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February/March 2017

â‚Ź1 billion investment in Irish whiskey renaissance

Food & Drink Business Website:

www.fdbusiness.com


C o n t e n t s

- 35 B AKERY

- 3 M ERGERS & A CQUISITIONS

Greggs continues transformation from traditional bakery to food-on-the-go brand.

Coverage of British and international deals.

West Cornwall Pasty Co acquired by Samworth Brothers.

- 9 C OVER S TORY

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€1 billion investment in Irish whiskey renaissance.

Jean-Francois van Boxmeer, CEO, Heineken.

- 43 I NGREDIENTS & C ONSUMER F OODS Manor Farm to consolidate Irish market leadership with €25 million investment.

R EGULARS - 25 M OST A DMIRED

P AGE 31

Bas Alblas, CEO, Lamb Weston/Meijer.

PAGE 35

Roger Whiteside, CEO, Greggs.

Processing & Manufacturing 19, 20, 32, 37, 39 & 47

Kerry Group is Britain’s second most admired food company. PAGE 6

Materials & Ingredients . . . . . . . . . . . . 22 & 41

Peter Stahl, CEO, Hochland.

Energy & Environment . . . . . . . . . . . . . . . 27-29

- 31 P OTATO P ROCESSING

Lamb Weston/Meijer completes €120 million expansion.

Control & Automation. . . . . . . . . . . . . . . . . . 47

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Storage & Logistics . . . . . . . . . . . . . . . . . . . 48

Vincent Carton, CEO, Carton Bros (Manor Farm).

Managing Director: Colin Murphy Editor: Mike Rohan Group Operations Manager: Sylvia McCarthy

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- 33 S NACKS Global savoury snacks market to reach over $138 billion by 2020 as ‘snackification’ trend grows.

Jean-Christophe Coutures, CEO, Irish Distillers.

Weetabix to invest £30 million in UK manufacturing.

Production Manager: Sylvia McCarthy

Food & Drink Business Europe is published by Premier Publishing Limited, 51 Parkwest Enterprise Centre, Nangor Road, Dublin 12. Tel: + 353 1 612 0880 Fax: + 353 1 612 0881 E-Mail: info@prempub.com Website: www.fdbusiness.com Premier Publishing Limited can accept no responsibility for the accuracy of contributors’ articles or statements appearing in this magazine. Any views or opinions expressed are not necessarily those of Premier Publishing and its Directors. No responsibility for loss or distress occasioned to any person acting or refraining from acting as a result of the material in this publication can be accepted by the authors, contributors, editor and publisher. A reader should access separate advice when acting on specific editorial in this publication!

Health, convenience and choice drive fruit snacks NPD.

- 34 C EREALS

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M E E R R G G E E R R S S M Kraft Heinz Drops $143 Billion Takeover Bid For Unilever Kraft Heinz Company has decided against proceeding with its takeover of Unilever after an initial offer of a mix of cash and shares, valuing Unilever at $143 billion (£115 billion), was rejected. According to Unilever, this fundamentally undervalued the business. Kraft Heinz has subsequently amicably agreed to withdraw its proposal for a combination of the two companies. A combination of Kraft Heinz and Unilever would have created the world’s second largest consumer goods group by sales after Nestlé and represented the third-biggest takeover in history. Kraft Heinz is 50% owned by veteran investor Warren Buffett's Berkshire Hathaway and 3G Capital, the private equity firm. In the recent past, 3G Capital was involved in Anheuser-Busch InBev's acquisition of SABMiller and the merger of Kraft and Heinz.

Heineken to Become Second Biggest Beer Business in Brazil Heineken has agreed to acquire Brasil Kirin, one of the largest beer and soft drinks producers in Brazil, from Kirin Holdings of Japan for Eur664 million. The transaction will transform Heineken's existing business across Brazil by extending its footprint, increasing scale and further strengthening its brand portfolio. On closing, Heineken will become the second largest beer company in Brazil, with a stronger commercial platform from which to capture future profitable growth in an exciting beer market. Jean-Francois van Boxmeer, chairman and chief executive of

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Heineken, comments: “This transaction marks a step-change in scale in an exciting beer market, building on our success to date in the premium segment and strengthening our platform for future growth. It reiterates our commitment to the Brazilian market and confidence in our ability to generate attractive returns over the long-term across all segments of the market.”

Jean-Francois van Boxmeer, chairman and chief executive of Heineken.

Reckitt Benckiser to Acquire Mead Johnson in $17.9 Billion Deal Reckitt Benckiser Group, the world’s leading consumer health and hygiene company, is acquiring Mead Johnson Nutrition Company, a global leader in infant and children’s nutrition, for $16.6 billion. Total value of the transaction is $17.9 billion including Mead Johnson’s net debt The Mead Johnson name has been associated with sciencebased infant and children’s nutrition products for over 100 years. The company’s Enfa family of brands, including Enfamil infant formula, is the world’s leading franchise in infant and children’s nutrition. Mead Johnson supplies more than 70 products in over 50 markets worldwide. In the year ended 31 December 2016, Mead Johnson reported net sales of $3.74 billion, of which 50% were generated in Asia, 17% in Latin America and 33% in North America/Europe. The integration of RB’s and

Mead Johnson’s businesses is expected to deliver cost savings of £200 million per annum by the end of the third full year following completion.

Hain Celestial Announces Strategic Acquisition The Hain Celestial Group, the US-based organic and natural products company with operations in North America, Europe and India, has announced that one of its wholly-owned subsidiaries has agreed to purchase Yorkshire Provender. Founded in 2007, Yorkshire Provender is based in North Yorkshire, England, and produces premium branded soup and its products are sold in leading retailers, on-the-go food outlets and food service providers in the UK. In 2016, Yorkshire Provender had approximately £6 million in net sales and is expected to be accretive to Hain Celestial's earnings in fiscal year 2018. The deal is subject to formal clearance from the Competition and Markets Authority in the United Kingdom.

Cloetta Acquires Candyking Swedish confectionery group Cloetta is to acquire Candyking Holding – a leading concept supplier of pick and mix candy in the Nordic countries and the United Kingdom. The acquisition strengthens Cloetta’s position within pick & mix and creates substantial synergies. This is in line with the strategy to grow within the category since it is an important and in many countries growing part of the confectionery market. The initial purchase price amounts to SEK325 million (Eur34 million) on a cash and debt free basis with a potential additional purchase price of maximum SEK225 million based on the result of Cloetta’s and Candyking’s combined sales

FOOD & DRINK BUSINESS EUROPE, FEBRUARY/MARCH 2017

volume of pick and mix in confectionary and natural snacks in the Nordic countries, the United Kingdom and Poland during 2018. Founded in 1862, Cloetta manufactures sugar confectionery, chocolate products, pastilles and chewing gum and has established a strong presence in the Nordic region, The Netherlands, and Italy. In total, Cloetta products are sold in more than 50 markets worldwide. The transaction is subject to approval from the Swedish Competition Authority. The acquisition will be financed by Cloetta using cash and its existing credit facilities.

Glanbia Announces Two Strategic Acquisitions Glanbia, the global nutrition group, is investing approximately Eur181 million to acquire two companies, Amazing Grass in the United States and Body & Fit in the Netherlands. Both businesses have a strong strategic fit with Glanbia’s Performance Nutrition (GPN) division and will extend its reach to new consumers and channels. The 2016 full year combined net revenues of Amazing Grass and Body & Fit was approximately Eur99 million and the acquisitions will be marginally earnings accretive in 2017.

Siobhan Talbot, group managing director of Glanbia.

JDE to Acquire Brazilian Coffee Brands JDE, the Netherlands-based global coffee and tea group serving consumers in more than 100 3


M E E R R G G E E R R S S M countries across Europe, Latin America and Australia, is to acquire a portfolio of local Brazilian brands, including Pele, Gransssimo and Tropical, from Cacique Company. Subject to formal approval by Brazilian regulatory authorities, the acquisition will complement JDE Brazil’s existing coffee portfolio and strengthen its leadership in core regions across the country. It represents an important step for JDE as it continues to evolve to meet the preferences of the Brazilian consumers.

Gruppo Campari Acquires Super-premium Gin Brand Gruppo Campari is acquiring most of the assets of BULLDOG London Dry Gin, an independently owned brand, for US$55 million plus the assumed liabilities and working capital for approximately US$3.4 million. BULLDOG Gin was created in 2007 by entrepreneur and former JP Morgan investment banker, Anshuman Vohra. Launched in the USA in 2007 and subsequently in Europe, BULLDOG Gin has experienced a meteoric rise and is the number four premium gin in the world (IWSR) and also the fastest growing premium gin in the world by annual growth rate. Founded in 1860, Gruppo Campari is now the sixth-largest player worldwide in the premium spirits industry. It has a global distribution reach, trading in over 190 nations around the world with leading positions in Europe and the Americas.

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Ornua to Acquire UK Cheese Business Ornua, Ireland’s largest exporter of Irish dairy products, has agreeD to acquire FJ Need (Foods), a cheese ingredients company based at Cheshire in England, for an undisclosed sum. Established over 40 years ago, the family run cheese company includes a well-invested cheese cutting, grating and slicing facility, two cheese brands and a distribution fleet. The acquisition is central to Ornua’s strategy of further strengthening its core businesses in Germany, North America and the UK. FJ Need’s strong competences will also strengthen Ornua’s UK business’s capabilities in the post Brexit environment. Completion of the acquisition is subject to UK competition approval. The FJ Need acquisition will be the latest in a series of significant investments by Ornua, targeting new routes to market for Irish dairy products. The last two years has seen Ornua invest in acquisitions and significant capital expenditure in Africa, China, Germany, Ireland, Saudi Arabia, Spain, the UK and the US. It comes soon after the recent acquisition of US powder ingredient business CoreFX.

Kevin Lane, chief executive of Ornua.

Mondelïz International Disposes of Grocery Brands in Australia and New Zealand Mondelïz International has agreed to sell most of its grocery business in Australia and New Zealand to Bega Cheese for A$460 million. The transaction adds the iconic VEGEMITE brand and other well-established grocery brands to Bega's portfolio. The move enables Mondelïz International to further focus its

portfolio and drive profitable growth by investing in its core snacks categories and Power Brands, including Cadbury Dairy Milk chocolate and Oreo biscuits. The Port Melbourne manufacturing site will transfer to Bega as part of the agreement. The transaction is expected to close in the coming months.

HKScan Strengthens Foothold in Finnish Beef Market Nordic meat group HKScan has agreed to acquire the remaining 50% of Paimion Teurastamo, a Finnish beef slaughterhouse business. The deal will strengthen HKScan’s foothold on the beef market and support the company’s target of a long-term development of the Finnish beef production chain in co-operation with its contract producers, all the way from farm to product.

Danish Crown Expands in Germany Danish Crown is acquiring the German cattle slaughterhouse Teterower Fleisch to become the fifth-largest cattle slaughterhouse in Germany and a major player in the north European market for organic beef. The purchase price will not be disclosed. Teterower Fleisch has an annual turnover of Eur150 million, slaughters 110,000 cattle annually, has 187 employees and is privately owned. Close to 20% of the cattle slaughtered by Teterower Fleisch are organic. The company also slaughters pigs and lambs, but the focus is on cattle. “The German business ties in beautifully with Danish Crown’s new 4WD strategy. We want our beef division in particular to grow and to account for a larger share of Danish Crown’s total activities – while at the same time focusing more on organic products and value adding,” says Jais Valeur, president and group

FOOD & DRINK BUSINESS EUROPE, FEBRUARY/MARCH 2017

chief executive of Danish Crown.

Jais Valeur, president and group chief executive of Danish Crown.

Acquisition of Bernard Matthews Cleared The Competition and Markets Authority has cleared the acquisition of Bernard Matthews, the UK’s leading turkey producer and the country’s largest poultry brand, by Ranjit Singh Boparan, founder and chief executive of 2 Sisters Food Group, Britain’s largest grocery market supplier. Bernard Matthews was bought out of administration in a prepack deal. Bernard Matthews had been struggling for some time. The company reported losses of approximately £8.5 million in 2013/2014 and for the year ended 28 June 2015 pre-tax losses were £3.7 million as turnover declined from £306.8 million to £276.7 million. The pre-pack sale to Ranjit Singh Boparan is expected to safeguard all 2,000 jobs at Bernard Matthews.

Thai Meat Group Takes 33% Stake in Polish Poultry Company Thai meat group Charoen Pokphand Foods has agreed to acquire a 33% stake in SuperDrob, the Polish poultry business, for Eur49.5 million. SuperDrob sells half of its products abroad (to Great Britain, France, Germany and other EU countries as well as China). It has been in the market for 23 years. Its main products include fresh poultry meat, processed pre-seasoned and flavoured poultry, as well as sausages and

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M E E R R G G E E R R S S M ham under its own brand. It currently operates six subsidiaries and employs over 2,000 people. The main processing plants are located in Karczew and Lódê. Charoen Pokphand Foods is one of the leading producers, processors and exporters of meat in South-East Asia and one of the world’s leading manufacturer of animal feed. Tracing its roots to 1921 in Thailand, today CPF has investments and operations in 14 countries and sells its products in over 30 countries worldwide with annual turnover of US$14 billion.

Adirek Sripratak, president and chief executive of Charoen Pokphand Foods.

