Food & drink business europe october 2015

October 2015

ABP Food Group beefs up its operations

Food & Drink Business Website:

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C o n t e n t s

- 3 M ERGERS & A CQUISITIONS

- 41-45 B EVERAGES

Coverage of British and international deals.

BrauBeviale 2015 - The fair that connects.

BrauBeviale 2015 Previews.

- 4 T OP C OMPANIES String of acquisitions makes Boparan the UK’s largest grocery supplier.

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Giles Turrell, CEO, Weetabix.

- 51-55 I NGREDIENTS Food Ingredients Europe 2015 – Previews.

P AGE 23

Jan Hermans, Secretary General, AIJN.

R EGULARS - 7 & 11 C ONFERENCE & E XHIBITION

Information Technology . . . . . . . . . . . . . . 17

How to scale a food & drink business Food & Drink Business Conference & Exhibition.

Lessons for starting up a food business of scale.

Bottling & Packaging. . . . . . . . . . 17-21 & 39 Processing & Manufacturing. . . . 25, 28 & 45

PAGE 27

Hans Roelofs, CEO, Refresco Gerber.

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Ranjit Singh Boparan, CEO, Boparan Holdings.

Quality & Safety . . . . . . . . . . . . . . . . . 29-32 Materials Handling . . . . . . . . . . . . . . 40 & 44

- 13 C OVER S TORY

Energy & Environment. . . . . . . . . . . . . 46-49

ABP Food Group beefs up its operations.

Materials & Ingredients . . . . . . . . . . . . 51-56

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Carlos Brito,CEO, AB InBev.

- 23-25 F RUIT J UICE Managing Director: Colin Murphy Editor: Mike Rohan

European fruit juice and nectars industry feels the squeeze.

Mixed flavour juice growing in troubled global juice market.

Group Operations Manager: Sylvia McCarthy Advertising: John Bent, Ian Stewart & Rachel Howard

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Production Manager: Sylvia McCarthy

Aidan Cotter, CEO, Bord Bia.

Food & Drink Business Europe is published by Premier Publishing Limited, 51 Parkwest Enterprise Centre, Nangor Road, Dublin 12.

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- 27 S OFT D RINKS Refresco Gerber set for further expansion.

- 35 B REWING

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AB InBev swoops for SABMiller.

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Paul Finnerty, CEO, ABP Food Group.

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M E E R R G G E E R R S S M AB InBev Makes Approach to SABMiller Anheuser-Busch InBev, the world’s largest brewer, has confirmed that it has made an approach to SABMiller's board of directors regarding a combination of the two companies.

Such a deal would merge the two biggest players in the global beer market. AB InBev's intention is to work with SABMiller's board toward a recommended transaction.

Under the UK Takeovers and Mergers Code, AB InBev must announce a firm intention to make an offer for SABMiller or announce that it does not intend to make an offer by Wednesday 14 October, 2015.

This deadline will only be extended with the consent of SABMiller and the Takeover Panel.

Asian Private Equity Firm Invests in Weetabix Food Company Baring Private Equity Asia has acquired a 40% stake in Weetabix Food Company, the UK-based manufacturer of cereals and cereal bars. Baring Private Equity Asia will work in partnership with Bright Food, the controlling shareholder of Weetabix, to drive expansion in China. Bright Food is one of the largest state-owned food manufacturing companies in China. The terms of the transaction were not disclosed.

Weetabix is the largest breakfast cereal brand in the United Kingdom with a global footprint spanning Asia, Europe, the Middle East, North America and Africa. Its family of brands includes Weetabix, Alpen, Ready-brek, Weetos, Oatibix and Alpen cereal bars. Weetabix products are exported to 87 countries in Asia (including China), Europe and the Middle East.

Baring Private Equity Asia is one of the largest and most

& &

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

established independent private equity firms in Asia and advises funds that manage more than US$9 billion in committed capital. The firm has been investing in Asia since its formation in 1997.

Jean Eric Salata, founder and chief executive of Baring Asia, comments: “Weetabix is an established and profitable brand in the UK, and is well positioned to take advantage of the strong consumer demand in China for high-quality and nutritious food products. We look forward to partnering with Bright Food, one of the largest food and beverage manufacturing companies in China and its vast nationwide distribution network, to expand Weetabix in China.”

Giles Turrell, chief executive of Weetabix, comments: “We are an established leader in the UK breakfast cereal market with an aim to become a globally recognised brand. With continued backing from Bright Food and this investment from Baring Asia, we now have an even greater opportunity to strengthen and expand the Weetabix brand internationally.”

Giles Turrell, chief executive of Weetabix.

Kellogg Company Expands Presence in Africa With $450 Million Deal Kellogg Company has agreed to acquire a 50% stake in Multipro, a premier sales and distribution company in Nigeria and Ghana, for about $450 million and has simultaneously formed a new, long-term partnership with leading food company Tolaram Africa, significantly increasing Kellogg's presence in the growing African market and advancing the com-

John Bryant, chairman and chief executive of Kellogg Company.

pany's breakfast, snacks and emerging market strategies to drive future growth.

The joint venture between Kellogg and Tolaram Africa will develop snacks and breakfast foods for the West African market. Kellogg also now has the right to acquire a stake in Tolaram Africa Foods (which owns 49% of Dufil Prima) in the future. Dufil Prima manufactures and markets several leading food brands, including Indomie noodles, which are often consumed at breakfast, as well as Minimie snacks, Power oil and Power pasta.

"As a region that is experiencing explosive growth, with a population of almost one billion people and an economy that is expected to more than double over the next 10 years, SubSaharan Africa provides tremendous opportunity for our company," explains John Bryant, chairman and chief executive of Kellogg Company. "This partnership is an excellent strategic fit for Kellogg."

General Mills to Sell Green Giant to B&G Foods US-based food group General Mills has agreed to sell its Green Giant and Le Sueur vegetable businesses to B&G Foods for $765 million in cash. General Mills will continue to operate the Green Giant business in Europe and select other export markets under license from B&G Foods.

The sale reinforces General Mills' strategic priority to shape its portfolio for growth, focusing its resources on the brands, categories, and geographic mar-

FOOD & DRINK BUSINESS EUROPE, OCTOBER 2015

kets that have the greatest future growth opportunities.

The Green Giant and Le Sueur businesses included in the proposed transaction, comprised of the US, Canada, and select other markets, generated annual net sales of $585 million in fiscal 2015. The transaction, which is subject to regulatory approval, is expected to close by the end of the calendar year.

General Mills expects to use the net proceeds for share repurchases and debt reduction.T

Real Good Food Completes Sale of Sugar Business Real Good Food has completed its disposal of English sugar distributor Napier Brown Sugar to Tereos, the leading player in the French sugar market and the world’s fifth largest sugar company.

"The total consideration for the sale of Napier Brown is £44.4 million,” says Pieter Totté, executive chairman of Real Good Food. “The deal has significantly altered the financial platform from which the company can now operate. We have positive cash balances and are cash generative and profitable.

We look forward with great optimism."

Real Good Food is a UK diversified food business serving a number of market sectors including retail, manufacturing, wholesale, food service and export. The company focuses on three main markets - cake decoration (Renshaw, Rainbow Dust Colours), food ingredients (Garrett Ingredients and R&W Scott) and premium bakery (Haydens).

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I TOP COMPANIES

String of Acquisitions Makes Boparan the UK’s Largest Grocery Supplier Boparan Holdings (parent company of 2 Sisters Food Group) has seized the top spot in OC&C’s Food & Drink 150 rankings, becoming the biggest food and drink producer in the UK. string of acquisitions - including household names like Goodfella’s Pizza, Fox’s Biscuits and Matthew Walker Christmas Puddings – has helped the company to quadruple its revenue in five years.

Now in its 27th year, OC&C’s Food & Drink 150, in collaboration with the Grocer, is the only sector-wide analysis of the financial statements of the top food and soft drinks firms in the UK, ranking companies by revenue.

Between 2010 and 2014, Boparan climbed from 20th place to number one in OC&C’s rankings, with revenue increasing from £838 million to £3.36 billion in the same time period. In 2014, the company grew its protein business by 30 per cent year on year. As a result of Boparan’s meteoric rise, after five years as the UK’s largest grocery supplier, Associated British Foods’ grocery division has been pushed into second place, despite aggressive cost-cutting helping the company to achieve a 30 per cent increase in operating profit.

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In 2014, Boparan grew its protein business by 30% year on year.

Boparan’s stellar performance has enabled the company to buck the trend of an otherwise depressed sector, where intense competition among the grocers has had a knock-on effect on producers’ revenues. The average rate of revenue growth slumped from 5.8 per cent in 2014 to just 2.9 per cent this year.

Revenue Growth at Historic Low Will Hayllar, partner at OC&C Strategy Consultants and author of the report, says: “Changing shopping habits, supermarket price wars, and the continual rise of discounters’ share of the market in the UK 4

Ranjit Singh Boparan, chief executive of Boparan Holdings.

have pushed grocery suppliers’ revenue growth to historic lows and squeezed margins ever tighter. However, there is cause for some optimism. Producers are now tackling these challenges head on by investing heavily in efficiencies and innovation, and we’re seeing M&A activity ramping up right across the sector, reflecting greater investor confidence and an appetite for growth among players.”

The first half of 2015 saw six deals in the food and drinks industry worth a total of £3.1 billion, compared to ten deals worth £2.8 billion across the whole of 2014.

This trend is particularly evident among own label producers which are benefiting from the supermarkets’ desire to differentiate in an extremely competitive grocery environment. Own label producers continue to consolidate, with revenue growing at an average rate of 5.9 per cent, in comparison to 0.4 per cent for branded players.

Investing in Efficiency and Innovation Across the sector, companies have been investing in efficiency and innovation to tackle changes in consumer demand, resulting in an 18 per cent year on year increase in capital expenditure (CapEx). Haribo, Frank Roberts, and Dairy Crest lead the pack, spending 20 per cent, 12 per cent and 6.3 per cent of their revenues on CapEx respectively.

Will Hayllar continues: “The biggest sucFOOD & DRINK BUSINESS EUROPE, OCTOBER 2015

cess stories in this year’s Food & Drink 150 have ambitions far beyond aggressive costcutting. McCain, for example, launched six new products over the course of 2014 to meet changing consumer tastes. Equally, Alpro hasn’t rested on its laurels - innovating on its core offering with new tastes and pack sizes, and expanding into adjacent categories such as yoghurt and cream delivered a step change in the company’s performance over the past year. By meeting changes in customer demand head on, McCain and Alpro have delivered revenue growth of twice and six times the industry average respectively.

Producers can take their cue from these success stories: relentless innovation, investment in your core and international growth are crucial for sustainable long-term revenue growth.” J

Will Hayllar, partner at OC&C Strategy Consultants.

OC&C and The Grocer’s Food & Drink Top 10, 2015 1. Boparan Holdings (up one from number 2) 2. Associated British Foods (down one from number 1) 3. Arla Foods (up five from number 8) 4. Unilever UK (down one from number 3) 5. Mondelez UK (down one from number 4) 6. Coca-Cola Enterprises (down one from number 5) 7. Nestle UK (down one from number 6) 8. Bakkavor (up one from number 9) 9. Princes (down two from number 7) 10.Muller UK & Ireland (up 31 from number 41)

I CONFERENCE & EXHIBITION

How to Scale a Food & Drink Business – Food & Drink Business Conference & Exhibition “There is no reason why Ireland cannot be for foods what Switzerland is for watches,” according to Colin Gordon, Chief Executive of Glanbia Consumer Foods – Ireland’s largest consumer food company. olin Gordon was one of the keynote speakers at the second annual Food & Drink Business Conference & Exhibition held recently at the Aviva Stadium in Dublin. The theme of this year’s conference and exhibition was ‘How to Scale a Food & Drink Business’.

Over 2,000 people registered to attend the Conference & Exhibition, which was in essence three events in one - keynote addresses on the Main Stage and two workshops – ‘Craft Beer & Whiskey Opportunities’ and a dedicated ‘Food Innovation & Safety’ workshop.

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Aidan Cotter, Chief Executive of Bord Bia.

Colin Gordon, Chief Executive of Glanbia Consumer Foods.

Due to the relatively small size of the domestic market, exports are a crucial source of revenue to the Irish food industry, which has traditionally been strong in meat processing and dairying but has also developed a sophisticated convenience food sector as well as an international expertise in food ingredients. Brewing and distilling are key strengths on the drinks side.

Food Wise 2025 Food Wise 2025, the Irish Government’s new ten year development strategy for the agri-food sector, targets an 85% increase in the value of exports to Eur19 billion by 2025. The growth is expected to deliver an additional 23,000 jobs based on the projected expansions in dairy, beef and seafood, as well as a doubling of consumer food and drinks exports.

The plan identifies a surge in global food demand driven by emerging middle class populations across Africa and Asia as significant opportunities for Ireland. In beverages the plan envisages doubling whiskey output by 2025 and an increase in the number of micro breweries from 21 to 100. To achieve these targets indigenous companies must be able to scale up to increase sales to local retailers but more importantly to develop sustainable export markets.

Resilience Aidan Cotter, Chief Executive of Bord Bia (Irish Food Board) since July 2004, was the opening keynote speaker at the event. He pointed out that the Irish food and drink industry, which increased exports by 4% last year to Eur10.45 billion, has proved resilient in the face of the worst global recession in 80 years.

However, significant risks remain for an industry that competes in 175 markets around the world. For example, price volatility is “the single biggest challenge facing the Irish dairy industry and the global dairy industry,” he said.

About 40% of Irish food and drink exports are still destined for the UK and so are influenced by the strength of Sterling. Emerging markets are driving demand and China is now the second largest destination for Irish dairy products and pork, and the Irish food and drink

Over 2,000 people registered to attend the Conference & Exhibition, which was in essence three events in one - keynote addresses on the Main Stage and two workshops – ‘Craft Beer & Whiskey Opportunities’ and a dedicated ‘Food Innovation & Safety’ workshop.

FOOD & DRINK BUSINESS EUROPE, OCTOBER 2015

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sanal food enterprises, which historically have not proved to be a solution to the scale problem.

Ireland has a number of major advantages and has the potential to be recognised for food production in the same way as Switzerland is renowned globally for the quality of its watches. “We are not ambitious enough about how to get small players to the scale play,” he said.

Paul Kelly, Director of the Food and Drink Industry Ireland (FDII) business sector within IBEC.

industry’s fifth largest market overall.

Sustainability Sustainable development has become a priority for the major global food and drink producers as reflected in the Dow Jones Sustainability Indices. Ireland enjoys a ‘green’ image internationally, which has benefited its food and drink exports.

“It is not enough now to be green and natural but you have to prove it,” he cautioned. “Instead of standing still, we resolved that Ireland would become a world leader in sustainable development.”

Bord Bia launched a comprehensive national sustainability development programme in June 2012. Entitled 'Origin Green', the programme is designed to help Ireland become a world leader in sustainably produced food with a farm to fork approach. Origin Green is allowing the Irish food industry to differentiate its products in international markets and capitalise on the country’s ‘green’ credentials.

“Ireland is recognised as a world leader in terms of the commitments being made by farmers and food factories in this country,” Aidan Cotter pointed out. “Green and natural is what we always have been and we are building on these strengths with Origin Green.”

Importance of Scale “Scale is becoming increasingly important,” stressed Colin Gordon before identifying a number of systemic issues to developing scale within the Irish food and drink sector. However, he also pointed out that food is a low margin and high investment sector and access to finance is a major barrier in scaling up for small Irish food and drink companies.

