Food and drink business europe, february 2016

February 2016

Food & Drink Business Website:

www.fdbusiness.com

C o n t e n t s

- 3 M ERGERS & A CQUISITIONS

- 26 M ARKET F OCUS

Coverage of British and international deals.

Lager struggles to retain its fizz as consumption drops in Britain.

P AGE 13 PAGE 3

- 7 C OVER S TORY

Alexandre Ricard, CEO, Pernod Ricard.

Europe’s Top 100 food & drink manufacturers.

- 45 S NACKING

Cees ‘t Hart, CEO, Carlsberg Group.

New $5.2 billion snacking giant created.

R EGULARS Energy & Environment . . . . . . . . . . . . . . . 19

- 11 S NACKING

Bottling & Packaging. . . . . . . . . . . . . . 23-25

Mondelez International is Europe’s second ranked food & beverage manufacturer.

PAGE 7

Stefan Descheemaeker, CEO, Nomad Foods.

- 13 B REWING

PAGE 15

Chris Hood, President, Kellogg Europe.

Materials Handling . . . . . . . . . . . . . . . 29-42 Conveyors & end of Line Technology

Information Technology . . . . . . . . . . . . . . 43 Storage & Logistics . . . . . . . . . . . . . . . . . 47

PAGE 45

Materials & Ingredients . . . . . . . . . . . . . . 48

Murat Ülker, Chairman, Yildiz Holding.

Challenging times for Carlsberg in Europe.

Managing Director: Colin Murphy Editor: Mike Rohan

- 15 C EREALS & S NACKS

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

Kellogg Company to fuel growth in Europe.

PAGE 9

Production Manager: Sylvia McCarthy

Roelof Joosten, CEO, FrieslandCampina.

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

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- 17 C ONSUMER F OODS Technological innovation gives Kerry Group a competitive edge.

- 21 S OFT D RINKS Europe’s Top 100 soft drinks companies.

PAGE 11

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FOOD & DRINK BUSINESS EUROPE, FEBRUARY 2016

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M E E R R G G E E R R S S M Brown-Forman to Sell Southern Comfort and Tuaca Brands For $544 Million Brown-Forman Corporation, the US-based international spirits group, has agreed to sell its Southern Comfort and Tuaca trademarks to Sazerac, one of New Orleans’ oldest family owned, privately held companies, for $543.5 million. The decision to sell these brands reflects Brown-Forman’s evolving portfolio strategy and a continuation of its efforts to focus resources on its highest strategic priorities. Brown-Forman has actively managed its portfolio over the last decade by developing, acquiring and divesting specific brands and categories with the aim of improving the growth and value creation prospects for its business.

Brown-Forman has marketed Southern Comfort since acquiring the brand in 1979. The company acquired Tuaca in two transactions, completing the purchase in 2002. The sale of these brands is expected to close

by March 1, 2016 resulting in a one-time operating income gain for Brown-Forman of approximately $475 million in fiscal 2016. The transaction is subject to regulatory clearance in the US and customary closing conditions.

Diamond Foods Acquires Stake in UK Popcorn Business US-based snack food manufacturer Diamond Foods has acquired a 26% stake in Metcalfe’s skinny, owner of Metcalfe’s skinny Popcorn, a premium ready-to-eat popcorn brand in the UK. Metcalfe’s skinny markets its branded range of products in the fastgrowing better-for-you snack and popcorn categories, predominantly in the UK. The

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

Metcalfe’s skinny existing management team will continue to operate the company as an independent subsidiary. Diamond Foods sells its products under five different widely-recognized brand names: Diamond of California, Kettle Brand and KETTLE Chips, Emerald and Pop Secret.

"We are very excited to acquire an interest in Metcalfe’s skinny, which is an incredibly innovative, fast-growing, premium brand appealing to 'foodie' consumers looking for lighter great tasting snacks,” says Ashley Hicks, managing director of KETTLE Chips UK. “We look forward to working with the management team to support their future growth ambitions in the on-trend, high growth popcorn snack category in the UK." Diamond is financing the investment through cash on-hand.

Pernod Ricard Adds Craft Gin to its Portfolio French wine and spirits company Pernod Ricard, via its German affiliate Pernod Ricard Deutschland, is acquiring a majority share of the dry-gin brand Monkey 47, from German company Black Forest Distillers. The closing of the transaction is subject to approval by the relevant competition authorities. With this investment, Pernod Ricard expands its portfolio further into the fast growing super premium gin category. Monkey 47 is already a very successful gin having won over many loyal consumers in the past years.

“There are moments in life in which you know immediately that you have found a jewel.

And Monkey 47 is a jewel, perfectly matching the rising worldwide demand for craft gin with strong local roots. We share the same values that have

driven the success of Monkey 47, such as authenticity, entrepreneurial spirit and passion for quality”, says Alexandre Ricard, chairman and chief executive of Pernod Ricard.

Alexandre Ricard, chairman and chief executive of Pernod Ricard.

Carlsberg Sells Danish Malting Business The Carlsberg Group has signed an agreement regarding the sale of Danish Malting Group to Viking Malt. The transaction is expected to be finalised within few months, subject to approvals by relevant anti-trust authorities. The transaction is in line with the Carlsberg Group’s ambitions of disposing of noncore assets, improving return on invested capital and reducing financial leverage. The sales price is not disclosed.

DMG has 88 employees and operates three malting plants (one in Denmark and two in Poland) with a combined annual capacity of 220,000 tonnes and an annual turnover of approximately DKr700 million (Eur94 million).

American Hedge Fund Invests £163 Million in Bakkavor Group Baupost Group, a Boston-based US hedge fund, has invested £163 million in acquiring a stake in Bakkavor Group, the UK’s biggest prepared fresh foods supplier. Bakk AL Holdings, a company owned by brothers Agust and Lydur Gudmundsson, respectively chief executive and chairman of Bakkavor, will continue to control approximately 89% of the outstanding shares group.

There will be no changes to day to day operations of Bakkavor, the management board or other senior management positions.

Agust Gudmundsson com-

FOOD & DRINK BUSINESS EUROPE, FEBRUARY 2016

ments: “I am delighted to welcome The Baupost Group to Bakkavor. They are globally recognised as highly successful long term investors and are supportive of the company’s continued expansion plans.”

Bakkavor employs over 18,000 people globally and produces over 5,500 products in 18 different categories. In the UK, it is the number one producer by value in 13 of the 16 categories of chilled food it supplies to the market. Products include ready meals, pizzas, salads, desserts, soups and sauces.

Customers include some of the UK’s best known grocery retailers including Tesco, Marks & Spencer, Sainsbury’s, Waitrose, Asda and Morrisons.

Bakkavor also has operations in Continental Europe, the US and Asia, supplying fresh prepared food products to both retail and foodservice customers.

Agust Gudmundsson, chief executive of Bakkavor Group.

Arla Foods Takes Over Westbury Dairies Arla Foods has taken over full ownership of Westbury Dairies, Arla’s joint venture with UK dairy co-operative First Milk.

The joint venture company, located at Westbury, Wiltshire, operates the country's most modern skimmed milk powder and bulk butter production facility.

First Milk has shared access of the site in various joint ventures for over 12 years, dating back to 2003. Arla Foods became a partner in the joint venture in September 2010 and purchased the freehold of the site in December 2013.

The move marks a further step for First Milk in reshaping its business. The new agreement will enable First Milk to continue to have access to the powder drying capacity at the Westbury 3

M E E R R G G E E R R S S M site during peak milk production and at other pre-defined times of the year.

Taking full ownership of the joint venture is a strategic move for Arla Foods and a natural step to providing the business with an opportunity to optimise its manufacturing footprint in the UK. Peter Giortz-Carlsen, executive vice president of Arla Foods UK, comments: “Arla has just launched Strategy 2020 in which we aim to grow our business in eight global dairy categories and six market regions around the world. The Westbury site is now an integral part of that global network of Arla production sites and will benefit from being so, further helping the UK to play an even

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

more significant role in our global strategy.”

Peter Giortz-Carlsen, executive vice president of Arla Foods UK.

Emmi Consolidates Position in German Organic Sector Swiss dairy group has taken full control of Glaserne Molkerei, a leading organic milk processor in Northeast Germany. Emmi purchased a stake in Glaserne Molkerei back in 2012.

Following the trend towards natural, sustainably produced dairy products, Emmi has acquired the remaining shares in the company for an undisclosed price.

Emmi is the largest producer of organic dairy products in Switzerland and is carrying forward its involvement in this segment abroad. Examples include the lactose-free organic dairy products from US firm Redwood Hill Farm & Creamery, the organic and Demeter-certified desserts of Italy-based Rachelli and – its biggest undertaking – Glaserne Molkerei’s full product range.

Emmi began collaborating with Glaserne Molkerei in 2012 after acquiring a

minority stake in the company.

It built on this in 2014 when it increased its holding from 24% to 76%, before taking over the company fully on 20. January 2016. With a workforce of around 100 staff and two sites in Munchehofe (Brandenburg) and Dechow (MecklenburgWest Pomerania), Glaserne Molkerei generates sales of just under Eur100 million.

I INTERNATIONAL TRADE

New Great British Food Unit Launched to Boost Exports Great British Food Unit has been A established by the UK Government to turbo-charge UK food exports and support industry growth plans. The Food and Drink Federation estimates exports of manufactured foods will go up by a third to £6 billion by 2020.

From Weetabix to Rwanda, Cadbury chocolate fingers to the Bahamas and Yorkshire Tea to China, famous British brands are taking on the world. The launch

4

of the new Great British Food Unit will back industry targets to further boost exports and support even more British companies such as Taylors of Harrogate, Nestle and Mr Kipling export overseas potentially generating an additional 5,000 jobs in food and drink manufacturing.

The long term ambition of the new unit is to match France and Germany, which both currently export more than double the UK in terms of the value of food and drink. For the first time ever it will bring together experts in exports and investment from Defra and across Government to help even more businesses sell their world class produce around the globe.

The UK already has an international reputation for excellence and as a place to invest in. The unit will support further Foreign Direct Investment (FDI) into the

FOOD & DRINK BUSINESS EUROPE, FEBRUARY 2016

UK food industry which stood at a record £60 billion in 2014 – nearly a third of all FDI assets in UK manufacturing.

For example, in 2012, Bright Food China’s second largest food manufacturing company – bought 60% of Weetabix for £1.2 billion due to growing consumer markets in Shanghai, Guangzhou and Nanjing.

The iconic cereal is now reaching breakfast tables in 80 countries worldwide, including Africa, Germany, Spain and North America, with the Bright Food deal set to open markets in East and Western Africa. These deals create and secure more jobs for UK workers. J

COVER STORY

Europe’s Top 100 Food & Drink Manufacturers Food & Drink Business Europe presents its second annual ranking of the Top 100 food and drink manufacturers in Europe, compiled by Food for Thought, the market research provider of strategic information for the food and drinks industries around the globe.

T

he Top 100 league table ranks the ultimate holding companies of the leading food and drinks manufacturers according to market shares for end retail and food service channels by value across 24 European countries.

The Top 10 players control 12.8% of the total European food and drink market, while the Top 100 companies hold 37.1%.

Nestlé, the world’s leading food group, heads the league table ahead of Mondelez International (see Page 11), PepsiCo and Unilever. All five are broadly based food and drinks businesses. Lactalis (ranked 5th) is the largest specialist dairy group, while Coca-Cola (6th) with its European bottling partners is Europe’s leading soft drinks producer.

Pernod Ricard Paul Bulcke, chief executive of Nestlé - Europe’s (11th) is the top top food and beverage manufacturer. spirits group in Europe just ahead of Diageo in 13th place and Bacardi (21st).

Heineken (L'Arche Green) in 8th position is Europe’s top brewer, ahead of 10th ranked Carlsberg (see Page 13). Of course, Europe’s other leading brewers AB InBev (16th) and SABMiller (24th) are in the process of merging their global operations.

Brewing Transformation AB InBev’s $106 billion acquisition of SABMiller, which is expected to be completed in the second half of 2016, will transform and European and global beer markets. A combination of AB InBev and SABMiller will combine the world’s two largest brewers to create a group generating revenues of $64 billion and controlling about 31% of the world beer market (by volume sales), well ahead of second ranked Heineken on 9%, and holding an even higher proportion (about 50%) of the global profit pool. The transaction represents one of the top five mergers in corporate history.

