Food & drink business europe dec 2015

December 2015

2 Sisters Food Group moves top of the pecking order

Food & Drink Business Website:

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C o n t e n t s

- 3 M ERGERS & A CQUISITIONS

- 39 D AIRY

Coverage of British and international deals.

Ornua – The home of Irish dairy.

- 43 I RISH W HISKEY

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- 5 S NACKS & S WEETS

Sean Connolly, CEO, ConAgra Foods.

ProSweets Cologne 2016: 31 January-3 February 2016.

€10 million Connacht Whiskey Distillery opens.

P AGE 15

Ranjit Singh, CEO, 2 Sisters Food Group.

R EGULARS Processing & Manufacturing. . . . . 8, 18 & 46 Bottling & Packaging. . . . . . . . . . . . . . 21-25

- 11 B REWING & D ISTILLING Diageo is now better equipped to deliver global growth.

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Hans Luts, MD, Pinguin.

Materials Handling . . . . . . . . . . . . . . 30 & 31 PAGE 3

Stefan Descheemaeker, CEO, Nomad Foods.

Quality & Safety. . . . . . . . . . . . . . . . . . . . 32 Energy & Environment . . . . . . . . . . . 36 & 37 Storage & Logistics . . . . . . . . . . . . . . . . . 41

- 15 C OVER S TORY

Materials & Ingredients . . . . . . . . . . . . 46-48

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David Stapleton, Director, Connacht Whiskey.

2 Sisters Food Group moves top of the pecking order.

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

- 27 F ROZEN F OODS

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Production Manager: Sylvia McCarthy

Siobhan Talbot, MD, Glanbia.

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Ivan Menezes, CEO, Diageo.

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ConAgra Foods to Spin Off Lamb Weston Business ConAgra Foods has announced plans to separate the business into two independent public companies - one comprising its consumer portfolio of diverse and leading brands and the other comprising its food service portfolio of innovative frozen potato products. The consumer brands business will be renamed Conagra Brands, and the frozen potato business will operate under the Lamb Weston name.

Immediately following the transaction, which is expected to be completed in the autumn of 2016, ConAgra Foods shareholders will own shares of both independent companies. The transaction is expected to be structured as a spin-off of the Lamb Weston business.

“The decision to separate into two pure-play companies reflects our ongoing commitment to implementing bold changes in order to deliver sustainable growth and enhanced shareholder value,” says Sean Connolly, president and chief executive of ConAgra Foods.

Conagra Brands will be comprised primarily of the operations currently reported as the company’s Consumer Foods segment, which generated revenue of $7.2 billion in the 2015 financial year.

For 2015, Lamb Weston generated revenues of approximately $2.9 billion and accounted for the significant majority of the Commercial Foods segment’s 2015 operating profit of approximately $570 million.

Sean Connolly, president and chief executive of ConAgra Foods.

SABMiller’s Stake in MillerCoors Sold For $12 billion Having reached agreement with the board of SABMiller on the terms of its $106 billion takeover of SABMiller, which is expected to

complete in the second half of 2016, AB InBev has agreed to sell SABMiller’s 58% interest in MillerCoors - a joint venture in the US and Puerto Rico between Molson Coors Brewing Company and SABMiller - and the Miller Global Brand Business to Molson Coors Brewing Company for $12 billion.

The deal will provide Molson Coors with full ownership of the Miller brand portfolio outside of the US and the rights to all of the brands currently in the MillerCoors portfolio for the US market, including import brands such as Peroni and Pilsner Urquell. The sale also includes the global Miller brand, currently sold in over 25 countries, as well as related trademarks and other intellectual property rights.

Nomad Foods Completes Acquisition of Findus Group's Continental European Businesses Nomad Foods has completed its £400 million acquisition of Findus Group's continental European businesses in Sweden, Norway, Finland, Denmark, France, Spain, and Belgium, as well as the intellectual property and commercialisation rights to the Findus, Lutosa, and La Cocinera brands in the respective markets. The acquired operations include approximately 1,500 employees and six manufacturing facilities.

The acquisition extends Nomad’s position as the largest frozen food company in Western Europe, with leading market share in nine countries – the UK, France, Sweden, Germany, Italy, Austria, Belgium, Portugal, and Spain. The acquisition reunites Nomad's existing Findus-branded business in Italy with the brand in other key geographies, strengthening overall presence across the European continent. Including the acquired Findus businesses, Nomad employs over 4,300 people in 15 countries, with ten factories, and a broad portfolio of prod-

uct offerings.

Stefan Descheemaeker, chief executive of Nomad Foods, comments: "The complementary nature of our footprint and the strength of our combined brands across Europe significantly enhance Nomad's scale and competitive offering. The Birdseye, Iglo, and Findus brands have played key roles in defining the frozen food category over the past decades, and together will be better positioned to continue bringing fresh and 'better-for-you' meal options to consumers across Europe."

Stefan Descheemaeker, executive of Nomad Foods.

chief

Constellation Brands Enters Craft Beer Market With $1 Billion Deal Leading international alcoholic beverages group Constellation Brands is acquiring Ballast Point Brewing & Spirits, one of the fastest growing craft beer companies in the US, for $1 billion. The purchase of Ballast Point provides a high-growth premium platform that will enable Constellation to compete in the fast-growing craft beer segment, further strengthening its position in the highest end of the US beer market.

Constellation is the number three beer company in the US with high-end, iconic imported brands including Corona Extra, Corona Light, Modelo Especial, Negra Modelo and Pacifico.

Constellation is also the world's leader in premium wine, selling brands including Robert Mondavi, Clos du Bois, Kim Crawford, Rex Goliath, Mark West, Franciscan Estate, Ruffino and JacksonTriggs. The company's premium spirits brands include SVEDKA Vodka and Black Velvet Canadian Whisky.

Ballast Point is on course to achieve net sales of about $115 million for 2015. Ballast Point employs more than 500 employees, produces beer in four facilities

FOOD & DRINK BUSINESS EUROPE, DECEMBER 2015

in the San Diego, CA area, and sells its beer in over 30 states.

Barry Callebaut Strengthens Specialities Business in Europe Barry Callebaut, the world’s leading manufacturer of high-quality chocolate and cocoa products, is strengthening its Specialties business in Europe by acquiring the commercial beverages vending activities from FrieslandCampina Kievit for an undisclosed sum.

The transaction also includes a long-term contract manufacturing agreement under which Friesland Campina Kievit will continue to produce vending products for Barry Callebaut, such as the Satro Quality Drinks range, at its stateof-the-art production site in Lippstadt, Germany. The acquired activities represent SFr55 million (Eur50 million) of additional sales revenue for Barry Callebaut.

Arla Foods to Dispose of Nordic Juice Business Arla Foods has decided to sell its juice subsidiary Rynkeby Foods and will now initiate a sales process that is expected to be concluded by the end of the second quarter of 2016. Rynkeby Foods is the largest manufacturer of juice and cordials in the Nordic region, producing more than 150 million litres of beverages for consumers primarily in Denmark and Sweden.

“Over the past two decades Arla has sold off subsidiaries that do not have a direct link to dairy production in order to focus on our core business. Rynkeby is the last remaining subsidiary in the Arla Group not linked to milk,” says 3

M E E R R G G E E R R S S M Povl Krogsgaard, vice-chief executive of Arla Foods.

Glanbia Expands Performance Nutrition Portfolio Glanbia, the global nutrition company, has agreed to acquire USbased thinkThin for a cash consideration of $217 million.

ThinkThin has a leading range of protein enriched bars targeted at lifestyle consumers looking for wholesome, convenient and delicious snacks. ThinkThin primarily distributes its products in food, natural and mass retail channels in the US. Net sales for the twelve months to the end of September 2015 were $84 million, with a

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compound average growth rate for the previous three years of 31%.

Siobhan Talbot, Glanbia group managing director of Glanbia, says: "As a premium lifestyle nutrition product with very strong brand equity, thinkThin represents an excellent strategic addition to our portfolio of market leading performance nutrition brands. The transaction is firmly aligned with our overall growth ambitions and positions us well in the fast growing nutrition bar category as well as being value

Siobhan Talbot, group managing director of Glanbia.

enhancing for our shareholders."

ThinkThin will increase Glanbia Performance Nutrit-ion's (GPN) presence in the bar category and provide exposure to the rapidly expanding nutrition bar segment which is currently valued at $2.8 billion in US retail.

opportunities and domestic flexibility, offering access to new markets, products, technical expertise, and sharing of best practices in organic dairy farming.

Two Organic Co-operatives Form International Alliance The leading organic farmer cooperative in North America, Organic Valley/CROPP cooperative, and Europe’s leading organic dairy co-operative, the Organic Milk Suppliers Cooperative (OMSCo), have announced an international partnership with benefits for both co-operatives, their farmer-owners, and consumers around the globe.

The historic agreement, in which the two co-operatives will take a membership in each other’s organisation while retaining each co-operative’s independence, will provide international

FOOD & DRINK BUSINESS EUROPE, DECEMBER 2015

First Milk to Sell Glenfield Dairy to Graham's First Milk has agreed to sell its Glenfield Dairy business based in Fife, Scotland to Graham's the Family Dairy. The disposal of Glenfield Dairy follows a full strategic review by the First Milk board over the summer. It will allow First Milk to focus even more closely on its core businesses in hard cheese and liquid brokering.

I SWEETS & SNACKS

ProSweets Cologne 2016: 31 January-3 February 2016 Once again, over 300 companies will be presenting techniques and solutions for the production and packing of sweets and snacks at ProSweets Cologne 2016, the international supplier fair for the sweets and snacks industry.

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he challenges that the machines and the machinery constructors are faced with are increasing with the market's demands regarding the products. As such for the processing of nuts and cereals for sweets and snacks the current trend is treading new paths as far as the handling of these sensitive, freeflowing materials is concerned. Because where brittle, almond slivers, dried strawberries or yoghurt crispies are indispensable, the

refined ingredients have to be handled very carefully in the systems and machines. From 31 January to 3 February 2016, ProSweets Cologne offers comprehensive information on this important theme and the direct wire to the suppliers of techniques, machinery and technology.

The path taken by a cereal flake during the production of muesli shouldn't be underestimated. Sweet and snack manufacturers have plenty of tales to tell in this connection. The flow behaviour and transport characteristics of nuts, pistachios, chocolate crispies or dried fruit are very difficult to predict in advance. Elaborate test series of varying degrees nearly always precede the implementation of mixers, driers or other systems for handling the free-flowing goods. Mixtures that include particles of differing sizes, weight and densities prove to be particularly tricky. Some of the physical phenomenon can actually be observed at the breakfast table. If one pours muesli out of a packet, the big nuts always land on top. The reason: While pouring hollow spaces form under the larger particles. Smaller particles flow into these hollows and thus finally end up further and further down in the mixture. The phenomenon that is referred to as the "Brazil nut effect" causes the technologists considerable headaches because the prerequisite for sweets of high quality is the exact adherence to the recipes.

with cereals and pieces of fruit. Often the granular ingredients have to be carefully heated during the mixing process so that the liquid chocolate can flow into the spaces between the granular ingredients when the chocolate coating is finally applied. Hence, there is the optimal mixer for almost every application. Volumetric plate metering devices ensure the exact supply of cereals, dried fruit and nuts in the Conbar bar manufacturing systems of Sollich. It not only enables rectangular shaped products to be produced, but also bars with different cross-sections. The SnackFix by HosokawaBepex is the easiest way for manufacturers to get started in the automatic bar production sector. The system for the production of fruit bars consists of just two components. The cereals are continually mixed with the binding agent in the processing unit. After the mixing process, the mass is moulded into an endless carpet by two calibrating rollers and cut into the desired product width.

A Coat For Crunchy Granules Crisps lend chocolate and bakery products a crunchy effect and produce interesting colour effects in ice-cream. However, the crunchy granules first obtain their characteristic properties after the so-called coating process. It is always about coating the cereal extrudate with a layer of chocolate, yoghurt cream, caramel or fruit mass. The coating protects the crisps and retains their crunchiness in the end product. Fluidised bed systems or coating drums are the appropriate equipment for the coating process. Predominantly, the size of the particle to be coated is decisive for the choice of process.

