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September 2011

Gerber Amig – Managing the squeeze in fruit juice

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C o n t e n t s

- 2 M ERGERS & A CQUISITIONS

- 39 S OFT D RINKS

Coverage of British and international deals.

Profitability and sustainability at Coca-Cola Hellenic.

- 10 C OVER S TORY

- 41 B EVERAGES

P AGE 10

Constellation Wines Australia and Europe becomes Accolade Wines.

Andrew Biles, ceo, Gerber Emig.

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Gerber Emig – Managing the squeeze in fruit juice.

Indra Nooyi, ceo, PepsiCo.

R EGULARS

- 14 -

Information Technology. . . . . . . . . . 9 & 48

C ONFECTIONERY Confectionery sector leads launch activity.

Processing & Manufacturing . . . . 19-21, 31 Bottling & Packaging . . . . . 22-25, 36 & 40

- 14 R ETAIL M ARKET UK shoppers expect higher food prices and prepared to use different shop formats.

PAGE 32

Simon Coveney, Irish Minister for Agriculture & Foods.

Logistics & Distribution . . . . . . . . . . . . . 26 PAGE 4

Christian Rose, ceo G&J Greenall.

- 17 M ARKET F OCUS

The age of the freight train

Control & Automation . . . . . . . . . . . . . . 43 Materials & Ingredients . . . . . . . . . 42 & 47

PAGE 41

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

Troy Christensen, ceo, Accolade Wines.

Frozen topping chilled in pizza. Western European Retail Pizza Markets.

Managing Director: Colin Murphy Editor: Mike Rohan Sales Director: Ronan McGlade

- 27 S USTAINABILITY New rail freight distribution centre keeps Tesco’s green ambitions on track.

Advertising: Susan Doyle. Senior Sales Executive: Paul Lees

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Kate Allum, ceo, First Milk.

Production Manager: Susan Doyle

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Strong organic growth at Codd Mushrooms.

- 32 F OCUS ON I RELAND

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Irish food industry plans to reap growing harvests.

Stan McCarthy, ceo, Kerry Group.

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PepsiCo Becomes Russia’s Largest Food and Beverage Business

R&R Ice Cream Expands With €27 Million French Acquisition

PepsiCo has completed its acquisition of Wimm-Bill-Dann Foods, Russia’s leading branded food and beverages company. PepsiCo is now the largest foodand-beverage business in Russia, and a clear leader in the country’s fast-growing dairy category. The acquisition also builds the US-based drinks and snacks group’s presence in key markets in Eastern Europe and Central Asia. The integration of WimmBill-Dann, which is expected to yield pre-tax annual synergies of approximately $100m by 2014, will raise PepsiCo’s annual global revenues from nutritious and functional foods from approximately $10b to nearly $13b. This moves the US-based beverages and snacks group closer to its strategic goal of building a $30b nutrition business by 2020. Wimm-Bill-Dann was founded just 18 years ago with a handful of employees. Today the group employs over 16,000 people and operates 38 production facilities.

UK-based R&R Ice Cream has expanded its French business with the Eur27m acquisition of Pilpa, the ice cream division of Maison Boncolac. Employing 154 people and operating from a factory in Carcassonne, Pilpa supplies own label ice cream to the French supermarkets but is also active in the branded sector through products marketed under the Disney, Oasis and Pilpa brands. The acquisition will add 23m litres of ice cream to R&R Ice Cream’s current annual production of 450m litres. The disposal will allow Maison Boncolac to focus on its frozen appetisers and patisserie businesses. Created in 2006 by Oaktree Capital Management following the merging of Richmond Ice Cream with Roncadin, R&R Ice Cream is Europe’s biggest private-label ice cream manufacturer. R&R Ice Cream purchased Rolland, France’s third largest ice cream manufacturer, last year

Indra Nooyi, chairman and chief executive of PepsiCo.

Diageo Completes Acquisition of Mey Icki Having received the necessary regulatory clearances, Diageo has completed its £1.3b acquisition of Mey Icki, the leading spirits company in Turkey. In the financial year ended 31 2

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Paul Walsh, chief executive of Diageo.

December 2010 Mey Icki had net sales of £300m and EBIT of £120 million. It is the clear market leader in Raki, the biggest spirits category in Turkey, and has a leading position in vodka. In addition the company has an extensive nationwide sales and distribution network. The Turkish Competition Authority clearance is conditional upon the subsequent disposal of the Mey Içki brands Hare liqueur and Maestro gin. Diageo expects to complete these disposals within its current financial year.

SABMiller Makes Hostile Bid For Foster’s SABMiller has made a hostile move to acquire Foster’s after its initial offer was rejected by the Australian brewer’s board. SABMiller first approached Foster’s on June 20th 2011 with a confidential acquisition proposal of A$4.90 per share in cash, valuing Foster’s at A$11.2b (Eur8.1b). However, the board of Foster’s has advised shareholders to reject SABMiller’s proposed offer, which is at the same price as SABMiller’s initial offer. Foster's beer portfolio includes Australian icons such as VB, Cascade, Crown Lager, Carlton Draught and successful imports Asahi, Corona and Stella Artois. Through its Carlton United Brewers business, Foster’s is Australia’s largest brewer, controlling about half of the beer market.

SABMiller Expands in China SABMiller, through its joint venture with China Resources Enterprise, has strengthened its position within the fast growing Chinese beer market. China Resources Snow Breweries has entered into an agreement with China Kweichow Moutai Distillery Co to jointly invest in Guizhou Moutai Beer and form a joint venture called China Resources Snow Breweries

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2011

(Junyi). As part of the transaction, CR Snow will inject approximately $42m in return for a 70% equity stake in the new joint venture.

Permira Looks to Float Birds Eye Igloo Private equity group Permira is reported to be considering floating its Birds Eye Igloo frozen food business early next year. Permira acquired Bird Eye Igloo for about Eur1.7b from Unilever in 2006. It is likely that the food business would be listed on the London Stock Exchange.

Heineken Completes Acquisitions of Two Breweries in Ethiopia Heineken has completed the acquisitions of the Bedele and Harar breweries from the government of the Federal Democratic Republic of Ethiopia for $85m and $78m respectively. The transactions follow Heineken’s participation in the public auctions for the two breweries. The acquisitions reflect Heineken’s strategy of increasing itsr exposure to and growth from developing markets. With brands such as Bedele Premium, Bedele Special, Harar, Hakim Stout and Harar Sofi (malt), the two breweries have a combined market share of 18% in the Ethiopian beer market. Ethiopia is Africa’s second most populated country with 85 million people and its beer market (3 million hectolitres in 2010) grew approximately 20% per year over the past five years, compared to a GDP growth of 8%. Beer and non-alcoholic malt consumption in Ethiopia was approximately 4 litres per


M E E R R G G E E R R S S M capita in 2010, which is well below the global average of 27 litres and below beer consumption in other countries in the region, such as Tanzania (7 litres), Uganda (9 litres) and Kenya (10 litres).

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UK’s Oldest Gin Distiller Sold G&J Greenall, the UK’s oldest gin producer, has been sold for £7.5m by De Vere Group to a private equity backed management buyout team. Based in Warrington and with annual sales of £46m in 2010, G&J Greenall is celebrating its 250th anniversary this year. G&J Greenall produces over 50% of the UK’s own label gin and vodka plus branded gins and vodka. The distiller recently launched its portfolio into the US market. “Never before have we been more focussed on our branded portfolio of products alongside our third party bulk and bottling contracts,” says Christian Rose, chief executive of G&J

current management and new investors to continue our recent growth and capitalise on our innovations in both the on and off trade.”

Young & Co Quits Brewing

Christian Rose, chief executive of G&J Greenall.

Greenall. “The move is intended to strengthen the position of G&J Greenall as one of the UK’s leading distillers of quality spirits and indeed, the future of the entire business overall. We will be working closely with the

London-based Young & Co has exited brewing after selling its 40% shareholding in Wells & Young’s Brewing Company to Charles Wells, the English regional brewer and pub operator, for £15.1m. Young & Co will now focus on its portfolio of managed and tenanted pubs in London and the South of England. Wells & Young’s was formed in 2006 following the merger of Young’s brewing operations with those of Charles Wells, with Charles Wells holding a majority 60% stake.

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Young will use the consideration from the transaction to invest in the further development of its Young’s and Geronimo pub estates. In the 53 weeks to April 4th 2011, Wells & Young’s contributed £2.6m to Young’s total adjusted profit before tax. However, the ongoing profitability of the brewing business will be impacted by the loss of the Corona licence.