Colin Gordon also highlighted the “lack of a full Government plan and support for developing scale.”

The Glanbia Consumer Foods chief suggested that there is an overemphasis on export performance and not enough attention being paid to the domestic market. Indeed, if the export contribution of the large international soft drinks concentrate manufacturers, the alcoholic drinks sector and the major beef and dairy processors is excluded, then a diverse group of smaller companies remain.

The 500 consumer food manufacturing units currently operating in Ireland are not realising major scale benefits with 75% of them employing less than 50 people. He was also critical of the obsession with arti-

People queuing for the Food & Drink Business Conference & Exhibition held recently at the Aviva Stadium in Dublin.

Crucial Role Paul Kelly, Director of the Food and Drink Industry Ireland (FDII) business sector within IBEC (Irish Business and Employers Confederation) employed another interesting simile in stressing the crucial role of the food sector in Ireland’s economy. “The food industry is as important to Ireland as car manufacturing is to Germany,” he remarked.

The Government’s Food Wise 2025 strategy has projected the creation of 23,000 additional jobs by 2015. However, although the Government has stressed that “the agri-food industry is strategically important to Ireland – we need to see this take place in practice,” Paul Kelly said.

“Access to finance is a major barrier to growth and scale within the agri-food sector,” he added. “Food is regarded as a long-term, capital intensive industry but the sector has huge potential.” He cited the findings of a recent case study based on 26 prepared consumer food companies, which found an over-reliance on short-term bank lending and zero appetite for risk among lenders.

Cathal Fitzgerald – Head of Food & Agriculture Investments at ISIF.

In addition to improving access to finance funding, the Government also needs to examine the taxation system and its impact on business, according to Paul Kelly.

New Approach to Investing Cathal Fitzgerald – Head of Food & Agriculture Investments at ISIF (the Ireland Strategic Investment Fund), which was established in December 2014, explained the role of the organisation. Formerly the National Pensions Reserve Fund, ISIF marks a new approach to investment by the State.

“Our mandate is to invest on a commercial basis in order to support economic activity and employment in Ireland,” he said. The ISIF is valued at Eur7 billion, and is available to invest in Ireland as suitable investment opportunities arise and are developed. The dual objective of the ISIF – investment return and economic impact – represents a new approach to investing and will require all investments to generate both investment returns and economic impact in Ireland.

The fund has the flexibility to make investments across the capital structure of companies and projects, both debt and equity, and across a range of investment types and sectors.

For example, within the food industry, ISIF was recently involved in the investment by Carlyle Cardinal Ireland in Carroll Cuisine, the Tullamore-based producer of branded cooked ham and chilled ready meals, backing a management buy-out of the company from Aryzta, the global speciality bakery group. Carlyle Cardinal Ireland is a Eur292 million Irish private equity fund focused on growth capital and buyout investment opportunities across Ireland, whose investors include the ISIF and Enterprise Ireland. J

FOOD & DRINK BUSINESS EUROPE, OCTOBER 2015

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I CONFERENCE & EXHIBITION

Lessons For Starting Up a Food Business of Scale “The guy who writes the bank adverts isn’t the same guy who lends the money,” said Michael Carey, one of Ireland’s leading authorities on starting and scaling food businesses, at the second annual Food & Drink Business Conference & Exhibition held recently at the Aviva Stadium in Dublin. The theme of this year’s event was ‘How to Scale a Food & Drink Business’. ichael Carey is currently chairman of Bord Bia (Irish Food Board) and co-founder and executive chairman of The Company of Food, a Dublin-based investment and consultancy firm specialising in supporting startup businesses in the food sector. He is also in the process of establishing East Coast Bakehouse, a new, large scale and innovative biscuits manufacturer offering Irish and British retailers an alternative source for private label and branded products.

by Enterprise Ireland (the new business is expected to create in the region of 100 jobs) and bank finance (Ulster Bank).

“Enterprise Ireland has played a pivotal role,” Michael Carey pointed out.

“Their advice is invaluable and far more important than the funding. The project would not have been developed in Ireland without the help of Enterprise Ireland.”

In terms of banking, Michael Carey found that most of the banks approached “showed no Michael Carey speaking at second annual Food & Drink Business Conference & Exhibition. appetite for risk.” He also The theme of this year’s event was ‘How to Scale a Food & Drink Business’. said that the ISIF (Ireland Strategic Investment Fund) Establishing a Business of Scale major sectors of the Irish food market will be crucial for funding food businesses Michael Carey identified three ways of including biscuits, marmalade, chocolate in the future. establishing a business of scale – 1. start and mint confectionery, and sauces. He small and grow; 2. acquire and consolidate; and his management team sold the Irish Six Lessons and 3. start a business of scale from scratch. ambient food business for an undisclosed Michael Carey concluded by listing six Each route has its own particular chal- sum in 2011 to Valeo Foods to form a lessons that he and his management team lenges. business with combined sales of about have learnt.

1 All the kettles need to boil at the same time.

Michael Carey adopted the second route Eur300 million.

Co-ordination of all the different elein developing Jacob Fruitfield Food Group, ments of the business launch is crucial. following the management buy-in of Nestle €15 Million Venture Ireland in 2002 and the subsequent acqui- Michael Carey and his team have now 2 The best advisors might not be cheap but they are great value. sition of the Jacob’s biscuits business in embarked on the third route by launching Ireland from Groupe Danone in August East Coast Bakehouse. Involving invest- 3 Team matters. It is a struggle to establish a new business and so it is important to 2004. Jacob Fruitfield Food Group com- ment of Eur15 million, East Coast have other members of a like-minded manded strong positions in a range of Bakehouse is transforming a recently renoteam around you at difficult times and to vated 50,000 sq ft premises at Drogheda in remain resilient.

County Louth, into a state-of-the-art bakery, innovation facility, warehouse and 4 There is a huge amount of good will toward local start-ups. The market is tough but offices. The new venture is scheduled to the venture has had a very positive commence production in early 2016. The response from the retail trade. fledgling company will launch its own new brand and also manufacture retail private 5 The guy who writes the bank adverts is not the same guy who lends the money. label products, serving both the domestic 6 The worst day as an entrepreneur is better and export markets. than the best day of working for a large Funding for the venture is being providcompany. J ed through the sale of a 30% equity stake,

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COVER STORY

ABP Food Group Beefs Up its Operations ABP Food Group, one of Europe’s leading privately owned agribusiness companies and the largest beef processor in Ireland and the UK, has completed a €50 million redevelopment of its Irish flagship plant at Cahir in County Tipperary, to expand production capacity to one million packs of meat each week for supply to both national customers and export markets.

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BP Food Group employs 9,000 people and operates 41 manufacturing plants in Ireland, the UK, Denmark, Poland, Austria, Holland and Spain. In addition to its core beef and lamb processing activities and the production of convenience foods, the group is also involved in rendering, renewable energy and pet foods. The business is owned by founder Larry Goodman and his family.

Covering an area of 27,323 square meters and currently employing 585 people, the processing plant at Cahir is ABP’s largest site in Ireland. Meat products from Cahir are supplied to restaurants, retailers and food service providers across Ireland and internationally. Export markets include Great Britain, France, Germany, Sweden, Italy, Switzerland and Belgium.

ABP Food Group employs 9,000 people and operates 41 manufacturing plants in Ireland, the UK, Denmark, Poland, Austria, Holland and Spain.

and beauty industries.

The construction project across the entire ABP Cahir site took about 30 months to complete and was phased in order not to impinge on the day-to-day operations of the plant.

In addition to being ABP Food Group’s largest processing site in Ireland, where the company operates five other plants, Cahir also acts as a distribution hub for the Irish operation. Product is sent to Cahir and then in turn exported to over 15 international countries.

Enda Kenny.

Economic Impact The redevelopment project was supported by the Irish Government through Enterprise Ireland and has created 152 new jobs to date with more expected in the future. ABP Cahir is now one of the biggest employers in the region employing 615 people directly and supporting a further 1,334 jobs in the wider economy.

Indeed, the upgraded facilities are expected to be worth over Eur1 billion to the local economy over the next five years with the majority of this benefit impacting Tipperary and surrounding counties, according to a report by Oxford Economics and KPMG. The construction phase of the development, which employed 250 people, was worth an additional Eur29 million to the economy.

Key Features The key features of the Eur50 million redevelopment include a state-of-the-art packing unit, an improved cold store facility, an upgraded boning hall as well as enhanced staff facilities. A new R & D centre will also open shortly on the site. Utilising the latest green technology, ABP Cahir is now one of the most advanced beef processing facilities anywhere in the world.

A by-products facility is located next door to the food processing plant and employs 30 people. It is the location for the new added value gel bone chip production unit. The unit is the first of its kind in Ireland and the UK and will process bovine bone to chips that will be exported and used to produce gelatine in the pharma, food

World Class Facility “This is a world class facility serving Irish beef Europe-wide.

Our investment, the largest ever by an Irish beef business, helps underpin over 600 jobs and contributes to helping deliver on the vision

Pictured at the launch of the €50 million redevelopment of the Cahir plant are (left to right): Paul Finnerty, chief executive of ABP Food Group; ABP Food Group founder and chairman Larry Goodman; and Taoiseach (Prime Minister)

FOOD & DRINK BUSINESS EUROPE, OCTOBER 2015

ABP Food Group will play a leading role in the planned expansion of Irish beef exports.

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of Food Wise 2025,” comments Paul Finnerty, chief executive of ABP Food Group.

He adds: “The economic benefits, particularly during construction, have been delivered during a difficult period for the local labour market, while the economic impact of everyday activity will also add significant benefit to the local and rural economy.”

Food Wise 2025 Food Wise 2025 is Mark Goodman, commercial director the Irish Govern(international) of ABP Foods Group, with Taoiseach ment’s new ten year Enda Kenny. development strategy for the agri-food sector. It targets an 85% increase in the value of exports to Eur19 billion by 2025. The growth is expected to deliver an additional 23,000 jobs based on the projected expansions in dairy, beef and seafood, as well as a doubling of consumer food and drinks exports.

ABP Food Group will play a leading role in the planned expansion of Irish beef exports. In February, it became the first European company to supply beef to the US market following the lifting of the 15-year ban on European beef. The company is currently supplying Sysco, a major supplier to the food service sector in the US. “Sysco will be key in helping us bring our sustainable, grass fed, hormone free Irish beef to the plates of US consumers,” says Paul Finnerty. “Our initial focus will be on the North-eastern region of the US where we will concentrate on establishing Irish beef in a sustainable and measured way.”

Market Trends Internationally, Ireland has earned a strong reputation for producing high quality grass-fed beef and ABP Food Group’s Cahir plant, as the distribution hub for the group’s Irish operations, is benefiting from this marketing advantage.

The Irish business is also well placed to capitalise from the current trend towards Paul Finnerty, chief executive of ABP Food Group. premium quality beef products, particularly in Europe, and further afield. The company already supplies over 100 Michelin star restaurants with quality Irish beef. ABP Food Group also continues to promote the premium quality of Irish beef products at trade shows across Europe.

Traceability Raw materials for the Cahir plant are sourced from 2,782 farmers in the Tipperary and wider Munster region as well as from parts of County Kilkenny to the north. Full traceability is ensured as all animals are fully DNA tested so that all cattle processed can be traced back to their farm of origin. A sophisticated in house track-

ing system allows ABP Food Group to trace all products from its Cahir facility.

Sustainability Sustainability is crucial to Ireland’s planned expansion of its food exports and ABP Food Group is also a pioneer in this field. ABP Food Group is a founder member of 'Origin Green', a comprehensive national sustainability development programme launched by Bord Bia (Irish Food Board) in June 2012. The programme is designed to help Ireland become a world leader in sustainably produced food with a farm to fork approach. Origin Green is allowing the Irish food industry to differentiate its products in international markets and capitalise on the country’s ‘green’ credentials.

Last year, ABP Food Group was the very first Irish company to receive triple certification from the Carbon Trust, the leading authority on monitoring the efforts of companies and governments to reduce their environmental impact. The Carbon Trust re-certified ABP in 2015 for the ongoing sustainability improvements made across the business.

The certification follows ABP’s introduction of its ‘Doing More with Less Programme’ in 2010 when it set itself challenging sustainability targets including: 10% reduction in water usage by 2020; 20% reduction in energy usage by 2020; 25% reduction in CO2 output from its plants by 2020; and zero to landfill by 2015. All the Irish operations - a third of total sites group-wide John Durkan, group sustainability and – are now running at environmental manager, ABP Food Group. zero waste to landfill.

“ABP has demonstrated year-on-year progress towards the challenging targets we have set ourselves to reduce the environmental footprint of our business,” says John Durkan, group sustainability and environmental manager. “ABP is at the forefront of Irish businesses demonstrating that sustainability and success can go hand in hand.”

The Cahir facility recently received recognition from OSI, one of the world’s leading food processing companies, for the water efficiency project at the site. The project has seen water usage reduced by 45% in the past year. This result follows the introduction of new technology and an all-round more efficient use of water. New developments include the introduction of sensor operated hand washers and sterilisers in addition to the introduction of a rainwater harvesting programme.

Continual Investment The investment at Cahir is part of an ongoing capital expenditure programme by ABP Food Group, which continually invests in improving its facilities. The group has invested over Eur100 million in its facilities in Cahir since 1973, when just 43 people were employed at the site.

ABP Food Group is currently nearing completion of a significant upgrade of its plant at Ellesmere in the UK, where over £20million is being invested to establish the site as a carbon neutral operation. The development at Ellesmere is typical of the action ABP Food Group is taking to embed sustainability at the heart of its business. J

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SI Set to Celebrate 23 Years in Business ystems Integration (SI) is proud to S announce that it’s celebrating its 23rd birthday next month.

Rob Stephens, Managing Director of Systems Integration.

The Staffordshire-based technology company was founded in 1992 by Rob Stephens, a former Group Operations Manager from the meat processing industry. Now the business works with a wide array of food manufacturers across the UK,

Ireland and North America. Its customer base has doubled since launching the market leading Integreater® brand in 2010.

And in a commitment to maintain its high customer service levels, the support and development teams have also grown during this period, with staff levels rising by more than 60%.

SI’s software, Integreater®, works by connecting the factory floor and back office. It can be used at an individual factory and group level - no matter how many sites a business has, or where they are located. As a modular solution, it can be used to target key and complex areas, or manage an entire business. Each customer decides how much to invest and when. The solution can be integrated with existing systems and is flexible enough to adapt to changing needs and business growth.

Integreater® is suitable for abattoirs, retail pack, value added, wholesale and food service businesses. It’s currently used at an array of food manufacturers from many different sectors, including meat, fish and cheese. It works across intake, production

and despatch, targeting key areas such as stock control, QA, yield, weighing and labelling, planning, forecasting, pack verification, purchase and sales order processing, packaging and dry goods.

SI’s MD, Rob Stephens, says: “We’re proud to have been helping food manufacturers improve productivity for over two decades. Investing in our solution offers a significant return on investment and this has enabled us to grow our business and increase profitability year on year, even during tough market conditions. We’ve worked hard to develop strong partnerships and have an unprecedented client retention rate. I would like to thank all of our customers for their loyalty, as well as our staff, who’ve worked hard to acquire and support these clients.” J

Bosch to Acquire Kliklok-Woodman

osch Packaging Technology, a leading supplier of process and B packaging technology, has agreed to acquire Kliklok-Woodman Corporation for an undisclosed price. US-based Kliklok-

Woodman is a globally recognized manufacturer of packaging machinery for the food industry. The company supplies customers worldwide from its US headquarters and a second manufacturing facility, Kliklok International, located in Bristol in the United Kingdom. In 2014, it generated sales revenue of approximately $65 million (Eur49 million). The acquisition is subject to the approval of antitrust authorities.

