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Vol 1 Issue 1

Promoting Manufacturing Excellence

Pharmaceutical & Healthcare Cleanroom Logistics industry & business Website:

Environment Management Plastics Processing

www.industryandbusiness.ie


Contents 3&5 Pharmaceutical & Healthcare

Janssen Ireland manages a strong recovery. Major milestone for Millmount Healthcare.

7 Cleanroom

Cleanroom garment services from Spring Grove Cleanroom.

11 Environment Management

Contents

Ensuring customers drive the business.

13 Engineering

Kel-Tech - Ireland's leading precision fabrication and turning facility.

14 Plastics

TCL Plastics provides a total service package.

15 Industrial Development

Plastics processing - A modern, technologically driven industry.

17 Logistics

The Pallet Network means quality.

INDUSTRY & BUSINESS – VOL 1 ISSUE 1

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Unit 4C Gurtnafleur Business Park, Clonmel, Co. Tipperary, Ireland Website (www.visionid.ie) Phone number (+353 52 6181858) Email (info@visionid.ie)

Established in 2000, the VisionID philosophy is to be the leading independent supplier of Mobile Computing, Identification and Bar-Coding solutions within the Life Science & Manufacturing Sectors throughout Ireland. In today’s “real time” society, Data Capture Technology can facilitate improved performance and efficiency and deliver a realistic ROI in a very short timeframe VisionID provides these innovative solutions. The ethos of VisionID is to support & retain our customers through the provision of outstanding customer service. VisionID’s team of professionals have years of industry experience in delivering quality projects & solutions. For a brief consultation on how Data Capture Technology can be utilised to be of maximum benefit to your business, please contact us now.


Pharmaceutical & Healthcare

Janssen C Ireland Manages a Strong Recovery

ork-based Janssen Ireland has successfully overhauled its business model to reverse its flagging fortunes and enhance manufacturing competitiveness within the global pharmaceuticals market. Part of the Johnson & Johnson (J&J) Group, Janssen Ireland incorporates two pharmaceutical manufacturing facilities based at Little Island and Ringaskiddy in Cork. Janssen first commenced manufacturing operations in Ireland in 1981 with the development of its active pharmaceutical ingredients (APIs) plant at Little Island. The Little Island facility was established to add capacity to the Janssen Pharmaceutical business in Belgium, where the Janssen Company was founded by Dr Paul Janssen in 1953. Over Eur250 million has since been invested in developing the Little Island site. Janssen commenced construction of a new Eur500 million biologics site in Cork in 2005 and began full-scale production in 2009. The long-term viability of both sites is dependent upon continually attracting new business within the ever changing global pharmaceuticals and life science market. As part of J&J, the Irish sites have to prove themselves to be capable of being key contributors to the parent group’s development strategy, in order to retain jobs and resources.

Re-designing the Business Model To meet the challenges, management re-designed the business models for both sites to capitalise on their existing reputation within J&J for having a talented workforce with a ‘can do’ attitude and for project delivery on time and within budget. A key aspect of this approach was the development of CPD (Continuing Professional Development) policy with a view to ‘attract, motivate and retain’ employees. Janssen has invested Eur500 million in The Ringaskiddy establishing a biologics site in Cork. site was able to

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Part of the Johnson & Johnson Group, Janssen Ireland incorporates two pharmaceutical manufacturing facilities based at Little Island and Ringaskiddy in Cork. utilise the unused manufacturing capability of Janssen Ireland to commence manufacture of new development/toxicological and clinical phase (Phase 1–3) drugs. The facility was re-engineered to be capable of multi product output and the use of new technologies was maximised in order to minimise costs and cycle times. Through implementation of a strategy of continuous improvement the Little Island site has been able to win new business within J&J. This has been achieved by increasing the capacity occupancy for sterile APIs from 30% to 90% in order to consolidate the site’s position as the primary manufacturer of sterile API within J&J’s global network and by attaining regulatory approval for campaign manufacturing of sterile API to ensure shorter manufacturing cycle time and fully utilised equipment occupancy resulting also in a 10% yield increase per batch. Competitiveness in global terms has been secured by the continued reduction in the cost of goods produced at both sides, driven by a culture of continuous improvement. Janssen’s successful overhaul of its business model has ensured the preservation of more than 500 hitech jobs across its two locations in Cork. Award Winner Reflecting its endeavours over the past two years, Janssen won the overall Engineers Ireland Continuing Professional Development Company of the Year award for 2012. The awards recognise engineering-led organisations which, through adopting best-practice CPD activities and investing in the up-skilling of their engineers and technicians, have brought about real and measurable achievements According to Dr Michael Napier, Global Technical Services at Janssen, investing in engineering and technical staff was an essential element in turning the pharmaceutical business around. “We were facing reduced volumes and overcapacity on a global scale so we focused on ensuring our staff received the technical and management skills necessary to reduce costs, improve quality and delivery. As a result we won major new clinical products to develop and manufacture at the site introducing new technologies thereby growing the business in the Cork operation,” he explains.

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Pharmaceutical & Healthcare

NEW Cremer CFS-622x3 Modular Counting C System

CFS-622x3 counting system with 3 modules. remer pioneered, developed and introduced multichannel electronic counters for the pharmaceutical industry 30 years ago. Today the counting principles are essentially the same but the machines have been continuously developed to meet technological advances. The latest example is the modular high speed counting machine CF-622 and, now, the CFS-622 for intermediate production outputs. And, to go further, a new addition introduced recently is a 4 module version of the CFS-622. The CF-622 module has become the benchmark for the highest quality high speed counting machine for tablets and capsules. The “high speed” system uses from 3 or 4 to 10 modules and a patented container handling system. There is also a need for a system with an output to suit 1, 2 or 3 modules with a simpler frame and container handling for speeds of up to 50, 100 and 150 containers/minute respectively. The new CFS-622 x 1,2, 3 (and now also 4) modules fulfills this and will run even faster on smaller counts! The CFS (S = scroll container feed) has all the same features as the high speed system. The counting modules are totally servo driven for complete control and validation and typically run at 40 to 50 discharges per minute per module and will even run with some modules switched off! The ‘memory flaps’ are servo-driven, contact-less so are wear and maintenance free. The product feed hopper system has a special discharge ‘slide’ which ensures even distribution across the channels and the hoppers can empty completely. To keep the system compact and with precise container handling and separation a servo driven scroll is used. A feature of the individual modules is that they slide out onto a mobile support frame for easy, thorough cleaning or maintenance.

CF-622 module.

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INDUSTRY & BUSINESS – VOL 1 ISSUE 1


Pharmaceutical & Healthcare

Major Milestone For

Millmount Healthcare illmount Healthcare, the Irishowned company which provides outsource packaging services to pharmaceutical, OTC and healthcare manufacturers in Ireland and across the Eurozone, has expanded its business beyond Europe. The County Meath-based pharmaceutical packaging company has secured its first order with major Canadian pharmaceutical company Apotex. The deal entails Millmount Healthcare contract packaging Apotex’s high-value pharmaceutical products. Millmount Healthcare was founded in 1999 by Pascal Keogh to act as an outsource service partner to the global healthcare industry. The company currently employs 140 people across three manufacturing facilities at Navan, Drogheda and Stamullen.

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Outsourced Packaging Solutions Millmount Healthcare offers full service outsourced packaging solutions, encompassing primary/secondary packaging (including blister packaging and bottle filling), late-stage customisation, and cGMP warehousing services. Millmount Healthcare is much more than a packaging service provider and can offer its partners everything from the sourcing of raw packaging materials to the packing and delivery of a whole range of pharmaceutical, veterinary, nutraceutical and healthcare products. It is also equipped to handle all of the necessary inspections, certification and export documentation that its partners require.

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Indeed, Millmount Healthcare has established itself as a valuable outsource partner to some of the biggest pharmaceutical and generic drug manufacturers in Ireland and throughout the Eurozone. Major Milestone The contract with Apotex represents a significant win for Millmount Healthcare, giving the company its first foothold in the important North American market. Pascal Keogh, Managing Director of Millmount Healthcare, comments: “This deal with Apotex represents our first foray outside of the European market, which is a major milestone for our company. Although we are well accustomed to dealing with nonEuropean pharmaceutical companies, their business model has always been centred around using Millmount Healthcare as a springboard into Europe, with product sent to our facilities for packaging and release (by Millmount) to other EU destinations. This is the first time that the end-destination for the finished product will be a non-European country, another first for our company.” Millmount has developed a high-potent packaging facility in Navan, which specialises in small-series runs of high-value pharmaceutical products. The partnership with Apotex starts with a new key product recently launched into the pharmaceutical marketplace. Apotex is the largest Canadian-owned pharmaceutical company. The company produces more than 300 generic pharmaceuticals in approximately 4,000 dosages that are exported to 115 countries. The company is headquartered in Toronto, Canada.

“We chose Millmount Healthcare due to their unique service offering - their ability to handle small-series, high-potent packaging at competitive prices,” explains Elie Betito, Director Public & Government Affairs of Apotex.

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Cleanroom Technology

Cleanroom Solutions From

Ardmac rdmac is a long established leader in the construction of cleanroom and controlled environment solutions for the pharmaceutical, biotechnology, medical device, institutional, micro-manufacturing and healthcare

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sectors. By focusing on technology innovation, safe construction methods and management procedures, ardmac ensures right first time delivery of validated cleanroom facilities. Having worked in the technology sector for over 30 years, ardmac offers both turnkey and architectural performance envelope solutions. Ardmac’s expertise in the delivery of architectural solutions and its in-house engineering capabilities provides it with a unique ability to interpret clients’ requirements thus providing them with the best technical and value engineered solution for their User Requirement Specification (URS). Ardmac’s knowledge of client applications and coordination of processes and services provides a high quality environment. A strict adherence to DQ, IQ, OQ and construction procedures also ensures certainty of performance and a safe, compliant, and ‘on time’ validated facility. In addition to serving clients across the UK and Ireland, Ardmac operates throughout Europe and in international markets. Ardmac’s cleanroom product range includes partitioning and glazing systems, doors and walk on ceilings to suit various applications, with associated accessories such as wall protection, cleanroom furniture and pass through hatches. For further information contact: cleanrooms@ardmac.com.

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INDUSTRY & BUSINESS – VOL 1 ISSUE 1


Cleanroom Laundry

Spring Grove Cleanroom announce ISO 13485 Certification pring Grove Cleanroom, who operate Ireland’s most modern cleanroom laundry, are proud to announce their successful certification to the Medical Device standard ISO 13485. The achievement of ISO 13485 serves to highlight the effectiveness and thoroughness of Spring Grove Cleanroom’s commitment to both product and service quality. SGC’s core aim is to support our customers’ drive for safe, clean, compliant, effective medical products. The certification sets SGC apart as the only cleanroom laundry provider in Ireland or the UK to meet the stringent standards required by Medical Device Manufacturers. The facility is validated to ISO 5

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(Federal Standard 100) and isdesigned and operated to specifically meet the exacting needs of the pharmaceutical and medical device sectors up to GMP Class A. Commenting this new development, and the market response since the service was launched, Nigel O’Leary, Business Development Manager of Spring Grove Cleanroom, says: “We believe that we have a unique product in terms of quality, service and flexibility and the response from the market has been tremendous. In addition to providing superior processing standards our commitment to customer service and real value for money is unmatched. The introduction of our onsite sterilisation service is unique in the market and establishes yet another difference between Spring Grove Cleanroom and all other suppliers. We extend a warm invitation to users of cleanroom laundry services throughout Ireland to visit our facility and learn about our superior service and competitive pricing.”t our superior service and competitive pricing.”

For more information Nigel can be contacted on 087 2032934 or at nigel.o’leary@springgrove.ie. INDUSTRY & BUSINESS – VOL 1 ISSUE 1

Nigel O’Leary, Business Development Manager of Spring Grove Cleanroom.

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Pharmaceutical & Healthcare Nordson EFD Jet Dispensing System improves process control and reduces costs through exceptional fluid deposit repeatability at high production speeds fluids with a wide range of viscosities. Nozzles are available with 150µm, 200µm, 300µm and 400µm orifice diameters to accommodate a wide range of dot sizes. Most PICO valves, except those used exclusively for low-vicosity fluids, incorporate a heater near the fluid channel in order to thin the fluid to its optimum jetting viscosity. Depending on the rate of consumption, fluid can be supplied to PICO valves from syringe barrels, tanks or drum unloader systems. Valve Controller. The PICO valve controller is available in 2- and 4-channel configurations. Both versions feature a graphical digital display and a user-friendly menu system that makes it easy to set the fluid application parameters for each valve. Complex jetting processes can be easily created on a PC and downloaded via the integrated SD card slot. A password protection feature ensures that standard procedures are not changed accidentally, helping to achieve repeatable results.

With the ability to apply consistent shots as small as 2 nanoliters at speeds up to 150 dots per second, the PICO™ system is ideal for high-speed, high volume applications that require many small, precise fluid deposits. The narrow design of the valves, with a width of approximately 1⁄2 inch, makes them particularly well suited for installations where space is tight or valves need to be mounted close to each other.

The PICO jet dispensing system is a reliable, innovative option for o improve process control and reduce costs manufacturers seeking to through exceptional fluid deposit repeatability at high prroduction speeds.

Because the valve nozzle does not contact the substrate, the PICO system is also a good choice for applications where controlled amounts of fluid must be applied on surfaces that are not perfectly flat, such as printed circuit boards. Eliminating contact with the substrate also eliminates the need for vertical Z-axis movement and precise height positioning, which can significantly increase production speeds. The range of possible applications is huge. Sample uses include electronics (bonding cell phone speakers with UV-cure adhesives), life sciences (attaching needles to medical syringes), and precision mechanical applications (jetting small amounts of grease on micro gears). Jet Valve. The PICO jet valve contains two piezoelectric actuators composed of stacked ceramic coins that expand and contract in response to changes in voltage supplied through the valve driver. The extremely fast action of the piezoelectric actuators makes it possible to dispense fluid continuously at speeds of up to 150 cycles per second. Depending on the fluid being dispensed, the system can produce consistent shot volumes as small as 2 nanoliters, and the high resolution of the PICO valve controller (0.01 milliseconds) makes it possible to adjust deposit size with exceptional precision. PICO valves are available in several different configurations to handle

EFD International Inc. – Dunstable U.K. – Phone +44 1582 666334 8

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Lean Manufacturing Gaining a Competitive Edge With Lean Business Systems imerick-based Lean Business Systems works with many companies in the manufacturing and services sector throughout Ireland and internationally, enabling them to be truly competitive on the world stage. The road to ‘Lean’ in manufacturing and service companies begins with a complete review of the business. This will involve an analysis of the business model together with a review of each step taken to fulfill the customer’s needs, from the customer’s point of view. This is followed by developing a ‘Future state map’ together with a list of actions necessary to move the organization from ‘Current state’ to an agreed ‘Future state’. By repeating the above actions on a regular basis, continuous improvement actions are regularly identified laying the foundations for developing a continuous improvement culture across the organization. There are many tried and trusted Lean tools that are being applied to manufacturing and service companies today depending

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on their strength and weaknesses which under the guidance of the experts at Lean Business Systems will result in bringing about an amazing return on investment over a very short period of time. The typical tools deployed in transforming such companies to Lean include: • • • • • • • •

Value Stream Mapping (VSM) Eliminating waste (MUDA) Root cause analysis Total Productive Maintenance (TPM) Statistical process control Design for Lean Lean Operations Game Overall Equipment Effectiveness (OEE).