Whereas for particle sizes under one millimetre, fluidised bed systems are the standard choice, coating drums are used for larger products. So that the crisps don't stick together, liquid nitrogen is conducted directly onto the product bed. The cryogenic gas allows the applied mass to crystallise evenly.

Segregation-free on the Way to Becoming a Muesli Bar They are the first choice for between-meal hunger: Sweet bars filled FOOD & DRINK BUSINESS EUROPE, DECEMBER 2015

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Packed in Small Target Weights Whether pure or as a fruit and nut mix - cashew nuts, crisps and dried fruit are packed inside bags, plastic cups or often in cans.

When six or more components are mixed together, modern multiple-head scales ensure the desired mixing ratio. Suitable for small target weights, the solutions by Ishida, Multipond and Yamato that are being shown at ProSweets Cologne can also accurately weigh oily or fragile products. The multiple-head scales work using the part quantity weighing principle, which feed the materials to the weighing pans that are arranged in pairs. The computer chooses the combination from these that is closest to the filling weight. An additional ring of booster pans enables the intermediate storage of part quantities already weighed. A sophisticated vibration control ensures a uniform product flow.

Whether to improve the recipe, for the introduction of a new product or if the packing format is altered - the right equipment is decisive when processing free-flowing goods. At ProSweets Cologne the focus is on processing and packing systems, which enable fast retrofitting and easy cleaning. They allow the manufacturers to keep up pace with the demand on the sweets market.

"Power Nuts & Cereals" Companies whose product portfolios include nuts, seeds, cereals or grain will be presenting at the "Power Nuts & Cereals" special event. In addition to various types of nuts and almonds, the product range also includes the super food ingredients quinoa and chia.

This important theme will also be picked up on in the scope of the supporting programme in the form of lectures. The "Speakers' Corner" offers exactly the right location for this: In the midst of the trade fair action, expert speakers will highlight among other things the new product trends and their impact on the manufacturing processes.

In conjunction with ISM, the international fair for sweets and snacks, which is being held simultaneously, ProSweets Cologne covers the entire value chain in the production of sweets and snacks - an internationally unique constellation. The conceptual sponsors of ProSweets Cologne are the Federal Association of the German Sweets Industry (BDSI), Sweets Global Network (SG), the German Agricultural Society (DLG) and the Central College of the German Sweets Industry (ZDS). For further information visit www.prosweets-cologne.com & www.ism-cologne.com. J

I INNOVATION

Snowbird Rolls Out the Spherical Sausage t was the Greeks who earned the accolade Iyears for inventing the sausage more than 2,500 ago and since then it has stood the tests of time as one of the world’s ultimate convenience foods. Internationally, thousands of recipes have been devised, including localised delights like Lincolnshire, Cumberland, Bologna, Lyons and Berliner and, almost without exception, the sausages have been made in links of varying lengths and thickness encased in a skin which might or might not be natural.

Despite this lack of invention, innovation and enterprise it is estimated that sausages feature in a least half a billion meals in this country every year. Today, those innovative brains in the new product development department at Snowbird foods unveil the 8

biggest change in sausage making and marketing in three centuries. They have launched - the Spherical Sausage!

Snowbird has stayed true to its awardwinning recipes for pork, Lincolnshire and Cumberland and made them all gluten free at the same time.

“This might be a small step for mankind

but in the sausage firmament it is a great leap forward,” says Snowbird commercial and marketing director, Roy Anderson.

Like their traditional counterparts, Snowbird’s child-friendly Spherical Sausages are fully cooked and frozen as part of the factory process so they can be heated from frozen in a microwave in seconds or batch prepared in an oven. And, true to the Snowbird quality ethos, they are all made with British pork from outdoor bred pigs reared on Red Tractor approved farms.

Initially, these unique spherical sausages will be exclusively for the foodservice and ready meals sector. They are available in bulk or in units of varying quantities. For further information visit www.snowbirdfoods.co.uk. J

FOOD & DRINK BUSINESS EUROPE, DECEMBER 2015

I BREWING & DISTILLING

Diageo is Now Better Equipped to Deliver Global Growth Although the trading environment across its global markets remains challenging, the long-term outlook for Diageo is bright. iageo’s core strength is its scale, its formidable brands portfolio and its extensive geographic reach, with exposure to both emerging and developed markets. The group’s products are sold in more than 180 countries globally. About 40% of Diageo’s business is in the emerging markets in Latin America, Asia, Africa, Eastern Europe and Turkey. This presence is balanced through strong businesses in the world’s most profitable beverage alcohol market, the United States, and an integrated Western European business.

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cial year with two-thirds being reinvested in growing the business.

Challenging Year For the year ended 30th June 2015, Diageo reported a 5.4% increase in net sales to £10.81 billion, reflecting the acquisition of United Spirits which contributed £921 million, and a 3.3% rise in group operating profit to £2.797 billion. However, Diageo’s organic volume fell by 1% due chiefly to lower shipments in the United States, reduction in inventory levels in South East Asia and the impact of pricing in Venezuela and Brazil. Reported net sales and operating profit were significantly impacted by adverse exchange movements driven by the devaluation of many currencies against the pound, in particular the euro, the Venezuelan bolivar, and the Russian rouble.

While the $2 billion acquisition of United Spirits has given Diageo unparalleled access to the highly attractive spirits market in India, its consolidation into Diageo has lowered reported operating margin for the group. However, organic operating margin improved by 24 bps during the year, largely as a result of cost savings and effi-

Ivan Menezes, chief executive of Diageo.

The brands portfolio includes Johnnie Walker, Crown Royal, J&B, Buchanan’s and Windsor whiskies, Smirnoff, Ciroc and Ketel One vodkas, Captain Morgan rum, Baileys cream liqueur, Don Julio tequila, Tanqueray gin and Guinness beer. Indeed, Diageo’s brands are continuing to extend their leadership of the global spirits market, as reflected by their performance in Impact Databank's most recent Top 100 Spirit Brands lists. Brands owned by Diageo, which for the first time includes United Spirits’ brands, now account for nearly a quarter of all volume in the top 100. With 14 brands in the top 100 by volume - including five in the top 20 sales volume in litres for Diageo brands is now more than double that of its nearest competitor.

North America and Europe combined still represent about 56% of Diageo’s sales but the group is targeting future expansion in emerging markets, particularly India, Africa and China. Similarly, Scotch whisky (25%) and beer (20%) are Diageo’s two largest product segments.

Under chief executive Ivan Menezies, who took over the helm in July 2013, Diageo has been focusing on achieving cost savings and improving efficiency to maximise its global scale. In the short-term, Diageo is seeking to reduce costs by £500 million by its 2019 finan-

Diageo recently created a world class brewing facility at its historic St James’s Gate site in Dublin, consolidating four breweries into one.

FOOD & DRINK BUSINESS EUROPE, DECEMBER 2015

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ciencies, which more than offset the impact of cost inflation and negative market mix. Indeed, productivity gains are expected to release a further £500 million of cost to invest in growth and improve margin over a three year period from financial year 2017.

Also during its last financial year, Diageo enhanced its position in tequila by acquiring the remaining 50% of Don Julio, a brand that is already growing net sales at double digit rates, although this entailed exiting the Irish whiskey category with the sale of the Bushmills brand.

us greater focus.” The wine business generated about 4% of group sales but only 1.5% of operating profits

Growth Opportunity Ivan Menezes believes that Diageo is now better equipped to deliver on the growth opportunity within its markets globally. “The opportunity is clear,” he remarks. “We lead in an industry that is financially attractive and growing. We have the portfolio and geographic balance to drive growth. We have scale and are now positioned to Scotch whisky generates over £2.5 billion of net sales and about a third of use our scale better.”

Over the next decade there are Diageo’s profit.

More Focused Business expected to be 500 million new In the last six months Diageo has disposed of a number of business- LPA (legal purchase age for alcohol) consumers globally, with 90% es, with lower returns and lower margins than the group average, to coming from emerging markets and India accounting for 30% of refine its core portfolio. For example, Diageo has sold its beer assets the increase. in Malaysia and Jamaica, along with its wine brands in the US, the “The geographic footprint we have created gives us large businessUK and Argentina. es in the fastest growing markets.” He continues: “We have an envi“In the last four months these transactions brought in over a bil- able position in the majority of the high growth markets. In particulion pounds of cash, improved our ROIC and our operating mar- lar in North America, India and LAC which represent more than gin,” points out Ivan Menezes. half of the global growth opportunity. In each of these markets we For instance, the sale of Diageo’s US-based Chateau and Estate have great brands, marketing, innovation and route to consumer to Wines and the UK-based Percy Fox businesses to Treasury Wine capture the opportunity. It’s not only about our geographic footEstates for a consideration of $552 million, netted proceeds of print, we also have the most complete portfolio in the industry.” approximately £320 million “Diageo’s strategy is to drive stronger, sustained performance through focus on our core portfolio,” says Enhanced Productivity Ivan Menezes. “Wine is no longer core to Diageo and this sale gives The Diageo chief executive elaborates: “Global, scale businesses

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FOOD & DRINK BUSINESS EUROPE, DECEMBER 2015

Diageo has enhanced its position in tequila by acquiring the remaining 50% of Don Julio, a brand that is already growing net sales at double digit rates.

thrive when they understand consumer motivations better and act on them quicker. Scale also has to drive greater efficiency, driving out cost to invest in growth and improve margins.”

During the last five years, Diageo has improved its organic operating margin by over 200 bps and delivered £600 million of cost savings. These savings have chiefly been achieved through major restructuring programmes. For example, within its beer business, Diageo recently created a world class brewing facility at its historic St James’s Gate site in Dublin, consolidating four breweries into one, repatriating volume from some markets to increase capacity to optimum levels. The move has reduced Diageo’s cost base in beer in Ireland by £60 million over the past four years, according to Mark Sandys, global head of Beer, Diageo.

In Scotch whisky, a category that generates over £2.5 billion of net sales and about a third of group profit, Diageo has invested nearly £600 million in capital expenditure since 2007 across its distillation, maturation, and warehousing activities. “To support these sales, we own 28 malt distilleries, one grain distillery and a 50% share in another, and invest consistently to ensure we have the capacity to support future growth with a ruthlessly efficient cost structure,” points out David Gates, head of Premium Core Spirits at Diageo. However, Diageo has moderated its planned level of capital expenditure in distillation since announcing a £1 billion expansion programme in Scotch whisky in 2012 by postponing certain capacity expansion projects.

While Diageo’s goal to underpin margin improvement through cost savings remains unchanged, its current focus is different. “Our approach to productivity is now that we can achieve consistent, sustainable efficiency in every area of our cost base. The efficiency will ensure that spend consistently drives an improving return on investment. This is key to our view that reinvesting two thirds of our productivity savings will be the most value creating way to drive top line growth,” Ivan Menezes explains.

Outlook Diageo expects to be able to deliver improved top line growth, driven by stronger volume growth, and modest margin improvement for its 2016 financial year. “As we achieve our productivity gains from F17 we expect to deliver mid single digit organic top line growth on a sustained basis and operating margin expansion of 100 basis points over three years,” says Ivan Menezies. “Our brands, our global footprint and our people give me confidence that Diageo can deliver strong and sustained performance." J

FOOD & DRINK BUSINESS EUROPE, DECEMBER 2015

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COVER STORY

2 Sisters Food Group Moves Top of the Pecking Order From humble beginnings, Boparan Holdings (the parent company of 2 Sisters Foods Group) has developed into the UK’s largest grocery market supplier and one of the largest privately owned food groups in Europe.

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stablished in 1993 by Ranjit Singh, 2 Sisters Food Group has evolved from a small scale frozen retail cutting operation into an international, diversified food group with a strong presence in the poultry, red meat, chilled and frozen food categories in the UK. Although predominantly a private label manufacturer, 2 Sisters also produces a number of branded products including Fox’s biscuits, Goodfella’s pizza, Matthew Walker Christmas puddings and Green Isle vegetables. Headquartered in Birmingham, the enterprising company has a significant international business and serves both the retail and food service channels. Customers include Aldi, Asda, Co-op, KFC, Lidl, Marks & Spencer, Morrison's, Sainsbury's, Tesco and Waitrose.

