but does it fit with future challenges? Source: Rabobank, 2015.
Moy Park Sold For $1.5 Billion oy Park, one of Europe’s largest poulM try processors, is being sold by Brazilian meat group Marfrig Global Foods
UK’s largest producer of organic and free range chicken. Moy Park supplies leading retailers and to JBS, another Brazilian meat business, for food service operators throughout the UK, US$1.5 billion (Eur1.33 billion). With 13 Ireland and Europe with a range of high main production sites across the UK and quality, fresh, coated and added value poulEurope, employing over 10,600 people, try products. In 2014, Moy Park increased Northern Ireland-based Moy Park is the revenue by 2% to £1.42 billion although profit before tax and exceptional slipped by 0.4% to £32.5 million. Underlying profit before tax rose by 34% to £43.8 million. Based in Brazil, JBS is a global leader in beef, lamb and poultry processing and is also heavily involved in pork production. With over 200,000 employees worldwide, the company has 340 production units and businesses in the foodstuffs, leather, biodiesel, collagen, metal packaging and cleaning products industries. Operating on all consumer marNorthern Ireland-based Moy Park operates 13 production sites kets, JBS is the world's largest across the UK and Europe and employs over 10,600 people. exporter of animal protein, selling FOOD & DRINK BUSINESS EUROPE, AUGUST 2015
JBS is the world’s largest meat packer.
to over 150 countries. The acquisition of Moy Park will further JBS’s strategy of expanding into European markets. The disposal will reduce Marfrig’s debt burden and is in line its ‘Focus to Win’ strategy, which aims to sharpen the company’s focus on the food service segment and on beef exports from Brazil. The transaction is subject to approval from competent authorities, including antitrust bodies in the European Union, and is expected to be completed by the end of 2015. J 39
Faccenda Foods Named ‘Manufacturer of the Year’ accenda Foods, one of the UK’s leading F food companies, has won the Manufacturer of the Year award at the Meat Management Awards. These annual awards recognise excellence throughout the meat industry and aim to set a high benchmark for all of the UK’s meat manufacturers All meat producers were eligible for this award, which highlights companies that have developed successful food supply chains, providing the very best products for
Faccenda Foods has developed into one of the UK’s largest poultry businesses.
UK retailers. Faccenda Foods won for its sound business principles, focus on partnerships to develop innovative products and commitment to people at the heart of its strategy. Faccenda Foods is a vertically integrated food business with a turnover of over £500 million and employs 3,500 people across its UK chicken, turkey and duck operations. Following the full integration of its chicken and turkey operations to become Faccenda Foods in 2014, the business has recently completed a major factory expansion programme at its Telford facility and has recently purchased the Cherry Valley Foods duck business. Faccenda Foods is wholly owned by the Faccenda family and has been successfully supplying the UK consumer for six decades. Andy Dawkins, managing director of Faccenda Foods, comments: “We are delighted to have won Manufacturer of the Year award at the Meat Management Awards. This wouldn’t have been possible without the dedication and hard work from all teams across the whole of our business. For me it’s a recognition that we set out to do the right things in the right way and deliver on our promises. We are proud to have been recognised and we are excited about our future.” Earlier in the year, Faccenda Foods won the Processor of the Year award at the Pig and Poultry Marketing Awards. Faccenda Foods has been at the forefront of efforts to tackle the problem of campylobacter in fresh poultry. The company has adopted a new factory process called
Andy Dawkins, managing director of Faccenda Foods.
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. J
UK Poultry Prices Rise only 1.6% on Average a Year Over Almost Three Decades ew statistics show that UK poultry N prices have risen at the slowest rate of nine different meat and fish categories, at an average rate of 1.6% per annum over the last 27 years. Data from the British Office for National Statistics revealed that since January 1987, poultry prices have risen by just 44.3% to December 2014. This compares to an increase of 118.5% for beef, 136.6% for pork and 155.4% for fish the same period. Prices for lamb and fresh fish have seen
the largest increase in the period analysed, with an average annual rate of 6.9% and 6.4% respectively. Andrew Large, chief executive of the FOOD & DRINK BUSINESS EUROPE, AUGUST 2015
British Poultry Council, comments: “The small increase of poultry prices is explained by regular improvement in industry efficiencies over the past 27 years that are passed on to consumers. Poultry meat remains the best value meat for families in the UK and makes a strong contribution to the country’s GDP. We are proud that poultry makes up almost half the meat eaten here in the UK and look forward to continuing to produce high-quality, nutritious and affordable food." J 41
Cargill Invests £35 Million to Upgrade UK Poultry Business Now under a newly installed leader, Cargill’s European poultry business is currently two years into a three year £35 million investment programme designed to transform its flagship site at Hereford in England into one of the most efficient and competitive poultry processing plants in Europe. argill’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. The business operates processing facilities in the UK, France and Russia, as well as a sales division based in the Netherlands and employs over 2,800 people across Europe. 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.