The Coca-Cola Company to Acquire Anheuser-Busch InBev’s Soft Drinks Interest in Africa The Coca-Cola Company has agreed to acquire AnheuserBusch InBev's 54.5% equity stake in Coca-Cola Beverages Africa for US$3.15 billion. CCBA includes the countries of South Africa, Namibia, Kenya, Uganda, Tanzania, Ethiopia, Mozambique, Ghana, Mayotte and Comoros. In addition, The Coca-Cola Company is to acquire AB InBev's interest in bottling operations in Zambia, Zimbabwe, Botswana, Swaziland, Lesotho, El Salvador and Honduras for an undisclosed amount. The transactions are subject to the relevant regulatory and minority approvals and are expected to close by the end of 2017. The Coca-Cola Company plans to hold all of these territories temporarily until they can be refranchised to other partners.

Britvic Expands Further in Brazil UK-based soft drinks producer Britvic is to acquire Bela Ischia Alimentos, a concentrates and juice business in Brazil, for a 6

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total cash consideration of R$218 million (£54.5 million). In September 2015 Britvic acquired Empresa Brasileira de Bebidas e Alimentos (ebba) and the leading liquid concentrate brands Maguary and Dafruta in Brazil, the world's largest concentrates market. Ebba has been integrated successfully into the Britvic group, and has delivered excellent results in its first year against challenging macro conditions. A key pillar of Britvic's strategy is to pursue international expansion by identifying and realising global soft drink opportunities in the kids, family (dilutes) and adult categories. Simon Litherland, chief executive of Britvic, comments: “The proposed acquisition of Bela Ischia represents an exciting opportunity to build on our very strong first year in Brazil with further expansion of our presence in a large and growing soft drinks market. Bela Ischia operates in a category where Britvic has proven capability of generating growth, launching new products and establishing brand leadership and is an excellent complementary fit with our existing business.”

Simon Litherland, chief executive of Britvic,

Hochland Expands US Cheese Business German cheese manufacturer Hochland has acquired Franklin Foods, a US cream cheese producer, to further develop its European brands in the US market. Confidential terms of the acquisition were not disclosed. With revenues of about US$140 million in 2016, Franklin Foods is the third largest cream cheese producer in the USA. “The strong market position, nationwide distribution and two modern production plants of

Franklin Foods offer Hochland the ideal platform for a successful implementation of our own brands and products in the USA,” says Peter Stahl, chief executive of Hochland. The United States is the world’s biggest cheese market. Cream cheese is especially popular and this category exceeded the overall growth of the US cheese market in 2016. Hochland’s goal is to further enhance its European brands as well as Franklin Foods products in the USA.

Peter Stahl, chief executive of Hochland.

Emmi Acquires Italian Dessert Manufacturer Swiss dairy group Emmi has agreed to buy Italian Fresh Foods, based in Lasnigo, Como in Italy, for an undisclosed sum. Italian Fresh Foods is an international company which manufactures and markets high-quality Italian desserts. The acquisition will allow Emmi to strengthen its position in the dessert segment and reinforce its expertise in an attractive niche market. The dessert segment is a key area of Emmi’s product portfolio. Since the acquisition of Italian dessert specialists A-27 (2012) and Rachelli (2013), Emmi has enjoyed a solid position in Italian speciality desserts. The purchase of Italian Fresh Foods (IFF) is intended to further boost expertise at Emmi and reinforce its position in this growing niche market. IFF also provides access to the Netherlands, USA and Canadian markets, where Emmi has so far had little presence in desserts.

FOOD & DRINK BUSINESS EUROPE, FEBRUARY/MARCH 2017

Bonduelle to Acquire US Leader of Single-serve Salads Bowls Bonduelle, the world leader of ready-to-eat vegetables, present in canned, frozen, fresh cut and delicatessen, is acquiring Ready Pac Foods, the US market leader in single serve salad bowls. Based in California, Ready Pac Foods is the number one producer of singleserve salad bowls in the US through its Bistro Bowl suite of products and its legacy of innovation and culinary expertise. Ready Pac Foods is also a producer of fresh-cut produce, offering packaged salads, fresh-cut fruits, and mixed vegetables to its retail and foodservice customers. Ready Pac Foods generates approximately $800 million of revenues, with a national presence in the U.S. and a wide customer base. The acquisition will strengthen Bonduelle’s international footprint and dramatically change its profile, making the US the largest country of operations, continuing a longstanding track record of successful acquisitions in North America, in particular Aliments Carrière, Canada, in 2007 and Allens, USA in 2012, and the fresh category, its first business segment. Bonduelle, a family business, was established in 1853. Its vegetables, grown over 128,000 hectares all over the world, are sold in 100 countries under various brand names and through various distribution channels and technologies. Equipped with 58 company-owned agricultural production and industrial sites, Bonduelle produces in the best growing regions, as close to its clients as possible.

McDonald’s Corporation Sells Majority Stake in Chinese Business For $2.08 Billion McDonald’s Corporation is selling a controlling interest in its businesses in mainland China and Hong Kong to CITIC, CITIC Capital Holdings and The Carlyle Group for up to $2.08 billion (HK$16.14 billion) in cash and


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new shares. After completion of the transaction, CITIC and CITIC Capital will have a controlling stake of 52%, while Carlyle and McDonald’s will have interests of 28% and 20%, respectively. The new partnership, which will be responsible for McDonald's businesses in mainland China and Hong Kong for a term of 20 years, will become the largest McDonald’s franchisee outside the United States.

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and 25 other countries around the world. The acquisition of Popeyes will add a successful, highly-regarded brand with strong customer loyalty to RBI, while complementing its existing portfolio of over 20,000 restaurants in more than 100 countries and US territories.

Rémy Cointreau Group Completes Whisky Acquisitions

Telepizza Acquires Pizza Blitz in Switzerland Telepizza, the world's largest pizza delivery company outside of the USA, has acquired Pizza Blitz, Switzerland’s original pizza delivery brand. The additional 10 stores bring Telepizza's global network to 1,352 stores, supporting the brand's aggressive growth plans which aim to triple market share over the next three years. Headquartered in Madrid, Spain, Telepizza currently operates in more than 15 countries through a network of own stores, franchisees and master franchisees. It recently posted €506 million in chain sales and €63.4 million in EBITDA. Including its US-based competitors, Telepizza is the fourth largest global player in pizza delivery in terms of number of stores.

French drinks giant Rémy Cointreau Group has further extended its portfolio into the fast growing high-end single malt whisky category, with the acquisitions of Westland Distillery and Domaine des Hautes Glaces. Based in Seattle, Westland Distillery produces whiskey that offers a distinctly American single malt style. Westland boasts a portfolio of high-end single malts. Domaine des Hautes Glaces is an organic mountain farm distillery located in the heart of the French Alps, which crafts exceptional single malt whiskies. Rémy Cointreau Group plans to develop the brand further across the United States before expanding it globally in the future.

Mars Expands in Petcare With $9.1 Billion Acquisition

Restaurant Brands International Expands With $1.8 Billion Acquisition Restaurant Brands International, one of the largest global quick service restaurant companies with two of the world's most iconic QSR brands - Burger King and Tim Hortons - is expanding its US and global footprint with the acquisition of Popeyes for $1.8 billion. Popeyes is one of the world's largest quick service restaurant chicken concepts with over 2,600 restaurants in the US

Mars Incorporated has significantly expanded its petcare business with the acquisition of VCA, a leading provider of pet health care services in North America delivered through nearly 800 small animal veterinary hospitals in the US and Canada. VCA joins Mars Petcare, one of the world’s leading pet care providers. VCA is to be a distinct and separate business unit within Mars Petcare. Petcare is one of Mars’ six business segments, which also include Chocolate, Wrigley, Food, Drinks and Symbioscience. Mars has net sales of more than $35 billion and employs more than 80,000 people worldwide.

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COVER STORY

€1 Billion Investment in Irish Whiskey Renaissance The remarkable Irish whiskey ‘renaissance’ is continuing with global leader Pernod Ricard again ramping up capacity, as a plethora of smaller distillers commence production, and Diageo re-enters the category.

T

he rapidly developing Irish whiskey industry is currently investing over Eur1 billion to dramatically expand production capacity in order to increase output by 41% by 2025. There are currently 30 new or proposed distilleries (16 in production and 14 in planning) in 18 counties across Ireland, compared to only four operating distilleries in 2013 - Cooley Distillery, Kilbeggan Distillery, Midleton Distillery and Old Bushmills Distillery. Irish Distillers, part of Pernod Ricard, has just announced plans for a further expansion of its Midleton Distillery in County Cork. The company is investing Eur10.5 million to increase its single pot still Irish whiskey production capacity by over 30%. Three new copper pot stills are being installed at Midleton Distillery, ensuring that Irish Distillers, with its flagship Jameson brand (see Panel), continues to lead the global Irish whiskey renaissance, supporting the Irish Whiskey Association’s target of global growth of 300% by 2030.

Three copper pot stills, handmade by master coppersmiths Forsyth’s of Scotland and weighing a combined 24 tonnes, have been delivered to Midleton Distillery.

five years. Jean-Christophe Coutures, chairman and chief executive of Irish Distillers, comments: “Irish whiskey continues to enjoy phenomenal global growth, led by Jameson with sales of 5.7 million cases in 2016. Irish Distillers has been driving the growth of the category since 1988, a commitment further underpinned by investments of over Eur230 million since 2012. With this additional investment of over Eur10 million at Midleton Distillery, the home of Irish whiskey, we will ensure that we are positioned to meet growing global demand and support the growth of Irish whiskey in the international spirits category.” He continues: “We are seeing growth accelerating across Jameson and the wider Single Pot Still Irish whiskey range, such

Jean-Christophe Coutures, chairman and chief executive of Irish Distillers.

€261.5 Million Investment by Irish Distillers Since 2012, Irish Distillers has invested Eur120 million in the Midleton Distillery, Eur20 million at its Fox and Geese bottling facility in Dublin and is currently investing Eur100 million at its Dungourney maturation site. In August 2016, the company also announced a Eur11 million redevelopment project at the Old Jameson Distillery site in Smithfield, Dublin to showcase the best of Irish whiskey to the 600,000 whiskey tourists to visit Ireland every year. The Eur10.5 million expansion of single pot still production capacity at Midleton takes Irish Distillers’ investment in its Irish whiskey infrastructure to Eur261.5 million in the past

Since 2012, Irish Distillers has invested Eur120 million in the Midleton Distillery.

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Jameson Spearheads Irish Whiskey Renaissance Irish Distillers’ flagship Jameson brand is spearheading the global renaissance of the Irish whiskey category, with sales up 12% last year to 5.7 million cases. Value growth was even higher at 16%, confirming the premium nature of the iconic brand. Indeed, consistent value growth ahead of volume remains a key objective for Jameson. Having achieved its twenty-seventh year of consecutive growth in 2016, Jameson is continuing to perform strongly in the first half of Pernod Ricard’s 2017 financial year with volume growth reaching 20% fuelled by markets in the US, Europe and Africa Middle East. In the US, the largest spirits market in the world, Jameson is now Pernod Ricard’s largest brand generating over a quarter of the global drinks group’s sales there. Christophe Coutures, chairman and chief executive of Irish Distillers, comments: “We have seen the global Irish whiskey renaissance continue with gusto, led by the category defining Jameson which is seeing doubleand triple-digit growth in over 60 markets across the world. We aim to con-

tinue this growth with our new series of premium whiskeys such as The Whiskey Makers Series and our Deconstructed Series which have the original Jameson Irish whiskey at their core.” He elaborates: “Innovation remains at the heart of what we do at Irish Distillers, a tradition dating back to John Jameson. A successful pilot test in the Irish market of Jameson Caskmates, an initiative which sees Irish Distillers collaborate with local Irish brewery Franciscan Well, has led to its global launch to 30 markets.” Irish Distillers’ portfolio of prestige whiskey brands, featuring Redbreast, Green Spot and Midleton Very Rare, grew by 24% in 2016. The prestige brands are now exported to more than 20 markets, reflecting the growing global interest in single pot still Irish whiskey. To cater for this growing demand, Irish Distillers is currently investing Eur10.5 million to increase its single pot still Irish whiskey production capacity by over 30% at its Midleton Distillery.

as Redbreast and Green Spot, and we will continue to direct our focus for growth here. With our increased production capacity, we are confident that the category will hit the ambitious targets set by the Irish Whiskey Association – increasing exports to 12 million cases by 2020 and 24 million cases by 2030.” Copper Pot Stills Three copper pot stills, handmade by master coppersmiths Forsyth’s of Scotland and weighing a combined 24 tonnes, have been delivered to Midleton Distillery. Each still has a capacity of over 75,000 litres. Installation has now commenced and the stills will be operational by June 2017. “Single pot still Irish whiskey is the quintessential style of Irish whiskey which Irish Distillers saved from virtual extinction in the mid-1900s. Since then we have been investing to protect this traditional Irish whiskey style,” points out Paul Wickham, general manager of Midleton Distillery. “This investment will also see us increase our sup-

port for the wider Cork economy. All our barley comes from farms located within 100 miles of Midleton Distillery, supporting families who have produced barley for centuries. Using unmalted barley is a longstanding tradition of Irish whiskey and one which Irish Distillers continues, believing it contributes to the smooth characteristics of our products. At present, we spend Eur60 million annually on cereals, energy, capital projects and payroll in the local economy and this will increase with the installation of these new stills.”

