Page 1

June 2013

TOP 100

Food and Drink Manufacturers in the UK and Ireland

Food & Drink Business Website:

www.fdbusiness.com


C o n t e n t s

- 3 C OVER S TORY

- 47 B AKERY

The Top 100 food and drink manufacturers in the UK and Ireland.

Cherry Blossom Bakery starts to bloom.

P AGE 12

- 15 S OFT D RINKS

PAGE 3

Britvic focuses on cost savings and international expansion.

Fiona Kendrick, CEO, Nestle UK.

R EGULARS Bottling & Packaging . . . 20, 21, 27, 42 & 43

Elio Leoni Sceti, CEO, Iglo Group.

Seeing is believing are brands and retailers being honest about the final moment of truth. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

Materials Handling . . . . . . . . . . . . . . 26 & 48 Steel belt meat conveyors attract growing interest . . . . . . . . . . . . . . . . . . . . 26

- 17 D AIRY

PAGE 15

Bright outlook for Glanbia after transformational year.

Processing & Manufacturing . . . . . . . . . . . 27

PAGE 4

- 23-28 M EAT & P OULTRY Leaner industry faces meaty challenges.

- 34 & 36 B AKERY

Simon Emeny, CEO, Fuller, Smith & Turner.

Quality & Safety . . . . . . . . . . . . . . . . . 28-32 Going beyond food safety with advanced food grade lubricants . . . . . . . . . . 31

Materials & Ingredients . . . . . . . . . . . . 39-41

Energy & Environment . . . . . . . . . . . 44 & 45

-

Gerald Corbett, chairman, Britvic.

PAGE 37

Denise Morrison, CEO, Campbell Soup Company.

British Bakels investing for the future. Managing Director: Colin Murphy Editor: Mike Rohan Sales Director: Ronan McGlade

Small cakes are the icing on the UK cake market.

Advertising: Susan Doyle and Sylvia McCarthy . Senior Sales Executive: Paul Lees

PAGE 7

- 37 M ERGERS & A CQUISITIONS

Gavin Darby, CEO, Premier Foods.

Production Manager: Susan Doyle

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 London Office: Premier Publishing Limited, CTS, 34 Leadenhall Street, London, EC3A 1AT Tel: 0171 247 3238 Fax: 0171 247 3239

Coverage of British and international deals.

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!

- 38 M ARKET F OCUS Could supermarket own brands be in for a shock?

PAGE 11

No let-up in polarisation of UK grocery market.

Siobhan Talbot, MD designate, Glanbia.

Design, Origination and Separations by Fullpoint Design (057) 8680873 Printed by GPS Colour Graphics Annual Subscription (UK and Ireland) £95 Overseas Subscription £115

FOOD & DRINK BUSINESS EUROPE, JUNE 2013

1


COVER STORY

The Top 100 Food and Drink Manufacturers in the UK and Ireland Food & Drink Business Europe presents its eighteenth annual ranking of the leading one hundred food and drink manufacturers in the UK and Ireland, and also highlights some of the key corporate developments within the industry during the past twelve months.

T

he Top 100 companies are ranked according to their most recently available turnover figures and pre-tax profits are also listed. The 2013 Top 100 incorporates companies ranging in scale from Walkers Shortbread with a turnover of £119.1 million up to Unilever’s refreshment and foods business, which achieved global sales of Eur24.2 billion (£19.8 billion) in 2012. M&A Activity Merger and acquisition activity, which was relatively subdued throughout 2009 and 2010, has been steadily gaining momentum. According to sector experts Grant Thornton UK, the number of M&A deals during 2012 increased by 17% to 171 transactions, over 2011, which was up 22% on the previous year. The value of food and beverage deals rose by 64% on 2011 figures to £7.9 billion. In terms of acquisition spend, Diageo was the most active company within the Top 100 during the past 12 months, with its purchase of a 27% stake in United Spirits, the leading spirits company in India for INR57.3 billion (£660 million) from United Breweries (Holdings). The deal is in line with Diageo’s strategy of building its

Fiona Kendrick, chief executive of Nestle UK.

presence in the world’s faster growing markets. Diageo is the largest drinks company within the Top 100. Unilever completed two disposals in North American – its frozen meals operation and the Skippy Peanut butter business – for a combined sum of $965 million (£635 million) during the past year. Premier Foods also continued its disposal programme, completing the sale of four businesses during the period for a combined proceeds of £369.5 million. Changes in Ownership The biggest single disposal completed during the past year involving a Top 100 company was the sale of 60% of Weetabix Food Company by private equity firm Lion Capital to Bright Food, one of China’s largest food groups, for £720 million. Weetabix is the second largest branded manufacturer by value of ready-to-eat cereals and cereal bars in the UK and exports its products to over 80 countries. A number of other Top 100 companies changed ownership during the past twelve months. For instance, R&R Ice Cream, which was created in 2006 following the merger of UK-based Richmond Ice Cream with German ice cream manufacturer Roncadin and is now the second largest take-home ice cream manufacturer in Europe, was acquired by private equity group PAI Partners for Eur460 million plus the assumption of debt. R&R Ice Cream has expanded through a series of strategic acquisitions, the most recent being the purchase of Fredericks Dairies, the third largest branded ice cream manufacturer in the UK, for £49.0 million. Vion UK, the British meat processing operations of Netherlands-based Vion, were broken up and sold off, triggering a major restructuring of the British meat and poultry industry. VION’s UK pork division was FOOD & DRINK BUSINESS EUROPE, JUNE 2013

Ivan Menezes, new chief executive of Diageo.

sold to a management buy-out consortium in December 2012 for an undisclosed price and subsequently renamed Karro Food Group. 2 Sisters Food Group (owned by Boparan Holdings) has since acquired Vion UK’s poultry and red meat processing businesses for an undisclosed sum. The deal marks the third major acquisition by 2 Sisters in the last two years, following the earlier purchases of Northern Foods, one of Britain’s largest convenience food processors, and Premier Foods’ loss-making Brookes Avana business for £342 million and £30 million respectively. Growing Overseas Interest Some Top 100 companies have recently fallen into foreign hands. The most notable is KP Snacks, sold by United Biscuits for £500 million to Intersnack Group, the German privately-owned company that is one of Europe’s largest savoury snacks manufacturers. KP Snacks is the number two snack manufacturer in the UK. Foreign food and drink businesses have been showing an increasing interest in the UK and Ireland. Grant Thornton UK 3


Restructuring in Soft Drinks The British and wider international soft drinks industry is currently undergoing major restructuring through mergers and acquisitions. UK soft drinks producers Britvic and AG Barr have agreed to merge to create Barr Britvic Soft Drinks, which will be one of the leading soft drinks companies in

Europe, with annual sales of over £1.5 billion, a portfolio of strong brands (including Irn-Bru, Robinsons, Fruit Shoot, J2O and Rubicon), and significant prospects for future growth. Britvic shareholders will own 63% of the combined business with AG Barr shareholders the remaining 37%. The proposed merger is currently being examined by the UK Competition

The consolidation process within the UK dairy industry continued during the past 12 months.

points out that overseas acquisitions of food and beverage companies in the UK and Ireland doubled in 2012 – up from 7% of total deals in 2011 to 14% last year, with an increasingly large proportion of these predators coming from outside Western Europe. In addition to Bright Food of China, other notable foreign entrants into the UK food and beverage industry include Mizkan of Japan, which gobbled up Premier Foods’ vinegar and sour pickles business for £41 million, and French drinks group Remy Cointreau, which purchased Bruichladdich Distillery Company in a deal valued at £58 million to move into the premium single malt Scotch whisky market. In another deal, Zetar, the UK confectionery and natural snacks manufacturer, was acquired for £42.7 million by Zertus Group, a leading group of specialty food companies headquartered in Germany. Having purchased chilled foods business Daniels Group in late 2011, Hain Celestial Group, the US-based leading natural and organic products company, has extended its UK presence with the acquisitions of Premier Foods’ sweet spreads and jellies business for £200 million.

Simon Emeny, new chief executive of Fuller, Smith & Turner.

4

Company 1 (1) Unilever (Refreshment & Foods) 2 (2) Associated British Foods 3 (3) Diageo 4 (4) Kerry Group 5 (5) Tate & Lyle 6 (16) Boparan Holdings

Turnover

Pre-tax Profits

Ownership/Status

£19.82b £12.25b £10.76b £4.80b £3.26b £2.34b

£2.88b* £761.0m £3.12b £407.4m £309.0m £42.5m

7 (6) Glanbia 8 (-) ABP Food Group

£2.19b £1.8bE

£101.7m nd

9 (9) Coca-Cola Enterprises

£1.77b

£256.3m

10 (7) Premier Foods 11 (8) Irish Dairy Board 12 (14) Nestle UK 13 (10) Heineken UK

£1.76b £1.62b £1.61b £1.60b

£4.4m £17.1m £23.6m £350.9m

14 (11) Bakkavor Group 15 (13) Arla Foods UK

£1.59b £1.59b

£4.1m £31.1m

16 (21) Princes

£1.51b

£47.2m

17 (12) Dairy Crest 18 (17) MolsonCoors Brewing

£1.38b £1.38b

-£0.4m £47.2m

19 (18) Britvic 20 (15) AB InBev UK

£1.26b £1.24b

£77.5m -£4.5m

plc plc plc Irish co-op/plc plc Incorporating 2 Sisters Food Group – Independent Irish co-op/plc Formerly Irish Food Processors - Irish independent Coca-Cola Enterprises, US plc Irish dairy co-ops Nestle, Switz. Heineken, Netherlands independent Arla Foods, Denmark/Sweden Mitsubishi, Japan plc Molson Coors Brewing, US plc Anheuser-Busch InBev, Belgium

Source: KEY NOTE, company accounts. * operating profits. Eur = £0.82. Figures in brackets indicate previous year’s rankings.

FOOD & DRINK BUSINESS EUROPE, JUNE 2013


Commission and a decision is imminent. Meanwhile, Gerber Emig, which is headquartered in the UK, and Netherlandsbased Refresco have agreed to merge to create a leading pan-European bottler of soft drinks and fruit juices with combined sales of about Eur2.3 billion (£1.9 billion). Focused on juice and juice drinks, Gerber Emig’s private label production is complemented by contract manufacturing for branded players. It has volumes of about 1.5 billion litres and revenue of Eur801 million. Gerber Emig operates production plants in the UK, France, Germany and

Gavin Darby, chief executive of Premier Foods.

Simon Litherland, chief executive of Britvic.

Company

21 (19) Iglo Foods Holdings 22 (-) Mondelez Foods UK 23 (20) Karro Food 24 (32) Greencore 25 (24) Greene King 26 (23) United Biscuits (UK)

Turnover

Pre-tax Profits

Ownership/Status

£1.22b

-£69.9m

Permira

£1.22b

£16.9m

Kraft Foods, US

£1.17b

-£46.6m

Independent

£1.16b

£28.9m

plc

£1.14b

£125.1m

plc

£1.12b

£156.6m

Blackstone, PAI Partners

27 (22) Tulip

£1.11b

£33.8m

Danish Crown, Denmark

28 (28) Moy Park 29 (25) Hilton Food Group 30 (26) Carlsberg UK

£1.09b

£24.4m

Marfrig, Brazil

£1.03b

£24.7m

plc

£999.2m

-£3.1m

Carlsberg, Denmark.

31 (31) Cranswick 32 (33) HJ Heinz 33(30) Dawn Meats Group 33 (34) Mars Chocolate UK 35 (29) Robert Wiseman Dairies

£875.0m

£47.4m

plc

£829.9m

£180.9m

HJ Heinz Co, US

£820mE

nd

Irish independent

£788.7m

£99.8m

Mars, US

£779.8m

£7.6m

Muller Dairy

Poland. Refresco is a leading European bottler of soft drinks and fruit juices for retailers and branded players with production in the Benelux, France, Germany, Iberia, Italy, the UK, Poland and Finland. The company has volume sales of about 5 billion litres and revenue of Eur1.5 billion. The proposed merger is subject to the approval of competition authorities and is expected to be completed before the end of summer 2013. Iconic British and international soft drinks brands Lucozade and Ribena are being auctioned off by UK-based global pharmaceutical and healthcare group GlaxoSmithKline. The disposal is part of GSK’s efforts to reshape its business, improve strategic focus and enhance its growth profile. On the private label front, Cott Beverages UK has extended its domestic presence and diversified its product portfolio with the acquisition of Calypso Soft Drinks, including Mr Freeze (Europe), for an undisclosed price. Wrexham-based Calypso has a turnover of £38 million.

(UK)

36 (36) Samworth Bros Holdings 37 (41) Dunbia 38 (37) Marston’s 39 (45) William Grant & Sons Distillers

40 (46) Gerber Emig Group

£744.5m

£45.2m

Independent

£720m

nd

independent

£719.7m

-£135.5m

plc

£666.1m

£84.2m

Independent

£650.2m

-£2.2m

Quadrigo Holdings

Source: KEY NOTE, company accounts. * operating profits. Eur = £0.82. Figures in brackets indicate previous year’s rankings.

FOOD & DRINK BUSINESS EUROPE, JUNE 2013

Chris Thomas, chief executive of Tulip UK.

7


Further Consolidation in Dairy The consolidation process within the UK dairy industry continued during the past 12 months following on from the £279.5 million acquisition of Robert Wiseman Dairies, which processes and delivers more than 30% of the fresh milk consumed in Britain, by Muller Dairy (UK), .part of the Muller Group, the leading, family-owned German and European dairy group. Scandinavian dairy co-operative Arla Foods has since merged its UK operations with those of fellow co-operative Milk Link, the UK’s fourth largest dairy company. The Arla Foods UK and Milk Link combination has created the UK’s largest dairy business. Of course, Arla Foods UK is currently in the process of constructing a new £150 million fresh milk dairy at Aylesbury on the outskirts of London in England. When completed, the new dairy will process and package up to one billion litres of milk per annum. With the completion of the merger between Milk Link and Arla Foods, First Milk is now the only major dairy company owned by British farmers. First Milk supplies and markets 15% of the milk produced in the UK. Despite the challenging trading environment, the dairy co-operative is continuing to invest to increase its value added sales and reduce its reliance on commodity markets in order to improve returns for its farmer shareholders. For example, it recently invested £15 million at its Lake District Creamery to increase branded cheese production and to enable it to produce whey protein concentrate as part of its partnership with New Zealand dairy co-operative Fonterra. Dairy Crest, the leading UK-owned dairy foods company, is continuing to grow added value sales and improve efficiency across the business. Following the completion of its £341.1 million disposal of its St Hubert French spreads business in August 2012, Dairy Crest is now refocused on its UK operations. Continued Investment in Milk and Whisky A current feature of the Irish dairy industry is the major capital investment programmes being undertaken by the leading players in preparation for the abolition of the EU milk quota regime in 2015. Glanbia Ingredients Ireland, the newly created joint venture between Glanbia and Glanbia Co-op, has just commenced the construction of a new Eur150 million dairy facility at Belview in County Kilkenny. The development is the first greenfield primary dairy processing facility to be constructed in Ireland in over forty years. In order to facilitate the expected increase in milk production from its members, Dairygold, the Irish farmer owned dairy co-operative, is planning a phased

investment of Eur120 million over the next eight years to expand its processing capacity. In food ingredients, Kerry Group is investing Eur100 million in a new Global Technology & Innovation Centre in Ireland to serve the group’s customers within the ingredients and flavours sector. High Spirits Despite weak consumer confidence in many markets, export sales of Scotch whisky remain at record levels and producers are continuing to invest in additional capacity to meet anticipated future demand. Benefiting from the global growth of Scotch, the Irish whiskey industry is also experiencing a ‘renaissance’.