Cargill’s European poultry business operates processing facilities in the UK, France and Russia.
Hereford has been the base for Cargill’s poultry business in Europe for more than 50 years. In addition to the Hereford site, Cargill also has production facilities in Wolverhampton and Newent in the UK. £35 Million Investment 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 investments will enable Cargill to expand its capacity to process and supply fresh UK reared chicken. The first phase, which has now been completed, entailed the introduction of controlled atmosphere stunning, upgrading the bird reception area, expanding chiller capacity from 1.35 million birds to 2 mil-
lion birds and the installation of state-ofthe-art robotic and cutting technology in the Hereford facility. Work has now commenced on a new evisceration area, which is separate to where the existing one is currently housed so as not to disrupt production. Once live this state-of-the-art technology will be capable of running at higher speeds with greater efficiency, increasing capability and it also will be able to harvest additional products from the birds which had previously not been used to their full potential. Cargill is also installing UV light finished pack decontamination technology in the packing area. Further stages of the development programme are currently being considered. Technologically Advanced The installation of the latest technology, such as the 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. The project was completed in 2013 and involved the upgrade of two AMF-BX
Mary Thompson is the new head of Cargill’s European poultry business.
FOOD & DRINK BUSINESS EUROPE, AUGUST 2015
Pilar Cruz has become corporate vice president and lead of Cargill’s Strategy and Business Development team.
breast cap filleting systems and a year later a four cell RoboBatcher. Quality and yield have increased and the RoboBatcher has saved labour and reduced giveaway. In 2014, breast de-boning was revamped to create capacity. A Stork front half deboning and Marel Flowline operation was replaced with two AMF –BX Flex breast cap filleting systems feeding product to four cell RoboBatcher systems, resulting in an increase in yields. The end of the year will see the installation of two complete 13,500 bph Nuova automatic evisceration and giblet harvesting systems. With special attention to hygiene the eviscerator will be equipped with a new CIP system and other innovative features. Cargill has also been investing in energy saving and environment-friendly technologies. Since 2010, it has installed water meters, energy meters and collection and monitoring software to identify ‘hotspots’ for consumption of these resources. Constant improvements in the high use areas coupled with behavioural change programmes have led to significant reductions - a 20% reduction in water use versus volume produced (358 million litres per year saved) and a 20% reduction in greenhouse 43
Image courtesy of â€“ Meat Management Magazine
gas intensity (more than 10,000 metric tonnes of CO2 per year).
leader for Cargill’s European poultry business,” says Mary Thompson. “Pilar has done a fabulous job of Leadership Change leading this business to make signifCargill’s European poultry business icant improvements in serving our is now under new leadership followcustomers and operational exceling the departure of Pilar Cruz to lence. We still have many opportubecome corporate vice president and nities.” lead of Cargill’s Strategy and Mary Thompson elaborates: Business Development team at the “Consumption of chicken continues group’s Minneapolis headquarters. to grow in Europe (between 1.5Her replacement is Mary 2%). Chicken is versatile, nutritious Thompson, who previously led and, most importantly, delicious. I Cargill Value Added Meats to excepbelieve we have not reached the tional achievements over the past The end of the year will see the installation of two complete Nuova peak and that consumers will three-and-a-half years, such as the automatic evisceration and giblet harvesting systems. increasingly look to chicken for their successful integration of an acquisimain protein. With this trend as a tion and earning the Cargill Chairman’s ensure that our chicken reaches low temper- backdrop, Cargill’s European chicken busiAward for High Performance. atures essential for food safety,” Pilar Cruz ness will continue to identify opportunities Mary Thompson joined Cargill in 1992 points out. to help drive growth for our customers and has also served as president of Cargill’s The capital investment programme has through innovation and exceptional service North American egg business (Cargill entailed the introduction of state-of- the- art and continue to pursue opportunities to Kitchen Solutions), vice president of the robotic and cutting technology in both enhance our efficiency and effectiveness.” company’s corn milling business and led the Cargill’s Hereford and Newent facilities. Looking ahead, Mary Thompson adds: company’s dry corn ingredients group. “These technologies improve productivity, “Our focus will be on growing our business quality, efficiencies and safety of our through our third year of our capital investKey Developments processes enabling us to provide