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 and SABMiller’s European beer businesses are complementary.

Stefan Descheemaeker, chief executive of Nomad AB InBev’s business is chiefly based in Foods.

Western Europe while SABMiller’s European operations have traditionally been centred on Eastern Europe. However, in order to address potential regulatory considerations, AB InBev is currently exploring the sale of a number of SABMiller’s European premium brands and related businesses. This encompasses the Peroni and Grolsch brand families and their associated businesses in Italy, the Netherlands and the UK and also UK-based Meantime Brewery.

Frozen Foods Two major deals have altered the dynamics of the European frozen foods market. Iglo Foods, Europe’s largest frozen food business with iconic brands including Birds Eye in the UK and Ireland, Iglo in Germany and other continental European markets, and Findus in Italy, was sold for Eur2.6 billion by private equity group Perm-ira to Nomad Hol-dings (ranked 14th), a publicly-listed acquisition company. Iglo subsequently changed its name to Nomad Foods, and

FOOD & DRINK BUSINESS EUROPE, FEBRUARY 2016

Ramon Laguarta, chief executive of PepsiCo Europe.

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Europe’s Top 100 Food & Drink Manufacturers Company Ranking

Ultimate Holding Company

Market Shares** Europe Cumulative

Company Ranking

Ultimate Holding Company

Market Shares** Europe Cumulative

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Nestle Mondelez PepsiCo Unilever Lactalis Coca-Cola Barilla L'Arche Green Mars Carlsberg Pernod Ricard Danone Diageo Nomad Yildiz Holding AB InBev Schelko-vohleb Agro Invest Fazer Arla Bacardi Dr.Oetker Dymov SAB Miller Shuanghui /Sigma Muller Lion Capital Danish Crown Friesland Campina Soparind Bongrain Sodiaal Veronesi Cherkizo-vo Group Agrofert Boparan Roberto Ind. Alim.

Berkshire Bel Kellogg's Bigard Bonduelle ABF Dole Suntory Lindt & Sprungli Pomona Fleury Michon DeOleo Yasar Holding Orkla

2.34% 1.55% 1.41% 1.35% 1.23% 1.10% 1.07% 0.99% 0.93% 0.82% 0.79% 0.79% 0.71% 0.68% 0.60% 0.59% 0.56% 0.54% 0.54% 0.51% 0.45% 0.45% 0.43% 0.42% 0.41% 0.37% 0.37% 0.34% 0.33% 0.33% 0.33% 0.31% 0.31% 0.31% 0.30% 0.30% 0.30% 0.29% 0.29% 0.29% 0.28% 0.28% 0.27% 0.25% 0.24% 0.24% 0.23% 0.23% 0.22% 0.22%

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CFP Brands Klin Meat Factory OMPK Kerry Group General Mills Ferrero LDC Laita Premier Foods Maret Optimum Lant-männen Kolbasa Obninsk Limagrain Molson Coors Migros Coop Mikoyan Meat Inter-snack Valio Eurodon Fyffes Chiquita Black-stone&PAI Brown-Forman Pavlov Sloboda Andros Saturn Nordic Bernard Matthews GSI Oak Leaf Rublev-skiy Tat Gida LVMH Myasoprom Korovino Aerzener Brot Und Kuchen Bahlsen ABP Food Vion Agama Group Campari Guta Group Constel-lation Shuanghui Ebro Foods Del Monte Fresh Produce Orvital Organik McCain SUG Hisar Kahve

0.22% 0.22% 0.22% 0.21% 0.21% 0.21% 0.20% 0.20% 0.20% 0.20% 0.20% 0.20% 0.19% 0.19% 0.19% 0.19% 0.18% 0.18% 0.18% 0.18% 0.18% 0.17% 0.17% 0.17% 0.16% 0.16% 0.16% 0.16% 0.15% 0.15% 0.15% 0.15% 0.15% 0.15% 0.15% 0.15% 0.15% 0.15% 0.15% 0.15% 0.15% 0.15% 0.15% 0.15% 0.15% 0.15% 0.14% 0.14% 0.14% 0.13%

2.34% 3.89% 5.30% 6.65% 7.87% 8.97% 10.04% 11.03% 11.96% 12.78% 13.57% 14.36% 15.07% 15.75% 16.35% 16.94% 17.51% 18.05% 18.59% 19.10% 19.55% 19.99% 20.42% 20.84% 21.25% 21.63% 22.00% 22.34% 22.67% 23.00% 23.33% 23.64% 23.94% 24.25% 24.55% 24.85% 25.14% 25.44% 25.73% 26.03% 26.31% 26.59% 26.86% 27.10% 27.35% 27.59% 27.82% 28.05% 28.28% 28.50%

* Coverage: Europe (24 countries): Countries: Austria, Belgium/Luxembourg, Bulgaria, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Ireland/Eire, Italy, Netherlands, Norway, Poland, Portugal, Romania, Russia, Slovakia, Spain, Sweden, Switzerland, Turkey and United Kingdom.

Products: All 156 country & product markets ** Market shares are for end retail and foodservice markets by value, based on weighted averages of value market data and retail and foodservice buy-in prices.

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FOOD & DRINK BUSINESS EUROPE, FEBRUARY 2016

28.72% 28.94% 29.16% 29.37% 29.58% 29.79% 30.00% 30.20% 30.40% 30.60% 30.80% 31.00% 31.19% 31.39% 31.57% 31.76% 31.94% 32.12% 32.30% 32.48% 32.66% 32.83% 33.00% 33.16% 33.32% 33.48% 33.64% 33.79% 33.95% 34.10% 34.26% 34.41% 34.56% 34.72% 34.87% 35.02% 35.17% 35.32% 35.47% 35.62% 35.77% 35.92% 36.07% 36.21% 36.36% 36.51% 36.65% 36.79% 36.94% 37.07%

Permira retained a 9% stake in the business.

Nomad Foods has since extended its European footprint with the acquisition of Findus Group's continental European businesses in Sweden, Norway, Finland, Denmark, France, Spain and Belgium for £500 million. These operations include the Pierre Laubies, chief executive of Jacobs Douwe intellectual property and commercialisaEgberts. tion rights to the Findus, Lutosa, and La Cocinera brands in the respective markets. The remaining part of the Findus Group, including Young's Seafood in the UK, was not part of the deal.

New Soft Drinks Combination The soft drinks market in Western Europe was also transformed during the year when Coca-Cola Enterprises (CCE), Coca-Cola Iberian Partners (CCIP) and Coca-Cola Erfrischungsgetranke (CCEAG), a wholly owned subsidiary of The Coca-Cola Company, agreed to combine their businesses into a new company called Coca-Cola European Partners (see Page 21). The deal created the world’s largest independent Coca-Cola bottler based on net revenues. €3.8 Billion Coffee Deal Another major deal in the European beverages sector entailed Mondelez International and DE Master Blenders 1753 merging their respective coffee businesses, including Mondelez International's coffee portfolio in France, to create Jacobs Douwe Egberts (JDE), the world's leading pure-play coffee company with annual revenues of more than Eur5 billion.

Based in the Netherlands, JDE hold market leading positions in 18 countries globally and owns some of the world's leading coffee brands, such as Jacobs, Tassimo, Moccona, Senseo, L'OR, Douwe Egberts, Kenco and Gevalia.

Mondelez International received cash of approximately Eur3.8 billion and a 44% interest in the new joint venture.

Acorn Holdings, owner of DE Master Blenders 1753, holds a 56% share in JDE. Acorn Holdings is owned by an investor group led

by JAB Holding Company in partnership with BDT Capital Partners, Quadrant Capital Roelof Joosten, new chief executive of Advisors and Societe FrieslandCampina.

Familiale d’Inves-

tissements.

Following the deal, Mondelez International has become an even more focused snacking company, with approximately 85% of net revenues derived Ronald Kers, chief executive of Muller Group. from biscuits, chocolate, gum and candy. By retaining a significant stake in JDE, however, Mondelez International will continue to benefit from future growth of the coffee category.

Highest Climber The highest climber within the Top 100 is Yildiz Holding, Turkey’s largest food which has move from 58th place in the 2015 rankings up to 15th in the current table, following its £2 billion acquisition and subsequent integration of United Biscuits from private equity firms Blackstone Group and PAI Partners.

Yildiz Holding has just combined its global chocolate and biscuits businesses, which include United Biscuits, Godiva, DeMet's and Ulker, under a new umbrella called Pladis (see Page 45). Already the world’s third largest biscuit manufacturer and a leading international player in chocolate confectionery, the newly created snacking giant employs 26,000 people and has annual sales of $5.2 billion. Y›ld›z Holding produces chocolates, biscuits and all types of confectionery in 77 factories across 14 countries.

Dairy Market Deregulation A major change to impact on the European food and beverage industry during the past year was the abolition of EU Ranjit Singh, chief executive of Boparan Holdings milk quotas in April (ranked 35th) - the parent company of 2 Sisters 2015. Many of the Foods Group which is the UK’s largest grocery dairy processors fea- market supplier and one of the largest privately turing in the Top owned food groups in Europe.

100, including Lactalis, Arla Foods (20th), Muller (26th) and FrieslandCampina (29th), have been investing heavily in additional capacity to handle the expected increase in milk production, while consolidating their positions through mergers and acquisitions as they seek to expand further into emerging markets with stronger growth potential.

They have been amongst 120 companies, which have invested a total of Eur5.5 billion in 190 projects to expand dairy processing capacity across the EU between 2012 and June 2014.

Almost half of the total investment was spent on the processing of dry dairy ingredients such as milk and whey powders, with the majority of these facilities in the Netherlands, Germany, Ireland and France.

Other key product categories to receive investment include cheese (Eur1.02 billion or 18% of the total investment figure), milk and dairy drinks (Eur650 million or 12%), yoghurt and chilled products (Eur330 million or 6%) and butter (Eur100 million or 1.8%). J

FOOD & DRINK BUSINESS EUROPE, FEBRUARY 2016

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I SNACKING

Mondelez International is Europe’s Second Ranked Food & Beverage Manufacturer

Hubert Weber, president of Mondelez Europe.

Now focused on its biscuits and confectionery operations following the divestment of its coffee business to create Jacobs Douwe Egberts, Mondelez International is the second largest food manufacturer in Europe, behind market leader Nestle. panning 33 countries, Mondelez International’s European business is market leader in both chocolate confectionery and biscuits and also holds leading positions in gum and sugar confectionery (candy). Employing 26,000 people, Mondelez International’s European operations generated net revenue of $14 billion in 2014. According to Food For Thought, Mondelez International has a 1.55% market share of the European food and drink market (24 countries).

Mondelez International owns seven billion-dollar confectionery and biscuits brands - Cadbury, Cadbury Dairy Milk and Milka chocolate, LU, Nabisco and Oreo biscuits, and Trident gum. Its European portfolio also incorporates 25 century-old brands.

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European Presence The global snacking giant’s European business is divided into four regions - Northern Europe, Western Europe, Southern Europe and Central Europe.

In Northern Europe, Mondelez International employs 6,000 people and operates ten manufacturing sites, which produce its famous Cadbury, Freia, Marabou, Bassett’s and Trebor confectionery brands, as well as belVita, Oreo and Ritz biscuits.

Mondelez International became the largest confectionery producer in Europe and globally following its $19.5 billion acquisition of UK-based Cadbury in 2010.

Employing more than 4,000 people and encompassing five manufacturing plants, the UK business plays a central role in Mondelez International’s global and European operations.

Mondelez International is the leader in the Nordic chocolate confectionery market with local brands such as Marabou and Freia. The group also operates three research and development facilities in Northern Europe including its Global Centre for Chocolate Research and

Development at Bournville in the UK – the traditional home of Cadbury - where every new chocolate product created by Mondelez International in the world starts life.

Employing close for 7,000 people, Mondelez International’s operations in Western Europe encompass 19 production plants and a European Biscuit Research and Development Centre at Saclay in France.