For further information contact Lean Business Systems on Tel 061 518408, E mail info@leanbusiness.ie.

Peak Fifteen Consultancy Build Competitiveness through Customer Focused Business Process Improvement

We have successfully

What Would >10% improvement in efficiency mean to your bottom line?

implemented proven Lean tools and techniques across multiple business and industry sectors, driving improved competitiveness and cost savings using our tried and tested competitiveness model

Find out how Peak Fifteen Consultancy can help you become more competitive and customer focused: Call: +353 85 1117408 / Email: charley@peakfifteen.eu / Visit: www.peakfifteen.eu

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Environment Management

Ensuring

Customers

Drive The Business O By Charley Swords, Managing Director, Peak Fifteen Consultancy

Real customer value is

determined by the quality and efficiency of products and services delivered

Charley Swords, Managing Director of Peak Fifteen Consultancy.

ver the years we have worked with many organizations in the area of customer value driving the operational, manufacturing and management processes resulting in them becoming Lean customer focused organizations. The end result has been on average a 10% improvement in efficiency which, depending on the size of the individual organisations, meant significant bottom line gains through cost savings and increased productivity. Such gains are critical to the long term sustainability of all organizations and they are achievable with the implementation of proven tools and techniques, including Lean models, where the customer is the business driver.

Competitiveness Model Our competitiveness model incorporates all processes from management, through to service production, manufacturing and product production, support business functions and financial processes – it is all encompassing. The key overarching focus in this model is people – the client organizations’ customers and employees. When we partner organisations in developing strategies to become truly customer driven and to

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implement a flexible change culture, we take a modular approach. This is extremely practical with intensive training on Customer Value Propositions and Lean Principles followed by a ‘hands-on’ involvement through each stage of the model. Starting Point The starting point is a diagnosis of how well aligned the business processes are with the clients’ customers needs and expectations – which results in a comprehensive proposal highlighting key areas for improvement. This is both a ‘top-down’ and ‘bottom-up’ review as all business is achieved through the employees and how well and efficiently they are managed will drive customer satisfaction and success. Practical solutions include, but are not limited to, employee training and engagement on priority project components and their role and responsibilities in the programme. For operational processes we develop customised suites of management information templates to guide benchmarking for internal measurement and control process development and implementation. Action Audit Models will be developed with weightings relevant to the client organization and linked to the management objectives and model – these support performance improvement and management. Customer segmentation models are developed to determine the varying returns by customer segment / category - all of which drive product, service and client profitability. If you are unsure of how well your organization’s business processes are integrated and aligned to your customer’s needs and expectations – undertake a detailed diagnosis now. You won’t regret it as it could mean the difference between surviving or building your competitiveness and growing. Now, what could a 10% improvement in your bottom line mean to your business? Peak Fifteen Consultancy was founded by Charley Swords, who has over 25 years experience in improving the performance of her clients. For further information visit www.peakfifteen.eu.

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Lean Manufacturing

Wonderware InBatch 2012 R2 Software Unifies Manufacturing Process Management nvensys Operations Management, a global provider of technology systems, software solutions and consulting services, has released a new version of its Wonderware® InBatch software. Used to manage complex batch processes that require maximum flexibility, InBatch 2012 R2 software is integrated with the company’s ArchestrA® System Platform software to provide a unified application and information environment across the complete manufacturing process. By making batch management data available to users and systems throughout the plant, the software increases operational effectiveness and enables better levels of business optimization in real time. With more integration, InBatch 2012 R2

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software makes equipment and phase information quickly available and useable with the company’s other offerings, including its Wonderware Historian, MES, Corporate Energy Management and ArchestrA Workflow software. This end-to-end approach to production management helps streamline processes, provides complete traceability and genealogy and improves collaboration across systems and people. Additionally, the software provides new recipe version history and comparison functionality based on XML documents, leveraging the World Batch Forum’s Batch markup language standards. Wonderware InBatch software is control system independent.. Its capabilities include recipe management, batch execution management, equipment history, material genealogy, stringent security, web-based reporting and the ability to facilitate the design and implementation of systems.

Proud of our association as a specialist supplier to Keltech Engineering

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Engineering

Kel-Tech – Ireland's Leading Precision Fabrication and Turning Facility aterford-based Kel-Tech Engineering specialises in precision sheet metal fabrication for various industries. Established in 1988 by owner and CEO, Ray Breen, Kel-Tech now operates from an 80,000 square foot facility, where the company offers a one stop engineering service that can go from a drawing to a complete painted and assembled finished product. The company also provides customer specific logistics and packaging.

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Constant Improvement Over the past five years, Kel-Tech has worked extensively with Enterprise Ireland on re-investing in capital equipment and the subsequent training and re-training of its employees to ensure the constant improvement of process and personnel. These improvements upon the methods of production coupled with lean manufacturing principles have led the company to a sharp increase in business. Kel-Tech attributes this increase to an extension of its product portfolio as well as the endeavours of a focused management, its dedicated employees, and a strong push towards exploiting export opportunities for its product lines. Indeed, exports are a major element of the company’s business, with North America proving to be an attractive market. Clients include major companies such as CAT and FG Wilson, as much of the business is directed at

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the power generating sector. The Kel-Tech product portfolio also includes canopy sets, lifting frames, hydraulic & fuel tanks, forklift protective cages, and control boxes for switchgear. Major Refitting The success the company has achieved, especially with the export of products into North America, can be attributed to the major refitting of its facility within the last few years. The facility in Waterford has received extensive re-fitting, involving the installation of punch, laser, and bending technology. A new ERP system for capacity planning within the plant has led to the streamlining of Kel-Tech’s process and improved accessibility for clients. Aside from the remodelling of the plant, Kel-Tech has also conducted thorough research into the power generating sector in order to expand its portfolio. Through such research, strategies towards offering a value product were developed. One such success involved becoming a certified supplier to CAT, which Kel-Tech achieved in October 2009, gaining itself the Bronze Status. Looking Ahead Moving forward, Kel-Tech plans to continue with its success as a major supplier to countries outside Ireland. At its Waterford facility, the company hopes to further automate certain equipment to allow for an expansion of its current capabilities. This automation will create leaner practices and a range of additional services designed to attract new customers. Indeed, Kel-Tech has ambitions to establish its Waterford site as a manufacturing centre of excellence within a future network of globally located facilities. Because of its important North American client base, the company is looking into starting a facility in the US. This will allow it to be closer to the client base there, while opening up new market opportunities. Since its days as a start-up plant in Waterford, KelTech has grown from supplying to local clients to servicing a number of major power generating companies around the world. In years to come, it hopes to establish not only more international business through mainly exports but also to build international manufacturing locations. Within the focused sectors it services, Kel-Tech aims to be the ‘go to’ company for clients who seek sheet metal solutions.

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Plastics

TCL Plastics Provides a Total Service Package CL Plastics, based in Donabate, County Dublin with a turnover of Eur7 million, operates a small team of highly focussed individuals who have been serving all Irish industry sectors since 1978. A core of solid world class supportive suppliers and long term customer relationships with a focus on value added are the cornerstones of the business. “Business has become more complicated,” reports Peter Crerar, Managing Director, “if you cannot demonstrate to your customers continuously that you are adding value to their business you will not survive. “Particularly difficult in our sector for the last 3-4 years has been incessant upwards price movements from base feedstocks. TCL had fundamental reviews with all of its customers, and

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with a combination of forecasts, forward purchase orders, consignment stock and listening to our customer’s needs we are able to tailor a service and provide flexibility outside the normal realms of the classic supplier environment which has rendered our customers more competitive and responsive to their own client’s needs.” He continues: “Part of the core process for TCL is our ISO certification, it allows us to monitor customer service requirements outside the standard measures of delivery performance and flag up areas that need attention, by constant review we can continuously improve our total service package.” “We have been used as the model service provider by some of our customers to illustrate to others how they should perform and in particular their flexibility, we always take that as a compliment,” says John O’Connell, Sales Director, “as we would see our role as innovators not only in bringing the very latest advanced resins to our customers but also the highest service package we can provide in delivering those products.” John O’Connell adds: “TCL’s viewpoint has always been long-term, if our customers are not competitive over the longterm they won’t be there in the future for us to supply them.”

Your Source Of The World’s Leading Plastics We only represent the best. . .

TCL Plastics Ltd Unit 1, Block 8, Ballisk Court, Donabate, Co. Dublin Tel: 00353 1 8836240 Fax: 00353 1 8085443 Email: infor@tclplastics.ie Website: www.tclplastics.ie 14

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Industrial Development

Plastics Processing – A Modern,Technologically Driven Industry he plastics industry in Ireland is a substantial industrial sector which has developed from humble beginnings in the 1950s. When processing of polymers commenced in Ireland it was a very simple process. The first key players in the industry were set up to supply the construction and packaging sectors. Companies were required to simply ‘shoot and ship’ products with little added value and little control taken in the design of the product. However, with the changing economic realities of the last three decades and the changes in telecommunications and product life cycles and the impact of globalisation, the Irish plastics processing sector is now a modern, technologically driven industry competing in a global world marketplace. The influx of US healthcare companies in the early 70’s brought competencies in product design, tool making, plastic materials and processing and assembly technologies.

T Plastics Ireland is the representative body for the plastics industry in Ireland

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Major Impact Indeed, the success of the IDA in attracting US foreign investment has had a major impact on the development of a sizeable plastics industry in Ireland. The existence of 12 of the world���s top 15 medical device manufacturing companies in Ireland has allowed for the development of many supplier companies to this sector. The plastics industry in Ireland spans many different sectors of business. The principal markets for the industry are the medical device, electronics, packaging, construction and domestic appliance industries. There are also many related industries which are linked to the plastics processing sector such as plastics recycling, tool making, rapid prototyping/ design services and material and equipment suppliers. Principal Processes The principal processes in the plastics processing sector are injection moulding, extrusion, blow moulding, rotational moulding and thermoforming. There are about 250 companies operating in the sector. Many of these companies are small and supply the multinationals based in Ireland. Contract moulders are the most important element of the overall industry. Geographically, the sector is well distributed across Ireland. However, there has tended to be significant clusters in Galway, Athlone, Cork and Dublin. Two thirds of companies are located in the Southern and Eastern region with the remaining one-third in the border, midland and western regions. As the industry is highly dispersed, it makes a major contribution to regional development. Plastics Ireland is the representative body for the plastics industry in Ireland and is a central business sector within IBEC. Membership of plastics Ireland includes both suppliers of raw material, services and equipment to the industry as well as the leading plastics processors in Ireland.

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Logistics

Cork Express Pallets Provides Friendly, Reliable and Affordable Service

ork Express Pallets is a Little Island-based logistics company offering next day delivery service to the 32 counties of Ireland and 48 hour service to and from the UK/European/International also available. Cork Express Pallets operates a single track and trace system with barcoded labels, unique pallet numbers and digital imaged proof of delivery across Ireland and the UK. The company’s motto is: ‘Small enough to Care – Big enough to Deliver’. It can deliver one carton to full loads, providing warehouse/storage facilities, CCTV surveillance and on line viewing of POD’s. The company’s location at Little Island adjacent to the M8 Motorway and Jack Lynch Tunnel provides it with easy access to Cork International Airport/Ringaskiddy Ferryport. Cork Express Pallets provides a friendly, reliable and affordable service. For further information contact Cork Express Pallets on Tel 021 4353991, Email sales@corkexpress pallets.com or visit www.corkexpresspallets .com.

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‘Small enough to Care – Big enough to Deliver’.

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Logistics

The Pallet Network

Means Quality

he Pallet Network is the leading distributor of palletised freight in Ireland with a network of 23 regional carriers. The 23 Pallet Network Members are all established freight companies offering excellent collection and delivery services. It is the largest network in Ireland with unrivalled coverage and reach, with 10 of the 23 members operating in single county territories. The Pallet Network has a unique integrated link to The Pallet Network UK. Its 88 members enable the Irish organistion to provide a premium UK Export/Import service. The Pallet Network is the only network in Ireland or the UK that has achieved ISO9001:2000 accreditation for both the central hub and for every network depot.

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â‚Ź15 Million Hub Facility The Pallet Network operates from a Eur15 million hub facility with the capacity to handle 5,000 pallets per night. This is the largest of its kind in Ireland, and is strategically located in Blanchardstown within two miles of the M50, Dublin Airport and the Port Tunnel, accessible to all types of vehicles carrying road freight. There are six loading bays and five double deck trailers can be handled simultaneously. All activity is monitored by CCTV cameras. The Pallet Network operates to standardised procedures and measures its performance across all depots with league tables, which are reviewed at regular meetings. The Pallet Network operate a single track and trace system with bar-coded labels, unique pallet numbers and digital imaged proof of delivery across Ireland and the UK. All members are experienced local freight companies who not only deliver but also provide their own national and international service through The Pallet Network. For further information visit www.tpn.ie.

For further information visit:

www.tpn.ie.

INDUSTRY & BUSINESS – VOL 1 ISSUE 1

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COVER STORY

At the Helm of Fazer Group Karsten Slotte, president and chief executive of Fazer Group, has presented his last set of annual results after five years in charge of one of Finland’s and the Nordic region’s biggest food businesses.

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stablished 122 years ago, Fazer has evolved from a cafe in Helsinki to become one of the leading bakery, confectionery and contract catering companies in the Nordic and the Baltic countries. The business is still family owned. With operations spanning eight countries and employing more then 15,000 people, Fazer is divided into two business areas – Fazer Brands, which produces baked goods and confectionery, and Fazer Food Services.

started biscuit production in Finland and purchased Svenska Forsvarsrestauranger in Sweden. The Finish food group also increased its production capacity in Moscow to allow further expansion in Russia. On the food service side of its business, Fazer opened the first bakery shop in the style of the Swedish Gateau, which operates bakery and confectionery shops in and around Stockholm and was acquired by Fazer in 2011, and the first Fazer-branded personnel restaurant was opened in Finland. Defying the bleak economic environment, Fazer increased net sales by 6.4% to Eur1.676 billion and operating profit from Eur54.2 million to Eur68.6 million for 2012. The operating margin improved from 3.4% for 2011 to 4.1% last year. The growth in net sales was strongest within the group’s confectionery operations, but was also solid in the bakery business in Finland and Sweden and the food services and chief executive of operations in Norway and Sweden. Some Eur21 million of the growth in net sales compared to 2011 was due to the strengthening of the Swedish krona and Russian rouble against the euro. The net effect on the net sales of acquired and divested operations was Eur16.1 million.

Market Leader Fazer holds strong positions in all of its main markets. In Finland, Fazer is the market leader in all its businesses (bakery, confectionery and food services), in Russia it is the market leader in fresh bread and in the Nordic countries it is number one in both food services and fresh bread. Fazer has successfully internationalised its business and now generates over 50 per cent of group turnover from outside Finland. Fazer’s prod- Karsten Slotte, president ucts are exported to over 40 countries global- Fazer Group. ly. Fazer has developed a strong brands portfolio. Karl Fazer Milk Chocolate is Finland’s most valued brand, while the Fazer brand is second. The group’s other brands, such as Dumle, Geisha, Oululainen and Amica, are also well known and popular in Finland and nearby regions. Future Growth The year was characterised by a focus on strategic and organisational Eventful Year reform to ensure that the company can grow and expand profitably 2012 was an eventful year for Fazer as it produced a solid financial in the future. performance whilst further developing its potential for continued “After an exceptionally challenging year, I’m very satisfied with future growth. During the year, Fazer entered new markets, it has the result we have achieved. We also succeeded in strengthening our

With operations spanning eight countries, Fazer Group employs more then Karl Fazer Milk Chocolate is Finland’s most valued brand.