safe, nutri- ment plans, partnering with our customers, Pilar Cruz was head of Cargill’s poultry tion and affordable product to our cus- operational excellence and supply chain business in Europe since 2013. So what does tomers,” says Pilar Cruz. opportunities. Growth can come in many she regard as having been the key developDuring this period, Cargill has also forms - innovation in products and services, ments during her period at the helm? expanded its hatchery in Shobdon and now and in helping our customers tell the story “We have developed and implemented a sets 2 million eggs per week which are then of the quality of their food, for example. sound strategy that allows us to partner with distributed to over 100 contract growing We look forward to the year to come.” key customers; we are able to provide food farms. The European poultry business is part of that is safe, nutritious and affordable. Two Pilar Cruz continues: “We have developed Cargill’s global meat and poultry operayears ago we announced a £35 million capi- and introduced a robust sustainability strate- tions. In addition to Europe, Cargill has tal investment plan in our fresh chicken gy. We continue cementing the relationship integrated poultry businesses in China, business,” she replies. with key retailers in the UK, allowing us to Canada and Thailand, as well as a dedicated The expansion and upgrading of the chill- increase food security. We also continue business in Central America. Cargill opering capabilities at Hereford have enhanced partnering with over 100 farmers, improv- ates a number of global and regional animal product quality and food safety, which is ing their livelihoods.” protein businesses including beef, pork, crucial to the business. “With campylobacpoultry, value-added meats and eggs to serve food manufacturers, food service and ter, top of the agenda for poultry processors, Future Direction never before has it been more important to “I am proud to be following Pilar as the retail customers. J
British Poultry Industry Continues Strong Growth he British poultry meat industry’s contribution to UK GDP has T increased by 9% over the last year, up from £3.3 billion to £3.6 billion, according to a new analysis by Oxford Economics. ‘Economic Impact of the British Poultry Meat Industry 2015’, commissioned by the British Poultry Council, tracks the growth of the industry over the past year. Compared to last year, UK sales have increased in value by 13%, up from £6.1 billion to £6.9 billion, with exports also up 6.6% from £286 million to £305 million. The increase in production is good news for UK plc. Contribution to UK GDP is up, and tax receipts are up by 10%, £1.1 billion compared to £1 billion. The number of jobs the industry supports has also increased by more than 8%. The industry now employs 79,300, compared to just 73,200 a year ago, both directly and through its wider supply chain. BPC chief executive Andrew Large comments: “Our annual report is a timely reminder of the importance of the poultry meat industry to UK plc, supporting tens of thousands of jobs and contributing £ billions to UK GDP. We are delighted the industry keeps going from strength to strength.” He continues: “There are significant opportunities in both
domestic and export markets and we look forward to working with government to realise these potential opportunities. Key to catering to this demand will be the industry’s ability to upgrade its capital assets. That’s why we have written to the Chancellor and asked him to consider maintaining the annual capital investment allowance in plant and machinery at its current level as part of his Summer Budget next week. We appreciate there are many demands on public finances, but this would make a huge difference to the industry and help it increase its contribution to UK GDP even further.” J
FOOD & DRINK BUSINESS EUROPE, AUGUST 2015
I PROCESSING & PACKAGING
Manufacturing and Engineering Giants Gather at NEC For PPMA Show 2015 ndustry professionals are gearing up to Ipremier, visit the PPMA Show 2015, the UK’s free-to-attend complete production line event for processing and packaging machinery – set to be the largest of its kind in recent years. Returning to the NEC, Birmingham, the show will run over three days (29th September – 1st October) and will be opened by Lord Digby Jones, former director General of the CBI and Trade and Investment Minister. With exhibitor space up by more than 20 percent compared to preparations for the 2014 show, this time last year, the event is quickly becoming the processing and packaging show that must be not be missed. Justin King to Take Centre Stage at Seminar Theatre A leading figure in the FMCG and Grocery retailing sectors and former Sainsbury’s CEO, Justin King CBE is set to headline this year’s PPMA Show seminar theatre. Taking to the stage, Justin will discuss the future for multiple retailers, how the growing market shares of discount retailers will affect the supply chain and how the continued emergence of supermarket convenience