Having quadrupled its revenue from £838 million to £3.36 billion between 2010 and 2014, Boparan Holdings climbed from 20th to first place in OC&C’s Food & Drink 150 rankings for 2015, becoming the biggest food and drink producer in the UK, pushing Associated Ranjit Singh, chief executive of 2 Sisters Food British Foods’ grocery Group. division into second place after five years at the top. Now in its 27th year, OC&C’s Food & Drink 150, in collaboration with the Grocer, is the only sector-wide analysis of the financial statements of the top food and soft drinks firms in the UK, ranking companies by revenue.

Transformational Deals Through a series of acquisitions and organic growth, 2 Sisters had been developed by Ranjit Singh into a formidable poultry operation but the business has increased dramatically in both scale and diversity over the past four years with the completion of three transformational purchases - Northern Foods, Brooks Avana and VION’s UK poultry and red meat business.

In early 2011, 2 Sisters successfully completed the £342 million acquisition of Northern Foods, one of Britain’s largest convenience food processors. Northern Foods’ chilled business incorporated sandwiches, salads and ready meals operations, while its branded division combined the group’s frozen and bakery activities including Fox’s biscuits, Goodfella’s pizzas, Donegal Catch fish, Green Isle vegetables, McDougalls and Holland’s pies, and Matthew Walker puddings. Northern Foods’ customer base encompassed all of the UK’s major food retailers and a number of discount retailers along with

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

2 Sisters currently provides a third of all poultry In late 2011, 2 eaten in the UK every day.

Sisters purchased Premier Foods’ lossmaking Brookes Avana business, comprising RF Brookes chilled foods and Avana Bakeries, for £30 million to further diversify its portfolio. Brookes Avana supplied chilled convenience products, including ready meals, accompaniments, chilled pizza and pies, while Avana was one of the UK’s leading suppliers of high quality bakery, cake and dessert products.

The purchase of VION’s loss making UK red meat and poultry business in 2013 for an undisclosed price marked 2 Sisters’ entry into the red meat sector allowing it to serve even more meal occasions.

With annual sales of about £1 billion (60% in red meat and 40% in poultry) the VION acquisition added capacity in poultry to 2 Sisters to accommodate future growth. 2 Sisters currently provides a third of all poultry eaten in the UK every day. As part of the integration process 2 Sisters restructured in 2014 and refinanced £800 million of its debt.

Financial Performance For the 52 weeks ended 1 August 2015, 2 Sisters Food Group’s parent Boparan Holdings reported an 8.2% drop in sales to £3.14 billion with like-forlike sales down by 1.7%. Operating profit fell by 34.3% to £58.8 million with the margin declining by 70 bps to 1.9%. On a like-for-like basis, operating profit decreased by 38.5% to £60.4 million and the margin from 3.0% in

FOOD & DRINK BUSINESS EUROPE, DECEMBER 2015

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

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2014 to 1.9%.

Retained loss for the year after exceptional items, interest and taxation was £4.6 million, compared to a loss of £143.3 million in 2014. Net debt at the end of the 2015 The purchase of VION’s loss making UK red meat financial year was and poultry business in 2013 marked 2 Sisters’ £716.6 million – up entry into the red meat sector. £52 million on the previous year.

“Our aim is to build a better business. During 2015 we focused on costs, efficiency, investment, innovation and deepening customer relationships,” explains Ranjit Singh. “The operating environment for our industry remains tough, but we have seen a consistent improvement in our performance across all our divisions, with a 17.5% increase in like-for-like operating profit to £22.8 million from Q3 to Q4.”

The 2 Sisters business currently incorporates three divisions – Protein, Chilled and Branded. The Protein division is by far the largest and like-for-like sales for 2015 declined by 3.2% to £2.209 billion. During the past year, 2 Sisters streamlined its UK poultry operations. The Protein business is continuing to consolidate its strong position with leading customers as well as securing major business wins in poultry and in red meat with new customers.

In the Chilled division, 2 Sisters is reaping the benefits of a turnaround of the business, which achieved some significant contract wins during the year, resulting in like-for-like sales for the full year increasing by 1.9% to £596.5 million.

The Branded division also increased like-for-like sales by 1.9% to £391.8 million during the year as the frozen business grew across the UK and Ireland, where new products were successfully introduced including Deli Di Lusso and Little Fellas in the UK, and Sweetfellas and Gluten Free pizzas in Ireland. The Fox’s brand has also proved resilient within the intensely competitive biscuits market.

“We have also put increased emphasis on ensuring we are producing the right quality and volume at the right cost,” points out Ranjit Singh. “During the year, we restructured Biscuits and Food-to-Go to reduce costs and improve efficiency and have streamlined our UK poultry processes and supply chain.”

Continued Investment In line with its mantra of ‘delivering the highest quality products to customers at the lowest cost’, 2 Sisters is continuing to focus on improving operating efficiency. The company has announced a substantial and targeted investment programme to drive productivity and efficiency across the business over the next three to four years.

“We are making a number of important investments with the aim of providing our customers and consumers with innovative products, better value and reduced waste,” says Ranjit Singh. “We are launching a major £150 million investment programme in our poultry business that will completely revolutionise our supply chain end-to-end.

We are aiming to further align our poultry business with the needs of our customers, creating world class facilities utilising state-of-the-art technology, and driving efficiency.”

He adds: “Our investment plans also include a further £55 million development project for our Meal Solutions division, which will create further capacity across all four sites and put us at the forefront of developing the next generation of ready meals.”

2 Sisters’ Meal Solutions business produces a range of products including ready meals, soups and sauces. The division is wholly focused on own-label products, and predominantly produces ready meals and soups and

sauces for Marks & Spencer out of four factories - Pennine Foods in Sheffield, Rogerstone in South Wales, Carlisle and Grimsby. The majority of the investment will be used to completely rebuild Pennine Foods, with the remainder being allocated to refurbish and expand capacity at both Rogerstone and Carlisle.

Pennine is a purpose-built site, originally established in 1986, which has now reached full capacity. A £38 million rebuild will develop best in class commercial and operational processes to support continued innovation, expand capacity and drive further profitability.

The strengthened operational platform will enable 2 Sisters to continue to grow its position as the market leader in ready meals production in the UK. According to 2 Sisters, its Meal Solutions division is outpacing the growth rate in the chilled ready meals sector, which stands at roughly 3% per annum. The planned investment is designed to provide sufficient capacity to support continued innovation, expand capacity and drive further profitability. The investments are in addition to a recent £4 million investment to increase frozen pizza capacity.

Food Safety 2 Sisters is also maintaining its investment to tackle the problem 2 Sisters’ investment plans include a £55 million of campylobacter in development project for its Meal Solutions division. fresh poultry. “We continue to focus on measures to reduce campylobacter, where we have invested £10 million to date. Our efforts have been praised by the Food Standards Agency and have won the approval of major customers,” he remarks.

Indeed, in recognition for his contribution to the poultry sector, Ranjit Singh was presented with the British Poultry Council/ForFarmers award at the recent annual Egg and Poultry Industry Conference (Epic). Epic chairman Paul Kelly says: “Ranjit’s efforts have meant that a huge portion of UK poultry production is British owned, and he has been rightly praised by politicians, retailers, and the food and farming community. Ranjit is a true captain of industry and I can think of no more worthy winner of this award in 2015.”

Outlook Ranjit Singh expects the operating environment to remain difficult within the grocery industry in the face of continued food price deflation, and a highly competitive retail market. However, despite the tough trading conditions, 2 Sisters’ investments across its Protein, Chilled and Branded divisions are designed to continue to improve the group’s performance.

“Our business transformation continues at pace and with a number of investment programmes in place, I am confident we have the right strategy to meet the needs of our major customers who increasingly demand long-term, dedicated partnerships with their suppliers,” says the 2 Sisters Foods Group chief. J

FOOD & DRINK BUSINESS EUROPE, DECEMBER 2015

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I POULTRY

Marel Stork AeroScalder – Energy-efficient Without Immersion or many years the poultry industry has F been looking for better alternatives to water immersion scalding, the process prior to defeathering. After extensive research Marel Stork Poultry Processing developed

the AeroScalder. This avant-garde solution uses moisturized hot air to loosen the feathers.

The hot air is prepared in a separate conditioning chamber and then blown into the process chamber, where the feathered products pass the precisely aimed air nozzles. The air is recirculated and reconditioned which creates a closed and controllable process.

The award-winning Marel Stork AeroScalder has managed to save up to 75 percent of water and to use up to 50 percent less energy compared to conventional immersion scalding systems. Besides that, this innovative scalding method results in a consistent and visually clean process. Final

product quality is high while cross-contamination – in contrast to immersion – is prevented. Moreover, odor emissions are considerably lower.

The independent jury of the Dutch Food Valley Award stated: "The technology offers important advantages in terms of food safety and food quality, as the chance of cross-contamination by pathogens is significantly reduced. Besides that, substantial savings in water and energy use are realized. It is a very valuable development, which can add to ameliorated global food quality in an efficient and sustainable way."

For further information visit ww.marel.com/aeroscalder. J

I FOOD SAFETY

UK Food Standards Agency Welcomes Signs of Progress on Campylobacter he UK Food Standards Agency (FSA) T has published the first set of results from its second year survey of campylobacter on fresh shop-bought chickens. The results for the first quarter of testing, from July to September 2015, show a decrease in the number of birds with the highest level of contamination from the same months last year.

These most heavily contaminated birds are the focus of the current target agreed by industry, which is equivalent to no more than 7% of chickens at retail having the

highest levels of contamination. Research has shown that reducing the proportion of birds in this category will have the biggest positive impact on public health.

The new data shows 15% of chickens tested positive for the highest level of conta-

mination, down from 22% in July to September 2014. Campylobacter was present on 76% of chicken samples, down from 83% in the same months of last year.

0.3% of packaging tested positive at the highest band of contamination and 6% of packaging tested positive for the presence of campylobacter.

The FSA has been testing chickens for campylobacter since February 2014 and publishing the results as part of its campaign to bring together the whole food chain to tackle the problem. J

SonoSteam – When Food Safety Matters athogens have to be taken seriously but P good hygiene is more than a question of food safety. Better hygiene leads to improved shelf life due to lower risk of contamination from spoilage microorganisms.

As production tends to go on for many hours without cleaning, the bacterial growth on production equipment increases and it is impossible to eliminate all of the bacteria with chemical decontamination.

But what if you could kill bacteria during production and maintain the same high level of hygiene that you had at the beginning of the day? With SonoSteam decontamination you can!

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A SonoSteam treatment uses a combination of pure steam and ultrasound, and takes only 2 seconds. It is not affected by minor food debris and will reset the microbial load on the surface.

With SonoSteam, cross contamination is prevented; therefore, subsequent products are no longer contaminated! Consider the potential when changing to other products on a production line.

Imagine how beneficial it would be to be able to decontaminate a conveyor belt every half hour during production. It would result in a longer shelf life, which would even have less variation. Furthermore, as SonoSteam

works without chemistry, any risk of chemical contamination of any food product is avoided and SonoSteam is therefore ideal for organic production and packing lines. J

FOOD & DRINK BUSINESS EUROPE, DECEMBER 2015

I PACKAGING DESIGN

Theatrical Display Scoops Award For DS Smith theatrical Disney-themed display created for A ASDA George by DS Smith’s UK Packaging Division has been awarded a bronze at the 2015 FESPA Awards.

Held in Cologne in May, the prestigious ceremony recognises the highest quality printing by companies around the world.

DS Smith scooped bronze in the Point of Purchase Products category - Printing on paper & board, after being challenged by ASDA George to develop an impactful 3D point of sale structure to hold a range of Disney Frozen themed products.

Using graphic assets from the movie, the DS

Smith design team developed a theatrical 3D display that included a cut to shape backboard and header with a triple plinth to carry the products. Further perception of depth was created using a digitally printed, clear, polypropylene snow scene tray at the top of the main pillar.

The unit was printed on a digital press with robotic in and out feed - part of a recent £1 million investment in the firm’s display business.

Tony Foster, Sales & Marketing Director for DS Smith’s UK Packaging Division, says: “The display is a great example of how our creative and innovative products can make a real difference to our customers’ sales.” J

Baker Street Rolls Rise With the Help of DS Smith Smith has collaborated with Carrs Foods to increase the purDTheSchase performance of its Baker Street Xtra life soft rolls. award winning supplier of European bakery goods turned to DS Smith to help maximise the sales of its Baker Street soft rolls, by bringing its display trays to life with a branded design.