“This planned acquisition will further extend Bosch Packaging Technology’s position in the food and confectionery industry.

Above all, it will enhance our system capabilities as single-source supplier,” says Friedbert Klefenz, president of the Bosch Packaging Technology division.

Kliklok-Woodman has more than 60 years of experience in the packaging of goods such as pastries and confectionery, frozen food, and dairy products. The company focuses mainly on the development, manufacture, and marketing of secondary packaging machinery such as end-load cartoners and top-load erectors and closers, and of primary packaging machinery such as vertical form, fill, and seal machines.

“This is great news for our customers, especially those with growing global operations, those who value single source systems responsibility, and those who desire variety in their flexible packaging formats,” says Bill Crist, CEO of Kliklok-Woodman. “We are proud of this strategic change, which has the potential to provide

our successful, international associate team with further opportunities and aligns with the core values and reputation we have built over 60 years.”

In particular, Kliklok-Woodman’s range of secondary packaging machinery will complement Bosch Packaging Technology’s portfolio for the food and confectionery industry.

In recent years, Bosch Packaging Technology has made a number of acquisitions to strengthen its worldwide market presence and extend its product portfolio. The planned acquisition of KliklokWoodman follows the purchase of Ampack (Germany) in 2012 and Osgood Industries (USA) in 2015. J

FOOD & DRINK BUSINESS EUROPE, OCTOBER 2015

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Packaging Excellence From Limerick Packaging ery many food industry and pharma/medical companies throughout V Ireland are experiencing “a nice easy life” safe in the knowledge that the packaging materials they need are but a phone-call away in Limerick Packaging. These companies no longer have stores full of boxes that they don’t need at that point in time and a packing hall without the boxes they do need. They have zero capital tied up in packaging stocks, allowing that money to be invested in turnover that perpetuates the business, and they have production and value-added activities where once they had stores.

Indeed, the team at Limerick Packaging are determined to protect their position as the most reliable supplier of packaging materials in all of Ireland through their commitment to quality products, ‘on time every time’, and where the ‘customer is truly king’.

Extensive Product Range “Our product range is quite extensive” says Mike Boland, Sales Director and Co-Owner of Limerick Packaging. “While 90% of our business is corrugated boxes in regular slotted case and die-cut formats, we now supply Litho printed outer boxes and inner cartons in very large quantities to a growing number of customers. We also supply industrial polythene bags, sheets and pallet hoods, pallet edge-guards, high quality post-printed boxes, pallet-wrap, strapping, strapping accessories, tapes and a full range of protective foams.”

The Limerick Packaging facility, located on the Ballysimon Road in Limerick, is characterised by its cleanliness, tidiness, efficiency and sheer size. It incorporates a barcoded storage system that not only controls stocks but also results in a first in first out stock rotation system.

Stock and Serve Model Set up in June 2002, Limerick Packaging has grown to a formidable size and the staff are very proud to count among their many customers some of the biggest names in the food industry and medical/pharmaceutical sectors. Once they get to fully understand their customer’s

We are always striving to improve our performance and to create the ultimate customer experience. Wee are close but we are not there yet.

business they stock product to Purchase Order and deliver daily or weekly as required. Sales Director, Mike Boland says that “for customers within our famous ‘stock and serve’ model, they can call product off today before noon and we will deliver tomorrow, anywhere in Ireland.”

Limerick Packaging has experienced considerable growth in shelf ready/retail ready packs and also in Litho-laminated corrugated packs due to their ability to follow market trends, their ability to design effective solutions for their customers at very competitive prices and their ability to assist their customers to get products innovatively packed to market in a timely fashion.

Flexibility Mike Boland also points to the fact that it is company policy to operate its own delivery fleet, as this provides the flexibility necessary to meet all customer needs on a daily basis. “We are certified to ISO9001:2008 and we operate to ISO14001 and BRC/IOP,” he says. “However, we are never happy and we are always striving to improve our performance and to create the ultimate customer experience. We are close but we are not there yet.” He adds: “When we reach our goal, we will push on and once again set new standards for Customer service.”

Having grown from zero in June 2002 to a very sizeable business today, Connie Ryan, Managing Director and Co-Owner, says: “Our success is attributable to the generosity of our many customers; in the first instance for believing in us and placing their business with us. And for continuing to support us; many of our customers who gave us business when we started have remained with us to this day. We have rewarded our customers with state-of-the-art-design and problem solving skills, trouble-free trading, competitive pricing and quality products delivered on time every time. We will continue to dedicate ourselves to our Customers as we hope that many more fine Customers will join in and be part of our success story.” J

We have rewarded our customers with state-of-the-art-design and problem solving skills, trouble-freee trading, competitive pricing and quality products delivered on time every time.

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FOOD & DRINK BUSINESS EUROPE, OCTOBER 2015

I LABELS & LABEL APPLICATORS

Primera’s Smart Label Printing Solutions mart product labelling and packaging is S extremely important and plays a significant role in the consumer’s purchasing decision. Manufacturers of almost any type of product often find themselves in need of short- to medium-run, full-colour customized product labels. The reasons are many: for use on prototype products, promotional campaigns, and perhaps most often, because the manufacturer has many different products that are all produced in smaller quantities.

In all of these cases, the printed quality and appearance of these labels are extremely important. Providing a professional appearance on packages can easily make the difference between a product selling well or simply sitting on the retail shelf. Professional colour labels also reflect the quality of food and drink products they feature and set them apart from others. This is especially important for smaller manufacturers who can actually increase their sales by making their products stand out through innovative packaging and labelling. It also allows manufacturers of all sizes to offer private label goods in smaller quantities.

Primera Technology, a leading manufacturer of specialty colour printers will present at Anuga and Natural Products Scandinavia its inkjet-based LX-Series Colour Label Printers as well as its AP-series Label Applicators.

LX900e –Primera’s Best-selling Inkjet Label Printer Primera Technology has successfully developed short- to medium-run solutions using inkjet technology, such as the LX900e Color Label Printer. Its print resolution of 4800 dpi guarantees a printout in photorealistic

quality and enables users to add vibrant pictures of their products next to small texts such as ingredients, instructions or barcodes and still every detail of that label is razorsharp. Labels can be printed whenever they are needed and in the required quantity.

The LX900e’s specially-designed pigment inks offer far more stability against harsh conditions including water, chemicals, abrasion and exposure to long periods of UV light. A significant advantage of the LX900e’s implementation of pigment inks is that the printer can use either type of ink by simply changing out the removable print head – an exclusive feature that sets the LX900e apart from other desktop label printers.

LX2000e – Primera’s New Industrial Printer Primera is always trying to come up with improved or new printing solutions. One of those innovations is the LX2000e Color Label Printer, a new industrial-grade desktop printer suitable for use in off- and in-line productions. It stands out especially for its robust construction, its reliability and consistency of the printing output, which is extremely important for example in the logistics or chemical sector LX2000e is Primera’s fastest pigment inkjet label printer using BS5609 certified FOOD & DRINK BUSINESS EUROPE, OCTOBER 2015

ink. In combination with various synthetic materials like Primera’s Tuffcoat Extreme Polyjet material, LX2000e labels are highly water and UV resistant and therefore fulfil all requirement for GHS compliant labelling. This durability supports applications such as frozen or refrigerated foods and beverages.

Large, separate ink cartridges keep cost per label low while print speeds of 152mm/s, along with 210mm print width produce full colour labels extremely fast.

Wired Ethernet, USB 2.0 and wireless connectivity enables an easy integration of the LX2000e in existing production processes, allows printing jobs to be decentralized started and controlled and supports the cost evaluation.

AP360e/362e/550e – Primera’s Label Applicators Primera’s label product range is completed by the AP-series Label Applicators. The AP360e single and AP362e front and back round container label applicator and the AP550e label applicator for flat-sided containers like square sided bottles and boxes apply labels faster, more accurately and wrinkle-free – helping to speed up the production and sell more products than by applying labels manually.

At Anuga in Cologne, Germany (Hall 7.1 aisle A stand 131) as well as at Natural Products Scandinavia in Malmö, Sweden (stand D50), Primera will present its label printing solutions to the international audience. Primera employees will happily inform visitors about Primera’s label printing equipment, the wide range of label materials and their different usability.

For further information contact Primera Technology Europe on Tel +49 611 92777-0, Email sales@primera.eu or visit www.primeralabel.eu. J

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Packaging Innovations and Luxury Packaging London 2015 Packed Out arrods, Boots, Tesco, Waitrose, H Burberry, Proctor & Gamble, United Biscuits, Giorgio Armani, and Benefit Cosmetics were among the many attending Packaging Innovations and Luxury Packaging London 2015. The sell-out show, which took place at its new home Olympia London on 16 & 17 September 2015, enjoyed further growth, with final visitor numbers reaching 4,003, meaning that it has doubled in size since its launch six years ago.

Alan Davies, former Head of Brand Design at Thorntons, commented on the show’s success: “If you are running or launching a brand I wouldn't miss this show – it is packed with innovation. In such a crowded and competitive market, anyone launching a product or a brand needs to get the branding and packaging absolutely right. That's why a visit to a show like this is invaluable.”

The two day show included a Learnshops seminar programme, with speakers from Müller, Webb deVlam London, Marks & Spencer, Liberty, and Brand on Shelf.

The Luxury Packaging Conference The Luxury Packaging Conference which gave visitors access to the latest creative thinking for premium brands, included speakers from Diageo, Harrods, P&G Prestige and LUSH. Kicking off day two was Kate Stone, Managing Director of Novalia whose vision is to bring print to life. Stone commented: “We’re pushing the boundaries by combining conventional printing with electronics and touch software to create a magical experience for the end user. The Luxury Packaging conference is a perfect platform 20

to showcase a glimpse of the possibilities that interactive paper can offer companies.”

Exhibitor Launches The show was inundated with exhibitor launches.

Schur Star Systems debuted its Schur® Jar, a unique flexible stand-up bag, shaped like a jar. Global Vision gave attendees a sneak peek at the new release of Proofware, the world's first all-in-one webbased packaging inspection suite. While Graphics Packaging International was handing out free beer samples!

Claire Duthy, Packaging Developer at Pai visiting the show, remarked: “This is the first time I have attended the show. It’s great to meet so many different suppliers all in one room - great venue and layout.”

Commenting on the success of the show was exhibitor Richard Fishwick, Sales Director at Smurfit Kappa, who remarked: “What a fantastic show 2015 was!

Packaging Innovations produced some brilliant conversations with brand managers and packaging partners alike. What a great opportunity to showcase the best from Smurfit Kappa’s speciality sites.”

The Drinks Symposium featured speakers from ButterflyCannon; Sauvelle Vodka, Hawthorn’s Gin and Funkin Cocktails.

These leading names presented visitors with real-life stories, offered advice and unveiled the latest concepts sweeping the drinks industry.

Great Innovation Debate The inaugural Great Innovation Debate saw a large audience gather to hear a panel of packaging experts discuss - what is innovation, how do we define innovation and where does innovation come from?

The panel, which included Procter & Gamble, Graphic Packaging International and Thornton’s, was chaired by Stefan FOOD & DRINK BUSINESS EUROPE, OCTOBER 2015

Casey, Business Innovation Manager, The Retail Institute who concluded: “Over the last 18 months there has been a huge surge of interest in innovation, and in all its guises it’s springing up everywhere.

Those businesses that embrace it, nurture it, and allow it to grow within its business culture will continue to reap the rewards.”

Brand Innovation Programme New this year was the Brand Innovation Programme where nine leading creative agencies, across the two days, discussed how to develop a brand with high quality packaging design. The show also provided a mass of interactive show features including the Innovation Showcase, highlighting the latest packaging innovations at the show, and the Rising Star Scheme where young brands were given special help finding the right solutions for their company.

Newly appointed Event Director for the Easyfairs’ Packaging Portfolio, Gerry Sherwood added: “We couldn’t be more delighted with the attendance figures and how this year’s show turned out. The new venue has been well received and there was a great buzz live on the showfloor.

We received really positive feedback from both visitors, who found new inspiration and packaging solutions, and exhibitors who expect to achieve significant ROI from the show. This fantastic response is demonstrated in the fact that 76% of the exhibitors have already booked for next year’s show.”

Packaging Innovations & Luxury Packaging London will return on 14 & 15 September 2016 at Olympia London. J

Avery Dennison Introduces Aqua Opaque Technology – Maintains Whiteness of Wet Uncoated Wine Labels unique new technology from Avery A Dennison has solved a longstanding problem for wine producers who want to use uncoated bottle labels. Uncoated paper facestocks, with a matt finish are a popular way of achieving a premium bottle ‘look’, but they have always had one major disadvantage: they turn grey when exposed to water. The new Aqua Opaque™ solution resists greying and opens up new design possibilities.

Andrew Crawford, vice president of marketing at Avery Dennison Materials Group Europe, says that wine producers can now be offered an uncoated paper that stays white longer, and which is suitable for neck labelling as well as the main bottle label.

“Some uncoated papers provide a very valuable decoration option, but they can lose as much as 50% of their opacity in the presence of moisture when used with a conventional adhesive – and that makes the bottle label look grey, and with uneven colouring,” he explains. “This new approach protects uncoated papers for up to 2 hours, maintaining their opaque white appearance. It’s a particularly important option for makers of white, rosé and sparkling wines where maintaining a premium brand image in the ice bucket is essential.”

For further information contact Avery Dennison Label and Packaging Materials on Tel +31 85 000 2000 or visit www.averydennison.com. J

Clearly Measured easom Freer’s popular range of blue measures are now availM able to order in Clear SBC Polystyrene. Ranging in size from 0.5 to 150ml they are ideal for the precise dispensing and dosing of powders, pellets, dried goods and liquids making them suitable for a wide range of product sectors.

Measom Freer’s hand scoops can also be ordered in clarified polypropylene for bulk handling of product. Logos or company details can easily be added to the handles in Measom Freer’s in house screen printing shop.

They also manufacture and stock plastic bottles, closures, jars, fasteners and spoons all available off the shelf, as well as a variety of different caps – including flip caps, dropper caps, screw caps and spray & gel pumps. All their products are designed and manufactured in the UK, with a minimum order of just a single box.

For further information contact Measom Freer on Tel +44

(0)116 2881588, Fax +44 (0)116 2813000, Email sales@measomfreer.co.uk or Buy Online atwww.measomfreer.co.uk. J

First Sidel Matrix Project for UAE idel, the leading global provider of PET solutions for liquid packaging, S will be introducing for the first time in the UAE its Sidel Matrix™ Combi system, after being selected by Dubai Crystal Mineral Water and

The Sidel Matrix™ Combi system integrates the blow-fill-cap function in one single enclosure, with neck-handling and positive transfer of PET bottles.

Refreshments to upgrade its factory. The Sidel Matrix Combi, based on the most cost-effective technology of the latest generation of Sidel Matrix systems, will contribute to delivering high level performance and production safety, along with reduced costs and a low environmental footprint.

Dubai Crystal Mineral Water and Refreshments is a HACCP and ISO certified company involved in multi-faceted activities with manufacturing and distribution facilities in Iran and UAE for the Crystal and Hatta Mineral Water brands.