outlets is shaping the market. Also confirmed for the 2015 exhibition; Keith Thornhill, Business Manager for Food & Beverage at Siemens; Peter Evans, Compliance Engineer at the CE Marking Association; and Rhys Herbert, Senior Economist at Lloyds Banking Group. Mike Crosby, Finance Director for Burts Potato Chips, joins the line-up to examine how sales targets and profitability have soared thanks to continued factory investment and new technology. Manufacturing Skills Gap Under the Spotlight Addressing the ingredients for success and highlighting the opportunities for an engineering future in food and drink, Sam Kelly, Electrical Engineering Apprentice for PepsiCo, and Hannah Whall, Graduate Project Engineer for Nestle, will be closing the show. Representing two of the routes open to young people, including apprenticeships and graduate schemes, Sam and Hannah will share their personal stories as their build a career in the UK’s food and drink manufacturing industries. In an effort to further encourage young engineers into the sector, the PPMA Show will also welcome the return of the Ones to Watch Awards which recognises the contributions of processing and packaging professionals under the age of 35. Sponsored by Festo, the awards are chosen by a select group of industry specialists from the PPMA Group Industry awards judging panel, with colleagues being urged to nominate outstanding candidates to the PPMA Show press office. FOOD & DRINK BUSINESS EUROPE, AUGUST 2015
Demonstrating the Future Trends in Manufacturing The 2015 exhibition will also showcase the latest trends and innovations taking the industry by storm. Visitors can visit stand E90 where Festo, the innovation leader in pneumatic and electric drive technology will be exhibiting a number of its exciting new developments, concepts and solutions for the food and beverage sector. Visitors to the stand will be able to discuss how they can increase productivity in different ways by considering efficiency, simplicity, security as well as accessing Festo’s key competencies. Other confirmed exhibitors include the likes of the RM Group with ABB Limited, Yorkshire Packaging, SMC Pneumatics, SICK UK and Stemmer Imaging. Finally, the team at Lloyds Bank Commercial Banking (stand F40) will once again have a dedicated stand at the show where its team of specialists will be offering advice ranging from day-to-day banking requirements to funding for expansion to exporting. Lloyds Bank return as headline sponsors highlights the company’s confidence in UK manufacturing and in particular, Small to Medium Enterprises (SMEs). They be offering visitors and exhibitors a chance to
discuss banking opportunities following its 2014 commitment to provide lending facilities to the manufacturing sector of £1 billion per annum every year until 2017. To register your attendance at the show please visit: http://bit.ly/PPMA2015. For more information on the PPMA Show 2015, please visit www.ppmashow.co.uk or join the conversation on twitter (@PPMAshow #PPMAShow or the PPMA Show LinkedIn group.) J
Fi Europe & Ni 2015 Predicts Largest Gathering to Date For Those Sourcing Food and Beverages Ingredients ith ever-changing and more complex consumer trends, W greater need for safer and healthier food and beverages and higher demands to use purely natural ingredients, today’s food and beverage professionals need greater access to innovative reformulation solutions, new, tastier and better quality ingredients and greater industry thought-leadership. For more than 25 years Fi Europe & Ni has provided the world with the leading food and beverage ingredients sourcing platform and in 2015 it will take place in Paris from 1-3 December 2015. In fact over 25% of all annual ingredient procurement budgets for food and beverage manufactures are influenced by a visit to Fi Europe & Ni making Fi Europe & Ni one of the most influential and important 3 day event for the industry. Returning to Paris Fi Europe & Ni is returning to Paris for a number of reasons. France has the second-largest economy in Europe, in nominal figures, and is the third-largest food market on the continent, behind Germany and the UK. In addition, France is home to 13,500 food and beverage businesses, which generate more than Eur147 billion in annual revenue and Paris’ strategic geographic positioning only enhances global food and beverage trade. It is therefore the perfect location to bring the food and beverage industry together. Over 1,400 ingredient suppliers have already been confirmed to exhibit at Fi Europe & Ni, including global powerhouses such as Roquette, Cargill, Brenntag, ADM, FrieslandCampina, DSM,
Naturex, and many more. Leading European food and beverage manufacturers have also already confirmed their attendance including Lactalis and Barry Callebaut. Best and Biggest Show to Date Leading event organiser, UBM, is predicting a record year for the Paris edition. “Fi Europe is a truly global meeting place for profes-