The Saclay facility supports product development for many of Europe’s most beloved biscuit brands, including LU, belVita, Oreo, Mikado, Prince, Saiwa and TUC.

Mondelez International’s European business is market leader in both chocolate confectionery and biscuits and also holds leading positions in gum and sugar confectionery.

In Southern Europe, Mondelez International operates across 15 countries, employing 3,500 people at 19 locations, including ten manufacturing sites.

Chocolate production is centred at Svoge in Bulgaria and in Greece, while candy is manufactured at Valladolid in Spain. Biscuits are produced across a number of production sites - Capriata d’Orba in Italy, Granoller and Viana in Spain, and Mem Martins in Portugal.

Rapid Expansion Mondelez International has been expanding rapidly in Central Europe, where it currently operates 19 manufacturing sites and employs almost 10,000 people. The company’s plant at Bern in Switzerland produces the iconic Toblerone brand, which is FOOD & DRINK BUSINESS EUROPE, FEBRUARY 2016

exported to more than 120 countries globally. The Milka brand is produced at plants in Bludenz in Austria and Lorrach in Germany, which make over 1 billion chocolate bars a year.

Central Europe also plays a key role in product innovation with a global Research & Development Centre for Gum & Candy located in Munich. Mondelez International has also recently invested $15 million to establish a global research and development centre in the Wroclaw area of Poland. This centre’s focus ranges from chocolate and biscuits, to consumer science and package design.

Constant Investment Mondelez International has invested heavily in its European operations as part of its ongoing strategy to create a global best-inclass integrated supply chain by transforming its manufacturing assets and processes to reduce costs and improve productivity.

Indeed, Mondelez International has invested over $1.5 billion in its European manufacturing operations since 2010.

For example, Mondelez International has spent more than £130 million on its UK operations since acquiring Cadbury in 2012. Elsewhere in Europe, the US-based group has invested $50 million over the past three years in the development of the Szekesfehervar chocolate plant in Hungary and over $100 million in a state-of-the-art biscuit manufacturing plant at its Opava site in the Czech Republic.

The development of the Opava factory builds on $240 million investment across Mondelez International’s European biscuits network since 2010, including sites in France, the UK and Central Europe. In Poland, Mondelez International recently opened a new $30 million state-of-the-art chocolate production line at its Skarbimierz plant.

Ongoing capital spending includes £75 million on upgrading the Cadbury factory and headquarters at Bournville. J 11

I BREWING

Challenging Times For Carlsberg in Europe Faced with adverse trading conditions in its main markets in Eastern Europe, Carlsberg Group is focused on efficiency improvements across is operations as its consolidates its position in developed markets in Western Europe, while continuing to expand in emerging marks like Asia. arlsberg Group is Europe’s second largest brewer, behind Heineken, and ranks fourth globally. Its business is focused on three global regions - Western Europe, Eastern Europe and Asia, where it has strong market positions and its own operations. The rest of the world is supplied through licence agreements or exports. The Danish brewer has developed an impressive portfolio of international premium brands - Carlsberg, Tuborg, Kronenbourg 1664, Grimbergen and Somersby cider – supported by local power brands.

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Cees ‘t Hart, chief executive of Carlsberg Group.

European Business Carlsberg Group is the second largest brewer in Western Europe, a region characterised by mainly mature markets where beer consumption is flat or in decline. The company is following a two-pronged approach in the region aimed at increasing market share through improved value management, superior in-store execution and driving international and local premium brands; and simplifying its business model, increasing efficiencies and taking out costs while providing superior customer service and top-quality products.

In Eastern Europe, Carlsberg Group is the clear leader in Russia, the region’s main beer market, and also leads in Belarus and Azerbaijan. In Ukraine, the second largest

market in Eastern Europe, Carlsberg holds a strong second position. However, both Russia and Ukraine face socio-political and economic uncertainties. Indeed, weakness in the Russian and Ukrainian beer markets is undermining Carlsberg Group’s global beer volumes.

For instance, the Russian beer market has declined by more than 30% since 2008. In response, Carlsberg closed two of its ten breweries in Russia last year to reduce operating capacity.

Carlsberg Group’s main focus in Eastern Europe is to continue to strengthen its Russian business and drive market share gains while securing value through value management, driving international and local premium brands, and superior commercial execution.

Carlsberg Group has been Russia’s largest brewer since 2008 when it gained full control of Baltika. At that time Baltika controlled almost 40% of the vast Russian beer market and Eastern Europe generated close to half of Carlsberg Group’s total profit.

Eastern Europe is expected to generate less than 20% of group profit in 2015.

Operating Model The world’s fourth largest brewer has adopted a GloCal (short for global and local) operating model, which entails focusing on globalising, optimising, centralising and standardising processes across the group while recognising the strength of local brands and initiatives. Carlsberg Group also seeks to maintain a strong position in its markets to benefit from economies of scale and to increase profitability. The group is well balanced in its exposure to growing, emerging markets and mature markets to ensure sustainable cash flow generation. The brewer avails of the high returns in mature markets to help fund expansion in growing beer markets.

However, weak financial results in Western Europe and Eastern Europe, which were only partly offset by strong Asian results, have prompted Carlsberg Group to revise its 2015 earnings expectaFOOD & DRINK BUSINESS EUROPE, FEBRUARY 2016

tions. It now expects organic operating profit to decline slightly compared to previous predictions of mid- to high-single-digit growth. Carlsberg has also warned about brewery closures and further rationalisation of its operations.

Strategy Carlsberg Group is continuing to invest in its brands and markets to capture the longterm opportunities in Western and Eastern Europe and Asia. In response to the current challenging market environment, Carlsberg Group is refining its business model in order to achieve further efficiency improvements faster. These changes are designed to allow Carlsberg Group to mitigate the significant negative earnings impact arising from the rouble weakness and trading difficulties in Eastern European, while improving cash flow and return on invested capital.

Meanwhile, Carlsberg Group is continuing to strengthen its position in its Asia and Western Europe regions. For example, in Greece it recently merged its Greek subsidiary, Mythos, with Olympic Brewery, the country’s third largest brewer. The combined company is a strong number two in the Greek beer market with a market share of around 29%. Carlsberg owns 51% of the joint venture and the current shareholders of Olympic Brewery hold the remaining 49%. J

Carlsberg Group ranks 10th in the Top 100 Food & Drink Manufacturers in Europe.

13

I CEREALS & SNACKS

Kellogg Company to Fuel Growth in Europe Ranked 39th within Top 100 food and drink manufacturers in Europe, Kellogg Company’s European business is a major player in breakfast cereals and snacks with annual sales of $2.9 billion. ellogg Company’s European territory covers roughly 70 countries and its portfolio encompasses about 30 brands including Kellogg’s, Special K, Kellogg’s Frosted Flakes, Kellogg’s Corn Flakes, Rice Krispies and Pringles. The cereals business generates 60% of European sales with snacks, centred on its Pringles and wholesome snacking portfolio, accounting for 40%.

Kellogg Europe has been concentrating on developing sales in faster growing emerging markets, primarily Russia and Arabia – the Arabic speaking countries in the Gulf region and North Africa. While developed markets still represent 80% of Kellogg Europe’s turnover, emerging markets have grown from sales of about $60 million to $450 million since 2000.

Arabian business and double its Russian business over the next five years.

Kellogg globally is part way through the implementation of Project K, a four-year cost reduction and efficiency improvement programme designed to deliver estimated annual savings of between $425 million and $475 million by 2018. This focus on financial management has significantly improved the performance of its European operations over the past few years.

K

Transformation “In Europe, we have been on a transformational journey over the past three years, really starting with the Pringles acquisition,” explains Chris Hood, president of Kellogg Europe. “Where we had a model prior to that that was primarily a single-category model, concentrated in what we think of as Western Europe; and today we have a business model which is two categories concentrated across the entire European geography, including the Middle East as well as Russia.”

The $2.69 acquisition of Pringles, the world's second largest player in savoury snacks, in 2012 nearly tripled the size of Kellogg's international snacks business. The acquisition also significantly advanced Kellogg's strategic goal of building a global snacks business on par with its global cereal business.

Development Strategy Kellogg’s strategy both globally and within

Chris Hood, president of Kellogg Europe.

its European territory is to drive long-term growth in its core cereal business, while also seeking to become a global player in snacks.

Kellogg Europe is also planning to continue to drive growth in emerging markets in Russia and Arabia.

Winning in the breakfast cereal category will entail stabilising the core business, including the UK operation and the Special K brand which have been underperforming, and expanding in growing segments such as muesli, granola and hot cereal. For example, Kellogg recently launched a range of mueslis and granolas in the German market and now plans to expand them into the Nordic region and other countries in Europe.

Kellogg will also continue to increase the consumption occasions for cereals beyond traditional breakfast time.

Growth in snacks will be powered by the Pringles business, which has doubled its size in Europe over the last ten years, and by developing further in wholesome snacks, chiefly focused on cereal bars and milk bars.

“We've grown gross profit margins significantly, and our operating profit margins have gone up 250 basis points since 2012,” he says. Kellogg Europe plans to leverage this strong economic structure to drive profitable growth for the company.

Looking ahead, Chris Hood expects Kellogg Europe to achieve low-single digit net sales growth. This will be achieved by delivering low-single-digit growth in the developed markets, like the UK and France, and high-single-digit growth in the emerging markets of Arabia and Russia. In terms of sector growth, Kellogg Europe is targeting low-single-digit growth in its developed cereal categories, and mid-single-digit growth in snacks. J SPONSORED BY

Major Growth Potential There are about 1.2 billion consumers within Kellogg’s European geography. “Today we only serve about 400 million of those consumers with Kellogg products, so we have a massive opportunity for growth by driving penetration in areas where we're not serving those consumers with our brands,” Chris Hood points out.

Indeed, Kellogg Europe plans to triple its FOOD & DRINK BUSINESS EUROPE, FEBRUARY 2016

15

I CONSUMER FOODS

Technological Innovation Gives Kerry Group a Competitive Edge Kerry Group, Ireland’s largest indigenous food company, ranks 54th in Europe’s Top 100 Food & Drink Manufacturers league table. eadquartered in Tralee, Ireland, the Eur5.75 billion turnover Kerry Group operates 126 production facilities across 26 countries and employs 24,000 people. The company’s products are sold to 140 countries worldwide.

Since the commissioning of its first manufacturing plant in Listowel in 1972, Kerry Group has developed from a small, Irish regional dairy co-operative into a Eur5.75 billion turnover business and become the largest player within the $50 billion global ingredients and flavours market, as well as being a significant producer of consumer foods.

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Kerry Group is a world leader in the development and supply of taste and nutrition technologies and systems.

Consumer Foods Kerry Group is a leading manufacturer of added-value branded and customer branded chilled foods to the UK and Irish consumer foods markets. Kerry Foods operates within the meat products, dairy products and meal solutions categories. The company owns the number 1 and 2 sausage brands in Great Britain. It is the largest branded dairy supplier in Ireland, owning

the top spreads and cheese brands.

In Great Britain, it is a leading customer brand supplier, ranking first in frozen ready meals, chilled ready meals and ready to cook.

Although by far the smaller element of Kerry Group, contributing just over a quarter of group revenue and 17% of trading profit, the Consumer Foods division is still a substantial business with sales of Eur1.51 billion in 2014 and trading profit of Eur125 million in 2014.

Kerry Group is a leading manufacturer of added-value branded and customer branded chilled foods to the UK and Irish consumer foods markets.

Ingredients and Flavours Contributing 74% of group sales in 2014 and an even higher proportion (83%) of group trading profit, Kerry’s Ingredients & Flavours business specialises in the development, manufacture and delivery of innovative Taste & Nutrition Systems and Functional Ingredients & Actives for the global food, beverage and pharmaceutical markets. The functional ingredients portfolio includes emulsifiers, hydrocolloids, yeast, proteins, enzymes, cultures and fermented ingredients. Beverage systems include beverage flavours and bases, syrups and sauces, and brewing ingredients.

Development Kerry Group has steadily expanded through a combination of acquisitions and organic growth. Between 2000 and 2014, Kerry Group completed 150 acquisitions, including 57 in flavours and 33 in other food and beverage technologies, as it developed its Taste & Nutrition platform.