Diageo is to invest Eur25 million in a whiskey distillery at in Dublin and is launching a new premium blended Irish whiskey, Roe & Co.

Diageo’s Re-entry Having exited the Irish whiskey sector in 2014, Diageo has just announced plans to invest Eur25 million, over three years, in a whiskey distillery at its famous St James’s Gate brewery site in Dublin. The global drinks group is also launching a new premium blended Irish whiskey, Roe & Co. As is the case in other spirit categories in recent years, Diageo has identified a clear opportunity in Irish whiskey to drive overall

FOOD & DRINK BUSINESS EUROPE, FEBRUARY/MARCH 2017

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We wish Irish Distillers Ltd. continued success. We are delighted to accompany them on their journey to low carbon production.

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3. We offer to design, supply & maintain biomass boilers and other low carbon technologies. 4. Now through Toward Zero Carbon (TZC), we can provide 100% project funding. Casey Technology has been delivering Energy Saving Projects to some of Irelands’ largest manufacturers for over 20 years. At Casey Technology, we work primarily within the food sector developing energy reduction solutions, implementing energy efficiencies and ultimately reducing carbon produced throughout the manufacturing process. Our (ISO 50001 compliant) carbon reduction program is supported by Enterprise Ireland and Enprova. We now offer specialist project funding through Toward Zero Carbon Ltd. (TZC), The Carbon Reduction Platform.

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approval, is due to commence production in the first half of 2019. Change in Ownership Diageo quit the Irish whiskey sector when it sold its Bushmills business based in County Antrim in Northern Ireland to Jose Cuervo of Mexico in exchange for the full ownership of Don Julio, the premium tequila brand in which it already held a 50% stake. Jose Cuervo has since announced proposals for a £30 million expansion of the Old Bushmills Distillery. Another well-established Irish whiskey brand to change hands recently is Paddy, which was sold by Irish Distillers to Sazerac, a US-based family owned business, for an undisclosed sum. The deal involves Irish Distillers continuing to produce Paddy Irish whiskey at its Midleton Distillery in County Cork. “In the global market, Irish whiskey experienced the fastest volume growth in the last five years, outpacing all other spirits categories. Consumers worldwide are seeing it as an alternative to Diageo quit the Irish whiskey sector in 2014 when it sold its Bushmills business based in County Antrim in Northern Ireland to Jose Cuervo of Mexico. Jose Cuervo has since announced proposals for a £30 million expansion of the Old Bushmills Distillery.

category growth via premiumisation. The Roe & Co brand has been created to reflect modern, contemporary luxury, in everything from pack to liquid, and with a focus of making Irish whiskey more prominent in Europe’s booming cocktail culture. The first blend of Roe & Co will be available in key European cities from 1st March 2017 as part of Diageo’s growing Reserve portfolio. The new St James’s Gate distillery, subject to planning

William Grant & Sons constructed a new Eur35 million whiskey distillery in Tullamore, County Offaly, which was opened in 2014.

other whiskies,” says Mark Brown, president and chief executive of Sazerac. “We are confident that we will be able to take Paddy to the next level, building on its strong history and roots.” A second famous Irish whiskey brand, Tullamore DEW, is also now in overseas ownership. The second largest Irish whiskey brand in the world was acquired by William Grant & Sons, the independent family owned Scottish distiller, in 2010 as part of its Eur300 million purchase of C&C Group’s spirits and liqueurs business. The Paddy brand was recently sold by Irish Distillers to Sazerac, a US-based family owned business, for an undisclosed sum.

First Greenfield Distillery William Grant & Sons subsequently constructured a new Eur35

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stage and after a steady decline Ireland was left with just one distilling company – Irish Distillers - in 1973. Major International Players The establishment of Cooley Distillery in 1987 heralded a revival in fortunes. Now, major international spirits groups Pernod Ricard (owner of Irish Distillers), Jose Cuervo (Bushmills), Jim Beam/Suntory (Cooley) and William Grant & Sons (Tullamore DEW) are operating distilleries in Ireland. US-based Brown-Forman Corporation is another global player to invest in Irish whiskey production by purchasing Slane Castle Irish Whiskey. Brown-Forman will invest approximately $50 million to build a new distillery and consumer experience on the historic Slane Castle Estate in County Meath. “We are very excited about this new venThe Teeling Whiskey Distillery started operation in 2015 as the first new distillery in Dublin ture into Irish whiskey,” says Paul Varga, chief executive of Brown-Forman. “Brown-Forman has a long history of for over 125 years. bringing great whiskey to the world, such as Woodford million state-of-the-art whiskey distillery in Tullamore, County Reserve, which we introduced in 1996 and has since grown to Offaly. Opened in 2014 and capable of producing the equivalent become one of the world’s leading super premium bourbon of 1.5 million cases of Tullamore DEW annually, the Tullamore brands.” Distillery was the first new distillery to be constructed on a greenfield site in Ireland in over 100 years. Irish Whiskey Distilling Returns to Dublin Of the four Irish whiskey distilleries operating in 2013, three Like their father, John Teeling’s two sons, Jack and Stephen have since been sold. Apart from the Old Bushmills Distillery Teeling, have also opened a new distillery, at a cost of Eur10 milbought by Jose Cuervo, the Cooley and Kilbeggan Distilleries lion, after establishing the Teeling Whiskey Company. Based in were acquired by Beam, the US-based international spirits group, the Newmarket area of Dublin, the Teeling Whiskey Distillery in late 2011. Beam, which is now part of Suntory of Japan, paid approximately $95 million to enter the Irish whiskey category. At the time, the Cooley Distillery business was one of only three sources for Irish whiskey, and the only independent player. John Teeling, the founder of Cooley Distillery, has since returned to the fray by opening the Great Northern Distillery at Dundalk in County Louth. Established on the site of the former Harp Brewery, the Great Northern Distillery commenced production in 2015. Involving investment of Eur35 million, the Great Northern Distillery is focused on producing a cost efficient supply of grain and single malt whiskey for existing and new distilleries, retail own label customers and private labels. John Teeling and his fellow co-founders of Cooley Distillery have played a key role in the revival of Irish whiskey. Irish whiskey was for a long period dominant in The opening of the Connacht Whiskey Distillery following investment of Eur10 million has world markets. In the 19th century Irish whiskey brought pure pot still Irish whiskey production back to the West of Ireland after an absence accounted for 60% of global sales and there were over of over 100 years. 1,000 distilleries operating in Ireland. However, Irish whiskey has since been eclipsed by Scotch whisky on the world started operation in 2015 as the first new distillery in Dublin for over 125 years. The distillery was named ‘World’s Best Whiskey Attraction’ at the 2016 World Whiskies Awards, and has attracted over 150,000 visitors since opening. The Teeling Whiskey Company is a medium sized pot still operation focused on branded Teeling Whiskey. Teeling Whiskey is now exported to over 45 different export markets and is the fastest growing premium Irish whiskey in Ireland. “This is a really exciting time for Irish whiskey as the industry continues to evolve. Looking ahead,” says Jack Teeling, founder and managing director of the Teeling Whiskey Company, “we will continue to innovate and release new expressions of Teeling whiskey as well as further expand on our presence overseas.”

Stephen and Jack Teeling.

Other Developments International drinks group, Quintessential Brands is also establishing a new distillery in the heart of Dublin. This follows the acquisition of Dublin Whiskey Company in FOOD & DRINK BUSINESS EUROPE, FEBRUARY/MARCH 2017

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MSL ENGINEERING LTD “Quality Delivered..... Safely, On Time, Every Time”

www.mslengineering.ie Operating across Ireland, UK and mainland Europe MSL Engineering Ltd. specialise in • Fabrication, installation, testing and commissioning of process, utilities and high purity pipework • Modular fabrication and assemblies • Process and heavy equipment installation • Fabrication and installation of platforms and steelwork

• Managing multidisciplinary sub contractors as part of our projects including HVAC, scaffold, cranage, insulation, painting, NDT etc • Use of BIM and 3D modelling processes

MSL Engineering Ltd., Unit 8, Watergrasshill Business Park, Watergrasshill, Cork, Ireland. Tel: +353 21 4513550 – Fax: +353 21 4889868 – Email: info@mslengineering.ie – Web: www.mslengineering.ie

Proud Recipient of the 2016 NISO Regional Award (South)


2016 as part of a Eur10 million investment to build a new whiskey distillery and visitor experience. The Dublin Whiskey Company distillery will produce single malt Irish whiskey and the first spirit from the stills is expected at the end of summer 2017. Founded by Enzo Visone, former chief executive of Gruppo Campari, and former

Paul Varga, chief executive of Brown-Forman.

investment banker, Warren Scott in 2011, Quintessential Brands already owns First Ireland Spirits, including its extensive Irish creams and liqueurs brand portfolio and production facility in Abbeyleix, County Laois. The investment in Dublin is part of the group’s ongoing strategy to grow its brands and operations in Ireland. Another new Dublin distillery due to come on stream later this year is the Pearse Lyons Distillery, which is being established in the historic St James’ Church. The existing church building dates from 1861 but it has been deconsecrated since 1964. Deirdre Lyons, co-founder of Alltech and wife of Dr Pearse Lyons, president and founder of Alltech, is renovating the property back to its former glory to make it a thriving tourist destination. Outside the Capital Outside of Dublin, new Irish whiskey distilleries to open recently include the Walsh Whiskey Distillery at Royal Oak in County Carlow; the Boann Distillery at Drogheda

Miriam Mooney, head of the Irish Whiskey Association.

in County Louth; the Connacht Whiskey Distillery at Ballina in County Mayo, and the Echlinville Distillery on the Ards Peninsula in County Down. Established by husband and wife team, Bernard and Rosemary Walsh, and involving investment of Eur25 million, the Walsh Whiskey Distillery is the only independent Irish whiskey distillery producing all three styles of Irish whiskey – pot still, malt and grain from its two production lines using both pot stills and column stills. The distillery also incorporates a visitor experience. Illva Saronno of Milan (owners of drinks brands Disaronno and Tia Maria) has taken a 50% stake in the enterprise. The Eur20 million Boann Distillery is also a family venture. The Drogheda-based facility encompasses a whiskey distillery, a craft brewery and taproom, a visitor centre, a 120 seat restaurant, a whiskey bar, a private event space, and a gift shop. The Boann Distillery and Boyne Brewhouse are the realisation of an ambition of the Cooney family, who have a long tradition in the Irish


Bernard Walsh, founder and chief executive of Walsh Whiskey Distillery and chairman of the Irish Whiskey Association.

drinks industry. Pat Cooney built the Gleeson Group to be a major player in the Irish manufacturing and wholesale drinks business over the last 40 years with Eur300 million turnover and employment of 750 people. Part of this business was sold in 2012 to C&C Group but a cream liqueur facility and cidery were retained by the Cooney family. West of Ireland The opening of the Connacht Whiskey Distillery following investment of Eur10 million has brought pure pot still Irish whiskey production back to the West of Ireland after an absence of over 100 years. The new 27,000 sq ft distillery also features a visitor centre. The distillery expects to produce up to 70,000 cases per year. It is only the second Connacht-based craft whiskey distillery, and one of a handful of developed craft distilleries across the country. Tom Jensen, director of Connacht Whiskey and past president and chief executive of Remy Cointreau USA, says: “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.”

million in 2016 – an increase of more than 300% in the last 10 years - and now represent a third of all drinks exported from the Republic of Ireland. Overseas sales of Irish whiskey are set to double by 2020 and double again by 2030, to increase global market share from 4% to 12%. However, although the Irish whiskey industry has grown rapidly over the past decade, it is still dwarfed by Scotch whisky, which has exports valued at £4 billion and is produced in 118 distilleries. Miriam Mooney, head of the Irish Whiskey Association, comments: “Whilst Irish whiskey is the fastest growing premium spirit in the world, the Scotch whisky industry is more established and is the largest net contributor to the UK's balance of trade in goods, creating £5 billion annually for the economy. As the Irish whiskey sector continues to prosper we only have to look at Scotland to see what’s possible for the industry in terms of growth and potential. The sector is a significant contributor to rural employment, supporting often fragile local economies including 7,000 jobs in rural Scotland alone. Irish whiskey is undergoing a renaissance which is being driven by both existing and new players alike and global recognition for high quality Irish whiskey has never been higher.” She adds: “We are really ambitious for our sector -there is huge potential for growth for both small and large entrants to the category.” Irish Whiskey Tourism Strategy The Irish Whiskey Association has just launched the Irish Whiskey Tourism Strategy, which sets out how Ireland can become the world leader in whiskey tourism by 2030. According to the Irish Whiskey Association, with national and local government support, Irish whiskey tourism has the potential to grow from 653,277 visitors every year up to 1.9 million visitors by 2025, spending an estimated Eur1.3 billion every year. Bernard Walsh, founder and chief executive of Walsh Whiskey Distillery and chairman of the Irish Whiskey Association, comments: “Irish whiskey is a real success story, we are reaching new markets and new consumers. We have an authentic story to tell and a great opportunity to capitalise on growing sales and to drive more tourists to this country by developing the right environment for whiskey-trail tourists. To do this we want to work with State agencies to put the right supports in place and with Government to create the right policy environment to enable the sector to grow and thrive.” J