ADM to Acquire Polish Oils Company Archer Daniels Midland Company is taking another important step in the expansion of its oilseed processing, food manufacturing and biodiesel capabilities by purchasing a majority share of Elstar Oils. A Warsaw-listed company, Elstar is a leading Polish manufacturer of quality refined vegetable oils and fats for the food industry, and biodiesel for the energy market. The purchase is subject to approval by relevant antitrust authorities.

Unilever Sells Ragu and Chicken Tonight Brands to Symington's Unilever has sold its Ragu and Chicken Tonight sauce brands in the UK and Ireland to Symington's, the Leeds-based convenience food company. Although the price of the deal was undisclosed, it is thought to have fallen short of the £30m to £40m originally

anticipated by Unilever when it offered the business for sale last year following a strategic review.

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

The two brands have combined annual sales of about £20m in the UK and Ireland. Unilever is retaining the two brands in markets other than the UK and Ireland but will continue to manufacture products for these regions at its factory at Oss in the Netherlands for at least three years. Symington’s has no wet sauces manufacturing capacity. The acquisition will increase Symington’s annual turnover to about £150m and strengthen its brands portfolio, which also includes Ainsley Harriott and Golden Wonder The Nation's Noodle. Symington’s has more than doubled sales since management bought into the business alongside Bridgepoint Development Capital in September 2007.

Sara Lee to Shed European Dough Businesses Sara Lee has decided to divest its Spanish bakery and French refrigerated dough businesses. A sales process is underway and numerous bids have been received. The Australian frozen desserts business is also under strategic review. The moves are in line with Sara Lee’s strategy, announced in January 2011, to divide the group into two pure play publicly-traded companies. One company will be focused around the current International Coffee and Tea business, while the other company will be focused on the North American Retail Meats and North American Foodservice businesses.

Valeo Foods to Acquire Jacob Fruitfield Food Group Valeo Foods has reached agreement to acquire rival Irish foods business Jacob Fruitfield Food Group for an undisclosed consideration. The deal is subject to regulatory approval. Valeo was formed in 2010 and comprises a growing portfolio of leading Irish consumer brands which it supplies to Irish and international retail customers. The Valeo portfoFOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2011

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lio currently includes the Batchelors, Odlums, Shamrock, Sqeez, Roma, Erin, Amigo, Lustre and Picnic brands. Jacob Fruitfield brings together Fruitfield Foods, which was acquired from Nestle in 2002, and Irish Biscuits, which was purchased from Groupe Danone in 2004. The company’s brands comprise a number of Ireland’s best known consumer food products including Jacob’s biscuits, Chef sauces, Fruitfield jams and marmalades and Silvermints and Scots Clan sweets and confectionery. The combined business of Valeo and Jacob Fruitfield will have an annual turnover of approximately Eur300 million and a combined workforce of nearly 500. Jacob Fruitfield generated an operating profit of Eur9.8 million in its most recent financial year to 31st December 2010. Valeo is controlled by CapVest, the London based European mid-market private equity firm.

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milk, dairy ingredients and cheese sectors. For Fonterra the joint venture is the first step in realising its goal of local European sourcing to meet the nutrition ingredient demand of Euro-pean customers. For First Milk the deal adds value to the whey stream of the cheese making process, which will enhance the returns it can pass back to its farmer members. Kate Allum, chief executive of First Milk, comments: “While this is our first step into added value whey markets, it builds on the work we have done recently with a range of partners across the supply chain to deliver pioneering solutions. Obviously the UK market remains the bedrock of our business. However, it is also important that we explore opportunities, such as this one with Fonterra, that have the potential to deliver enhanced returns for our dairy farmers.”

Fonterra and First Milk Form Whey Joint Venture New Zealand-based Fonterra and UK-based First Milk have established a strategic joint venture to produce premium whey proteins for Fonterra’s growing food ingredients business. The two dairy farmer co-operatives will combine their intellectual property and industry expertise to add value to the whey streams at First Milk’s Lake District creamery in Cumbria, England. First Milk supplies and markets 15% of the milk produced in the UK. As an integrated company, it is a major player in the liquid 6

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2011

Kate Allum, chief executive of First Milk.

Granarolo Strengthens Cheese Business Italian dairy company Granarolo has strengthened its cheese business with the acquisition of Lat Bri for an undisclosed sum. With an annual turnover of about Eur150m, Lat Bri is the third biggest fresh cheese maker in Italy. The acquisition will double the scale of Granarolo’s cheese sales and increase its export business.


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“The acquisition of Lat Bri is of strong strategic importance,” points out Gianpiero Calzolari, chairman of Granarolo. “It lays the foundation for further development in the dairy sector in Italy and makes Granarolo the second national operator in this sector. Abroad, we will develop synergies by taking products made in Italy to European consumers, especially in northern Europe, where Lat Bri has long had a widespread market presence.” Granarolo currently operates five production facilities spread across Italy, employs 2,000 people and achieved a turnover of Eur884 million last year.

Kerry Group to Expand its Sweet Ingredients and Flavours Business Kerry, the global ingredients, flavours and consumer foods group, is acquiring SuCrest to significantly expanding its sweet ingredients and flavours business in the EMEA (Europe, Middle East and Africa) region. SuCrest, with production and product development facilities located in Hochheim, Germany and Vitebsk, Belarus and a sales

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office in Moscow, is a leading provider of sweet ingredients to the bakery, ice-cream, confectionery, cereal and snack sectors in European markets. The business being acquired reported annual revenue of Eur50 million in the financial year ended 31st December 2010. The transaction which is subject to regulatory approval is expected to be completed by yearend.

Frutarom Acquires Aromco For $25 Million Frutarom Industries has strengthened its position within the international flavours and specialty fine ingredients market with the acquisition of UKbased Aromco for $25m (£15m) in cash. The deal marks Frutarom’s fourth acquisition in the flavours sector since

the beginning of 2011. Aromco develops, manufactures and markets flavours for the beverage, dairy, confectionary, bakery and savoury markets, and achieved sales of £7.7m in 2010.

Bakkavor Group to Sell French Business

Stan McCarthy, chief executive of Kerry Group.

Bakkavor Group, the UK convenience food manufacturer, is selling Bakkavor Traiteur, a non-core, fish spreads business based in France, to Alfesca, a leading European producer and supplier of convenience, fine seafood and premium products to retailers and food-service providers. The sale is for an undisclosed consideration. FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2011

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COVER STORY

Gerber Emig – Managing the Squeeze in Fruit Juice With an annual turnover of €750 million and operating production sites in four countries, Gerber Emig is one of the largest manufacturers of fruit juice and juice drinks in both the UK and Europe.

G

erber Emig employs 1,600 people ongoing strategy to be a core private label and has five production plants – one partner for our retail customers as well as a in the UK, two in Germany, one in co-pack partner with the major brands. It France and another in Poland. The gives us critical mass in both private label privately-owned company’s UK production and co-packing. In today’s environment, it is and distribution centre at Bridgwater in helpful to be involved in both areas of the Somerset is the largest of its kind in Europe. industry,” points out Andrew Biles, chief The UK business accounts for roughly 40% executive of Gerber Emig and also President of group sales by value. of the European Fruit Juice Association. Gerber Emig is totally focused on manuThe secret of Gerber Emig’s success is to facturing fruit juices and juice drinks. In identify what its private label and co-packing addition to its own product range, which customers require and then invest to create includes the Sunpride and Southern Delight the right products, in the right volumes to brands, the company also produces private meet that demand. Gerber Emig invests label for retail customers and undertakes conheavily to maintain its competitive and techtract packing for other major drinks groups nological edge in its processing and distribusuch as Innocent Drinks, Ocean Spray, tion activities. Libby’s, Del Monte and Welch’s. “Over a period of six years we have investAs a specialist in this sector, Gerber Emig ed a little in excess of £150 million in the is well known for the high quality and low Andrew Biles, chief executive of Gerber Emig and Bridgwater site, where we produce over 600 cost of its products and has been highly President of the European Fruit Juice Association. million litres on an annual basis. Basically, instrumental in developing the fruit juice our focus was to put in an extremely effiand juice drinks market in the UK and abroad. cient, flexible and agile manufacturing base here in the UK.” He Raw materials are sourced globally, such as orange juice from elaborates: “The investment has allowed us to achieve efficiency in Brazil, red and white our marketplace and to improve significantly our carbon footprint. grape juice from We have halved, for example, the water that we consume to make France, and apple one litre of product, we have significantly reduced waste at all levels juice from several in the production process and have reduced our utility costs.” countries. Gerber Gerber Emig has also invested heavily in its other plants. Emig has been buy- “Concurrent with building the new plant in the UK, over the past ing fruit juice from seven years we have invested over Eur100 million in six aseptic around the world for over twenty years and has, during this time built up an intimate and detailed knowledge of where to source the best raw materials.

Gerber Emig’s UK production and distribution centre at Bridgwater in Somerset is the largest of its kind in Europe.