Scotch whisky distillers have committed to investment of £2 billion over the next few years. As the world’s largest Scotch whisky producer, Diageo is leading the way. The global drinks group is planning to invest over £1 billion in Scotch whisky production over the next five years to meet growing global demand for its brands. The second largest Scotch whisky producer, Chivas Brothers, has committed to investing £40 million a year in its operations, with a new distillery due to be built at Carron by 2015. Although much smaller in scale than the Scotch whisky industry, Irish whiskey is also expanding rapidly globally and attracting major capital investment in new capacity. Market leader Irish Distillers Pernod

Company 41 (42) Kepak 42 (43) Pepsi Cola International 43 (49) Chivas Bros

Turnover £615mE £615mE £610.1m

Pre-tax Profits nd nd £201.9m

44 (40) Dairygold Co-op 45 (44) Noble Foods Group

£599.6m £594.7m

£13.8m £11.9m

46 (-) First Milk 47 (47) Edrington Group 48 (50) Warburtons 49 (62) Young’s Seafood

£569.8m £556.1m £495.5m £457.7m

£13.3m £137.0m £19.6m -£26.9m

50 (52) Birds Eye 51 (58) Sun Valley Foods 52 (59) McCain Foods GB

£456.8m £442.5m £405.2m

£65.9m -£14.8m £48.8m

53 (54) C&C Group 54 (55) Lakeland Dairies 55 (60) Farmers Boy

£391.1m £387.8m £383.4m

£89.4m £6.5m £53.3m

56 (56) Heineken Ireland 57 (57) Muller Dairy (UK) 58 (61) Irish Distillers Group

£380.5m £372.0m £370mE

nd £36.1m nd

59 (65) Faccenda Group

£351.4m

£3.5m

60 (64) Burton’s Foods

£341.9m

£23.0m

Ownership/Status Irish independent PepsiCo, US Pernod Ricard, France Irish co-op Independent – formerly Deans Foods Co-operative Independent Independent Part of Findus Group – Lion Capital, UK Permira Cargill, US McCain Foods, Canada Irish plc Irish co-op W Morrison Supermarkets plc Heineken, Holland Alois Muller, Germany Pernod Ricard, France Hillesden Investments Duke Street Capital

Source: KEY NOTE, company accounts. * operating profits. Eur = £0.82. Figures in brackets indicate previous year’s rankings.

FOOD & DRINK BUSINESS EUROPE, JUNE 2013

9


10

FOOD & DRINK BUSINESS EUROPE, JUNE 2013


Northampton following a £60 million development programme, which culminated in the recent opening of a new £20 million bottling plant. In Ireland, Diageo is nearing the completion of its Eur153 million investment pro-

Martin Glenn, chief executive of United Biscuits.

Ricard recently invested Eur100 million to expand its distillery in Midleton, County Cork, to facilitate future growth. The company is also spending an additional Eur100 million in a new maturation site Scotch whisky distiller William Grant & Sons is planning to invest Eur35 million in a new, state-of-the-art distillery in Tullamore, bringing whiskey production back to the Irish town for the first time since the original distillery closed in 1954. William Grant & Sons entered the Irish whiskey market in 2010 with the £150 million acquisition of Tullamore Dew. Brewing Investment The UK’s major brewers are also investing heavily. Molson Coors UK & Ireland is undertaking a £75 million five years investment programme at its UK breweries, while Heineken UK is planning to invest £30 million across a number of its sites. Carlsberg UK has increased the capacity and flexibility of its brewery in

Company

61 (51) Bernard Matthews 62 (66) AarhusKarlshamn UK

gramme to create a brewing centre of excellence at its famous St James’s Gate site in Dublin. Although the overall UK beer market and particularly lager sales are in decline, the craft beer sector is experiencing a

Turnover

Pre-tax Profits

Ownership/Status

£341.4m

£2.0m

Independent

£340.9m

£22.2m

AarhusKarlshamn, Sweden/Denmark

63 (67) Meadow Foods 64 (68) The Cheese Company

£340.9m

£9.5m

Independent

£336.2m

£13.3m

Arla Foods, Denmark

65 (63) Weetabix 66 (69) Icelandic Group UK

£335.0m

£86.2m

Bright Food, China

£291.9m

£5.8m

Icelandic Group, Iceland

67 (71) Cott Beverages

£278.9m

£10.9m

Cott Corporation, Canada

68 (70) Fuller Smith & Turner 69 (-) Tata Global Beverages 70 (-) Walkers Snack Foods 71 (73) Foyle Food Group 72 (78) The Real Good Food Company

73 (-) Danone UK 74 (72) AG Barr 75 (86) Whyte & Mackay Group

76 (84) Wrigley Company 77 (77) Yeo Valley Group 78 (74) JW Galloway 79 (79) Dale Farm

£271.5m

£35.2m

plc

£261.0m

£18.4m

Tata Tea, India

£256.4m

£21.6m

PepsiCo, US

£240.8m

£4.7m

Independent

£240.0m

£7.0m*

plc

£240.0m

£27.6m

Danone, France

£237.6m

£31.8m

plc

£229.8m

£15.4m

UB Group, India

£229.7m

£56.3m

Mars, US

£228.7m

£3.6m

Independent

£218.4m

£1.0m

Independent

£212.0m

£1.6m

United Dairy Farmers Group

80 (85) Lactalis McLelland Siobhan Talbot will succeed John Moloney as group managing director of Glanbia at the end of

£209.2m

£5.3m

Lactalis, France

Source: KEY NOTE, company accounts. * operating profits. Eur = £0.82. Figures in brackets indicate previous year’s rankings.

2013.

FOOD & DRINK BUSINESS EUROPE, JUNE 2013

11


Fiona Kendrick at Nestle UK. Siobhan Talbot is due to succeed John Moloney as group managing director of Glanbia, the global nutritional solutions and cheese group, at the end of the year. Martin Glenn, formerly chief executive at frozen food giant Iglo Group, is the new leader at United Biscuits. His replacement at Iglo Group is Elio Leoni Sceti. Malcolm Eley has been appointed head of Icelandic Group UK following the move to combine the management of its three UK businesses – Seachill, Coldwater and Icelandic UK. Meat processors Tulip UK and Cranswick also have new chief executives with the appointments of Chris Thomas and Adam Couch respectively. J

David Forde, managing director of Heineken UK.

Elio Leoni Sceti, new chief executive of Iglo Group.

revival. According to CAMRA there are currently more than 1,000 breweries operational across the UK - the highest number for over 70 years - with a record 158 breweries having opened up in the space of just 12 months. Unprecedented Changing of the Guard The ongoing challenging business environment is reflected in the unprecedented number of changes in leadership of Top 100 companies during the past 12 months, with more than 10% of them appointing new chief executives. Ivan Menezes will replace Paul Walsh as chief executive of Diageo with effect from 1 July 2013. Other changes at the helm of Top 100 drinks companies include: David Forde at Heineken UK; Simon Cox at Molson Coors UK & Ireland; Simon Emeny at Fuller, Smith & Turner; Simon Litherland at Britvic; and Laurent Lacassagne at Chivas Bros. Two of the UK’s largest food manufacturers now have new leaders with Gavin Darby taking over at Premier Foods; and

Simon Cox, managing director of Molson Coors UK & Ireland.

12

Company 81 (80) Finsbury Food Group 82 (82) McCormick UK 83 (75) Coca-Cola Hellenic Northern Ireland

Turnover £207.4m £206.5m

Pre-tax Profits £6.5m -£0.6m

Ownership/Status plc McCormick, US

£205.4m

£3.1m

Coca-Cola HBC, Greece

£203.9m

£1.5m

85 (88) Ferrero UK

£184.6m

-£5.5m

86 (89) William Jackson & Son 87 (87) Wells & Young’s Brewing 88 (92) Menderley Food Group (Tayto) 89 (90) Tangerine Confectionery Group 90 (91) Innocent Drinks 91 (97) R&R Ice Cream UK 92 (95) Daniel Thwaites 93 (83) Dr Oetker UK 94 (96) Baxters Foods Group 95 (-) Dunhills (Pontefract) 96 (98) Shepherd Neame 97 (93) Zetar 98 (-) Pinguin Foods UK 99 (94) Yoplait UK 100 (-) Walkers Shortbread

£179.5m £169.2m £162.1m £156.6m £150.8m £137.8m £137.2m £137.0m £136.8m £135.7m £133.0m £128.3m £126.8m £117.2m £119.1m

£11.1m £3.4m £1.5m £0.03m £4.4m £22.6m £6.7m £19.1m £4.6m £16.0m £9.1m £2.9m -£9.8m £19.3m £8.9m

Barry Callebaut, Switzerland Ferrero International, Switzerland Independent Charles Wells Independent Independent Coca-Cola, US PAI Partners, France plc Dr Oetker, Germany Independent Haribo, Germany Plc Zertus, Germany Greenyard Foods, Belgium Yoplait, France independent

84 (76) Barry Callebaut Manufacturing

Source: KEY NOTE, company accounts. * operating profits. Eur = £0.82. Figures in brackets indicate previous year’s rankings.

FOOD & DRINK BUSINESS EUROPE, JUNE 2013


I SOFT DRINKS

Britvic Focuses on Cost Savings and International Expansion While awaiting the decision of the Competition Commission regarding its proposed £1.5 billion merger with fellow UK soft drinks producer AG Barr, Britvic has been focusing on improving its operational performance, using some of the savings to increase investment in developing its international business. lthough the Competition Commission has now provisionally approved the possible merger between Britvic and AG Barr, its final decision is not due until the end of July 2013. In the meantime, Britvic is pursuing its new strategy, under new chief executive Simon Litherland, and maintaining the trading momentum built up in the first half of its current financial year. In the first half ended 14 April 2013, Britvic reported strong profit growth with EBITA rising by 27.6% on the prior year to £53.6 million and EBITA margin up 180 basis points. However, sales rose by just 0.4% to £639.2 million.

A

GB and Ireland business unit with a single leadership team, and by separating its licensed wholesale from its core branded business. Britvic plans to close its Belfast warehouse in the fourth quarter of 2013 and to improve factory utilisation by the transfer of capacity from GB to Ireland. Britvic expects to deliver £25 million of the targeted £30 million cost saving by 2015. The cash cost to deliver these savings, net of property disposal proceeds in 2016, is £40 million. The initiatives to increase operational efficiency and to simplify the organisational structure will lead to an overall reduction in the headcount of between 10% and 15%.

New Strategy Britvic’s new strategy is designed to deliver annual savings of £30 million by 2016 through operating fewer manufacturing sites by redistributing capacity, reducing the cost base and improving asset utilisation. These measures include proposals to close two factories in Great Britain and a warehouse in Northern Ireland as well as the creation of a single GB and Ireland business unit. The two manufacturing sites at Chelmsford and Huddersfield are scheduled for closure in the first quarter of 2014. Britvic will fundamentally change its Irish operating model by creating a combined

International Growth Britvic plans to use some of the saving to increase investment in expanding its international operations and has earmarked £10 million for this purpose by 2015. “The new plan, underpinned by £30 million of cost savings, a proportion of which is to be invested in international growth, has now been communicated to our shareholders and has been well received,” says Gerald Corbett, chairman of Britvic. “We are totally focused on the execution of this and delivering on the vision of a growing, international and increasingly profitable Britvic. Our company is in a different place to last summer when the terms of the merger were agreed.” Gerald Corbett continues: “The cost savings from merging are less, we are performing better, we have new management and we have a new strategy to deliver good growth internationally as well as in the UK. These are among the issues the board will reflect on in August once the Competition Commission’s conclusavings of £30 sions are known in order to ensure that it acts in the best

Britvic’s new strategy is designed to deliver annual million by 2016.

FOOD & DRINK BUSINESS EUROPE, JUNE 2013

Gerald Corbett, chairman of Britvic.

interests of Britvic’s shareholders.” Merger Terms Under the terms of the original merger agreement to create Barr Britvic Soft Drinks, one of the leading soft drinks companies in Europe with annual sales of over £1.5 billion, Britvic shareholders would have owned 63% of the combined business with AG Barr shareholders the remaining 37%. This reflected the relative market capitalisation of the two companies prior to the merger agreement. However, the proposed deal lapsed once it was referred to the Competition Commission. Some analysts have interpreted the remarks by the Britvic chairman as an indication that the company intends to renegotiate more favourable terms regarding a merger with AG Barr or is prepared to remain independent. Meanwhile, AG Barr is continuing to grow revenue and volume well ahead of the UK soft drinks market in both the carbonates and still segments. During the 52 weeks to 26 January 2013, the company’s sales increased by 6.6% to £237.6 million and underlying pre-tax profits rose by 4.3% to £35.0 million. J 15


I DAIRY

Bright Outlook For Glanbia After Transformational Year 2012 was a transformational year for Glanbia, the global nutritional solutions and cheese group. n addition to producing record results in 2012, with revenue, profits, margins and dividends all rising for the third consecutive year and adjusted earnings per share up 22.1% to 56.56 cents, Glanbia also achieved a number of strategic goals. It invested Eur115 million in a number of capital projects and the acquisition of a nutritional ingredients business in the US to enhance the group's future prospects. The most significant move, however, involved the formation of a joint venture in Ireland with Glanbia Co-operative Society in order to expand milk processing capacity in preparation for the abolition of the EU milk quota regime in 2015. Glanbia’s Irish dairy processing business has now been transferred to the new joint venture company, Glanbia Ingredients Ireland (GII), which is 60% owned by the Glanbia Co-operative Society and 40% owned by Glanbia plc. Glanbia Co-operative Society has an option to buy Glanbia’s 40% stake within six years. In the process of forming the new joint venture, Glanbia Co-operative Society has reduced its shareholding in Glanbia plc from 51.4% to 41.4%.

I

Glanbia’s Irish dairy processing business has now been transferred to a new joint venture company, Glanbia Ingredients Ireland, which is 60% owned by the Glanbia Co-operative Society and 40% owned by Glanbia plc.

GII is Ireland’s leading dairy ingredients company – processing 1.6 billion litres of milk or 30% of Ireland’s milk pool into a range of dairy ingredients for export to more than 50 countries.

Glanbia has two well established nutritional platforms that cover both business-to-consumer and business-to-business nutritional products and solutions.