Northern Ireland Opened to the public in 2016, the Echlinville Distillery became the first licensed whiskey distillery in Northern Ireland in over 125 years when it received its license to distil in 2013. Armed with its new facility, Echlinville is also now Northern Ireland’s second biggest spirits producer, with the capacity to produce around 15,000 bottles of the whiskey, gin, vodka and poitin every week. Also in Northern Ireland planning permission was recently granted for a new £12 million whiskey distillery and visitor centre in the historic Ebrington square in Derry town. The new distillery will be run by a local Derry company, Niche Drinks, which is aiming to have first distillations by early next year. Niche Drinks has been manufacturing and exporting Irish cream liqueurs since 1983 and this will continue alongside the new distillery development. Rapid Growth Irish whiskey exports were worth Eur505 18

FOOD & DRINK BUSINESS EUROPE, FEBRUARY/MARCH 2017


I ENGINEERING

Forsyths – An Enterprising Family Business here has been a Coppersmiths based in Rothes, Moray, Scotland T since the mid-1850s servicing the fledgling Scotch Whisky Industry in Speyside. In the 1890s Alexander Forsyth started his apprenticeship as a coppersmith with the then owner Robert Willison who had his main operation in Alloa in the Central Belt of Scotland. When Willison came to the end of his business life in 1933 he sold each unit to the working managers, Alexander Forsyth being that in Rothes at the time. The business prospered until the start of the 2nd World War when it was basically mothballed alongside the Scotch Whisky Industry. At the end of the war Alexander’s son Ernest (Toot) Forsyth took over the business and the company grew in conjunction with the now rapidly expanding Scotch Whisky Industry. The present chairman, Richard Forsyth, son of Ernest, started as an apprentice coppersmith in 1968 and progressed into Forsyths’ management mid 1970s. Over this period the Morayshire Copperworks moved from its limited premises in Green Street to more spacious surroundings in the Old Station Yard. New custom built workshops were erected and any expansion experienced was soaked up by the Scotch Whisky Industry.

blasting and painting, scafforlding and a small civil works division to enable a complete turnkey solution. Core Business

Whilst all of this expansion was significant to the company its core business of manufacturing and servicing equipment for the Whisky Industry was still very important and growing again for Forsyths. In the past 20 years the Company has enlarged its portfolio to include the full design and build of turnkey distilleries for Bourbon and Rye Whiskeys, Gin, Vodka, Rum, Tequila, Malt Whiskies and in particular Irish Whiskeys to cater for the huge increases in demand. Midleton Site

Diversification

By 1979/80 over production in the industry created massive cutbacks causing 3 day weeks and mothballed distilleries. Diversification was necessary and Forsyths fabrication skills were adapted for the buoyant Papermaking Industry in the 1980s. During this period Forsyths developed a design engineering and draughting arm which was to back up its fabrication facility. In 1981 they were offered and bought their local opposition, Grants (Dufftown) Ltd., who had a substantial electrical division, a valued add on to Forsyths services. By the early 1990s Forsyths were in a position to compete in the lucrative Oil and Gas Industry. Premises were purchased in the North East coastal town of Buckie and developed to suit. Harbourside assembly shops were built to cater for sizeable fabrication units up to 500 tonnes which could not be transported by road. To compliment these services Forsyths added in-house

Forsyths have carried out maintenance and replacement for IDL Pernod Ricard’s Midleton site for the past 25 years and were delighted to be awarded the contract to build the new “Garden Stillhouse” showcasing the biggest copper pot stills in the world at 80,000 litre content, 40,000 litre charge capacity. These stills were so big they could not be transported by road and had to be shipped from the Buckie facility directly to Cork. They were designed with the latest energy efficient heating systems and have operated successfully for the last 5 years. Demand has been so great that a further three of these Pot Stills have been added to the Garden Stillhouse this year. Besides having built five other distilleries in Ireland Forsyths have current contracts in Japan, Taiwan, China, Thailand, England and North America as well as carrying out their biggest ever contract to date – the new Macallan Distillery in Speyside, Scotland. They are increasing capacity at the famous Glenfiddich Distillery and doubling capacity at IDL’s sister company’s distillery – The Glenlivet. Forsyths are very proud to have such a close working relationship with Irish Distillers Limited and continue to develop this relationship with further intended projects. The company moves into its 4th generation of ownership and management with Richard E Forsyth Jnr. now well ensconced as MD ensuring continuation of this enterprising family business. J

FOOD & DRINK BUSINESS EUROPE, FEBRUARY/MARCH 2017

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I ENGINEERING

MSL Engineering Continues to Grow into New Markets perating from its base in Watergrasshill, O Cork, Ireland, MSL Engineering Ltd (MSL) has close to four decades of industry experience as a trusted partner engaging in specialist design, fabrication, installation, testing and commissioning of process pipework, utilities and high-purity pipework, as well as installation of process and heavy equipment. MSL also manages multi-discipline sub-contractors as part of many of it projects including heating, ventilation and air conditioning (HVAC), scaffold, cranes, insulation, painting, structural steel, sprinklers and non-destructive testing (NDT) Having previously installed the three original Pot Stills along with the Distillation Columns and all other associated equipment and pipework during the Irish Distillers plant capacity expansion project in 2012, MSL was again awarded the contract for all mechanical works involved in the current project in Midleton. During the intervening period MSL has continued to enjoy strong growth across its traditional markets within Ireland, while its presence in the UK, Netherlands, Belgium, Switzerland and Sweden has equally expanded. There is a lot of development going on in Dublin at present and MSL are also being contracted for increasing amounts of work throughout Europe. This has been the biggest change for the company in recent times, but they have also increasingly focused on working with high-purity applications in mechanical engineering in line with the Biopharma industry demand. High-purity Workshop

They built a highpurity workshop at their premises in Cork and have since won some good contracts in the fabrication and installation of high-purity pipework, which is a part of the business that continues to grow positively. The new workshop was installed in early 2016 and this allowed the company to complete the high purity elements of existing contracts. However MSL has since won a number of larger jobs for high-purity pipework for projects overseas and this enabled the h-p workshop to become fully operational during the final quarter of 2016. This high-purity facility continues to be busy and with current commitments will remain so 20

throughout 2017. Another aspect of the business that has helped win work in the UK and Europe is a proven track record in successfully completing modular built pre-assembled process units and pre-assembled racks in the workshop in Cork for subsequent shipping and installation. On-site installation of these modules is normally carried out by MSL as part of the overall package, however installation on site by others is also an option. Successful Year

While 2016 proved to be a highly successful year for MSL, the company is showing no signs of slowing down. By offering a personal service and guaranteeing the highest levels of quality, MSL is set to continue to grow into new markets throughout the coming years. They have now risen to the ‘next level’ in terms of the quantity of work that they can take on and the amount of turnover that they are capable of generating. Turnover increased substantially throughout 2016 and they have expanded their presence across Ireland and overseas. As mentioned previously, Dublin has been particularly active and MSL’s aim is to maintain their presence there over the coming months and years. They have invested in the additional resources to handle increased levels of work and their aim will be to keep those resources working and active. They really are able to offer a first-class service based on very varied projects and a lot of experience. Although undertaking sizable jobs, the company is still managed by the owners of the business, which is something that some clients find reassuring. If issues arise requiring urgent attention it is possible to pick up the phone to speak to the owners of the business to get the matter resolved quickly. When markets are busy clients like to know when they award work that their particular contract is among the top on the contractor’s priority list, which is more likely to be the case when the business is managed by its owners with a personal commitment to successful del-ivery. For further information contact MSL Engineering Ltd on Tel +353 21 4513550; E-mail info@mslengineering.ie or visit www.mslengineering.ie. J

FOOD & DRINK BUSINESS EUROPE, FEBRUARY/MARCH 2017


I PROJECT MANAGEMENT

FDT Consulting Engineers and Project Managers Ltd – The Beverage Industry Experts DT Consulting Engineers and Project F Managers Ltd help clients (big and small) to design, build & operate sustainable distilleries, breweries, liqueur plants and bottling facilities, and to improve the performance of existing sites. FDT do this by providing a complementary mix of Project Services, Sustainability Services, Asset Care and Specialist Process Support. You can rely on FDT to rapidly diagnose and resolve process and technical issues. Established over 25 years, FDT are an

A current distillery project by FDT.

Irish owned, 100% independent, SME employing Engineers, Brewers, Distillers and Scientists, based in Ireland and operating all over the world. FDT have a highly experienced team and can draw on over 300 man-years of beverage industry experience. In the last five years FDT are proud to have worked on over 20 distillery projects in Ireland and Internationally, with clients who share the company’s passion for the sector. J

I LABELS

The Label Factory Creates Award-winning Labels he Label Factory Ltd is an Irish-owned T and managed independent, multi awardwinning, label print company based in County Tipperary. Since its inception in 2002, the company has developed a strong reputation within the drinks sector, particularly in the growing spirit category in Ireland. Nominated a total of 18 times, over the last nine years, The Label Factory has won the title Label Printer of the Year at the Irish Print Awards in 2014, 2013, 2011 and 2010, specifically in the drinks category. Following investment in 2017, which has

added extra capacity and capability, The Label Factory can continue to exceed customers’ expectations and their increasing bespoke requirements. The Label Factory offer the complete range of print processes to create the perfect, award-winning label, including; * Letterpress, Flexo, Digital, Varnish, Hot foil, Cold foil, Silk Screen, * Tactile Varnish, Spot Varnish, Emboss, Deboss, Laminating, Graining, * Sequential Numbering, Personalisation. Clients include Walsh Whiskey, Glendalough Whiskey Co., West Cork

Distillers, Teeling Whiskey Company. For further information contact The Label Factory at www.labelfactory.ie. J

I DAIRY PROCESSING

Tetra Pak Acquires Leading Manufacturer of Mozzarella Cheese Making Equipment etra Pak has acquired Johnson Industries T International, a company specialising in the design, development and manufacture of equipment and lines to produce mozzarella cheese. The company also manufactures a range of cheese cutting, shredding and brining equipment. These additions broaden Tetra Pak’s

wide-ranging cheese technology portfolio and strengthen its position as a leading global provider of cheese manufacturing solutions. Based in Wisconsin, US, Johnson Industries International, is one of North America’s principal suppliers to the highquality, high-volume segment of mozzarella cheese manufacturing. Monica Gimre, Executive Vice President, Processing Systems at Tetra Pak, says: “The acquisition of Johnson Industries International adds essential know-how and technology in a sector of the cheese market that is growing ever-more important to our business. Many of our customers are expanding production in this category. Thanks to this acquisition, we can now ensure they have access to a complete

equipment and services solution, helping minimise the complexity of plant management.” Grant Nesheim, President of Johnson Industries International, says: “This transaction means that our innovations will be supported by the global resources and leading expertise of Tetra Pak. This will benefit our customers in the long run as they continue to receive our market-leading products and services supported by Tetra Pak’s global organisation. In recent years we have been expanding our business to other parts of the world, and we now see an exciting opportunity for further international growth through Tetra Pak channels.” Johnson Industries International will remain in its current location and will continue to focus on its core business. J

FOOD & DRINK BUSINESS EUROPE, FEBRUARY/MARCH 2017

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I MALT

The Origins of Minch Malt inch Malt has been producing the highest quality malt since 1847. It all began when Matthew Minch, a tenant farmer from M Portersize, Ballitore, opened his first malting business in Athy, Co. Kildare, Ireland in around 1845. Although he didn’t come from a wealthy background, Minch proved that hard work, passion and dedication go a long way. Within 2 years he had acquired two further small malting premises in Athy. In 1921 Minch merged his malting business with that of P.R. Norton, a maltster with premises in the adjoining counties of Carlow, Laois and Kilkenny and the new company was called Minch Norton. These days, Minch Malt is registered in Ireland and is owned by parent company BOORTMALT, the malting business of French Co-operative AXEREAL. Supply Chain & Sustainability Today, Minch Malt combine centuries of tradition with the most up to date equipment and processes to produce malted barley that is highly sought after by Ireland’s leading brewers and distillers. Through decades of experience they have learned that to make excellent malt, you need excellent quality malting barley. Minch Malt believe so much in this philosophy that they positively influence every link of the supply chain that produces this illustrious grain. From the moment that the finest barley seed varieties are selected, through to the delivery of the malting barley to the Athy maltings, each link is influenced by Minch Malt’s dedicated malting barley agronomy team also known colloquially as “barley doctors”. The barley doctors work hand in hand with nature and their dedicated malting barley farm families whose distinguished heritage runs through many generations in the production of premium products. They operate in a sustainable fashion to protect the environment, enhance social interaction and improve the viability of the industry year in, year out. Minch Malt take agricultural sustainability very seriously, indeed they pride themselves on being verified members of Origin Green. Origin Green is the only sustainability

programme in the world that operates on a national scale, uniting government, the private sector and food producers through Bord Bia, the Irish Food Board. Traceability A valuable feature of Minch Malt’s supply chain is that it can supply customers with 100% honest to goodness traceability from seed to glass. The kernel of this traceability manifests itself in the recording of live field data in a cloud-based farm tool called FarmFlo. This tool tracks live data such as field GPS location, seed variety, sowing date, weather conditions etc. for each dedicated malting barley field in each farm. This enhances the malting barley produced from a quality and unique selling point of view. This is demonstrated in the provenance of their unique Hook Head Series Malts and as specific as their “one farm, one batch” of beer or spirit malt. Hook Head Series The Ring of Hook, a small peninsula in the south east of Ireland is renowned for producing premium quality malting barley. As the area is surrounded by the Atlantic Ocean, the soils have been splashed with sea spray for millennia, resulting in high sand and sodium levels. Throughout the growing season, the malting barley is subjected to sea mists and storms, which deposit salt onto the crops, changing their colour from a rich green to completely white and back again. The Hook Head Series is produced by 11 specialist growers, many of whom are third or fourth generation malting barley growers. These elite growers epitomise the age old secrets that make renowned the Hook Head Series, “the perfect blend of heritage and quality malt”. Many More Years to Come! A cherished quality of the Minch Malt family is their passion for producing premium malts by always respecting tradition whilst embracing technology to deliver an un-paralleled malting barley supply chain. After 170 years, the proud people at Minch Malt want to make sure that the Minch legacy in malting continues to grow for many more years to come! J

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I FOOD ENGINEERING

Food Industry & BREXIT – Doom & Gloom? Far from it... hilst industries are still pondering their W next move, the food industry in both Ireland and the UK is busy addressing the challenges posed by BREXIT and other factors such as overall lifecycle costs. The emerging trend in food engineering is towards brownfield expansions and upgrades. Brownfields can be hugely beneficial as manufacturers look to get more from their existing locations saving significant costs on new development and relocation.