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Secret of Success Gerber Emig’s broad business base of private label, its own branded products and contract packing are helping it cope with the recession better than many of its rivals. “It is our

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2011


PET lines on the Continent. We are a well invested company and are certainly amongst the leaders in terms of being technologically advanced,” he says.

Raw materials are sourced globally, such as orange juice from Brazil, red and white grape juice from France, and apple juice from several countries.

UK Market In 2010, the UK fruit juice and smoothies sector registered 3.1% volume growth to reach 1,180 million litres and retail sales value increased by 5.4% to £1.76 billion, according to the British Soft Drinks Association. The still and juice drinks sector grew 5.8% in volume last year to reach 1,450 million litres

and in value terms by 6.6% to £1.77 billion. Fruit juice and juice drinks are benefiting from being perceived as ‘good for you’ products by increasingly health conscious consumers. A key market trend is the growing consumer preference for chilled fruit juice and juice drinks, which are generally regarded as ‘healthier’ than ambient products. Similarly, there is also a shift within the fruit juice segment towards not from concentrate (NFC) products, which with smoothies are fuelling growth in chilled drinks. Market Outlook Andrew Biles is cautiously optimistic about the outlook for the UK fruit juice and juice drinks sector. “There is more branded activity today than there has been in the past. For example, with the launch of Innocent chilled orange juice in the carafe, we see a competitor coming up alongside Tropicana. I see more branded activity generally and branded promotions are driving the sector at the moment,” he explains. “In 2011, the biggest challenge for the industry and the retailers and the consumers has been dealing with commodity price increases, which have steadily been pushed through.” He expects market volume to remain relatively stable with value continuing to rise, due to increased retail prices, reflecting higher commodity costs, but also due to the ability of producers, through imaginative marketing and new product development, to add value. “If you take the smoothies segment for example, Innocent own that space and they have done a very good job in adding value to the whole category,” he remarks. European Market Consumption of fruit juice and nectars in the EU-27 exceeds 11 billion litres with sales of 100% fruit juice accounting for about two-thirds of total volume. Germany is by far the biggest market, generating over a quarter of EU volume sales. The next largest markets are respectively France, the UK, Spain, Poland and Italy. The top three markets account for over half of total EU consumption. According to the European Fruit Juice Association, consumption

of fruit juice and nectars in the EU-27 is expected to increase from 11.3 billion litres in 2009 to 11.8 billion litres by 2014. As president of the European Fruit Juice Association, an organisation, which represents at EU level the various national associations of fruit juice producers across Europe, Andrew Biles is well placed to provide an overview of the international market and industry. “We are one of the most successful associations in terms of selfregulation, in terms of quality, in terms of labelling standards, and in terms of influence upon the European Fruit Juice Directive. We have a major impact in defining the quality and monitoring the quality of the juices that we actually market throughout Europe and have a unified Code of Practice.” He continues: “We are proud of the standards we have imposed across Europe to deliver consumer confidence on quality going forward. The big challenge that we face in 2011 and 2012 is maintaining those quality standards at a time when commodity prices are escalating rapidly.” There are marked differences between the UK fruit juice and juice drinks market and those in Continental Europe. Whereas the UK market is now about 50% chilled, ambient is still dominant in Continental Europe with a share of roughly 95%. In France, for example, fruit juice consumption is weighted towards NFC products, which account for about half the market. Apple remains the leading variety of fruit juice in Germany, where nectars are also a key feature of the market, whereas pineapple, apricot and grape juices are popular in Spain.

Over a period of six years Gerber Emig has invested about £150 million in its Bridgwater site, which produces over 600 million litres on an annual basis.

“You cannot economically transport fruit juice effectively over long distances, so traditionally, you produce locally for your local market,” he points out. “There are still significantly different characteristics in each market throughout Europe. Those differences are likely to remain but they also afford opportunities for change.” Industry Consolidation While UK fruit juice and juice drinks production has become highly consolidated in the past decade or so, by comparison the European industry remains fragmented. Andrew Biles sees opportunities for consolidation, especially in countries such as Germany,

“The market outlook is good but I think the consumer is going to have to get used to a new level of pricing for fruit juice be it NFC or from concentrate. One litre of fruit juice is still the best value product in the marketplace for a consumer to buy.”

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2011

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the best value product in the marketplace for a consumer to buy. Even at £1.00 for a litre of orange juice, compared to £3.00 for a cappuccino, fruit juice still represents very good economic value and very good nutritional value. As consumers look to spend their money wisely, fruit juice is a product that will not be missed.” Long-term Approach Since 1985 Gerber Emig has been a part of private investment group Hanover Acceptances. The Emig part of the business was acquired by Hanover in 2001. Hanover’s other principal sectors of activity are real estate and agribusiness. France and Spain. “Consolidation does not necessarily come from companies that merge with each other but will also result from companies electing to leave the market because they no longer wish to invest in what has become relatively expensive equipment going forward.” He elaborates: “For example, there is a trend on the Continent on the ambient side to move out of cartons into PET. Certain companies will decide not to invest in relatively expensive PET lines. So I think there will be rationalisation over time in the marketplace.” Escalating Commodity Prices Fruit juice and juice drinks producers in the UK and elsewhere in Europe are facing rapidly rising commodity prices. The price of Brazilian orange juice has soared, due to the strong performance of the Brazilian economy and its currency, the real, in comparison to the weakness of the US dollar, which is the currency used for purchasing fruit juice on the international market.

“Europe may be having a tough time but other economies of the world are doing just fine. In the past, when Europe did badly there was a drop in demand for key commodities and prices fell. Today, the reality is that there is strong demand from other geographies around the world for the same commodities. So we are having to deal with an economic recession at home not being accompanied by a decrease in key core food commodity pricing,” he explains, pointing out that the price of Brazilian orange juice has tripled from $800/tonne to $2,500-2,600/tonne in the past few years, with further increases likely. Major Challenge Because UK and European fruit juice and juice drinks producers have already streamlined their operations to optimise efficiency, there is little scope for absorbing hikes in commodity costs, which will have to be passed on to customers and consumers. “The industry has been removing all redundant costs out of the supply chain. So everything has been focused on doing things more efficiently, maintaining pricing and taking cost out. The companies that won the game were those that took most cost out and became the most efficient. Europe is now living in a new reality. Commodity prices have gone up and I don’t think necessarily they will come down.” He continues: “The market outlook is good but I think the consumer is going to have to get used to a new level of pricing for fruit juice be it NFC or from concentrate. One litre of fruit juice is still 12

As a private company, Gerber Emig can take a long-term view on business development and is not constrained by having to meet the short-term targets often expected by shareholders of public companies. “Our goal basically is to mirror the present and future needs of our retail and co-pack partners. We look to grow in the marketplace and with our co-pack and retail partners in the geographies where we operate.” Andrew Biles concludes: “Many people don’t quite understand what it takes to bring fruit from the orchards or the groves through to juice on the shelf and the various stages of production and transport that are involved. It is a complex industry and our job is taking that complexity out of the day to day business for retailers and ‘A’ brands. This can only be achieved with a good team and a lot of experience. Luckily we have both.” J

Fruit juice and juice drinks are benefiting from being perceived as ‘good for you’ products by increasingly health conscious consumers.

Aerial view of the Gerber Emig site at Bridgwater.

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2011


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I CONFECTIONERY

Confectionery Sector Leads Launch Activity onfectionery is the leading food and drinks sector in terms of global launch C activity in the first half of 2011, according to Innova Market Insights. This occurred despite the industry having a rough ride in 2010, as a result of rising prices in the wake of increasing raw material costs, particularly for cocoa and sugar. Many markets saw static to falling volumes, with value rises mainly reflecting these price rises and manufacturers, in many instances, had to rely on ongoing product and promotional activity to maintain competitiveness. Chocolate continues to dominate in confectionery, both in terms of market value and of launch activity. Chocolate accounted for over two-thirds of the confectionery launches tracked by Innova Market Insights in the first half of 2011, ahead of sugar confectionery with just under 30% and chewing gum with 5%. The chewing gum sector has had some difficult years after a buoyant period in the mid-2000s, but there are now signs that it is starting to recover, with rising launch numbers and some success in terms of product activity over the past year or so, most notably with lifestyle products, particularly sugar-free, mouth-freshening gums, in convenient formats designed to appeal through groundbreaking flavors, packaging and graphics. Launches of particular interest over the past few months include Australia’s first approved fortified sugar-free gum in the

form of Wrigley’s Extra Professional Calcium; a three-layer chewing gum under the Mentos 3 name in France including a mint and licorice variant; and Kraft/Cadbury’s Trident Vitality range of enriched gums in Awaken, Vigorate and Rejuve variants in the US. Meanwhile, in the chocolate confectionery market, brand extensions continue to dominate activity, with Nestle’s Kit Kat particularly active globally with launches ranging from a candied sweet potato Kit Kat variant in Japan; a boxed Kit Kat Singles variant in Germany and a range of Kit Kat Chunky 3 variants in Australia.