Significant deals of this nature include the $130 million purchase of Beatreme Food Ingredients in 1988, the acquisition of DCA for $402 million in 1994 and Dalgety Food Ingredients for £335 million in 1998. Since 2000, major deals have included the acquisitions of Quest Food Ingredients for $440 million in 2004, Cargill’s global flavour business for $230 million in 2011 and the recent $735 million purchase of three US-based businesses - Red Arrow Products, Island Oasis and FOOD & DRINK BUSINESS EUROPE, FEBRUARY 2016

Biothera Inc’s Wellmune operation.

On the consumer foods side, key deals include the Eur391 million acquisition of Golden Vale in 2001, the 2009 purchase of Breeo Foods and the acquisition of Noon Products for £124 million in 2005.

Technological Edge Kerry Group’s success has been built on a total commitment to ongoing technological innovation in all sectors of its business, providing integrated customer-focused product development. The group invests heavily in highly focused research, development and application centres of excellence. This gives Kerry a ‘technological edge’ in its chosen sectors, allowing it to proactively meet customer and market needs.

Indeed, to better serve its global and regional customers in Europe, the Middle East and Africa, Kerry Group recently invested Eur100 million to establish a Global Technology & Innovation Centre at Naas in Ireland.

Kerry’s ingredients and flavours business and Kerry Foods are complementary.

Kerry Foods provides first-hand experience and knowledge of the consumer foods market, which is helpful for the group in developing ingredients and flavours solutions for the food industry. Conversely, Kerry Group’s expertise in the supply of taste and nutrition technologies and systems can be harnessed for product development by Kerry Foods. J 17

ENERGY

ENVIRONMENT

I GREEN BUILDING

IPN-QuadCore – Delivering Enhanced Fire and Thermal Performance From Insulated Panels nce upon a time, strong environmental ratings for a building O were considered nice-to-haves – the preserve of clients with big budgets and architects with significant design responsibility.

However, advances in environmentally-friendly building technology, coupled with a strong business case for sustainability, have effected a market shift that is pushing the environment up the agenda like never before.

Even discounting the impact of tightening building and energy regulations, the increasing prevalence of building assessment methodology ratings in the property market has been enough to drive this change.

BREEAM and LEED Accreditation Interestingly, more and more stakeholders view BREEAM and LEED accreditation as fundamental attributes for their buildings, as vital indeed as location, floor space and construction cost. The traditional view has been that these certifications increased the kerb appeal of premises – helping to seal the deal when all the other boxes were ticked. But increasingly, the market is recognising the financial gains associated with enhanced thermal performance and sustainably constructed buildings.

So how will the industry respond to the market’s desire for better buildings? First, we need to define a truly environmentally-friendly building. Broadly speaking, it is one that will have a minimal impact on its surrounding environment and contribute positively to the wider world.

To achieve this goal the environmentally friendly building should reduce energy consumption to a minimum, be constructed

using products that mitigate environmental impact with a low carbon footprint, that will perform for the duration of a building’s desired life, and finally, that can be readily recycled when the building has finished it functional life.

New Technology Kingspan’s new high performance insulated panel meets all of these needs, by utilising revolutionary new hydrid IPN-QuadCore technology. IPN Quadcore delivers industry-leading thermal performance, delivering significantly reduced energy consumption. While its superior fire protection and unique structural and thermal performance guarantee ensure it will perform as-built for 40 years.

Finally, the unique microcell technology developed by Kingspan Insulated Panels ensures the manufacturing process is as efficient as possible, and every IPN-QuadCore panel can be fully recycled at end-of-life to ensure no building waste ends up in landfill.

All of this not only means that IPN-QuadCore adds six valuable BREEAM points to a building, it also potentially adds value, with a recent University of Maastricht study showing the cumulative impact on rental yields of environmentally-friendly buildings1.

This results in better buildings that work harder for owners and tenants, and a better environment for everyone.

1 Supply, Demand and the Value of Green Buildings, Chegut et al, http://usj.sagepub.com/content/51/1/22.abstract.

Please contact Kingspan to discover how IPN-QuadCore technology can enhance the environmental performance of your project - Tel 00353 42 96 98500, E-mail aidan.doyle@kingspan.com or visit www.ipn-quadcore.co.uk. J

FOOD & DRINK BUSINESS EUROPE, FEBRUARY 2016

19

I SOFT DRINKS

Europe’s Top 100 Soft Drinks Companies Consolidation is continuing within the European soft drinks industry with the top five players now controlling 44% of the market (24 countries). oca-Cola is the clear leader New Soft Drinks Combination with a market share of 20.01% The soft drinks market in Western Europe has been recently transformed after three followed by PepsiCo (10.64%), Coca-Cola bottlers - Coca-Cola EnterpriNestle (4.77%), Suntory ses (CCE), Coca-Cola Iberian Partners (4.29%) and Danone (4.11%), accord(CCIP) and Coca-Cola Erfrischungsing to Food for Thought – see Table. getranke (CCEAG) (a wholly owned subCoca-Cola and PepsiCo also rank first sidiary of The Coca-Cola Company) and second respectively within the soft agreed to combine their businesses into a drinks market globally.

The Coca-Cola Company’s local botnew company called Coca-Cola European tling partners in Europe are Coca-Cola Partners. The deal created the world’s European Partners, which concentrates largest independent Coca-Cola bottler on markets in Western Europe, and based on net revenues.

Coca-Cola HBC, which is focused With more than 50 bottling plants and chiefly on Central and Eastern Europe. employing about 27,000 people, CocaPepsiCo is Europe’s number one Cola European Partners serves a consumer juice company, the leader in RTD tea population of over 300 million in 13 counwith its Lipton joint venture with tries across Western Europe, including Unilever, and is the second biggest cola Andorra, Belgium, France, Germany, company. Of course, PepsiCo is also Great Britain, Iceland, Luxembourg, the continent’s top savoury snacks proMonaco, Norway, Portugal, Spain, Sweden ducer. and the Netherlands. The combined comNestle and Danone specialise in water Nobuhiro Torii, president and chief executive of Suntory pany operate in the four largest markets for and rank first and second respectively Beverage & Food. non-alcoholic ready-to-drink beverages in within Europe and also globally.

Western Europe – Germany, Spain, Great Suntory of Japan is Europe’s fourth biggest soft drinks company Britain and France. and is also a major global player. Following its $16 billion acquisiOn a pre-synergy, pro forma basis, for 2015 the combined tion of Beam, the US-based global spirits group, in 2014, Suntory company’s annual net revenues are expected to be approximately is also one of the world’s leading alcoholic beverage companies. $12.6 billion with $2.1 billion of EBITDA and $1.6 billion of operating income with a volume of 2.5 billion unit cases.

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Muhtar Kent, chairman and chief executive of The Coca-Cola Company; Sol Daurella, executive chairwoman of Coca-Cola Iberian Partners; and John Brock, chairman and chief executive of Coca-Cola Enterprises, toast the creation of Coca-Cola European Partners.

Industry Consolidation The mega-merger continues the ongoing process of consolidation within the European soft drinks industry. Other recent deals of this nature include Suntory’s £1.35 billion ($2.24 billion) acquisition of nutritional drinks brands Lucozade and Ribena in 2014, and the merger of Refresco and Gerber Emig in November 2013.

Suntory has been a major player within the European soft drinks market since its $3.86 billion acquisition of French beverage company Orangina Schweppes Group in 2009. The acquisition of the Ribena and Lucozade business, including the production site at Coleford in England, from healthcare group GlaxoSmithKline has further strengthened its market standing both in Europe and globally, and added about £500 million in sales.

Created following the merger of Refresco and Gerber Emig, Refresco Gerber is the leading European bottler of soft drinks and fruit juices for retailers and branded customers. Having successfully listed on Euronext Amsterdam, Refresco Gerber is now focusing on pursuing organic and acquisitive growth opportunities within Europe and beyond. J

FOOD & DRINK BUSINESS EUROPE, FEBRUARY 2016

21

Top 100 Players in the European Soft Drinks Market, 2016 Market Shares** Company Ranking

22

Ultimate Holding Company

Europe

Cumulative

Market Shares** Company Ranking

Ultimate Holding Company

FOOD & DRINK BUSINESS EUROPE, FEBRUARY 2016

Europe

Cumulative

ACMI Signs the Fastest Soft Drinks Lines in the World anlubang, 60 km away from Manila: this was the plant chosen by the CocaC Cola Femsa giant to install the world’s fastest PET lines for soft drinks. With a daily production of nearly seven million bottles, the four lines installed by ACMI represent the highest technological development of the sector. Of these four lines, two have a nominal filling production of 81,000 bottles per hour (line 7 and line 8), while the other two stop at 63,000 bottles.

Line overview.

Complete Line ACMI was responsible for the design and management of the four Canlubang lines ensuring the success of the project within the time required by the customer: from the blowing-filling-labelling block, the only part not supplied by ACMI, to the realization of the finished pallet. Unlike lines number 7 and 8, which manage only one 250 ml format at a speed of 81,000 bottles per hour, the other two lines are multiformat.

Fenix Shrinkwrapper The four shrink wrappers installed at Canlubang all belong to the 295 series, a series designed for packaging with film

Fenix shrinkwrapper with external box and automatic changeover system.

only, on two lanes, at a maximum speed of 95 packs per minute per lane. The infeed system used for the Femsa shrink wrappers is the so-called “thirty degrees with recirculation” which allows a high production speed associated with low pressure on the bottles. Thanks to this ingenious system, the bottles are laned quickly towards the wrapping area, while those in excess are conveyed on a recirculation loop that reintroduces them into the infeed flow a few meters back. Among the major innovations introduced by ACMI is the complete renewal of the shrink-wrap oven that is probably one of the most critical aspects of any shrink wrapper. In fact, both the energy consumption and the quality of the pack depend on the correct configuration of the oven. ACMI has invested heavily in recent years in order to guarantee an outcome to the expectations of the customer by working both on the electric resistances and on the flow of air inside the tunnel.

Automatic Film Changeover All four shrink wrappers installed are equipped with the automatic film changeover system. It is a major breakthrough that comes from the “Compact Line” project and has already found many applications in the mineral water and soft drink industries. The two shrink-wrap film reels are placed in an external box, in the immediate vicinity of the shrink wrapper.

When the shrink wrapper finishes the reel in use it loads the second reel automatically in a time of about ten seconds. At this point, the operator has all the time necessary to replace the finished reel with a new reel, without interfering with the performance of the machine that has already resumed production. The operator who intervenes on the external reel box is also in a completely safe situation, well away from the moving parts of the shrink wrapper.

Twisterbox The palletising system revolves around the Twisterbox®, an ACMI patent for the continuous layer formation. The two 81,000 single format lines are each managed by a model with two grippers, while the multiformat lines require a three gripper model.

The Twisterbox system allows the preparation and formation of the layer ensuring high production speed combined with FOOD & DRINK BUSINESS EUROPE, FEBRUARY 2016

Faster palletiser and Twisterbox® layer formation system.

exceptional delicacy in the management of the product. The system can be configured with one, two or three gripper modules the fastest configuration available - and is fully automatic. All format changeover operations are handled by the operator panel and do not require any mechanical intervention; this ensures a good speed of execution and a significant reduction of errors. The four Twisterbox® systems installed in Canlubang are associated with the high level infeed Faster model palletiser.

Rocket Pallet Stretchwrapper All the lines finish with the Rocket model rotating pallet stretch wrapper equipped with a one meter high reel and automatic change over system of the pre-stretching group. The distinctive element of the system is the electronic pre-stretching group, which, thanks to specific algorithms, is able to handle the plastic phase of the film granting high stability of the pallet and a minimum consumption of material. The system reaches a maximum pre-stretching value of 400% and can be accessorised with both the antidust or the hermetic “waterproof” type system. J

Rocket pallet stretchwrapper with electronic pre-stretching system.

23

Innovation on the Menu at UK’s Biggest Packaging Show ackaging Innovations, the UK’s leading packaging event, returns to Birmingham’s P NEC on 24 & 25 February 2016, alongside Empack and Label&Print, covering the whole packaging spectrum. Visitors can expect to discover an abundance of product launches and new packaging solutions, in addition to a wealth of new show features.