According to Oisin O’Sullivan of food engineering specialists, PM Group: “What we are seeing across the Industry is a renewed energy with clients asking us to look at innovative ways to maximise existing facilities to cater to expansion as well as new product manufacturing.” “Brownfield projects have their own specific challenges: business continuity, product quality and safety. Essentially, they require a lean and cost effective engineering approach. This is essential at a time when the industry is responding to the ever present pressure of better quality at lower cost,” he says. All clients target value for money, quality and want to optimise costs, from initial projects investment through to overall lifecycle costs. To support this, the Industry is increasingly adopting solutions such as Business Information Modelling (BIM). BIM provides an efficient way of delivering accurate, co-ordinated and clash resolved information throughout the project lifecycle. Whole Lifecycle BIM requires all pro-

ject stakeholders from the client, the design team and contractors to the facilities management team to collaborate and share information throughout the process. BIM is now able to extend benefits beyond the project as the central repository/digital library of project data and technical information is immediately available for the ongoing management of the facility throughout its whole lifecycle. Oisin O’Sullivan is PM Group’s Food Sector Business Development Manager for the UK and Ireland. For further information visit www.pmgroup-global.com. J

• Kerry Gold, Charleville

Kiernan Structural Steel Ltd offers the following services to our clients in the Irish construction sector & export to the UK construction sector:

• • • • • • • • •

Structural Engineering Design Steel Fabrication Steel Erection Cladding & Roof Metal Decking Floor Metal Decking & Welded Shear Studding Castellated Beams & Steel Trusses Manufacture Fire Protection Painting Edge Protection specialist See our Website for details of the new SIN Beam launch

• Kerry Gold, Charleville

• Kerry Gold, Naas

• Kerry Gold, Naas

We constantly strive to meet client expectations on project program and on budget without affecting quality, health & safety or the environment. Kiernan Structural Steel Carrigglas Longford Eire, N39VN23 Tel: 00353 43 33 41445 Email: enquireys@kssl.ie Web: www.kssl.ie

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FOOD & DRINK BUSINESS EUROPE, FEBRUARY/MARCH 2017

Kiernan Steel UK 12 Walmgate Road, Perivale, Middlesex, UB6 7LH Tel: + 44 (0) 208 810 8708 Web: www.kiernansteel.co.uk


I MOST ADMIRED COMPANIES

Kerry Group is Britain’s Second Most Admired Food Company The largest player within the fragmented $65 billion global ingredients and flavours market as well as a major supplier of consumer foods to the Irish, UK and selected international markets, Kerry Group is the second most admired food company in Britain. n Management Today’s 2016 ranking of ‘Britain’s Most Admired Companies’, Kerry Group is second only to Unilever in the food sector but outperformed other well-respected food businesses including Glanbia, Associated British Foods, Greencore Group, Cranswick and Dairy Crest, in addition to beverage companies such as Diageo, Fever-Tree, SABMiller, Britvic, Coca-Cola Enterprises (now CocaCola European Partners) and AG Barr – see Table. Unilever was not only Britain’s most admired food company but was second overall, across all industrial sectors, in 2016, having topped the league table in 2015. With a score of 89.06, Kerry Group was 14th overall in 2016, up from 42nd in 2015. The Management Today listing was compiled in conjunction with Leeds Business School (part of Leeds Beckett University) and entailed asking Britain’s largest public companies in 25 sectors to evaluate their peers. Each sector comprises a maximum of 10 companies. Using 12 criteria, participants rated their sector rivals on a scale of 0 to 10 (0 = poor, 5 = average, 10 = excellent). Analysts at leading City investment firms were also polled.

I

Ireland’s Largest Food Company Headquartered in Tralee in County Kerry and listed on the Dublin and London Stock Exchanges, Kerry Group is Ireland’s largest indigenous food company. It employs some 23,000 people (including 800 scientists) and serves a global customer base across across 140 countries. Contributing 76% of group sales and 84% of group trading profit in 2015, Kerry’s Taste & Nutrition business is by far the largest element of the group. Kerry Taste &

Nutrition is a ‘B2B’ taste, nutrition and functional ingredients solutions provider to all sectors of the food, beverage and pharmaceutical markets. In addition to its Taste and Nutrition activities, Kerry Group operates a consumer foods business. Kerry Foods is a leading supplier of added value brands and customer branded foods to the Irish, UK and selected international markets. Although only accounting for 24% of group revenue and 16% of trading profit, Kerry Foods is still a substantial business with sales of almost Eur1.5 billion in 2015. Kerry Foods’ portfolio includes over 20 high profile brands across three major market sectors - meat and savoury products, meal solutions and dairy products. The division’s brands are household names in their respective markets including category leaders such as Richmond, Wall’s, Mattessons, Denny, Shaws, Cheestrings, Dairygold and LowLow. Kerry Foods is also a leading provider of customer branded chilled foods. Technological Edge Kerry Group’s success has been built on a total commitment to ongoing technological

Britain’s Most Admired Food and Beverage Companies, 2016 Overall Ranking 2 14 16 24 44 50 74 85 107 111 112 130 145 164 167 210

Company

Score

Unilever Kerry Group Diageo Glanbia Associated British Foods Fever-Tree Greencore Group SABMiller Britvic Coca-Cola Enterprises Cranswick AG Barr AB InBev (UK) Dairy Crest Tate & Lyle Molson Coors Brewing Co. (UK)

96.44 89.06 88.4 87.11 84.33 84.07 82.01 81.46 79.59 78.92 78.88 77.73 76.33 72.74 72.65 65.89

Source: Management Today.

innovation in all sectors of its business, providing integrated customer-focused product development. The group invests heavily in highly specialised research, development and application centres of excellence. This gives Kerry a ‘technological edge’ in its chosen sectors, allowing it to proactively meet customer and market needs. For example, Kerry Group recently invested Eur100 million to establish a Global Technology & Innovation Centre at Naas in Ireland.

Kerry Group recently invested Eur100 million to establish a Global Technology & Innovation Centre at Naas in Ireland.

FOOD & DRINK BUSINESS EUROPE, FEBRUARY/MARCH 2017

Greenfield to Global Leader From the commissioning of its first manufacturing plant in Listowel in 1972, Kerry has grown at an astounding rate. In its first year the fledgling busi25


ness processed 16 million gallons of skim milk to produce 2,000 tonnes of casein with a workforce of about 40 people and reported profits of Eur127,000 on a turnover of Eur1.3 million. Kerry Group has expanded through a combination of acquisitions and organic growth. Between 2000 and 2014, Kerry Group completed 150 acquisitions, including 57 in flavours and 33 in other food and beverage technologies, as it developed its Taste & Nutrition platform to emerge as leader of the fragmented global ingredients and flavours market. For example, Kerry Group recently completed the acquisition of three US-based businesses - Red Arrow Products, Island Oasis and Biothera Inc’s Wellmune business – for $735 million to significantly expand its portfolio of innovative taste and nutrition solutions. The acquisitions have also added a number of important innovative technology platforms to Kerry Group. J

Change of Leadership at Kerry Group Stan McCarthy, who became chief executive of Kerry Group in January 2008, will retire from this position on 30 September 2017 and as a director of the group at year-end. He will be replaced as chief executive by Edmond Scanlon, who is currently president and chief executive of Kerry Asia Pacific. Edmond Scanlon joined Kerry Group’s Graduate Development Programme in 1996 and worked in Finance until his appoint- Edmond Scanlon (left) and Stan McCarthy. ment as vice president Finance, Supply Chain and Operations of Kerry’s Global Flavours Division in 2004. In 2007, he was appointed vice president Mergers & Acquisitions, Kerry Americas region, before being appointed global president Kerry Functional Ingredients & Actives in late 2008. In 2012, he was appointed president of Kerry China, prior to being appointed to his current position as in November 2013.

I ENGINEERING

Mercury Engineering Combines Traditional Methods and Latest Technologies at Kerry Global Technology & Innovation Centre ercury were delighted to secure the M MEP and Fire Protection packages on such a prestigious, landmark project as the Kerry Global Technology & Innovation Centre (GTIC), Millennium Business Park, Naas, Co Kildare. Mercury’s works ran from September 2013 with a handover date in January 2015.

As well as securing the major services installation packages on the project, Mercury were also the lead BIM coordinator. From the early stages of the project the client and the design consulting team, HGA | GIRE | RKD | ARUP| BSP embraced Mercury’s innovation concepts for pre-fabrication and modular installation methods. Mercury combined the installation with traditional methods whilst utilis26

ing the latest technologies available to the market, the likes of which have never been implemented on an Irish construction site before. • Modularisation and prefabrication riser • Wago prewired trunking • Pre wired AHU’s, plug and play BMS • BIM 360 Glue & Field • Prefabricated spools for Fire Protection. This method of first class engineering solution formulated in the installation of vertical risers and horizontal distribution arriving to site in prefabricated modules ready for immediate installation. The modules consists of all mechanical, electrical services distribution from the Energy Centre in “Block D” to the risers in “Block C”, “B” and “A”. Mercury further demonstrated the value of this efficient construction approach by installing prefabricated ductwork and pipework modules, (complete with insulation, controls, valves, etc) into “Block A”, building “Offices”. The modules arrived to site ready to be lifted directly into place. Mercury’s methodology also included prewired modular containment, this was delivered to site in 3m lengths complete with brackets, containment, wiring and basket to cater for our ICT/FA cabling. The project was awarded the following

awards: * Irish Construction Industry Awards 2015 – Winner; Commercial Project of the Year * Irish Construction Industry Awards 2015 – Winner; Industrial Project of the Year * Irish Construction Industry Awards 2015 – Finalist; Overall Excellence in Construction Award. J

FOOD & DRINK BUSINESS EUROPE, FEBRUARY/MARCH 2017


ENERGY

ENVIRONMENT

Food and Drink Industry Reaps Benefit of MBR Technology ater treatment has always been a major topic of interest for the W food and beverage industry within the UK. The use of large volumes of water for various washing and cleaning regime’s means that the industry relies heavily on water treatment in order to reduce on their effluent disposal costs and in some cases recycling. The development of modern Membrane Bio Reactor technologies (MBR) such as the Mitsubishi hollow fibre membranes allow the industry to benefit from compact, high performing treatment plants which are highly automated and easy to operate. Modern remote access systems with data acquisition and real time monitoring allow plant operators to be in total control of their plants 24/7. MBR Installation references include a number of Branston Ltd, potato washing, packing and processing sites. Cleaning and the packing of potatoes has a high water usage which brings with it significant economic and environmental issues. Branston needed a safe method to recycle the water rather than continuously drawing water from a borehole. The process of recycling the wash water is complex as the water has to be purged not only of the inevitable soil content but also of the nitrogen and phosphorus within it from fertilizers and from organic contamination. Branston announced that: “By working with several local agencies, we have successfully created a water recycling unit which, after just a few months of being up and running, is reducing our mains water usage by an incredible 52%.”