DS Smith worked closely with Carrs Foods throughout the process and looked at ways to improve the case and distribution efficiency, as well as the aesthetic appeal.

The decision to use specially formulated flexo inks ensured excellent print quality and the tray itself is further enhanced by a specially created notch in the corner of each tab, which pre-

vents the tabs from popping out – an on-going problem for previous trays.

Jenny Bostock, Marketing Manager at Carrs Foods, says: “The brand itself ‘Baker Street’ existed on the primary packs, but could not be viewed or recognised by customers when stacked in pallet displays as it was hidden in a brown tray.

According to wholesaler Booker, branded case displays result in an improvement to sales, so the decision to move to branded cases for focus products was key.”

The pack was launched in May 2015; with feedback from the trade already exceeding expectations, Carrs Foods is anticipating an increase in sales. J

RRP to Help Laughing Dog be Leader of the Pack Hill Foods, owner of Laughing Dog Fold pet food, has partnered with DS Smith

to provide a retail ready pack (RRP) that provides maximum impact on the store shelf, helping to drive sales in the pet food category.

Printed using a litho-laminating process and using colours that perfectly match the different pouch variants, the resulting pack looks clean and crisp making it easy to spot on the shelf.

The retail ready tray is manufactured in E flute, and the R-Flute® hood protects the products in handling, storage and distribution. DS Smith produced the two items separately, and via an inline combining process bringing the tray and hood

elements together.

Tony Foster, Sales and Marketing Director at DS Smith’s UK packaging division, commented: “The RRP that has been created for Laughing Dog demonstrates that a pack can be designed to look great on the shelf, help to make the packing process efficient, and be robust to meet all the challenges of the supply chain.”

Jaiminie Chauhan, Marketing Executive at Fold Hill Foods, says: “Since the relaunch we have had a great response from the trade and consumers about our new design, this has contributed to new listings.”

For more information and news from DS Smith visit www.dssmithpackaging.co.uk J

FOOD & DRINK BUSINESS EUROPE, DECEMBER 2015

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I PALLETISING, DEPALLETISING & WRAPPING

Pacepacker’s New Compact Cartesian Palletiser is a Fitting Solution pace limitations are often cited as a barrier for automation in production and S packing plants. When room is tight, Pacepacker Services has just developed and launched a fitting and more compact solution, a new Cartesian palletising system which typically takes up just 4.3 sq m of floor space – delivering an impressive 50% reduction in floor footprint compared to a comparable robotic arm solution.

Situated at the end of an existing product conveyor, Pacepacker’s Compact Cartesian Palletiser is ideal for handling retail and wholesale goods in clusters, such as blister packs of flour and trays of jam jars, as well as boxes, cartons, shrinkwrapped trays and many other retail goods.

The simple design comprises a robust

frame straddling the end-of-line conveyor.

A Cartesian mechanism supplied by Festo is built into the overhead area and an empty pallet is placed neatly on the floor within the structure. As product feeds along the conveyor, they are picked up and placed onto the pallet.

The most appropriate end-effector for each application is added to the Cartesian device, typically an electro-magnetic or vacuum gripper, giving packing facilities a standalone palletising solution for accurate and efficient handling of materials.

Throughput speed depends on the volume and type of product being handled in each movement, but is typically around 6 per minute for shrink-wrapped flexible packs like shrink-wrapped bundles of flour, and 10 per minute for ridged cardboard boxes, these speeds could be increased if multi picking is an option.

“Over the years, production facilities have got increasingly congested due to more lines being added,” says Paul Wilkinson, Pacepacker’s Business Development Manager.

“Automation solutions for end-ofline palletising can be very bulky.

However, the Cartesian unit is very space efficient and eliminates one of the most arduous and labour intensive tasks, boosting hourly throughput by almost 100% in some cases.”

To illustrate the floor footprint saving, a comparable robotic pal-

letiser takes up around 8.6 sq m.

Compare this to the Compact Cartesian Palletiser at 4.3 sq m; a typical packing facility will have 50% more floor space to play with. “The only other way to accomplish the same function as the Compact Cartesian Palletiser in a similar footprint, would be to go ‘old school’ reverting back to a human picking and placing product manually onto a pallet,” claims Paul Wilkinson. “What we’ve done is create a practical and cost efficient palletising alternative. Like many of our systems, a 12 month ROI is entirely feasible.” J

PHS Wins Contract in UK Soft Drinks HS has won an order from a major P UK soft drinks producer. The system sold is a loose can accumulating system designed to accumulate loose aluminium cans of varying sizes in 9 buffering zones.

The purpose of the system is to absorb production when the downstream packing lines stop for any reason. As product is passed through the pasturiser it cannot remain in there for any length of time over and above what it should be, otherwise product is essentially over cooked

and hence not fit for purpose.

PHS has designed a solution with their Italian partner Movipack to place a gantry palletiser close coupled to the pasturiser, the gantry will collect with vacuum, a layer of cans each time and palletise them onto any one of 9 stainless steel floor stands. As the loose cans are very unstable

it was not possible to load directly onto pallets and move them around a buffering system, hence our unique solution.

As and when the downstream packing lines re start, the accumulator will start to deposit complete layers back onto an exit modular belt conveyor layer by layer until all positions have been emptied.

This is the first of its kind in the UK for PHS and Movipack using simple technology, with full UK support from PHS. J

FOOD & DRINK BUSINESS EUROPE, DECEMBER 2015

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EASY-LOCK by APLIX® – The Easy & Intuitive Closure For Flexible Bags ASY-LOCK by APLIX® is a hook-tohook reclosable solution designed for E flexible packaging. This closure was devel-

oped with simplicity and functionality in mind, and provides an audible feedback when opening and closing to let consumers know their package is sealed.

An Innovative Reclosable System This innovative closure allows minimal pressure to close, has rigid grips to facilitate opening and does not require precise alignment of the zipper. Additional features of the EASY-LOCK by APLIX® closure include contaminant resistance. The closure allows for numerous openings and closings and is excellent for dry product

applications and readily seals through powders and fine particles.

EASY-LOCK by APLIX® is made from a food-grade, heat-sealable polyethylene material and is available in two formats – a light closure for small bags and a more robust closure for heavier bags. It runs on automated packaging machines and is available in single or mated tapes. This closure is certified BRC. Key Customers & Applications Thanks to its inspired design and technology, this intuitive closure offers opportunities in many additional markets such as cheese, cereals, petfood, coffee, frozen food and confectionery.

Since its launch in 2010, EASY-LOCK by APLIX® has been very successful in both Europe and the United States.

In Europe, it consolidated its position with key market launches with ARLA (Anchor cheddar) and Kellogg’s (Kellogg’s Extra® and Special K® cereals). “Our relationship with ARLA really changed the game for us, their commitment to innovation matched our own and this led to some great product launches such as Anchor cheddar.” says Caine FOLKESMILLER, APLIX Packaging Director.

EASY-LOCK is also a suitable closure for petfood bags and was selected by Tyler Packaging. Adam Kay, Sales and Technical Director at Tyler Packaging, comments: “The APLIX closure system is a fantastic option. It’s extremely straight forward and hard wearing, meaning packaging can be opened and resealed almost indefinitely. Its ease of use makes it particularly suitable for the food industry, both pet and human, as it doesn’t need exact alignment to reseal, meaning it’s both very simple for the consumer to use

and also preserves food for longer.”

In the US, AMPAC, a world leader in packaging solutions, introduced its first commercial stand-up pouch utilizing the EASY-LOCK closure. Millie Nuno, AMPAC Senior Market Manager for food, says, “AMPAC is proud to provide an enhanced consumer experience with an innovation like the EASY-LOCK closure in their California Almond pouch.”

Big Heart Pet Brands has launched Milk-Bone Brushing Chews, new dental treats for dogs, opting for the EASYLOCK closure. “Ultimately, the reason we went with APLIX on the pre-applied pouches was due to the fact that they were the only company that could meet our needs,” says Paul Baker, Brand Senior Manager of Packaging R&D.

New Product Generation With its latest product launch, APLIX is now able to provide its customers with a robust closure that delivers both audible and tactile feedback, ensuring consumers their package is sealed. APLIX is now developing a narrow profile closure with similar hook-to-hook features for small bags, which is estimated to launch in 2016.

EASY-LOCK by APLIX® has already received several awards and continues to amaze consumers with its unique features and reliable closure.

For more information visit www.easylock-aplix.com & packaging@aplix.com. J

FOOD & DRINK BUSINESS EUROPE, DECEMBER 2015

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I FROZEN FOODS

Stronger Ardo Set For Accelerated Growth The merger between two Belgian frozen food companies – Ardo and Dujardin Foods – which was completed a year ago, has provided a strong platform to allow the combined group to expand and further strengthen its market leading position in fresh frozen vegetables and fruit, fresh frozen herbs and ingredients. upplying to retail, food service and industrial customers throughout Europe and further afield, the enlarged company, also called Ardo, currently operates 20 production, packing and distribution units in eight European countries, and employs around 3,800 people.

This integrated network of growing regions, production sites and packaging, storage and logistics facilities allows Ardo to control the entire supply chain.

Reflecting the merger with Dujardin Foods, in 2014 the enlarged Ardo achieved a consolidated turnover of Eur815 million against Eur644 in 2013 as a stand-alone company. Sales volume also increased significantly to 805,000 tons - up from 611,000 in 2013.

In addition to consolidating its position in existing European markets, Ardo is growing overseas in countries such as the United States, Canada and Australia. The frozen foods group is also expanding its sales of organic products as this niche sector moves mainstream.

S

Classics provides an extensive range of userfriendly blanched vegetables, both classics and new varieties.

Highly Complementary The year-old merger between Ardo and Dujardin Foods has successfully combined two highly complementary, family-owned businesses (see Panel). Indeed, both companies shared common roots and corporate cultures having been independently founded by two brothers. The merger has effectively reunited the two branches of the Haspeslagh family in common ownership of the combined business. It has also laid the basis for a third-generation, professionally-managed

family business.

The merger with Dujardin Foods has further extended Ardo’s already impressive product portfolio. The range encompasses Classics, Express, A Table, Les Fruits, BioOrganic, Les Tapas and Fines Herbes.

Classics provides an extensive range of userfriendly blanched vegetables, both classics and new varieties. Express is a wide range of precooked, blanched, pre-roasted or grilled products. A Table offers prepared vegetables, with subtle herbs and/or a complementary sauce.

Les Fruits is a varied range of perfectly ripe, fresh-frozen fruit and fruit mixes that are immediately ready for use. Bio Organic represents a varied and high-quality range which draws on Ardo’s many years of experience in organic market gardening. Les Tapas is a range of tasty fried vegetable snacks and vegetable fries. Fines Herbes are carefully selected, quick frozen herbs and pungent flavour enhancers.

ensure that customers are supplied with products that meet the highest safety and quality standards, Ardo exerts full control over the production chain, from harvesting to packaging, and cold storage and distribution.

After harvesting, time and speed are paramount. The harvested raw materials never take more than 150 minutes to travel from the field to the factory. Freezing of the processed product is conducted at temperature of -34 C. Packed products are stored in energy efficient cold stores operating a -22 C, where automated pallet movement and rigorous temperature management maintain an uninterrupted cold chain.

Throughout the entire process, Ardo applies integrated production methods and quality monitoring which respect the natural environment.

Highest Quality Ardo employs more than 125 Quality Technicians across its European production sites. Ardo Quality Departments work yearround to ensure that only the best raw materials are used and that the processing factories achieve the optimal results from the fresh raw materials used. Every stage of the production process is meticulously monitored with detailed checks made, including HACCP. All Ardo production sites are screened regularly

‘Preserving Nature's Precious Gifts’ Ardo’s company motto is ‘preserving nature's precious gifts’ and it has been doing just that for more than 40 years. Quality has been the cornerstone of Ardo’s success and longevity.

The Belgian company maintains its high quality standards by controlling the entire production chain from the selection of seed to packing and distribution. This expertise and its flexible structure coupled with an extensive sales network allows Ardo to anticipate new market trends and to respond by developing innovative quality products to meet changing consumer and customer demands.