A prestigious line-up of packaging and brand professionals has been unveiled as part of the show’s conference programme, with keynote speakers including SABMiller plc, Innocent Drinks, Britvic, Kraft Heinz, Taylors of Harrogate, John Lewis, Wilkos, JML Group and Quorn Foods.

FMCG Focused Learnshops The ‘skills gap’ is unarguably one of the biggest threats to modern day workplaces and one of the most hotly debated topics; to explore this challenge a panel of experts will contest ‘Closing the packaging skills gap’.

Graham Fox, Packaging Operations Team Leader at Innocent Drinks, among many others, will debate how the packaging needs of food and drink retailers are changing; where is the most pressing need for packaging innovation; and how do skills across the packaging supply chain need to evolve to meet these changing needs?

Food waste is another hot topic, with an estimated 89m tonnes of food being wasted every year in the EU, and expected to rise to around 126m tonnes by 2020. So appropriately, Marcel Keuenhof, Packaging Expert and Waste Reductionist, at Kraft Heinz will be sharing his insights on ‘Combating food waste through packaging’.

The UK’s convenience channel is set to continue as one of the 'hot channels’ as increasingly packaging needs to be sure it meets the specific needs of this sector.

Addressing this, and drawing on his brand experience when it comes to ‘grabbing’ the attention of convenience shoppers, is Adam Margolin, Marketing Director, Retailer, Brand Strategist, Author, and 24

formerly Head of Marketing with SPAR and McColl’s.

Lynn Butterworth, Procurement Manager, at Quintessential Brands will discuss ‘how suppliers can help to drive packaging innovation in brands’. While, Marcus Wilson, Owner of Little Fingers Organic Baby Food Co, who will be interviewed by Kate Fischer, Account Director – Creative at Sun Branding Solutions, will provide real-life insight into the brand and packaging story behind Little Fingers.

Show Features New for 2016 will be an array of show features, including The Great Innovation Debate, The Innovation Showcase and The Rising Star Scheme. Plus, show favourites including The BIG Print Debate, the Pharmaceutical and Retail Symposiums will all be returning due to popular demand.

The show will also welcome back The Drinks Symposium, after its popular debut last year. It will see expert speakers from Arkikie Highland Estate, Tomatin Distillery, Ballantine's at Pernod Ricard, PRC and Air Innovations Design Agency exploring the power of packaging.

Exhibition Hall As always, innovation is set to take centre stage, with numerous exhibitors using the show to present new products and solutions to key decision makers and senior packaging figures. For instance Skanem will be launching its new intelligent labels, which will enable consumers to interact directly with the brand, brand owners and its retailers, using smart phone technology. Skanem will also debut its new peel ‘n’ read label with multicolour pages on the inside.

Roisbros will be launching a new series of boxes for hot & cold food portions, salads and oily products called the Special Delivery series.

For those particularly focused on the food industry, Waddington Europe will be showcasing Hydrozorb (H-PET), its new packaging material with altered characteristics.

For anyone interested in visiting, free registration can be found at www.easyfairs.com/PIUK, www.easyfairs.com/EmpackUK and www.easyfairs.com/Label&PrintUK or via the show team on +44 (0)20 8843 8800 or PackagingUK@easyfairs.com. J

FOOD & DRINK BUSINESS EUROPE, FEBRUARY 2016

Bosch Packaging Technology Receives WorldStar 2016 he Two-in-One biscuit packagT ing system is to receive the WorldStar 2016 packaging award.

be changed for the purposes of switching between pack formats.

This kind of capability allows food The award is presented annually by manufacturers to introduce differthe World Packaging Organisation ent formats and special sales cam(WPO). Essential to the assessment paigns at very short notice, addressis for a product to combine innovaing fast changing consumer tion with outstanding execution. demands.

The jurors evaluated a total of 293 As part of the Bosch portfolio, projects from 35 countries across the entire system – from product ten categories. distribution right through to primaThe Two-in-One biscuit packaging system from Bosch can easily The official award ceremony will ry and secondary packaging – has change from slug to pile formats - as well as adjusting pack sizes ? take place in May 2016 during the been designed as a seamlessly intein record time.

International Packaging Conference grated system for maximum overall in Budapest, Hungary. After winequipment effectiveness (OEE). ning the German Packaging Award 2014, for fast changeovers between slug and pile The Two-in-One biscuit packaging system Bosch Packaging Technology has now been packs on the same line. This ensures opti- also takes up less floor space than the two honoured with a second prestigious award mal product flow and combines high out- separate machines previously required to for its innovative packaging solution – the put with careful handling of all kinds and produce both pack styles. Since its launch WorldStar 2016. shapes of biscuits. It also enables manufac- in 2014, several systems have already been The biscuit packaging solution from turers to change pack sizes in a minimum sold to well-known biscuit manufacturers Bosch is the first of its kind which allows of time. No machine parts are required to across the globe. J

ULMA Helps Meat Companies Beef Up Their Packaging LMA Packaging is targeting meat and poultry companies to improve food hygiene, as well as increase productivity, with its U wide range of high-speed automated equipment that provides excellent pack presentation and extended shelf life.

The meat sector demands the highest quality in packaging solutions. ULMA, one of the country’s leading suppliers of packaging machinery and complete automated lines, offers a range of packaging machine options – Thermoforming (TFS), Tray Sealing, Horizontal Flow Pack (HFFS), and Vertical Form Fill Seal (VFFS).

A variety of equipment available for both fresh and processed meats is supplemented by the latest in film wrapping that offers convenience to consumers as well as stand-out shelf appeal. One area that ULMA is leading the field on is cook-in-the-bag technology to meet increasing demand from retailers for convenience packaging that helps in the battle against harmful bacteria such as campylobacter.

Designed so that consumers can pop chicken into the oven for cooking without having to handle the raw poultry, ULMA’s horizontal flowrapper, the Artic Quad, creates Polyester Ovenable Material or Barrier Laminate Material in quad and pillow pack formats with complete modified atmosphere packaging (MAP) for extended shelf-life.

Once the chicken is wrapped, with or without a tray, the machine profiles and seals film on four corners for a box-like effect, adding extra value for suppliers by allowing printing on four sides of the pack and increasing the visibility of the product to shoppers, who do not need to handle the product before placing it straight into the oven.

ULMA’s range of TFS thermoformers also use specially designed top films for enhancing the product’s appearance and extending shelf life. It has teamed up with global packaging giant Sealed Air to roll out across the UK the revolutionary Cryovac® Darfresh® vacuum pack that reduces waste and offers excellent benefits for a variety of meat products.

There is also Darfresh Bloom™ to help red meat sealed under vacuum retain its colour and a microwavable version for ready meals, while double decker packages are available for providing a flat top surface to apply a label.

In addition to flowrapping and thermoforming ULMA also offers a wide range of tray sealing machines, such as the TSA 6801000 with its high speed MAP packing of meat and poultry products, built to meet the most demanding high care requirements of the market. J

FOOD & DRINK BUSINESS EUROPE, FEBRUARY 2016

25

I MARKET FOCUS

Lager Struggles to Retain its Fizz as Consumption Drops in Britain It seems that Britain’s lager segment is struggling to retain its fizz, as it faces particularly strong competition from the rising popularity of ales and bitters, whose success has been fuelled by the craft beer boom.

I

ndeed, new research from market intelligence agency Mintel reveals that 49% of British consumers drank lager in 2015, down from 54% in 2014. Furthermore, Mintel research shows that consumers’ waning thirst for lager is affecting sales, with volume sales falling from 3.18 billion litres in 2014 to an estimated 3.15 billion litres in 2015. Overall, sales of lager have dropped by 8% over the past 5 years alone, down from 3.44 billion litres in 2010.

Yet whilst Brits are losing their love of lager it seems 'hop-portunity' knocks at ale’s door, helped along by the rise of craft beer and styles such as IPAs (Indian pale ales) in particular. Brits are expected to have drank 913 million litres of ale and bitter in 2015, up from 895 million litres in 2014. Today, more than one quarter (27%) of Brits drink ale or bitter, whilst one in five (20%) drink any type of craft beer.

Overall Beer Sales What's more, Mintel research indicates that lager’s falling fortunes are having a detrimental effect on overall sales of beer. Brits are estimated to have consumed 4.25 billion litres of beer in 2015, down from 4.27 billion litres in 2014. Meanwhile, value sales growth has slowed, rising only slightly from £16.61 billion in 2014, to an estimated £16.68 billion in 2015. There are, however, signs of growth in 2016 and Mintel forecasts value sales to reach £18.1 billion by 2020.

Chris Wisson, Senior Drinks Analyst at Mintel, says: "Lager sales have plateaued in recent years, however it could enhance its chances of growth by tapping into the craft beer movement more effectively. With the majority of craft beers available in both the on- and off-trade falling into the ale and bitter segment, these beers

have garnered considerable coverage in recent years. Many craft brewers have prioritised ales, brewing variants such as pale ale, for example IPA and golden ale, in turn driving the popularity of premium bottled ales. Overall, the beer market should benefit from greater craft innovation, as well as sales uplifts from events such as the Olympic Games and UEFA Euro 2016.”

Influence of Price Additionally, it seems that cost is having an effect on the nation’s appetite for beer, with as many as one fifth (20%) of UK beer drinkers saying they are not willing to pay more than £2.99 for a pint. While three in 10 (29%) beer drinkers overall are prepared to pay more than £4 per pint, it’s Londoners who are more willing to open their wallets, with 27% willing to pay over £4.50.

Chris Wisson continues: “The steady rise in price over the past decade has given rise to notable consumer resistance in having to spend more on beer, particularly when it comes to breaking the £4, and even £5 barriers. Brands asking consumers to pay more for beer need to provide clear reasons for doing so, for example via packaging or branded glassware, as well as delivering a discernibly superior taste to cheaper mainstream alternatives.”

Style of Beer Glasses Finally, Mintel research finds that for some consumers it's not just the type of beer that's important. Today, the top three glassware preferences for out of home beer drinkers are the nonic (27%), the tulip (16%) and the tankard (14%) style of beer glasses.

Indeed, whilst once traditionally a favourite of the more mature male drinker, the tankard now garners the most interest among younger men. One quarter (26%) of 18-24 year old male out-ofhome beer drinkers state that their favourite type of glassware to drink pints from is the tankard. The half pint, on the other hand, is more preferred by women, with one fifth (19%) of out-of-home female beer drinkers saying they most like to drink beer from this type of glass, compared to just 6% of men. J

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FOOD & DRINK BUSINESS EUROPE, FEBRUARY 2016

I CONVEYORS & END OF LINE TECHNOLOGY

Span Tech Europe Offers State-ofthe-art Conveying Solutions ing, new products are constantly being developed, and we adapt to these new products and new product handling demands,” says Enrico Berlenghi. “The industry is paying more and more attention to maintenance costs, and this is why ‘once you go Span Tech you never go back’.”

lready a leader in the North American A market, Span Tech is now offering its unique belts and conveying systems to food processors in Europe. Span Tech’s almost 40 years of experience and expertise extends from primary to secondary packaging, packed and unpacked products, trays and case handling from meat, dairy, frozen foods and specialty baking, up to fresh and convenience foods.

Span Tech conveyor systems are able to eliminate product damage while improving throughput and maximizing the production process, eliminating production break downs and the need for continuous maintenance. In addition to its well proven conveying technologies, Span Tech has also engineered unique solutions in transfer technology, accumulating, merging, dividing, inclining, vertical conveying, depositing, rejecting and reclaiming.

European Business Having set up its European business in 2011, Span Tech is now well established in northern European, especially in Benelux, Scandinavia, France and Germany. “We are now approaching the UK and southern Europe where we already have several installations,” points out Enrico Berlenghi, EMEA Director of Span Tech. “From 2017, we intend to approach the Middle East from which we have received some interesting enquiries.”

Span Tech Europe works exclusively via its partners that are OEMs and integrators. Its systems are currently in operation within many of the major food groups, including Nestlé, PepsiCo, Unilever,

P&G, FSB, Conagra, Haribo, Delifrance, Santa Maria, McKey, Mondelez, Coca Cola and McCain.