Indeed up to 90% of water at the South West site is now recycled, with any excess waste being safe to discharge off site. With several award winning plants already supplied to the food and beverage sector MSE Systems has become a trusted partner in the supply of complete water treatment plants within the UK. For further information visit www.msesystems.co.uk. J

Unilever Advances Carbon Reduction Commitment at Five UK & Ireland Sites ne year after announcing its bold ambition to become carbon O positive by 2030, Unilever has taken another significant step on its renewable energy journey, with the signing of a contract to use biomethane (also known as green gas/biogas) at five of its sites in the UK and Ireland. Unilever UK & Ireland has signed a deal with a renewable energy company GENeco, which means that from 1 January 2017, its offices in Leatherhead (Surrey) and 100 Victoria Embankment (London), and its food and drink factories in Norwich, Trafford Park and Cork, will use by 10,000 MWh of biomethane to power the sites’ heating and significantly reduce carbon emissions from

the sites. With electricity already coming from certified renewable sources, the purchase of a certified supply of bioemethane means that Unilever has become carbon neutral (from energy sources) at these five sites. The biomethane – which is fully traceable and certified – is generated by GENeco’s anaerobic digester in Avonmouth, which converts inedible food waste and sewage into energy. This new contract supports the overarching work that Unilever has already undertaken in cutting its greenhouse gas emissions. Since the launch of the Sustainable Living Plan in 2010, the global fast moving consumer goods company has cut its manufacturing greenhouse gas footprint by 39% per tonne of production since 2008 – the equivalent of one million tonnes of CO2 per annum. Charlotte Carroll, Sustainable Business Director at Unilever UK & Ireland, says: “In 2015, just as world leaders came together for COP 21 (the United Nations Climate Change Conference), our business committed to making our operations carbon positive by 2030. The ambitious target encouraged us to look carefully at our sites through a fresh, sustainability lens which helped to inspire our landmark agreement with GENeco.” GENeco has been carbon neutral and zero waste to landfill in its operations since 2013. Biomethane generated at its Bristol site is produced from household food and sewage waste; from here it can be injected into the national gas grid to power thousands of local homes, or used as vehicle fuel. J

FOOD & DRINK BUSINESS EUROPE, FEBRUARY/MARCH 2017

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ENERGY

ENVIRONMENT

I ENERGY MANAGEMENT

Food For Thought – Reducing Your Energy Costs Through CHP ombined Heat and Power (CHP) is long established within the food indusC try. Offsetting grid based power supply and producing hot water, steam or chilled water from a natural gas fuelled reciprocating engine has proved very cost effective. The advantage of CHP are lower operating costs, less reliance on the electricity grid and improved sustainability in terms of carbon usage. Over the past 3 years wholesale gas and electricity prices have declined, although both have risen in the past 4 months. However, although the wholesale electricity price has reduced, the supply price to consumers has not and has even risen, departing from the usual gas and electricity supply price following each other. The ratio between gas supply price and electricity supply price is often called the spark spread and this too has increased. A greater spark spread makes the installation of a CHP plant a more viable prospect.

provided in the natural gas fuel and would be counted as good quality CHP. This also maximises the installation sustainability criteria.

and Transmission Use of System (TNUoS or Triad). In the last quarter of 2016 there were two half hour periods when the spot electricity price hit ÂŁ1000/MWh. Leading Supplier Edina is a leading supplier, installer and maintenance provider for gas to power solutions, and is the sole distributor for MWM manufactured gas engines in the UK and Ireland. With over 400MWe installed across the UK, Ireland and Australia, Edina continues to work with the food processing industry, supporting clients to reduce their energy costs, reduce carbon emissions and deliver improved business competitiveness. If you would like to discuss the benefits and feasibility of CHP within your business, please contact Edina at info@edina.eu or visit www.edina.eu. J

The reason for the increase in electricity supply price over the wholesale price is the additional charges for the Green Energy subsidies, and the increases in power distribution costs. Most sites have a higher electrical power demand than a heat demand which is also often more varied. However, CHP installations assess the site heat requirement to size an installation i.e. the generator is sized so that the heat supply is optimised to the heat demand. This is the most efficient way of using the energy

Cost Savings With the increased spark spread, potentially greater cost savings could be made if the CHP is sized to the electrical power demand rather than the heat demand. The electricity pricing is where the greatest cost savings for a company can be made. If an existing CHP is controlled to the heat demand and has extra generation capacity, then consideration should be made to increasing output (and potentially dumping heat) for greater site electrical power supply. This should especially be the case during the peak power demand times between 4pm and 7pm. This period is when the wholesale half hourly power price is the greatest and the where the majority of distribution charges are implemented. Distribution charges are the Distribution Use of System red band (DUoS)

FOOD & DRINK BUSINESS EUROPE, FEBRUARY/MARCH 2017

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I POTATO PROCESSING

Lamb Weston/Meijer Completes €120 Million Expansion Lamb Weston/Meijer has recently completed its Eur120 million investment programme to expand and renovate its factory at Bergen op Zoom in the Netherlands to consolidate its strong position within the international frozen potato products market. n addition to processing potatoes in a more effective and sustainable way, the upgraded facilities will allow Lamb Weston/Meijer to meet the growing global demand for existing and new frozen potato products and to improve customer service.

I

Bas

Alblas,

chief

executive

of

Lamb

Weston/Meijer.

The investment includes the introduction of a new production line, which incorporates innovation in the cutting, optical sorting, frying, freezing and utility areas, to support the company’s ambition for more sustainable and highly efficient production. This is consistent with Lamb Weston/Meijer’s sustainability goals. World Leading Brand Established in 1994, Lamb Weston/Meijer is a 50/50 joint venture between Lamb Weston ConAgra Foods of the US and Meijer Frozen Foods of the Netherlands. Of course, Lamb Weston is a world leading brand in high quality potato products, and is sold in over 100 countries around the world. Lamb Weston/Meijer serves markets in Europe, the Middle East, Africa (EMEA) and Brazil.

Headquartered at Kruiningen in the Netherlands, Lamb Weston/Meijer supplies frozen potato products such as Twisters, Potato Dippers and Connoisseur Fries as well as dehydrated potato flakes to customers in the food service, quick service, food manufacturing and retail sectors. The company operates five factories - three in the Netherlands, one in the UK and a fifth plant in Austria. The expansion project at Bergen op Zoom, which resulted in the creation of 60 new jobs, was completed in only 18 months, without interfering with the production at the existing facilities. The new sustainable production line at Bergen op Zoom has doubled capacity. Expansion in Russia Lamb Weston/Meijer is not only expanding in the Netherlands. Last year, Lamb Weston/Meijer entered a joint venture with the Belaya Dacha Group of Russia to build a new Eur100 million French fry plant in Lipetsk to serve the rapidly growing Russian market. The new factory will have a production capacity of 90,000 tons per year, and is due to come on stream in early 2018. “The joint venture with Belaya Dacha,” says Bas Alblas, chief executive of Lamb Weston/Meijer, “and this new production line in Bergen op Zoom reflect to our ambition to meet the growing demand of high quality potato products in a sustainable way.” Bert Jan Maris, plant manager at Bergen op Zoom, adds: “The expansion and renovation of our plant fits in our sustainability strategy - less water, less energy, less emissions and less residues - we process the potatoes as optimally as possible.” Sustainability In line with its sustainability strategy, Lamb Weston/Meijer also recently opened a new Eur20 million automated potato reception area, consisting of three lines, at its Kruiningen plant. This has resulted in better potato utilisation and improved

Lamb Weston/Meijer has entered a joint venture with the Belaya Dacha Group of Russia to build a new Eur100 million French fry plant to serve the rapidly growing Russian market.

product quality. Indeed, following a number of significant investments over the past two years, Lamb Weston/Meijer is well on its way to achieving its sustainability objectives for 2020. The strategy focuses on six areas – the Sustainable Six. These are Water, Energy & Emissions, Potato & Waste, Employees, Food Safety & Quality and Nutrition & Health. Compared to the reference year 2008, energy consumption per tonne of product has now been reduced by more than 21% and potato utilisation has improved by 4.5%. Increasing transport by water and rail has reduced road transport by more than 6 million kilometres per year. Furthermore, Lamb Weston/Meijer prefries more than 82% of its products in a healthier frying oil. On an annual basis this equals a reduction of 9.6 million kilos of saturated fat through its products. Since 2008 Lamb Weston/Meijer sends zero waste to landfill and as of 2016 only 0.2% (mixed company waste) is incinerated. “There’s a limit to what you can ask Mother Nature to give you,” points out Bas Alblas. “Yet, if you treat her well she will respond in kind. It’s a symbiotic relationship in which both parties need to benefit. This standpoint is fundamental to our sustainability programme and strategy. We believe in give and take. In the micro and the macro. In the company and society.” J

FOOD & DRINK BUSINESS EUROPE, FEBRUARY/MARCH 2017

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I AUTOMATION

Key Technology Helps Processors Improve Product Quality, Increase Yield and Reduce Costs ey Technology has a long history as a trusted supplier and partner K to food processors worldwide. With the single most complete source of high performance digital sorting, conveying and other automation systems, Key helps processors improve product quality, increase yield and reduce costs. Key’s high-performance laser/camera sorting systems – VERYX®, Manta®, Optyx®, Python, Spyder, Taurys™ and Tegra® – remove defects and foreign material (FM) based on colour, size, shape and structural properties. Advanced software gives digital sorters the ability to Sort-to-Grade™ (STG) and/or collect, analyze and share useful data across the enterprise via Information Analytics. Hyperspectral imaging systems, including Cayman® BioPrint® digital sorters and ADR® with CIT®, add chemometric analysis to detect invisible defects as well as a high concentration of sugars, solid content and internal diseases. These sorters are complemented by Key’s shakers, Iso-Flo® vibrato-

ry conveyors, Horizon™ horizontal motion conveyors and Impulse® electromagnetic conveyors, which can be designed to convey, feed, align, dewater, deoil, distribute and more. Other processing equipment includes rotary size graders for sizing, grading and separating and systems for blanching, air cooling, air cleaning, washing and feeding. In addition to world-class systems that satisfy production needs from raw receiving to the packaging line, Key’s deep industry expertise and unparalleled service contributes to its preferred supplier status. Food processors of all sizes know they can rely on Key for singlepoint solutions as well as complex, multi-step processing lines. Global support includes application testing, line integration, installation and start-up, training, customizable service packages for maintenance and repairs and more. For further information contact Key Technology at Email contact@key.net; Tel +3211249191 or visit www.key.net. J

I POULTRY

Maelor Foods Selects Marel Poultry For New Plant aelor Foods, a related company of Salisbury Poultry (Midlands), has selected Marel Poultry to supply its brand new M 13,500 bph poultry processing plant in Wrexham. It is the first, completely new, state-of-the-art plant at this line speed in the UK. After the purchase of the former cheese dairy from First Milk near Wrexham in North Wales, Maelor Foods decided to transform the site into a brand new poultry processing plant. It will feature a 13,500 bph broiler primary line from live bird handling on to distribution for whole birds to serve Salisbury Poultry (Bilston factory) for cut up and deboning portions. There will also be further deboning at the Wrexham plant itself, which has more space and more capacity for Maelor Foods to grow its business. Marel Poultry will supply a complete kill and evisceration department, incorporating fully automated giblet and feet processing. Besides that, a Stork in-line air chilling tunnel and an elaborate grading line will be installed. The 13,500 bph capacity is an initial start-up speed; the primary line will be prepared for future growth of Maelor Foods’ operations. Jeff Donald, Marel Poultry Area Sales manager, says: “For this project Maelor Foods has selected Marel Poultry as the most capable supplier who understands the company’s needs and has the ability to deliver a factory process fit for the future. We look forward tremendously to completing this project during 2017.” 32

Currently employing over 500 people, Salisbury Poultry was founded in 1989 by Raj Mehta. J

Arie Tulp, Marel Poultry Sales and Marketing Director; Jeff Donald, Marel Poultry Area Sales Manager UK; Raj Mehta, owner and MD of Maelor Foods; Steve Hammond, Commercial Director; and Paul Cardinaal, Marel Poultry Regional Sales Manager.

FOOD & DRINK BUSINESS EUROPE, FEBRUARY/MARCH 2017


I SNACKS

Global Savoury Snacks Market to Reach Over $138 Billion by 2020 as ‘Snackification’ Trend Grows he global savoury snacks market will rise from US$94.5 billion in 2015 to US$138.2.billion by 2020, representing a comT pound annual growth rate (CAGR) of 7.9%, according to consumer insight firm Canadean (now part of GlobalData). The company’s latest report states that such growth is expected to come mainly from developing countries in the Asia-Pacific and Eastern European regions, with CAGRs of 13.7% and 7.3%, respectively, while the Latin American region is expected to register a more moderate CAGR of 3.2%. According to Rashmi Mahajan, Analyst for Canadean: “Rising urbanization levels and busier lifestyles are impacting the eating habits of consumers, who are increasingly replacing main meals with more flexible, light, and convenient snacking options. Changing consumer preferences and the growing trend of ‘snackification’, which represents a significant portion of everyday eating routines, is driving the demand for portable and on-the-go formats.” Big opportunities exist in large, populous developing countries with low per capita consumption levels, such as China (0.8 kg of savoury snacks per person in 2015) and India (1 kg), compared to the high levels of consumption in developed countries such as the US (9.5 kg) and the UK (7 kg). Canadean’s analysis reveals that the health and wellness trend has impacted the eating habits of consumers in developed markets,

who tend to base their snacking choices on nutritional value and quality. In this way, consumers are trading up and spending more on premium varieties of snacks. Consumers in emerging countries including Brazil, China and India, on the other hand, mostly base their snack choices on value and experimentation. According to Canadean, the global savoury snacks market is highly fragmented, with the top five brands holding less than 16% market share. J