sionals – in 2015 we expect over 27,000 attendees, all of who will be looking to make connections with new business partners and suppliers, as well as learn about the latest innovations shaping their industry. Fi Europe has proven to be the most successful platform for companies who want to successfully position themselves in the vibrant and ever-growing food and beverage market,” says Brand Director, Richard Joyce, who is anticipating the best and biggest show to date. Innovation Along with renowned ingredient suppliers, Fi Europe 2015 will also offer thought-leadership and new ingredient innovations showcases. This year will see the return of the New Product Zone which displays the latest products and innovations and gives an inside scope of what is predicted in the future. The Innovation Tours will provide insight on Clean Labelling, sugar and salt reduction solution providers – Fi Europe cataloque. The Global Market Forum will provide workshops and educational seminars surrounding key industry topics, conducted by industry thought-leaders such as EAS, Euromonitor, NVC, Leatherhead, Innova Market Insights. The Innovation and Ingredients Hub will allow exhibitors to present the latest innovations, cutting edge technology and product opportunities. The renowned Food ingredients Excellence Awards are presented each edition, recognising the leading ingredient manufacturers and their latest innovations. The event is co-located with the Food ingredients Europe Conference, which covers issues currently faced by the food ingredients industry and will provide crucial insights into leading scientific innovations, winning marketing strategies and explore the hottest ingredients trends driving new product development and consumer spending in the F&B industry. Stay ahead of the curve by registering online now to secure free entry to Fi Global’s biennial flagship event, for more information about Fi Europe & Ni 2015, please visit: www.fieurope.eu/PRregister. J
FOOD & DRINK BUSINESS EUROPE, AUGUST 2015
PureCircle Unveils New Family Of Stevia Ingredients For Category Taste Breakthroughs ureCircle has announced a new line of P stevia ingredients that delivers taste innovation surpassing other options available today. PureCircle Matrix Solutions is a new family of stevia ingredients that have been optimized for specific category applications and performs more similarly to sugar enabling deeper calorie reductions.
Jason Hecker, PureCircle’s President of Group Sales and Marketing, says: “Our tailored approach to innovation is unique in the industry. Matrix Solutions brings together more than a decade of PureCircle research and development and offers the very best of taste innovation to our cus-
tomers.” The PureCircle Matrix Solutions family includes new stevia ingredient Sigma-T, an ingredient with a clean sweetness profile, reduced astringency and bitterness and a sweet aftertaste that performs parity to sugar at mid-level sugar reductions. It joins the first product in the Matrix Solutions Family, Sigma-D, a dairy specific ingredient with a clean sweetness profile and preference to Reb A on key attributes, such as bitterness and licorice aftertaste. It has enabled customers to achieve no sugar added solutions with natural-origin, zero calorie sweeteners for the first time and was launched at Health Ingredients Europe in December 2014. “The ingredients significantly outperform first generation Reb A solutions and come from our deep understanding of steviol glycoside research,” says John Martin, PureCircle’s Global Director for Technical Development and Innovation. “To see them perform similar to sugar on key attributes in our sensory panels is really an accomplishment.”
Unbar Rothon Unveils New Autumn Flavours ward-winning flavours house Unbar Rothon is challenging food manufacturers to A spice up their Autumn offer with a new and exciting range of flavours for meatballs and stuffings. Top of the taste parade is a fragrant sweet orange and tart cranberry mix. Other tempting newcomers are leek and black pepper, red pepper and shallot and a classic sage and onion with a significant hit of black pepper. At the same time the third generation Essex family company has unveiled six innovative new sausage seasonings – two of which (Smokey Garlic & Thyme plus Parsnip Honey & Thyme) are vegetarian friendly. Also new are memory-jogging cinnamon flavoured pork & toffee apple plus a warm and spicy pork and mango chutney. A sweet and spicy pork, apple, leek and chilli mix plus a spicy apple and black pudding (seen as man food) complete new range. “We recognise that it is all too easy for an industry to become attached to the familiar and get stuck in the mud,” says Unbar Rothon director Richard Rothon. “We have worked very hard to produce new and interesting ideas which will make a food offer more interesting – and profitable.” For further information visit www.unbarothon.co.uk. J 48
FOOD & DRINK BUSINESS EUROPE, AUGUST 2015
PureCircle Matrix Solutions brings together the company’s expertise in working with the stevia leaf and its proprietary, predictive modeling technology to give customers a superior stevia solution for different food and beverage categories that cuts development time by 30-50 percent. “Understanding the complexity of the leaf and how it works in a specific product applications can take up a lot of development resources and time, but these solutions take the guesswork out of stevia development,” John Martin adds. PureCircle’s food scientists at its Centers of Category Excellence have spent years working on Matrix Solutions, building upon steviol glycoside research learnings since the company’s inception. PureCircle expects to expand the family of ingredients to other categories within the next year. J
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