Bite-size chocolates are also featuring strongly, particularly in the UK, with launches such as Cadbury Dairy Milk Chocos and Galaxy Bites. The sharing bags concept is also being heavily exploited in a number of countries, as exemplified by 2011 introductions such as Kit Kat Pop Chocs in the UK, Milka Crispy Snax, Daim Snax and Lila Stars Snax in pouches in Germany. The award for the most unusual confectionery launch over the period should go to the US, where Coco Preggers, a range of chocolate truffles with added folic acid and DHA omega 3 fatty acids, has been launched by Xan Confections, aimed specifically at pregnant women. Lu Ann Williams, research manager at Innova Market Insights, concludes: “The strong product and promotional activity seen in the confectionery sector in the first half of 2011 looks set to continue. The demand for small and relatively inexpensive snacks and ‘treats’ seems unlikely to be radically inhibited by consumer concerns over their finances, or indeed over health and obesity issues, and the confectionery industry remains well-placed to deal with ongoing competition from other snack products.” J

I RETAIL MARKET

UK Shoppers Expect Higher Food Prices and Prepared to Use Different Shop Formats ine out of ten UK shoppers expect food N prices to be more expensive in the year ahead, according to the latest research from IGD ShopperTrack. And they are planning

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to use several strategies to help them manage their budgets. 29% of shoppers intend to use more discount grocery stores in the next 12 months, and 16% say they will do more of their shopping at frozen food specialists over the same period. “The vast majority of shoppers believe that food inflation is set to increase over the next twelve months. They are not taking it lying down and instead are prepared to sacrifice some of their time by shopping around at different retail formats, from discounters to frozen food stores, to get the best deals,” says Joanne Denney-Finch, chief executive of IGD. “Although shoppers are looking for value, they

are still interested in maintaining their values and are prepared to pay for this: nearly half of shoppers say supporting local or British products is important to them when choosing what groceries to buy. But shoppers in some parts of Britain are more focused on price: those in Scotland are the most likely of any region to focus on saving on money in the year ahead.” However, shoppers are still prepared to splash out with eight out of ten saying they pay extra for premium quality groceries every now and then. Fixed price meal deals, such as dinner for two for £10, more price matching and round pound deals are some of the initiatives food companies have introduced to help shoppers keep within budget. J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2011


I MARKET FOCUS

Frozen Topping Chilled in Pizza The retail pizza markets in the UK and in Western Europe are showing resilience despite the recessionary environment. he rise in the number of singe person households has increased demand for convenience foods such as pizza. Retailers and food manufacturers have been successful during the recession in marketing pizza as an alternative meal to dining out. Pizza is also now benefiting from a ‘healthier’ image following manufacturers’ efforts to reduce salt and fat levels. Within the UK market, frozen pizza has made major strides in recent times with growth outperforming chilled pizza sales, which have been sluggish by comparison. Frozen pizza manufacturers have been able to revive sales through intensifying new product development activity and offering consumers a greater choice of bases and toppings. They have also been successful in targeting specific consumer groups such as women, children and single person households. Indeed, frozen products accounted for 54% of total UK pizza retail sales by value in 2010, up from 51% in 2005.

T

Western European Retail Pizza Markets (€m), 2010 Country Germany UK France Spain Italy Netherlands Belgium Ireland Total

Frozen 1,055 458 282 80 248 196 91 92 2,502

Chilled 41 390 302 375 44 57 89 18 1,316

Total 1,096 848 584 455 292 253 180 110 3,818

Sources: Global Food Markets (GFM) and Leatherhead Food Research

tonnes last year, the UK is the second largest pizza market in Europe, behind Germany at 250,000 tonnes (see Table). Spain at 76,000 tonnes is the third largest market. Ireland has the highest per capita consumption at 3.6 kg per person per annum, ahead of Germany (3 kg) and Belgium (2.1 kg). The market shares held by the frozen and chilled pizza segments varies enormously in Continental Europe. Frozen is dominant in Germany with a market share of 96%, and also in Italy and Ireland, where frozen pizza generates 85% of total sales in each country. However, in Spain the chilled segment

remains supreme, accounting for 82% of total retail pizza sales. Outlook According to Leatherhead Food Research, frozen pizza is likely to place ever increasing emphasis on quality and value for money to compete against its chilled equivalents. Leatherhead Food Research forecasts that the UK retail pizza market (chilled and frozen) will grow by 16.1% to reach £950 million in 2013, outpacing Germany with growth of 6.7% to Eur1.19 billion and the projected 8.9% growth to Eur610 million in France. J

Goodfella’s Overhaul to Revive Sales

A recent feature of the market has been the growth of ‘thin & crispy’ pizzas, such as Dr Oetker’s Ristorante and Goodfella’s Delicia. This sector now accounts for about 54% of the UK market with ‘deep pan’ pizza holding a 40% share. Another key market characteristic is the willingness of consumers to ‘trade up’ to higher quality products like stone baked pizzas. For example, stone baked pizzas grew by 27% in the UK chilled segment last year. Another interesting new market development is the introduction of ‘stuffed crust’ pizzas. European Market With volume consumption of 150,000

The Goodfella’s frozen pizza brand is being overhauled in a bid to reverse dwindling sales. Facing stiff competition from Dr Oetker's Chicago Town and Ristorante pizza brands and retailer own label products, sales of Goodfella’s have dropped by 17.3% during the past year. Goodfella’s has reformulated its deep pan pizza, which has been performing poorly, with an improved lighter bread base, more indulgent toppings and more detailed cooking instructions for consumers. The thin base range has already been relaunched with a thinner and crisper base. Advertising for the brand is also being revamped with a return to basics with the focus on the quality of the ingredients used. The moustachioed Italian figure which featured on Goodfella’s packing and the pizza fairy in the TV advertising have both been dropped. Produced by Green Isle Foods in Ireland, Goodfella’s is now part of Boparan Group following the latter’s £342 million acquisition of Northern Foods earlier in the year.

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2011

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I SLICING & DICING

New E TranSlicer Cutter Defines Efficient, Engineered Excellence ngineered to produce continuous preciE sion slices with extensive detail given to key elements throughout the machine, the new E TranSlicer Cutter joins the production-proven TranSlicer series in the Urschel line-up. “In 2010, we celebrated the company’s 100-year anniversary. On the heels of that, we are proud to announce the introduction of our latest TranSlicer. Building on a tradition of Urschel quality, this new machine demonstrates the company’s engineering-driven spirit which has been key to the company’s ongoing success all these years,” states Tim O’Brien, vice president of sales at Urschel. The E TranSlicer uses the same 20" wheel and delivers the same types of cuts as its predecessor, the TranSlicer 2000 Cutter. The machine also accepts the

same size infeed of 4" (102 mm) diameter firm products, more compressible products up to 6" (152 mm) diameter, and offers the same production-proven operating principle. In addition, the E TranSlicer provides a newly designed cutting wheel mount/holder assembly that simplifies cutting wheel changeovers. Hinged/sliding access panels offer full access to all key areas of the machine. To further ease washdowns, surfaces are sloped. Sanitary design ensures that all mechanical components are separated from the food zone. Electrical cables are slightly raised off of the machine frame to simplify washdowns and alleviate trapped food particulates. The E TranSlicer is available with across-the-line start or with a variable frequency drive. Other options include a prep table to assist operators and a remote operator stop button. The inte-

grated electrical box uses circuit breakers instead of fuses and incorporates a brake motor button to easily release the brake when needed. Durable stainless steel guardlocks and sensors offer indicator lights that illuminate when guardlocks are properly engaged. The machine features continuous operation for uninterrupted production. To learn more about the E TranSlicer visitwww.urschel.com. J

Weber Slicer 905 - Slices Up to Six Full-sized Logs Simultaneously he Weber Slicer 905 combines innovative T slicing technology with versatility, efficiency and ease of operation. The extremely wide cutting throat and blade speeds of up to 2000 rpm assure the industry’s highest throughputs. The improved product control system provides perfect slicing results. Delicate and odd shaped products are easily loaded and sliced. Open frame architecture is extremely userfriendly, providing easy access for operation,

maintenance and cleaning function. Weber’s innovative product control system has been upgraded to maximize hygienic operation and provide fast disassembly for cleaning. The Weber 905 has been designed and constructed to meet the world’s highest sanitation standards. The modular design allows the Weber 905 to be used in conjunction with all Weber up and down stream accessories such as stacking, party tray and MCS. J

I COOK & CHILL

Latest Technology From Lyco anufacturers of ready meals are M finding major advantages by teaming the Lyco Clean Flow with the latest in cooling technology – Easy Flow. Easy Flow cools product rapidly ensuring that it passes through the micro danger zone in a matter of seconds. This unique modular design can cool product from 95 C to as low as 5 C.