Health, Convenience and Choice Drive Fruit Snacks NPD ne of the key growth areas in the snacks O category in recent years has been fruitbased snacks. Their share of global tracked snack launch activity recorded by Innova Market Insights has more than doubled from less than 8% to nearly 18%, over the past five years. This makes it the number three snacks sub-category overall after savoury/salty snacks and snack nuts/seeds. “The market is now very diverse,” notes Lu Ann Williams, Director of Innovation at Innova Market Insights. “But it can generally cover a number of categories, led by dried snacking fruit, fruit bars and processed fruit snacks. There is ongoing activity in emphasizing the snack positioning of fruit products, with more user friendly packaging such as resealable stand-up pouches and small pots and trays, making them more suitable for anytime snacking. There has also been growth in the availability of multi-packs of individual snacks.” As the market has developed, it has seen the rising popularity of fruit and nut mixes, often featuring more unusual and exotic varieties of both. So-called superfruits are strongly in evidence, varying from the rela-

tively established, such as cranberries, to the less well-known, such as goji and açai. Value is also being added with the use of other ingredients and flavourings, including indulgent favourites such as chocolate,

healthy additions such as yogurt and on trend options, such as coconut. The intrinsically healthy image of fruit has also helped to drive the market forward. Nearly half of launches tracked in the 12 months to the end of September 2016 were positioned on a health platform of some kind, rising to over 85% in North America. Recent interest in clean labelling and free from products has generally been relatively easy to target in a sub-category with an existing natural image. Over a quarter of launches used a natural and/or no additives or preservatives positioning, rising to over 36%, if organic claims are also included. Interest in GMO-free claims has also risen sharply in recent years and they are now used on about 8% of global launches, up from 3.5% five years ago. Other health claims of ongoing interest include fibre content, used for over 11% of global launches in the 12 months to the end of September 2016, and sugar content (no added sugar, low sugar and sugar free) with over 10%. For more information about Innova Market Insights, please visit www.innovadatabase.com. J

FOOD & DRINK BUSINESS EUROPE, FEBRUARY/MARCH 2017

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I CEREALS

Weetabix to Invest £30 Million in UK Manufacturing eetabix Food Company has W announced a £30 million capital investment programme across its UK manufacturing sites at Burton Latimer and Corby. The creation of new production capacity by 2018 will significantly raise volumes to match rising sales of the iconic Weetabix biscuits both at home and overseas. The investment comes on the back of Weetabix’s UK market share for cereals and drinks rising from 15.3% to 16.4% in the past year as British shoppers look for more nutritious, tasty and convenient breakfast choices. Weetabix is the largest breakfast cereal

34

brand in the United Kingdom and has a global footprint spanning Asia, Europe, the Middle East, North America and Africa. Its family of brands includes Weetabix, Alpen, Ready-brek, Weetos, Oatibix and Alpen cereal bars. Weetabix products are exported to 87 countries in Asia (including China), Europe and the Middle East. The creation of further production capability in Burton Latimer and Corby by 2018 will allow Weetabix to match consumer demand for its popular breakfast cereals. The launch of Weetabix Protein added £7 million to sales in 2016, and was the biggest new cereal launch in the category. Giles Turrell, chief executive of Weetabix Food Company, says: “We’ve consistently bucked the market, through our innovation and focus on nutritionally strong products that taste great. We have been successful in increasing our sales of brands such as Weetabix and Alpen, with consumers trusting us to deliver best in class nutrition and taste.” Alongside cereals, Weetabix runs a thriving breakfast drinks business, Weetabix On

Giles Turrell, chief executive of Weetabix Food Company.

the Go, which has grown rapidly, recently selling its 18 millionth bottle. As a standalone brand it would now be in the top 20 breakfast brands having grown 70% in 2016. Weetabix Food Company is reported to have been put up for sale by Bright Food, one of China’s largest food groups. Bright Food acquired 60% of Weetabix Food Company from private equity firm Lion Capital for £720 million in 2012. J

FOOD & DRINK BUSINESS EUROPE, FEBRUARY/MARCH 2017


I BAKERY

Greggs Continues Transformation From Traditional Bakery to Food-on-the-go Brand reggs, the UK’s largest retail baker, increased total sales by 7% G to £894.2 million in 2016 as underlying operating profit grew by 8.6% to £78.1 million and pre-tax profit (including exceptional items) rose by 2.9% to £75.1 million. Greggs is the leading bakery food-on-the-go retailer in the UK, with over 1,750 retail outlets throughout the country. “In 2016 we delivered another strong performance as we continued on our journey to transform Greggs from a traditional bakery business into a modern, attractive food-on-the-go retailer,” says Roger Whiteside, chief executive of Greggs. “Our product offer is evolving to meet the changing needs of our customers and our shop estate and service levels have benefited from significant investment.” He continues: “The UK consumer outlook is more challenging than we have seen in recent years, with industry-wide pressures emerging in commodities as well as labour costs. However we are Roger Whiteside, chief executive of Greggs. confident of making further progress as we implement our plan to grow Greggs as a contemporary food-on-the-go brand.” ment the transformation of the use of space and equipment across Greggs has embarked on a major £100 million investment pro- its bakery network. gramme, announced in March 2016, designed to increase capacity “Once implemented this new supply chain platform will substanand efficiency in shop distribution to tially improve product quality, our comsupport substantial shop growth alongpetitiveness and, alongside system side improved quality and efficiency in investment, will complete our transforthe group’s bakery manufacturing operamation from traditional bakery to foodtion by centralising production. During on-the-go,” explains Roger Whiteside. 2016, Greggs opened a new distribution “This is our largest ever investment in centre in Enfield and closed both its our supply chain, reaffirming our strateTwickenham and Sleaford bakeries. gic commitment to the competitive Good progress was also made with the advantage offered through vertical inteextension of its bakery in Glasgow, gration and delivering an attractive which will facilitate the closure of the return on investment.” Edinburgh Bakery in the second quarter Greggs aims to increase its estate to of 2017. Greggs has also undertaken substantially more than 2,000 shops. In detailed planning for the subsequent 2016 it opened 145 new shops (includinvestment phase across its remaining ing 56 franchised units) and closed 79, bakery sites. Greggs expects that it will Greggs aims to increase its estate to substantially more than growing the estate to 1,764 shops tradtake approximately two years to imple- 2,000 shops. ing as at 31 December 2016. J

West Cornwall Pasty Co Acquired by Samworth Brothers est Cornwall Pasty Co, the UK food-to-go specialist, has been W sold to Samworth Brothers, the convenience food group, for an undisclosed sum by Enact, the private equity business. West Cornwall Pasty Co, which operates across a wide range of travel and high street locations and has flagship trading partners such as Moto and the RFU, has been sold following its successful turnaround over the last two and half years. West Cornwall Pasty Co was the first investment made by the Enact Fund in April 2014. Since that time the management team, led by executive chairman Chris Peck, have taken the business from strength to strength - quadrupling profitability, extending the product offering and undertaking a major overhaul of the brand. This

exit marks the first realisation by the Enact Fund and delivers a 5.5x return to investors. Chris Cormack, investment director at Enact, says: “Having been involved since our initial investment in West Cornwall Pasty Co we are delighted to have seen the transformation and growth of the business that has seen us exit to Samworth Brothers. We are incredibly proud of the work that has been done, initially to ensure the stability of the company in 2014, and since then to create a thriving business, capable of great things in the future.” J

FOOD & DRINK BUSINESS EUROPE, FEBRUARY/MARCH 2017

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I BAKERY

GEA Doubles Proofing Throughput For Manufacturers of Croissant and Pain Au Chocolat GEA has recently developed a new spiral proofing and freezing system for the production of breakfast products, such as croissants and pain au chocolat, that has the ability to double output and so solve a major problem for bakeries. dvances in up-stream proA duction techniques - mixing, laminating, cutting and forming - have allowed bakeries to make dough for croissants and pain au chocolat at ever increasing rates with some factories able to operate at a throughput of up to six tonnes of product per hour. Until now, however, the overall production rate has been limited by the ability of proofers to operate at full capacity while maintaining product quality. New Development

A new development from GEA, however, has solved that problem ushering in a new era of high production with the top quality bakery products customers expect. The new GEA STec spiral proofer from GEA has the ability to proof bakery products with a production rate of up to six tonnes per hour, Croissants after proofing. twice the capacity of most existing spiral proofing systems, thereby match- rather than blowing warm air with fans into ing the capacity of the upstream processes. the spiral, defuses it equally, at low presThe GEA S-Tec spiral proofer has sure, throughout the machine thereby achieved this by using a completely new air maintaining the perfect proofing environdistribution system that, ment throughout, eliminating hot or cold areas and achieving a uniform humidity. In this way the system is able to maintain the To achieve the whole proofing area in accordance with each customer’s recipe. required throughput rate the

S-Tec spiral proofer has a twin drum with 40 tiers on eaach drum representing 2,300 meters of conveyor belt.

Difficult to Achieve

Mathieu Nouhin from the company says that increasing the throughput to this level, while maintaining the highest possible product quality, was difficult to achieve. “To achieve the required throughput rate the S-Tec spiral proofer has a twin drum with 40 tiers on each drum representing FOOD & DRINK BUSINESS EUROPE, FEBRUARY/MARCH 2017

2,300 meters of conveyor belt,” he explains. “It’s 21 meters long, 11 meters wide and 8 meters high, so using an ordinary air flow system it would have been impossible to control the environment within such a large machine accurately. The new system, however, controls the temperature within one degree and maintains a constant humidity to allow the products to rise homogenously and achieve the texture, appearance and taste our customers expect.” On exiting the GEA STec spiral proofer the risen croissant and pain au chocolat are transferred directly to the freezer, also provided by GEA, and on for distribution to local bakeries for the real homemade taste consumers love. J

The new system controls the temperature within one degree and maintains a constant w the humidity to allow products to rise homogenously and achieve the texture, appearance and taste our customers expecct. 37


I MIXING & BLENDING

The Consumer Trends Presenting New Processing Challenges and the Role of Mixing and Blending By Anders Yngwe Soderstjerna, Centre of Expertise Director, Tetra Pak ixing and blending ingredients into a liquid medium is a common process, however with increased pressures on manufacturers to create more diverse products – all with the same smooth and consistent homogenous natural quality – it is a process that remains as important as ever. Over the last five years there has been an increased focus on processing efficiency gains, as well as balancing the refinement of product quality and consistency. The challenge for manufacturers is to combine these improvements with a large-scale expansion of their product portfolio to meet changing consumer demands. Consumers are looking for products that cater to their nutritional needs, as well as offer an exciting experience. There are three key trends driving consumer demand: 1. a preference for food and beverage products that help consumers live a healthy lifestyle; 2. a desire for products offering ‘on-the-go’ convenience, 3. and a focus on products with a ‘natural, homemade’ quality.

M

The Importance of Mixing and Blending

Mixing and blending is critical because it is the processing phase in which product ‘value add’ is created. If the correct approach isn’t employed at the start of processing, the batch will either be unusable or inconsistent, therefore compromising product value significantly. By applying the right expertise from the start, manufacturers can achieve unique product characteristics that set themselves apart from the competition. Manufacturers must have complete control over every aspect of production from beginning to end. This ranges from having the right initial mixing solution for the product, to having detailed oversight of the many different factors that affect mixing efficiency, and all important end-product quality factors such as texture and taste. Control is essential for ensuring food safety, Tetra Pak’s number one priority. The safety of a product is primarily contingent on the balance of ingredients and the level of heat applied during processing to ensure that the product is adequately sterilized. The number of ingredients variables is increasing. They are now offered in powders, pastes and multiple other forms. It is therefore important that processors can guarantee product consistency and safety, regardless of new ingredient combinations. Powders, which have a longer shelf life, are a particular focus point for processors. They are smaller and lighter, making them more convenient to transport. However, some such as aspartame, powdered milk, and tea powders are prone to foaming and therefore require a special mixing and blending approach. The Integral Role of Processing in Satisfying Consumer Demand

High Shear Mixer.

Consumer trends are driving interest in specific products. They’re looking for products that contain functional ingredients such as added vitamins and protein for general health and physical recovery from exercise. Ambient products, such as longer shelf life yoghurt and beverages are supporting on-

Anders Yngwe Soderstjerna, Centre of Expertise Director, Tetra Pak.

the-go consumption, and more ‘natural’ products with fruit and nut particles are meeting the demand for a more natural, homemade quality. These demands present new processing challenges for manufacturers. At Tetra Pak, we offer our 60-year expertise in providing automated food and beverage solutions to customers combined with a deep understanding of food technology and the challenges manufacturers are facing. To ensure we can consistently offer this service globally, we have established over ten Product Development Centres (PDCs). These centres provide customers with access to experts who can help them test recipes and machinery simultaneously, finding an optimal solution and fast tracking the process of turning ideas into new products and categories that will capture the attention of modern consumers. In conclusion, to ensure products keep pace with the increasingly complex demands of consumers, beverage manufacturers must continue to explore and invest in their processing capabilities. Despite being an existing technology, mixing and blending remains a central processing technique for creating innovative products in the beverage space. J

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I DAIRY

EasiYo & Ornua Nutrition Ingredients Announce Supply Partnership rnua’s UK-based nutritional ingrediO ents business, Ornua Nutrition Ingredients (ONI), and EasiYo, the homemade, fresh yogurt brand from New Zealand, have entered into a supply partnership. This will see ONI utilise a new, purpose-built, production facility at its headquarters in Leek in the UK, to blend and pack high-quality, Irish, dairy powders into the full range of EasiYo natural and flavoured yogurt mixes for the UK and European markets. This will be the first time that EasiYo has been produced outside of New Zealand, and marks a major step forward in the brand’s international development. EasiYo’s taste, thick texture and healthy goodness have made it one of the world’s

EasiYo is the homemade, fresh yogurt brand from New Zealand.