The Sidel Matrix Combi will help the Emirati bottler to produce PET water bottles in 330ml and 500ml formats at a speed of 22,500 bottles per hour (bph) and 1.5l format at a speed of 16,000bph.

Along with the Sidel Matrix Combi system, Dubai Crystal Mineral Water and Refreshments will integrate Sidel’s recently launched Sidel StarLite™ base packaging technology which gives added durability, stability, and overall resistance to the PET bottles. J

FOOD & DRINK BUSINESS EUROPE, OCTOBER 2015

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I FRUIT JUICE

European Fruit Juice and Nectars Industry Feels the Squeeze Consumption of fruit juice and nectars across the EU contracted by 3.3% in 2014, marking a sixth consecutive year of decline. otal juices and nectars consumption was 9.702 billion litres, down from 10.028 billion litres in 2013, with pure juices accounting for 6.215 billion litres (6.478 billion litres in 2013) and nectars 3.486 billion litres (3.550 billion litres in 2013), according to the 2015 Liquid Fruit Market Report, prepared by Canadean for the AIJN (European Fruit Juice Association). Founded in 1958 and based in Brussels, the AIJN is the representative association of the EU fruit juice industry, defending and promoting the interests of both processors and packers.

Germany remains the largest fruit juice and nectars market in the EU in terms of volume consumption, followed by France, the UK, Spain and Poland. Indeed, these five markets account for 70% of total EU consumption. At 33.6 litres per person, Malta has now overtaken Germany as the biggest European market in terms of per capita consumption, with the Netherlands, Finland and Cyprus ranked respectively from third to fifth.

Although volume sales of fruit juice and nectars in the EU are falling, the market fundamentals remain sound but the industry faces a series of major challenges.

T

Challenges European fruit juice and nectars producers are contending with rising raw materials and logistics costs, which are pushing up average retail prices when consumer confidence still remains fragile. Indeed, many consumers have been trading-down from branded products to private label or from 100% juice to nectars. Consequently, Jan Hermans, Secretary General of AIJN. producers’ profit margins have been squeezed between rising costs and an extremely price sensitive retail market, characterised by a high level of promotional pricing.

Although price remains a key issue for consumers, many are willing to pay a premium for natural products with functional qualities. Some producers have been able to capitalise upon this feature of the market by developing functional and value added chilled juices targeted at specific consumer groups.

The European fruit juice and nectars industry has also been impacted by negative media coverage highlighting the high natural sugar content of fruit juices and the implications for consumers in terms of obesity and tooth decay.

Total juices and nectars consumption was 9.702 billion litres in 2014.

Pan-European Marketing The AIJN has responded by developing a pan-European marketing programme to support the industry and to highlight the positive aspects of fruit juice and the role it can play in a healthy lifestyle.

The overall aim of the campaign is to change people’s behaviour regarding fruit juice.

The AIJN wants consumers to see fruit juice as a key part of a healthy diet and really understand the benefits which it brings. By using credible science, the AIJN intends to accelerate positive media coverage and ultimately, to create positive foundations which will enable growth for the entire European fruit juice industry.

CSR Path Modern consumers are also becoming increasingly aware of how their purchases affect the social, economic and environmental conditions of the people involved in the production of goods they buy.

The European fruit juice industry shares this concern about the impact of its operations, which extend globally, and has proactively acknowledged this responsibility. There are a number of AIJN initiatives that prove this commitment. The main one is the development of the Fruit Juice CSR Platform (www.juicecsr.eu), initially supported and co-funded by the European Commission.

The objective of the Fruit Juice CSR Platform is to inspire and support the European fruit juice industry to integrate corporate social responsibility (CSR) in their business operations and core strategy. The vision is to establish a thriving and resilient juice sector creating income stability and prosperity for all stakeholders involved in the global value chain. The Platform is designed to enable companies to collaborate on these global challenges The Juice CSR Platform Sector Roadmap was created in November 2014 and outlines a vision, framework and guidance for implementing CSR in the fruit juice sector. The Roadmap presents

FOOD & DRINK BUSINESS EUROPE, OCTOBER 2015

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Mixed Flavour Juice Growing in Troubled Global Juice Market In recent years consumers have started to favour premium juices with mixed flavours over historically popular single flavours such as orange and apple. Canadean’s latest annual Soft Drinks Market Insight reports find that global sales of orange and apple juice declined by half a billion litres between 2013 and 2014 to under 12 billion litres. This compares with more than 13.5 billion litres of combined global sales only five years ago in 2009. “In many Western markets fewer people have a traditional breakfast meal and more consumers are concerned about the high sugar content of juices. Flavour mixes are providing a much-needed volume boost for struggling juice manufacturers,” says Chris Strong, analyst at Canadean.

The research reveals that more exotic and unusual flavour combinations are beginning to emerge, including vegetable juices, blood orange and passion-fruit. On a global basis, mixed flavours have grown by a 2% CAGR

the joint CSR principles supported by guidelines, tools and industry commitments for 2015 and beyond.

Juice Summit 2015 The various challenges facing the European fruit juice and nectars sector along with other issues will be discussed at the Juice Summit 2015 being held on October 7th and 8th in Antwerp, Belgium.

Organised by and for the industry, the Juice Summit is the leading annual conference for fruit juice executives from all over the world.

The Juice Summit was established in 2013 as a means to provide a

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between 2011 and 2014 compared to a 2% decline for the juice category overall. This translates into a volume rise of around 100 million litres in only three years, from 1.6 to 1.7 billion litres.

In the leading North America market the segment recorded almost 8% growth, despite production difficulties due to rising raw material costs and crop shortages. Similar success has been seen in West Europe where mixed flavours rose by 1% in 2014, against a 5% decline for the juice category overall.

Together with value-added innovations such as cold-pressed and high-pressure processed (HPP) products, flavour mixes meet growing consumer demand for innovative and high quality beverages. “HPP and cold-pressed juices are particularly interesting for manufacturers. They not only meet consumer demand for fresh products where ingredients and taste have not been impacted by industrial processing, but can also be sold at premium prices,” adds Chris Strong.

genuine and dynamic forum for all industry players and their suppliers worldwide.

With over 450 people attending last year, the AIJN is expecting the same number, if not more, at this year’s Juice Summit. A wide variety of topical issues which determine the business environment of today will be addressed, as well as challenges for tomorrow.

Speakers and panellists will also share their understanding and vision of the future of the fruit juice industry. The Juice Summit also provides an ideal platform for attendees to socialise with colleagues and to network with new and existing business contacts. J

FOOD & DRINK BUSINESS EUROPE, OCTOBER 2015

I FRUIT JUICE

Tetra Pak Responds to Consumer Demand For More Natural Products With New Processing Innovations our health is your wealth. This is one of Y the biggest global trends driving consumers’ shopping behaviour today, as they look for products that deliver optimum nutritional and wellness benefits while also being natural. As a result, people are seeking natural fruit juice products which undergo less processing and retain their nutritional qualities. For instance, there is a growing market for drinks that contain fibres, pulp and particles and give people the sensory experience of drinking fruit in liquid form.

These trends are presenting new challenges to the juice industry and placing new demands on the technologies they use to deliver high quality products. In tandem, producers are relentlessly seeking processing solutions that deliver operating and environmental efficiencies without compromising the quality of juice products.

Tetra Pak is helping customers respond in two ways: improved pasteurization, and protection of particle integrity to increase juice quality. Progression in both these areas is essential to ensure the industry can accommodate consumer demand for more natural products, something which is only set to rise in the future.

Landmark Innovation in Juice Pasteurization

Looking first at pasteurization, Tetra Pak has pioneered a revolutionary processing method for high acid juices which saves up to 20% on energy consumption and brings cost and environmental benefits to customers.

Standard juice pasteurization involves two steps, with the first heating the liquid to 9598°C and the second to 95°C. Tetra Pak wanted to identify costs savings for fruit juice customers without compromising product quality and so set about researching how it could improve pasteurization best practice at

its Centre of Expertise. This led to an important discovery: the low pH level of juice acts as a natural hurdle, inhibiting the growth of many types of microorganisms. Therefore, when combined with the first pasteurization stage, the second pasteurization is not required at such a high temperature, provided high quality ingredients are used.

Following the discovery, Tetra Pak developed a new pasteurization process which reduces the temperature of the second pasteurization step from 95°C to 80°C and significantly improves energy efficiency. The concept was piloted and proven at Valio Oy’s juice plant in Helsinki, Finland, which showed that pasteurization could undergo a temperature reduction whilst also retaining food safety and taste.

Moreover, tests showed that on a line processing 22,000 litres of orange juice per hour, the 20% energy savings created by the new process equates to Eur19,000, compared to current average energy prices, and also leads to a 20% reduction in carbon footprint.

“This breakthrough in pasteurization means that we can help juice producers optimise efficiency and reduce the energy consumption of processing,” says Katarina Ternström, Manager of the Centre of Expertise at Tetra Pak. “This helps our customers improve the bottom line, which is crucial in an increasingly competitive market.”

Tips to Optimize Juice Processing

Secondly, Tetra Pak looked at ways to improve product quality, publishing a practiFOOD & DRINK BUSINESS EUROPE, OCTOBER 2015

cal white paper for food and beverage manufacturers to help them address growing consumer demand for products with natural fruit-like textures.

These consistencies – achieved through maintaining particles, fibres and pulp in fruit juices during processing - are fragile and can be easily damaged. Conventionally, beverage processors have focused on incorporating fibres and pulp in response to consumer preferences. However, as particles have become a significant element in enhancing taste, in order to create the ultimate drinking experience, it has now become important to retain the integrity of all three.

At Tetra Pak’s Product Development Centres, unique teams of development engineers offer customers the opportunity to optimize product quality whilst also considering raw material costs. This includes the development of innovative tools that take particle heating time lags into consideration to enable the production of high quality, great tasting juices that do not impact profitability.

Conclusion

The ongoing trend for more natural health and wellness products means that fruit juices will remain a popular choice for consumers.

However, with ever more discerning purchasing decisions centred on ingredients and taste sensations, it is increasingly challenging for producers to meet these demands and look after their bottom line. Tetra Pak recognises that innovation is a key tool in ensuring success and will continue to share its future discoveries for the benefit of both customers and consumers.

To find out more about how to minimize damage when processing particles, fibres and pulp, please see: www.tetrapak.com/temperature. J 25

I SOFT DRINKS

Refresco Gerber Set For Further Expansion Now starting to reap the benefits of additional scale and efficiency synergies arising from the merger of Refresco and Gerber Emig in November 2013, and having successfully listed on Euronext Amsterdam, Refresco Gerber is focusing on pursuing organic and acquisitive growth opportunities within Europe and beyond. ith production facilities in the Benelux, Finland, France, Germany, Iberia, Italy, Poland and the UK, and offering global sourcing and local R&D capabilities, Refresco Gerber is the leading European bottler of soft drinks and fruit juices for retailers and branded customers.

W

Hans Roelofs, chief executive of Refresco Gerber.

Employing over 4,000 people across nine countries, the Netherlands-based group achieved sales volumes of 6.0 billion litres and revenues of Eur2.0 billion in 2014, and plans to double in size during the next five years.

Merger Benefits According to Hans Roelofs, chief executive of Refresco Gerber: “The merger expanded our manufacturing footprint and we now provide our customers access to more markets, products, packaging formats and inno-

vations. At the same time the merger has enabled us to further professionalise our organisation and realise scale and efficiency synergies, cost advantages and commercial opportunities.” This contributed to strong profits for the group in 2014 with adjusted EBITDA of Eur208.2 million compared to Eur139.7 million in 2013.

Gross profit margin per litre increased by 16.8% to 14.2 euro cents for the 2014 financial year, reflecting the benefits of merger synergies, continued focus on more profitable volumes, the shift in product mix arising from the merger and slightly more favourable input costs.

“The merger also resulted in a significant increase in volume and revenue, although in certain markets and categories underlying private label volumes were slightly under pressure throughout the year,” he remarks.

Public Listing Having explored various options to best position the company to capture the private label and contract manufacturing growth opportunities already identified, Refreso Gerber chose a stock exchange listing on Euronext Amsterdam. Refreso Gerber, which is majority owned by Ferskur, Tamoa and 3i Group, raised Eur548 million through the initial public offering by selling

Refresco Gerber is continuing to execute its ‘buy and build’ strategy.

about 47% of its shares.

“Our shares have been listed on Euronext Amsterdam since last March and we are very pleased with the added liquidity for investors and the extra visibility for our company,” says Hans Roelofs. “It reconfirms the strength of our investment proposition, supporting us further in pursuing the organic and acquisitive growth opportunities that we see in Europe and beyond.”

Buy and Build Refresco Gerber is continuing to execute its ‘buy and build’ strategy where selective investments and acquisitions are used to increase its manufacturing capacity, expand the range of product offerings and grow market share. When making investments,

Refresco Gerber is the leading European bottler of soft drinks and fruit juices for retailers and branded customers.

FOOD & DRINK BUSINESS EUROPE, OCTOBER 2015

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to 3.05 billion litres. However, the revenue change is chiefly fuelled by fluctuations in input prices which are passed onto customers. Revenue performance “is therefore not a representative indicator for the development of our business,” he points out.

“In the first half of 2015 we realised a 1.2% organic growth in volume, in line with the general market trend. Growth was mainly driven by our Co-Packing business where we realised an increase of 12.5% in volume compared to the first half of last year. This increase in Co-Packing has enabled us to maintain a strong gross profit margin per litre, the key indicator in development of our business,” comments the Refresco Gerber chief executive.

Refresco Gerber does so with the intention of ultimately becoming the leading soft drinks and juices bottler in that market.

Indeed, the merger between Refresco and Gerber Emig was in line with this strategy of strengthening the group’s position as the preferred bottler of soft drinks and fruit juices to retailers and A-brand customers across Europe. Refresco Gerber intends to continue to focus on healthy organic growth and on highly selective acquisitions, which contribute to improved customer service, economies of scale, and cost effectiveness. Indeed, Hans Roelofs believes that consolidation is crucial to success in the highly competitive soft drinks and fruit juices industry.

First Half Performance Revenue in the first half of 2015 was down slightly at Eur1.01 billion but volume rose

Further Growth The new capital structure will enable Refresco Gerber to continue to pursue its development strategy of growing alongside its customers in the markets where the group currently operates, to enter new products and packaging categories in selected markets and to expand geographically.

“After the successful conclusion of our IPO last March, we were able to refinance our high yield bond related debt, lowering finance costs considerably and thereby creating headroom for the continued execution of our growth strategy,” explains Hans Roelofs. “With a healthy pipeline of potential acquisition targets we are well positioned to further pursue our buy & build strategy going forward.”

“We are an acquisition machine,” he remarks. “We’re consolidating this

market.”

Outlook Although Refreso Gerber was able to maintain a strong gross profit margin per litre in the first half of 2015, this is expected to decrease slightly during the remainder of the year due to product mix effects. For the full year, Hans Roelofs anticipates “a low to mid-single digit growth of volume with gross profit margin per litre coming down marginally compared to the full last year (2014: 14.2 euro cents).”

Refresco Gerber faces a challenging business environment with fragile consumer confidence in many regions of Europe.

However, the prospects for the European private label soft drinks industry generally are encouraging and the business is expected to benefit from the fundamental growth drivers of private label. J

Ideas, Solutions and Plants For the Food and Beverage Industry ince 1983, SAP Italia has operated sucS cessfully on an international level in the field of construction of processing plants for the food and beverage industry. Thanks to constant efforts in the search for new solu-

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tions and numerous collaborations that have taken place over the years with leading customers in the industry, SAP Italia has gained extensive know-how in the various fields of operation.