15,000 people.

FOOD & DRINK BUSINESS EUROPE, APRIL 2013

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position on our main markets of Finland, Sweden and Russia,” says Karsten Slotte. “Our strong brands, successful novelties, skilful employees and value-added products and services were the basis for Fazer’s sucEstablished 122 years ago, Fazer has evolved from cess in 2012. As Fazer a cafe in Helsinki to become one of the leading is doing well, this is bakery, confectionery and contract catering the right time to aim companies in the Nordic and the Baltic countries. for even stronger growth.” Fazer revised its strategy in 2012, establishing a new business area - Fazer Brands, which brings together the group’s bakery, biscuit and confectionery businesses and the new Cafés & Shops business. Fazer Brands focuses on branded consumer business activities, and Fazer’s brands are at the core of the new strategy. “The new Fazer Brands organisation gives us new opportunities to share experiences of international business. In addition, we can accelerate the positive development in the bakery, confectionery and service businesses. In February 2013, Fazer Food Services started to build a new business structure in order to ensure balance between strategic development and operative performance. Fazer Food Services’ goal is to grow by creating an even stronger client focus, by meeting different clients' needs with new innovative solutions and increasing cross-border team work within the business area,” Karsten Slotte comments. Bread production line at Fazer Group.

Key Achievements Since Karsten Slotte took the helm in November 2007, Fazer has increased turnover by over 40% from some Eur1.2 billion in 2007 to almost Eur1.7 billion in 2012. Last year’s operating profit of Eur68.6 million compares to Eur54.2 million in 2011. “Fazer’s successful strategy is based on profitable growth. The four cornerstones of our strategy are to build on our leading brands, develop our operational excellence, continue our growth in valueadding segments and services, and growth markets,” he explains. A major milestone in the development of the modern Fazer business occurred in 2006, when the main owners of Cloetta Fazer decided to split the company and the Fazer branded confectionery business returned to Fazer Group. “The confectionery business has always been the heart and soul of the Fazer brand. Being a familyowned company, Fazer has a strong focus on quality, brands and people, and our values and ethical principles are the foundation for everything we do,” he points out. Strategic Acquisitions During his time in charge, Fazer has completed some very strategic acquisitions in order to strengthen its market standing across all sectors of activity – bakery, food services and confectionery. For instance, within bakery, Fazer acquired Lantmannen Farskbrod in 2008 to become the second-largest player in the Swedish bakery market. The purchase included one of Sweden's most well-known and popular brands – Skogaholm. “As the artisan-type premium bread is a growing segment, we bought the Gateau bakery business in 2011 and have in one year expanded the business to Southern Sweden and Finland.” Karsten Slotte elaborates: “This year, we opened our first bakery shop in

Russia. In 2009 we bought the Neva Bakery in St Petersburg and expanded our business in the frozen segment.” He continues: “We have also expanded our food service business in the growing public sector, and in 2012 we bought Svenska Forsvarsrestauranger in Sweden, to give one example of this growth path.” “In the confectionery business, we have been able to grow our business organically, which is a great achievement in markets which mainly are mature,” he remarks. In August 2012, Fazer acquired Kraft Foods’ biscuit production business in Finland. “The integration of the operations into Fazer has been very smooth and this spring, consumers will get to taste premium-quality Fazer-branded biscuits,” he adds. Indeed, Fazer sees excellent opportunities in developing the entire Finnish biscuit market and utilising confectionery brands in the biscuit category. Succession Fazer’s board of directors has started a recruitment process to find a new president and chief executive, following Karsten Slotte’s decision to step down in order to spend more time with his family, although he intends to remain active in the business world through his work on different boards of directors. According to Karsten Slotte: “The company is in very good shape and now is the right time to hand the leadership over.” So what are the strengths and weaknesses of the business that his successor will take over? “During these years, we have built a strong growth platform. We have an excellent product and brand portfolio and competent and committed people. Fazer has the right assets to grow both on its home markets and internationally. Today we are also less dependent on our success in Finland as more than 50 per cent of our net sales is generated outside Finland,” Karsten Slotte replies. “Our main challenges are the tough economic situation in Europe and the somewhat unfavourable market development in Russia. Rising raw material prices, especially grain prices, and changing eating habits will, of course, also put pressure on our business.” He will continue in his current position until his successor takes over. Looking ahead, Karsten Slotte believes that the confectionery sector in Northern Europe will continue to be stable and dominated by the main players. “The chocolate category has growth potential. In the bakery sector, there will be strong price pressure on pre-packed bread, while the artisan type of bread will grow. Focus on healthy value-adding bread will also grow,” he says. The Fazer Group chief concludes: “Fazer will play a leading role in both sectors in our main markets. We will shape and develop the market, and add value to both our customers and the consumers.” J

FOOD & DRINK BUSINESS EUROPE, APRIL 2013

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I BREWING

Carlsberg UK Complete £60 Million Brewery Development Carlsberg UK has increased the capacity and flexibility of its brewery in Northampton following a £60 million development programme, which culminated in the recent opening of a new bottling plant. ontrolling about 15% of the sure of Carlsberg’s second UK brewUK beer market, Carlsberg UK ery site in Leeds. is the fourth largest brewer in the country, behind Heineken, Increased Market Share Molson Coors and Anheuser-Busch Carlsberg UK is managing to outperInBev. The new bottling plant at the form the declining UK beer market, Bridge Street brewery in Northampton where overall volume fell by 5% last is capable of producing 60,000 bottles year. Although Carlsberg UK’s volume of beer an hour. was down by 3% in 2012, as the poor Called the Carlsberg Cube, the weather during the summer more than 75,000 sq ft bottling facility is located offset the positive impact from the adjacent to the River Nene and is one of Diamond Jubilee celebrations and the the first buildings to be constructed in EURO 2012 soccer tournament, its the Northampton enterprise zone. The market share improved by 30bp to building has been carefully designed to The new line is capable of producing 60,000 bottles of beer an 15.3%. This was driven by a particularly good performance in the on-trade reduce the brewer’s carbon footprint hour. market, helped by the company’s and exceeds UK efficiency regulations by 6%. It incorporates a 3,000-litre rain- upgrading the capacity and capability of expanded portfolio offering, while its offwater harvesting tank. its Northampton brewery. The newly trade market share declined slightly. Carlsberg UK is part of Carlsberg When running at maximum speed, the opened facility complements an existing Western Europe, one of three business new bottling line can produce up to ten- bottling plant and three canning lines. million bottles a week. It is bottling the “We’ve been brewing here since the regions which make up the brewer’s global full range of Danish brewing giant’s beers 1970s and with the opening of this new business. The other two regions are Eastern in the UK, including Carlsberg, Carlsberg facility, we’re bringing all our bottling Europe and Asia. Export, Tuborg, San Miguel and Fresca, to Northampton,” says Benet Slay, chief Despite beer volumes being in decline in as well as the newly launched Somersby executive of Carlsberg UK. Western Europe, which remains cider (see Panel). Carlsberg UK completed an earlier Carlsberg’s largest region, the brewer has £40 million expansion programme at been able to consistently increase market Long-term Future Northampton in October 2011. This share and improve efficiency following a “This bottling line secures our long-term entailed expanding brewing capacity, major cost cutting programme, including future in our UK home of Northampton the introduction of a third canning line the closure of the Tetley brewery in Leeds where we have been based for over thirty and measures to improve energy effi- and consolidation of production at years,” says Jorgen Buhl Rasmussen, presi- ciency and to reduce waste. Northampton. dent and chief executive of Carlsberg The Northamton brewery has been Group. “It provides jobs for the town and expanded to a capacity of almost 7 mil- Profitability demonstrates to the wider world that lion hectoliters to accommodate However, the UK market with single-digit Northampton is a key centre for busi- increased production following the clo- percentage beer margins is at the lower end ness.” of the profitability scale in Western He adds: “The UK is an incredibly Europe, where the average is 13%-15% important market for Carlsberg Group and where Carlsberg is targeting and the completion of this project returns of 15%-17% by 2015. means that all UK bottling can now be “The UK is not as profitable as many done in the UK. This is good news for other markets,” points out Jorgen Buhl us, it's good news for our customers, Rasmussen. “It has one of the higher our consumers, and, importantly, it's beer taxes in all the European countries great news for British brewing.” so it’s not like prices are very low in the UK.” £60 Million Investment Jorgen Buhl Rasmussen elaborates: Carlsberg has invested about £20 “We’ve taken cost out and we had to. million in the bottling plant having Carlsberg has invested about £20 million in the bottling plant at The UK, going five, six, seven years already spent £40 million in Northampton. back was very, very low single-digit

C

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Carlsberg Targets UK Cider Market Carlsberg entered the fast growing UK cider market last year with the launch of its Somersby brand, which is produced in Herefordshire. Carlsberg is targeting the mainstream cider segment. “There is a lot of activity in premium cider and we felt there was an opportunity to revitalise the mainstream and provide another credible option within that space,” explains Nick Howells, head of innovation at Carlsberg. “I think as a business one of Carlsberg’s strengths is its mainstream brands. That is where we are strong.” Somersby was first launched by Carlsberg in Denmark and Norway in

2008. In Denmark Somersby is the market leader and in Norway Somersby is the second largest cider on the market. Following the success of Somersby apple cider, a pear variant as well as fruity flavoured line extensions have been launched in both countries. Somersby is now sold in more than 22 countries with Northern Europe as its main markets followed by Western Europe. In Europe the cider category has grown continuously by over 3% per annum over the last ten years and is projected to continue to grow over the next ten years. In the Nordic countries cider represents 5-10% share of beer volume.

margin. That’s the key strategy to be successful now in Europe. If you cannot make your business model more efficient, it’s really hard to be successful and grow your bottom line.”

Group is currently implementing one of its largest and most important projects in recent years. The roll-out of the supply chain integration and business standardisation project in Supply Chain Integration Western Europe will see To further enhance efficiency, Carlsberg Carlsberg’s Swedish subsidiary go live with the system in the spring 2013, followed later by Norway and the UK When running at maximum speed, the new bottling line can The project will be a produce up to ten-million bottles a week. key contributor to the transformation of Carls-berg’s optimise asset utilisation. Western European operating The project will yield significant longmodel, with all procurement, term benefits when fully implemented production, planning and logis- across Western Europe. However, it will tics across the region being cen- also entail substantial implementation trally managed, supported by costs. For 2013, 2014 and 2015, standardised processes and data, Carlsberg Group expects additional costs and full transparency. The objec- related to the project of approximately tive of the exercise is to improve DKr300-400 million (£34-45 million), Jorgen Buhl Rasmussen, president and chief executive of capabilities, customer service and DKr400-500 million and DKr500 milCarlsberg Group. efficiency, increase speed and lion respectively. J

I CONSTRUCTION

Caddick Construction Completes Work on Carlsberg Brewery addick Construction has successfully C completed a £7.2 million extension to the new bottling hall for Carlsberg UK at its brewery in Northampton. The 75,000 sq ft expansion to Carlsberg’s current facility is designed to enable the company to double its production of key brands including Carlsberg, Carlsberg Export, Carlsberg Special Brew and San Miguel beers to ten million bottles a year. Chris Allott, contracts manager, at Caddick Construction, says: “We were appointed by Carlsberg to deliver this pro-

ject due to our extensive experience in the food and drink industry. It is a specialist sector and we have delivered a number of high profile schemes and are currently FOOD & DRINK BUSINESS EUROPE, APRIL 2013

underway constructing the largest dairy in the UK. “ He adds: “The Carlsberg bottling plant has been delivered to the highest standard.” Caddick Construction and Caddick Civil Engineering are the operational arms of Caddick Group PLC. Offering more than 30 years' experience across a range of market sectors including commercial, education, industrial, leisure, refurbishment, residential, care, retail, mixed use and fit out. The Group employs almost 500 people and its turnover is £90 million. J 13


I BISCUITS

New Head For Refocused United Biscuits Following the successful disposal of its KP Snacks business, United Biscuits, one of Europe’s leading biscuits manufacturers, has appointed Martin Glenn as its new chief executive. artin Glenn has been chief executive of frozen food group Birds Eye Iglo since 2006, following its £1.2 billion acquisition from Unilever by private equity firm Permira. He was previously chief executive of Pepsico UK and Ireland where he led the growth of the Walkers Crisps brand, increasing its market share from 29% to 67%. He replaces Benoit Testard, who joined UB in 1999 and was appointed chief executive in 2011. Jointly owned by private equity firms Blackstone Group and PAI Partners, UB is the leading manufacturer and marketer of biscuits in the UK and second largest in the Netherlands, France, Belgium and Ireland, and also has as a rapidly growing international business outside Europe. UB manufactures and markets a wide range of products in the UK and Western Europe that are household names in their respective markets. Among its popular brand names are McVitie’s, Penguin, go ahead!, McVitie’s Jaffa Cakes and Jacob’s in the UK and BN, Delacre, Verkade and

M

UB is the leading manufacturer and marketer of biscuits in the UK and second largest in the Netherlands, France, Belgium and Ireland.

Sultana in continental Europe. Martin Glenn takes over a £1.3 billion turnover business. “It’s a big business – of a similar size to Birds Eye Iglo,” he remarks. “I’ll be able to use my experience from Walkers as well as my experience of private equity. I certainly don’t have a problem working with private equity per se.” David Fish, chairman of UB, says: “I am delighted to welcome Martin to UB. He has an outstanding record of success at both Birds Eye Iglo and Pepsico UK and Ireland. We look forward to him leading UB through the next stage of its successful development both in Western Europe and globally.” Growth Strategy UB has invested record amounts in improving its manufacturing infrastructure to enhance efficiency while continuing to strengthen the appeal of its products. Blackstone Group and PAI Partners have pursued a three-pronged strategy - to support revenue growth through continuous investment in core brands and product development; to address health, indulgence and convenience trends; and to improve profitability through major cost cutting programmes in selling, general and administrative functions, procurement, plant overhead, manufacturing and logistics. UB has embedded ‘lean’ principles across all its operations and driven increased efficiency to fund investment in its brands. To fuel growth, UB has continued to strongly support its core brands, with innovative line extensions, improved product recipes and packaging redesigns. The biscuits group has developed a successful health and nutrition strategy. In 2005, it embarked on a major ten-year programme to improve the nutritional content of its products, by removing trans fat, artificial colours and flavours, and by reducing saturated fat, salt and sugar levels. Equipped with a strong brands portfolio, UB is well positioned in large, stable markets, which are expected to continue to grow in the medium to long-term, driven FOOD & DRINK BUSINESS EUROPE, APRIL 2013

Martin Glenn, new chief executive of United Biscuits.

by consumer trends toward convenience, healthy snacking and indulgence. Snacks Disposal UB sold its KP Snacks business last December for £500 million to Germanbased Intersnack, one of the largest manufacturers of savoury snacks in Europe. Operarting four factories and employing about 1,500 people, KP Snacks is the second largest bagged snack company in the UK and has shown consistent top and bottom line growth for the last five years. Its portfolio includes household brand favourites such as McCoy’s, Hula Hoops, KP Nuts and Skips, together with a range of other well known brands ripe for development like Phileas Fogg, Space Raiders, Nik Naks and Wheat Crunchies. Blackstone Group and PAI Partners had previously separated the KP Snacks business from UB with a view to selling both businesses individually. The combined UB was offered for sale in 2010 with a price tag of about £2 billion but the auction process was unsuccessful. A sale of UB is still on the cards. Blackstone Group and PAI Partners acquired UB for ?1.6 billion in 2006. J 15


I CHEESE

Bel Group Seeks Bigger Slice of Global Cheese Market Bel Group, the French branded cheeses specialist, is targeting sales of €3 billion by 2015. el Group’s core business is the creation, production and sale of branded cheeses. Bel owns five core international brands - The Laughing Cow, Kiri, Leerdammer, Boursin and Mini Babybel - and over 25 local brands, many of which are leaders in their markets, such as Picon in Lebanon, Regal Picon in the Middle East and Maredsous in Belgium. Bel has developed a technological edge within the cheese making industry with its particular expertise in processed cheese and in miniaturisation. These competitive advantages have allowed Bel to become the world’s third-leading manufacturer of branded cheeses and the global leader in the portion segment.

products unique. Our group has undeniable expertise in the fields of packaging and marketing, and real responsibility in terms of quality and nutrition. The collective spirit and the enthusiasm of our 11,400 employees around the world are also a true driver of the company's growth.”