“Span Tech Europe has grown every year by 30% since opening. We now have spare parts and service in Europe, and are currently investigating the start-up of a production facility in Europe as well,” says Enrico Berlenghi.

Tailored Approach Key to Span Tech Europe’s success is that it tailors its systems to the precise needs of each customer. “Our engineers always start by adapting our systems to the specific requirements of the product(s), not the other way around,” he explains. “Span Tech Europe conveyors work flawlessly from day one, and they keep on working five to seven times longer than most of our competitors. Our systems require very little or no maintenance. Many of our clients often do not even recall that they have Span Tech Europe conveyors, as they perform exactly as they are supposed to.”

Another key benefit to users of Span Tech Europe conveyors is that cleaning is quite simple as the belt and sprockets are easily removable. Maintenance, when required, is similarly straightforward. The chain can be opened at any point with a standard screwdriver and the sprockets can be replaced without removing the drive shaft. The modular design allows for standardization of replacement parts.

“The industry is continuously chang-

Continuous Innovation Span Tech has a strong record of continuous innovation in order to meet the changing needs of food processors as they adapt to the demands of consumers.

“We differentiate from our competitors by continuously developing new solutions and customizations, and adapting our solutions to the product’s needs. The conveyors can be combined for near infinite possibilities, with multiple chain types available for even more variety. We develop completely customized systems based on the product requirements.”

For example, Span Tech’s latest development is an entirely new concept in sanitary/hygienic conveying systems, which will be launched later this year.

According to Enrico Berlenghi, the quality of Span Tech conveyors gives the company a distinct competitive edge in terms of performance and cost. “Our conveyors are more durable than competing conveyors. Large portions of original chain are still running on conveyors that have operated six days a week for years, even in areas with high levels of contaminants.” The EMEA Director of Span Tech concludes: “Our outstanding quality gives to our customers the most reliable solutions, and does so with the lowest cost of ownership.” J

FOOD & DRINK BUSINESS EUROPE, FEBRUARY 2016

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I CONVEYORS & END OF LINE TECHNOLOGY

How to Reduce Product Damage in Production

By FlexLink very day, manufacturers around the globe lose millions of dollars E to product damage. An incredibly large amount of material goes to waste, not only causing large economic losses, but also affecting our environment. So, what is causing product damage? And more importantly, how can it be reduced?

Common Reasons to Product Damage in Production In general, when it comes to the production process; that the larger the operation the higher the risk of product damage.

The primary reason to product damage is misaligned machines and incorrectly adjusted machine equipment. When machines and equipment are not properly aligned and adjusted, the quality of the handling of product components such as bottles, caps or cartons, is lowered, putting them at risk of getting damaged as they are transported through the production line.

One critical step of the production process is changeElevation of milk cartons. over. Changeover may include everything from changing only the label of a package to adjusting all components of a production line requiring a complete disassembly of the equipment. Sometimes, it is even necessary to change from one machine to another to accommodate the product. If a production line is not properly converted, the products may not be compliant to the quality requirements, but discarded as scrap.

Quality Requirements For Products and Tolerances For Product Damage The quality requirements for products vary depending on the industry and manufacturer. In cosmetics, and especially in perfume production where products often have a high value and the package design is important, the tolerances for product damage are often very small. The tolerances are established by the product owner’s

Crate handling line.

quality department and decide whether a product is allowed to be sold or not.

Non-compliant products may include damages such as fingerprints and scratches on caps and bottles, bad snapping or crimping of pumps, non-compliant cellophaning of cartons such as scratches on cellophane or bad sealing, non-compliant product tracking such as bad marking of batch number, or bad labeling.

The Consequences of Product Damage Hit the Manufacturer as well as the End User To manufacturers, product damage means financial loss. When a product gets damaged the manufacturer needs to separate parts that can be reused, for example the liquid, from parts that must be discarded, for example the bottle. This is both time-consuming and

Cheese line.

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33

impacts the production efficiency as well as the profitability for the manufacturer. When the production doesn’t reach set targets because of product damage, batches have to be rescheduled. This may involve late deliveries and not being able to meet customer demands.

Worst case, it leads to unhappy customers, which in turn lead to brand damage and lost sales. Moreover, discarded scrap has a negative impact on the environment.

Consequently, the Spiral elevator. manufacturer carries a big responsibility for running the production as smoothly as possible.

How to Reduce Product Damage in Production Reducing product damage causes a positive domino effect that stretches all the way from the manufacturer and its customers to end users and the environment.

Automated production flow solutions maximize the accuracy of operations. Product damage can be reduced in different ways, but automation is key as it enables you to control repeated movement of machines and equipment. It maximizes the accuracy of operations, and sensors and vision systems are efficient tools to detect damages and non-compliant products.

Controlling equipment increase efficiency and reduce waste. It is essential to check and control every step of the operation to guarantee the quality compliance of products and the efficiency of the production line. The sooner an error is detected, the fewer damaged products. Investments in controlling equipment are essential to maximize the production efficiency. The integration of HMI allows operators to control production lines and detect and correct errors, preventing products from getting damaged. SMED solutions are

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Robots packing cheese.

excellent tools to minimize changeover time and reduce waste in the production processes.

Maintenance of machines and machine equipment is still important.

Naturally, the more automated processes, the less need for maintenance. However, maintenance is still important. With preventive maintenance, it is possible to identify misalignment in time, before there is a breakdown. If production lines are kept in good working conditions, chances are higher that you will avoid breakdowns and the consequences that follow. In addition, operators should be informed and trained regularly. J

Reject function.

FOOD & DRINK BUSINESS EUROPE, FEBRUARY 2016

I CONVEYORS & END OF LINE TECHNOLOGY

Innovation in Action - SpiralVeyor® SVs For Primary Packages! mbaFlex, the global leader in spiral conA veyor solutions, has just supplied 12 narrow belt SpiralVeyors from its SVs series for installation at the facilities of a leading global snack manufacturer in Mexico.

The units will elevate tall standing packages of savoury crackers from just behind the primary packer.

The AmbaFlex units have been chosen by this multinational because their compact build and high uptime. The SVs series is the smallest narrow width spiral conveyor in the extensive SpiralVeyor® family. It comes with narrow width belt of 100mm (4”) or 140mm (5.5”).

It is unique because the

smallest diameter is just under one meter (3ft). And, as standard with AmbaFlex, it can carry high loads at high speeds and can easily cross multiple floor levels in one go. It has been designed as an elevator, portal or accumulator for primary packing lines. Its applications can range from drinks, food packing and cosmetics up to assembly lines.

AmbaFlex has been supplying very compact units since the late 1990s and hundreds are already in use worldwide. However, this order is quite significant because the units are equipped with some

new features that broaden the scope of the applications.

First of all, the product transfer is now driven, allowing even the smallest packages to be transferred onwards and head to head.

This reduces the length of the line as its makes parallel transfers superfluous. It also improves the product handling and takes away any final risk regarding product-marking. Another special feature is the endless stainless steel 50mm plate guides that are now standard on these units. Last but not least, a hygienically designed support construction is part of the configuration to comply with the especially high cleanliness standards of this customer.

This configuration is standardized and sold under the name SpiralVeyor® PackLift; ‘enabling 3-dimensional primary pack flow’.

One more proof of AmbaFlex’s leading position in Spiral Conveyor solutions. J

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The Rexnord® 1005 XLBP Series MatTop® Chain is ideal for pack conveyors that require the lowest backline pressure. This design sets a new standard for the beverage industry with a range of safety, performance and energy features and benefits.

By assessing your individual needs and objectives, Rexnord’s skilled engineers will help you obtain the lowest Total Cost of Ownership (TCO), while running your operation safe and green.

Please contact Rexnord at +31 174 445 111 to request a technical survey of your production line to identify the opportunities for sustainable improvements.

I CONVEYORS & END OF LINE TECHNOLOGY

Rexnord Introduces The New 1005 XLBP-Series MatTop® Chain he trend for packages in the food and beverage industry T towards the use of lighter and more delicate packaging materials is ongoing. This drives the need for new conveying solutions that ensure optimal pack handling with the lowest risk of damage to the packs. At the same time these new conveying solutions need to contribute to important sustainability goals, such as conveyor safety improvement and energy saving.

Rexnord is proud to introduce the Rexnord 1005 XLBP Series MatTop® accumulation chain for packs to address these needs.

Safety Conveyors equipped with traditional “LBP” (Low Backline Pressure) chains, can create a potential safety hazard at the transfers between conveyors, where the chain opens and closes, due to gaps that form between the rollers on the chain links. This forces OEM’s and end-users to install safety precautions in the packaging area, to ensure no workers can get their fingers or clothes trapped between the chain and conveyor at any time. The Rexnord 1005 XLBP - Series Chain has been designed to optimize the safety of the conveyor system, by reducing the gaps between the rollers by 50% at the transfers. The rollers are made in a bright lime-green colour, to increase the visibility of the moving parts on the conveyor.

Protection of the Packs A complaint often heard at end-users, is that many plastic rollers on LBP conveyor chains do not rotate easily or even get stuck over time, which can cause a dramatic increase of backline pressure on the packs during accumulation. As a result, packs get damaged and the energy consumption of the drive motors will go up, as will the Total Cost of Ownership of the conveyor line. The Rexnord 1005 XLBP - Series Chain offers a solution to these issues: the rollers combine a 30% lighter rotation on the shaft, with less chance for contamination to end up in the rollers or between the rollers and the chain module. This

The Rexnord 1005 XLBP - Series Chain has been designed to optimize the safety of the conveyor m, by reducing the gaps between the rollers system by 50% at the transfers. The rollers are made in a brightt lime-green colour, to increase the visibility of the moving parts on the conveyor.

The Rexnord 1005 XLBP - Series MatTop Chain is the latest addition to the Rexnord portfolio and has all the features to set the new standard for LBP (“Low Backline Pressure”) conveyor chains for the coming years.

ensures the lowest backline pressure on the packs and minimal energy consumption of the conveyor over time.

Lower Energy Consumption Most end-users have a sustainability target to reduce energy consumption in all areas in their plants. In the packaging area it is not uncommon to have a great number of conveyor drives, since the packs have to travel a long distance from the packers to the palletizers. The power consumed by each conveyor is determined by the total weight of the chain plus the packs, multiplied by the friction factors and the speed. Since the weight of the packs and the speed is a given, Rexnord 1005 XLBP - Series Chain has a reduced chain weight of 40% compared to traditional modular LBP chains. In combination with the 30% lower friction between the packs and the chain during accumulation, this will translate into direct energy savings on each drive motor. In case line control permits, it is even possible to reduce the total number of drives required, since the conveyor lengths can be extended.

Innovative Leader Rexnord holds an unmatched track record of innovative conveying solutions for the food and beverage industry that have defined the new industry standards since 1938. Starting with the first metal TableTop® chains to engineered plastics to magnetic corner tracks (Magnetflex®). The Rexnord 1005 XLBP Series MatTop Chain is the latest addition to the Rexnord portfolio and has all the features to set the new standard for LBP (“Low Backline Pressure”) conveyor chains for the coming years.

For more information, please contact Rexnord at +31 174 445 111 or visit www.rexnordflattop.com. J

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I CONVEYORS & END OF LINE TECHNOLOGY

Save Money With LOCK N’ POP – Increase Pallet Stability and Reduce Plastic Pallet Wrap t’s always a good idea to look at costs and ways of reducing them and with demand Idepressed in current economic times it’s more of an imperative. Most of the time of course the focus is on making processes more efficient but the big savings are generally only possible when processes are done differently.

In the supply chain necessary costs are incurred simply to store and move products.

The value is in getting them to the customer but otherwise the costs of packaging and transportation add little to their intrinsic value. And so it is with tertiary packaging: the pallets and associated plastic stretch wrap which are used to stabilise the load. LOCK N’ POP pallet stabilisation provides an alternative which is cost effective and can eliminate the use of stretch wrap and the layer pads and corner posts which need to be used to add extra stability.

Plastic wrap has a cost and typically a manufacturer could be spending around 75p/pallet.

And, at the customer end of course there’s the cost of disposing of what is now plastic waste.