In order to preserve the freshness and nutritional quality of the fresh vegetables, fruits, herbs and ingredients before freezing and to FOOD & DRINK BUSINESS EUROPE, DECEMBER 2015

Recent product innovations include the addition of sweet potato puree portions to Ardo’s range of vegetable purees.

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The Combination of Two Well Established Family Businesses Ardo and Dujardin Foods were started independently by two brothers forty years ago and evolved similar corporate cultures. The merger deal entailed private equity firm NPM Capital disposing of its minority stake in Dujardin Foods so that the new group is completely owned by the Haspeslagh families.

Ardo began its activities in the 1950s, growing and trading vegetables at the family farm near the village of Ardooie, from which the company name was derived. Venturing into freezing in the 1970s, Ardo subsequently developed its production and sales of frozen vegetables throughout Europe. When entering the merger with Dujardin Foods in December 2014, Ardo was operat-

ing 15 production, packing and distribution units in eight European countries, and employing around 3,000 people.

Based at Ardooie-Koolskamp in Belgium, Dujardin Foods specialised in processing and supplying fresh frozen vegetables, aromatic herbs, ingredients and ready-toeat meals. At the time of the merge with Ardo, Dujardin Foods employed around 800 staff, sold approximately 200,000 tonnes and had a turnover of Eur213 million. Focused on the international retail, industrial and food service markets, Dujardin Foods operated five production sites located in Belgium, France, and the UK.

to ensure standards of the highest quality, such as British Retail Consortium (BRC) accreditation.

Control results are processed by the ERP system that links them to the appropriate production and packaging instructions. This facilitates the complete traceability of products. Indeed, every Ardo product has a product file containing detailed technical information, so that customers and prospective clients are provided with comprehensive view of the Ardo product range.

Improving Efficiency As part of its strategy to constantly improve efficiency across the whole group, Ardo is continuing to invest in more efficient, powerful and flexible IT solutions. This is resulting

Ardo’s new herb mixes include Mix Salsa Mexicana.

in the gathering and rapid processing of realtime information to permit Ardo to respond quickly to changes in the market-place and

FOOD & DRINK BUSINESS EUROPE, DECEMBER 2015

within the wider group as it consolidates new parts of the business following the merger with Dujardin Foods.

The integration of Ardo and Dujardin Foods is allowing the enlarged business to maximise its market presence and to identify and benefit from economies of scale and other synergies. For example, in the UK, the frozen fruit and vegetable business of Ardo UK is now working in tandem with Rosemary and Thyme, one of the country’s main providers of herbs and ingredients. The combined business has a turnover of over £82 million.

Constant Innovation Constant innovation in both products and production techniques is crucial to Ardo’s

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ongoing success. The group has a strong track record in this regard. For instance, it was the first frozen food producer to market leaf spinach in individual servings. To meet changing consumer tastes, trends, lifestyles and eating habits, Ardo experiments with new plant varieties, product recipes and packaging to develop a continuous stream of added value new products.

Recent product innovations include the addition of sweet potato puree portions to Ardo’s range of vegetable purees, and al dente pre-cooked macaroni to the pasta range, along with the introduction of pre-cooked Quinoa for use in a wide variety of quick-toprepare hot and cold dishes.

Following the merger with Dujardin Foods, a number of new flavourings have been added to the Ardo range. Ardo’s new herb mixes include Mix Salsa Mexicana, a herb mix of finely chopped Mediterranean vegetables with garlic, coriander, spring onion, green and red chilli peppers and

cumin; and Mix Smoky BBQ, a combination of Mediterranean flavours including garlic, rosemary, marjoram and sage with chopped oven-dried tomatoes in a lightly marinated oil dressing.

Sustainability Ardo is committed to continually seeking environmentally aware, socially responsible and economically viable methods for growing, freezing, packing and storing its products. In its quest to produce fresh-frozen vegetables grown with the utmost respect for nature and the environment, Ardo has developed it MIMOSA programme, standing for Minimum Impact & Maximum Output Sustainable Agriculture.

For example, Ardo has introduced GPS tracking technology to aid in the precise sowing and harvesting of its vegetables. In its efforts to minimise water and energy usage, Ardo has also invested in biomethanisation – using vegetable peelings to generate energy

Les Fruits is a varied range of perfectly ripe, freshfrozen fruit and fruit mixes that are immediately ready for use.

for its production plants and to produce organic fertiliser for its agricultural operations. The generation of green energy currently meets 20% of the group’s requirements. J

Atelier Dumon: A One Stop Shop Company – For Your Materials Pallet Handling Needs espoke design and automation of mateB rial pallet handling solutions and hydraulic elevators is the core business of Atelier Dumon.

Atelier Dumon is a family owned company, based in Bruges, Belgium, specializing in internal goods moving systems, machinery and hydraulic elevators. For more than 60 years the company has been providing automatic solutions for production processes for a wide variety of applications. Atelier Dumon specialize in handling frozen goods products, but also have experience and reference sites in the distribution, food, beverage and transport industries.

Atelier Dumon have engineered mechanical handling solutions for Ardo since 1993. The first plant of Ardo where Dumon equipment was installed was at Ardooie, Dumon worked with Ardo to automate the different company processes.

The collaboration between the two parties 30

has had a far-reaching effect on production operation, which has led to economic savings and technological added value for the company of Ardo. These production enhancements have been expanded, over the past 20 years, to different parts of the Ardo business, other plants around Europe have benefitted, such as the plant of Hesbayefrost (in Geer) and sites in France, The Netherlands, Portugal, Denmark and Austria.

A requirement from Ardo was to eliminate the use of long reach trucks and automate the pallet handling system as much as possible. To cater for this Dumon engineered unique solutions, at the ground floor level docks, it is now possible to load and unload with pallet trucks. An extensive check on the shape and integrity of the pallet is essential to successful transport throughout the factory. During transportation, Dumon systems can integrate with

robots, packaging machinery, label printers, wrappers, etc. Dumon specially developed, (for frozen vegetables), a drilling machine that separates frozen vegetables without damage before filling into packaging machines. After wrapping and putting into boxes, pallets are transported onwards to warehousing, or docks, already in the right sequence.

The engineering department at Atelier Dumon delivers bespoke systems to satisfy customer needs. Together with the client Atelier Dumon develop the best solution.

The strength of Atelier Dumon is that they are a "one stop shop". Atelier Dumon work with the client from the beginning of the project and then design, manufacture and install the whole project, including the electrical control and software.

Furthermore, customers of Atelier Dumon can count on a team of service technicians who are permanently available. J

FOOD & DRINK BUSINESS EUROPE, DECEMBER 2015

Compact Dynamic Accumulation of Ready Meals ne of Denmark’s leading food manufacO turers is increasing its efficiency by installing an AmbaFlex AccuVeyor® AVX Dynamic accumulation system. This overcomes any slowdowns at the downstream packer as the AccuVeyor® can accumulate several minutes of frozen ready meal trays from the spiral freezer. The freezer can keep running without causing any slowdowns, while the packer catches up later when running at higher speed. The result is much higher line efficiency and consistent meal quality.

The AccuVeyor® spiral accumulator actually has a double function. Besides accumulation, it also bridges the 3 meter height difference between the high end of the spiral freezer and the packer. So it provides both 90 meters of accumulation belt length and loweration for a footprint of only 2m square. A space saving, simple and

effective solution that has helped the local integrator specialist in packing systems to deliver a solution to be proud of.

The AccuVeyor® AVX is a proven concept patented by AmbaFlex some years ago.

It consists of multiple, parallel, individually driven, spiral tracks. Each track can be filled and emptied by a stream of ready meals as selected by a linear switch. So first lane one is filled, then lane two, etc. To maintain the FIFO process, the tracks are emptied in a similar order and then merged together to go on to the packer. For more information, visit www.ambaflex.com/products/accuveyor-avx.

Unlike other accumulation systems available for primary packing, the AccuVeyor® AVX uniquely features: FIFO handling, pressure-less and contactless accumulation, space saving spiral configurations, up to 8 parallel tracks, and up to hundreds of

meters of accumulation as required. Further proof of AmbaFlex’s leading position in Spiral Conveyor Solutions! J

The Ultimate in Belting Hygiene hen considering food safety in terms of production, the critiW cal component of any conveyor is the belt. The prime challenge is to use a conveying medium that takes hygiene to its practical limit. ENE Ltd, Ireland’s leading food conveyor manufacturer, is familiar with the challenge and has discovered a belting solution that leaps over the heads of all other belt solutions.

ENE Ltd is the exclusive UK and Ireland distributor for the Mafdel range of hygienic PositiveBelt and Deldrive belts. It is no accident that ENE Ltd frequently fits these cutting edge belts to many of its own products.

Mafdel solid belts do not have the plies, threads, joins, or cracks that harbour dangerous bacteria or contaminants. The Deldrive and Positivebelts are constructed of solid Polyurethane or Polyester which is durable and easy to maintain. All Mafdel products come with complete EU certification for both material and product.

A significant feature is that the Deldrive product will retrofit most existing modular conveyors with only a change of sprockets required. For further information contact ENE Ltd on 02840 622215, email sales@eneconveyors.com or visit www.eneconveyors.com. J FOOD & DRINK BUSINESS EUROPE, DECEMBER 2015

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TOMRA Sorting Food Supplies International Sorting Solutions to Ardo or over 25 years, TOMRA Sorting Food F has been a valued partner of Ardo, one of the largest frozen fruit, vegetable and carbohydrate producers in the world. It is from this successful partnership, that Ardo have managed to ensure a higher efficiency rate and consistently high levels of food safety.

The most recent work undertaken by TOMRA Sorting Food has been the development of a shape sorting machine for green beans to increase sorting performance.

Steve Raskin, sales director for EMEA at

Steve Raskin, sales director for EMEA at TOMRA Sorting Food.

TOMRA Sorting Food, says: “Together with Ardo, we evaluated different machine setups such as mechanical, optical, software, user friendliness which resulted in the strategic decision for a group purchase across all processing lines. Given the international status of the company, the opportunity to supply every production line with the same sorting machines added a significant amount of value to the quality of food being produced.”

“More recently, we also created a sorting solution for Ardo’s industrial spinach production, which has been another successful project. The capabilities of TOMRA’s Genius machine ensure that the spinach is sorted before and after the washer, in order to remove foreign material and discoloured leaves.” Steve continues: “Introducing innovations on both the mechanical and optical aspects, guarantees a total inspection of each spinach leaf at high capacity.

“Currently, Ardo has over 100 different sorting machines running at various plants across Europe. Due to our strong relationship with the company and TOMRA’s high sorting performance, nearly all of Ardo’s

purchases have been made with TOMRA Sorting Food,” says Steve.

TOMRA Sorting Food is also able to organize dedicated training sessions to ensure Ardo are achieving optimal sorting results day-by-day. Steve says: “I’m confident that TOMRA’s advanced and innovative technologies guarantees the highest level of reliability and increases Ardo’s competitiveness in the market.” J

Operator QA Ensuring Traceability and Quality Throughout the Supply Chain perator Systems have a O mission, which is the foundation for everything they do – Visibility for improvements. Operator Systems know that all manufacturing companies constantly look for ways to improve effectiveness and competitiveness. Operator Systems have designed and developed their offerings to help clients meet this mission.

Their team has worked together with three food companies for more than three years on the development and commissioning of a standard tool that meets all the QA demands across different food sectors. The Operator QA tool ensures traceability and quality throughout the entire supply chain process from raw mate32

rials to the finished product heading out to customers.

The Operator MES is an intuitive, ergonomic and easy to use software which automatically collects and collates all the information in one combined IT solution, acquired to measure main production KPI’s

like OEE, which provides a unique opportunity for real time production process analysis. This not only covers shop-floor processes but also influences the whole supply chain, distribution, quality assurance and maintenance areas.