The formation of GII provides the opportunity for Glanbia Co-operative Society members to expand their dairy processing capability in preparation for the abolition of EU milk quotas in 2015, while allowing Glanbia to continue to focus on its successful international growth strategy. Glanbia already has a number of successful international dairy joint venture operations in the UK, the US and Nigeria. Leadership Changes To guide the reshaped business through its next phase of development, Glanbia has appointed a new group managing director. Present incumbent, John Moloney is to retire from this role and from the board by the end of 2013, having been due to retire in 2014. His successor is Siobhan Talbot, group finance director, who has just been appointed as group managing director designate to ensure a smooth transition of the leadership of the group. Siobhan Talbot was appointed group finance director and to the board of Glanbia in 2009. She brings a wide range of operational, financial and strategy experience to her new role. Siobhan Talbot joined the group in 1992, became a member of the group operating executive in 2000, and was appointed deputy finance director in 2005 and her role encompassed responsibility for group strategic planning until the end of 2012. She is a fellow of the Institute of Chartered Accountants in FOOD & DRINK BUSINESS EUROPE, JUNE 2013

Ireland. In line with the organisational changes, Glanbia has made two other senior appointments. Hugh McGuire has now joined the board as an executive director with responsibility for Global Performance Nutrition. Hugh McGuire joined the Glanbia in 2003 and has been chief executive officer of Performance Nutrition since 2008. Brian Phelan, who was appointed to the board on January 1, 2013 as an executive director is now taking up the role of chief executive officer of Global Ingredients, a newly formed business segment incorporating the US Cheese business as well as Global Nutritionals' Ingredient Technologies and Customised Premix Solutions. Brian Phelan was previously group development and Global Cheese director and joined the group in 1993. The appointments of Hugh McGuire and Brian Phelan into new organisational roles reflect the fact that today Glanbia has two well established nutritional platforms that cover both business-to-consumer and business-to-business nutritional products and solutions. The first platform is highquality sports nutrition with a leading global portfolio of brands and market positions. The second platform spans largescale cheese manufacturing and valueadded nutritional ingredient solutions. New Chapter of Growth “It is a credit to the group's succession planning that we have been able to appoint three very high calibre individuals from within,” says Liam Herlihy, chairman of Glanbia. “The board is confident that we have the right leadership team and skills in place as we enter an exciting new chapter

17


edge that we are in a stronger position than ever to capitalise on the competitive advantages we have today in high growth markets.”

Glanbia Ingredients Ireland has commenced construction of a new dairy at Belview in County Kilkenny. An artist’s impression of the Eur150 million dairy plant.

of global growth.” John Moloney comments: “I feel that after 12 years at the helm and over 25 years with the group it is the right time for all concerned to pass the leadership of Glanbia to someone new. I am delighted that Siobhán Talbot has been appointed as my successor. She brings a drive, energy, deep knowledge and commitment to her role that will move the group to the next phase of growth and development.” John Moloney continues: “Together with the appointments of Hugh McGuire and Brian Phelan into new organisational roles, this is a major step in further developing Glanbia as a global ingredients and performance nutrition business. I am very proud of what has been achieved by the group and will leave secure in the knowl-

Bright Outlook Indeed, Glanbia has started its current financial year strongly. Trading is in line with expectations and this trend is set to continue with growth driven by the US Cheese & Global Nutritionals segment and, in particular, Performance Nutrition. For 2013, Glanbia is forecasting adjusted earnings per share growth, on a constant currency basis, of between 8% and 10% for the full year. New €150 million Irish Dairy Meanwhile, Glanbia Ingredients Ireland has commenced construction of a new dairy at Belview in County Kilkenny. The Eur150 million project is the first greenfield primary dairy processing facility to be constructed in Ireland in over 40 years. All products from the new facility will be destined for export markets. The new factory is expected to begin production in spring 2015 and will supplement GII’s two existing processing facilities at Ballyragget in County Kilkenny and at Virginia in County Cavan. “Belview is a significant, strategic development for our business and an important

FOOD & DRINK BUSINESS EUROPE, JUNE 2013

step in realising our growth ambitions,” points out Jim Bergin, chief executive of GII. “All produce from the new facility is destined for an increasing number of regions including the Middle East, Africa, Central America and Asia markets, where we will supply a range of nutritional dairy based powders.” Belview will have the capacity to produce more than 100,000 tonnes of nutritional dairy powders per year, which will make it one of the largest plants of its kind in Europe. J

John Moloney is to retire as group managing director of Glanbia by the end of 2013.

19


I LABELS & LABEL APPLICATORS

Denny Bros – The Specialist in Multi-page Labels enny Bros Ltd is a leading D independent specialist print company and the originators of Fix-a-Form multi-page labels. Fix-a-Form multi-page labels allow for the communication of large amounts of text on-pack and provide the all-inclusive information for products, which can include multiple languages or to make marketing activities work, including cross-brand promotions. They work in synergy with the host-pack eliminating the need for major artwork changes to the original packaging which can be costly and time consuming. Fix-a-Forms are often used by brand-owners to supply additional information or run on-pack

Intelligent Labels Reduce Food Waste ndependent research institute ttz Bremerhaven is developing Ifood novel intelligent labels to monitor temperature abuse of frozen and oxygen content in modified atmosphere packaged products. Controlling the post production life cycle of food is an important element of food supply chains. Improper handling of the product during transport, storage and in households results in quality defects, increases the risk of microbial growth, subsequent spoilage and waste of edible food. The IQ-Freshlabel project develops Time Temperature Integrators (TTIs) to monitor temperature abuse of frozen food and subsequent quality loss of products. The researchers also work on the development of an oxygen sensor to monitor atmosphere modifications in MAP food. The implementation of novel smart labels is promoted through the investigation of consumers, retailers and industry expectations. According to ttz Bremerhaven, the quality and safety of food in the European supply chains could be improved by the use of intelligent labels leading to the reduction of food waste at all levels of the food chain. IQ-FRESHLABEL is a research project, partly funded by the European Commission in the 7th Framework programme. The project runs over 42 months (1st Aug 2010 to 31st January 2014) involving 17 partners from 9 different countries. J 20

FOOD & DRINK BUSINESS EUROPE, JUNE 2013

promotions which provide the benefit of quick or instant-access information. These custom built, on-pack marketing devices can boost sales uplifts, some reported to be as much as 25%. Denny Bros’ multi-page labels are used extensively in the food and drink industry as the supermarket environment is increasingly competitive and on-shelf presence is key to creating sales. With the rising costs of getting POS material into shops and food outlets, it has become much more critical to build a culture around the brand on shelf with on-pack ideas and the easiest way to make impulse decisions happen is to flag-up intelligentCRM messaging by using the multipage label concept Fix-a-Form. J


I RETAIL READY PACKAGING

Seeing is Believing: Are Brands and Retailers Being Honest About the Final Moment of Truth? he introduction of retail ready packagT ing (RRP) in the UK led to a wholesale rethink in the way brands and retailers displayed product on shelf. Coupled with the huge efficiencies and cost-saving benefits in terms of logistics and labour, it was quickly adopted by the biggest retailers in the market. But while the past ten years have seen RRP become the standard in many areas, transforming the humble brown box from transit container to on-shelf promoter, DS Smith Packaging’s Sector Director Tony Foster argues that for some brand owners, it may be time to reassess their RRP to ensure they fulfil its true potential. The Value of RRP “RRP was a complete game changer which was adopted very quickly as far as some producers and customers were concerned. “It involved a lot of rethinking in a short space of time and what has happened in that time is the focus has been on how it works for the operations and logistics areas of the supply chain. But there is less time spent on ensuring it is as good as it can possibly be on the shelf to attract the end consumer.

“Of course RRP delivers many benefits in logistics and operations in terms of space efficiencies, reducing carbon emissions due to fewer lorry movements, as well as cost savings in terms of labour as the boxed-up products are simply put directly onto the shelf.” Challenges For RRP “However, the question now is whether

shopping list more than ten per cent quicker when those products were displayed in RRP. Being able to show this to packaging and marketing professionals in practice has been tremendously powerful.” there should be increased focus on the very end of the process in order to maximise the full potential of RRP, also known as shelf ready packaging. “Our entire industry is built around bringing products to the shelf and inviting the consumer to choose one over the other, and to be drawn to that brand. The hours of manufacture, distribution and transport come down to that one single moment of truth, when your product has to be the best on show in order to attract the consumer. “Can it be said that everything is being done to ensure that critical point is being supported in the best possible way, with all the packaging and promotional tools available?” Innovation in Ely “This is one of the reasons why we have developed the Impact and Innovation Centre (IIC) in Ely. There is no more clear way to demonstrate these issues than to put it in front of peoples’ eyes, where it is instantly obvious what difference RRP makes to the entire look and feel of the product. “It’s at the IIC that we’ve partnered with eyetracker to carry out some pioneering research, literally looking at RRP through the eyes of the shopper to better understand how shoppers react with supermarket fixtures. “Test shoppers wear the eyetracker wireless HD glasses, which track and record exactly how their eyes move and where they look on supermarket shelves before making a purchase. In this way we have a clear idea of the factors that play in to this crucial final moment of truth. “The ultimate aim is to help DS Smith Packaging’s customers understand how to make the best use of RRP in order to make their products stand out against competitors on the supermarket shelf, enabling them to sell more. “Pilot tests have shown that shoppers found their first choice products from a FOOD & DRINK BUSINESS EUROPE, JUNE 2013

Future of RRP “We recognise that RRP is evolving and developing all the time. We have seen retailers taking more interest in it at the moment because the efficiencies in restocking the shelves means their staff on the shop floor can spend more time with customers. In that way they can up-sell and enhance the shopping experience.

Test shoppers wear the eyetracker wireless HD glasses.

“Over the next few years, it will be important to develop processes which allow the packaging industry to be more agile so that packs can be customised down to the level of specific stores. Further, there could be topical messages that are appropriate to the region, or for the retailer to promote activity around a particular date. “For example we could see more Wimbledon-specific packs for London SW1 in the months of June and July, or even Glastonbury Festival-inspired messages for stores in Somerset. “But what is really crucial for the immediate future of RRP is understanding how important it is to focus on that final step in the pathway to purchase. That is, when the consumer’s hand is hovering over the box and they are making their choice, understanding that everything has been done to ensure the product is being presented and promoted in the best possible way on the shelf. “Without that, none of the effort to get the product to that point will have been worth it.” J 21


I MEAT & POULTRY

Leaner Industry Faces Meaty Challenges Squeezed by escalating input costs and price sensitiveness by consumers, UK meat and poultry processors have been exploring new ways to improve efficiency in order to protect profits margins. he industry has undergone major restructuring in the past few months, following the break-up and sale of VION’s UK meat and poultry operations, and has also been impacted by the horsemeat scandal, which has put the spotlight on food provenance and traceability.

T

Market Trends The UK meat and meat products market, incorporating carcass meat; bacon and ham; poultry and other meat and meat products, grew by 1.8% in value terms in

2012, according to Key Note. However, this marked the market’s lowest growth rate over the past five years. The slowdown was due to consumers cutting back on their spending and buying cheaper meat options. Poultry is the largest sector in terms of volume sales followed by pork and beef. However, other meat and meat products (encompassing value added and processed meat products including frozen and canned) is the largest sector in value terms, currently accounting for approximately 41.5% of the total market, points out Key Note. Although meat remains a key component of the British diet, the economic crisis has impacted sales as consumers have downtraded in a bid to cut spending and this has been particularly evident in the lamb and beef sectors. By contrast, cheaper pork and

pork-based products such as bacon and sausages have prospered. Similarly, cooked meats are also popular, being used in home-prepared packed lunches by cash-strapped consumers. Trading Down The other meat and meat products sector increased the most in value terms during 2012, reflecting consumer demand for convenient meals solutions such as ready meals and other value-added products, along with a trend to The structure of the UK meat and poultry processing industry buy frozen meats has changed significantly following the decision by that are cheaper Netherlands-based food group VION to exit its UK operations. and offer longer shelf life than their fresh to support domestic farmers, price is the counterparts. over-riding factor when making a purchase. The consumer shift In addition to trading down, consumers are towards buying cheaper buying less food, including meat. meats has impacted on Supermarkets have responded by increasing Hilton Food Group. The the number of promotions to encourage leading specialist retail consumer spending, which has put further meat packing business margin pressure on farmers and meat supplying major interna- processors, already squeezed by rising input tional food retailers costs. across the UK and Europe has reported continuing pressure Improving Efficiency on consumer spending, with the economic Meat processors have attempted to protect backdrop and higher meat prices leading to profit margins by improving efficiency in further down trading to less expensive meat order to absorb rising input costs, which in cuts. the present trading climate are difficult to Although UK consumers express a desire pass on to customers and consumers. For instance, Cranswick, which has benefited from exploiting the ongoing popularity of pork and pork products like bacon, sausage and cooked meats with consumers, has achieved major operational efficiencies following significant investment in the business infrastructure over the past five years. This capital expenditure, totalling ÂŁ125 million, has been made on improving and expanding the primary processing, sausage, cooked meats and bacon facilities and most recently in develFOOD & DRINK BUSINESS EUROPE, JUNE 2013

23


Consumer trust in the food industry has dropped by (24%) since the horsemeat scandal broke.

oping a new pastry production unit. Despite the challenging trading environment, Cranswick has just reported a 7% rise in operating profit to £50 million on revenues up 7% (underlying sales up 5%) to £875 million for the year ended 31 March 2013. The pork processor has some of the best-invested and most efficient production sites in the UK. This has helped the group to protect its profit margins. Horsemeat Scandal Key Note predicts that the UK market will continue to grow year-on-year, rising in value by 8.9% between 2013 and 2017.

Growth will remain slow while meat industry, which broke in January the economic crisis persists, but 2013, are a timely reminder of how fragile its rate will increase as the econo- the supply chain in the food sector can become,” points out Adam Couch, chief my recovers. However, the meat industry has executive of Cranswick. “Integrated, tighter since been impacted by the horse- and more transparent supply chains are meat scandal, discovered in expected to be a feature going forward and January 2013, which immediately Cranswick has taken positive action in this undermined sales of meat prod- area.” The exact impact of the horsemeat scanucts such as beef burgers and beef-based ready meals. For the dal on consumer behaviour still remains four weeks ending 17 February, unclear. However, it will have short and frozen burger sales plummeted by long-term consequences for the meat and 43% and frozen ready meals poultry industry as it attempts to rebuild declined by 13%, according to consumer trust. a quarter Kantar Worldpanel. A survey by consumer watch- Major Restructuring dog Which? reveals that consumer The structure of the UK meat and poultry trust in the food industry has dropped by a quarter (24%) since the horsemeat scandal broke. 30% of shoppers are now buying less processed meat and a quarter (24%) are buying fewer ready meals with meat in, or choosing vegetarian options. Furthermore, two thirds of people (68%) do not think the government has been giving enough attention to enforcing labelling laws, with half of consumers (47%) not confident that ingredient information is accurate. Ranjit Singh Boparan, chief executive of 2 Sisters Food “The issues faced by the wider Group.

Contact Interfrigo Steeple Industrial Estate, County Antrim, Northern Ireland, BT41 1AB. Telephone: 028 9446 4599. Fax: 028 9446 4597 Email: info@interfrigo.co.uk To arrange a tour of our facilities contact Grace Dodds on 028 944 64599.