The small footprint and open design reduces capital requirements. Other benefits include: decreased hygiene/maintenance time, increases in throughput/yield, and mastery of short and long shape pastas, rice, vegetables and beans. The system is a continuous process, promoting ‘lean manufacturing’. J FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2011

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Terlet Serves Up Tasty Solution For AB World Foods olmach has supplied a new cooking sysH tem for the production of AB World Foods ethnic sauces including the leading Patak’s brand. Following a request for Holmach to examine the current cooking system and recommend improvements, a new 3,000 litre cooking vessel and a Terlotherm scraped surface heat exchanger were installed at the Leigh factory in England, allowing product produced in the vessel to be rapidly heated on transfer to the filler. The boosting of temperatures guarantees the pasteurisation process could be optimised as the initial temperature of the product was higher – leading to improved product quality especially on vegetables that are included in some of the recipes. 3,000 litre cooking vessels are just part of the Terlet range of cooking and aseptic systems. The 3 ton vessel supplied includes a high shear mixer for particulates and powders, a special dimpled jacket heating system that gives 30% energy saving efficiency over stan-

dard heating jackets and an in-line homogeniser for making the sauce bases smooth and

glossy. With easy access for tipping of ingredients, AB World Foods is pleased with the speed at which batches can be prepared, and are then transferred over to a buffer tank near the filler. Cooking times have been reduced significantly and the injector technology means a saving of 1% of steam usage on every batch. Andrew Downie, operations manager at AB World Foods, comments: “We have much experience on scraped surface heat exchangers and had used other systems until we were introduced to the Terlotherm by Holmach. The machine not only delivers superior quality product, but has proved totally reliable and has replaced a bank of four units from our previous supplier.” With temperatures being boosted up to 20 degrees C between buffer and filler, the product does not get held at ultra high temperatures for very long, hence the lack of damage to delicate ingredients. The machine has proved such a hit that AB World Foods have ordered a second machine for another line. J

Major Meat Processing Project For Fessmann essmann, the German-based international specialist for cooking F and smoking systems, is fitting out the new meat and sausage processing facility operated by Edeka in Rheinstetten. Indeed, the Edeka factory at Rheinstetten is one of Europe’s biggest and most modern meat processing operations. Equipment supplied includes two Autovent T3000 cooking systems with six trolleys, two Autovent T7000 cooking systems with

12 trolleys and six Rotatherm Carat baking chambers. Two climate development systems from Travaglini with 32 trolleys have been installed with Ratio smoke generators. Fessmann has also won major projects at Rewe in Dortmund and at Morliny, for the Polish subsidiary of an American corporation. Fessmann is projecting sales of more than Eur24 million in 2011, with 70% generated by exports. J

Riggs Autopack Food Depositors Supplied to New European Markets epositor and filling machine manufacD turer Riggs Autopack is driving forward business initiatives by expanding its sales agent team and supplying new international markets. The company has recently recruited distributors in Spain with Daveda SCP, and Eastern Europe with Slovakian company Chefworks. Collaboration with professional and established overseas distributors is helping Riggs 20

Autopack improve its position within the European market. The company also has plans in place to further expand its sales team and is currently seeking distributors in Germany, France, Italy and Scandinavia. Whilst the company is investing heavily in its

global OEM's, Riggs Autopack is also supplying depositing and filling equipment direct to an increasing number of international end users, most recently to food manufacturers in Sweden and Jordan. Riggs Autopack’s general manager Nigel Matthews comments: “Strengthening our global sales team has significantly raised our company profile, and we are delighted with the notable increase in overseas sales activity.” J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2011


I COOK & CHILL

Interfood Adds Fessmann to its Cooking Menu nterfood Technology has added the prestiIFessmann gious name of German company to the impressive list of manufacturers for which it acts as the sole distributor in the UK and Ireland. Interfood is a company specialising in food technology processing equipment and ingredients from Thame in England and Carrrick-On-Suir in Ireland – and is already well established as the single source in both countries for some of the world’s leading manufacturers in the fields of cooking, cooling, smoking, roasting, forming, pressing and pasteurisation technology. Latest Addition

Fessmann, the latest addition to its extensive dealership, produces systems for cooking, roasting, smoking and baking, for maturing, cooling and conditioning. The company holds a leading position in the international market and is known for its consistent products with low operational costs, short processing times and integrated CIP (fully automatic Cleaning-in-Place systems). It manufactures batch, semi-continuous and continuous systems as well as the RATIO smoking systems, woodchip, friction and liquid smoke systems and has its own research and development departments in order to optimise process technology procedures. Fessmann’s patented smoke system gives real control of the smoke density for individual adaptation, uniform quality of the entire batch and reproducible results. Thanks to their modular construction, many well-considered details and a choice between stand-alone or central units, the systems adapt flexibly to

suit customer’s exact requirements. The systems also offer good economies due to minimum weight-loss. The equipment is durable, constructed from quality material, energy-efficient thanks to superior insulation and can be future-proofed thanks to possible alternative heating methods (electricity, high pressure steam, gas, thermo oil or oil). Fessmann’s Autovent Cooking System

Fessmann’s Autovent cooking system uses the natural dynamics of the low-pressure steam for air circulation and converts it into air speed and heat energy. It operates without any circulation fan and has a maintenance-free operation. This makes the system very inexpensive to operate. It shortens production times by roughly 10 per cent, saves energy thanks to the omission of air circulating fans and therefore lowers costs. Excellent results can also be achieved during roasting, baking and cooking, thanks to the optimal heat transfer and extremely high process temperatures of Fessmann’s RotathermCARAT system. The entire feed trolley rotates slowly in a horizontal stream of hot air or steam, so products are uniformly processed from all sides. This means a reduction in weight-loss of more than 50 per cent compared to conventional baking systems. With shorter production times and thus lower energy costs, the RotathermCARAT® system can again deliver cost savings. Cooling and Air-conditioning

With Fessmann intensive cooling, all cooked products can be cooled to packaging temperature in a single work cycle with water, air or brine or a combination of both in up to 75 per cent less time. Thanks to this fast crossing of the critical temperature range for microbial growth, products achieve an extended shelf-life, along with less weight loss and low water consumption. Systems are available with optional saltwater circulation. Air-conditioning systems from Fessmann are sophisticated and reliable. Even during extreme weather conditions, the heating and cooling system ensures temperature and humidity levels are accurately maintained. This allows customers to

regulate weight-loss and the degree of maturity of products accurately and processes become consistent and reproducible. There are three types of systems with and without smoke generators for safe conditioning of meat and sausage products: KEW climatic and maturing systems; KNR climatic post-maturing systems; and climatic storage rooms, for long-term storage. The new Turbomat systems from Fessmann work in a particularly economical and flexible manner. An advanced panel design with triplex insulation has enabled heat loss to be reduced by more than 20 per cent. All of these Fessmann systems are now all available throughout the United Kingdom and Ireland from Interfood Technology. Joint Managing Director of Interfood, Jim Sydenham, says of the new addition: “We are delighted to be the sole distributor in the UK and Ireland for Fessmann. They are a respected, long-established German company, a market-leader producing equipment for smoking, cooking, cooling, maturing and baking for use by meat, sausage and fish processing companies. We have been looking for some time to be their nominated supplier and, having similar values of the highest quality, value-for-money and service, we look forward to building a long and successful partnership with them.” Not only does Interfood supply manufacturing, processing and production machinery to the food industry, but the company also supplies a dedicated support service. A team of experienced engineers is backed by Interfood’s own food technologists to assist customers with advice and guidance to ensure maximum productivity and profitability is derived from the equipment, whether improving existing products or developing new ones. J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2011

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National Flexible ‘Chosen By You’ ational Flexible, the film packaging speN cialists, has continued to build on its expertise with Kodak’s Flexcel NX system by introducing the innovative print technology to major retailers, ensuring that end consumers get the benefit of enhanced instore appeal from high-quality packaging artwork. Rapidly becoming the industry norm in flexographic printing, the Flexcel NX system not only allows for true 1:1 image reproduction, improved fine detail, smoother ink transfer and stronger colour density – but it also offers long-term cost savings versus conventional printing. Earlier in the year National Flexible used

the full Kodak system end-to-end in its entirety – producing groundbreaking results by achieving gravure quality print from flexo plates. The initial project was pioneered by Kodak’s development team working in partnership with the Bradfordbased film packaging experts who have built a reputation for high quality and innovation in the flexible packaging industry thanks to their approach of investing in new developments for film and printing technology. Brand owners, brand managers, FMCG manufacturers or packers wanting to give their products a competitive edge can dis-

cuss their film packaging requirements with National Flexible on 01274 685566 or email sales@nationalflexible.net J