The Operator MES suite is more than just other solutions in the company IT landscape, with more than 130 installations globally Operator Systems have proven that they can help to stay competitive and to meet clients and regulatory ever-demanding requirements. Operator Systems believe that customers are their best testimonials – Operator Systems build on long-lasting partnerships, and many customers have been together with the company for more than 10 years. J

FOOD & DRINK BUSINESS EUROPE, DECEMBER 2015

I VEGETABLES & FRUIT

50-Year-old Pinguin Starts New Lease of Life Now part of the recently enlarged €3.94 billion turnover Greenyard Foods, Belgium-based frozen vegetables and fruit processor Pinguin celebrated its 50th anniversary during 2015. perating from ten production sites and employing 1,597 people, Pinguin grows and processes more than 400,000 tonnes of fresh frozen products (vegetables, herbs, fruit and culinary preparations based of vegetables) for retail, food service and the industry annually. In the year ended 31 March 2015, the company achieved revenue of Eur414.1million and REBITDA of Eur33.6 million.

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Vegetables and Salvesen Foods, both in the UK, and Lutosa in Belgium. Two years later in 2009, the PinguinLutosa Food Group was formed, encompassing eight frozen food production sites spread across Europe in Belgium, France and the UK, and sales offices worldwide.

PinguinLutosa Food Group continued to expand its international footprint with the acquisitions of d'Aucy Frozen Foods, with operations in France, Hungary and Poland,

Pinguin grows and processes more than 400,000 tonnes of fresh frozen products annually.

"Pinguin is a leading, international processor of harvest fresh vegetables and fruit into long-lasting, tasty and healthy, frozen food products. Our products are easy and fast to prepare and offer convenience as an added value,” says Hans Luts, managing director of Pinguin.

Pinguin was founded in 1965 by brothers Andre, Georges and Frans Dejonghe, who established a small factory at Westrozebeke in Belgium, which froze 500 tonnes of vegetables in its first year of operation. The Pinguin brand name was launched in 1968. A second production site was added in 1986 before the second generation - Koen, Jan and Herwig Dejonghe took over the business in 1992.

International Expansion Pinguin started its international expansion in 1995 when it formed Legum’land Surgeles as a joint venture between Pinguin, French farmers and Fisher Frozen Foods (UK). Having listed on the stock exchange in 1999, Pinguin took over Fisher Frozen Foods in King's Lynn in 2002, providing the basis for Pinguin Foods UK. Legum’land Surgeles was renamed Pinguin Aquitaine following the take-over.

Further major expansion followed in 2007 with the acquisition of Padley

and Scana Noliko, the Belgium-based company specialising in the production of vegetables and vegetable-based, ready-to-eat meals such as soups, sauces, dips and pasta dishes in jars and tins.

Emergence of Greenyard Foods In 2013, PinguinLutosa Food Group sold its potato division, Lutosa, to McCain Foods, the world’s largest manufacturer of frozen potato products. Following the divestment of Lutosa, which had an enter-

prise value of Eur225 million, the remaining parts of PinguinLutosa Food Group were reconstituted as Greenyard Foods.

The new name was designed to underline the international character of the group as well as the natural origin of the vegetables and fruit processed by the independent divisions of Pinguin (frozen foods) and Noliko (canned foods). Last year, the group structure changed again with the departure of Herwig Dejonghe, who acquired Pinguin Aquitaine.

For the year ended 31 March 2015, Greenyard Foods reported EBIT of Eur27.5 million on revenue of Eur635.4 million. The Pinguin frozen foods division accounted for about two-thirds of sales.

“The frozen division´s success is based on a long-term vision that focuses resolutely on quality and sustainable agriculture,” points out Hans Luts. “The quality is guaranteed by the best seeds and agricultural land, the most highly-motivated farmers, high-tech installations and a strictly-monitored production process from the farmer all the way to the consumer. Moreover, sus-

Employing 2,289 people worldwide, Greenyard Foods has a distribution network spreading across more than 90 countries.

FOOD & DRINK BUSINESS EUROPE, DECEMBER 2015

33

Hans Luts, managing director of Pinguin.

tainability and respect for man and the environment are central throughout the production, packaging and transport of the products.”

New Combination While celebrating its 50th anniversary, Pinguin commenced a new stage in its development earlier this year. In June 2015, Greenyard Foods Group combined with Univeg Group and the Peatinvest Group to create a global leader in fruit and vegetables, capable of offering the full range of frozen, canned and fresh products.

With annual revenue of Eur3.2 billion,

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Univeg Group is a vertically integrated world leader in the sourcing and supply of high-quality fresh and fresh-cut fruit and vegetables, supplying 25 out of 30 of the largest food retailers in Europe and many large food retailers in the United States.

The Eur65.2 million turnover Peatinvest Group has been involved in the horticultural sector for 30 years. Its key products consist of a variety of growing media for gardening and growing, both for ornamental plants and for fruit and vegetable crops.

Now encompassing Univeg Group and Peatinvest Group, the new look Greenyard Foods operates 13 production facilities in five European countries - Belgium, France, the United Kingdom, Poland, and Hungary. Two of the plants produce thermally preserved foods in tins and jars, while the others process frozen vegetables and fruit. Employing 2,289 people worldwide, Greenyard Foods has a distribution network spreading across more than 90 countries. The commercial and operational synergies from the merger are expected to enable the combined Greenyard Foods Group to grow revenues faster than the individual businesses.

ers, employees and shareholders. We believe societal trends call for a broader view on fruit and vegetable consumption,” explains Hein Deprez, chairman of Greenyard Foods. He believes that the current trends and growth drivers in the European fruit and vegetables and growing media market will lead to a consolidation of the industry and support the growth of large players such as the combined Greenyard Foods Group with both broad sourcing and service capabilities.

The mission statement of Greenyard Foods is to: ‘Make lives healthier by helping people enjoy fruit and vegetables at any moment of the day in an easy, fast and pleasurable way’. J

Industry Consolidation “Creating a combined group offering fresh, frozen and canned fruit and vegetables will be beneficial to growers, consumers, retail-

FOOD & DRINK BUSINESS EUROPE, DECEMBER 2015

Pinguin is a leading, international processor of harvest fresh vegetables and fruit.

ENERGY

ENVIRONMENT

I WASTEWATER SOLUTION – CASE STUDY

Premier Foods – Ambrosia Plant – Lifton Devon he effluent plant at Premier Food Ambrosia creamery, Lifton, T Devon generates sludges from 2 humus tanks, a DAF plant and surplus activated sludge from the activated sludge process.

The sludge’s were pumped to a belt press which was requiring a lot of attention so it was decided to trial the screwpress unit type RoS3I in 2012.

The output cake from the belt press was 9.55% DS and the trial gave 10.8% DS but it was felt with mixing a better result could be achieved with a screwpress.

The RoS3Q-440 was selected for the duty and Huber checked that the existing building could be utilized. The existing conveyor and polymer make up was also to be used. Huber advised on the installation layout to use the existing building and were selected in November 2014 to supply a new screwpress with controls which also included the conveyor and polymer dosing controls.

RoS3I trial unit at the effluent plant of Premier Foods Ltd., Lifton.

The trial unit comes complete with feed pump, flowmeters, polymer dosing equipment, discharge conveyor and all controls. All equipment is mounted in a 30 foot container to make trials easy to set up and run.

Mixing sludges was a problem during the trials and polymer dosing rates were difficult to define. The dry solids varied from 0.28 % to 5.46% DS. A daily sludge rate of 57M3/day was established with an estimated 50% DAF sludge and 50% biological sludge. The trial work was conducted with the Huber type RoS3I but due to the biological fine solids the type RoS3Q was chosen as this handles biological sludges better.

New Screwpress in workshop.

The cake from the Screwpress is consistently drier.

Cake from RoS3I trial unit.

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The plant was commissioned in July 2015 and has given very good results saving Premier Foods in disposal costs.

The Utilities Engineering Manager at Lifton Phil Dawes states: “The press is working extremely well on the initial effluent stream and we will be looking to include further waste streams going forward to further reduce costs. Huber were very helpful in the initial discussions and through the trial process.”

For further information contact: Tony Clutten, Huber Process Sales Manager, Tel 01249765050; Mobile 07525224521; Email tc@huber.co.uk. J FOOD & DRINK BUSINESS EUROPE, DECEMBER 2015

ENERGY

ENVIRONMENT

I SUSTAINABILITY

Coca-Cola HBC Announces New Commitments oca-Cola HBC, a leading bottler of the brands of The CocaCola Company, has announced new water and carbon comC mitments after being named by the Dow Jones Sustainability Indices (DJSI) as the world sustainability leader in the beverage industry. Coca-Cola HBC intends to reduce water use intensity by 30% by 2020, compared to 2010 and direct carbon emissions intensity by 50% over the same period.

The company’s approach to sustainability was endorsed in September when Coca-Cola HBC was named beverage industry leader by the Dow Jones World and Europe Sustainability Indices for the second consecutive year. Coca-Cola HBC was also ranked eighth out of the top 100 companies listed on the Financial Times Stock Exchange (FTSE 100) Index for its carbon reporting by Carbon Clear and ranked first within the beverage sector.

Dimitris Lois, chief executive of Coca-Cola HBC, says: “Sustainability is an integral part of our culture, visible in every aspect of our business. Being ranked by DJSI as world sustainability leader in the beverage industry inspires us to continuously raise the bar. It is our pleasure to make these commitments related to our water and carbon footprint. Our partnerships with stakeholders and our communities have been fundamental to our achievements

so far and will continue to be instrumental in meeting our new commitments, supporting the global action to reach the Sustainable Development Goals recently endorsed by the United Nations.”

This is the eighth year that the company has been included in the DJSI, the global benchmark for corporate sustainability, due to its rigorous assessment process and its focus on best-inclass companies.

Of the 2,500 companies across different industries, invited to participate in the DJSI assessment worldwide, Coca-Cola HBC ranked beverage industry best with a total score of 87/100. This was 34 points higher than the industry average. The company was ranked industry best in eight criteria: code of business conduct/compliance/anticorruption, environmental policy, packaging, raw materials sourcing, human capital development, health & nutrition, social reporting, and talent attraction & retention. J

FOOD & DRINK BUSINESS EUROPE, DECEMBER 2015

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I DAIRY

Ornua – The Home of Irish Dairy Ornua (formerly the Irish Dairy Board) is continuing to increase the capacity of its business through brand growth, innovation and in-market investment as Ireland’s largest exporter of dairy products competes in the post-milk quota era. s a co-operative, Ornua is responsible for developing premium dairy products and building routes to market on behalf of Ireland’s 17,000 dairy farmers. Employing over 3,000 people in Ireland and across its 18 subsidiaries and in-market teams around the world, Ornua is the owner of the famous Kerrygold brand. Its portfolio of consumer brands also includes Pilgrims Choice, Dubliner, Beo, Shannongold and MU. With pre-packing and blending facilities located in Germany, the UK, the US, the Middle East and Africa, Ornua offers an extensive range of food ingredients. It also develops bespoke food ingredient solutions for many of the world’s major food manufacturers.

Ornua’s business is structured on three core platforms Consumer Foods, Dairy Trading and Ingredients, and DPI, a speciality food distribution company in the US. Group subsidiaries in the UK, Spain, Germany and North America pack, distribute and market a wide selection of branded products, dairy ingredients and speciality food items of both Irish and non-Irish origin.

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€200 Million Investment In its drive to secure new high-value outlets for Irish dairy products and deliver strong returns to the farmers it represents, Ornua has made significant investments in the US, Germany, the UK, Saudi Arabia, and most recently, in Spain and Nigeria. Over the last five years, Ornua has invested over Eur200 million in growing its brands, in innovation and in opening new production facilities and offices around the world.

For example, during its last financial year, Ornua invested Eur36 million in brand development and market support.

Recent new product development initiatives have seen the launch of Kerrygold Irish Cream Liqueur in the US and The Kerrygold brand currently has retail sales in Kerrygold UHT excess of Eur600 million. under a new Kerrygold Chinese trade mark. The Kerrygold brand currently has retail sales in excess of Eur600 million.

In-market Investment Ornua is also continuing with its programme of in-market development. It has spent $800 million developing its US Food Ingredients business. The most recent project entailed the opening of a new Cheese & Ingredients facility in Wisconsin to provide Ornua with greater scale in the value added cheese ingredients sector.

In the UK, Ornua has invested heavily in developing state-of-

the-art facilities at its Adams Foods subsidiary at Leek in Staffordshire. Adams Foods is the UK’s leading supplier of retail pre-packed hard cheese. The Adams Foods cheese portfolio includes branded cheddar in the form of Pilgrims Choice, and added value private label cheeses. Adams Foods also sells and markets Kerrygold butter in the UK. Elsewhere, Ornua recently completed a Eur14 million investment to expand storage, packing and NPD facilities at NeukirchenVluyn in Germany. The modernised facilities are helping to meet the growing demand for Kerrygold products in Germany and the surrounding regions.