24

FOOD & DRINK BUSINESS EUROPE, JUNE 2013


processing industry has changed significantly over the past eight months following the decision, in November 2012, by Netherlands-based food group VION to exit its UK operations, encompassing 38 sites employing 13,000 people. VION entered the UK in the late 1990’s with the acquisition of Key Country Foods, followed by Tranfield and subsequently Grampian Country Food Group in 2008. VION’s UK pork division was sold to a management buy-out consortium in December 2012 for an undisclosed price. The deal was led by Seamus Carr, managing director of VION’s Pork Business Unit, and was backed by UK private equity firm Endless. Employing 4,000 people, VION’s UK pork business incorporated facilities located in Wiveliscombe, Malton, Haverhill, Scunthorpe, Hull, Stoke and Enfield in England, at Cookstown in Northern Ireland and the pig farming and feed mill operation in Scotland at Brydock, Aberdeenshire. The business has now been renamed Karro Food Group. “Our ambitions for the new business are firstly to maintain the excellent levels of service and product quality that have helped us secure orders from all the major supermarkets and then build upon the opportunities in the marketplace to grow the business,” says Seamus Carr. VION’s poultry and red meat processing businesses in the UK were subsequently sold to 2 Sisters Food Group, which is part of Boparan Holdings, again for an undisclosed sum. VION’s poultry and red meat businesses supply poultry, beef and lamb to the retail and food service sectors in the UK and Europe. Operating eleven processing sites in the UK and employing approximately 6,000 people, the business had suffered from challenging trading conditions, in particular in poultry, with the loss of a number of major contracts. 2 Sisters, which employs over 18,000 people and has annual sales of over £2.3 billion, operates from 42 sites in the UK, Ireland, India and Europe, supplying poultry, ready meals, sandwiches, salads, pies, pizza, fish, puddings, cakes and desserts, and biscuits. Its brands include Fox’s Biscuits and Goodfella’s pizzas. The acquisition is helping to meet growing demand from 2 Sisters’ poultry customers and further diversifies the group’s offering to include red meat, in line with 2 Sisters’ strategy of serving more meal occasions. Ranjit Singh Boparan, chief executive of 2 Sisters Food Group, says: “At 2 Sisters, we put the customer at the heart of everything we do and in line with our customers’ strategies, these businesses will help us to shorten the supply chain for consumers and meet growing demand for British sourced food. Our immediate focus will be to improve performance, as we have successfully done with our previous acquisitions.” 2 Sisters acquired UK convenience foods group Northern Foods for £342 million in 2011 to become one of the UK’s largest domestic food processors. J FOOD & DRINK BUSINESS EUROPE, JUNE 2013

25


MATERIALS HANDLING

I MEAT & POULTRY

Steel Belt Meat Conveyors Attract Growing Interest oncerns over food safety and environC mental issues are convincing more meat processing operations to weigh up the benefits of investment in stainless steel conveying systems, according to Sandvik Process Systems. The company, the worlds’ largest producer of stainless steel belt conveyors, has experienced a significant upturn in interest from meat processing operations due to the superior hygiene and cleanability of steel belts compared with other conveyor materials. While plastic belts require a lower initial investment, stainless steel is easier to clean and scientifically proven to be more hygienic. As well as reducing risk of bacterial growth, this also reduces consumption of water and chemicals in the cleaning process. “There’s real market interest in upgrading to stainless steel conveyor belts,” says Fabio Conti, Global Product Manager, Food at Sandvik. “Food safety is the number one reason but there are others. Processors are also looking to reduce the environmental impact of their operations, so the ability to clean faster and more efficiently is another reason to look more closely at steel belt technology.”

Easy Cleaning For Enhanced Hygiene A stainless steel belt is flat and smooth, meaning there are no hidden gaps, recesses or crevices in which bacteria could survive and reproduce. It is inert and impermeable, so it won’t taint food or carry tastes. And it is inherently easy to clean and sanitise by whatever method is most appropriate: heat, scrapers, brushes, detergents, chemicals or any combination of these. As Fabio Conti says: “Think of any environment in which absolute hygiene is critical, from food production to operating theatres, and the tools used are, for good reason, almost always made of stainless steel.”

This inherent cleanliness has been backed up by research carried out by Finnish food laboratory VTT Expert Services Ltd, clearly showing that bacterial build-up on meat processing lines can be reduced by upgrading to a stainless steel conveyor. The research looked at the cleanability of a stainless steel (AISI 301) conveyor belt, a solid plastic belt, and a plastic conveyor of slat construction, and the conclusion was that: “stainless steel is more cleanable than the two different plastic surfaces tested (and) the difference in is more significant for damaged surfaces.” Cleanliness isn’t just a health and hygiene matter either; it also impacts on costs. As well as low water consumption and reduced cost of cleaning chemicals or detergents (as much as 25% less), the ease with which a solid steel belt can be cleaned also means less downtime. Belts used in meat processing also have to be able to resist corrosive materials like blood, fatty acids and salt and will often operate in conditions of high humidity and varying temperatures. Again, the properties 26

FOOD & DRINK BUSINESS EUROPE, JUNE 2013

Fabio Conti, Global Product Manager, Food at Sandvik.

of stainless steel make it ideally suited to environments where the working life of lesser materials would soon be compromised. Complete Belt Solutions While steel belts are the company’s core product, Sandvik also supplies a complete range of conveyor systems and accessories. Engineers can advise on upgrade paths or optimum process layouts, and the company’s worldwide technical support network means that installations and commissioning can be carried out quickly and efficiently. The company has recently announced the development of a compact ‘Clean Conveyor’ unit that represents best practice in terms of hygienic food conveying. The new conveyor unit features a stainless steel framework designed to allow access for cleaning, with no narrow gaps or other hard-to-reach places in which dirt, debris and bacteria could otherwise collect. The framework is also designed to minimize the risk of water pooling after cleaning, reducing the possibility of bacterial growth. The stainless steel conveyor belt is ‘endless welded’ to eliminate any trace of a joint and its smooth surface means there are no hidden gaps or recesses in which bacteria could collect. All bearings are food approved and lubricated for life with food-approved lubricating grease. The motor is food-approved and has IP65 protection. J


I MEAT & POULTRY

Faster Packing For Non-uniform Foodstuffs AS SPrint Revolution™ - the speF cialist food bagging system from Automated Packaging Systems offers producers of irregular size, shape and weight food products a viable alternative to hand packing, substantially reducing packing costs and improving brand values. Malcolm Vale, Automated Packaging Systems’ food specialist explains: “Unlike form, fill and seal which, on the whole, is unsuited to packing heavy, fragile or oddlyshaped products, the SidePouch® system is designed so product can be placed into pre-formed bags securely, efficiently and with care.” System-matched Bags-in-a-Box™ are drawn along a horizontal track directly in front of the packers, and pre-opened ready for filling; an uncluttered work space and spacious bagging area means the system is suitable for individual and team packing.

After filling, the bags continue along a track to be band-sealed, separated and boxed for dispatch. The system can be configured to operate in fully- and semi-automatic modes with integration options including in-feed and exit conveyors, counters and

weighers. It’s built for reliability, even in challenging environments such as cold stores and packing sheds. FAS SPrint systems are corrosion-resistant, constructed from stainless steel and carefully designed to ensure easy, effective wash down. “Users of the system in the US list reliability, flexibility and quality among their top reasons for switching,” explains Malcolm Vale. “There’s no doubt, though, that low capital outlay and the substantial savings to be made on bagged unit costs make the decision easier. “Actual ROI data for a burger packing customer, for example, shows a 60% increase in production using 50% less labour.” For more information about the FAS SPrint visit www.autobag.co.uk or call customer service on 01684 891400. J

I MEAT & POULTRY

MPS and KJ Join Forces PS Meat Processing Systems has acquired KJ Industries. M KJ’s leading position in cutting and deboning and its advanced logistic solutions will further strengthen MPS’ market leadership position. MPS Meat Processing Systems is the global market leader in the development, production and installation of high technology slaughtering systems, Butina CO2 stunning systems and Durand carcass splitters. MPS is also a leading supplier of portioning, deboning and logistic processing of meat and food products and of industrial waste water treatment systems (AQUA Industrial Watertreatment). Remko Rosman, CEO of MPS,

comments: “We are very pleased with this move. KJ is the market leader for automated red meat cutting and deboning systems. KJ fits the MPS product portfolio very well and complements MPS’ position as global market leader for red meat slaughter lines. Also, KJ has excellent logistics solutions. Our clear objective is to grow KJ in size, quality product offerings and service capabilities, in order to serve our customers even better." Ulrik Gammelgaard, CEO of KJ, states: “The financial strength, global presence and innovation power of MPS will greatly benefit KJ and our customers. The range of complementary products and the strong access to the market enhance our mutual potential.” J

FOOD & DRINK BUSINESS EUROPE, JUNE 2013

27


QUALITY

& HYGIENE

I MEAT & POULTRY

TOMRA Sorting Investigates In-line Horse Meat Detection he recent discovery of unintended conT tent of horse meat in food products has sparked TOMRA Sorting Food to investigate if its unique transflectance technology could be adapted to detect the presence of horse meat mixed with beef. The QVision 500 analyzer is currently focused on the meat and protein sector, measuring fat/lean, protein, collagen and moisture with outstanding accuracy. The solution can also be adjusted to analyze by shape and temperature with all batches weighted and controlled. Research and testing are currently taking place to determine the accuracy of the solution in horse meat detection; all preliminary test results to date are very encouraging. “Initial testing has shown we can detect horse meat with a degree of accuracy, in addition to the normal functionality of inline fat analysis etc,” explains Matthias Gessner, Market Unit Manager Meat in TOMRA Sorting Food.

Engaging With the Meat Industry TOMRA now plans to engage with the meat industry to see how best to leverage this technology as part of future food safety procedures. The QVision system currently measures fresh or frozen meat, at any grind size (ground, diced, small trims), across the full width of its conveyor belt, with analysis penetrating as far as 20mm deep into the meat. “With its accuracy, price point, ease of

integration and ability to simplify production control, the system has the potential to make in-line fat analysis mainstream,” explains Matthias Gessner. “With the addition of horse meat detection and unrivalled capacity at 30 tons per hour this machine will become a must have for the meat industry.” The benefits obtained by investing in our new analysis solution are: • Lean meat savings; • Live in-line data; • Consistent high quality standards; • Supplier and batch control. Great effort has been made with the design of the QVision system to meet the high requirements of the food industry; the result is a very accurate and flexible solution. In addition it provides a fast return on investment and can easily be integrated into your line and existing IT systems. More information available with Matthias Gessner on Gessner@tomrasorting.com. J

I QUALITY ASSURANCE

Labcell Introduces Entry Level Water Activity Analyser abcell is introducing the new Decagon Devices AquaLab Pre L water activity analyser, an entry-level instrument that costs substantially less than the high-end AquaLab Series 4TE yet delivers higher performance than the pocket-sized Pawkit water activity meter. This fast, accurate and affordable instrument will create new opportunities for companies in the food industry that have previously been unable to justify the purchase of a water activity analyser. The new instrument will be useful throughout the food industry supply chain for quality assurance checks on ingredients and production, as well as in the development of new products and packaging. Because it is so easy to operate, clean and calibrate, the AquaLab Pre can be used by operatives with only minimal training. 28

In common with the higher-specification AquaLab Series 4TE, the AquaLab Pre uses chilled mirror dewpoint technology to make fast, accurate measurements. Measured values are indicated on an integral two-line alphanumeric display, and data can also be output to a PC and/or printer for storage and subsequent analysis. Labcell is the sole distributor for Decagon Devices in the UK and Ireland, and demonstration instruments are available for customers interested in seeing the new AquaLab Pre water activity analyser. For more information about this and other laboratory instruments for applications in the food industry, visit www.labcell.com, email mail@labcell .com or telephone +44 (0)1420 568150. J

FOOD & DRINK BUSINESS EUROPE, JUNE 2013


QUALITY

& HYGIENE

I FOOD TRACEABILITY

Collaborative Supply Chain Solutions from Zetes he current food fraud scandal, which is T affecting producers and retailers of many meat-based ready meals, perfectly illustrates the dilemma facing food manufacturers as they seek to offset rising costs with the need to operate a sustainable business. Market conditions require food manufacturers to produce quality food for the lowest possible prices, yet this commercial priority needs to be balanced with consumer demand for food provenance and safety. When Data Matters Longer, complex supply chains exist because they allow food manufacturers to source raw materials for the best possible

prices within a pan-European network of suppliers and traders. However this practice should not compromise food quality or safety levels for the consumer. Food manu-

FOOD & DRINK BUSINESS EUROPE, JUNE 2013

facturers wanting to ensure that something like the current horsemeat contamination crisis does not affect their own reputations, should be looking to real-time access to business critical product information in their supply chain operations. Cloud based track and trace solutions, linked to secure product identification, provide the perfect means for complete, immediate visibility of product and ingredient provenance, says Zetes. According to Marcel Kars, Senior VP Sales & Marketing at Zetes, retailers and manufacturers can achieve effective and efficient sustainability through collaboration. “Companies could be taking advantage of cloud based track and trace solu-

29


QUALITY

tions, which offer the ability to store product information virtually, creating a secure, real-time data repository of traceability information. Zetes believes that if suppliers, sub-suppliers and trading partners were obliged to store information relating to their raw ingredient sources and record product movements across the supply chain, manufacturers and retailers selling own branded goods would reduce food fraud in their own supply chains. This is because individual companies involved would be more accountable and easily identifiable.” Improved Transparency In turn, this would improve levels of security within the supply chain and build greater trust between the different partners. By stor-

& HYGIENE

ing information virtually in the Cloud, raw ingredients can be tracked all the way along even the most complex supply chains, literally from source to fork. For retailers, it also means recalls can be managed more easily and shelves cleared of exactly the affected stocks rather than having to take a blanket approach. Ultimately, if a supplier intentionally mis-labels ingredients there is little that can be done to prevent the practice. However what a manufacturer or retailer can do is insist that suppliers record the origins and movement of all products within the manufacturing chain and improve levels of transparency. There is no doubt that food supply chains have become more complicated and longer. Food manufacturers and retailers alike need

to effect a change within the industry to protect themselves and consumers from fraud. By holding data securely within a collaborative, cloud-based repository, makes it possible for a manufacturer to work in harmony with independent partners to quickly retrieve very specific product information. In doing so, the resulting improved traceability will enable improved product quality and safety, control grey imports and eliminate counterfeiting – ultimately protecting brand reputation and minimising the impact of product recalls for consumers, manufacturers and retailers. J