Measom Freer Gets the Green Light he well established plastic packaging manufacturer Measom Freer has achieved the T British Standard 8555 Certified Environmental Management System. This is a standard that gives the company a framework for the systematic management of energy and keeps its commitment to reducing its carbon footprint. Having recently been independently audited Measom Freer can now show how much environmental issues are at its core. As holders of a British Standard for Quality Management Systems (EN ISO 9001), Measom Freer is aware how important it is for customers to know they are using a company with proven credentials and standards in both quality and the environment. A decision was made to undertake attainment of this standard following feedback from customers looking for companies who will comply with environmental standards and demonstrate their commitment to the environment in all day-to-day operations. The benefits to Measom Freer have been enhanced employee motivation and morale, more cost savings and efficiencies, continuation of legal compliance, continual performance data and a competitive advantage. For further information contact Sales Team on Tel +44 (0)116 2881588, Fax +44 (0)116 2813000, sales@measomfreer.co.uk or visit www.measomfreer.co.uk. J

Convenience Packaging For Fish Specialties ourmet product manufacturer Appel has started selling new G products in PermaSafe packaging, supplied by Weidenhammer Plastic Packaging (WPP), the plastics division of the Weidenhammer Packaging Group. This innovative packaging solution offers consumers added convenience and brings all the advantages of plastic containers to the market segment for preserved, non-refrigerated foods. The attractive package design also grabs attention at the point of sale. For the first time, Weidenhammer has combined In-Mould Labelling (IML) with embossed elements for the new Appel plastic container. Appel is planning to use its product innovations in modern Weidenhammer packaging to attract new customer segments. Innovative PermaSafe plastic packaging is designed for a long shelf life and is extremely airtight. Even unrefrigerated pre-cooked meals and sausage products stay fresh in PermaSafe packaging. Unlike conventional metal or glass packaging, PermaSafe offers more freedom when it comes to package design and shape. It is also more convenient for consumers. J 22

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2011


I PACKAGING DESIGN

Ultimate Packaging For GSK S Smith Packaging Lockerbie and API Laminates, worked in collaboration D with GlaxoSmithKline Consumer Healthcare on the design of their outstanding new SRP packaging for Aquafresh Ultimate, described by GSK as achieving high levels of differentiation and impact at the point of purchase. The corrugated packaging spotlights the brand image from the printed/foil blocked tube using a new 3D printing technique. The Fresnel lens is created by a combination of printing techniques, metallised substrate and a concave image engraved onto the film to produce the 3D effect. This innovative retail ready pack consists

of three components: a moulded plastic tray that locates the tube caps, the corrugated pack featuring three Fresnel lenses, and a shipping hood. The outstanding impact of the RRP combines with the advanced printing, foiling and tamper evidenting on the tubes, have replaced the use of cartons for the Ultimate range launch. Initial sales results suggest that this packaging is incredibly impactful in store. In fact, in the run up to launch, the excitement in the market, and with trade partners, meant that the demand emphatically surpassed initial expectation. It just goes to show how DS Smith Packaging is helping customers to ensure

they achieve desired impact and functionality from their tertiary packaging in store. J

Naturally Better Packaging For Seabrook Crisps eabrook makes a very popular brand of crisps and has worked closely with longS term supplier DS Smith Packaging Featherstone to develop a high quality printed retail ready pack for a brand new range called ‘Goodbye salt Hello flavour’. Eamonn O’Donnell, Featherstone’s Business Development Manager, says: “We have really pushed the boundaries of flexo post print with this pack. The message to the shopper stands out loud and clear, highlighting the reduction in salt but not flavour. We have featured a superb product shot with a background texture that depicts a traditional potato sack. We even managed to reduce the artwork from a 7 colour to a 5 colour process print.”

This has all been achieved using DS Smith Packaging’s unique R-Flute®, a new type of corrugated fluting that provides superior performance in both print and construction. The closeness and the structure of the flute tips gives a flatter, better surface for printing and enables the pack to fold very accurately. The perforated opening works reliably and gives a neat appearance on the shelf, greatly increasing point of sale impact. It just goes to show how, working with DS Smith Packaging, customers are able to use their corrugated products to boost sales results significantly and open up a range of opportunities for more efficient and sustainable packaging. J

Gold, Gold and Gold Again S Smith Packaging has won three gold D plus four silver and three bronze awards in this year’s Starpack competition.

One of the golds went to a revolutionary new pack for GlaxoSmithKline Consumer Healthcare’s Aquafresh Ultimate. This was designed, developed and executed through close collaboration between GSK’s internal project team, DS Smith Packaging Lockerbie and API Laminates. It spotlights the brand image from the printed foil blocked tube using a new 3D printing technique. Another gold winner was DS Smith Packaging Belper’s new Tiltmaster pack; the slight backwards tilt keeps products upright, maximising impact on shelf. Not only does the pack look great in store, it’s better for the shopper, and is 100% recyclable. A smart retail ready pack from DS Smith Speciality Packaging Launceston

for Laverstoke Park Farms completed the golden hat trick. Designed to display Laverstoke’s high quality organic products in Sainsbury’s and Waitrose, the new 100% recyclable packs are perfect for a company that prides itself on its commitment to sustainability. J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2011

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Relax – Linx Promises Stress-free Coding he peace of mind delivered by accurate, reliable and quality coding will T be the major theme of the Linx Printing Technologies stand at PPMA Show 2011. Under the slogan ‘Relax! It’s a Linx’, visitors to stand E31 will be able to explore Linx equipment including continuous ink jet (CIJ), case coding, laser and thermal inkjet (TIJ) technologies, all of which demonstrate Linx’s commitment to lowest cost of ownership, lowest maintenance, and maximum reliability and The brand new Linx CJ400 will be on show in the UK uptime. the first time at PPMA 2011. The brand new Linx CJ400, on show in the UK for the first time, represents the first fundamental change in Linx CJ400 is its Easi-Change Service continuous ink jet printer design in two Module, which can be changed in minutes decades, according to Linx Printing using on-screen prompts. This means that Technologies, and will be the highlight of scheduled maintenance is easily completed the stand at PPMA Show 2011. without the need for a trained technician The Linx CJ400 promises unique porta- or costly service calls – a major advantage bility, fastest set-up and the most simple for smaller customers or those in remote to use printer. A key innovation of the regions. Further self-maintenance features

include on-screen trouble shooting, which can solve the majority of operating issues without the need to consult manuals or engineers. Also on show will be the Linx 7300, designed to avoid the hidden costs of coding through low running costs; minimised production downtime, error-free coding and future-proofing. Among its features are dynamically adjusted service intervals to ensure customers only pay for vital maintenance, the FullFlush automatic printhead for cleaning system, mistake-proof refills with the new SureFill system and error-free code changes with QuickSwitch software. For case coding applications, Linx is exhibiting the Linx IJ350 large character printer. Alongside it will be the Linx IJ200 Thermal Inkjet (TIJ) cartridge printer, a cost-effective, trouble-free alternative to label printing that is particularly suited to smaller operations. J

Showcasing Ishida’s Advanced Technology he Ishida Europe stand at this year’s T PPMA Show will showcase the latest developments across the company’s extensive product portfolio. Highlights include two new checkweighers, an entry-level Xray system, Ishida’s innovative Strip Pack Applicator for enhanced in-store presentation, and multihead weighers capable of handling root vegetables and citrus fruits, fresh, sticky products and frozen foods. The DACS-G is the latest addition to Ishida’s checkweigher range. The new model is capable of exceptional speeds while maintaining high accuracy, and, at the touch of a button, can switch between two weighing ranges, allowing food manufacturers to handle more products on one machine. A Dislocating Force Limiter automatically disconnects the weigh sensor from the weigh conveyor should sudden excessive force be applied (for example during clean down), protecting the DACS-G against rough handling. Also on show will be the DACS 24

Economy checkweigher, which is water- minimising product giveaway and improvproof to IP65 specification for fast and ing production efficiencies. J easy cleaning. This entry-level model incorporates Ishida’s Anti Floor Vibration (AFV) system, Ishidamade high-sensitivity loadcells and high-speed Digital Signal Processing (DSP) for high weighing accuracy and -consistency at high speeds, as well as a key pad display for simple operation. All models in the DACS range can be easily integrated with the Ishida Data Capture System (IDCS), a user-friendly, secure software programme that can record the data of every pack weighed from up to 100 checkweighers into a single secure database. The IDCS offers an extensive range of reporting options to enable production managers to employ state-of-the-art monitoring for legislative compliance while also The new DACS-G checkweigher. identifying cost saving opportunities,