The range of services that SAP Italia offers its customers includes in-depth feasibility studies, comprehensive and detailed cost estimates, custom design for specific needs, production, installation, testing, staff training, preventive maintenance, assistance with specialized technicians and a spare parts service: * Mixing and carbonating units, * HTST pasteurizers * UHT sterilizer FOOD & DRINK BUSINESS EUROPE, OCTOBER 2015

* * * * *

Aseptic storage tanks CIP and SIP plants, Syrup and juice preparation rooms, Batch and continuous sugar dissolvers, Turn key projects. J

I FOOD SAFETY

The Right Food Grade Lubricant – It Makes a Difference ffective lubrication of food processing E equipment is becoming increasingly important. Both food processing facilities

time and money can be a challenging task for even the most experienced plant manager.

and food grade lubricant manufacturers play a role in the overall safe production of consumer goods.

Lubricant manufacturers are challenged to produce food grade lubricants that can also stand up to tough operating conditions This means achieving the performance level of a conventional lubricant, while manufacturing in a food safe environment with

Ever-evolving Safety Requirements While changes and updates in legislation work to benefit the industry, they can present challenges. Regulatory requirements are often country/region specific with respect to where and when food grade lubricants are necessary. Manufacturers need to meet regulations on a global scale, and

However, the demands of today’s food manufacturers extend beyond food safety.

For many years, plant operators debated the quality and performance of food grade lubricants, not wanting to risk equipment performance or reliability. Petro-Canada Lubricants PURITY™ FG products challenge this perception. Through advanced technology, and expert research and development, PURITY FG products are specially formulated to be as effective as their nonfood grade counterparts and deliver the highest performance from your equipment.

With exceptionally long life and anti-wear technology, facilities can enjoy increased productivity, decreased downtime and ample value-based savings from the advanced protection and performance that quality food grade lubricants provide.

A Team of Your Own Petro-Canada develops products that are made to meet your demands. No matter the challenge, PURITY FG food grade lubricants handle the intense environmental conditions that processing operations can breed.

Petro-Canada’s experienced technical service team works directly with you to create a personalized solution that meets your operating needs.

products that are formulated with highly pure white mineral oils and that are registered H1 for incidental contact.

And on the other end, manufacturing operations can be expected to run continuously and the equipment may have to endure conditions such as extreme temperature swings and contamination-prone environments. Finding a lubricant that meets stringent food safety standards, provides lubrication even under tough conditions, helps reduce downtime and ultimately saves

ensure they are aware of both existing and developing regulations. Petro-Canada Lubricants Inc. is always working to ensure its products meet the regulatory needs of all its customers worldwide.

Beyond Food Safety Food grade lubricants are designed to protect your machines and ensure that even if there is incidental lubricant contact during food production, the risk of financial loss due to product waste or recall is reduced.

FOOD & DRINK BUSINESS EUROPE, OCTOBER 2015

Take Advantage of the Petro-Canada Complete Solution Food manufacturers are starting to take food safety to new levels. When manufacturers are able to employ H1-registered food grade lubricants across their full facilities, it not only helps them meet industry regulations and demands, but also delivers peace of mind in knowing that food products are safer in the event of incidental contact with the lubricant. There is significant value in working with suppliers who can provide complete protection across the board, from hydraulics to compressors, greases and gears.

Petro-Canada Lubricants is committed to going beyond today’s standards by offering a complete solution for food manufacturers, providing the benefits they deserve and the food safety they demand.

Petro-Canada is a Suncor business. ™Trademark of Suncor Energy Inc. Used under licence. J 29

I FOOD SAFETY & INTEGRITY

Unravelling the Complexities of Brand Protection NSF International proposes a seven step approach to achieving an integrated, strategically led plan to protect your customers and brands. he Elliott report of T September 2014 made comprehensive recommendations for tackling the problem of food fraud and, importantly, set the tone for industry responses as how best to protect customers, products and brand reputation.

A year on we can see that the food industry has responded swiftly and positively to the fraud issue, recognising only too well that brand protection relies on restoring trust to the consumer and providing reassurance about product authenticity. Businesses have reviewed their food safety regimes, put in place more intense sampling programmes and processes and overhauled their systems. The new issue (v7) of the BRC Global Standard for Food Safety provides increased emphasis on systems to reduce manufacturers’ exposure to fraud through greater transparency in the supply chain.

However, it is clear that there are many competing demands for attention and that simply doing more of the same auditing, certification and testing is ultimately not sustainable, either from a cost, risk management or a practicality point of view.

Smarter ways to address food safety and

The development of a stable, trusted and technically competent supplier base is key to generating ann effective and secure supply chain.

integrity issues have to be found. A major challenge is that fraud needs to be tackled across different business functions with different priorities and responsibilities, including finance, purchasing, operations and quality.

Integrated 7-step Process In response to this NSF has developed its integrated 7-step process, which identifies the potential opportunities for fraud within a company and its supply chains; addresses the vulnerabilities in terms of commercial drivers, buying behaviours, performance measures and company culture; and then puts in place supply chain controls, performance management and training measures.

(See chart above). A primary benefit of this approach is that it provides a strategically FOOD & DRINK BUSINESS EUROPE, OCTOBER 2015

led, step-by-step process that enables all aspects of business activities to be addressed in a progressive way.

NSF can assist businesses with the implementation of the process, using resources that encompass expert consulting with proprietary models and analytical tools, scientific and technical expertise, laboratory testing facilities, auditing, certification and training services.

The important message emerging from the fraud scandals is that it is vital for food businesses to develop an end-to end understanding of their supply networks. The development of a stable, trusted and technically competent supplier base is key to generating an effective and secure supply chain.

For more information contact enquiriesEMEA@nsf.org. J 31

I FOOD ANALYSIS

7th International Symposium on Recent Advances in Food Analysis (RAFA 2015) The 7th International Symposium on Recent Advances in Food Analysis (RAFA 2015) will be held at the Clarion Congress Hotel Prague, in Prague, Czech Republic, on November 3–6, 2015. he RAFA organizers, the T University of Chemistry and Technology, Prague (UCT Prague, Czech Republic) and RIKILT Wageningen UR (The Netherlands), would like to invite all food scientists from academia and industry and representatives of national and international agencies, control authorities, governmental and commercial laboratories to attend this event, being the leading conference in food analysis.

RAFA has grown since it was launched in 2003: the previous event was attended by 800 participants from 63 countries in Europe, Asia, America, Australia and Africa, and supported by more than 50 sponsors, exhibitors and media partners.

The 2015 symposium will provide an overview of the state-of-the-art on analytical & bioanalytical food quality and safety control strategies and introduce the challenges/novel approaches in this field. The following recent & emerging issues will be addressed by RAFA 2015: • Authentication & Fraud • Bioactivity measurements • Flavours & Sensory analysis • FoodOmics • Food forensics • Micro and nano food sensors • Nanoparticles • Organic crops & foodstuffs • QA/QC & Chemometrics & Data interpretation • Allergens • Industrial contaminants • Metals & metalloids • Mycotoxins, marine and plant toxins • Novel foods & supplements • Packaging contaminants • Processing contaminants • Pesticide residues • Veterinary drug residues 32

EU HORIZON 2020 framework program seminar (chaired by an EC representative and supported by the Czech National Contact Point).

The conference program will be accompanied by several satellite events (tentative list): Workshops on novel analytical strategies: • 3rd European workshop on ambient mass spectrometry in food and natural products • Workshop on ‘Infrared and Raman spectroscopy, and chemometrics for monitoring of food and feed products, bringing the lab-to-the-sample’ • 1st European workshop on the analysis of nanoparticles in food, cosmetics and consumer products • Workshop on ‘The application of micro / nano systems in food safety control’ • Workshop on ‘Smart data sets processing in food analysis’.

Interactive seminar – Be active and learn from each other: • On ‘Sample-prep, separation techniques and mass spectrometric detection in food quality and safety: step by step strategies for fast development of smart analytical methods’.

Food authorities’ summit, EU and beyond: • United States Department of Agriculture (USDA) seminar on ‘Food safety issues beyond the EU’ • FAO/IAEA Workshop: Food Safety – challenges for developing countries • European Food Safety Authority (EFSA) information platform on emerging food quality/safety issues of high concern.

Reference laboratories colloquium: • Workshop on ‘Experiences, achievements and challenges of EU Reference Laboratories’.

FOOD & DRINK BUSINESS EUROPE, OCTOBER 2015

Exhibition

An exhibition of the most modern instrumentation recently used in food analysis and other equipment and consumables, reference materials, literature, etc., will be organized during the symposium.

Vendor seminars will be organized to introduce recent commercial instrumentation and scientific strategies for advanced food quality/safety control.

Young Scientist Opportunities

A platform for young scientists will be offered to present their scientific work; typically 20% of the contributed oral presentations will be assigned to the next generation. Also a number of RAFA 2015 Student Travel Grants have been provided. The best poster presentation(s) will be awarded with the prestigious RAFA Poster Award and sponsored poster award(s).

In summary, RAFA 2015 will offer a high quality scientific program with many top quality presentations followed by stimulating discussions, several satellite events, a large state-of-the-art exhibition and an attractive social program. Scientific contributions will be presented by leading scientists through keynote lectures and by contributed oral and poster presentations.

The RAFA 2015 programme will be tailored to provide a lot of opportunities for networking as well as exploration of the latest results of the food analysis community.

Register for participation in the Recent Advances in Food Analysis (RAFA 2015) at www.rafa2015.eu. J

I BREWING

AB InBev Swoops For SABMiller Anheuser-Busch InBev’s recent approach to SABMiller regarding a possible takeover would, if successful, combine the world’s two largest brewers.

B InBev is the world leader with about 21% of the global beer market (by volume sales) while SABMiller with a 10% share ranks second, just ahead of Heineken. The global beer market has been consolidating rapidly during the last decade with the top ten players (see Table) now controlling about 65% of volume sales against 43% ten years ago.

AB InBev achieved revenues of $47 billion in 2014. Headed by its three global brands - Budweiser, Corona and Stella Artois - AB InBev owns 16 brands each generating over $1 billion in retail sales per

A

one of the world’s largest bottlers of CocaCola products.

Some analysts are suggesting that AB InBev will have to pay between £40 ($62) and £45 per share for SABMiller, producing an overall transaction price of up to £84 billion ($130 million), including debt.

Highly Acquisitive Both AB InBev and SABMiller have been highly acquisitive. Following a series of acquisitions valued at $91 billion, the largest being the $61 billion (including debt) purchase of Anheuser-Busch by InBev in 2008, AB InBev has increased revenue by more than fivefold during the last ten years.

However growth is expected to slow during the next decade. The acquisition of SABMiller is the last major deal open to AB InBev. SABMiller has also expanded rapidly through acquisition purchasing almost 50 companies in the last ten years, including Foster’s Group for about $13 billion in 2011. It has grown from its South African roots to become one of the world’s largest brewHeaded by its three global brands - Budweiser, Corona and Stella Artois ers, with brewing interests - AB InBev owns 16 brands each generating over $1 billion in retail and distribution agreements across six continents. sales per year. year. Its global brands are complemented by international brands Beck’s, Leffe and Hoegaarden. The portfolio is completed by local champions, such as Bud Light in the US, Harbin in China, Skol in Brazil, Jupiler in Belgium and Quilmes in Argentina. These leading brands, focused on local markets, are the core of the business.

SABMiller delivered revenue of $26.3 billion in 2014. Although SABMiller has no ‘block-bluster’ brands such as Stella Artois and Budweiser, it still has a formidable portfolio. The group's wide portfolio includes global brands such as Pilsner Urquell, Peroni Nastro Azzurro, Miller Genuine Draft and Grolsch, as well as leading local brands like Aguila, Castle, Miller Lite, Snow and Tyskie. SABMiller is also

Carlos Brito, chief executive of AB InBev.

$4 billion in Asia. As Latin America is SABMiller’s largest market, a deal would considerably broaden AB InBev’s standing in the region. A merger would also facilitate synergy savings in mature markets in order to enhance earnings. A combination of the two brewing giants would also control over half of the global beer profit pool.

Obstacles An AB InBev acquisition of SABMiller would raise competition concerns in certain regions of the world. For instance, the combined businesses would control about 70% of the US beer market, so forcing the divestment of SABMiller’s 58% share in MillerCoors, its joint venture with Molson Coors Brewing Company.

Exposure to Growth Markets SABMiller has the highest exposure of any global brewer to fast growing developing markets, which account for about 70% of group profits. By contrast, about 80% of AB InBev’s profits are generated in four countries - the US, Canada, Brazil and Mexico.

Harnessing SABMiller’s presence in high growth markets such as Africa and Asia would provide AB InBev with fresh impetus and new opportunities for expansion. The addition of SABMiller would give AB InBev revenues of about $7 billion in Africa and about AB InBev is the world leader with about 21% of the global beer market.

FOOD & DRINK BUSINESS EUROPE, OCTOBER 2015

35

World’s Top Ten Brewers, 2014 Company 1 AB InBev 2 SABMiller 3 Heineken 4 Carlsberg 5 China Resources Enterprise 6 Tsingtao Brewery 7 Molson Coors Brewing 8 Beijing Yanjing Brewery 9 Kirin Holdings 10 Asahi Group Holdings Source: Euromonitor International

Similarly, a successful merger would also precipitate the sale of SABMiller’s 49% stake in CR Snow a joint venture with China Resource Enterprises and one of the biggest brewers in China.

European Businesses AB InBev and SABMiller are both major players within the European beer market.

Indeed, both are now headquartered in Europe – AB InBev at Leuven in Belgium and SABMiller in London in the UK where it is listed on the London Stock Exchange, with a secondary listing on the Johannesburg Stock Exchange.

AB InBev’s Europe Zone, which was created in 2014, incorporates five operating

Market Share (Volume Sales) 20.8% 9.7% 9.1% 6.1% 6.0% 4.7% 3.2% 2.8% 2.3% 1.2%

business units - BNL (covering Belgium, Netherlands & Luxembourg); FRITS (France, Italy & Spain); GSA (Germany, Switzerland & Austria); RUK (Russia & Ukraine); and UKI (UK & Ireland). The European business operates 25 beverage plants and generates 13% of global group revenues and 12% of volume (50 million hl of beer).

Employing 16,000 people across 13 countries and 12 time zones, AB InBev’s Europe Zone is market leader in Belgium with a 55.7% market share and where it operates four plants. It has five plants in Germany and ranks sec-

FOOD & DRINK BUSINESS EUROPE, OCTOBER 2015

ond in the beer market with an 8.6% share.

In the UK, the business operates three plants and holds 16.3% of the beer market to rank third.

AB InBev has ten focus brands in Europe. The regional portfolio consists of three global brands (Stella Artois, Budweiser & Corona) and international brands (Beck’s, Leffe & Hoegaarden) in addition to a number of local champions such as Juliper (the top beer brand in Belgium), Hasseroder and Franziskaner in Germany, Sibirskaya Korona and Klinskoye in Russia and Chernigivske in Ukraine.

Headed by Stuart MacFarlane, AB InBev Europe is pursuing a strategy of innovation, premiumization and a philosophy of investing to “win where it matters” to contend with the challenging macro-economic con-

37

Stuart MacFarlane, zone president Europe, AB InBev.

brewing, soft drinks and export operations. SABMiller also exports significant volumes to a further seven European markets, of which the largest are the UK and Germany. In total, SABMiller Europe operates 17 lager breweries and employs 9,800 people. Europe accounts for17% of group net producer revenue, 11% of EBITA and 18% of lager volumes.