Nestlé Opens Most Advanced Laboratories in Industry to Study Harmful Pathogens in Food estlé has opened the most advanced N laboratories of their kind in the industry to study food-borne pathogens that are

refine the processes it uses to kill pathogens without destroying the nutri-

harmful to human health. The new facilities at the Nestlé Research Center in Switzerland will have a high level of 'biocontainment', meaning certain areas will be sealed with access restricted to trained personnel who must wear protective clothing and adhere to strict hygiene procedures. The company is using the most sophisticated scientific techniques available to

tional value of its food. “We constantly face familiar pathogens like salmonella, but there are newer threats as these pathogens evolve,” says Nestlé’s Chief Technology Officer Werner Bauer. “We have to stay one step ahead. The research done here will undoubtedly be a great asset for Nestlé, but we also have a responsibility to communicate and share the results with the scientific community and consumers, so everyone can benefit.” J

Leatherhead Opens DirtyLab – A New Facility For Pathogen Challenge Testing eatherhead Food Research has officially L opened its Pathogen Pilot Plant, otherwise known as DirtyLab. This new facility, with category II containment capabilities, allows Leatherhead to deliberately contaminate both conventional and new food products with pathogens in order to investigate the fate of such micro-organisms under selected processing conditions. Dr Wayne Morley, Head of Food Safety, Leatherhead Food Research, says: “DirtyLab aims to support and expand our existing capabilities for challenge testing by providing an environment that directly replicates a food production area, but without introducing risks to the commercial 30

production of food. It is an excellent facility for Members and clients to further ensure the safety of their products.” DirtyLab can be used to validate the effectiveness of methods, processes and equipment against known micro-organisms. There is a huge scope for projects of different types to be undertaken within the facility. A complex food process can be undertaken, for instance the manufacture of a charcuterie product, and the manufacturing process itself can be challenged, as well as the final product. On the opposing side of food production, the cleaning and disinfection process for specific equipment can also be validated; for FOOD & DRINK BUSINESS EUROPE, JUNE 2013

example, the cleaning methodology for drinks dispenser units can be assessed and evaluated. For food itself, products can be produced and stored in controlled temperatures and humidity conditions over the product shelf-life. DirtyLab also facilitates the verification of processing methods, preservatives and different packaging technologies on a pilot plant scale, which is a key area of Member interest. J


QUALITY

& HYGIENE

I FOOD SAFETY

Going Beyond Food Safety With Advanced Food Grade Lubricants perating conditions in food processing O plants present a number of challenges when it comes to lubrication. With increased scrutiny on the industry from consumers, media and regulatory agencies, it’s more important than ever for food processors to employ effective food safety procedures and use food-grade products within their facilities. What they’re finding, however, is that not all food safe products are created equal. It takes a tough foodgrade lubricant to be able to stand up to the increased wear and intense conditions within a food processing facility. “Operations managers deal with enough food safety related challenges without hav-

“Operations managers deal with enough food safety related challenges without having to worry about the effectiveness of the lubricants they’re using on their equipment.”

ing to worry about the effectiveness of the lubricants they’re using on their equipment,” says Christie Longhurst, Category Manager, Food Grade Lubricants, PetroCanada Lubricants. “Today’s food grade lubricants need to meet industry regulations AND be tough enough to stand up to challenging plant conditions, day in and day out.” So What’s the Solution For Today’s Food Processors? As Christie Longhurst explains, food safety should always be a top concern, but it doesn’t have to come at the expense of advanced food-grade lubricant performance. Petro-Canada’s full line of PURITYTM FG lubricants are specially formulated to meet and exceed food and safety regulations while providing industrial strength protection in even the most severe operating conditions. Collectively, PURITY FG lubricants deliver long lasting protection, wear performance, and when it comes to greases, high resistance against water washout. Petro-Canada Lubricants recently launched three new PURITY FG aerosol sprays, including: PURITY FG Penetrating Oil Spray, PURITY FG Silicone Spray and PURITY FG2 with MICROL TM MAX FOOD & DRINK BUSINESS EUROPE, JUNE 2013

Spray Grease. PURITY FG aerosol sprays provide a solution for lubricating hard to reach areas, allowing food processors to apply the same high standards of Plant tough, Food safe lubrication throughout their facilities. These new PURITY FG aerosol sprays were developed to spray as effectively when the container is held upside down as when it is held right side up, making application easier. PURITY FG lubricants fit perfectly into Hazard Analysis and Critical Control Points (HACCP) and Good Manufacturing Practice (GMP) plans. In addition, they carry a full set of food-grade credentials which include NSF H1 standards for incidental contact. Food manufacturers can get more information about the full PURITY FG product line at www.purityfg.com. J

“Today’s food grade lubricants need to meet industry regulations and be tough enough to stand up to challenging plant conditions, day in and day out.”

31


QUALITY

& HYGIENE

I FOOD SAFETY

State-of-the-art Food-Grade Lubricants Contribute to Economic Success he most recent lubricant developments T contribute to economical and successful plant and machine operation. With safety such a key consideration, we look at how safety, reliability and cost effectiveness are achieved. Regarding the lubricant as an investment in economic efficiency rather than just as a commodity, pays off in many ways. Of course, the price of the lubricant is a factor, but it is more important to look at the entire cost-benefit calculation of a given application. If synthetic high-performance lubricants tuned to the particular application are used, the total cost of operation decreases. Such lubricants help to save costs even though their purchase price is higher than that of standard lubricants as price is just the tip of the iceberg; hence the potential for cost savings can only be detected on a second look. There, hiding from first

sight, are the savings in down-time costs, maintenance, energy, spare parts, storage, disposal and of course lubricant consumption that speciality food-grade synthetic lubricants contribute to reducing. Bearing Lubrication When it comes to bearing lubrication, speciality greases ensure extended maintenance intervals. One such recent example is the water pump bearings on a pea processing production unit. The process lines wash and provide fresh garden peas to their 20 canning lines over the 3-month pea processing season; it is vital that processing can be almost continuous. In previous years, the bearings on the water pumps had been suffering from unreliability during use and failure of two or three of these bearings during the processing season had not been uncommon. Each failure resulted in 1.5 hours of downtime while the bearings were replaced and would halt the processing of up to 8 tonnes of peas or 25,000 cans, valued at over £10,000. The customer changed their currently specified white-oil based lubricant to the PAO-based Kluberfood NH1 14261, providing excellent water resistance and wear reduction characteristics that would enable longer bearing life. No bearing related failures occurred during the 2011 and 2012 season sav-

ing significant cost and time. Safety, Performance and Lubrication Life High performance lubricants registered to H1 and certified to ISO-21469 contribute significantly to equipment performance and safe production methods. At the same time, with the specification of the correct lubricant without compromise, substantial costs savings in lost production, personnel demands and materials can be made. Lubricants tuned to the application at hand help to avoid such costs and are instrumental for troublefree operation of plants and machines. Speciality lubricants also contribute to economic and environmentally-friendly operation. High-performance lubricants tailored to a particular application facilitate reliable low- or minimum-quantity lubrication while making efficient use of energy and therefore contribute to conserving resources. J

I WEIGHING & MEASURING

Free Webinar – Increase Productivity With High Performance Weighing and Measuring eighing and measuring are critical W for food manufacturing productivity in many process steps and applications. Effective selection of the right weighing technology, appropriate product inspection methods and simple data integration in your MES/ERP are key. Find out more by viewing METTLER TOLEDO's on demand webinar 'Increase Productivity with High Performance Weighing and Measuring. It outlines 14 areas that can be improved through adapting processes, selecting the right equipment and developing appropriate SOPs/calibration procedures. 32

Gain expert advice on: • How to reduce bad batches and ensure consistent product taste through traceable formulations; • Tools to increase profitability by minimising waste and product giveaway; • Speeding up manual portioning processes; • Selecting the right foreign body detection equipment; • Sustainable weighing precision via appropriate calibration and performance check procedures. Watch the free online webinar: www.mt.com/uk-ind-foodproductivitywebinar. J FOOD & DRINK BUSINESS EUROPE, JUNE 2013


I EXHIBITION

MEATUP Exhibition Open Date Draws Near

T

his year’s MEATUP exhibition on July 2nd and 3rd, which is sponsored by 21 major meat and food trade bodies, moves to the NEC in Birmingham and has been substantially expanded to accommodate more exhibitors, sponsors and visitors. Although branded as a meat trade show, in reality there is much at the two day presentation to interest the wider food processor, manufacturer, wholesaler or retail visitor, including equipment, packaging, ingredients, raw product and logistics, which will have a multitude of applications and uses. Exhibitors include major names such as Marel, Reiser, Multivac on the equipment side of the business and ingredients companies such as MRC and Raps UK. The Managing Director of Reiser UK, Ken Mossford, is one high profile exhibitor who is very positive about the coming show saying: “A great deal has been happening at Reiser and we want to support MEATUP and use this valuable opportunity to meet customers and potential customers to discuss ideas and production solutions, in what remains a demanding and challenging market. We see MEATUP as more than just an exhibition, and the organisers are really structuring a two day event which has many factors to it. It’s an outstanding networking opportunity for everyone at all levels and we are very excited about being part of it.” Multivac is another major name supporting the show and will be launching its new Processing Division and associated processing kit at MEATUP. Meat and poultry manufacturers and other food businesses will be able to see a range of fillers, depositors, for-

tor. We are really looking forward to the exhibition and I do hope VIP guests will take advantage of the facilities.” The Flava people - MRC - is another exhibitor who tried the launch show at Stoneleigh in 2011 and have booked for the mers, mincers/ grinders, mixers, emulsifiers, ovens, smokers and coolers on display amongst other equipment. Four major craft competitions will take place over the two days in the main arena and EBLEX will be staging its major marketing conference on 3rd July - day two of the event. For those arriving early a free bacon butty breakfast awaits morning visitors on both days sponsored by BPEX, and bonafide pre-registered visitors from

the food industry can claim free parking saving the £10.00 NEC charge. Entrance to the exhibition in hall 11 is free. This year Dawson Rentals is a sponsor at MEATUP and Rod Benham of Dawson Rentals comments: “We are really delighted to play our part at MEATUP this year and by sponsoring the VIP Premier Club Lounge it’s our way of saying thank you to the industry and showing our commitment to the food secFOOD & DRINK BUSINESS EUROPE, JUNE 2013

NEC presentation this July. Commercial Director Stewart Niven observes that an event of this type is an excellent way to bring suppliers and buyers together: “We are delighted to be participating at MEATUP this July,” he says, “there really is no substitute to meeting customers and potential customers face to face.” At the MEATUP New Product Development Centre MRC will be launching its brand new range, so visitors will have the opportunity to taste and tap into an idea that aims to bring a whole new wave of consumers to independent retailers and farm shops. The last word goes to Emma Cash the events organiser at YPL Exhibitions: “The MEATUP show really does have something for everyone and we are looking forward to a productive and busy two days at the NEC this year. I know that visitors from all strands of the meat and food sector will find MEATUP interesting and useful and, at a time when improving margins and keeping a tight hold on costs is so important, MEATUP provides a welcome networking opportunity for everyone.” To pre-register online and qualify for free parking and fast track entry at the NEC visit www.meatup.co.uk. For exhibiting enquiries call Angela Coffill on 01908 613323 or email angela.c@yandellmedia .com. J 33


I BAKERY

British Bakels Investing For the Future British Bakels, the specialist bakery ingredients supplier, is investing £2.5 million to upgrade its production site at Bicester in Oxfordshire, England.

B

ritish Bakels manufactures and distributes a wide range of ingredients, some of which are tailor made for industrial and in-store bakeries while others are specifically developed for the craft and food service sectors. Products are formulated to suit each market sector and British Bakels has well established sales and technical teams focusing on serving the particular needs of each sector. The first phase of the £2.5 million investment programme has entailed the installation of five new lines of plant and equipment. The second stage involves the introduction of a presentation bakery and an extension to the warehouse. The existing facilities occupy a 5.5 acre freehold site, the devel-

opment of which started in 1990. The site now comprises of a powder blending facility, a production unit for food ingredients in liquid and paste form and a 2,400 pallet space warehouse. The facilities are EFSIS accredited at the higher level and Soil Association approved for the production of organic products. Products can be packed in sizes from one kilo piping bags to road tankers. “Bakels is one of the few ingredients companies which invests heavily in the UK market,” says Paul Morrow, managing director of British Bakels. “This is because we continue to see opportunities and, as we are privately owned by a foundation with no external

People For Packaging – Premier Tech Chronos n 1 March 2013 the European O Business Unit of Chronos BTH was renamed as Premier Tech Chronos and is recognised worldwide for customised and innovative weighing, bagging, palletising and load securing solutions. Premier Tech’s Industrial Equipment Group (IEG) is the number one worldwide supplier of Industrial Flexible Packaging solutions and will from now on have a single common brand identity and signature in the marketplace. The move to Premier Tech Chronos follows a similar move a few years ago in North America and in Asia. Premier Tech Chronos offer manual,

34

semi-automatic, fully automated & turnkey solutions for bagging bulk materials in a wide range of industries including the Food, Feed, Chemicals, Minerals and Horticulture sectors. The company’s bagging portfolio includes: bagging, process & bulk weighers; open-mouth and valve bagging systems; FFS systems; filling systems for FIBCs / containers; robot, gantry, compact & high speed palletisers; and stretch hood load securing technology Premier Tech Chronos is a single point of contact for all of its customer’s packaging & material handling needs. Each piece of equipment is designed, manufactured & integrated in-house. Premier Tech has

FOOD & DRINK BUSINESS EUROPE, JUNE 2013

combined Chronos Richardson, BTH, Richard Simon, Howe Richardson, Forberg into today’s Premier Tech Chronos; offering more than a century of technical innovation, experience & expertise. As part of Premier Tech’s Industrial Equipment Group, Premier Tech Chronos is committed to bringing innovative and value-added solutions to its clients. As an international leader in high-tech industrial bag packaging and handling equipment, Premier Tech Chronos offers its clients complete and integrated systems enabling them to improve their efficiency and increase their financial performance. J


shareholders, all profits are ploughed back into the business to enable us to fulfill our ambitions, not just in the UK bur wherever Bakels operates.” Bakels Group Founded in 1947, British Bakels is part of the international Bakels Group, which was established by Dutch merchant brothers Bakels who registered the company in Amsterdam, Netherlands in 1904. However, it was Bernard J Bakels, the son of one of the founding brothers who took the group into ingredient manufacturing and led it into markets throughout the world. Now encompassing nearly 40 companies, Bakels Group is still a private business owned by a foundation established by Bernard J Bakels. The group currently operates manufacturing sites on all five Continents. Through Bakels companies and selected agents its products are available in more than 120 countries. Innovation The £2.5 million upgrade will allow British Bakels to produce an innovative range of ingredients and takes the company’s overall investment to more than £20 million since the 1990s. British Bakels has a strong track record of innovation. Product development is conducted in-house by a team of food technolo-

gists, bakery specialists and chefs. Full test bakery facilities are available both for product development and for use by customers to carry out their own development trials. In recent years, the company has pioneered the introduction of liquid bread improvers and dough conditioners. It has also successfully introduced RTU custards and tart jellies in convenient piping bags. Furthermore, British Bakels has developed a range of gluten-free products along with an award winning range of Organic ingredients. It has carried out extensive research into improving the quality of sandwich bread, and introduced a range of fudge icings based on the latest sugar technology. According to Simon Dawson, operations and engineering manager of British Bakels, the new facilities will allow the company to enhance its product range and the choice of pack sizes offered while improving quality assurance and customer service. Indeed, the company’s mission is to be the supplier of first choice for bakers and food manufacturers, based on R & D, technical support and customer service. The present investment programme will also enable improved allergen controls to allow the company to strengthen its standing in the fast growing gluten-free market. J