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2011


I PACKAGING INNOVATION

Gold, Gold and Gold Again For DS Smith Packaging DS Smith Packaging, the UK’s leading supplier of corrugated packaging, has won three gold plus four silver and three bronze awards in this year’s Starpack competition. The total haul of ten awards reflects the fact that, once again, DS Smith Packaging is at the forefront of packaging design in many different markets. ne of the golds went to a revolutionary new pack for GlaxoO SmithKline Consumer Healthcare’s

“Starpack provides a great

showcase for innovation Aquafresh Ultimate. This was designed, developed and executed through close and, again this year, the collaboration between GSK’s internal project team, DS Smith Packaging awards illustrate how Lockerbie and API Laminates. The corrugated packaging spotlights the brand corrugated packaging can image from the printed foil blocked tube using a new 3D printing techimprove product impact on nique. The Fresnel lens is created by a combination of printing techniques, the shelf.” metallised substrate and a concave image engraved onto the film to produce the 3D effect. different market segments. Starpack Another worthy gold winner was DS provides a great showcase for innovation Smith Packaging Belper’s new and, again this year, the awards illustrate Tiltmaster pack; the slight backwards how corrugated packaging can improve DS Smith Packaging Belper’s new Tiltmaster pack. tilt keeps products upright, maximising product impact on the shelf. More and impact on shelf. This type of pack is more companies are using new designs often multi-piece employing mixed materiA smart retail ready pack for Laverstoke to take cost and carbon out of their supply als, so the 100% recyclable corrugated Park Farms, produced at Launceston, com- chains. We enjoy working with customers to Tiltmaster offers an opportunity to cut car- pleted the golden hat trick for DS Smith produce packaging that is both sustainable bon out of the supply chain. Packaging. Designed to display Laverstoke’s and ultra-efficient.” J high quality organic products in Sainsbury’s and Waitrose, the new 100% recyclable packs are perfect for a company that prides itself on its commitment to sustainability. Many retail ready features have been built into the new tray, including an angled rest that aids filling and display when the produce is viewed at different shelf heights. Tony Foster, Sector Director of DS Smith Packaging, says: “We are particularly pleased The revolutionary new pack for GlaxoSmithKline Consumer to have won so many Healthcare’s Aquafresh Ultimate. awards across several The smart retail ready pack for Laverstoke Park Farms. FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2011

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The Age of the Freight Train hen Tesco decided to take a pre-let on W an 840,000 sq ft rail-connected warehouse at the second phase of the Daventry International Rail Freight Terminal (DIRFT II), the deal was not only important for Tesco, it also marked a step change for the wider logistics industry. The new DIRFT II facility allows Tesco to consolidate its operations and develop its rail freight policy and it is a direct endorsement of Prologis’ rail freight strategy. At the same time, the development of DIRFT II is setting new standards for sustainable distribution in the UK and it is helping to influence Network Rail’s approach to the future of rail freight. Environmentally Sustainable Scheme The building, which Prologis completed in May 2011, comprises 785,000 sq ft of warehouse space, a 25,000 sq ft mezzanine and 30,000 sq ft of offices. It has 102 dock

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pods with 40 external scissor lifts and a 778 space multi-deck car park, linked to the main warehouse building by a 95m bridge. The facility has two 60m yards and an intermodal area that includes three rail lines. Infrastructure works included the construction of a 600 tonne concrete box tunnel under the A5 to provide a rail link between DIRFT II and the original DIRFT

development, allowing Tesco to consolidate the rail freight operations of its other locations on site. The new building has achieved BREEAM ‘Excellent’ accreditation and an EPC ‘A’ (CO2 Index 23) rating, with operational carbon emissions at 36% lower than Building Regulations. In addition, Prologis mitigated 29,387 tonnes of unavoidable

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2011


I SUSTAINABILITY

New Rail Freight Distribution Centre Keeps Tesco’s Green Ambitions on Track In line with its strategy of expanding while simultaneously aiming to become a ‘zero-carbon’ business by 2050, Tesco has opened a new grocery distribution centre at the Daventry International Rail Freight Terminal in England. he new 80,000 square metres distribution centre has direct rail freight access for up to eight trains per day, which will take almost 100,000 lorry journeys off the roads each year, saving around 14 million road miles and nearly 20,000 tonnes of carbon emissions annuallyr. Tesco was already running two trains daily from Daventry to Scotland before opening the new facility. Tesco is committed to using rail to move its goods within the UK and the investment at Daventry marks a significant increase in this mode of transport for the retailer. Developed by ProLogis, the new distribution centre has been designed to be highly energy efficient and has achieved BREEAM excellent rating. It incorporates roof lights and sun pipes to provide natural lighting and to reduce the need for artificial lighting. Artificial lighting within the building is controlled by natural light level and motion sensors to minimise energy use. The new building also features a rain water harvesting system, which supplies both vehicle washing facilities and toilets. The new facility provides Tesco with additional capacity and replaces a grocery distribution centre at Milton Keynes, which has no longer large enough to carry the stock levels required.

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Saving Road Miles and Fuel The UK’s largest grocery retailer is committed CO2 emissions by investing in a local community project and a verified avoided deforestation programme that has protected 622 acres – almost a square mile - of Peruvian rainforest. Industry Leaders For Prologis, the completion of this first facility at DIRFT II is the culmination of five years work to deliver both the site and the rail freight benefits that it can offer to the distribution sector. Robin Woodbridge, senior vice president at Prologis, comments: “In the UK,

to reducing its carbon footprint for transport. Last year, Tesco’s UK rail network saved six million road miles and over 8,000 tonnes of CO2. The company also continued to increase the number of double-decker trailers used to deliver to stores, saving 12.5 million road miles and nearly 17,000 tonnes of CO2. Despite significant business growth, Tesco has not increased the size of its UK distribution fleet for four years. It has achieved this by training its drivers to drive more efficiently, by accelerating smoothly, using the highest possible gear, and maintaining a constant speed. Indeed, Tesco is now reducing the maximum speed of its UK vehicles to 50 mph in an effort to reduce our fuel consumption by up to 3%. Energy Efficiency Tesco has already made substantial investments in energy efficiency and new low-carbon technologies – spending £86 million last year alone. It is working with the planning authorities to build a number of new wind turbines and recently secured planning permission for two large wind turbines at its two distribution centres in Daventry. These 90m high turbines will each generate 800 KW of power. It is applying for consent for another three 100m turbines which will each generate 1.25MW. The turbines will meet about 20% of the energy needs of the Daventry sites. Any surPrologis is leading the development of strategic rail freight interchanges and DIRFT II is an important location within

plus power generated will be sold and exported to the National Grid. “The wind turbines will make a major contribution to our electricity needs at the distribution centres, in a clean and quiet manner,” says Jake Ronay, renewables programme manager at Tesco. “This is just another step in our long-term plan to seek alternative solutions to cut carbon emissions.” In 2009/10, Tesco’s UK operations reported an absolute reduction in CO2 emissions of 1%, while still attaining significant business growth. In 2010/11, following a relentless focus on refrigerant emissions along with further progress on energy efficiency, Tesco reduced its absolute CO2e emissions in the UK by 5%. J our national network. Tesco’s decision to take this new facility is a wholehearted endorsement of our rail freight strategy and it is a landmark for the logistics sector.” He adds: “We understand that Tesco’s modal shift will save around 14 million road miles and 19,600 tonnes of carbon emissions annually, a potential reduction in transport related emissions of 46%. This is a significant achievement that has the potential to influence the whole industry.” J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2011

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I FRESH PRODUCE

Strong Organic Growth at Codd Mushrooms Established in 2008, Irish family-owned company Codd Mushrooms operates one of the most modern and advanced mushroom production units in Europe and also one of the most environmentally friendly farms. ontrolling about 45% of the 22 million lbs per annum market, Codd Mushrooms is the largest supplier of mushrooms in Ireland. Codd Mushrooms employs 126 people and current annual turnover is Eur11.5 million. Established by brothers, Leslie and Raymond.Codd, the company started to construct its new production facility, incorporating growing units and a packing and cooling plant, in 2008 on the family farm in Tullow, County Carlow. “When we constructed our new premises in 2008, we decided to build it to produce mushrooms as environmental friendly as possible and without the use of pesticides. We envisaged this was going to be the future of all fruit and vegetable production and to not address this when building the new premises would leave us at a disadvantage going into the future,” explains Leslie Codd. Due to rapidly increasing sales the new facility was extended in 2009 and again in 2011. The current growing area is 130,000 sq ft and current output, following the most recent expansion, is 130,000 lbs of produce per week. The company produces a comprehensive range of mushrooms including closed cup, oyster and shiitake varieties. Two-thirds of sales are to the retail market with balance to the food service channel. Customers include Aldi, Dunnes Stores, Tesco, Keelings, Total Produce and Caterway.

the use of vacuum cooling to take the field heat out of the harvested mushrooms, which provides an extra two days shelf life on all the company’s products. The cooling process can reduce the temperature of the mushrooms from 20 C to 3 C in twenty minutes. Codd Mushrooms has also invested in ‘green technology’ to reduce energy costs while also minimising its environmental impact. “In 2010, we erected a 160 Kw

C

Codd Mushrooms has developed its own brand, The Honest Farmer, which was introduced in April,

Controlling about 45% of the 22 million lbs per annum market, Codd Mushrooms is the largest supplier of mushrooms in Ireland.