B

Market Sectors The French family-owned group serves three main markets sectors – consumer, food service and industrial. With more than 30 subsidiaries and operating 27 production sites around the world, Bel Group sells its cheese brands to consumers in over 120 countries. Bel holds leading positions in 25 countries and ranks among the top-three cheese brands in 45 countries around the globe. Bel Foodservice supplies both the institutional and commercial catering channels, while the group’s PAI (intermediary food products) business sells Bel cheese brands to Europe's food industry and fast food chains.

Bel Industries markets and sells specially prepared dairy proteins to food industry customers for the manufacture of products such as ice cream, yogurt and other foods that use dairy ingredients. Bel Industries exports 60% of its production to 50 different countries. Bel has been focused on international growth since establishing its first foreign subsidiary in 1929. Following expansion in

the European market, Bel moved into the African continent in the early 1970s with the establishment of its first operations in Morocco. The branded cheese group is currently organised into five geographical regions - Western Europe, Eastern Europe, Americas & Asia-Pacific, Greater Africa, and Near and Middle East. Brand Strength Although Bel’s five core brands are all distinctly positioned, they share some common values, including a certain irreverence, a healthy and fun eating experience, and personalities that can be adapted to local eating habits. Indeed consumers in many countries consider The Laughing Cow and Kiri to be local brands. These brands have significant growth potential in existing markets as well as in new territories. Bel’s organisational structure allows it to stay close to consumers in each of its markets and to adapt its products to meet local tastes. For example, The Laughing Cow cheese blocks launched in 2011, were specifically designed for eating habits in the Ukrainian market, while Kiri is used in cake recipes in Japan and Korea. According to chief executive Antoine Fievet, Bel Group has a number of advantages over other food companies. ”Bel has many strengths, all of which are recognised by our competitors,” he says. “I would, of course, start with our brands, four of which are ranked among the world's twelve leading cheese brands. Our manufacturing expertise is also a strength that makes our FOOD & DRINK BUSINESS EUROPE, APRIL 2013

Financial Performance Despite a slowing economy in Europe and unrest in some markets of the Near and Middle East region, Bel managed to increase sales by 4.8% to Eur2.65 billion for the year ended December 31st, 2012. Operating income rose by 24% to Eur211 million as margins were successfully rebuilt. The recovery in profitability stems from robust sales growth in Greater Africa and the first benefits from restructuring measures in Eastern Europe. Bel maintained steady margins in Western Europe and the Americas & Asia-Pacific region due to an improved product mix, tighter management of advertising and promotion costs and industrial productivity gains. Western Europe remains Bel’s biggest market, accounting for 56.6% of total sales and 64.5% of group operating profit in 2012.

The group’s balance sheet was again strengthened during 2012 – year end total equity stood at Eur1.15 billion, compared with Eur1.04 billion a year earlier, while net financial debt was Eur64 million, down Eur130 million on the prior year. While the trading environment is still challenging in Europe and uncertainties remain in some of the group’s other international markets, Bel is confident of defending and growing its positions in the world cheese market, supported by its healthy balance sheet, strong innovation pipeline and balanced geographic spread. J 17


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I

DAIRY

Royal FrieslandCampina Achieves Record Revenue in 2012 Royal FrieslandCampina has reported record sales for 2012 along with a substantial increase in profit, while making further progress in implementing its ‘route2020’ development strategy. ormed by the merger of Dutch the sales prices. Far-reaching efficienco-operatives Friesland Foods cy improvements in production and and Campina in 2008, cost management by the European FrieslandCampina is the operating companies also contributed world’s fourth largest dairy company towards the increased profit. behind Nestle, Danone and Lactalis. However, the economic situation in Owned by 14,132 member dairy Europe continues to exert pressure on farmers in the Netherlands, Germany volumes and margins. and Belgium, FrieslandCampina employs about 20,000 people in 28 Cees ’t Hart, chief executive of Royal FrieslandCampina. Route2020 Strategy countries. Its products are sold in In 2012 FrieslandCampina took furmore than 100 countries worldwide and its dairy-based beverages and branded cheese. ther major steps towards achieving its key regions are Europe, Asia and Africa. For instance, FrieslandCampina reported ‘route2020’ strategy. Route2020 is Royal FrieslandCampina’s products include a 10.2% volume growth in infant and tod- FrieslandCampina’s ten years development dairy-based beverages, infant and toddler dler nutrition and a 9.5% volume growth plan for improving the Dutch dairy conutrition, cheese, butter, cream, desserts of dairy-based beverages outside of Europe. operative’s financial performance and the and functional dairy-based ingredients. In The branded cheeses category achieved vol- returns paid to farmer members. Route addition to consumer products ume growth of 4.4% through increased 2020 is aimed at growth and value creation FrieslandCampina also supplies profession- exports but the volume of dairy-based bev- in selected markets and product categories al customers, the food industry and the erages in Europe and commodities in order to improve the position of the copharmaceutical sector. dropped. Acquisitions and currency Financial Performance translation effects also helped FrieslandCampina increased profit in 2012 boost revenue. The acquisition by 26.9% to Eur274 million and revenue of dairy company Alaska Milk by 7.1% to Eur10.31 billion, as the dairy Corporation in the Philippines co-operative continued to benefit from a and of IDB Belgium conshift in sales volumes from commodities tributed Eur237 million into higher value products in the growth towards the revenue growth. categories of infant and toddler nutrition, Currency translation effects had a positive effect on revenue of 1.4% (Eur139 million). 2012 operating FrieslandCampina reported a 10.2% volume growth in infant and profit grew by toddler nutrition for 2012. 19.6% to Eur482 million, reflecting improved operative’s member dairy farmers. Under results from the Consumer the route2020 strategy, FrieslandCampina Products International, will focus its investments and innovations Ingredients and Consumer on a selected number of value drivers. Products Europe business For example, during 2012 Friesgroups. Operating profit rose landCampina invested Eur423 million pribecause, unlike in 2011, more of marily in capacity expansion for infant and the increases in raw material and toddler nutrition and milk processing. Sales FrieslandCampina employs about 20,000 people in 28 countries. packaging could be passed on in activities in the Netherlands were integrat-

F

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grade infant nutrition. FrieslandCampina is also preparing for the abolition of the milk quota in 2015, which is expected to result in an increase in the volume of milk from member farmers. The new drying factory would also be able to process this increased milk supply into milk powder in the near future.

number of innovations that will be introduced in 2013. Most of the growth of dairy-based beverages will take place outside of Europe. Within Europe a slight reduction in the volume of dairy-based beverages is expected. Europe will also remain a difficult market for branded cheeses, although volume growth is foreseen due to increased export to, for example, to Russia and North Africa and the expansion of the group’s cheese activities due to the acquisition of IDB Belgium and the intended acquisition of Zijerveld en Veldhuyzen and G den Hollander Holding, a transaction which has just been approved by the European Commission (See Panel). J

Outlook For 2013 The focus for FrieslandCampina in 2013 is on the further implementation of the route2020 FrieslandCampina is planning to build a new processing plant at strategy. FrieslandCampina Needseweg in the Netherlands. anticipates further volume growth of added-value ed into a single organisation during the products. The growth of infant and year as were the export activities of toddler nutrition in particular is FrieslandCampina Cheese Specialities. expected to accelerate due to new proFrieslandCampina also commenced reorga- duction capacity becoming available nization programmes in Germany and in both the consumer and industrial Hungary to improve its competitive posi- markets in the second half of 2013. tion. Organic growth with dairy-based beverages is also foreseen partly due to a Focus on the Future Cees ’t Hart, chief executive of Royal FrieslandCampina, comments: ”Friesland European Commission Approves Acquisition of Zijerveld and Den Hollander Food Campina can look back on a good year. by Royal FrieslandCampina The route2020 strategy has delivered results faster than expected. The focus is on The European Commission has the future. Every year the company invests approved the acquisition of around 400 to 500 million euro. Much of cheese specialist, Zijerveld, and the investment is to achieve growth so that its packaging unit, Den Hollander the expected increased quantity of member Food, by FrieslandCampina. The milk can be processed.” acquisition will enable In 2012, FrieslandCampina invested FrieslandCampina Cheese to offer Eur423 million primarily in capacity customers a more comprehensive expansion for infant and toddler nutrition cheese portfolio and package of services. and milk processing. The‘route2020’ strateThe deal reflects FrieslandCampina’s ambitions to grow in added value cheese products. Zijerveld gy will involve further significant investFood not only offers its clients a wide range of specialty items such as the North Holland cheeses ments to expand milk processing capacity, (PDO ) and farmhouse cheeses but also knowledge, tailor-made concepts and its own logistics serwith between Eur400 million and Eur500 vices. The company has a turnover of over Eur400 million. million earmarked for 2013. Cees ‘t Hart, chief executive of Royal FrieslandCampina, says: “This investment is in line with our Cees ’t Hart continues: “The company is route2020 ambitions to become a preferred supplier for our clients in various market segments. financing this production capacity expanZijerveld complements our existing business in the pre-pack segment and contributes to further value sion with its own means. Most of the growth for our customers, in particular in the fresh counter segment with specialty cheeses.” investments are taking place in the Branded cheese, dairy-based beverages and infant and toddler nutrition are key value drivers of Netherlands and, in particularly, in the area FrieslandCampina’s corporate strategy outlined in route2020 of expanding the production capacity of Zijerveld provides a comprehensive range of Dutch-type cheeses and cheeses from foreign countries infant and toddler nutrition – the segment while also offering its customers tailor-made concepts and its own logistics services. The cheese spein which the most robust growth is being cialist, which is located in Bodegraven, employs about 300 people and has its own ripening warehousachieved by responding to the increasing es, packaging and logistics locations. Zijerveld consists of three commercial divisions: ‘Retail’, demand from Asia for high-quality dairy ‘Traditional & Out of Home’ and ‘International Markets’. products.” Den Hollander Food, the packaging business unit of Zijerveld, is located in Lochem, the For example, FrieslandCampina is planNetherlands. The cheese packer has thirteen packaging lines and three grated cheese lines. The focus ning to build a new processing plant at its is on sliced cheeses in various re-closable packages. The majority of production is for large European existing production site at Needseweg in retailers and for other cheese producers. The packaging unit has about 140 employees. the Netherlands. In line with The European Commission has approved the acquisition, subject to production capacity, a sales volFrieslandCampina’s route2020 growth ume of semi-hard goat’s cheese and goat’s milk, being made available to one or more external players. strategy, the proposed development will Specifically, this means that between 35% and 45% of the goat’s cheese sales of Amalthea, as a partinvolve the construction of a factory for the ner of Zijerveld, must be sold on the open market. production of milk powder which is suitFrieslandCampina will enter into a constructive dialogue with Amalthea to find a satisfactory soluable for use in specific types of high quality tion. Zijerveld continues to trade as an independent entity within the FrieslandCampina Cheese, infant nutrition for children and babies Butter & Milk Powder business group. aged two years and older. The investment is in response to growing demand for highFOOD & DRINK BUSINESS EUROPE, APRIL 2013

21


I DAIRY

Dairy Crest Continues to Increase Added Value Sales and Drive Efficiencies Dairy Crest, the leading UK-owned dairy foods company, is continuing to focus on growing added value sales and improving efficiency across the business. airy Crest purchases about 2 billion litres of milk annually and had a turnover £1.63 billion in 2012. Since the Eur430 million (£344 million) sale of its St Hubert French branded spreads business to Montagu Private Equity last year, Dairy Crest has become a broadly based dairy business solely focused on the UK with strong brands including Clover and Country Life spreads; Cathedral City (the UK’s leading cheese brand) and Frijj flavoured milk drinks. The proceeds from the deal left Dairy Crest virtually ungeared.

D

Mark Allen, chief executive of Dairy Crest.

Major Strength Being a broad dairy business has been a major strength for Dairy Crest in the current economic climate as a poor performance by the Dairies division, which is one of the UK’s major suppliers of liquid milk to retailers and the doorstep market, has been off-set by the group’s other activities in cheese and spreads. Dairy Crest’s medium term strategy is to improve the performance of its Dairy division through efficiency improvements under a £75 million capital expenditure programme, while continuing to build on the success of its branded foods business. Management has set a 22

medium term target of 3% return on sales from the underperforming Dairies division, which processes about 1.7 billion litres of milk a year. Dairy Crest is performing solidly in a challenging economic environment and overall trading in the first nine months (ended 31 December 2012) of its current financial year remains in line with expectations. The group’s four key brands continue to grow, benefiting from the innovative new products launched in recent years. Cathedral City, Country Life, Clover and Frijj registered sales volumes up by 4% and sales values ahead by 5% over the nine month period. The Dairies business has continued with initiatives designed to restore profitability. Cost Savings Dairy Crest is on track to exceed its annual cost savings target by delivering savings of around £23 million this year. It has also identified several meaningful projects for next year that should enable it to maintain its strong track record in this area. “The sale of St Hubert has significantly strengthened Dairy Crest's financial position, and has provided a strong foundation for the future,” says Mark Allen, chief executive of Dairy Crest. “We still hope to use some of the proceeds to supplement the organic growth that our brands continue to deliver, but we are determined that any acquisition must deliver strong returns for shareholders. We do not currently anticipate that any significant acquisition will be made in the near future, and accordingly we have identified a number of internal capital projects to support the continued growth of the business. We also intend to restructure our balance sheet.” Reorganisation Dairy Crest has recently announced a major reorganisation, including board and FOOD & DRINK BUSINESS EUROPE, APRIL 2013

Being a broad dairy business has been a major strength for Dairy Crest in the current economic climate.

other senior management changes. The sale of its stake in Yoplait Dairy Crest in 2009, the creation of a unified Dairies business and the disposal of its French Spreads subsidiary, St Hubert, last year have provided the opportunity for Dairy Crest to simplify the business further. Since 1 April 2013, the start of its financial year, Dairy Crest has been consolidating its organisation into a single structure focused on consumer driven growth with an integrated supply chain. This is consistent with its long-term strategy to build added value sales and drive efficiencies. The new organization is intended to facilitate best practice, eliminate duplication and maintain Dairy Crest's strong focus on profit delivery. Annual cost savings of at least £5 million are anticipated. After the reorganisation, Dairy Crest will continue to report its results for Cheese, Spreads and Dairies separately. Board Changes After nearly ten years as finance director, Alastair Murray, is leaving to pursue other business interests. He will be succeeded by Tom Atherton who has been Dairy Crest's director of financial control for the past four years and has worked for Dairy Crest for seven years. Martyn Wilks, executive managing


STORAGE

LOGISTICS

Warehouse Management Solutions From Indigo Software ndigo Software has had a business relaIyears. tionship with Dairy Crest for over ten Throughout this period Indigo has successfully installed their pallet building software (part of the company’s WMS suite) in to six of Dairy Crest’s UK production facilities. Managing the movement of goods in and out of a warehouse, Indigo WMS is an automated warehouse management system offering real time solutions. Operated using hand-held radio frequency terminals and allowing data capture to take place at the point of contact, this ensures information is guaranteed to be as accurate and up to date as possible. Indigo’s WMS and pallet building software enabled Dairy Crest to manage the flow of stock from the company’s main production sites into their National Distribution Centre (NDC) in Nuneaton. Following the implementation of Indigo’s WMS software, Dairy Crest have been able to successfully manage the smooth inter-site transfer of goods between warehouse locations whilst retaining the integrity of essential data such as SSCC labels, lot numbers, expiry and rotation dates. In short, Indigo’s WMS software is used throughout the movement of the goods process in a ‘cradle to grave’ scenario from inbound ingredients into one of Dairy

The sale of St Hubert has significantly strengthened Dairy Crest's financial position.

director, will remain on the board and will lead the demand side of the reorganised business with particular responsibility for driving growth. From 23 May 2013, the three executive directors on the board of Dairy Crest Group will be Mark Allen, Martyn Wilks and Tom Atherton.