Matcon – The Specialist in Lean Processing Solutions atcon specialise in providing ‘Lean’ solutions for the hanM dling and processing of powders, granules, tablets and other solid materials using Intermediate Bulk Container (IBC) technology. By adopting a Lean approach, processing companies can reap the benefits of Make to Order Production and Reduced Inventory. This is achieved by "decoupling" our customer’s processes, allowing efficient "parallel processing" – several steps taking place in parallel rather than sequentially. The food sector faces many challenges with recipe changes and ever increasing product portfolios, ethnic demands, allergens and more stringent regulations. By applying Matcon’s ‘Lean’ principles and IBC technology, you can transform how you manufacture your products. Matcon are proud to have been selected by British Bakels to contribute towards their mission - to be the first choice supplier for bakers and food manufacturers, based on their R & D, Technical Support and Customer Service. Their investment in a new Matcon IBC System was seen as essential in order to provide better allergen control, enabling British Bakels to further develop their presence in the expanding gluten-free market. The IBC Mixer is the first in the UK to take advantage of Matcon’s intensifier mixing technology, giving British Bakels the capability to launch an enhanced product range with improved quality assurance and customer service. Reduced downtime for cleaning during recipe changeovers on the new system, when compared to their existing fixed mixing plants, means that their new products can be produced with much greater efficiency. For further information, contact Matcon on Tel +44 1386 769000 or visit www.matconibc.com. J

FOOD & DRINK BUSINESS EUROPE, JUNE 2013

35


I BAKERY

Small Cakes are the Icing on the UK Cake Market ew research from Mintel finds that volume sales of small cakes (139 million kilograms in 2012) have now overtaken large cakes (116 million kilograms in 2012), with a market share of 44% and 37% respectively. Mintel’s research on the UK cake market reveals that volume sales of small cakes grew by a tasty 19% between 2011 and 2012, to reach a market value of £492 million in 2012. But things have gone a little stale for large cakes, with volume sales shrinking by 3% over the same two year period (down from 120 million kilograms in 2011 to 116 million kilograms in 2012), with a market value of £390 million. And it seems there is further scope for growth in small cakes, as today, one in four (24%) British consumers who eat or buy cakes say they would like to see more cake sold in individual portions.

N

New Product Development Emma Clifford, senior food analyst at Mintel, comments: “The proliferation of sharing formats in other categories such as chocolate confectionery and biscuits has spurred cake manufacturers into action, with new product development in small cakes easily dominating the market, and sales in the sector enjoying an unrivalled boost in volume. The fact that the market share of small cakes - such as muffins and cake bars - has now exceeded that of the larger variety, reflects the role smaller cakes have forged in modern snacking lifestyles.” But while over the past couple of years Brits have gone crazy over cupcakes, Mintel's research reveals muffins are now getting a slice of the action. Indeed, over the

past two years, sweet muffins have enjoyed the sweetest growth rate in the cake and cake bar sector, with a 55% volume increase, up from 22 million kilograms in 2011 to 34 million kilograms in 2012, and market value increasing 9% over the same two year period to reach £61 million in 2012. In terms of consumer consumption, 51% of Brits have eaten pre-packaged cakes baked in-store (eg muffins), versus 47% who have eaten individual cakes (eg cupcakes, tarts). “The rapid growth in volume sales for sweet muffins can be partly attributed to the prevalence of mini muffins tapping into the bite-size trend and sharing occasions,” adds Emma Clifford. Rise of Home Baking But while small cakes and cake bars flourish, Brits are also increasingly turning to baking their own at home. Indeed, when asked the reason why they are not buying cakes and cake bars as often, one in five (20%) adults claim that they prefer to make their own cakes at home. Home baking in general has experienced something of a revival, driven by the economic downturn and the popularity of

36

FOOD & DRINK BUSINESS EUROPE, JUNE 2013

TV cooking shows, with market value up by 59% between 2007 and 2012 to reach an estimated £1.7 billion in 2012. Moreover, more than a quarter (75%) of bakers claim to enjoy baking, and around four in ten (41%) want to learn how to improve their baking. Manufacturers have been quick to respond to consumer baking enthusiasm. In the UK, launches of baking ingredients and mixes posted 100% growth between 2009 and 2012, and the UK now ranks second in Europe for new product launches in this category, accounting for 14% of all NPD activity in Europe in the category in 2012, just after Germany (17%), and ahead of France (13%), Italy (10%) and Spain (8%). Mintel’s research also shows that products such as ready-made pastries and prepared mixes and even ready-to-bake products are likely to appeal to time-pressed consumers, with 40% of new product launches boasting “ease of use” claims in 2012.

Purchasing Barriers Despite the high popularity of cakes - just 6% of Brits haven’t eaten cakes and cake bars in the last six months - health concerns and cost reasons remain high on the public agenda, topping the list of potential purchasing barriers. The biggest concern is the level of sugar and fat in cakes, noted by one in three Brits (34%), while 22% prefer healthier snacks (eg fresh or dried fruit and nuts). In terms of economic concerns, a third (32%) of consumers consider cakes and cake bars to be overpriced, with one in four (23%) saying this is an area they have cut back on to save money, this sentiment significantly higher among women (26% women versus 19% men). J


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

& &

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

Campbell Enters Premium Baby Food Category Campbell Soup Company has agreed to acquire US-based Plum Organics, a leading provider of premium, organic foods and snacks that serve the nutritional needs of babies, toddlers and children. ‘Plum’ is the number two brand of organic baby food in the US and is currently the fourth ranked baby food brand overall. Earlier this year Plum Organics commenced its international expansion with the acquisition of London-based Plum UK, a key player in the organic baby food category in Britain. Plum Organics generated $93 million in gross sales in 2012. Plum, started in 2007 by cofounder Neil Grimmer, has used rapid innovation to launch over 150 products for babies, toddlers and kids in the US and the UK. The financial terms of the Campbell acquisition were not disclosed. Baby food is a $2 billion category in the US. From 2010 to 2012, the premium and organic segments grew at an average annual rate of 43%. Denise Morrison, Campbell’s president and chief executive, says: “The acquisition will help deliver on our dual mandate to strengthen our core businesses and to expand into faster-growing categories and adjacencies. It represents another step toward our long-term goal of shifting Campbell’s center of gravity.”

Denise Morrison, president and chief executive of Campbell Soup Company.

Warburtons Acquires Giles Foods Warburtons, the UK’s largest bakery brand, has completed the purchase of Giles Foods, a leading speciality bread and pastry manufacturer. The investment, for an undisclosed sum, supports the strategy of diversi-

Shuanghui International and Smithfield Foods to Create Leading Global Pork Business

fication which is at the heart of Warburtons’ growth plan. With an annual turnover of £26 million, Giles Foods, which is also a family run business, produces unbranded baked products including garlic breads, dough balls, French and Italian breads, Danish pastries, tarts and buns which are sold to retailers, restaurants, pub chains and catering companies. The company produces 137 product lines and was established in 1977. It now employs 300 people across two sites in Milton Keynes and Warminster. Warburtons will run Giles Foods as a separate business, with the current management team remaining in place. Established in a grocery shop in Bolton in 1876 by Thomas and Ellen Warburton, Warburtons is now the UK's leading independent baker. Today the business is actively run by the fifth generation of the Warburton family - Brett, Jonathan and Ross Warburton.

Hong Kong-based Shuanghui International Holdings, which is the majority shareholder of China’s largest meat processor, Henan Shuanghui Develop ment, is acquiring US-based Smithfield Foods for $7.1 billion, including the assumption of Smithfield's net debt. Smithfield Foods is a $13 billion global food company and the world's largest pork processor and hog producer. Shuanghui chairman Wan Long comments: “Shuanghui is a leading pork producer in China and a pioneer in the Chinese meat processing industry with over 30 years of history. Smithfield is a leader in our industry and together we will be able to meet the growing demand in China for pork by importing high-quality meat products from the United States, while continuing to serve markets in the United States and around the world. The combination creates a company with an unmatched set of assets, products and geographic reach.”

Arla Foods Sells UK Dairy Plant Arla Foods has agreed to sell its Crediton Dairy milk drinks business to a management buyout team led by former Milk Link chief executive Neil Kennedy and former Milk Link group finance director Tim Smiddy. The sale of Crediton, for an undisclosed sum, was a condition required by the European Commission in giving approval for the merger in October 2012 of Milk Link, the British dairy co-operative and Crediton’s former owner, with Arla Foods. Crediton Dairy produces long life milk, long life cream, extended shelf life milk and flavoured dairy drinks and fresh bulk cream. It has a milk processing capacity of about 200 million litres and employs 117 people.

Flagship Food Group Closes Deal With Atlantic Foods Group Flagship Food Group of the US has moved into Europe with the acquisition of Atlantic Foods Group, a leading supplier and manufacturer of menu solutions to the UK food service market. With annual sales in excess of £50 million, Atlantic Foods serves many of the leading casual, delivery, and pub chains in the UK. The acquisition bolsters Flagships' international presence while adding an impressive lineup of food service products and customers. The combined business is expected to generate approximately $300 million in

FOOD & DRINK BUSINESS EUROPE, JUNE 2013

annual turnover, operating seven facilities in five time zones. Terms of the proposed transaction were not disclosed. Russell Maddock and Edward Baker will remain in their current capacities as chief executive and managing director, respectively, of Atlantic Foods.

Fuller, Smith & Turner Enters Cider Market UK regional brewer and pub group Fuller, Smith & Turner has entered the premium cider market through the acquisition of Cornish Orchards for £3.8 million. Established in 1999, Cornish Orchards operates production facilities at Duloe in Cornwall. The company’s flagship brand, Cornish Gold, will enhance Fuller’s drinks portfolio.

McCain’s Acquisition of Lutosa Approved, Subject to Conditions The European Commission has cleared the proposed acquisition of Lutosa of Belgium by McCain of Canada. Lutosa's activities overlap with those of the global market leader McCain in the production and sale of processed potato products, in particular frozen French fries. The clearance is conditional on the divestment of Lutosa's branded retail business in the European Economic Area (EEA). The Commission has concerns that the merger, as initially notified, would have reduced competition on the Belgian retail market for French fries and potato specialities. The commitments offered by the parties adequately address these concerns.

37


I MARKET FOCUS

Could Supermarket Own Brands be in For a Shock? K sales of supermarket ownU label products increased by 38.7% between 2008 and 2012, after observing year-on-year growth over the past 5 years, according to ‘Supermarket Own Brands’, a new Market Assessment from market intelligence providers Key Note, The continued economic downturn and a return to recession in early 2012 has fuelled growth across the own brand market in recent years, particular within value ranges, such as essential Waitrose and Sainsbury’s basics. Discounters, such as Aldi, Lidl and Iceland, have also enjoyed healthy growth in recent years, with figures compiled by Kantar Worldpanel, in the 12 weeks ending 20th January 2013, revealing that Aldi had observed the strongest growth over the past year, with its share of the market increasing by 0.6 percentage points between 2012 and 2013 to reach 3.1%. Ongoing economic pressures, combined with continued increases in food price inflation, has seen the cost of food rise by 32% since 2007, according to statistics compiled by the Department for Environment, Food and Rural Affairs (Defra). These factors have encouraged a

significant proportion of consumers to switch from branded goods to supermarket own-label ranges, in a bid to save money. Continued investment and new product development (NPD) across private labels has also helped to improve the quality and reputation of own-brand goods, which up to about a decade ago were often thought of as cheap and low-grade. Indeed, according to the results of an exclusive consumer survey conducted on behalf of Key Note in February 2013, almost 90% shoppers had purchased supermarket own brand food products over the past six months, while almost 60% had purchased own brand drinks. Further to this, over half (52%) of the respondents revealed that they had increased their purchases of supermarket own brands since the start of the economic crisis, in a bid to save

on their weekly grocery shop. Supermarket own brands are expected to continue to dominate the grocery market over the next five years, with the market share of such products expected to remain above 50% for the foreseeable future. However, it will remain to be seen how the industry deals with current problems, such as the horsemeat scandal, which has affected almost all major grocery retailers in the UK in recent months. Already, market figures are suggesting that sales of beefbased products, particularly ready meals and processed meat, have declined within supermarkets, with many consumers turning towards their local butcher or opting for meat-free alternatives instead. Furthermore, the return to economic growth following the double-dip recession could result in consumers turning back towards the well-known brands that they used to enjoy pre-recession, particularly as confidence and spending returns. Key Note’s 2013 Market Assessment, Supermarket Own Brands, is available to purchase from Key Note on 0845-504 0452, by e-mail at sales@keynote.co.uk or at www.keynote.co.uk, priced £575. J

No Let-up in Polarisation of UK Grocery Market he latest grocery share figures from T Kantar Worldpanel UK for the 12 weeks ending 9 June 2013 show continuing market polarisation with Aldi, Lidl and Waitrose all stealing share from the big four retailers. Aldi sets another all-time record share of 3.6% – an increasingly frequent occurrence for the retailer which has averaged 30% annual sales growth throughout 2013. Meanwhile, Lidl and Waitrose both hold on to their record shares of 3.0% and 4.9% respectively, with Waitrose recording growth of 10.4% – well over three times the market average. These performances have enabled Aldi, Lidl and Waitrose to exert continued pressure on the big four with share dips for Tesco, Asda and Morrisons. Only Sainsbury’s bucks the trend, increasing its share to 16.7% and 38

posting market-beating sales growth of 3.5%. Although Morrisons’ share continues to decline, the loss this period is the lowest for 2013 and indicates a small underlying improvement for the grocer. Fraser McKevitt, retail analyst at Kantar

FOOD & DRINK BUSINESS EUROPE, JUNE 2013

Worldpanel, comments: “The continuing polarisation of the grocery market poses a difficult question for the big four retailers – how to make their offer appealing in an increasingly squeezed market. Asda recently announced it is going toe-to-toe with Aldi on the price of fresh food and produce, demonstrating its growing concern with the threat from the discounter.” He continues: “Savvy shoppers are looking for a good deal, but Britain’s largest supermarkets should not lose sight of the other attributes consumers are looking for in their grocer – quality products, clear provenance and an enjoyable in-store experience. The big four will have to keep an eye on maintaining these standards, even when competing on price, to make sure that they offer genuine value for money and not just cheap goods.” J