A combination of AB InBev’s and SABMiller’s European beer businesses would be complementary. AB InBev’s business is chiefly based in Western Europe while SABMiller’s European operations have traditionally been centred on Eastern Europe.

ditions. Recent innovations include 75 cl bottles for Bud in Russia and Ukraine, Jupiler ‘cold grip’ ribbed cans in Belgium and the launch of Cubanisto, a premium Mega-Deals rum flavoured beer, in the UK, France Speculation about mega-deals of this and Belgium. nature within the global brewing industry Stuart MacFarlane has been zone presi- has been growing in recent years. A possident of the business since January 2014 ble AB InBev acquisition of SABMiller when AB InBev’s Western Europe and was mooted early last year. Last Central & Eastern Europe zones were September, SABMiller made an attempt to combined. He was previously president of buy Heineken in a move that would have AB InBev UK & Ireland before becoming strengthened it against a potential bid by zone president Central & Eastern Europe.

AB InBev. However, the controlling Despite a fall in volume during the year, Heineken family rejected the offer, preferchiefly due to a weak beer industry in ring to remain independent.

Ukraine and Russia, as well as high proUnder the UK takeover code, AB InBev motional pressure in Germany, AB InBev has until 14th October, 2015 to make a Europe’s strategy allowed it to increase formal offer for SABMiller or to walk EBITDA by 1.5% to $1.34 billion for away. J 2014 and to improve the EBITDA margin by 39 basis points to 27.6%, even though revenue was essentially flat at $4.865 billion.

SABMiller’s European business has brewing operations in eight countries – the Czech Republic, Hungary, Italy, Poland, Romania, Slovakia, Spain (Canary Islands) and the Netherlands. In the majority of these countries the company is the number one or two brewer by market share. A combination of AB InBev’s and SABMiller’s European SABMiller Europe covers a further beer businesses would be complementary. AB InBev’s 16 countries including Russia, business is chiefly based in Western Europe while Turkey and Ukraine in a strategic SABMiller’s European operations have traditionally been alliance with Anadolu Efes through centred on Eastern Europe.

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FOOD & DRINK BUSINESS EUROPE, OCTOBER 2015

I DEPALLETISING

AUTEFA Solutions Sweep-Off Depalletizer CERTANT – 100% Fixing of Bottles Reduces Operating Costs he sweep-off depalletizer CERT TANT from AUTEFA Solutions resolves an ever growing problem for filling plants. Normally, bulk glass bottles are delivered on flat intermediate layers. The pallets and glass bottles are protected with stretch films. This means that the rounded corners of the intermediate layers are bent downwards.

The sweep-off depalletizer CERTANT from AUTEFA Solutions fixes and secures the bottle layer during every lifting and sweeping movement. Each bottle layer remains fixed by the centering frame until the sweep-off cycle is complete. The sweep-off depalletizer AUTEFA Solutions Swep-Off Depalleizer CERTANT. from AUTEFA Solutions reduces operating costs and reclamation costs. generation of the sweep-off depalletizer At the beginning of the line the latest CERTANT, based on proven Certus-tech-

FOOD & DRINK BUSINESS EUROPE, OCTOBER 2015

nology, leads to reliable supply of the following machines with the corresponding number of bottles. The sweep-off depalletizer transfers layers of various configurations of round, oval, rectangular bottles onto a discharge table and leads them into the filling process.

With the brand name “Certus” AUTEFA Solutions focuses on fully automatic machines which cover the complete material flow from production machines to the storage of the production in intermediate layers/high bay storage systems with commissioning and dispatch. For the beverage industry the company based in Friedberg, Bavaria has installed several machines all around the world. J

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I CONVEYORS

Rexnord FlatTop is Moving Forward s a global leader in conveying compoA nents manufacture, Rexnord FlatTop is committed to driving efficiencies through its customers facilities with a focused and clearly defined innovation strategy.

Vice President and Business Manager for Rexnord FlatTop, Rick van den Berg.

Headquartered in Wisconsin in the US, Rexnord is a global leader in delivering high quality products under two strategic platforms: process and motion control, and water management. Employing around 8,000 people around the world and with over 120 years of experience, Rexnord has established for itself a robust reputation for delivering innovative, high quality and durable products.

Through a programme of continuous improvement across product development and manufacturing processes, the company aims to consistently create superior value for its customers, shareholders and associates.

Rexnord’s FlatTop division designs and manufactures standard and bespoke conveyor systems for the food and beverage, industrial and automotive markets. The company supplies OEMs, end-users and a network of distribution partners around the world and is currently experiencing significant success as its core markets grow. With global population rising and a middle class expanding in many developing countries, the global food and beverage industry is currently experiencing a period of positive growth, as to is the automotive industry.

“We listen to our customers and their voice is number one,” begins Rexnord VP and Business Manager for FlatTop, Rick van den Berg. “We are also very capable of problem solving. With such a vast bank of expertise and experience we have a reputation for never walking away from an issue.” Rexnord 40

FlatTop places itself firmly in the driving seat of the conveyors industry by delivering the majority of significant innovations and retaining technology leadership across the world.

Innovation focuses revolve around four main drivers: safety, productivity, energy saving and water reduction. In a push to deliver this to the market for the last three years FlatTop has been developing its Engineered Sustainability product programme.

Engineered Sustainability “Engineered Sustainability is a product programme focused on developing and launching solutions around these four central topics,” explains Rick. “It is a product programme that enables our customers to utilize durable conveyor systems with components that guarantee optimum product handling solutions, without compromising the ability to meet our customer’s targets of safety improvements, productivity optimisation, energy savings, product protection and water minimisation.”

By working closely with its customers Rexnord FlatTop deploys its skilled engineers to help obtain low Total Cost of Ownership (TCO), resulting in cost savings by improving the overall operational processes.

Currently sitting amongst the Engineered Sustainability product portfolio is the ZeroGap Multi-flex Chain, which has a patented top plate design to allow for tight side-flexing with no gap opening on the surface. This unique design enhances product performance and results in less tippage, reduced debris trapping and improved safety.

Accompanying this, amongst many others, is the 661 Series Chain which offers improved product handling with smooth running conveyors, optimal bottle stability and low noise levels. A 25 per cent reduction in chain weight also means lower headshaft tension. In October 2015, Rexnord FlatTop will be attending the annual Brau Beviale exhibition in Germany to showcase its Engineered Sustainability product range and will be launching its new generation of low backlinepressure solutions designed to help increase safety, offer optimum product protection and reduce noise levels in packaging conveying.

Innovation Innovation is at the heart of Rexnord FlatTop being able to deliver these industry-leading solutions to the market. “We offer industry standard products, which are designed around the latest industry needs. This is a big portfolio of solutions, which are available off the

shelf for low, medium and high speed bottling and filling,” highlights Rick. “Beside this, especially for OEMs, we are able to utilise and offer customisation to customers to optimise products for specific installations. We have continued our innovation drive in terms of materials as well and have just launched a hybrid material technology by combining engineered plastics with metals.”

To facilitate this level of continuous improvement across the global organisation, Rexnord employs a business operating system, which derives itself from Toyota’s renowned business system. Named the Rexnord Business System (RBS), it ensures that all manufacturing plants around the world are focused on the same strategy. In essence, RBS creates a scalable, process-based framework that focuses on driving superior customer satisfaction and financial results by targeting world-class operating performance throughout all aspects of the business. “In terms of capability, we have metal processing, injection moulding, machining, extrusion, testing, assembly and shipping all done in-house,” outlines Rick. “We also do all of our research and development in-house, which is supplemented by working closely with our global suppliers of resins, metals and technology to ensure we are driving the industry forward in the best way possible.”

The Future “As for the future”, Rick continues: “Over the next year we will be focusing heavily on expanding our Engineered Sustainability offer for primary and secondary packaging applications. We will also be looking to further develop our product offering for the automotive industry. In the longer term, Rexnord is planning to take a leading position in providing and demonstrating manufacturing efficiency by continuing to offer the most reliable and durable products in the industry. Last but not least, we continue to ensure that we are easy to do business with.” J

FOOD & DRINK BUSINESS EUROPE, OCTOBER 2015

I BEVERAGES

BrauBeviale 2015 – The Fair That Connects From 10th to 12th November the who’s who of the international beverages trade world will come together once again for BrauBeviale in Nuremberg, this year's most significant equipment show for the sector.

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round 1,150 exhibitors of raw materials, technology, logistics and marketing will be presenting their innovations and newly developed products to the visitors (2014: 37,200).

BrauBeviale is a must and at the same time a trend barometer for the sector. It presents creative ideas and solution concepts for everyone who is involved in the beverages industry. for: from the right raw materials through to the technology up to logistics and marketing. Exhibitors discuss the customers’ individual requirements with them. Be it machinery and plant engineering for beverages production, filling and packaging beverages or logistics within the company and beyond – together they produce perfectly-tailored solutions for every specific requirement. Ambitious brewers will be participating in the European MicroBrew Symposium the day before the fair. The much-in-demand further training event is jointly staged by NürnbergMesse along with the Versuchs- und Lehranstalt für Brauerei (VLB, Research and Teaching Institute for Brewing, Berlin).

The range of products on display at BrauBeviale covers the entire process chain in the beverages industry. “This attracts experts from all areas of the sector to Nuremberg,” says Andrea Kalrait, Director Exhibitions BrauBeviale. “Brewers and maltsters, but also the producers of other alcoholic and non-alcoholic beverages along with experts from the machinery and plant engineering sector, the packaging industry, retail and catering sectors – in the eight exhibition halls they will all find everything they require for operating their daily business.”

Craft Meets High-tech Quality and efficiency are particularly close to the heart of every beverages producer. At BrauBeviale they find what they are looking

Questions covering all aspects of the PET value-added chain will be answered by PET@BrauBeviale in the form of the PET PASSION WEEK, presented by BrauBeviale and PETnology. The event will be opened by an international, two-day Congress on 9 and 10 November. Of interest to small and medium-sized companies and global players alike: in the PETarena under the motto ‘connecting comPETence’, companies will be presenting their range of products and services for attractive solutions across the entire PET value-added chain. Information on the theme of PET recycling will be provided by the Gütegemeinschaft Wertstoffkette PET-Getränkeverpackungen (Quality Assurance Association Recycling Chain for PET Drinks Packaging).

Marketing Meets Creativity The visit is also worthwhile for marketing experts and sales specialists: in the specialist range of services they can expect to find sparkling ideas covering all aspects of marketing, advertising and services in the beverages sector. In addition, every visitor in the Forum BrauBeviale can quench their thirst for know-how, ask

FOOD & DRINK BUSINESS EUROPE, OCTOBER 2015

41

questions, obtain answers or simply just briefly immerse themselves in the hustle and bustle of the fair. Numerous renowned sector partners have created a diverse program. On the marketing theme the audience will for example receive creative impulses on ‘New brand experiences - Beverage brands that strike a chord (with the consumers)’, ‘Brand experience through design’ right up to ‘Online marketing’ and ‘Wine for beer, what can I recommend you? What can we still learn from wine marketing?’

But the forum will also be presenting talks, explanations and discussions on further themes of great importance to the market: ‘Energy in the beverages sector’, ‘Packaged Water’, ‘Craft Distilling/Craft Spirits’ – and let's not forget the aspect of training and further training. The opening will also take place once again in the Forum. The Private Brauereien Bayern (Bavarian Private Breweries Association), honorary sponsor of BrauBeviale, will be discussing a very topical theme with leading representatives from the sector to mark the 2016 anniversary: ‘500 years of the German Purity Law: Opportunity or straightjacket’.

Retail Meets Manufacturers In addition to the comprehensive specialist range, in its support program BrauBeviale is offering numerous interesting points of contact for visitors from the food retail, beverages specialist trade and the catering sector. The effect will be strengthened this year through the cooperation with PRO FachHANDEL/GES eG, which aims to promote the direct exchange between the breweries visitor target group and the specialist retail.

The Craft Beer Corner, which had its premiere last year, is being further extended. With no worries about the sales and marketing pressure from the suppliers, retailers and caterers can sample new beer specialties here and obtain ideas for extending their own range.

At various bars, in a neutral and professional approach, renowned beer sommeliers, among others Sylvia Kopp, world champion Oliver Wesseloh and Markus Del Monego, will be presenting beers in the hops, malt, yeast and special categories with extra slots for products from the USA, England and Italy. And because the glass shape also influences the sensual experience, this will be impressively and tastefully demonstrated at a further bar.

silver and bronze. www.braubeviale.de/programme.

Craft Beer Meets Streetfood Eating and drinking inevitably belong together. Here it stands to reason that exceptional drinking pleasure should be paired with unconventional food. A promising look beyond the own horizon or rim of the glass is promised for beverages producers, marketing experts and caterers by the SFC Street Food Convention, which is being held within the framework of BrauBeviale for the first time – initiated and organized by the ‘father of the food truck scene’ Klaus P Wünsch. Andrea Kalrait sees clear synergies here: “This is a terrific opportunity for the visitors at both events to enter into discussion with each other and to get networked. Street food is unconventional – similar to Creative Beer Culture, the trend theme at BrauBeviale.”

The two-day event will start on Thursday, the last day of BrauBeviale, and open its doors to the public on Friday afternoon with a Street Food Market.www.streetfoodconvention.de. J

But not only beer has such a diversity and various facets to offer, that is why this year’s BrauBeviale is dedicated to exceptional drinking enjoyment in general. The motto is: “Creative Beer Culture meets Premium Spirits”. Fully in keeping with this, tasting sessions extending beyond beer will also be held. Internationally recognized spirits experts will be familiarizing interested trade visitors with the diversity of whisky, rum, gin and craftsman’s brewed fruit brandies. Last but not least, it is not only about alcoholic beverages – the so-inclined visitor can also put his or her taste buds to the test with a water-sampling session and test the right water for the retailers’ and caterers’ product portfolio.

The driving force behind the trend theme is and remains however the European Beer Star, which has already had its trade fair home at BrauBeviale since 2004. It is part of the fine tradition that on the first day of the fair the visitors choose their favourite beer from the gold medal-winners: the Consumers’ Favourite in gold, FOOD & DRINK BUSINESS EUROPE, OCTOBER 2015

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I BRAUBEVIALE 2015 PREVIEWS

AmbaFlex Spiral Conveyor Solutions – Hall 7 stand 258 hanging markets require lines for liquids to become ever-more C flexible and faster. But at the same time, it’s hard to compromise between changing production needs and your given space constraints. However, there is always a strong need for more effective connections and the most obvious way is to utilise the 3rd dimension. But traditional methods of elevating, accumulating or storing a product flow vertically require space that is often not available, or is not flexible, scalable or continuous.

An option that is gaining in popularity is the spiral conveyor belt, and in particular the SpiralVeyor® by AmbaFlex. Since AmbaFlex invented the spiral conveyor, the company has evolved from a pioneer to market leader.

Even though thousands of AmbaFlex SpiralVeyors are now used around the world, SpiralVeyor® BottleLift - enabling 3-dimensional the company conliquid container flow. tinues to innovate.

AmbaFlex focuses solely on specialized conveyors. A spiral conveyor solution especially designed for each of your applications.