best-selling brands of homemade yogurt. Today it has a strong consumer following in Australia, New Zealand and the Far East with ambitious plans to increase its presence in its largest market, the UK and Continental Europe, with a major business development and marketing drive to increase its distribution and sales. Central to this will be an initial five year ‘end-to-end’ partnership between ONI and EasiYo that has seen a joint investment of about Eur850,000 to establish a new, dedicated, blending facility at Leek incorporating new, high-speed, sachet-packing lines. Alastair Jackson, Managing Director of Ornua Nutrition Ingredients, comments: “We are delighted to be working in partnership with EasiYo on its exciting growth strategy and believe that our new state-ofthe art facility here in Leek, together with our expertise in blending, packing and sourcing of high-quality ingredients, will provide strong support for its expansion in the UK and European marketplace. Ornua’s strategic objective is to develop opportunities for the export of Irish dairy products and this important partnership with EasiYo demonstrates that we are making strong progress in developing added value routes to market for high-quality, grass-fed Irish milk products.” Brian Dewar, CEO at EasiYo Products,

Alastair Jackson, Managing Director of Ornua Nutrition Ingredients.

says: “We’re delighted to be working with Ornua Nutrition Ingredients as our UK and European supply partner. The UK and EU markets represent a multi-million euro opportunity for us to capitalise on the growing consumer trend of making fresh, wholesome, food at home. Moving manufacture and supply closer to our key accounts means we can respond to our customers’ needs faster, while significantly improving our environmental footprint. With so many similarities between Ornua Nutrition Ingredients and EasiYo, this partnership was a natural fit for our business.” J

DuPont Nutrition & Health to Increase Cultures Manufacturing Capacity in Europe uPont Nutrition & Health is to D increase in its manufacturing capacity in Europe. The company will invest $60 million expanding three cultures production sites in the region as a response to increasing demand for frozen and freezedried starter cultures from the global yogurt, fresh fermented and cheese markets. DuPont Nutrition & Health announced major expansion plans for its probiotics production facilities located in the United States in November 2016. “These initiatives for European cultures plants will further increase our ability to serve the growing global dairy market,” says Matthias Heinzel,

President of DuPont Nutrition & Health. “This additional capacity in cultures ensures that we maintain our recognized

reputation for excellent stability and performance by leading customers around the world. Our investment will enable us to support their growth and geographic expansion.” The European investments will be at the DuPont Nutrition &Health plants in Sassenage and Epernon in France, and Niebull in Germany. The first phase of the plan will be commissioned in 2017 with an investment in the Sassenage plant. Frozen cultures production capacity will be increased by investment in the Niebull and Epernon plants. For further information visit www.food.dupont. com. J

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I POULTRY

Manor Farm to Consolidate Irish Market Leadership With €25 Million Investment Programme Having been the largest chicken processor in the Republic of Ireland for many years, Carton Bros (trading as Manor Farm) is further consolidating its market leadership by investing €25 million to expand and upgrade its factory at Shercock in County Cavan. mploying over 800 people directly and contracting a further 160 farmers, the company sells chicken to all the main retailers in Ireland either under private label or under the Manor Farm brand, which has been rejuvenated in recent times. The family-owned business controls in

E

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

processing output of 900,000 chickens a week to 1.5 million and is expected to result in the creation of about 600 new jobs. Recent developments at the plant include the establishment of a new evisceration section with full recovery of offal along with the installation of a new IQF portion line, an extra fillet processing line and a new gas-stunning facility within the slaughter line. Automation at the plant has also been enhanced with the introduction of a robotic fillet grading line. “The objective of the investment plan is to bring the Shercock site up to the highest industry standards – on a par with the most modern facilities. This is a never-ending ambition because of the constant improvements in technology, equipment and new management information systems,” says Vincent Carton, chief executive of Carton Bros (Manor Farm). “Manor Farm has one of the most modern processing facilities in Europe producing consistently premium quality chicken, week-in week-out.” Energy Efficient and Environment-friendly Manor Farm has also been investing in improving its energy management and environmental performance. These measures include a new Waste Water Treatment Plant on-site at Shercock to improve the quality of the water being discharged

excess of 50% of the Irish retail chicken market including sales of both branded and private label fresh chicken. Manor Farm is the largest producer of Bord Bia (Irish Food Board) approved Irish chicken in the country. Its turnover for the year ended November 2015 was Eur249 million, of which 90% was spent in the 26 counties of the Republic of Ireland. Manor Farm is a vertically integrated poultry business, exercising control over all stages of chicken production from breeding through to processing and finally to retail distribution. The company operates its own dedicated feed mill in Shercock along with a hatchery unit in nearby Carrickmacross. This allows Manor Farm to supervise each stage of the chick production and rearing operation and also to control the diet of the birds, which is ultimately reflected in the eating quality of the chicken meat bought by the consumer. €25 Million Investment The processing facility at Shercock, which is located on the shores of Lough Sillan, is currently being expanded and upgraded in line with Manor Farm’s long-term growth plan. Entailing investment of Eur25 million over five years, the development programme will increase the company’s current

Manor Farm is a vertically integrated poultry business, exercising control over all stages of chicken production from breeding through to processing and finally to retail distribution.

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reduce energy usage. Other enhancements include updating lighting to LED and fitting motion sensors. The chicken processor is also taking measures to source its raw materials more efficiently. Long Tradition Manor Farm is currently being run by the eighth generation of the Carton family and the business can trace its roots back to 1775. It is one of the oldest family companies in Ireland, having commenced trading in the Dublin market area before

Manor Farm operates its own dedicated feed mill in Shercock along with a hatchery unit in nearby Carrickmacross.

to Lough Sillan. The company is also switching to gas boilers in the plant rather than using oil and is operating a higher efficiency transformer. To increase efficiency and to highlight areas for improvement, water and electricity meters have been installed throughout the site. Manor Farm is also focusing on reducing waste with the installation of cardboard and plastic balers on site to enhance waste segregation and achieve better recycling rates. Electrical meters have also been installed on all major energy users at the feedmill, and meters have been fitted to monitor thermal energy. A new hammer mill has been installed to

Vincent Carton, chief executive of Carton Bros (Manor Farm).

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Farm synonymous with the best in Irish chicken.” He adds: “Manor Farm is committed to supporting the Irish agri-food sector - guaranteeing the consumer that Irish products are kept on the shelves and retaining agriculture jobs in Ireland.”

moving in 1970 to a custom-built factory at Shercock. Indeed, Manor Farm is credited with making chicken more accessible to more people in Ireland. “That’s just over 240 years of passion, knowledge, expertise and skill. But it’s not just the family; it’s the generations of people who work with Manor Farm, the farmers who rear the chickens, who are all part of this great tradition too,” points out Vincent Carton. “And the company has been rewarded through the years with numerous awards, which make Manor

Irish Market The Irish retail chicken market is mature exhibiting annual growth of 1% to 2%. The total market, encompassing the retail, food service and manufacturing sectors, is estimated at approximately 3 million chickens per week - half of which are imported. The majority of imported product is used in the food service and manufacturing sectors. With consumers showing an increasing interest in how and where their food is sourced and processed, Vincent Carton identifies opportunities for displacing imports. Manor Farm is a member of Origin Green, the Bord Bia scheme designed to position Ireland as a world leader in sustainably produced food and drink products. Sustainability and a farm to fork approach are central to Manor Farm’s corporate ethos. “The Manor Farm proposition is unique as it is the only Irish chicken processor with its own feed mill, thereby ensuring complete traceability and control of what its chicken is fed, this is a critical link in the supply chain,” he explains. Growth Strategy In addition to targeting import substitution, another aspect of Manor Farm’s long-term growth plan, is to increase its branded sales. Although the Manor Farm brand is well know by Irish consumers, it represents only about 7% of the company’s turnover and the goal is to increase this to 10% or 11% over the next few years. This will be achieved through

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High Quality Flexible Packaging to the Food Processing Industry in Ireland CONGRATULATIONS AND CONTINUED SUCCESS TO MANOR FARM Unit 1, Village Mills Business Park, Rathnew, Co. Wicklow Tel: 0035340469851 Email: sales@packex.ie Web: www.packex.ie 46

FOOD & DRINK BUSINESS EUROPE, FEBRUARY/MARCH 2017


increased emphasis on marketing through social media, consumer talks and workshops, advertising and new product launches. With a strong track record of innovation both in new product development and the adoption of the latest processing technology, Manor Farm is well placed to help grow the overall chicken market in Ireland. The company is constantly exploring new product and packaging ideas. “We passionately believe in offering consumers new ways of eating chicken as a way of stimulating increased consumption and excitement,” says Vincent Carton. For example, the company recently introduced ‘Cook in the bag’ chicken to simplify the cooking process for consumers, making it more convenient and safer. Manor Farm is now extending this concept with further additions to the range. J

I POULTRY

A Robot With ‘Matchmaking’ Knife hat chicken processor would not welW come an automatic in-line system allowing him to match hour after hour, consistently accurately and with minimum giveaway customer orders for fixed weight breast fillet retail packs to fillet coming off his deboning line. By using Innova software to link its RoboBatcher and I-Cut technologies, Marel Poultry can offer just such a system, launched last year as ‘a Robot with a Knife’. RoboBatcher batches breast fillet onto fixed weight retail trays or into fixed weight bulk packs. It can handle up to three recipes or customer orders simultaneously. The Marel I-Cut 122 Portion Cutter will cut fillet to a pre-set weight, dimension or both. It can cut fillet at various angles to give a natural looking cut end product. By linking the two technologies, I-Cut 122, the Knife, receives its instructions on what size to cut each fillet from RoboBatcher, the Robot. As each fillet enters the I-Cut 122, it is scanned and its

weight assessed. This information is passed to RoboBatcher which will then decide whether the fillet can pass directly into one of its recipes or whether it needs to be trimmed to fit. This technique makes the very best use of incoming fillet, at the same time keeping give-away to an absolute minimum. Not all fillets will need to be trimmed. The technique is also particularly suited to the challenge, faced by today’s processors, of accommodating breast fillet from ever heavier birds into the lighter fixed weight retail packs demanded by the consumer. Marel’s “Robot with a Knife” could just as easily be called ‘the Matchmaker’. The system ensures that breast fillets from the deboning line, whose size and weight will vary, are always matched as accurately as possible to customer orders, allowing processors to fulfil these orders efficiently and with minimal give-away. Find out more at www.marel.com/robotwithknife. J

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I COLD CHAIN SOLUTIONS

AGRO Merchants Group Unveils Next Phase of its Development GRO Merchants Group recently celebratA ed the opening of their first European greenfield site in the port of Rotterdam. AGRO Merchants Group completed the first phase of the Rotterdam-Maasvlakte facility in December 2016. The 18,000-pallet-space cold store expanded the company’s service offering to its client base in the critical port hub. AGRO Merchants Rotterdam-Maasvlakte provides comprehensive services for the meat and seafood industry and serves as a Veterinary Border Inspection Post (BIP). Located in Rotterdam, the facility will benefit importers and exporters through AGRO’s global network and Captive Trade solution. With this innovative program, AGRO Merchants Group can take full responsibility of movement of meat products from origin to destination, including any re-handling, veterinary checks and inspections on both ends adds value and reliability to our customers. The flexible multi-temperature cold store will handle a wide range of frozen and chilled commodities and will offer the possibility to develop custom packaging areas and a wide range of additional value-added services. Competitive Edge Jan Harthoorn, Vice President Strategic Development Europe, said: “It made sense for us to have a stronger presence in the port of Rotterdam. It’s a key location for global trade of meat, fish and fruit. The fact that we have facilities in 9 countries worldwide makes us stand out amongst our competitors.” Carlos Rodriguez, President of AGRO Merchants Europe, praised the team for excellent cooperation on the project and spoke about the future plans of the company: “It´s a

Jan Harthoorn, Vice-President Strategic Development Europe; Peter van der Kolk, Managing Director Netherlands; Johan van Middendorp, COO Europe; and Carlos Rodriguez, CEO Global..

milestone for our group as we have proven that we can do greenfield projects and will do many more in the future. Several exciting projects are ahead of us this year - we are really close to entering two more European countries in the next six months.”

Organisational Changes AGRO also announced organisational changes in January. Neal Rider, the CEO and co-founder, transitioned to the newly-created role of Executive Chairman. Carlos Rodriguez, also co-founder and previously the President of Agro Merchants Europe, was promoted to CEO. Rider has led the company since its formation in February 2013. In less than four years, Agro has grown to become the fifth-largest provider of refrigerated warehousing and logistics services in the world, with operations in nine countries across four continents. “It is a great honour for me to lead this organization,” said Rodriguez. “Our team has accomplished an extraordinary amount in the past four years. We will continue to aggresAGRO Merchants Group completed the first phase of the sively grow the business while Rotterdam-Maasvlakte facility in December 2016. The 18,000also bringing more focus on pallet-space cold store expanded the company’s service offering integrating our existing netto its client base in the critical port hub. work of cold stores, all with

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the goal of delivering the best solutions to our customers. I’m excited for the future and the opportunity to work more closely with our partners and teams around the world.” In 2016, the company expanded further in the Iberian Peninsula by acquiring APC in Barcelona and massively expanding the cold store in Algeciras. The company also finished expansion projects in ADB, NaaldwijkRotterdam, Lucca Freezer & Cold Storage in Vineland, NJ and built a new state-of-art warehouse in Maasvlakte-Rotterdam. 2016 was wrapped up by AGRO’s entry into Australia by acquiring Doboy Coldstores in Brisbane. J

FOOD & DRINK BUSINESS EUROPE, FEBRUARY/MARCH 2017


Food & drink business europe feb:march 2017 issue  

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