Cargill Caramel Equilibre Brings Together Belgian White Chocolate and Real Dairy Caramel For the First Time argill has unveiled a new addition to C its chocolate portfolio: Caramel Equilibre, a double indulgence that brings together Belgian white chocolate with real dairy caramel in one unique and timeless product. Inspired by the warmth and enduring popularity of caramel, Cargill’s chocolate experts in Belgium have created a product that will help both chocolate manufacturers and retailers to create a guaranteed hit. Cargill’s Chocolate Marketing Manager, Brigitte Bayart, explains: “There’s been a spectacular increase in caramel ranges across food lines in recent years, and we know that consumers love the traditional, comforting taste of real dairy caramel. This insight makes us confident that Caramel Equilibre will breathe new life

into existing ranges, and become an exciting new ingredient for our customers’ research and development teams.” Thanks to its innovation capabilities, Cargill has created a distinctive chocolate, with taste and colour equalling dairy

caramel unlike other caramel-flavoured chocolate on the market. In addition, Caramel Equilibre offers a unique triple claim – it can be sold with a Belgian white chocolate, caramel, and salt claim on a finished product’s packaging. Brigitte Bayart continues: “The new colour and taste of Caramel Equilibre is a unique source of inspiration for our customers. This chocolate will be used to create limited editions of bars, biscuits, desserts and ice creams – and will become enduringly popular with consumers.” With the innovation of Caramel Equilibre, Cargill demonstrates its market insights and chocolate expertise, which will serve food manufacturers to deliver new chocolate experiences to their consumers. J

Pecan Deluxe Launches Bake-stable Fudge For Bakeries Worldwide eading European inclusions specialists L Pecan Deluxe Candy (Europe) has launched a new range of bake-stable fudge inclusions for cakes, cookies and muffins, and even cheesecake bases, providing new and unique texture and taste options for manufacturers, artisan producers and instore bakeries across the world. The fudge pieces are made from all-natural ingredients and are available in a range of sizes – 3mm, 6mm and 9mm – and an unprecedented choice of flavours including treacle, ginger, coffee, cola, blueberry, amaretto, strawberry, chocolate and caramel. Developed in response to significant customer demand, Pecan Deluxe’s bake-stable fudge is complemented by the simultaneous launch of an extensive range of flavoured sugar pearl sprinkles, perfect for topping any type of cake, bun, pastry – and of course many other applications such as ice cream and beverages. Pecan Deluxe sugar pearls are available in an unrivalled choice of more than a dozen natural flavours including strawberry, coffee, amaretto, ginger and lemon - unlike existing products which are intended primarily for decoration. In addition, both the bakestable fudge and the sugar pearls can be considered for bespoke flavour develop-

ment. These sugar pearls are much more than just sprinkles; they can also be added to cake and muffin mixes to provide a unique and delicious new combination of texture and flavour to standard recipes. A further advantage is their ability to be stored at ambient temperatures for up to 12 months. Pecan Deluxe’s production facilities in the UK and US ensure that even high-volume orders can be fulfilled rapidly with the option of staggered deliveries. Pecan Deluxe commercial director Graham Kingston explains: “Pecan Deluxe already has an impressive track record in supplying household name food manufacturers and food service outlets across the world with innovative ingredients to make an otherwise ordinary product into an extraordinary experience for the consumer. We plan to maximise our significant experience and expertise, particularly within the ice-cream and frozen desserts markets, to bring pioneering new solutions to the bakery sector. “UK households alone are spending around £5 billion on bread and bakery products. In Europe craft bakeries still FOOD & DRINK BUSINESS EUROPE, JUNE 2013

dominate the market, and across the world there is massive potential for manufacturers, bakeries and patisseries to gain a competitive edge by creating innovative and inspirational new tastes and textures. There is no other ingredient supplier offering the huge range of inclusions, fillings and toppings available from Pecan Deluxe. Add to that flexibility of product size, rapid turnaround and high volume capability and it’s a winning combination that will give creative bakeries the advantage in this increasingly competitive marketplace.” For further information contact Pecan Deluxe on Tel +44 (0)1977 681141 or visit www.pecandeluxe.com. J 39


I SWEETENERS

European Consumers Go Sweet on Stevia here has been a major surge in demand T for stevia sweeteners since being approved by the EU for use in food and drink manufacturing. Indeed, Europe accounted for a quarter of global new product launches containing stevia in 2012, according to Mintel. Furthermore, Mintel’s research shows, 55% of consumers in Germany, 47% in the UK, 45% in France, 26% in Italy and 22% in Spain would be willing to try products made using natural origin sweeteners. Stevia reduces calories with naturally sourced, zero calorie sweetness in a wide range of product categories from carbonated soft drinks to iced teas, juices and nectars, confectionery, sauces and dairy products. Calorie reductions mostly range between 30% to 50% though there are no-added sugar products now being sweetened by stevia and 100% sugar reduction in certain confectionery applications currently on the market. Global stevia supplier PureCircle has been at the forefront of this European market development both from a technical and marketing point of view. “As the world’s largest supplier of high purity stevia, PureCircle offers global expertise and market learning, which allowed us to develop formulation and positioning solutions with our customers in readiness for launch upon approval,” explains Sue Bancroft, Marketing Director, EMEA PureCircle. “We’ve continued to work with our customers by providing formulation expertise for optimal taste, advising on European regulations and identifying communication opportunities via our in-depth European consumer insight work.” From its European head office and technical laboratory in Reading, England, PureCircle can service all the major pan-

40

European companies with its specialist Sales, Marketing and Technical Application team. The company’s joint venture partnerships within the region ensure that the advantages and benefits of working with PureCircle can be realised by food and beverage manufacturers on a local and individual market level. Covering the southern region of Europe is a partnership with sugar company Tereos called Tereos PureCircle Solutions. PureCircle’s NP Sweet joint venture with Nordzucker covers the northern territory. These joint ventures not only bring PureCircle expertise to local markets but also provides an understanding of the synergies and benefits of sugar-stevia combinations and how to apply these to existing food and beverage formulations. Unequalled Range PureCircle offers an unequalled range of stevia sweetening solutions and natural flavours, which it is continually developing. Stevia is grown for PureCircle across five continents where it provides a sustainable cash crop for farming communities. PureCircle has led the industry with stevia innovation since it pioneered mass volume Reb A several years ago. Since then, the company has expanded its stevia ingredient portfolio to include breakthrough proprietary stevia ingredients and natural flavours. The company is supporting the growth of stevia use globally through its in-depth formulation research and development together with unmatched stevia expertise, sustainabilFOOD & DRINK BUSINESS EUROPE, JUNE 2013

ity practices and consumer insights work. PureCircle’s own fully-integrated supply chain, allows for innovation, scalability, and efficiency at every stage of stevia production. Stevia is not a one product solution, traditionally the market has referenced Reb A as the benchmark. PureCircle has moved beyond this approach and offers Reb A to customers as one of a range of proprietary stevia sweeteners. The company also offers natural flavours that can be used on their own or in conjunction with stevia sweeteners to enhance flavour and sweetness profiles. “The best tasting solutions are now being developed through this diversified range of PureCircle stevia products and our expertise in understanding how to blend these products to achieve optimal formulations; this enables us to offer our customers tailormade solutions according to product type, sugar reduction required and taste profile.” Sue Bancroft elaborates: “We call this next generation approach to stevia development Stevia 3.0™. This approach is ‘applied innovation’ and combines PureCircle’s portfolio of proprietary stevia ingredients and blends with formulation expertise established through years of stevia application research in the lab. Stevia 3.0™ offers tailor-made solutions that we develop with our partners and customers from across our portfolio and are suited to meet the formulation goal for that particular application.” Advantages and Benefits Using stevia offers major advantages and benefits for food and drink manufacturers. Stevia, as a zero calorie naturally sourced sweetener, is aligned with the global megatrends of health, sustainability and cost, while supporting great tasting formulations. “Stevia’s zero calorie, plant-based sweetness is both appealing and easy to understand,


addressing the increasing consumer interest in cleaner labels and natural origin ingredients seen in Europe,” says Sue Bancroft. She continues: “Many consumers are interested in a calorie reduction in their everyday food and beverages. Stevia has great synergies with sugar and can help manufacturers offer products with fewer calories without sacrificing taste and in many cases achieve reduced costs; this is a real benefit given current market trends as well as European governmental and economic pressures.” Current Market Trends Although Stevia-sweetened launches have been on the increase in Europe, development of the total natural sweeteners market is still in its infancy. According to PureCircle, stevia is the only viable natural origin sweetener that is scalable and can offer attractive prices for the food and beverage industry. Sue Bancroft comments: “Whilst there are alternative natural origin sweeteners being investigated and developed globally this will

take time. In Europe we continue to explore the potential of stevia. Our innovation continues and opportunities grow to respond to consumer demand - we are now seeing some successful 30% to 50% sugar reductions and PureCircle continues to pursue stevia solutions that will achieve greater reductions with continued taste improvements.” For example, in recent years, there have been a number of notable launches from major food and beverage companies that are using stevia as part of their sweetening solutions. These include Sprite’s total reformulation in France, the UK and Ireland, the brand extension of Pepsi Next with stevia in France, the launch of Trop 50 in the UK, and various iced teas, ketchups and dairy developments. Indeed, many major brands have launched stevia-sweetened products to reduce calories while offering great taste.

manufacturers. The company was the first in the stevia industry to measure and publish results of its carbon and water footprint from farm to sweetener and demonstrate that PureCircle stevia has a significantly lower environmental footprint than other natural sweeteners (high fructose corn syrup (HFCS), beet and cane sugar) based on publicly available benchmarks. Indeed, PureCircle has just expanded its sustainability program and set an ambitious 2020 goal to reduce carbon, water, waste and energy use across its supply chain from farm to sweetener as well as a commitment to reducing the calorie footprint in diets around the globe. “We aim to help our customers demonstrate the positive impact that including stevia as their sweetener of choice will contribute towards their own brand and corporate sustainability goals and in the fight against the rising rates of obesity within their markets,” Sue Bancroft concludes. J

Sustainability PureCircle’s well established sustainability strategy reflects the growing importance of this issue to both consumers and food and drink

I INCLUSIONS

Pecan Deluxe Launches Cookie Pieces For Ice Cream eading inclusions specialist Pecan Deluxe L Candy (Europe) has announced a delicious new addition to its class-leading range of ice cream inclusions – baked cookie pieces in a choice of flavours including ginger and double-chocolate. The latest addition is the perfect complement to the company’s celebrated and expanding range of cookie dough pieces which already feature in household name premium ice creams. Available in 6mm, 9mm and 12mm size variants, the cookie pieces – like all Pecan Deluxe products – are made entirely of natural ingredients. Produced in segregated facilities, the pieces are nut-free and can be supplied soft-baked and frozen or fully-baked for storage at ambient temperature. Trials have proven the success of the cookie pieces, particularly for inclusions and toppings in desserts for QSRs (quick service restaurants) and gastro-pub chains. They can also add value to an array of other

frozen desserts such as sundaes and gateaux and are ideal for manufacturers of quality ice creams and other chilled or frozen desserts. By far the biggest European supplier of cookie dough pieces, Pecan Deluxe made a significant investment in a new European plant last year which ensures that high-volume orders are always fulfilled. Available in 14mm and 19mm cylinders and 8mm

FOOD & DRINK BUSINESS EUROPE, JUNE 2013

cubes, the cookie dough pieces are a hit in natural, choc chip and double choc chip variants with several new fruit flavours currently undergoing trials – including raspberry/white chocolate, and cinnamon/apple – alongside mint. Pecan Deluxe commercial director Graham Kingston explains: “The continued success of our delicious range of cookie dough inclusions highlights the ongoing popularity of classic American flavour combinations - and Pecan Deluxe has expertly adapted these to meet flavour and texture requirements of customers all over the world. Grab a tub of premium quality ice cream from the supermarket freezer and there’s a good chance it will contain at least one of our delicious all-natural inclusions or toppings – and the same goes for desserts in high street quick-service restaurant chains.” For further information contact Pecan Deluxe Candy (Europe) on Tel +44 (0)1977 681141 or visit www.pecandeluxe.com. J 41


Innovative Packaging Machinery Manufacturer Reflects on 50 Years of Developments ackaging Automation celebrated P reaching its 50 year milestone on Friday 17 May 2013. The anniver-

of special purpose machines for household names in the 1960s and 1970s including Birds Eye, sary was a chance for Anthony Penn, Cadburys, OP Chocolates, T Walls, the Chairman and the founder’s son Warburtons and Richmond to reflect on the development of Sausages. The company was instrufood packaging and the advancemental in many of the key food ments in tray sealing technology durpackaging developments including ing the past 50 years. “We are proud the supply of machines to Marks and to be a UK manufacturer employing Spencer to seal the first pre-packed so many talented people and it is due sandwiches and Golden Wonder to to them and the company's constant pack Pot Noodles. innovation and development of new Recent new developments include products that we are here today to the first fully automatic, fully electric Arthur Penns’ sketch of the finger mechanism for transferring trays celebrate such a significant miletray sealer which offers massive savused in the design of the PA101 in 1963. stone.” ings through the elimination of the Arthur Penn, the company’s need for compressed air. founder, started the business from a work- in precise detail the machine’s operation. Today the company employs 90 people shop at his home in 1963 following a They are accompanied by the first outline and is well known within the food industry request from a friend to invent a machine to sketches which show the ‘finger mechanism’ for its specialist tray sealing and pot filling seal a plastic film lid onto a plastic food tray. for transferring the trays into the sealing area machines which are used to pack a vast The machine was christened the PA101 and of the machine. This technology is still used range of convenience foods. For further exhibited at the Food Packaging Show at not just in PA’s machines but in virtually all information please contact Packaging Alexandra Palace in October 1963. Recently automatic tray sealers worldwide. Automation on Tel +44 (0)1565 755000 or discovered hand written documents describe Arthur Penn, went on to invent a myriad visit www.pal.co.uk. J

42

FOOD & DRINK BUSINESS EUROPE, JUNE 2013


I HOT MELT ADHESIVES

Save Time and Money With Alphabond’s Perfecta Technology xtensive Research by adhesive supplier, E Alphabond has revealed that many food and beverage companies are missing out on the massive savings that can be achieved by utilising new adhesive technologies for modern packaging materials. Alphabond customers have reported adhesive usage savings of up to 53% when using its pioneering Perfecta technology. 44% of surveyed customers also said they switched to Alphabond due to the improved machine speed and increased uptime the company’s adhesives have helped them to achieve. Alphabond identified a series of challenges when using traditional hot melt adhesives with new packaging materials

A

charred/blocked

tank

caused

by

degradation of poor quality adhesive.

such as metpol, BOPP (Biaxially-Oriented Polypropylene) and grease resistant boards. Poor bonding performance was leading to lost opportunities to upgrade to higher performing or new lower coast packaging with adhesion to these materials ‘border line’ at best. Machine downtime was also widespread, with the inherent poor thermal stability of traditional hot melts causing the adhesive to degrade quickly, turn dark in the tank and cause blockages in the hoses and nozzles. This meant many companies were spending much more than necessary on replacement equipment parts, nozzles and heavy maintenance. Alphabond Technical Manager, David Pells, explains: “Our customers are often amazed when they start to measure machine downtime and realise that what they thought was only a few blockages a month is actually costing them thousands of pounds in lost production, cleaning and maintenance. “The real challenge was to develop a solution that not only gave excellent bonds first time but also eradicated issues caused by degraded adhesive. After extensive research and testing, our formulators have achieved this with Perfecta technology.” Formulated using the some of the latest technology, Perfecta is a high performance