Crest’s many production sites to the outbound finished products at the NDC. Indigo’s WMS shares functionality that links SSCC pallet data effectively across a number of ERP’s and software platforms including Oracle OPM. Using existing database files in the host ERP (Infor System21) pallet data is written allowing a full track and trace facility which is critical in the food and beverage industry at the moment. Refreshing Senior Management The reorganisation will result in other changes to the senior management team. Toby Brinsmead, managing director, Dairies, will leave the business in May 2013. Mike Barrington, who steps up to be group supply chain director from the Dairies business, will head the unified supply chain and will be responsible for providing an integrated, efficient service to customers. Mike Barrington joined Dairy Crest in 2011 having previously held senior supply chain roles with Kraft Foods and Cadbury Schweppes. Mark Allen comments: “The reorganisation is right for Dairy Crest. It reflects our focus on consumers and customers as we continue the progress we have made in simplifying the business and becoming more efficient. It will reduce our annual overhead FOOD & DRINK BUSINESS EUROPE, APRIL 2013

By deploying Indigo’s WMS, Dairy Crest has enabled its warehouse operators to complete their processes using simple uncomplicated instructions thus removing any associated back office updates. This also ensures Dairy Crest’s management team have the most up to the minute information available on stock levels and availability. Dave King, Systems Analyst at Dairy Crest, comments: “Indigo WMS has been an essential part of Dairy Crest’s £75 million pound investment programme. The software is seamlessly integrated into our current systems and has dramatically improved our warehouse management system delivering higher than expected efficiency rates. Indigo WMS demonstrates superb functionality and we look forward to continuing our good relationship with Indigo for further investment in the future.” Indigo WMS can provide a highly developed completely integrated solution that has embedded voice technologies, multi-phase instructions, inbound planning, SSCC capability and business intelligence as part of its core competencies. Customers can use the latest barcode and wireless technologies, removing the manual processes associated with inventory and warehousing operations. J costs by at least £5 million. It has also provided an opportunity to refresh the senior management team. It allows the next generation of talented managers in the business to develop and attack the opportunities we have in front of us with renewed vigour.” J

Management has set a medium term target of 3% return on sales from the underperforming Dairies division.

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I SLIP RESISTANT FLOORING, MATTING & FOOTWEAR

No Slip Ups With John Lord Specialist Flooring pecially formulated Uragard HTAS ureS thane resin flooring from John Lord was the number one choice for a leading UK meat processing manufacturer when it came to choosing a slip resistant floor system for its new 800 sq m extension. Uragard HTAS provides superior all-round performance with built-in chemical resistance, exceptional wear, impact and abrasion resistance, and thermal shock resistance. The John Lord team installed 800 sq m of the specialist resin flooring over a two

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week period incorporating two meat churning pits. Metal dairy grids were encapsulated within the Uragard resin to form the base of the pits; this ensured the floor under the new four tonne churning vessels and boiling kettles could withstand the harsh conditions created by such a processing operation. John Lord Specialist flooring utilise all their expertise and reputation in the food industry to offer slip resistant polyurethane resin systems, formulated and manufactured in the UK and installed by their very own skilled workforce, to meet the health and safety demands of a modern food industry. Slips, trips and falls are potential hazards faced by many food manufacturing companies. The presence of water, grease and food debris on the floor of mincing and dicing rooms, cutting rooms, abattoirs and food processing areas is unavoidable; John

FOOD & DRINK BUSINESS EUROPE, APRIL 2013

Lord slip resistant flooring can help minimise the health and safety risk. The ‘Total Responsibility Package’ from John Lord is a combined 10 year product and installation guarantee that means total peace of mind for you. To discuss your specific resin floor project contact the technical sales team today on 0161 764 4617 or enquiries@john-lord.co.uk. J


I SLIP RESISTANT FLOORING, MATTING & FOOTWEAR

Providing Protection For the Pickers ynagrip matting has been installed for the safety of workers at V Alan Bartlett and Sons, an English family-owned farm in Chatteris, which specialises in the large scale supply of carrots and parsnips. The matting, manufactured in the UK by Plastic Extruders, has been laid along the production lines where pickers inspect the vegetables as well as beside the cutting and packing machinery. Vynagrip was chosen as the existing chequer plate floor was not only uncomfortable for the workers who spend long hours standing but also slippery when wet. In this situation, Vynagrip was the ideal solution as its cushioning properties give added underfoot comfort while its deeplyetched surface makes it highly slip resistant (to standard DIN 51130 - R11). Its open grid construction allows for liquid spills and production waste to fall through, further reducing the risk of slips and falls, the most common cause of major injuries in the workplace, according to the HSE. Vynagrip matting is extremely hard wearing and can be easily rolled up to facilitate cleaning. Its PVC construction makes it resistant to oil, acid and chemicals, whilst being easy to cut and shape to fit around obstacles. J

Steplite X Blue – The Blue PU Boot For the Food Industry xtensive lab and practical tests have shown that the color blue E works perfectly in a sterile environment - it can be easily disinfected and cleaned. In the food processing sector, safe boots are in the first place slip resistant boots. The Steplite X model is SRC approved, thus complying with the European Standard mechanical slip resistance test for footwear. The Steplite X model is suitable for use across all sectors of the food and drink industry including fish and meat processing, cold stores, slaughterhouses, dairy, breweries, drink centres, and fruit and vegetable auctions. The Steplite X has great resistance to oil, fats and manure. For further information contact Bekina, Berchemstraat 124-126, 9690 Kluisbergen, Belgium. Tel +32 (0)55 39 00 20, Fax +32 (0)55 38 86 19. J FOOD & DRINK BUSINESS EUROPE, APRIL 2013

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I EXHIBITION

UK's Largest Processing and Packaging Exhibition Uncovers Secret to Improving Competitiveness - Consistency and Quality his year's Total Processing & Packaging T exhibition - 4-6 June 2013, NEC Birmingham - takes place against a tough backdrop for the industry. Manufacturing output fell by 3 per cent in the year to March 2013, according to the Office for National Statistics. On top of that, the manufacturing industry is suffering a degree of collateral damage from the horsemeat scandal. The industry could be forgiven for looking glum. Luckily, there are some chinks of light amongst the darkness: some firms are finding ways to turn the crises into opportunities. Speaking about the challenges facing manufacturers during this time, Michelle Newman, Marketing Manager for Kliklok International Ltd, Stand H10, comments: “In light of the recent controversy over horsemeat, an increasing number of supermarkets are pledging to source their ingredients from reputable suppliers in the UK. It already seems that the average consumer is now favouring fish and chicken over red meat consumption. For the UK food producer, this may well lead to an unexpected upturn in overall production, which means that higher speed, labour- saving automatic packaging could be the next step.”

Graham Earl, Exhibition Manager at the Total Processing & Packaging Exhibition, adds: "It sounds counter-intuitive, but tough times can be positive for manufacturers, as they act as a catalyst for innovation. We think that this is where a show like Total comes into its own - it is a place to meet peers from across the industry, share the latest ideas and thinking, and find ways to chart a course through the tough terrain."

Challenging Perceptions Over 320 exhibitors will be on hand to demonstrate just how processing and packaging professionals can improve efficiency, accuracy and consistency while focusing on innovation. Comprising three dedicated hubs including Pakex, PPMA and Interphex, attendees are invited to discover the latest innovations in packaging design at the Pakex Hub, machinery to enhance productivity at the PPMA show and new manufacturing solutions designed specifically for the pharmaceutical industry in the Interphex hub. From design, automation and control, packaging machinery to materials and containers, no matter what industry or product you're in charge of, there is no better place to discover the latest solutions and technologies available to enhance your business and transform your production line. Learn From Industry Insiders While advice on the latest pressing industry topics can be found on a number of exhibitor stands, free-to-attend seminars will be available throughout the 3-day event featuring experts Tyrrells, M&S, Dairy Crest, B&Q, Kerry Foods, GSK and Siemens who will put the industry's pressing issues under the spotlight, share the latest advice and reveal groundbreaking industry innovations. Reflecting the three show hubs, visitors can attend seminars in the Manufacturing Forum, sponsored by Linx Printing Technologies, the Interphex Theatre, sponsored by Bürkert Fluid Control Systems and Pakex Innovation Hub, sponsored by Markem Imaje. Each hub offers a unique seminar programme packed with an exciting line up of topics. Looking to the Future Recognising the best and brightest up-andcoming talent in the industry will also be a key focus, with the return of the Ones to Watch competition and the launch of the new Packaging Design Challenge. Ones to Watch is a search for the indusFOOD & DRINK BUSINESS EUROPE, APRIL 2013

try's brightest young processing and packaging professional, judged on entrepreneurial spirit and a commitment to the industry. Sponsored by Festo, the successful candidate and 'one to watch' will win more than £9,500 of in-house training from Festo's Training & Consulting portfolio. If you know a colleague that fits the bill, visit www.totalexhibition.com/otw. Got a Packaging Idea? Looking For Investment? New to the Total Processing and Packaging Exhibition 2013, the Packaging Design Challenge will offer one lucky packaging professional the chance at a real investment in their packaging innovations. Candidates are invited to submit their packaging concepts for a chance to secure a real financial investment live at the show. If you have a concept or packaging idea you'd like to see on the shop shelves, visit www.totalexhibition.com/packdesignchallenge for more information. With so much variety on offer, if you want to hear about the latest news and trends in the processing, packaging and pharmaceutical industries, you’ll start with the Total Processing and Packaging Exhibition 2013. For more information and to register, visit http://www.totalexhibition.co.uk. For more information on the Total Processing and Packaging Exhibition 2013, please visit www.totalexhibition.com or join the conversation on Twitter (@TotalExhibition) or the Total Exhibition 2013 LinkedIn group. J 27


The Total Processing & Packaging Exhibition 4 – 6 June 2013 NEC Birmingham

See Us on Stand No: M20


I LEAN MANUFACTURING

Is Lean Manufacturing a Smart Option or an Essential Survival Strategy? By Roy Green, Managing Director of Harford Control ean Manufacturing technoloL gies will doubtless be high on the menu of food manufacturers

compliance but also; 5s, elements of Six Sigma, constraints theory, materials management, minimising of wastage, labour utilisation and more. The Harford fully integrated factory floor MIS combines these, whilst eliminating factory floor paperwork and providing instant traceability. The combination of automated production line set-up and data collection, with off-line control and analysis, through touch screen HMIs and modern computer tablets; improves operational discipline, eliminates errors and generates prioritised, instantly distributed information to drive performance improvement. One large UK dairy to have already seen sustained improvements through the installation of this integrated system, have eliminated coding and labelling errors, improved quality consistency, saved more than £400,000 per year in reduced overfill (0.3%) and reduced their annual contract labour bill by nearly £2 million, through efficiency improvements. For further information contact Roy Green, Managing Director, Harford Control Ltd - +44 (0) 01225 764461, www.harfordcontrol.com, sales@harfordcontrol.com. J

visiting the Total 2013 Exhibition where we hope to meet many old friends and new clients alike. Sadly some food manufacturers, who were around in 2012, won’t be visiting in 2013 as they are no longer in business. If we cut through all the rhetoric and accountancy speak in favour of simplicity, there can only be two reasons why companies go bust: either their costs are too high or their income too low, or both. Given that most large and many smaller food and drinks manufacturers rely heavily upon Short Interval Control: Factory Floor. supermarket business for their survival, their opportunity to increase prices idea, it’s an essential survival strategy for is extremely limited, even though they many and provides their best opportunity to themselves have had to accept increases in increase market share, whilst reducing unit raw material costs, labour, energy usage and production and supply chain costs. Some software/systems houses go on transportation costs. As if this was not challenging enough, about Automated Coding and Labelling year on year demands for greater variety Compliance as if it’s some kind of panacea have meant smaller order quantities per guaranteed to bring total compliance to a product, shorter batch runs and conse- food manufacturers packing operations, perquently more frequent product changeovers haps overlooking the fact that it’s only one or two of the many compliance and quality for the already beleaguered manufacturer. issues already covered by robust risk assessments within good manufacturing practice. Increased Complexity Drives Up Costs Other software/systems If no other changes are made, the management of such increased complexity will houses push OEE as increase the risks of non-compliance and though it is the holy grail of efficiency improvereduce efficiency. Some supermarkets are demanding the ment when, in reality it installation of automated coding and simply provides another labelling systems, whilst others impose combined set of metrics, swingeing penalties for failure, driving up useful within lean manuthe costs of supply either way. We have also facturing initiatives. heard that some supermarkets, when approached by the manufacturer for a price Holistic Approach to increase, have demanded evidence of effi- Performance ciency improvement before entering into Improvement serious price discussions. We have found that There seems little doubt that the only way what’s really needed for for manufacturers to ensure their own future sustained and continuous viability is by combining the implementation improvement is a holistic of right first time, every time, methodologies approach including, not with continuous efficiency improvement. only OEE and automated Lean manufacturing is no longer just a smart coding and labelling Action Priority: Top Losses. FOOD & DRINK BUSINESS EUROPE, APRIL 2013

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Developing Improvement Leaders The DAK Academy provides a series of 2 and 3 day workshops to develop Continuous improvement leaders at all levels. Each workshop provides a mix of theory, case study material and practical activities to accelerate learning. Course materials also include detailed briefing notes, action planning and practical advice to help participants to engage colleagues and direct reports with new working practices back at the workplace. Go to www.dakacademy.com to book on a course today! Or call 01491 845504 to discuss an in house training programme.