The SpiralVeyor® BottleLift is a specially configured spiral conveyor that is used to elevate or store flows of liquid container items of all kinds. The SpiralVeyor® program is very extensive and features conveyors that are tailored to every application. Fitted with an ultra-flat, medium-friction belt as standard, but also available with a non-friction or high-friction belt if the application so demands. A standard range of belt widths that cover most liquid container needs. A choice of 100 or 140 mm belts have been selected for the Liquid Container Lift configuration. J 44

FOOD & DRINK BUSINESS EUROPE, OCTOBER 2015

I BRAUBEVIALE 2015 PREVIEWS

Can You Handle the Pressure? Packo Pumps Can! he food industry in general is looking T continuously for solutions to increase their production efficiency. Applications with extremely high system pressure

Extreme High Performance to Handle Extreme High Pressure

The new hygienic, high quality and robust pump range, series FPP2 – IPP2 is especially developed to operate under the most severe conditions. It is a fully machined construction in thick stainless steel 316L, suitable for handling an inlet pressure up to 40 bar! Today the pump is available up to 50 m?/h at a differential pressure of 7 bar, higher flow rates will be available very soon.

Typical Packo Pumps quality

become more and more common, especially in filtration processes such as reverse osmosis. As a worldwide partner for the food industry this new tendency has led to a new innovative hygienic Packo pump series FPP2 & IPP2. These hygienic pumps can operate at a maximum inlet pressure of 40 bar, a flow rate of 50 m?/h at a differential pressure of 7 bar. These unique and performant pumps were introduced in the market during the last international shows CFIA, Rennes and Anuga in Cologne. The first reactions were very promising!

For this new development the typical Packo Pumps philosophy has been followed: a construction with standard components such as IEC motors and mechanical seals in accordance to EN12756, a hygienic design with electro polished surface as a standard, etc.

The pump is available in an industrial execution as well for applications where hygiene is less important. Typical applications are reverse osmosis of whey, wine and beer filtration, etc.

designer and manufacturer of sustainable and innovative industrial pumps. Our pumps rank among the best of the world when it comes to hygiene and cleanability.

Packo pumps are also an important link in the reliability and the improvement of the energy efficiency of our customers. To this end, we develop and constantly improve more pumps tailored to our clients, for the most diverse applications.

Our slogan: "We Optimize Your Flow" reflects our ambition to be a valued partner in the optimization of your business processes.

Need more information? Please contact bart.vanbastelaere@packo.com or visit our new website www.packopumps.com Meet us at PPMA on stand B116 and Brau-Beviale on stand 6-343. J

Packo Pumps – The specialist in Stainless Steel Centrifugal Pumps

Packo Pumps is originally a researcher,

Flottweg Presents Strong Complete Solutions for the Beverage Industry odern, proved components comM bined intelligently on a skid – this is the Flottweg Separator AC 1500 to be presented at BrauBeviale 2015 in Nuremberg. With its system design, Flottweg offers the perfect overall solution for a cost-effective production of fruit juice.

The cost-effective production of fruit juice, direct juice, and vegetable juice isn't just characterized by outstanding juice quality. It is just as important to achieve a high raw material yield with the lowest possible complexity in the operation, maintenance, and servicing of the centrifuges, belt presses, and lines used. Here, too, Flottweg System Design sets the benchmark. From planning to layout to engineering, Flottweg offers all solutions

from a single source. The resulting perfectly designed machines are therefore optimum from the standpoint of both performance and reliability.

Flottweg System Design at a glance: * Consulting in separation technology * Process development and optimization * Specification of all process engineering components * Concept, planning and construction of complete separation technology process lines * Installation and start-up * Customer-specific automation and process integration * On request, remote diagnosis for safe monitoring of your process.

Flottweg will be exhibiting on Stand 107 in Hall 6. J FOOD & DRINK BUSINESS EUROPE, OCTOBER 2015

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Timothy Taylor’s – Boilerhouse Revisited Back in August 2014, Timothy Taylor’s completed a £12 million investment programme with the installation of a 10 tonne Yorkshireman2 boiler from Byworth Boilers. ommenting at the time, Andrew C Leman, Timothy Taylor’s Second Brewer, said: “Our existing boiler is now 16 years old and in today’s terms is no longer cost efficient to run. It is also only just keeping up with peak demand and with call for our beers continuing to grow at a pace, the need for a larger more efficient boiler became pressing.”

He added: “Not only will we be able to make considerable savings on fuel but less carbon dioxide will be released into the environment. The existing boiler will be kept on standby to cover during servicing and maintenance.”

Savings Made Now in August 2015, Byworth returns to Timothy Taylor’s to get the low-down from Andrew Leman on the savings they’ve made so far.

“We’ve seen significant energy savings since the new boiler and we think it’s about 13% less gas to brew the same amount of beer. As a business you can invest in capital expenditure and get tax breaks, but your running costs are something that you do need to keep control of all the time so to have them reduced by 13% - that’s a big saving, “ says Andrew Leman.

The Yorkshireman 2 boiler allows 46

Timothy Taylor’s to run their process using either natural gas or light oil. It also includes Byworth’s efficiency enhancing X-ID tubes and a flue gas economiser.

Andrew Leman comments: “We have 50 or more uses of steam around the brewery because there’s lots of little tanks and equipment that need heating up for cleaning etc. and to put a little system in for each of those would be extraordinarily expensive. When you get a multifaceted system of steam that heats various needs, then steam is definitely the best way forward.”

Byworth’s Unique Unity System Taylor’s have joined a growing number of companies opting for Byworth’s unique Unity system; an intelligent, feed-forward control system for their boiler. The staff at Taylor’s now have the same level of visibility of Key Performance Indicators, trend data, and of control within the boiler house that they have enjoyed for a number of years in the rest of the process plant.

The Unity system developed by Byworth replaces the limited functionality of traditional, discrete controls found in most boiler houses with a familiar, userfriendly experience and an unprecedented depth of information.

Andrew Leman explains: “The difference between Unity and the other systems is that it’s all-encompassing. The Unity system gives us much more information about how the boiler’s running.

“Steam usage is part of the information Unity gives you, we have been shown on the screen how much steam is being used at any one time which is great. It’s very

useful because quite quickly you start to see which are your main steam usages including times of day and tasks, for example, boiling up the beer – that uses a massive amount of steam, boiling up well water – that’s the second highest usage; we always expected this was the case but Unity has clarified it with figures.

Andrew Leman.

“Then you can think, well if the idea is we want to run the boiler most efficiently at low flame throughout the day rather than having big peaks and troughs (which is what it usually tends to be), you can help control that with Unity so that is useful.

“The ability to look at it remotely means we don’t have to travel down to the boilerhouse, so that saves me time because if I’m busy first thing in the morning, rather than having to actually go down to the boiler, I can go on my laptop and make sure everything is OK. Overall, it has improved management, time saving and management information.”

Byworth is proud to be part of the process that produces Timothy Taylor’s award-winning beers and we look forward to continuing our long relationship with them. J

FOOD & DRINK BUSINESS EUROPE, OCTOBER 2015

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Energy Optimisation With Scanenergi Solutions

By Julian Hall, Strategic Account Manager – Food sector, Scanenergi Solutions here are fewer industries that operate with the intensity of food T and beverage companies. Production output is for most the key determinant of business success, but when operating in an environ-

implement the identified findings, places the emphasis on the company to find the appropriate mechanism for realising savings.

ment when profit margins are tight, competition is strong and product quality and supply chain effectiveness are a given, there is little available capacity to embrace other initiatives.

Energy Optimisation – ‘A No Brainer’ Energy optimisation is one area within the sustainability agenda that should fall into the ‘no brainer’ category, as it is one of the most effective ways to drive cost out of the business whilst having a positive impact on operating margins.

Of course there is a financial incentive to optimising our energy efficiency, but Danisco's primary reason for launcing this project is sustainability.

– Morten Hygum, Danisco, Denmark.

A lot has been written, said and done in this area over the years.

In fact it is expected that when Scanenergi Solutions engages with a site on a project aimed at driving energy and water waste out of the business, it is rare that a company hasn’t already realised some success stories in this area, whilst inevitably the list of further opportunities tends to be longer.

So, why are so many companies still not maximizing the savings potential from energy and water?

Lack of available resources, limited know-how and restricted capital are typically the underlying reasons why many factories are unable to fully optimize their energy and water consumption. Despite the introduction of EU legislation in the form of the Energy Efficiency Directive (EED) providing a compliance driver to identifying energy savings opportunities, without the requirement to

Ideally we would have the money, time, and resources to optimise our energy consumption. But we don’’t have that or the focus to do it ourselves, so we turned to Scanenergi.

– Pedro Moreira da Silva, Unicer, Portugal.

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So, why are Scanenergi Solutions so confident we can help?

Over the past 15 years we have been assisting food and beverage companies in realising their potential for energy savings. Actually, we are proud to say that our customers cut up to 20% off their annual energy costs, whilst gaining control and insight over their energy consumption and save the environment tonnes of CO2.

We acknowledge and appreciate the reality that businesses have many reasons for not maximising the potential from energy efficiency, and have therefore developed a project model (EnSave®) that encourages rather than prohibits implementation.

Our primary role is to identify energy savings potential, be responsible for the successful implementation and be the catalyst of securing sustainability. We focus on industrial processes based on a “follow-the-money” philosophy. In other words, we focus on where our clients get most savings for the money. This results in a short payback time typically within 3 to 4 years simple payback.

The EnSave® model is designed to ensure optimum implementation of energy saving projects with focus on employee involvement (processes & behaviour), systems (management systems, meters and software) and technology. Our services include energy audits and the implementation of energy saving measures based on a savings guaranteed philosophy. A very important tool in the EnSave® model is our energy management information system, Montage™, which captures, validates, analyses and reports energy performance from equipment level through to management reporting. This process is an integral part in raising awareness amongst the staff and providing a catalyst for changing behaviour.

ESCO and Energy Performance Contracting As an Energy Service Company, we guarantee the energy savings performance, we offer. Put simply, if we can’t meet the savings

FOOD & DRINK BUSINESS EUROPE, OCTOBER 2015

ENERGY

ENVIRONMENT

expectations we initially estimated, we pay the difference. In cases whereby we overachieve and deliver more than the expected levels of savings, both parties benefit. Therefore, the risk is on us and not the customer.

Energy Performance Contracting (EPC) is financing alternative to the standard payment model. Lack of initial capital to perform energy efficiency work is not an obstacle to get started. The con-

We made it a condition that the project did not materially change production and our delivery perforrmance. As Scanenergi Solutions carries out the analysis as well as implements the changes, the packaage sounded very interesting to us.

– Jesper Bolvig, Tulip. Denmark cept uses cost savings from reduced energy consumption to repay the cost of installing energy conservation measures. This way the customers get a positive cash-flow throughout the project and avoids the need to find and plan for capital funding. Our ‘no cure – no pay’ guarantee also applies, with multi-year performance guarantees built-in to incentivise sustainable energy savings initiatives. J

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Fi Europe & Ni 2015 Predicts Largest Gathering to Date For Those Sourcing Food and Beverages Ingredients ith ever-changing and more complex W consumer trends, greater need for safer and healthier food and beverages and higher demands to use purely natural ingredients, today’s food and beverage professionals need greater access to innovative reformulation solutions, new, tastier and better quality ingredients and greater industry thoughtleadership.

For more than 25 years Fi Europe & Ni has provided the world with the leading food and beverage ingredients sourcing platform and in 2015 it will take place in Paris from 1-3 December 2015. In fact over 25% of all annual ingredient procurement budgets for food and beverage manufactures are influenced by a visit to Fi Europe & Ni making Fi Europe & Ni one of the most influential and important 3 day event for the industry.

Returning to Paris Fi Europe & Ni is returning to Paris for a number of reasons. France has the secondlargest economy in Europe, in nominal figures, and is the third-largest food market on the continent, behind Germany and the UK. In addition, France is home to 13,500 food and beverage businesses, which generate more than Eur147 billion in annual revenue and Paris’ strategic geographic positioning only enhances global food and beverage trade. It is therefore the perfect location to bring the food and beverage industry together.

Over 1,400 ingredient suppliers have already been confirmed to exhibit at Fi Europe & Ni, including global powerhouses such as Roquette, Cargill, Brenntag, ADM,

FrieslandCampina, DSM, Naturex, and many more. Leading European food and beverage manufacturers have also already confirmed their attendance including Lactalis and Barry Callebaut.

Best and Biggest Show to Date Leading event organiser, UBM, is predicting a record year for the Paris edition. “Fi Europe is a truly global meeting place for professionals – in 2015 we expect over 27,000 attendees, all of who will be looking to make connections with new business partners and suppliers, as well as learn about the latest innovations shaping their industry. Fi Europe has proven to be the most successful platform for companies who want to successfully position themselves in the vibrant and ever-growing food and beverage market,” says Brand Director, Richard Joyce, who is anticipating the best and biggest show to date.

FOOD & DRINK BUSINESS EUROPE, OCTOBER 2015

Innovation Along with renowned ingredient suppliers, Fi Europe 2015 will also offer thought-leadership and new ingredient innovations showcases. This year will see the return of the New Product Zone which displays the latest products and innovations and gives an inside scope of what is predicted in the future. The Innovation Tours will provide insight on Clean Labelling, sugar and salt reduction solution providers – Fi Europe cataloque. The Global Market Forum will provide workshops and educational seminars surrounding key industry topics, conducted by industry thought-leaders such as EAS, Euromonitor, NVC, Leatherhead, Innova Market Insights. The Innovation and Ingredients Hub will allow exhibitors to present the latest innovations, cutting edge technology and product opportunities. The renowned Food ingredients Excellence Awards are presented each edition, recognising the leading ingredient manufacturers and their latest innovations. The event is colocated with the Food ingredients Europe Conference, which covers issues currently faced by the food ingredients industry and will provide crucial insights into leading scientific innovations, winning marketing

strategies and explore the hottest ingredients trends driving new product development and consumer spending in the F&B industry.

Stay ahead of the curve by registering online now to secure free entry to Fi Global’s biennial flagship event, for more information about Fi Europe & Ni 2015, please visit: www.fi-europe.eu/PRregister. J 51

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Sachsenmilch Milk & Whey Ingredients Presents Solutions For the Sports Nutrition, Dietary and Functional Food Markets achsenmilchLeppersdorf S GmbH is one of Germany`s leading dairy processors and part of the privately owned Unternehmensgruppe Theo Müller. Sachsenmilch Milk & Whey Ingredients will be highlighting its high quality milk and whey proteins specifically for sports nutrition, dietary and functional food markets on Stand 6A45 in Hall 6 at Food Ingredients Europe 2015 in Paris.

Sachsenmilch Milk & Whey Ingredients produces milk and whey proteins, various lactose qualities and natural milk calcium for the food industry and customers within the infant and sports nutrition sectors. The product portfolio includes higher whey proteins like WPC70, WPC80 and WPI as well as micellar casein concentrate

MCC80, each in standard and instant quality. All products meet the quality standards of FSSC 22000 and are available for special dietary requirements, such as kosher, halal and vegetarian.

Sachsenmilch Milk & Whey Ingredients’ high-quality protein products are ideally suited for applications within the fast growing sports nutrition, dietary and functional food markets worldwide. The product portfolio includes various whey protein concentrates and isolates from selected whey sources. The company’s products sold under the GermanProt brand are an excellent source of essential amino acids and BCAA and have an exceptional nutritional quality.

Sachsenmilch Milk & Whey Ingredients also markets a special micellar casein concentrate under the GermanMicell brand.

This product is extracted directly from fresh skimmed milk and has a special casein to whey ratio of 90:10, which makes the product an excellent source of highly enriched protein. All the company’s protein products are available in instant quality, especially for sports and dietary nutrition purposes.