A clean tank using Alphabond Perfecta technology.

range of hot melt adhesives. These adhesives have been designed to bond to virtually any packaging material and also to eliminate the problems associated with adhesive degradation, resulting in increased machine uptime and cost savings. The secret of Perfecta lies in the special raw materials used in its formulation. Selected for their extremely high heat stability, these are pure white, melting to water-clear in the tank, and retain their characteristics even after extended periods at high temperatures. To take advantage of a free sample, contact freesample@alphabond.co.uk or visit www.alphabond.co.uk for information. J

First ‘Tank-Free’ Hotmelt System Now Available in the UK and Ireland or packaging assembly and food processF ing, some operations are so crucial that you absolutely have to insist on total reliability. You want a system that is, in fact, so reliable that it’s invisible, just getting on with its day-to-day task quietly, efficiently and dependably. The new InvisiPac Tank-Free Hotmelt Delivery system is the first on the market for case and carton sealing, and it is now available in the UK and Ireland, distributed solely by KMS Adhesives offering hassle free operation on a consistent basis. Featuring ‘melt-on-demand’ technology and with a start up time of just ten minutes, it reduces char and its side effects, decreases nozzle plugging – which gains more uptime, cuts fumes from open tanks and helps to

avoid over filling tanks or split pellets, while effectively monitoring and tracking adhesive usage. Ideal for case and carton sealing operations InvisiPac solves the complex and costly problems associated with the traditional hotmelt systems that rely on a tank to bring adhesives up to a required temperature of FOOD & DRINK BUSINESS EUROPE, JUNE 2013

between 38 C and 204 C. The InvisiPac system monitors adhesive in the chamber and additional pellets are automatically added as needed, based on the demand of the application. With its efficient heat transfer design, adhesive throughput capability is equivalent to many hotmelt systems. The result is a continuous flow of adhesive during production that significantly reduces the time adhesive sits at high temperature. Less time at high temperatures means less char, less maintenance and more production time, but ultimately is means great cost savings and ultimate reliability. The KMS lease purchase package allows you to purchase a brand new tank-free melter system for a low monthly payment. Find out more at www.invisipac.co.uk. J 43


I UTILITIES

How to Get Safer, Energy Efficient and Higher Reliability Utility Systems or most food and drink companies, their F utilities plant is at the heart of their facility. Without utilities nothing gets produced. What do we mean by utilities? Typically, utilities incorporate steam, refrigeration, water and power systems. Utilities provide the energy and raw materials so the company can get their produce out the door. Managing utilities well is critical to selling good quality product, on time.

However utilities are becoming more complex. Utilities such as steam and refrigeration consume most of the energy used in a typical plant. As such, there is increasing pressure on companies to make their utilities more energy efficient in order to cut costs generally. Over the next ten years, with increasing demand for energy and EU objectives to cut carbon emissions by 20% before 2020, energy costs, when including carbon, are only going one way. Between energy, increasing legislation and a requirement for higher reliability, food and drink companies currently have a great deal on their agenda. Unfortunately these considerations are matched, if not exceeded, by core business requirements. In addition to significant competitive issues and increasing compliance requirements, processing plants have to run more efficiently, safer and produce better quality product. To address these pressures, successful

companies are focusing on their core business and inviting utilities specialists to manage their utilities. A partnership approach to this relationship is critical. One of the many advantages of using a specialist international utilities provider such as Dalkia is that they can bring global best practice to bear on your particular plant. Dalkia has recently captured some of that knowledge, based on years of international and Irish experience, and developed 3 White Papers on Reliability, Efficiency and Safety to share with Irish industry. Copies of these Best Practice White papers can be obtained free from Alan Keogh at alan.keogh@dalkia.ie or on Tel 01 870 1200. For further information visit www.dalkia.ie. J

I WATER

Branston Wins New Environmental Award ranston, one of the biggest potato supB pliers in the UK, is one of four companies to be the first to achieve a new international award for water reduction from the Carbon Trust. Branston was awarded the Carbon Trust Water Standard in recognition of the company's continued commitment to measuring, managing and reducing its water consumption. The recently launched Carbon Trust Water Standard is the world’s first international award for water reduction. Along with leading national and international organisations, Sainsbury's, Coca-Cola Enterprises and Sunlight, Branston took part in the initial pilot of the water standard, which has now been officially launched by the Carbon Trust to businesses all over the world. Vee Gururajan, IT and projects director at Branston, says: “Over the years we've invested in major initiatives to conserve our resources and create long-term sustainability. Back in 2008 we were the first food pro-

ducer to be awarded the prestigious Carbon Trust Standard for our work to reduce our carbon intensity.” He adds: “Water is a resource which is essential to our operations so we've made it a major focus of our environmental projects. We appreciate the independent endorsement of the Carbon Trust and are delighted to be one of the first companies to be awarded the Carbon Trust Water Standard in recognition of the ongoing and industry-leading work we are undertaking to manage and conserve our water supply.” Branston’s initiatives to reduce water consumption began at its Lincoln site, where the company worked closely with the local Environment Agency to assess its water use before investing in a state-of-the-art membrane bioreactor water recycling plant. The plant has reduced the Lincoln site’s mains water consumption by around 60 per cent as well as reducing the quantity and improving the quality of the effluent leaving the site.

44

FOOD & DRINK BUSINESS EUROPE, JUNE 2013

Branston was so impressed by the technology that it invested in a similar plant at its South West site in Somerset. This has also reduced water consumption by 60 per cent at the site, decreased effluent discharged and helped to relieve water stress in the local area. J


I WATER TREATMENT

New ECOSAVE Water Softening Unit Helps Marston’s Save Money and Protect the Environment ollowing a review of Marston's existing F softening plant and corresponding steel vessels, a series of upgrades were recommended and undertaken. A high efficiency EcoSave 450 softener solution was installed to replace the existing system. The EcoSave softener system is a volume controlled and counter-current plant, specifically selected for its reliable and economic operation. Using volume controlled plant ensures full capacity operation before an automatic regeneration is initiated. The systems are designed as fully automated duty and standby for 100% duty 24 hours a day. The counter current operation corresponds to the service and regeneration flows working in opposing directions resulting in significantly reduced salt usage when compared with a conventional water softener.

Benefits of the EcoSave Series include: • Highly efficient; • Significant water and salt usage savings; • Conductivity regeneration sequence control; • 100% duty operation; • PLC Controlled with touch-screen interface; • A simpler design; • Fewer components meaning less maintenance. Colin Walton, Senior Engineer at Marston's, comments: “The existing softener vessels had rusted throughout. The cost of repair would have been half the cost of this new replacement. An extra new bottling line increased soft water demand and made reliability even more important. The predicted cost savings are anticipated to be significant - approximately £15,000 per year, giving us a very attractive plant pay-

FOOD & DRINK BUSINESS EUROPE, JUNE 2013

back period. The saving is from the regeneration cycle using 30% less salt and less water going to drain. Puresep pulled out all the stops to order and install it within our two week annual shutdown.” Bill Denyer, Technical Services Manager, explains that “although installing new plant, particularly with a quick pay back is great, it doesn’t have to be about new plant. Any plant, including softeners or associated vessels, pipework and control panels can be upgraded and refurbished to ensure smooth running of all facets of a production line, thus reducing the risk of unexpected downtime.” J

45


If it sticks – Think Stikkit Labels!

tikkit Labels is a family owned company based in Westport, S Co. Mayo, which took the brave step of starting out in the middle of Ireland’s recession in 2007 and has gone from strength to strength since! With their 5 year anniversary fast approaching, and over 25 years of experience in label printing throughout the UK and Ireland, you can be assured that you have stability and enthusiasm in this exciting young company. With high quality machinery, Stikkit Labels produce full colour labels on rolls or sheeted format, with the option of a UV Varnish coating. In addition to the printed labels, they also manufacture blank labels or partially printed labels for overprinting by the end client. They can advise you on the best material options and offer design advice, and with over 1000 die cutters in stock, you should find a size to suit with specialist cutters available on request. As suppliers to the food/drink, cosmetic, pharmaceutical and retail industries, Stikkit Labels are ready to assist you and your business now! Just drop them a line with the details of your requirements to stikkitlabels@gmail.com or call (098) 25334. Visit the website for further details – www.stikkitlabels.com - “If it sticks…think Stikkit!” J 46

FOOD & DRINK BUSINESS EUROPE, JUNE 2013


I BAKERY

Cherry Blossom Bakery Starts to Bloom Based at Castlebar in County Mayo, Ireland, Cherry Blossom Bakery has progressed rapidly from a small, local, craft baker into a national player with designs on the UK market. herry Blossom Bakery was established in December 2010 by Simon and Siobhan Stenson after they identified a gap in the market for good quality artisan breads and confectionary made with natural ingredients, without additives or preservatives. The bakery has also created a range of products specifically for consumers who are coeliac or have a wheat intolerance. Having initially been started in the kitchen of Simon Stenson’s parents’ pub in Ballyvary, Cherry Blossom Bakery currently employs twelve people at its 10,000 sq ft purpose built bakery unit in Castlebar, which was opened in 2012. The enterprising company now supplies 100 stores locally but recently started nationwide central distribution with Irish retail group Musgraves. It is also due to commence central distribution with supermarket groups Dunnes Stores and Tesco in the coming months. Current year turnover is expected to exceed Eur1 million with a projected profit of Eur140,000.

C

Simon Stenson. “Also we get the expertise of Dragon Sean O’Sullivan and his team, who give generously with their time and ideas as well as advice for the business going forward.” Market Trends The company is benefiting from the present consumer preoccupation with healthy eating. “Consumers are more health conscious in current times and latest research shows the staple breads such as White Sliced Pan sales are on the decline in favour of a more healthy option. This trend is set to continue with more and more people becoming health aware,” says Simon Stenson. He adds: “With Spelt products being one of the healthiest options the market for Cherry Blossom is set to expand. We hope to add new products such as Spelt wraps and Spelt Pitta breads later on as the demand for Spelt products is set to increase.” Expansion Mode Cherry Blossom Bakery is preparing for its move onto the national stage by developing new products and redesigning its logo, packaging and labelling. The new livery has

Out of the Dragons’ Den Earlier this year, Cherry Blossom Bakery gained national prominence by appearing on the Irish TV version of the ‘Dragons’ Den’ programme, where it received fresh investment of Eur200,000 in return for a 40% stake in the company. The financial injection has made an immediate impact. “The investment has enabled us to expand into bigger premises and to purchase additional equipment which has made our move to nationwide distribution with Musgraves possible. It has set us up to approach other multiples now that we have the capacity to keep up with the demand which comes with nationwide sales,” explains Cherry Blossom Bakery founder Simon Stenson.

FOOD & DRINK BUSINESS EUROPE, JUNE 2013

been introduced on the company’s Spelt Bread range and will be extended across the full product range over the coming months. Cherry Blossom Bakery is raising its consumer profile through in-store tastings nationwide, initially with Musgraves and at a later stage with Tesco and Dunnes. The company is also continuing to exploit the publicity and nationwide exposure from its debut on the Dragons’ Den programme by using modern media. “We have had a great response on Facebook and Twitter in relation to the appearance on Dragons’ Den and we are keeping this up to date with developments in the company,” he points out. Cherry Blossom Bakery is currently engaged in R&D for new Spelt products which are due to be launched on the market in late summer 2013. “We will be nationwide with all the multiples in Ireland by the end of 2013, and expect to expand into the UK market by early 2014,” Simon Stenson concludes. “Our aim is to push our brand awareness and maintain our high quality products.” J 47


MATERIALS HANDLING

I CONVEYORS & CONVEYOR BELTS

New Conveyor Systems Demonstrate Flexibility and Potential of MiniTec Profile System he recently launched WF 3000 Spiral T Conveyor and the UMS Pallet Circulation Conveyor are examples of the flexibility and adaptability offered by MiniTec's Profile System machine building component range. Both systems are aimed at high throughput materials handling; the WF3000 is used to transport products between differing conveyor line heights whilst the UMS is a double-track chain conveyor with fixed, product customised pallets that circulate above and below the conveying level. With floor space in high throughput production processes frequently fully utilised and conveyor lines needing to run through multiple sections, there is often a need to convey products not just over long distances but also to transport them up and down to cater for different line heights. The new MiniTec WF 3000 Spiral Conveyor provides a lift height of up to three metres and a

MiniTec’s WF3000 Spiral Conveyor.

48

MiniTec’s UMS Pallet Circulation Conveyor.

conveying distance of up to 50 metres in a floor area of around three square metres, and also serves as a storage and production buffer for conveyed items. The spiral conveyor’s modular conveyor track has up to 15 sections with a width of 240 mm. The height distance between each single section is just 200 mm, maintaining a low incline angle which helps to safeguard against load slippage as well as contributing to the overall compactness of the assembly. The WF 3000 has an inlet height of 800 mm and an output height of 4000 mm. The variable conveying speed of 5 to 50 m/min allows for very flexible regulation during material flow considering the transport load of up to 3000 N. Despite its considerable conveying capacity and large buffering potential, the outer dimensions of the unit maintain a compact footprint of just 1600 x 1600 mm and an overall height of 4500 mm. MiniTec's UMS pallet circulation conveyor also requires minimum floor space for its function of interlinking various types of processing machines or for loading goods to robot cells. The re-circulating chain design serves as both carrier and drive unit for the system. The off-loaded pallets are turned vertically by an interlocking gripper with return transportation hanging beneath the conveyor. The system can also be used as an overhead suspension track, returning empty pallets at the top level. Pallet accumulation is possible on the conveying level as well as on the return. The UMS pallet circulation system is designed for 400 to 600 mm wide pallets FOOD & DRINK BUSINESS EUROPE, JUNE 2013

with a length of 100 to 300 mm in the conveying direction. For standard range applications, the maximum installation length is 20 metres and the maximum load capacity is 100 kg per pallet. The allowable load of the complete unit is 1.2 t with a conveying speed of 6 m/min or 0.8 tonnes at 12 m/min. Both of these examples take full advantage of the high-quality modular machine building components that are readily available in its modular Profile System range. Customised systems can include additional automation features such as motion controlled or sensor controlled electric or pneumatic actuators, or simple construction items such as screens, wheels, doors and guards etc. MiniTec's range of conveying and parts handling solutions has been extended considerably through acquisitions in recent years and now includes solutions for many different materials processing applications. The product line includes heavy-load roller conveyors, belt driven conveyors, roller and accumulating roller conveyors as well as comprehensive assembly systems like the heavy duty RMS series or the FMS flexible assembly system. MiniTec's team of experienced engineers are on hand to support customers during project planning, and implementation of all conveying systems. For further information contact MiniTec UK on Tel +44 (0)1256 365605, Fax +44(0)1256 365606 or visit www.minitec.co.uk. J

The UMS Pallet Circulation Conveyor showing machine base construction using MiniTec Profile System and drive components that can be adapted to suit the application.


Profile for Colin Murphy

Food & drink business europe june 2013 issue  

52-page magazine

Food & drink business europe june 2013 issue  

52-page magazine