Best Practice TPM (The route to zero breakdowns and beyond)

Lean Team Leader. (Front Line Team CI Leadership) Lean Maintenance Strategy (Audit and improvement planning) Early Equipment Management (Equipment, design and procurement)

Delivering the Lean Enterprise (Director Level Workshop) Fundamentals of Maintenance Management (Foundation Learning)

Fundamentals of Facilities Management and Outsourcing

For more information and a copy of our 2013 Prospectus please email info@dakconsulting.com go to www.dakacademy.com or call +44 (0)1491 845504


I LEAN MANUFACTURING

Developing Industry Leading Performance manufacturing performance is Iandmproving every bit as complicated as a game of chess like a game of chess, each move can open or close off future opportunities. And just like playing chess if the route to top class chess could be achieved by knowing “what” to do, competing at the highest level would be as straight forward as a game of noughts and crosses. Knowing what to do isn’t the same as knowing how to do something well. Industry leading performers achieve significant “year on year” improvement for decades by learning the “how” as well as “what” to do. Unfortunately this is where the chess analogy breaks down because Continuous Improvement is like a chess game where all the pieces can move at the same time. In the best organisations improvement leaders are to be found at every level, shop floor, middle and senior management. They have learned that aligning and developing manufacturing improvement leaders is a powerful performance lever. Without this short lived pockets of improvement never quite deliver their

full potential. That is why all of DAK Consulting’s consultancy and training courses incorporate not just the practical insight into improvement frameworks such as Lean and

TPM but also incorporate: • How to develop a cultural change agenda (in detail): What do you want to keep what do you need to change; • How to manage the future not the past: Refine performance management processes to support look ahead rather than just feedback thinking • How to create the conditions for engagement starting with a purpose to believe in at all levels • How to have the right conversations: The questions managers ask are the biggest lever for change. Consistent themes and conversations lead to changes in outlook • How to formalise practices for capturing and sharing knowledge • How to develop leaders and their teams simultaneously: Use step wise learning reinforced by recognition. For more information and a copy of DAK Consulting’s 2013 Prospectus please email info@dakconsulting.com, go to www.dakacademy.com or call +44 (0)1491 845505. J

Food and Drink Manufacturers Choose Idhammar OEE n the current economic climate, every secIcision ond of production counts. Moreover, preoperation and reliable and accurate production information is fundamental to success in high pressure food manufacturing. The fittest companies with the lowest cost base will not only survive the recession, but they’ll be better placed in the market

when the health of the economy is restored. Using an OEE system, Manufacturing Managers can perform detailed OEE analysis to pin point exactly where losses are occurring and deploy a range of tools to support the initiatives required to resolve the issues identified. Discovering the true loss structure of a plant means that every opportunity for improvement can be capitalised - often adding up to big bottom line savings. The financial value of a 1% improvement in OEE can be staggering and recent studies have shown that investment in OEE to improve existing plant is 10 times more cost-effective than purchasing new capital equipment. Growing numbers of food and beverage manufacturers, have found that replacing a series of spreadsheets with dedicated OEE FOOD & DRINK BUSINESS EUROPE, APRIL 2013

Software and integrated Improvement Agenda means that time previously wasted on manipulating data can be better spent improving the plant. Leading food and drink manufacturers using the Idhammar OEE System to drive continuous improvement include: Premier Foods, Burton's Foods, Aunt Bessie’s, Largo Foods, Chivas Brothers, Constellation Europe and Percy Dalton’s Peanuts. The fast return on investment that manufacturers experience when they implement Idhammar OEE means that the financial justification for the dedicated system is clear. J 31


I LEAN MANUFACTURING

Unilever Leeds Selects Cimlogic to Implement OEE System est Yorkshire-based MES systems inteW grator Cimlogic has recently been selected to provide an OEE System at leading fast-moving consumer goods supplier. Following a successful OEE pilot study, Cimlogic has secured a project to work with Unilever at its Leeds facility. Unilever was looking to replace its existing losses system with an off the shelf package to measure plant and machine metrics such as downtime, OEE, TEEP, MTBF

and MTTR. Cimlogic will implement TrakSYS real time operations and performance management software to measure and improve the efficiency of Unilever’s production lines as part of the company’s commitment to continuous improvement. Matthew Thompson, Projects Engineer at Unilever, says: “We selected Cimlogic to assist us with improving the visibility and accuracy of data collection, as we believe they are perfectly positioned to provide us

with the right tools and solutions to improve the standard of performance monitoring in terms of OEE, downtime and performance losses.” Cimlogic has worked with a variety of manufacturers within food and beverage, pharmaceutical, CPG, and processing industries providing manufacturing execution systems to help improve profitability of manufacturing processes and increase overall efficiency of operations. J

Jordans & Ryvitai Improves Base Efficiency Across All Lines by 17% ordans & Ryvita retained Management Jly opened Performance Limited (MPL) at its recentCrackerbread production facility for seven weeks to aid the transition from the commissioning phase of a capital project, to delivering the objectives of the expenditure programme. The project was based around a rapid improvement of both efficiency and yield whilst at the same time developing/installing systems and coaching techniques the local management team could employ to give sustainability. The team of two MPL coaches took up distinct roles; the operational day to day ritu-

als based on the management of three teams of people to ensure maximum performance. The second a CI role to develop methodologies, techniques and systems in support of

the primary operational role; the results of the programme on a basis of efficiency and yield are shown below: • Base efficiency improved across all lines by 17% • Base yield improved across all lines by 8%. “MPL have shown their competence as leaders, trainers and coaches and the ability to work effectively at all levels of our operation. They have led us to create processes to manage our production process, as well as drive continuous improvement in ways that are understandable to all involved,” says Kevin Smithson, Supply Chain Director. J

I APPOINTMENT

Emmanuel Rurema Appointed Pentair Haffmans’ Commercial Director entair Haffmans has appointed Emmanuel P Rurema to the role of Commercial Director. Rurema is responsible for all commercial teams and

Emmanuel Rurema.

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activities within Pentair Haffmans. He reports to Olaf Muller, Pentair Haffmans’ Managing Director and Vice President Pentair Food & Beverage. Rurema joined Pentair Haffmans (formerly Norit Haffmans) in 2000 as a management trainee and moved into the Research & Development Department as Market Development Manager. He joined the Sales Department in 2001, where he was responsible for Africa, the Middle East, French speaking Europe, and Southeast Asia. Most recently, Rurema served as Pentair Haffmans’ Global Sales Manager for Quality Control Equipment and Director Business Development for Africa. He holds a graduated

engineering degree in Food Technology and Brewing from the Technical University of Munich (Weihenstephan) in Germany “I am delighted to welcome Emmanuel to his new position,” says Olaf Müller. “He brings significant expertise in his field and an excellent understanding of our business goals. Pentair Haffmans is an innovative brand and I am confident that Emmanuel will be able to build on our commercial strengths and take the company forward.” Pentair Haffmans (www.haffmans.nl) develops and supplies quality control equipment, microfiltration and CO2 systems for the brewing, soft drink, wine, bioethanol, and biogas industries. Pentair Haffmans is a market leader in state-of-theart technology and custom-made solutions for CO2 recovery and management. J

FOOD & DRINK BUSINESS EUROPE, APRIL 2013


I DISTILLING

Scotch Whisky Exports Reach Record Level Scotch whisky exports hit a record £4.3 billion in 2012, an increase of 87% in the last 10 years. ising demand for Scotch whisky from both mature and emerging markets saw the value of exports grow for the eighth consecutive year. Scotch whisky leads the way for British food and drink in overseas markets forming about 80% of Scottish food and drink exports and a quarter of UK food and drink exports. Defying continuing global economic pressures, the total value of Scotch whisky exports grew by 1% last year to reach £4.27 billion. Scotch whisky is now worth £135 a second to the UK balance of trade. Falling sales in Southern Europe were more than matched by growing exports elsewhere. The French market was distorted by excise tax increases in 2012 which led to a "stocking up" of Scotch whisky in 2011 before their introduction. With increasing consumer knowledge of Scotch whisky around the world, demand grew for single malt and premium blended Scotch whisky. Single malt exports have

R

Scotch whisky distillers have committed £2 billion in capital investment over the next three to four years.

risen over the last 10 years by 190% from £268 million to £778 million. Major Markets The USA remains the top market by value for Scotch whisky with exports breaking through the £700 million barrier for the first time to reach £758 million in 2012. Demand from the USA is expected to increase as consumer confidence grows and many people trade up to premium brands. The growth of Scotch whisky exports in Russia, a market estimated to be worth in the region of £200 million, boosted shipments to Latvia and Estonia. Direct exports to Latvia were up 48% to £79 million and to Estonia they were up 28% to £69 million. Due to route-to-market networks, much of those exports are shipped onto Russia. Asia continues to grow in importance with exports to the distribution hub of Singapore up 7% to £339 million. Exports to Taiwan increased 7% to £165 million and direct shipments to China experienced growth of 8% to £72 million. A successful outcome to on-going negotiations between the European Union and India on the Free Trade Agreement (FTA) would reduce the onerous 150% import tariff. The tariff, combined with local state taxes, places Scotch at a considerable disadvantage and penalises Scotch whisky drinkers in India. Despite such trade barriers, exports to India increased by 17% to £62 million last year. In South America, Scotch whisky is one of the UK's fastest growing exports to Mexico, increasing by 14% to £92 million in 2012. The expanding markets of Colombia and Peru have been given a further boost as a result of the FTAs ratified by the European Parliament last December. Once ratified, the Association Agreement with Central America will benefit regional exports. Leading the Way Gavin Hewitt, chief executive of the Scotch Whisky Association, says: "Scotch whisky continues to lead the way for UK food and drink exports. A combination of FOOD & DRINK BUSINESS EUROPE, APRIL 2013

Single malt exports have risen over the last 10 years by 190% from £268 million to £778 million.

successful trade negotiations, excellent marketing by producers, growing demand from mature markets, particularly the USA, and the growing middle class in emerging economies helped exports hit a record £4.3 billion last year. We deliver a remarkable £135 a second to the UK balance of trade. We are contributing massively to the government's wish for an export-led recovery.” He continues: "There is confidence in the future of the industry, illustrated by the £2 billion capital investment that Scotch whisky producers have committed over the next three to four years. New distilleries have opened and older ones brought back to use to meet rising demand." There was a decline in the volume of Scotch whisky exports of 5% to 1.19 billion 70cl bottles in 2012 from 1.26 billion the previous year, reflecting increased demand for more expensive, premium blended Scotch whisky and the growing popularity of single malts. J 33


I LABELS & LABEL APPLICATORS

Inspiron Launches New Espera Special Edition Weigh Price Labellers nspiron Labelling Solutions has launched IPrice the new Espera Special Edition Weigh Labellers incorporating increased IP Rating and enhanced software capabilities, all driven by customer demand. Inspiron supplies Manual and Fully Automatic Weigh Price Labellers with scale capacities ranging from 6kg to 80kg to UK & Ireland. Inspiron’s complete Automatic Range of

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Weigh Price Labellers can be used for Catch Weight, Fixed Weight and Average Weight applications and have EC-Type Approval. Optional Multi-Printer Systems enable quick label changeover without stopping production thereby minimising downtime and allowing multiple labels to be applied to the same pack. Software enhancements include a new on-board Label Design programme and various Software Licenses to give total flexibility for current and future marketing needs. The Software has been upgraded to meet the new Labelling Regulations coming into force in 2014, including the mandatory layout of nutritional information. The intuitive software ensures the Operator programming the label complies with the new regulations and prevents formatting errors. Additional to Weigh Price Labellers, Inspiron supplies Checkweighers, Print &

FOOD & DRINK BUSINESS EUROPE, APRIL 2013

Apply Systems, Vision Inspection and a complete range of Label Applicators. All of Inspiron’s systems are designed using state of the-art technology to ensure maximum up-time, consistently high performance and reduced running cost. For further information visit www.inspirongb.co.uk. J


I LABELS & LABEL APPLICATORS

Individual Wine Labels wine makers and vineyard Iofndependent owners often find themselves in need shorter-run, full-colour wine labels either for seasonal wine products or because they run small vineyards with only a few hundred bottles a year. Further to that more and more wine makers offer the service of personalized wine bottles, meaning that companies or private people can either attend a grape harvest as part of an event and later receive a bottle with a label that shows their name and the harvest date. Just think of a special wedding wine that shows the bride and groom and their wedding date or a so-called “anniversary wine” when a company celebrates its 25 years of successful business. What a fantastic gift to partners and customers when the label is designed in the colours of the company and contains the company logo as well. There are so many applications for short production runs, which still need to be cost-effective. In all of these cases, the printed quality and appearance of these labels are extremely important. Providing a professional appearance on wine bottles can easily make the difference between suc-

cess and failure of private wine bottle labelling. A printer that enables manufacturers to print individual full-colour wine labels is the LX900e Color Label Printer by Primera Technology. The LX900e is Primera’s fastest inkjet colour label printer and produces labels at speeds of up to 4.5” per second. Separate ink cartridges for cyan, magenta, yellow and black keep operating costs low since only one colour at a time needs to be replaced. The semipermanent print head utilises all-new technology to produce razor-sharp text, brilliant graphics and photo-realistic

printing. With the included label design software everyone can design labels that feature holiday themes and include all necessary information such as nutrition facts, ingredients, barcode etc. Product personalisation is also possible. As the software is intuitive and user-friendly, winemakers can easily create their own label. At the London International Wine Fair Primera Technology is showing to all interested visitors and exhibitors how easy it is to design and produce gorgeous and individual wine labels. The company is located at stand F2. J

Sacmi’s Innovative Formsleeve+ Machine he new modular Formsleeve+ labelling T machine is the latest ‘creation’ by Sacmi Labelling. According to Sacmi, the Formsleeve+ machine is a true revolution in the world of labelling, capable of guaranteeing a reduction in the costs of plastic material by up to 20%, increasing productivity, reaching 20,000 labels per roll along with the labelling speed reaching up to 50,000 BPH. The modular labelling machine allows sleeves to be produced and applied from MDO (machine direction orientation) rolls of film. During the process, the sleeve is sealed with a laser source controlled by a high speed scanner. A tunnel placed at the labelling machine outlet completes the heat-shrink process. Supreme quality combined with remarkable savings are guar-

anteed - among other things - by integration between label production and the labelling process while flexibility with regards to the various types of materials handled and production requirements is

FOOD & DRINK BUSINESS EUROPE, APRIL 2013

made possible by the Roll Fed technology, without - due to the use of the laser - producing any toxic gas during the process capable of contaminating the product or work environment. Already world market leader in the ceramic machinery industry, Sacmi has significantly contributed – with deep product and process innovations – to the development of avant-garde solutions for the beverage industry, establishing itself as the only company in the world capable of offering not only competitive ‘stand alone’ solutions but also and above all integrated lines, from raw materials to bottles, from filling to labelling up to quality control. J 35


I PREMIUM PACKAGING

PPS Moves into Russian Market With Bacardi sholt-based Professional Packaging Services (PPS) has extended its packaging work for E Bacardi into Russia, having worked with the global brand across Europe for the last six years. Liaising with Bacardi Europe’s central hub in Geneva, as well as its UK operation, PPS has successfully designed packaging for a range of Bacardi brands including Bombay Sapphire, Southern Comfort, Martini and Grey Goose. From the successes achieved for the European brands, PPS was approached by the Moscow office of Bacardi and asked to tender for the design and supply of luxury presentation packaging for the fast emerging domestic Russian market. PPS won the tender and has been contracted to supply folding gift boxes for Bacardi Oakheart and Bacardi Superior, as well as luxury rigid boxes for Bacardi 8, Baron Otard, Aberfeldy and Dewars. Despite demanding delivery deadlines, PPS delivered all the packaging on time and on budget, using its European partners to manufacture the folding cartons and its Asian partners to produce the rigid ones. Olesya Belkina, head of purchasing at Bacardi Russia, says: “We were particularly impressed with the design and technical expertise of the PPS team, which interpreted the brief perfectly. They have not just considered the all-important shelf appeal but also at the practicality of the pack in-store.” J

Simon Shemwood, constructional design studio manager at PPS.