If layer pads are needed the cost can easily exceed £1.00/pallet. In addition, if corner posts are also needed this cost can exceed £1.50/pallet, simply to ensure goods are delivered securely.

Cost Savings With a typical cost of between 7p and 10p/pallet for LOCK N’ POP, the cost saving potential is very clear. By simply reducing wrap by 50% and applying LOCK N’ POP a net sav-

ing of 27.5p/pallet is achieved. In a production facility producing 100,000 pallets a year this equates to an annual saving of £27,500.

In today’s economic climate this level of operating cost reduction is too valuable to ignore.

UK companies, large and small, are experiencing these level of savings by using less stretch wrap with two recent customer installations being on target to achieve a reduction of 17 tonnes and 21 tonnes in annual stretch wrap consumption.

So how does it work? LOCK N’ POP pallet stabilisation uses a cold, water based, adhesive that is applied inline to the cases, bags, shrink wrap trays etc. immediately prior to palletisation. The unique adhesive has high shear strength characteristics which LOCKS the products together resulting in a stable pallet. However, the magic is that the adhesive combines this high shear strength with a low tensile strength which means that the items can easily be separated. So, stable in transit but easy to separate at distribution centres and end users.

Known as the Invisible adhesive, this ability to leave the product unmarked is becoming imperative as more and more customers need to be able to place products straight from pallet to shelf in retail ready packaging. As the demand increases for increased levels of print-

ed artwork on outer case packaging the ability to palletise and transport securely without damaging the presentation of the product is becoming a bigger requirement of food and beverage manufacturers.

Pallet Stability Blue chip companies throughout the Food, Beverage and Feed sectors have been using LOCK N’ POP for over 20 years to stabilise their pallets. In some cases there has been no alternative to applying very high wrap tensions to ensure pallet stability. This results in deformed cases and customer complaints.

With the addition of LOCK N’ POP to stabilise the goods, wrap tension can be reduced and the associated damage eliminated. Cost savings have also been achieved by allowing the use of lower micron wrap which proves sufficient when the stability is provided by the LOCK N’ POP adhesive.

This well known technology is helping more and more producers to save money by allowing them to reduce their use and spend on plastic packaging and by ensuring that their products get to their customers without transit damage.

LOCK N’ POP pallet stabilisation is a different approach. For more information contact duncan.potter@gransden.org or on 01223 257899. J

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Standard Belt Conveyor with inverter

Quantum3 is an ISO9001 Quality Certified company based out of our purpose built manufacturing hub in Killaloe, Co. Clare. We employ highly skilled design and fitting staff who are dedicated to working in partnership with our customers to meet their needs.

We also operate a UK hub from our base in Telford which gives us direct access to the broad range of industry in the Midlands and West Midlands.

Again in this facility we have design and application engineering support.

Incline Conveyor

Our conveyors are manufactured using the highest quality components.

Belt conveyor solutions from our standard modular platform. Special belt conveyor solutions and Gravity roller conveyors.

The Quantum3 belt conveyor is realised from a standard platform of component parts and made to a standardised design template whereby the only variants are width, length, belt type and speed. This ensures a rapid response and delivery time of 5 to 7 working days and a repeatable high quality solution due to the proven standardised design and build template.

Twin Belt Conveyor

Please ask us to quote to meet your conveying needs.

In addition to this we also innovate and design bespoke conveying solutions to meet your unique requirements.

Work Station with built in Belt Conveyor

Gravity Roller Conveyor

Indexing Conveyor

Standard Belt Conveyor

Quantum 3 Hill Road, Killaloe, Co. Clare.

Contact Details

Phone: 353 61 375 900 Fax: 353 61 375 222 Sales email: sales@quantum-3.com

Quantum 3 Unit E4, Halesfield 5, Telford, Shropshire, TF7 4QJ, UK. Phone: +44 1952 587300 Sales email: sales@quantum-3.co.uk

I CONVEYORS & END OF LINE TECHNOLOGY

Automated Inspection in Packaging – Ignore It at Your Peril utomation is an important focus for the food industry as comA panies look to reduce operating costs and improve hygiene by limiting the need for human handling of foodstuffs. Rob Allen, Divisional Manager for Interfood’s Packing Solutions Division, highlights the vital role of product inspection in the packaging process and what needs to be considered when investing in automated packaging.

The degree of automation in end-of-line packaging is undoubtedly increasing. One of the main drivers for this is cost as machines have the capability to combine a number of different functions that could well involve several people if the operation was being done manually. There is also the precision and consistency that automation offers, as well as the potential to provide a more controlled environment – an important factor as food hygiene and traceability become ever more critical.

This latter point means that machines that can combine X-Ray or metal detection, with integrated checkweighing, are becoming an increasingly common feature in end-of-line packaging operations. Whether the line is producing breads, cakes, biscuits or other baked goods, they need to be inspected at the end of the processing line before being transferred to automatic case-packing systems which place the individual packs into cases for display on supermarket shelves.

Codes of Practice The supermarkets are adopting specific codes of practice to help ensure the goods supplied to them meet best practice. For example, Tesco and M&S have adopted their own COP (Code of Practice) standards and a new issue of the BRC (British Retail Consortium) Global Standard for Food Safety, Issue 7 was published in January 2015 which is now regarded as the industry standard.

So, when looking to invest in machinery to help automate the packaging process, one of the first things to do is check that it meets the specific requirements of the retailers that you are supplying now or in the future. Protection of the consumer from potential product contamination is, quite rightly, key for all those

involved in the food supply chain so having the means to automate that process and immediately alert you to any potential issues is invaluable.

Line Efficiency Another factor in the decision to automate is to consider how the new machine is going to fit into your existing production line. This might sound pretty obvious but with the increasing automation of lines comes a potential complexity in ensuring that the line efficiency is optimised. Investing in packaging automation can ultimately provide significant cost savings but if you make the wrong choice it can be a costly error. You need to consider how your new machine will synchronise with your existing production line equipment.

Single HMI control for multifunctional machines which can be linked to other machine control consoles makes the line operation more simple and easy to control and optimise. In addition systems where the product, variable print data and the barcode can be set up and continuously checked throughout the production run reduce the risk of errors and ensure the brand is securely protected.

Product inspection and control is an essential and legal requirement for food processors, however the machines

For investments in capital machinery, the cost of ownership is becoming an important measure in makiing the purchasing decision.

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have additional capability to improve the production efficiency and line control from the data they collect. Live data collection systems can be used which clearly identify OEE (Overall Equipment Effectiveness) and performance against target for production, technical and QA (Quality Assurance) personnel. They can also ensure that the processor is compliant to their retailer COP with secure live and historical audits and reports.

Configuration It should be easy to set up and configure to meet the specifics of your particular operation. A biscuit manufacturer will have very different requirements in terms of pack size, capacity and speed of throughput than say a manufacturer of pies or a company producing muffins. It is also important that the machines can be operated easily, accurately and quickly. Touchscreen consoles with clear and easy to use functions allow the line operators to run the line in confidence and in the most efficient way.

With any automation comes the potential for production downtime. On a line producing, for example, thousands of tea-cakes an hour, any stoppage caused by issues in the end-of-line packaging operation can prove very costly. Any machine added to the line therefore needs to be easy to troubleshoot and, if something does go wrong, then ideally it should be easy to discover what the problem is and easy to rectify it. If the solution is not simple, then the support of the machine supplier becomes important, with a quick response to enable production to get back on line as quickly as possible.

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Cost of Ownership For investments in capital machinery, the cost of ownership is becoming an important measure in making the purchasing decision.

The initial capital cost is, understandably, a factor, but a much better yardstick is what the cost of owning and operating the equipment will be. For example, full detection and inspection systems are now available which are all electric, requiring no compressed air to operate and therefore offering very low cost of operation. Service costs and the costs of spares should also be built into the equation to ensure that you are getting best value from your investment.

Interfood Technology is the sole representative in the UK and Ireland for the Sparc Systems range of checkweighers, combination checkweigh/metal detection units, weigh grading, multilane weighing and bespoke conveyors, along with Buhmann’s end-of-line packers, tray and case erectors and carton closers. J

When looking to invest in machinery to help automate the packaging process, one of the first things to do is check that it meets the specific requirements of the retailers that you are supplying now or in the future.

FOOD & DRINK BUSINESS EUROPE, FEBRUARY 2016

I CASE STUDY

NetEDI Implements Cloud-based EDI Solution at Filippo Berio etEDI provide powerful Cloud-based N EDI/B2B services offering ERP integration and web form turnaround inside a platform that connects and automates vital business processes. NetEDI Managed Service gives customers advice, tools and confidence and extracts the B2B tasks from a company’s daily operation.

NetEDI has a fast growing list of clients including some of the largest household names in the retail sector. Here, we share the experience of implementing Filippo Berio’s system and the benefits it has brought to their operation.

Filippo Berio Established in 1867, in the small Italian town of Lucca, Tuscany, Filippo Berio has grown into an international company to become a leading producer of quality Olive oils. Filippo Berio is the premier brand of the Salov Group which is specialized in the production and sale of olive oil, seed oil and related products in over 60 countries, is a market leader in the US and GB, and generates a turnover in excess of Eur300 million.

Business Situation Electronic trading was becoming an increasingly important aspect in the operational running of the business. Besides several of their established customers, newer partners were being added onto the system and this led to a review of B2B operations.

The previous solution consisted of older legacy systems which meant having to operate and maintain two separate solutions. Colin Clitherow, Accounts Department, states: “We were doing every-

ensures clients do not require any in-house EDI expertise. Clitherow adds: “After using the previous software for several years we didn’t expect that the EDI processing could be made as simple as this. Our EDI documents have always been integrated into our ERP system but NetEDI make the process effortless. We’re alerted to when new orders are received which notifies us that it has been integrated to Sage.

The automation does make life a lot easier.” thing manually in our old system and wanted to centralize and automate the B2B operations. NetEDI were recommended to us and we haven’t looked back since.”

Technical Situation Filippo were communicating EDI Orders and Invoices electronically with their retail customers. A desktop system was used for receipt/transmission of the EDI messages whilst a further third-party system was responsible for the import/export of transactions with Sage. Manual intervention would be necessary to ensure their daily Orders/Invoices transactions were integrated with Sage whilst different points of failure and data visibility problems meant that maintenance proved difficult. The technical objective was to ensure that transactions could be integrated directly with the Sage 200 ERP system without any manual intervention/re-keying of data.

Solution NetEDI implemented their cloud based EDI service that provides hosted resources for clients. A single, centralised solution meant that the overall end-to-end visibility of Order and Invoice transactions was greatly improved whilst also ensuring full process automation was achieved. Orders are automatically converted from Trading Partners and imported into Sage 200 as if they had been keyed in, whilst Invoices are exported from Sage and automatically translated into the required file formats by the trading partners. The new implementation allowed Filippo to take advantage of the NetEDI Managed EDI Service that FOOD & DRINK BUSINESS EUROPE, FEBRUARY 2016

Benefits The NetEDI managed service has greatly benefited Filippo Berio giving an overall operational benefit for the company. The service allows an organisation to extract the traditional EDI process from its daily operations enabling employees to focus on running the business.

Having one central system which takes care of the communication, processing and Sage integration serves to simplify whilst providing a singular view of data and endto-end tracking of EDI data – Orders and Invoices.

NetEDI offer significant benefits over traditional EDI solutions for Sage and other ERP systems. NetEDI offer an unrivalled knowledge of the Sage product family and a firm understanding of client requirements. Clitherow concluded, “Moving to NetEDI was a good decision.

I’m certainly very pleased that it has worked out successfully for the business.

The service just works, the support is great and I certainly recommend the managed service to others”. J 43

We solve problems FEG Ltd are Food Industry specialists providing a range of services including Design, Project Management, Interim Management, Consultancy and Full Project Packages.