New Lactose Facility Also at Fi Europe 2015, Sachsenmilch Milk

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FOOD & DRINK BUSINESS EUROPE, OCTOBER 2015

& Whey Ingredients will be giving visitors to its Stand a first insight into the high-care production capabilities of its new lactose facility due to commence operation in April 2016.

“The demand for infant and nutraceutical nutrition is showing rapid global growth, especially in China, Southeast Asia and Oceania. With our latest investment in a brand new lactose facility we are further expanding our ingredients business and focus on infant and dietetic markets,” explains Jeroen Derks, Managing Director of Sachsenmilch Milk & Whey Ingredients. “The facility, constructed with state-of-the-art membrane technology, is able to produce special lac-

tose for infant dry mix applications that meet all strict requirements of infant foods and dietary regulation. The technology we’ve incorporated into this facility also provides us with the ability to customize products.”

Constant Investment Indeed, the German dairy company has invested constantly during the last ten years in the latest technology to manufacture more sophisticated and higher quality products. In 2011, it opened a new facility for highly processed milk and whey ingredients.

This investment includes one of the largest state-of-the-art ultrafiltration and microfiltration, and the biggest special spray tower for proteins worldwide. “We continuously invest in our technology to offer more flexible product solutions to our customers. For instance, added value whey proteins have been developed specifically for use in sports nutrition formulae,” Jeroen Derks points out.

With an annual milk intake of more than 1.8 billion kilograms, Sachsenmilch

Leppersdorf GmbH operates as one of the largest single dairy plants in Europe. The unique layout with five dairies under one roof allows the efficient production of fresh dairy products, basic products like milk, butter, cream & cheese and premium milk & whey ingredients.

Competitive Advantage “We also have one of the largest cheese factories in Europe producing about 100,000 tons of semi-hard cheese and mozzarella

annually. Processing the daily fresh whey from our in-house cheese dairies in large scale is a major competitive advantage compared to many other dairies worldwide. That enables us to ensure our customers reliable production capacities and complete traceability of all our raw materials,” he explains.

A further competitive edge is the vast knowledge and expertise about dairy products and milk processing that the company has from being part of parent group Unternehmensgruppe Theo Müller, which operates 14 dairy production sites in 4 countries.

“In our own application center especially for dairy products our highly motivated and passionate research and development team is developing innovative new milk and whey products for food and dairy applications,” says Jeroen Derks. “Our latest product innovation is a whey protein concentrate WPC70 specifically for the use as emulsifying agent in sauces and deli applications.”

For further information visit www.sachsenmilch-ingredients.com. J

Innovative Meat and Soy Alternatives oodMills Innovation will introduce two G new products during FiE (booth 6T38) - Wheat texturates in the form of flakes will complement the WHEATMEAT® core range, allowing for the creation of vegetarian and vegan dishes, minced meat substitutes as well as bakery and snack fillings.

The second innovation is YePea (toasted pea meal), which offers a non-GMO and allergen-free alternative to soy grits. The company will also present its comprehensive Clean Label portfolio of functional flours, process flours and high-fibre milled wheat products.

The extruded WHEATMEAT® flakes are characterised by their high water binding capacity and are especially suitable for

adding texture and structure to bakery and snack fillings as well as for the production of meat-free hamburger patties. Based on high-protein wheat fractions, the flakes can achieve end products with up to 76 per cent protein, depending on the amount used. Thus, snacks and dishes containing WHEATMEAT® flakes can form a valuable part of a healthy diet, particularly for the growing number of vegetarian and vegan consumers.

GoodMills Innovation’s second new product, YePea (an abbreviation of yellow pea) is derived from the yellow-podded snow pea. This almost forgotten legume was rediscovered by the company during a research project. The new product is an alternative to soy grits, which are often used in baking mixes, bread recipes and small baked goods to improve texture. The toasted and coarsely ground peas enhance water binding capacity and provide a soft texture.

Additionally, baked goods gain an appealing nutty flavour. Allergen labelling on the end products is not required. YePea’s raw materials, all of which are non-GMO, are grown in Europe.

“We are delighted to be able to use FiE as a platform for our two latest product launches,” says Michael Gusko, Managing FOOD & DRINK BUSINESS EUROPE, OCTOBER 2015

Director of GoodMills Innovation. “By offering tasty meat alternatives and ingredients that are free from allergens and genetic engineering, we are enabling manufacturers to respond to current trends in different ways. Our wide-ranging portfolio is the ideal base from which to create innovative concepts. Whether the aim is health, wellbeing, Clean Label or process optimisation, our products are suitable for versatile demands and positionings.”

GoodMills Innovation has its headquarters in Hamburg, Germany. It is a joint venture between Europe’s leading milling enterprise, the GoodMills Group, and the global ingredients manufacturer Palsgaard, which is based in Denmark. For further information visit www.goodmillsinnovation.com. J 53

I FI EUROPE 2015 PREVIEWS

Emulsifiers, Stabilizers and Know-how at Food Ingredients Europe 2015 lobal emulsifier specialist G Palsgaard is once again ready to share its expertise with food manufacturers at FIE (booth 6P14). Here the company will showcase a number of its emulsifiers and emulsifier/stabilizer blends, each custom designed for use within cake mixes, industrial bakery, chocolate, dairy, ice cream, mayonnaise, dressings and margarine. In addition, Palsgaard will present new inspiration for finished products based on the company’s emulsifiers.

Try Palsgaard’s Recipe For a Sugar- and Gluten-free Devil’s Food Cake Cake mix and retail mix manufactures will be in for a real treat as Palsgaard will share its latest inspirational recipe developed by the company’s expert bakery application technologists – a recipe for a Devil’s Food Cake that is both gluten- and sugar free as well as super moist and very delicious.

Replacing sugar as well as gluten is no easy

feat as both ingredients have functional properties in a cake – gluten offers stability and sugar mouth-feel and sweetness to name a few.

“This doesn’t mean that it can’t be done, but it requires serious development efforts – and a good emulsifier to start with – to develop a cake that is every bit as moist and tasty as the original, if not more so,” explains Arne Pedersen, Palsgaard’s Product

& Application Manager for Bakery & Confectionery.

“The finished cake has a very low carbohydrate content of only 25 grams per 100 grams, compared to the 40 – 50 grams of carbohydrates usually found in this type of cake, and has a very low content of saturated fats and no trans-fats at all, so we’re looking forward to sharing this recipe and the possibilities it offers with our customers,” Arne Pedersen elaborates.

Palsgaard invented the commercial emulsifier a century ago – and hasn’t stopped inventing since! Our research and development activities reflect a double-edged approach to innovation, comprising ground breaking research as well as practical trials in our global application centers. Here we not only help customers create new products or improve existing recipes – we also put ourselves to the test in order to find solutions and innovations that present new product applications for our customers. J

Outsourcing Services – All From One Provider n Stand 6F 29 at FiE in Paris, O SternMaid will be showing various possibilities of outsourcing manufacturing processes. From the optional purchase of raw materials, through blending and processing, copacking and warehousing to delivery of the goods, the contract manufacturer offers the whole service chain from one source. With its comprehensive range of plant and machinery the company is well equipped to produce powdered foods, food supplements and ingredients and package them as the customer wishes.

With fluid bed technology, SternMaid can specifically influence the particle structure of the products and thus their potential for applications. It extends the services offered by the company to include gentle drying, spray granulation, agglomeration, instantization and coating.

The products that emerge from a fluid bed dryer dissolve and disperse much better in 54

liquids than spray-dried powders. That makes the goods easier to handle, because the particles have better flow properties, can be portioned well and are practically dustfree.

SternMaid has also commissioned another fully automated can filling line that greatly increases the plant’s capacity. The equipFOOD & DRINK BUSINESS EUROPE, OCTOBER 2015

ment enables the contract manufacturer to handle up to 90 composite (wound), tin or plastic containers per minute. The line is designed for filling food supplements and granulated, extruded or powdered foods. In addition, a further automated blending line with an annual capacity of around 10,000 tonnes will come into service early in 2016.

Mark Riemer, Commercial Director of SternMaid, comments: “For contract manufacturing you need specialists who can offer an allround service. Our customers realize that well-considered outsourcing can reduce the workload on their own company and release capacity. In principle we clear the way for their core activities such as research, development and marketing.

Customers can either take advantage of the whole service package or choose individual modules, depending on their requirements.” J

I FI EUROPE 2015 PREVIEWS

Innovative Concepts For Appealing Products t Stand 6P24 in Hall 6, Sensient A Flavors will present a broad range of flavors, inclusions, sauces and options for healthy yet tasteful fat, salt and sugar reduced products.

According to its motto: ‘We bring life to products’, the Sensient team invites visitors to experience a whole new world of natural flavors and extracts, as well as a broad portfolio of sauces, inclusions, fillings and on-trend value added flavor systems. In the “Trends to Taste” section, Sensient will display an entire collection of flavor solutions, ranging from traditional berry options to more exotic and unusual variants including floral notes for products with a wellness positioning. Also on display will be functional flavors and proprietary technical solutions that enable sugar, salt,

fat and calorie reduction without compromising on taste. “Tasting is believing,” says Simon Daw, Marketing Director at Sensient, “so we invite manufacturers of all kinds of food and drink products to come to our stand and explore Sensient’s fantastic world of exciting flavors and technologies.”

Sweet Temptations For Confectionery and Dairy Products Flavored Caramels will be one of the taste highlights of FiE: with bespoke textures and viscosities, Sensient’s innovative Flavored Caramels range can be used as fill-

vor variants. For cocktail lovers, examples of low-alcohol RTD with a reduced flavor-masked alcohol burn, as well as reduced-sugar concepts are available. Sensient demonstrates how APSS (All-Purpose Sweet Solutions) and Smoothenol can make low-calorie drinks with our without alcohol just as indulgent as the real thing.

ings for premium chocolates, candies, pralines and chocolate bars, as well as a broad range of dairy products such as yoghurt, ice cream and chilled or frozen desserts. The combination of high quality caramel with natural extracts and exciting flavors allows for new taste sensations, including fruit flavors, spiced chai variants, zesty salted orange or spicy notes such as cardamom, cinnamon and ginger extract, to mention just a few.

Also available as low calorie versions, inclusions or decorations, Sensient’s sumptuous Flavoured Caramel range is a real innovation that’s ready to be tasted.

Flavor Trends For Beverage Innovations Sensient’s beverage experts will present a whole range of flavorings and sweetening systems for all kind of drinks, from carbonated soft drinks, functional and flavored water drinks to alcoholic beverages and coffee. Visitors to the stand can enjoy a selection of freshly brewed flavored ground coffee variants, including vanilla, caramel and spiced orange. With sugary drinks under the spotlight, Sensient offers low sugar or sugar-free “Juicy Water” concepts, such as samples with sucralose in berry and floral flaFOOD & DRINK BUSINESS EUROPE, OCTOBER 2015

Taste Sensations For Savoury Products By maintaining taste while reducing sodium and fat, Sensient will showcase just how good “healthy” savoury food can taste. For seasonings, soups, sauces and dressings, ready meals, processed meat, cheese, snacks, canned products and many more, Sensient´s Taste Sensations range comprises flavoring solutions that enhance the umami sensation and compensate for salt and fat reduction in terms of taste and mouthfeel. These functional flavors are vegan, free from calories, salt and MSG, palm oil and GMOs, produced using the company’s own, high quality raw materials and ingredients and, of course, their flavoring expertise. The Umami Enhancer improves mouthfeel, allows a clean label declaration and can easily be added to existing flavor concepts. The Long Lasting Enhancer makes fat reductions of up to 30% possible without compromising on taste, whereas the clean label Sodium Replacer is perfect for salt reduced products (up to 30%) and also acts as a masking agent for off notes. J

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The Show is Finally Over For Poor Quality Gluten-free Products omplaints about dry, crumbly glutenC free bakery products could soon be a thing of the past, thanks to a natural milk protein-based solution developed by Arla Foods Ingredients. The market for glutenfree products is going through the roof in both Europe and the US, driven predominantly by the perception that they are healthier and can aid weight loss. Sales in both regions grew 20% during 2014, to reach a value of Eur1.5 billion in Europe and $20 billion in America.

However, it remains the case that glutenfree bakery products often perform poorly in terms of taste and texture. Nutrilac® proteins for gluten-free products is a solution that addresses this problem directly,

offering a natural solution that guarantees end-products with an excellent structure that do not compromise on sensory quality.

It is 100% gluten-free and simulates the protein structure and functionality of wheat gluten, resulting in bread and cakes that have the soft and elastic crumb that consumers are seeking.

John Kjaer, Global Sales Manager for Bakery at Arla Foods Ingredients, says: “Gluten-free is huge right now, but such strong sales growth won’t be sustainable if products don’t taste nice, because eventually consumers will drift away. The winners in this category will be bakery companies that can make gluten-free bread and cakes that are virtually indistinguishable from

their conventional equivalents. Many people will tell you this is impossible – but it’s not. With Nutrilac® proteins for glutenfree products, perfect gluten-free bread and cakes are a reality. The show’s finally over for poor quality gluten-free products.” J

I COCOA

Farmer Cooperatives in Cote d’Ivoire to Benefit From Access to Affordable Funding armer cooperatives in Cote d’Ivoire are F set to benefit from access to affordable, commercial finance as a result of a first of its kind initiative supported by Cargill and the International Finance Corporation

Some of the brand new trucks being made available to cocoa cooperatives under the new scheme from Cargill and IFC.

(IFC). The mid-term commercial loans will be provided by the Ivorian bank SIB and are being made available to graduates from the Cargill Coop Academy to enable cooperatives to lease brand new trucks that will allow farmers to more easily transport their cocoa beans to markets. On the 9th 56

September, 43 cooperatives each took delivery of their own brand new truck – a major step towards becoming more professional - at a local ceremony in Abidjan, Côte d’Ivoire.

This project, which is unprecedented in the cocoa sector, is the latest initiative under the Cargill Cocoa Promise and marks a major milestone towards professionalising cooperatives and empowering the farmer organisations to invest in their own futures. So far, 43 cooperatives have applied to participate in the initiative and will result in 78 new trucks being leased in the first year alone.

Logistics can be a big challenge for farmers and their cooperatives - the cost of transporting cocoa beans to market; poor road infrastructure damaging vehicles; maintaining and repairing old trucks and lack of access to any funding to update vehicles is hindering the success and efficiency of some farmer organisations.

Investing in better transportation is key for cooperatives to grow and sustain their businesses. However funding options are limited and mostly of a very short term which FOOD & DRINK BUSINESS EUROPE, OCTOBER 2015

does not allow for the financing of capital goods.

This initiative is the latest development of the partnership between Cargill and the IFC, which last year successfully extended the Cargill Coop Academy in order to expand access to advanced business skills training to over 300 cooperative leaders in Cote d’Ivoire.

These new commercial mid-term loans are backed by Cargill with a very competitive interest significantly lower than current available loans and can be taken for a three year term – making these loans not only the first of a kind but also one of a kind.

“Up until this point farmers and their cooperatives have not had access to affordable finance in order to grow, improve or sustain their businesses”, says Lionel Soulard, Managing Director West Africa Cargill Cocoa & Chocolate. “This is a really exciting development as access to finance and to better transportation will make a critical difference to the success of the cooperatives. Successful cooperatives are critical to the future of cocoa farming and cocoa communities.” J

Please visit us at FIE Europe Paris December 1st – 3rd 2015 on Stand 6B19