Ooh! National Flexible Precision Design Brings Sharp Does It Again! Details to New Jameson Bottles ristol entrepreneurs Ian and Ruth Yard spotted a gap rdagh Group has completed a re-design of the B in the market for a high-quality premium chocolate A famous Jameson triple distilled Irish whiskey and decided to set up their own production to manufacbottle, the world's leading Irish whiskey. Working ture a range of bars. Aimed at satisfying a hungry market of discerning connoisseurs, Ooh! Chocolata bars are produced in 10 different flavours in 50g and 100g bar sizes. In the development of the products they needed input from packaging suppliers that could guide them through the project and deliver a unique look for the bars to help them differentiate from the competition and stand out on the shelf. On recommendation they worked with Bradford-based film packaging specialists National Flexible, who developed a bespoke laminate film for the flow-wrap application. The bars are flow-wrapped in a high-quality printed film, combining the aesthetics of a textured bespoke paper outer with the functional benefits of a metallised inner layer. J

closely with Design Bridge, London, the design was extended across the range which includes 1.75Litre, Litre, 75cl, 70cl, 50cl, 375ml, 350ml, 200ml bottles and 200ml flask sizes. Although the new bottle has been revamped with many new features to sharpen the appearance and graphics, the basic parameters of size and shape remain unaltered, so no change parts are required on the filling line. These features required very precise and skilful handling by Ardagh’s product design team. The neck “smile” feature has been refined for greater visibility. Ardagh had to design this feature with great precision so that the molten forms would easily release as the moulds opened on the forming machine. Ardagh carried out multiple trials to ensure the correct definition of the recess at the bottom of the front label panel that echoes the shape of the label. Embossing was added below the shaped recess. The “Barrelmen” detail is very fine, and presented a challenge to reproduce within such a small space. The area of emboss had to be subtly tweaked to ensure it would not contact between bottles. In addition, a detailed JJ&S embossed logo was required on the base of the bottle, but a concern was that this would limit any base inspection scanning. Ardagh therefore refined the base emboss to allow some inspection scanning and also incorporate elements of branding. J

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I PREMIUM PACKAGING

B1 Off – Chesapeake Installs World’s Longest B1 Speedmaster hesapeake’s Branded Packaging division C will extend its range of creative print finishes available to the premium spirits, fine confectionery and personal care markets it serves with the purchase of the longest ever B1 printing press produced by Heidelberg. The Speedmaster XL 106 perfector, which has been installed at Chesapeake East Kilbride, has a staggering 17 print units – as well as an in-line cold foiling option. Tim Whitfield, Vice-President of Chesapeake Branded Packaging, says: “East Kilbride supplies some of the world’s most prestigious brands and many of the packs it produces demand an ultra-high quality finish and outstanding shelf appeal. This significant investment will bring a number of processes inline providing greater quality control. We will be able to provide multiple colour applications, foiling and an even greater range of matt, gloss and pearlescent finishes, including metallics, spot and solid applications.” The press is equipped with coating units both before and after printing and perfect-

ing that will allow Chesapeake East Kilbride to provide customers with a range of finishes & effects inside as well as outside the box. It will provide customers with a greater choice of substrate options, without compromising a pack’s aesthetic appeal. The press is part of a major company-wide investment programme. Chesapeake Branded Packaging’s carton operations in the UK, Germany and Poland have all benefited from significant press investments in the last two years. The investment in East Kilbride follows the UK’s first Heidelberg VLF packaging press at its sister plant in Newcastle. That site runs the Speedmaster XL145 which has seven printing and two coating units, interdeck drying and extended delivery and also a high specification XL 105. Jim Todd, sales director of Heidelberg UK, says: “This latest B1 press is a huge step forward in technology. This is a press

that will satisfy both current and future brand-owner requirements. This press has really advanced technical features such as Autoplate XL plate-changing and Logistics fully automated materials handling. These help to maximise efficiency and service and to seamlessly integrate into any facility. The installation at Chesapeake certainly stands out being described internally as a ‘flying submarine’!” J

Coley Porter Bell Creates Packaging For Luxurious Müller Yogurt oley Porter Bell has designed the packC aging for a new luxury version of the best selling Muller Corner range. CPB has

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designed four new variants of the new product branded ‘de Luxe Corner’. They are Marc de Champagne, Crème Praline, Coconut Dream and After Dinner Mint. Rich colour coding and sumptuous top of pack photography underline the luxurious nature of the ingredients. The work is part of a broader design overhaul of the Müller range intended to differentiate Müller products from each other with a more explicit architecture while at the same time giving individual products greater appetite appeal. CPB has also redesigned two existing Müller lines making one more appetising and the other more sensuous. FOOD & DRINK BUSINESS EUROPE, APRIL 2013

Müllerlight, the second biggest pillar in the Müller range, has been given a more sassy personality using high quality photography of fruit, partly to aid identification and partly to communicate the brand personality: bright, optimistic and vital CPB has also redesigned the packaging for Amore, Müller’s most indulgent sub brand. It has been reworked with a darker more sensuous colour palette. Suggestive copy on the pack hints at more sensual flavours with variant names like ‘You, me, now Mango’ Stephen Bell, creative director of Coley Porter Bell, says: “The previous design strategy was based on ‘brand blocking’. These new designs are intended to let each sub brand breath more with their own identities. Deluxe is more luxurious, Müller Light is fresh and energetic. Amore is more indulgent.” J


I PREMIUM PACKAGING

Kilbeggan Relaunches With New Identity and Packaging Design eam Global owned Irish whiskey brand Kilbeggan, has been B relaunched with a refreshed brand identity and new packaging designed by International brand design agency Bulletproof. Appointed to the project in June 2012, Bulletproof were briefed to create an iconic pack design that clearly communicates Kilbeggan’s premium status, its superior taste and and its Irish heritage, coming from ‘the world’s oldest Irish distillery’. Bulletproof were also tasked with creating a brand marque for the Kilbeggan Distilling Company, that would feature on pack and could also be used across the complete brand portfolio. Nick Rees, global creative director, comments: “Projects like this only come along once in a blue moon. A 256 year-old distillery set in the heart of Ireland, oozing with history, passion and most of all experts! A full immersion into the distillery and its beautiful product was a must. We arrived at the distillery on a grey and drizzly June morning and it quickly became apparent just how much of a local landmark the distillery was and just how important Kilbeggan Irish Whiskey was; not only to the people that produced it but also those who lived in the surrounding area. Everyone we met as part of our immersion educated us on the ‘romance’ of Irish whis-key. Our job was to take all of the amazing heritage, pride, passion & expertise to a discerning global audience.” Nick Rees continues: “A defining moment in our journey was being shown the beautiful copper pot stills that had as much character and history as their surroundings. We brought the rich visual language of these physical elements into our label through styling, colour and subtle print finishes; the end result being a bottle that stays loyal to its small town roots whilst reflecting a superior quality and finesse that demands the attention of a global audience.” Mo Doyle, account director, adds: “The Kilbeggan journey has been pretty amazing from start to finish. It’s rare to work with a client and brand with such honesty, commitment and belief in their heritage. Those qualities have meant as an agency we can feel confident in what we have created.” J FOOD & DRINK BUSINESS EUROPE, APRIL 2013

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Secretary of State Visits Redpack Packaging Machinery edpack were chosen by Vince Cable R Secretary of State for Business, Innovation and Skills as the venue for the launch of the ‘Growing Business Fund’, a £3 million scheme designed to kick start growth. Redpack who are seeing a continued demand for their flow wrapping machines both in the UK and overseas and have a full order book and more orders in the pipeline are eyeing up the fund as a potential driver for its investment plans. Business Secretary Vince Cable championed the firm as a “Superb Company” during his visit to Norwich for its ability to flourish during the recession and to

improve upon its overseas foothold. Dr Cable said: “Redpack clearly is a superb local company. They have got more than 40 local employees here. They are a successful manufacturer, exporting all over the world, for example, in Brazil, Mexico and Malaysia. They have got a full order book and they

Vince Cable, Secretary of State, with Redpack Chairman Mike Briston, David Barham, Export Sales Manager, and James Lawrence, Technician.

Vince Cable with part of the Redpack Management Team.

have got through the recession. The problem they do have is that they want skilled people, which is why we have to invest more in apprenticeships, and if they are really going to expand they are going to need

more funding support, so this is why funds like the Growing Business Fund, will be useful.” For further information contact sales@redpack.co.uk. J

National Flexible Gives A Hoot! ational Flexible have worked with the N Wise Owl Snack Company to provide film for their new range of bagged snacks – Hoots. In need of a high quality finish to give the brand the biggest possible impact, Wise Owl partnered with the Yorkshirebased film packaging specialists in order to fulfil a quick turnaround for the launch of the product. National Flexible’s technical team came up with a bespoke multi-layer laminate film structure for the bags. The artwork was reproduced using the latest high-speed, high-quality flexo printing processes to give the brand stand-out shelf appeal. “We were able to help the customer bring the product to market more quickly by making use of our Zero-Zero-One 40

approach,” says National Flexibles’ Sales & Marketing Director Mark Thompson. “We hold bulk quantities of base film in stock for printing, slitting and lamination. In that way we can reduce lead times to our

FOOD & DRINK BUSINESS EUROPE, APRIL 2013

customers to only a matter of days – this gives us a level of response which is essential when servicing the needs of major retailers and FMCG brands.” National Flexible are the UK’s largest distributor of polypropylene, laminates and special films. Their custom factory is purpose built to be compliant with the latest BRC standards for food-grade packaging and they have become wellknown as the preferred supplier of packaging films for the food, bakery, snack, confectionery and contract packing industries For any further information please contact National Flexible on Tel +44 (0)1274 685566, E-mail sales@nationalflexible.net or visit www.nationalflexible.net. J


I FILLING & SEALING

Filling Machine Solutions From Riggs Autopack For Start-up Food Producers illing machine manufacturer Riggs F Autopack has secured a recent order from Little Turban, an artisan food manufacturer based in South-West London that produce contemporary Indian cooking sauces. Little Turban is the creation of Harj Dhillon and he produces a wide variety of Indian cooking sauces in small batches and uses only fresh, choice, locally sourced

ingredients, free from artificial flavourings, colours and additives. This combination of carefully sourced ingredients, small scale manufacturing and attention to detail, has given his sauces a unique, exotic and authentic taste. Historically, Harj produced to order by hand using measuring jugs to fill plastic pouches and glass jars, which was time consuming. As orders increased, he recognised that to keep pace with demand, spend less time in production and more time marketing his products, he had to move away from manual filling to a semi-automatic form of depositing. This was to be his first step into semi-automatic production and it was paramount that when sourcing a new filling machine he had confidence in an industry respected filling machine manufacturer. He requires high quality standards in the finished goods, therefore required a damage free and highly accurate form of depositing hot sauces, some containing particulates, into both pouches and jars. Riggs Autopack build high quality filling machines for the food production industry. Harj con-

tacted Riggs Autopack to help enhance his company's production and during the first meeting they were able to advise on a suitable filling machine solution. Following a successful on-site machine trial, Harj placed an order with Riggs Autopack for a Model 1000 Option 1 semi-automatic filling machine with an incorporated pouch forming unit to open the pouches using clean filtered air prior to filling. It’s been easily integrated into his production area and is fulfilling all manufacturing demands. Harj is delighted with the filling machine and the vast improvement it has made to his production process. He comments: “My Riggs machine is as important as the product itself, without it we’d never be able to meet demand, safely package our product or develop new products. The assistance offered by Riggs’ sales team is second to none and very much part of the package. I'm looking forward to upgrading soon and know I can rely on the gang to help. I have to admit, I can’t imagine how I hand filled all those pouches and jars using jugs – never again!” For further information contact Riggs Autopack on Tel +44 (0)1282 440040, Email info@autopack.co.uk or visit www.autopack.co.uk. J

High Performance Technology For Superior Sealing ackaging adhesive products used within the chilled and frozen ready meals sector require high quality P and reliability to maintain packaging integrity under demanding conditions. Optimise H9I produced by KMS Adhesives; the UK’s innovative company at the forefront of adhesives technology, is a specially formulated Hotmelt designed for carton sealing, tray erection and end of line packaging. The product has excellent processing properties with outstanding thermal stability, undergoing no changes in the original adhesive or processing proper-

ties even when left in the glue tanks for long periods. Optimise H91 offers low consumption, and high yield and a consistent viscosity and jetting performance, it is odour, smoke and taint free and will work in any Hotmelt system in the temperature range of 150 C to 180 C. Optimise H91 is a high performance, cost effective and well proven product. Find out more at www.kmsadhesives.co.uk or call 01953 882 899 to learn how KMS Adhesives products can enhance your business and save you money. J

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I FILLING & SEALING

KM Packaging Launches Easy-fill Ovenable Pouch arket leading food packaging specialist M KM Packaging Services has launched a new range of ovenable films under its Superguard range, called ‘Superguard Oven’. These films are designed to be used on Thermoforming machines (base web and top web seals), enabling food manufacturers to easily seal meat, fish and sauce based products into a pouch suitable for conventional ovens or microwaves. The Superguard Oven range includes base web ovenable films for shallow thermoforming, and top web films that are available in high oxygen barrier, metallised or transparent and supplied with or without anti fog. The Superguard oven pouch can be credited with speeding up preparation and cooking times, reducing cooking odours and also retaining moisture in the products as they cook. Where meats and fish are packed with sauces the Superguard oven pouch will also effectively allow the meat and fish to marinate while packed and prior to cooking. Charles Smithson, KM Packaging Services managing director, explains: “Customers who use premade ovenable pouches often have great difficulty in placing food quickly and neatly into them, and

rely on very labour-intensive processes. With Superguard Oven films the process is much easier: the base film is formed leaving an aperture for the food, allowing the

ingredients to be placed quickly, cleanly and precisely into it.” He adds: “Based on our previous innovations in strong ovenable films, we knew that we had the capability to really challenge the industry with a completely new product which, far from competing with our existing range of lidding films, would underpin the development of even greater consumer choice in the sophisticated convenience market.”