Our Expertise • • • •

Project Management CDM 2015 (Construction Design & Management) CE Marking and Safety Assessments Design: structural, process and compliance 2D & 3D Models • Dust Extraction & Atmosphere Control • Energy Sustainability & Heat Recovery • Flood & Disaster Recovery Management 5 Bede House,Tower Road, Washington, Tyne & Wear, NE37 2SH, UK www.contractpacking.co.uk / 0845 003 5375 / enquiries@evolvepack.co.uk

Telephone: +44 (0)191 417 1479 Email: info@feg-global.com Web: feg-global.com

‘World leader in RF Dielectric Heating’ Process Advantages • Reduces Checking – uneven stresses in the product are eliminated as a result of evening the product moisture profile.

• Product Colour Control – in the RF process, the colour and moisture are separately controlled.

• Increased Production – throughput of a typical oven line can be increased by as much as 50% on certain products.

• Energy Savings – unlike conventional equipment the efficiency of the high frequency oven is only marginally reduced at lower moisture levels.

• Floor Space Savings – efficient heat transfer results in faster product transfer and reduced oven length.

• Automatically Compensates – for variations in product moisture.

• Automatically Profiles – moisture content.

• Reduces flashing off of volatile flavourings - allowing reduced quantities to be used.

• Eliminates Centre Bone.

Unique Design Features: - Hygienic and sanitized Stainless steel construction.

- Harmonically filtered Generators, that surpass the most stringent emission regulations anywhere in the world.

- Fully seam welded construction reduces interference and emissions.

- 'Gold Standard'- Dual ended balanced power output reduces frame currents and improves uniformity reliability and efficiency.

- Moving upper electrode increases versatility-Wide range of product processed with just one setup.

- 27MHz operating frequency with widest ISM tolerance band.

Strayfield Limited, Ely Road, Theale, Food Industry Berkshire, RG7 4BQ, England Tel: +44 1189327760 • Fax: +44 1189305634 Email: food@strayfield.co.uk Web: www.strayfield.co.uk

I SNACKING

New $5.2 Billion Snacking Giant Created Turkey-based Yildiz Holding is combining its global chocolate and biscuits businesses, which include United Biscuits along with the Godiva, DeMet's and Ülker brands, under a new umbrella called Pladis. he move will increase competition for world leader Mondelez International. Already the world’s third largest biscuit manufacturer and a leading international player in chocolate confectionery, the new Pladis snacking giant employs 26,000 people and has annual sales of $5.2 billion. Yildiz Holding produces chocolates, biscuits and all types of confectionery in 77 factories across 14 countries.

Pladis will operate across three regions - Turkey, Middle East, North Africa and Central Asia; Japan and Korea; and Europe, subSaharan Africa and South Asia. The name ‘Pladis’ derives from ‘Pleiades’, the Latin name of a seven-star cluster, which also represents Ülker, Yildiz Holding’s flagship biscuits and confectionery brand.

T

Cem Karakas, deputy chairman of Yildiz Holding.

"This year and the next will see Yildiz Holding making some of its biggest capital investments," says Cem Karakas, deputy chairman of Yildiz Holding. "In the snacks segment particularly, we want to expand our business by 17 percent each year in sterling terms. To achieve this we need to invest in our capacity."

Cem Karakas elaborates: "We plan to increase the turnover from £3.5 billion ($4.99 billion) in 2015 to £5.5 billion in 2018 with a 17 percent increase and earnings before interest, depreciation and tax from £343 million to £900 million."

In line with its re-focusing on snacking, Yildiz Holding recently sold 90% of its beverage companies Della G›da, Bahar Su and Ilk Mevsim Sular› to Dydo DRINCO, Japan based beverage company, for 335 million Turkish liras (Eur99 million).

Murat Ülker, chairman of Yildiz Holding.

Refocusing on Snacking “It is of great importance to be innovative, consumer wise and open to new ideas in order to become a global company. As a pioneering company, we have now combined all of our brands under one ceiling,” says Murat Ülker, chairman of Yildiz Holding.

“Our group will grow by 10 percent this year, but now we want to focus on our main job - biscuits, chocolates and sweets,” he explains. “We want to become globalized, so we need to reorganize our business. Our aim is to unite our power and combine our companies under one brand to become a leader in the sweet snacks market.” $530 Million Investment Yildiz Holding plans to invest more than 1.6 billion Turkish liras ($530 million) in 2016 to increase capacity in its Turkish, US and the UK operations.

Global Player Yildiz Holding became the world’s third largest biscuits manufacturer following its $3.3 billion acquisition of United Biscuits in 2014. United Biscuits is the leading manufacturer and marketer of biscuits in the UK and second largest in the Netherlands, France, Belgium and Ireland. Among United Biscuits’ popular brand names are McVitie’s, Penguin, go ahead!, McVitie’s Jaffa Cakes,

In the snacks segment particularly, we want to expand our business by 17 percent each year in sterlinng terms. To achieve this we need to invest in our capacity.

FOOD & DRINK BUSINESS EUROPE, FEBRUARY 2016

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reason for our success and the booming export figures for McVitie’s this year, and we are investing in our capacity to continue feeding the global demand for our biscuits and baked snacks.” J

Our aim is to unite our power and combine our companies under one brand to weet snacks market. become a leader in the sw

Ülker is Yildiz Holding’s flagship biscuits and confectionery brand.

Jacob’s, Jacob’s Cream Crackers, Twiglets, Mini Cheddars and Carr's in the UK, and BN, Delacre, Verkade and Sultana in Continental Europe.

United Biscuits has been invested significantly in its UK operations over the past two years, supporting its capability to deliver and expand its portfolio in a range of markets overseas. This includes major investment in the company’s Harlesden facility in West London, the biggest biscuit factory in Europe, which currently produces about a sixth of its output specifically for export. A further £15 million of investment is planned in 2016 which will help improve the site’s capacity and boost its export potential further.

Export Boom The UK business exports to over 100 countries worldwide, with a core focus on four key regions - Africa, the Middle East, India and China. United Biscuits has increased its total exports from the UK by 50% over the past three years and anticipates a further 50% rise by 2020.

Jeff van der Eeems, chief executive of United Biscuits and who is also now responsible for Pladis operations in the UK, Europe and Africa, comments: “At United Biscuits we have established a strong Jeff van der Eeems, chief executive of United track record of success in finding consumers Biscuits. worldwide who love our iconic McVitie’s British biscuits. Whether through exporting or manufacturing locally, our international development model is central to UB’s strategy for growth and will involve continued investment in our UK sites.”

Jeff van der Eeems continues: “We have focused in particular on making McVitie’s Digestives a truly global product. This wonderful British biscuit is appreciated worldwide. Finding appropriate ways to introduce McVitie’s to consumers on all continents has helped our exports boom and will continue to drive investment in Harlesden and our other UK sites. This is a major

At United Biscuits we have established a strong track record of success in finding consumers worldwiide who love our iconic McVitie’s British biscuits.

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McVitie’s Digestives is now a truly global product.

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FOOD & DRINK BUSINESS EUROPE, FEBRUARY 2016

Partner Logistics Makes Double Appointment ntegrated logistics provider Partner IDophemont Logistics has appointed Jolin as Supply Chain Developer and Mark Knibbeler as Supply Chain Specialist to strengthen its team based at the head office in Bergen op Zoom, The Netherlands.

Jolin has worked in the logistics industry for over 20 years and has extensive experience in managing frozen storage and distribution as well as a good knowledge of rail, road and air-freight transportation. At Partner Logistics his responsibilities include overseeing integrated warehousing and transport projects and establishing and managing relationships with distribution partners.

Jolin says: “I’m delighted to join Partner Logistics, a unique company which has seen fantastic growth over the last few years and leads the way in the frozen foods logistics industry. I look forward to using my skills and experience to offer our customers the best supply chain solution.”

Mark Knibbeler joins the Partner

Mark Knibbeler, Supply Chain Specialist, and Jolin Dophemont, Supply Chain Developer at Partner Logistics.

Logistics supply chain team, specialising in transport. He brings 14 years’ experience from the Royal Netherlands Marine Corps where, amongst other roles, he worked as a Transport Planner. At Partner Logistics he will be responsible for supporting the transportation process by acting as the connecting link in between customers, carriers and the frozen food storage facilities.

Mark says: “Co-operation and collabora-

tion is extremely important and my focus will be on maintaining positive relationships with clients and ensuring we always offer a first class service. I look forward to the new challenges that this role will present.”

Duco Buijze, CEO at Partner Logistics, says: “We’re very pleased to welcome Jolin and Mark to the team at Partner Logistics.

Between them they bring a wealth of knowledge and experience from the logistics industry and will play a key role in our future growth plans.”

Partner Logistics is a market leader in Europe for the provision of state-of-theart, highly automated warehousing primarily for frozen foods. It operates six facilities – two in the UK, three in the Netherlands and one in Belgium.

Established in 1998, Partner Logistics also works innovatively with transport partners to provide an integrated supply chain solution for clients that include Lamb Weston, Birds Eye, Pinguin and many other leading names in the frozen food industry. J

FOOD & DRINK BUSINESS EUROPE, FEBRUARY 2016

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Ice cream – Indulgence Without the Calories ensient Flavors’ APSS (All-Purpose Sweet S Solutions™) and DairyBoost™ portfolios help ice cream manufacturers differentiate themselves in the premium market. With demand for better-for-you options in the ice cream segment experiencing notable growth, Sensient’s solutions are designed to reduce fat and sugar significantly while compensating for any associated sensory shortcomings, particularly in terms of texture and mouthfeel.

The flavourings are natural, Halal & Kosher certified and also available as organic versions.

High quality botanical extracts derived using state-of-the-art technology to closely match the sensory characteristics of the raw materials are the fundamental building blocks of both ranges. In combination with Sensient’s comprehensive expertise in flavour technology and application know-how, authentic signature taste profiles come to life.

APSS and DairyBoost™ can be used as single solutions to lower either sugar or fat, and in combination to reduce both. By lowering the sugar and fat content, Sensient’s innovative ingredients enable significant calorie reductions while maintaining the indulgent, rich flavour and creamy mouthfeel of traditional ice cream. Both systems can be tailored to meet customer-specific requirements.

Sugar Reduction APSS flavourings evoke and enhance the sensation of sugar, and emulate the body and mouthfeel that are often lost when developing low calorie products. Bespoke variants are available and can be engineered to enhance specific taste profiles. Furthermore, APSS

can be used to mask the unwanted aftertaste of sweeteners such as Stevia, which is being increasingly used as a zero calorie sweetener in the ice cream segment across Europe.

Fat Reduction Sensient’s DairyBoost™ range is designed to deliver the rich mouthfeel and authentic characteristics of full fat dairy products.

Working parallel, the non-volatile components emulate the authentic dairy mouthfeel and the volatile components capture the true dairy flavour profile. The result is a full fat organoleptic sensation for low fat ice creams or frozen yoghurts. Each DairyBoost™ variant has a rich, heat-stable dairy base with signature top notes, and can be used individually or in combination with each other. The range is available in different flavour profiles, including Cream, Coconut, Condensed Milk, Dulce de Leche, Fresh Milk and Yoghurt.

“Better-for-you options are becoming more popular in the ice cream segment, but they are still niche products – and this is exactly what allows for interesting positioning possibilities. Our solutions enable manufacturers to set the highest benchmarks by developing low calorie ice creams with premium indulgence”, says Simon Daw, Director of Marketing at Sensient Sweet Flavors Europe.

With its comprehensive portfolio of inclusions, sauces and flavours, Sensient’s application experts can create outstanding product concepts with innovative twists that meet and exceed customer demands. J

Dow Completes Capacity Expansion For METHOCEL™ MX he Dow Chemical Company has completed a capacity expanT sion that will more than double its capacity for its METHOCEL™ MX food grades products line.

“This development supports the demand from fast growing market segments such as meat, meat analogues and gluten replacement and backs Dow’s commitment to multiple production lines for our food grades solutions to secure supply for our global customers,” explains Michiel van Genugten, Global Marketing Leader, Food Solutions.

METHOCEL™ MX solutions offer texture enhancing benefits to help food products have the juicy taste and chewy texture consumers expect. They also provide food manufacturers with easy-to-use and cost effective solutions for reduced-meat, vegetarian and vegan meat analogues as well as egg replacement for healthier yet tasty meat products. For more information about METHOCEL™ MX visit dowfoodsolutions.com. J 48

FOOD & DRINK BUSINESS EUROPE, FEBRUARY 2016