Ornua is also focusing on exploiting opportunities in emerging regions such as Africa, MENA (Middle East & North Africa) and China, where it has been establishing an in-market presence.

Ornua’s latest in-market investment is in Nigeria, where it has just opened a new Kerrygold packing plant in Lagos. The facility will provide a new route to market for Irish powdered milk, which will be exported to Nigeria and then packaged and marketed under the Kerrygold brand. Kerrygold powders are sold in small sachets,

Ornua has invested heavily in developing state-of-the-art facilities at its Adams Foods subsidiary at Leek in Staffordshire.

FOOD & DRINK BUSINESS EUROPE, DECEMBER 2015

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Designed to ensure a world-class supply chain to meet the evolving needs of Kerrygold customers and consumers around the world, and due to commence production in Spring 2016, the new Centre of Excellence will process up to 40,000 tonnes of packet/tub butter a year, and will significantly streamline Ornua’s production activities in Ireland.

New Identity In April 2015, Ornua unveiled a new global corporate identity – changing its name from Irish Dairy Board Co-operative – marking a culmination of its work in growing its brands, New Product Development, in-market expansion, acquisitions and improving operational efficiency in preparation for the abolition of the EU milk quotas.

In its last full financial year before the abolition of EU milk quotas, Ornua delivered strong growth in both turnover and profitability as it continued to invest in the development of new routes to market for Irish dairy products. Turnover increased by 10% to Eur2.34 billion, helping to drive a group operating surplus of Eur30.3 million for 2014. Profit before tax was up 23% year-onyear to Eur28.1 million, resulting in a Eur12 million bonus to members, including a cash bonus of Eur7.5 million, up 15% on the previous year.

Recent new product development initiatives include the launch of Kerrygold Irish Cream Liqueur.

pouches or tins, primarily through small distributors. Ornua opened its African headquarters in Port Elizabeth in 2013 to further strengthen its foothold in the African market. It currently employs 250 people both directly and indirectly. The new facility is a joint venture between Ornua and distribution and packing partners, Fareast Mercantile Company Ltd (FMCL). Nigeria is one of the top three importers of powdered milk products in Africa and the largest importer of full-fat milk powder.

Acquisitions Ornua has successfully expanded its international reach through strategic acquisitions. The Irish dairy co-operative targets high profit growth businesses, often in milk deficit regions that provide an immediate route to market for Irish dairy products.

The latest move of this type involved the acquisition of a pizza cheese and cheese blends plant in Spain which has been the basis for the formation of a Spanish subsidiary, Ornua Espana. The deal included a long-term contract for the supply of cheese to Telepizza, the fifth largest pizza chain in the world. The acquisition has strengthened Ornua’s position as a global provider of cheese to the quick service restaurants and food service sectors and complements similar investments made in its US, Middle East and UK customised cheese solution businesses.

The Spanish business has been developed as a manufacturing, trading and sales hub to service Ornua’s growing customer base in Southern Europe.

The opening of a new Research & Development Centre in September has added a new dimension to the Spanish operation.

Centre of Excellence The Irish dairy co-operative is currently building a Centre of Excellence for Kerrygold butter production and packing in Mitchelstown, County Cork. The new facility will support the global development of the Kerrygold brand, which is a valuable outlet for the expanded Irish milk production since the abolition of the EU quota regime.

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Post-quota Era According to chief executive Kevin Lane, Ornua has over the past number of years “been strategically developing a global infrastructure to take advantage of the opportunities the removal of EU milk quotas will bring to the business.”

“We enter into this new era for Irish dairying in an excellent position, with a strongly performing organisation, geared for growth,” he says. J

Providing cold storage facilities for Ornua CGI Foodpark Midleton 021 4631111

FOOD & DRINK BUSINESS EUROPE, DECEMBER 2015

CGI Coldstores Dublin 01 8226700 www.cgil.ie

Tailored Chain Supply Solutions From Principal Logistics Technologies rincipal Logistics Technologies has P worked closely with Ornua since 2008.

Principal Logistics Technologies’ warehouse management software is now used in over a dozen independent third party refrigerated storage companies across Ireland, Northern Ireland and the UK. These sites are fully integrated with Ornua’s in-house systems.

Such interfacing provides Ornua with complete, real time visibility & traceability of all product stocks at each independently managed location.

For independent storage companies the benefit of such an Interface is the eradication of the tedious chore of transcribing information from masses of documents and more importantly eliminating errors.

“Our experience across these sites has been central to seeing our application being deployed to manage inventory into cheese, milk and other dairy product manufacturing facilities,” says Ciara Lawlor, Business Development manager at Principal Logistics Technologies. “We manage raw materials into storage, bill of materials & raw materials into production, finished product from production through to despatch, along with controlling all ancillary processes such as chemical and management of biological results, product regarding and all product rework.”

She adds: “This provides complete traceability across the entire operations and a reassurance on all

levels for food and dairy producers.”

For companies like Ornua, quality, safety, and above all traceability are paramount in ensuring consumer confidence. Traceability is a challenge for all food and dairy producers and as such, it is vital to follow all dairy products from farm all the way to end user.

With a long standing relationship with the likes of Ornua, and many of Ireland and the UK’s largest food producers Principal Logistics Technologies has been providing tailored chain supply solutions to this sector for over 20 years. J

Swisslog Wins Major Order From Saudi Arabian Food Producer Almarai audi Arabian food producer Almarai has S commissioned Swisslog to automate the distribution logistics for its operations in Al Kharj. The value of the order is approxi-

Daniel Hauser, Swisslog’s Managing Director for Germany, Austria, Switzerland (DACH) and the Middle East.

mately Eur43 million. By the end of 2018, Swisslog will implement automation projects in five phases. In addition to innovative warehouse logistics, Swisslog will also handle on-site system operation.

The Saudi Arabian company Almarai is the world’s largest vertically integrated dairy company, also specializing in fruit juices, bakery products, poultry and infant nutrition. Almarai will link this major project to a strategic reorientation of its logistics operations. It plans to achieve additional competitive advantages by optimizing and significantly accelerating its logistics processes.

The scope of the Swisslog order includes cranes, conveyors, monorail systems, automated truck loading and automated picking modules. To control all goods movements, Swisslog will install warehouse management software based on the EWM warehouse management module from SAP. Dynamic simulation will make it possible to visualize and optimize all data from goods throughput to system performance.

In addition, Almarai management has opted for Swisslog’s System Operation service to ensure smooth warehouse operations. Swisslog service technicians will maintain and support the systems on site.

“Almarai is the second Middle Eastern company in a short period of time that we were able to gain as a customer,” says Daniel Hauser, Swisslog’s Managing Director for Germany, Austria, Switzerland (DACH) and the Middle East. “This is proof that, thanks to our innovative solutions and powerful network in the region, we can provide tailor-made solutions to meet the requirements of each and every customer.” J

FOOD & DRINK BUSINESS EUROPE, DECEMBER 2015

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I IRISH WHISKEY

€10 Million Connacht Whiskey Distillery Opens The new €10 million Connacht Whiskey Distillery - the latest new distillery to open in Ireland - plans to produce hand crafted, pot distilled, regional Irish whiskey primarily for the fast-growing US market. ocated at Ballina in County Mayo, the 27,000 square feet distillery, which also features a visitor centre, is expected to produce up to 70,000 cases per year. It is one of only a handful of developed craft distilleries across the country.

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Conn and Loch Cullin. The site is set on the banks of the River Moy, an acclaimed salmon and trout river, making the distillery a beautiful location to work and to visit.

Of course, Irish whiskey is usually aged for four to five years or even longer. Consequently, it will be some time before Connacht Whiskey’s flagship product is ready for sale. In the interim, Connacht Whiskey has been developing an Irish gin and Irish poitin. Robert Cassell, has a long and distinguished record with awardwinning gins, and is looking forward to working with botanicals indigenous to Ireland, such as clover, elderberry flower, and hawthorn berries, to produce a gin that is botanical, yet bold with juniper. He is also looking forward to producing an Irish poitin which honours the heritage of ancient Irish distillers.

David Stapleton, Rob Cassell, Tom Jensen and PJ Stapleton at the stills, which were designed by Rob Cassell, master distiller, and are the only ones of their kind in Ireland.

US Market Connacht Whiskey plans to actively sell its brands in the Irish domestic market but its primary targeted market is the US, due to the Irish whiskey sector’s growth potential and the extensive knowledge and relationships within the US that the company’s executive team has developed.

In 2014, Americans consumed over 50 million cases of whiskey (American, Canadian, Scotch, Irish, and others), which accounts for 23.6% of all spirits consumed in the US. Irish whiskey currently accounts for over 2.6 million cases and grew by nearly 8%

At the heart of the new Irish whiskey venture are three pot stills custom-designed by master distiller Robert Cassell. The stills were made to his specification in Victoria, British Columbia, Canada by Specific Mechanical Systems. Indeed, the new pot stills at the distillery are the only ones of their kind in Ireland.

Self-contained Connacht Whiskey Company’s facility is totally self-contained.

Aging of the whiskey will be carried out in barrels housed in a rick house within distillery, and all bottling will also be done on site.

The distillery is located in a rustic setting in the West of Ireland, just a few kilometres from the Atlantic Ocean. Water for the distillery is sourced from the nearby, twin, pristine lakes of Loch FOOD & DRINK BUSINESS EUROPE, DECEMBER 2015

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over its 2013 sales. Furthermore, the US represents a unique market for Irish products, because about 33.3 million Americans 10.5% of the total US population - claim Irish ancestry, and these Americans fully embrace their Irish heritage, lending themselves as loyal consumers of Irish goods.

Executive Team Connacht Whiskey is different from most of the other existing or planned independent Irish whiskey producers because its executive team includes three individuals with longstanding and strong ties to the US liquor industry, uniquely positioning the company to market and sell its whiskey in the fastgrowing US market.

Tom Jensen was the president and chief executive of RemyCointreau USA, when it was the agent for The Macallan Scotch whisky brand in the US. During his more than thirty years in the liquor industry, Tom Jensen worked with a number of other famous brands, including Maker’s Mark, Cutty Sark, Ballantine’s, Canadian Club, and Suntory.

PJ Stapelton, whose family is from County Mayo, was the chairman of the Pennsylvania Liquor Control Board, which is responsible for wines and spirits sales of over $2 billion a year. PJ Stapelton has an extensive understanding of the complex governmental alcohol regulatory system in the US. Master distiller, Robert Cassell, is not just a distilling consultant, but is an owner of Connacht Whiskey. Robert Cassell has won numerous international gold medals for his spirits. Robert Cassell is intimately involved in all aspects of Connacht Whiskey’s brand

development, distillation, and marketing.

Regionally Produced Whiskey Tom Jensen comments: “Irish whiskey is the fastest-growing whiskey in the US, but is outsold by scotch 4 to 1. Unlike Scotch, Irish whiskey lacks regionally produced whiskeys that reflect the various terroirs of Ireland.

Our goal is to introduce US consumers to the beauty of a hand crafted, pot distilled Irish whiskey from Western Ireland.”

“Irish whiskey is the fastest growing spirit in the US market in the past two years and demand is outpacing availability,” says PJ Stapleton. “People are becoming more engaged with Irish whiskey and are keen to try something different - and we are very confident that our pot distilled whiskey will appeal to their palate. We will also be producing Conncullin Gin and expect to have that available nationally and internationally in 2016. Globally there has been a marked uptake for this spirit and gin consumers enjoy searching for ever more nuanced combinations of berries and botanicals.”

Tom Jensen adds: "Our team has a deep understanding of export markets in general and the US in particular. We have relationships with the US distributors and retailers that will ensure our product will reach export consumers."

Other Directors In addition to Tom Jensen, PJ Stapelton and Robert Cassell, the other Connacht Whiskey directors are David Stapleton and John Romanelli. David Stapleton has extensive experience in manufacturing and has worked in the US, Europe, Asia and Ireland. John

Hydrotech Water Services provides an excellent service for Commercial Water Problems in Ireland.