Superguard Oven is a cost-effective alternative to premade ovenable trays which are usually manufactured from CPET or Aluminium. With no tray, the total pack weight is considerably lighter which offers excellent environmental benefits. Merchandising of the pouch is also afforded more flexibility than traditional trays with options to stack upright, or hang from a header card or half-sleeve. These features ultimately benefit the consumer too, who can simply slide the pouch straight from sleeve to oven tray for mess-free cuisine. Calling on its extensive technical expertise in lidding solutions for trays, KM Packaging developed Superguard Oven in response to the growing demand for ‘home cooked’ style ready meals which combine quality ingredients with convenience and minimal preparation. The pouch has undergone exhaustive testing to ensure its performance will meet the demands of customers across the world. KM Packaging revolutionised the ready meals industry with its lidding films for aluminium foil trays and has since continued to invest in new technologies and flexible packaging solutions. For more information contact +44 (0) 1832 274944, email contact@kmpack.co.uk or visit www.kmpack.co.uk. J

I PALLETISING

Safe and Stable Pallet Loading and Transit required. It is more environmentally friendly to manufacture than stretch wrap and is therefore an eco-friendly way to stabilize all palleted loads. The product can be used with board, plastic, metal and both PP and PE sacks, it remains flexible at low temperatures and is simple and easy to apply. The use of Fall Stop H911 from KMS Adhesives ensures the arrival of all palleted goods in prime condition in a safe and stable load. Find out more at www.kmsadhesives.co.uk or call 01953 882 899 to learn how KMS Adhesives products can enhance your business and save you money. J

all Stop H911 is a unique anti-slip F Hotmelt from KMS Adhesives; the UK’s innovative company at the forefront of adhesives technology. Fall Stop H911 is designed to secure packaging firmly in place when assembled on a pallet and transported. The palleted goods are secured from slippage up to tilt of 45 degrees. There is no surface damage to the packaging when loaded or separated, the release is clean so the product and its packaging stays in pristine condition. The pallet load is secure horizontally and vertically and the use of Fall Stop H911 reduces the amount of stretch wrap 42

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I MARKET FOCUS

Chinese Replaces Fish and Chips as UK’s Favourite Takeaway espite the economic gloom, the UK is D still a nation with an appetite for a takeaway – with the average person spending at least £110 on breakfast, lunch and dinner out of the house every month, according to the latest research from Voucher Codes.co.uk. London steals the top spot as the nation’s takeaway capital, with the average Londoner chowing down on as many as 13 takeaways and six meals out each month at an average cost of £221.63 – more than double the national spend. Nearby Chelmsford residents emerge as amongst the thriftiest in the country however, UK’s Top 10 Takeaway Favourites 1 2 3 4 5 6 7 8 9 10

Chinese Indian Fish and chips Pizza Southern Fried Chicken Kebab Thai Burger Sushi Italian

spending just £43.19 on meals they haven’t prepared themselves. Men are the biggest fast food fiends, with the average male splurging on 151 takeaway and restaurant meals every year; 25 more than women. And while women are four times as likely to order dishes like sushi, men prefer to opt for the unhealthier classics – with fish and chips, curry and Chinese the top choices. Despite being the first choice for men, fish and chips has slipped from the takeaway top spot overall - overtaken by Chinese and Indian food in the list of the nation’s favourite takeaways. 25-34 year olds are the biggest consumers of takeaways with 49 per cent of young professionals claiming they rely on takeaways because they don’t have the time or inclination to cook at home. The habit costs them a staggering £2,626.92 each year – double the amount spent by people aged

45 and over. Duncan Jennings, co-founder of VoucherCodes.co.uk, says: “Takeaway meals are now part of everyday life for busy consumers and eating on the fly no longer needs to be an unhealthy or expensive option. Britain has always been a nation of food lovers, and with nearly every type of cuisine available on the go throughout Britain’s city centres, it no surprise to see consumers forking out so much on food each year. J

£9.9 Billion UK Soft Drinks Market Continues to Show Resilience ith sales of almost £10 bilW lion, the UK soft drinks market continued to show resilience during 2012 to register value growth in the grocery, convenience and impulse channel and the pubs and clubs channel, despite the tough economic environment, another poor summer and consumers’ tight control on their spending. According to the 2013 Britvic Soft Drinks Report, value sales for the grocery, convenience and impulse market grew by 2.8% to reach £7.21 billion in 2012, with volume sales down 0.8% to 6.97 billion litres. The pubs and clubs channel increased value sales by 1.5% to £2.73 billion, with volume sales down 3% to 509 million litres. The report points out that although UK shoppers continued to

be cautious, the grocery, convenience and impulse channel, in which soft drinks are heavily discounted, benefited as consumers opted to make stay-athome occasions more special, with affordable brand indulgences winning out over ownlabel brands. A feature of 2012 was the increased focus on the impact that soft drink consumption has on the nation’s health. Although soft drinks contribute just 2% of the total calories in a typical diet, the industry was quick to respond. PepsiCo and CCE were amongst the first soft drinks companies to sign up to the government’s Calorie Reduction Pledge. More recently, a number of other leading UK companies, including Britvic, AG Barr and GlaxoSmithKline, have pledged their support. J

FOOD & DRINK BUSINESS EUROPE, APRIL 2013

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QUALITY

& HYGIENE

Dealing With Contaminants ood information is essential when deciding how to respond G to a contamination incident, be it a foreign body or chemical contaminant. Hence the support of a multi-disciplinary expert laboratory can be invaluable when an incident is first reported, in order to quickly understand the nature of the contaminant, its potential source and likely risks. Foreign Bodies and Chemicals

Microscopy is often the first line of attack in investigating foreign body incidents. Analysing the surface, size and shape of a foreign body by simple light microscopy can answer lots of questions in routine identifications. However, there are other more powerful techniques that can also reveal elemental composition, and give a very good indication of the source and nature of a visible contaminant. The origin of invisible chemical contaminants can be harder to identify, not least because during transport, storage and processing, ingredients, packaging and products can all come into contact with potential contaminants such as agricultural chemicals, cleaning solutions, factory oils, environmental pollutants and so on. Moreover, chemical contaminants can cause problems such as taints and off-flavours at very low levels, so highly sophisticated equipment is needed to extract, isolate and identify these contaminants. That said, certain 'routine' issues can be decided using simpler techniques. A rapid, colour-change spot test can detect gross contamination with a bleach or detergent. A simple pH screen can be enough to confirm that a product has been contaminated with caustic soda or acid. Conclusion

What is true in all cases is that good science, using validated methods can provide quick answers on the best way to deal with a contamination incident, eg limited or full recall. Any laboratory aiming to investigate these incidents must be supremely well equipped, in both instrumentation and expertise, with the skills to take the investigation often well beyond the factory that produces the food concerned. For further information contact Karen Masters, RSSL, Reading Science Centre, Pepper Lane, Reading, Berks, RG6 6LA. Tel +44 (0)118 986 8541, Fax +44 (0)118 986 8932, Email : enquiries@rssl.com. J

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QUALITY

& HYGIENE

I FOOD QUALITY & SAFETY

Horsemeat Scandal Dents Trust in Food Industry hich? Wants UK government action to W address a decline of consumer trust in the UK food industry. Consumer trust in the food industry has dropped by a quarter (24%) since the horsemeat scandal broke, a Which? survey has revealed. 30% of shoppers are now buying less processed meat and a quarter (24%) are buying fewer ready meals with meat in, or choosing vegetarian options. Two thirds of people (68%) don’t think the government has been giving enough attention to enforcing labelling laws, with half of consumers (47%) not confident that ingredient information is accurate. Confidence in food safety has also taken a hit. Before the scandal broke, nine in 10 felt confident when buying products in the supermarket. This has dropped to seven in 10. Which? wants the government to take five urgent steps:

1 More surveillance that’s better coordinated: With food fraud surveillance work suffering from cuts in the UK, we need more intelligence-led and speculative surveillance where there’s a potential for cheaper ingredients to be substituted. The government must set out how the Department for Environment, Food and Rural Affairs (Defra) will improve coordination with the Food Standards Agency (FSA) and local authorities. 2 Tougher enforcement: There needs to be clear disincentives for illegal practices, with tough penalties for those prosecuted. The government should immediately scrap its proposals to decriminalise failure to comply with food labelling legislation (apart from allergen labelling). 3 Tighter legislation: The food industry needs to improve traceability and regularly test its products. The government should extend the FSA’s powers to require testing when necessary, publish testing results, and allow FSA officers access to premises for the purpose of investigations. 4 Improved food labelling: Consumers should know what’s in their food and where it’s from. The government should push for the EU-wide country-of-origin labelling to cover processed meat used in meat products, such as ready meals. It should also scrap its plans to drop national rules requiring clear ingredient labels for

Which? executive director Richard Lloyd.

meat sold loose, such as in a delicatessen. 5 Return food labelling policy to the FSA: The FSA deals with enforcement, but in England responsibility for all food standards and labelling issues has moved to Defra. The scandal shows this split causes unnecessary confusion and complication. The government should now move responsibility for labelling and standards responsibilities back to the FSA. Which? executive director Richard Lloyd says: “The horsemeat scandal exposed the need for urgent changes to the way food fraud is detected and standards are enforced. These serious failings must be put right if consumers are to feel fully confident in the food they are buying.” He adds: “Ministers must ensure that everyone involved, including their own departments, the FSA, the food industry and local authorities, are crystal clear about their responsibility to protect consumers and are properly equipped to do so.” J

Queen’s University Belfast Launches New £33 Million Global ‘Food-Fortress’ ueen’s University has launched its Q new Institute for Global Food Security (IGFS) which will improve global food safety through the establishment of an international ‘food-fortress’ in Belfast. An investment of over £33 million from Queen’s will see the Institute play a key role in national and global efforts to provide the world’s growing population with a sustainable, safe and secure supply of high quality food. Staff in the new Institute will work alongside the food sector locally, and worldwide, to improve the integrity of the food chain and deliver best value and quality to the consumer. The opening of the IGFS will also enable Queen’s to

enhance the role it already plays in ensuring the local agri-food industry continues to be competitive in a growing global market. The IGFS incorporates a new £2.5 million laboratory. Housing state-of-the-art equipment provided by Waters

FOOD & DRINK BUSINESS EUROPE, APRIL 2013

Corporation, the multinational technology company, it will be capable of undertaking unique forms of testing in order to provide early warning of food contamination and adulteration. Professor Chris Elliott, Director of the new Institute, comments: “We want to build a ‘food-fortress’, ensuring everything we import is of the highest quality and that what we sell locally and internationally is also 100 per cent safe, nutritious and authentic. This new Institute will ensure that we can continue to recruit the best students into our food programmes, creating the food-leaders of the future who have been trained in one of the world’s best equipped research laboratories.” J 45


Cargill at Asia Choco Congress 2013 argill has achieved the Standard C National of Indonesia (SNI), for its Gerkens® cocoa powders produced in the Netherlands, which will enable it to export its high quality powders to the country. “We are extremely pleased to achieve the SNI, which enables us to export our global-

ly renowned Gerkens® cocoa powders to Indonesia,” comments Job Leuning, Business Development Director for Cargill Cocoa & Chocolate. “Indonesia is an important country in a vital region. As cocoa demand continues to grow we are building up our local market presence in Asia and strengthening our cocoa business on the ground. We have already set up a new R&D application center in the region and extended our Gerkens® sales office in order to help our customers meet this growing demand.” The announcement was made on the eve of Cargill’s participation in the Asia Choco Congress 2013, which brought together cocoa growers, processors, chocolate manufacturers, and other stakeholders to explore global supply chain challenges in the fastest growing confectionery region in the world. Taco Terheijden, Manager Sustainable Cocoa for Cargill Cocoa & Chocolate, comments: “It is absolutely vital we all work together to achieve a sustainable cocoa industry to ensure future supplies and a higher yield for cocoa farmers. For our part, we have already begun by extending our Cargill Cocoa Promise to Indonesia. This is a commitment to making a difference in three key areas: training

cocoa farmers; supporting cocoa farming communities; and investing in the longterm sustainable production of cocoa.” Under the Cargill Cocoa Promise, Farmer Field Schools have been established to offer training to an initial 1,000 Indonesian farmers to help them develop skills which will improve productivity, bean quality and, as a result, the income of farmers and their families. “This is just the beginning of the expansion of our cocoa operations in Indonesia, which has always been an important country for us. Cargill has been present in Indonesia for over 35 years and employs 11,000 people, not just in the cocoa sector but also in grain and oilseeds, palm oil, animal nutrition, and starches and sweeteners,” concludes Job Leuning. J

Sensient Flavors Extends Functional Flavor Portfolio For Improved Sweetness ensient Flavors has added eight S bespoke functional flavors to its APSS™ (All Purpose Sweet

aftertastes. All APSS™ flavors can be declared as “natural flavoring” and add no

Solutions) range. The new Black Grape, Cola, Red, Summer Fruits, Orange, Tropical, Lemon Lime and Green flavorings compensate for sensory drawbacks in products with reduced sugar content as well as those which are completely free from sugar. In reduced sugar formulations, the flavorings compensate for loss of body, mouthfeel and sweetness. When used alongside alternative sweetening solutions, such as high intensity sweeteners or Stevia (Reb A), they also mask undesirable 46

FOOD & DRINK BUSINESS EUROPE, APRIL 2013

carbohydrate calories to the end product. The new flavorings extend the existing portfolio of APSS™ flavors, which has been developed to improve the sweetness profile of calorie-reduced products. With its latest variations, the company has adapted its APSS™ technology for specific flavoring types which are particularly popular in beverages, but are also used in other applications, such as bakery, confectionery and dairy products. The bespoke flavorings enable food and drink manufacturers to shorten development time when modifying sweetening systems or reducing the sugar content of products. J


6,000 More Ghanaian Cocoa Farmers Will Gain Access to CocoaLink inancial and technical support from F Cargill will provide 6,000 more Ghanaian cocoa farmers and community members with access to CocoaLink, a programme which uses mobile phone voice and SMS text messages to connect cocoa farmers with information about good farming practices, labour safety, and crop marketing. CocoaLink was established in 2011 by the Ghana Cocoa Board, the World Cocoa Foundation (WCF), and the Hershey Company. CocoaLink has proven to be an effective tool to spread knowledge and share good practices to help farmers increase yields and market their products better so they can increase their incomes. It has reached 16,289 farmers in the past two years and its goal is to reach 100,000 farmers by the end of 2013. Over the coming months, Cargill will implement the rollout of CocoaLink to 6,000 farmers who participate in Cargill’s Farmer Field Schools in Ghana. CocoaLink will reinforce what farmers have learned during training, increasing its effectiveness, bringing even greater benefits to farmers. WCF trainers will conduct training classes on the technology, with the Ghana Cocoa Board providing the information that is shared with farmers. CocoaLink is supported by Cargill in Ghana as part of its dedication to sustainable cocoa through the Cargill Cocoa

Promise – the company’s commitment to make a difference to the lives of farmers and their communities, while meeting the growing global demand for sustainable cocoa beans. The power of CocoaLink can be demonstrated in the story of a smallholder in the village of Nknonya, Sefwi Wiawso, Ghana. Peter Tawiah, a cocoa farmer, considered cocoa farming as a tradition passed on to him by his father. In 2011, CocoaLink selected Peter to be community facilitator (lead farmer) in his community because of his good reputation among community members and his demonstrated motivation and engagement. Prior to participation in Cocoalink, Peter planted his cocoa trees in a haphazard manner, crowding plants so close together that there was insufficient aeration between the trees, leading to the spread of disease on his farm. Through CocoaLink, he received advice about pruning and began applying those techniques to his work. Now, Peter lines and pegs his farm so his trees have adequate space between them for healthy growth, and he prunes them regularly. This has helped him increase the size of his cocoa pods and prevent disease from spreading. Peter also brings other farmers from his community to his farm to demonstrate how pruning and lining and pegging should be done, further extending the impact of CocoaLink. J

Halal Ingredients on the Menu at Pecan Deluxe eading European inclusions specialists L Pecan Deluxe Candy (Europe) is set to break into new markets in the UK and

growing trend for quick service restaurants and food manufacturers to cater for Halal customers and we are responding to that

abroad after its Yorkshire site was given the seal of approval to produce Halal accredited products. Halal certified products are sourced, manufactured, imported and distributed in accordance with Islamic law to meet the needs of Muslim consumers. After several of its confectionery inclusions passed the strict Halal Food Authority (HFA) audit at its factory, Pecan Deluxe revealed its plans to take advantage of the new opportunities presented by this accreditation. Pecan Deluxe Technical Manager, Matthew Dobson, explains: “There is a FOOD & DRINK BUSINESS EUROPE, APRIL 2013

trend by ensuring the availability of certified inclusions. The HFA audit was technically challenging as each product had to be individually ratified by the authority as fit for consumption by Muslims. He adds: “Pecan Deluxe is committed to offering better choice and more novel ingredients to meet demand from across the world for our 250-plus inclusions. Now, Halal food providers can tap into our expertise in getting new concepts to market quickly. We’re confident that being able to offer Halal products will broaden our customer base and ultimately our market share across all sectors of the food industry.” For further information visit www.pecandeluxe.com. J 47


industry and business April issue 2013 Vol 1 issue 1