We are the number one water treatment experts with years’ experience in providing cost effective solutions in the field of commercial water purification and management.

We provide you with the best possible solution for your Commercial Water Problems. All systems are custom made to our customers’ specific requirements. We provide water treatment solutions for the following water problems:

•Discoloured water •Iron and manganese •Excessive bacterial and e-coli counts •Hard water •Low pH •Smelling and tasting issue Hydrotech provide detailed surveys and plans for all likely possibilities such as dry spells, power cuts, etc, so you always have quality water on demand. If you run any type of business we are here to advise you and outline all options available.

Hydrotech Water Services are privileged to be the Water Filtration Experts at Connacht Whiskey Distillery Company.

Gerry and all the staff would like to thank Connacht Whiskey for their valued custom and wish them every success in their new venture.

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FOOD & DRINK BUSINESS EUROPE, DECEMBER 2015

Romanelli, whose background is in corporate finance, founded Seahawk Advisory in 2007, after a 25 year career with major investment banks, primarily with Credit Suisse First Boston in New York and London.

Besides the directors, the investors in Connacht Whiskey are a group of Ireland and US-based friends and family with no corporate or private equity money involved.

Irish Whiskey Renaissance There are now 32 new or proposed distilleries across Ireland compared to 2013 when there were just four distilleries producing and selling Irish whiskey. Apart from Connacht Whiskey, a number of new Irish whiskey distilleries have opened in the past couple of years.

William Grant & Sons, the independent family owned Scottish distiller and owner of the Tullamore DEW Irish whiskey brand, has opened a new Eur35 million whiskey distillery in County Offaly. Indeed, the Tullamore Distillery was the first new distillery to be constructed on a greenfield site in Ireland in over 100 years.

Irish Distillers Pernod Ricard, the largest Irish whiskey producer, recently opened a Eur100 million extension to its plant at Midleton in County Cork to support the continued growth of the Jameson Irish whiskey brand, which now sells in excess of 5 million cases globally.

The Teeling Whiskey Company has opened a new distillery and visitor centre in Dublin. The Eur10 million distillery is the first in Dublin in over 125 years.

Walsh Whiskey Distillery, backed by Italian drinks giant, Illva Saronno Holding, has unveiled a Eur25 million expansion programme for its site in County Carlow.

Leading US Drinks firm Brown-Forman Corporation, the owner of the Jack Daniel’s, Southern Comfort and Woodford Reserve brands, has started construction of its new the $50 million (Eur44 million) Slane Distillery and visitor centre in County Meath.

Distinctive Approach Connacht Whiskey is distinctive in the type of Irish whiskey it will produce. Rob Cassell explains: "We are very different from the massive, production-driven Irish distilleries that have been in the news lately. We are a company focused on bringing consumers small batch Irish whiskey that is smooth, full of character and has a distinctive flavour. We have a luxury of opportunity here at Connacht Whiskey that allows us to have a step into the past by creating traditional style Irish whiskey. We are able to innovate yet pay homage to the past, and are recreating a spirit that can only be produced in the West of Ireland. Irish whiskey has a rich and forgotten past of its pure pot distilled whiskey and I am honoured to have the opportunity to pay tribute to and create a spirit that is unique to the West of Ireland.� J FOOD & DRINK BUSINESS EUROPE, DECEMBER 2015

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ROLEC Processing Systems For Whisky ith the main character of whisky being developed during the W long lasting barrel aging phase the short process from grinding the malts until fermenting the wash is often neglected in the daily operation of distillers. However it consumes considerable amounts of energy, raw materials, water and other resources and can be a deciding factor for achieving acceptable production performance of the entire plant.

Due to the similar raw material usage and initial process steps distillers can profit by analysing the equipment used in the beer brewing industry where massive improvements in efficiency were reached over the last decades. With the rising craft brewing scene there is also a demand for more flexible process systems that can be used for very unique recipes and a wide range of different products.

This latest equipment design can be a great benefit for whisky processing - it reflects the individual process demands and combines them with state-of-the-art process efficiency.

Being one of the most noted suppliers to the international craft brewing scene ROLEC has also developed systems specifically designed for whisky processing. The traditional brewing equipment was further developed for running higher gravities and allowing distillers to achieve better alcohol yield per used amount of malt.

The systems are engineered for an optimum balance of energy consumption, efficient usage of resources and an ideal level of automation. J

Fonterra Launches GOS Ingredients For Global Infant Formula Market lobal dairy co-operative Fonterra has G announced that commercial samples of NZMP Galacto-Oligosaccharides (GOS) will be available early in the New Year.

Fonterra’s new partnership with leading UK dairy company, Dairy Crest, means it can now offer the specialty paediatric ingredient to food manufacturers globally.

NZMP GOS will give infant formula manufacturers the ability to offer additional consumer benefits. GOS is known to support digestive comfort and improve mineral absorption. It is anticipated that European and Chinese infant formula manufactures will be among the first to start using NZMP GOS. The innovative ingredient is an extension of Fonterra’s NZMP specialty ingredients portfolio for infant nutrition.

“Combined with Fonterra’s expertise in paediatric nutrition, the ever growing portfolio of NZMP ingredients gives manufacturers even more flexibility to fine tune their products,” says Han Huistra, Fonterra Regional Director Ingredients Europe Middle East/Africa. “We are delighted to add this important ingredient to our portfo46

Pictured at the signing of the joint venture to produce GOS were (from left to right): John Beech, Financial Director of Fayrefield Foods; Theo Spierings, Chief Executive of Fonterra; and Mark Allen, Chief Executive of Dairy Crest.

lio of specialised NZMP ingredient offerings. A new facility brings the very real advantages of being able to capitalise on latest control systems and equipment to consistently produce high quality products.

What makes this exciting is that traceability and supply versatility have also been designed as key traits for this business launch.”

Richard Jones, Managing Director Functional Ingredients at Dairy Crest, com-

ments: “By leveraging our expertise in the manufacture of dairy products, and Fonterra’s global reach and supply capabilities, we are delighted to successfully deliver high quality nutritional products to meet growing market demands. It is a testament to the strong Fonterra-Dairy Crest partnership and our ability to meet the desire globally for quality nutrition.”

NZMP GOS will be produced at Dairy Crest’s Davidstow facility at Cornwall in the United Kingdom. Dairy Crest has invested £20 million to set up a purposebuilt, state-of-the-art ingredients facility to produce GOS. Dairy Crest has entered into a joint venture to produce GOS with UKbased Fayrefield Foods, which will provide access to the necessary enzyme and other intellectual property. Fonterra will supply lactose and will also take responsibility for marketing and selling the product.

Once production is running at full scale, Dairy Crest will manufacture 10,000 MT of GOS annually and the product will be marketed and sold under the NZMP brand utilising Fonterra’s global distribution network. J

FOOD & DRINK BUSINESS EUROPE, DECEMBER 2015

New Maternal Nutrition Solution Provides ‘Building Blocks’ For Healthy Pregnancy formula and baby food manufacturers can Iketnfant now tap into the booming maternal nutrition marwith an innovative solution developed by Arla Foods Ingredients. Approximately 130 million babies are born worldwide each year, according to the World Health Organization. Meeting the correct nutritional requirements of mother and baby before, during and after pregnancy is critical.

Arla Foods Ingredients’ maternal nutrition solution contains three natural milk ingredients that provide the building blocks needed to support the well being of both the mother-to-be and her developing baby: • Lacprodan® whey protein – a high quality protein from milk that promotes satiety, helps to manage blood sugar levels and is easy to digest, while also supporting the development of maternal tissue and the unborn baby.

• Capolac® minerals – a concentrate of minerals from milk that supports the development of bones and teeth in the baby and reduces the risk of complications during pregnancy, as well as minimising loss of bone mass in the expectant mother.

• Lacprodan® PL-20 milk phospholipids – a phos-

pholipid-rich concentrate of milk proteins containing gangliosides, which supports early brain development in the unborn baby.

Anne Staudt Kvistgaard, Head of Pediatric Sales & Science Development at Arla Foods Ingredients, says: “The best start in life is through a healthy pregnancy, and the market for maternal nutrition is full of potential. In fact, between 2010 and 2014, the number of product launches in the global breastfeeding and pregnancy formula market grew at a CAGR of 29%, according to Innova. We expect our maternal nutrition solution to be particularly interesting in Asia, which is the fastest growing region in this category, as well as among innovative companies in western markets.”

Arla Foods Ingredients maternal nutrition solution is ideal for protein bars that will resonate with mothers-to-be. Anne Staudt Kvistgaard explains: “Products such as protein bars will appeal to busy pregnant women who need a tasty and healthy snack on the go. Pregnant women are just like other consumers – they want solutions that taste good, are natural, nutritious and filling, and which are convenient.” J

FOOD & DRINK BUSINESS EUROPE, DECEMBER 2015

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European Consumers Cutting Back on Sugar ew research by Mintel reveals that the majority of consumers in N key European markets are cutting back on their consumption of sugar. Mintel research finds that more than three in five Italian (64%), Spanish (63%) and Polish (61%) consumers say they are actively reducing or avoiding sugary foods. Additionally, over half of French (59%) and German (51%) consumers say the same.

Furthermore, 65% of UK consumers agree that a healthy diet should be low in sugar.

However, while there is strong consumer interest across a number of markets in low sugar products, Mintel research indicates there is a gap in the market for new product launches carrying a low, no or reduced sugar claim. Indeed, the proportion of product launches carrying this claim has hovered at around 5% of all food and drink products launched in Europe over the past five years, according to Mintel’s GNPD (Global New Products Database) service.

Sugar Backlash Chris Brockman, food and drink research manager EMEA at Mintel, comments: “Excessive sugar consumption continues to be criticized by the media and health professionals alike, resulting in today’s sugar backlash. This has led to sugar replacing fat and salt as the new dietary pariah across Europe. There is therefore a key opportunity for brands to address consumer fears and adapt their products to carry a low, no or reduced sugar claim.”

Within Europe, Italian consumers show the greatest interest in avoiding sugary foods, just 3% of food and drink products launched so far in 2015 in this country have featured a low, no or reduced sugar claim, up from 2% in 2012. Furthermore, this year just 5% of products launched in Spain, as well as 4% in Poland, France and Germany have carried the low, no or reduced sugar claim. Although these markets have seen limited activity in product innovation around this claim, it seems there has been a surge of activity in the UK market. So far in 2015, some 7% of food and drink products launched in the UK held a low, no or reduced sugar claim, up 48

from 4% in 2012.

Despite the lack of reduced sugar claims on pack, Mintel research shows consumers are looking for reduced sugar levels in a number of categories. Indeed, as many as two thirds (66%) of Polish, 60% of Spanish and 60% of French consumers agree there aren't enough healthy sweets available, for example sugar-free varieties. What is more, half (50%) of UK users who drink fewer carbonated soft drinks (CSDs) do so because they contain too much sugar, and 33% of German consumers prefer CSDs which are not so sweet in taste.

‘Goodness’ and ‘Naturalness’ Indeed it seems that ‘goodness’ and ‘naturalness’ are important factors for consumers in their perception of different sources of sugar.

Mintel research found that the top sugar or sweetener ingredient consumers viewed as healthy was honey, with over four in five Polish (87%), Italian (83%) and Spanish (80%) consumers agreeing it is good for their health, as well 77% of French and 68% of German consumers.

“The spotlight is fixed on high levels of added sugar in processed foods, and the push to reduce sugar across categories is ramping up.

Whilst traditionally there have been negative connotations linked to low, no or reduced products, today brands adopting this claim with regards to sugar should adopt more positive messaging, for instance by highlighting the products goodness, to appeal to consumer demand,” Chris Brockman adds.

Sour Flavours Finally, it seems consumer interest in cutting down on sugar has sparked a taste for more sour flavours. Two in five (43%) Polish, three in ten (30%) French and one quarter (23%) of German consumers express an interest in sweets with extreme flavours, for instance sour.

“As cloyingly sweet flavours fall out of favour, sour flavours are emerging across categories as the antithesis of sweet. With today’s consumer on high alert about their sugar consumption, interest in sour flavors is expanding across categories,” Chris Brockman concludes. J

FOOD & DRINK BUSINESS EUROPE, DECEMBER 2015