€5.5 Million Investment Codd Mushrooms has to date spent Eur5.5 million on the construction of its new facility in Carlow. A key feature of the facility is

“Our facility would be considered one of the most environmentally friendly and high tech mushroom production units in Europe.”

Honest Farmer ‘Turn the Pack Pink’ Campaign Raises Money For Charity Codd Mushrooms recently ran a successful fund raising campaign for the Irish Cancer Society. The company’s ‘Turn the Pack Pink’ campaign involved turning its Honest Farmer brand punnets pink for a month. The Honest Farmer made a donation of 2 cents to Action Breast Cancer, a programme of the Irish Cancer Society, for every pink punnet sold, as well as 2 cents for every click on their Facebook donation page. During the month-long campaign, The Honest Farmer brand sold 150,000 pink punnets of mushrooms, which is over 2 million mushrooms, raising Eur10,000 for Action Breast Cancer. Action Breast Cancer is Pictured (left to right): John McCormack, chief executive of the Ireland’s leading provider of Irish Cancer Society, and Jennifer Codd, director of Codd breast cancer information and Mushrooms, celebrating the success of the Turn the Pack Pink support. The charity reaches over campaign and the Eur10,000 donation to Action Breast Cancer. 25,000 women annually who are concerned about breast cancer and breast health. Breast cancer is the most common cancer in women in Ireland. Every year more than 2,500 women are diagnosed with breast cancer throughout the country.

2010.

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2011

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Codd Mushrooms is able to produce top quality mushrooms all year round without being affected by outside weather conditions. It also allows the company to produce mushrooms without the use of pesticides. “I have always been of the opinion that the most important attribute for a grower to have when supplying mushrooms is freshness and top quality service,” he says. A key feature of the facility is the use of vacuum cooling to take the field heat out of the harvested mushrooms, which provides an extra two days shelf life on all the company’s products.

wind turbine, which has proven to reduce our electricity bill by Eur36,000 per annum. We also installed a wood chip/pellet steam boiler to heat, steam sterilize and humidify our growing rooms,” points out Leslie Codd. “Our facility would be considered one of the most environmentally friendly and high tech mushroom production units in Europe.” He continues: “With the use of wind energy and wood burning we have reduced our carbon footprint considerably. We are also considering rain water harvesting on our plant at the moment. Armed with its new and expanded facility,

Brand Launch Although primarily a private label producer, Codd Mushrooms has developed its own brand, The Honest Farmer, which was introduced in April, 2010. “We have identified that customers demand mushrooms that are pesticide free and grown eco friendly and we have responded to this with the launch of

“When we constructed our new premises in 2008, we decided to build it to produce mushrooms as environmental friendly as possible and without the use of pesticides.”

the Honest Farmer range,” he remarks. “We use a green coloured punnet to promote the image of green energy.” To further enhance its green credentials, Codd Mushrooms is currently considering the introduction of biodegradable packaging and reducing waste to an absolute minimum. “We are also researching other environmentally friendly practices that we can adopt on our production unit,” he says. Outlook Despite the harsh economic environment in Ireland and declining disposable incomes for consumers, the mushroom market is showing resilience. Leslie Codd comments: “We are seeing slight increases in demand over the last two years. Price is obviously an issue with many customers so we have tackled this by having a large production base so as to have as low a production cost as possible.” With sales continuing to grow, Codd Mushrooms is planning a further Eur1 million expansion to the Tullow site within the next two years, including the building of offices beside the production unit. “We aim to remain competitively priced, retain our high quality and expand on our environmentally friendly credentials,” Leslie Codd concludes. J

Insulated Panels and Doors From Emco mco Panel Systems has a lifetime’s expeE rience within the insulated panels and door construction industry. The company has an extensive project/completion profile ranging from the pharmaceutical sector, distribution centres, manufacturing/processing facilities and the retail industry. Emco Panel Systems’ strict adherence to the principles of quality products, detailed design and a skilled work force ensure that the company can consistently provide clients with a service to meet or surpass their expectations and requirements. All projects undertaken incorporate a full design analysis including drawings, engineering solutions, installation and full project management service to project completion. Over the years, Emco Panel Systems has established excellent working partner-

ships with its insulated panel manufacturers and door system manufacturer (Coolit) in providing innovative working solutions to satisfy customer requirements. Due to changing market conditions and growing customer demands Emco Panel Systems sees a continuous need for improving and upgrading its systems, products and approach to individual project management. Emco Panel Systems is committed to providing installations that are compliant with the latest Building Regulations, Industry Standards and Fire Regulations. Emco Panel Systems has worked with Codd Mushrooms on its current expansion development. This was truly a fast track project. It was a unique project in terms of insulated panel construction as much consideration had to be given to the design ele-

ment and approach to construction. As the complete project was an external application free standing structure without structural steel framework, the factors to be considered in the overall design were: wind load; snow load; water drainage and overall building performance for the environment it was intended for. Together with panel manufacturer Kingspan and its technical division Emco Panel Systems was able to offer a design suitable to Codd Mushroom’s needs and also with long life sustainability. Given the fast track nature of this project the construction phase necessitated the need for careful programme planning, Health and Safety plan and the requirement to liaise with other contractors involved with the project. J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2011

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I FOCUS ON IRELAND

Irish Food Industry Plans to Reap Growing Harvests The Irish Government is banking on the food and drink industry being a major contributor to an export-led recovery for the country’s beleaguered economy. he food and drink industry is Ireland’s largest indigenous manufacturing sector and so is crucial to the country’s economic prosperity. It has an annual gross output valued at Eur24 billion and exports worth in excess of Eur7.8 billion. Supporting almost 270,000 jobs and representing 16% of industrial output, the food and drink industry accounts for 64% of manufacturing exports by indigenous companies. Crucially, it sources more than 70% of its inputs domestically compared with 30% for manufacturing in general. Given the relatively small size of the Irish domestic market, exports are vital to the food and drink manufacturing industry. The industry has traditionally been strong in meat processing and dairying but has also developed a sophisticated convenience food sector as well as an international expertise in food ingredients. As its nearest neighbour, the UK is still the main destination for Irish food and drink exports and purchased 43% of the total last year.

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Eur3 billion (a 40% increase) and achieving food and drink exports of Eur12 billion (an increase of 42%) by 2020. In order to reach these targets Food Harvest 2020 sets out 215 specific recommendations. Rising Exports Despite the global economic downturn and recessionary conditions in many of its major markets, Irish food and drink exports have continued to perform solidly, rising by 11% to reach Eur7.9 billion last year. Irish food and drink exporters have been benefiting from higher Irish Minister for Agriculture, Food and the Marine, Simon global prices for most agricultural Coveney, TD. commodities, a stabilisation in the consumer environment, enhanced competi- Agriculture, Food and the Marine, Simon tiveness and improved exchange rate factors Coveney, is totally committed to the Food as the euro weakened against both sterling Harvest 2020 policy. “It has evolved from and the US dollar. being a high level strategy into a shared Strong export growth has continued in blueprint for everyone involved in the sec2011 with exports for the first five months tor,” he says. “I have been very impressed estimated to have increased by Eur400 mil- that 91% of the 215 initiatives have comlion or 13% and prospects for the remain- menced. However, I am conscious that it is der of the year are broadly positive. only the start of the journey and I am determined to build on this good start.” Commitment Although Harvest 2020 was introduced by Milestones the previous Government, which was com- The Minister has set a number of intermeprehensively defeated in the last General diate milestones in the quest to reach the Election, the present Minister for goals of Harvest 2020. For instance, this year, targets include achieving a Eur300 million increase in value added in dairy, beverages, frozen foods, seafood, pet food, specialised bakery and snacks/confectionery, and growing export sales to Eur8.5 billion. The export target for 2013 is Eur9 billion rising to Eur10 billion for 2015. “I know that the Irish agri-food sector has extraordinary potential for growth and I firmly believe that Food Harvest 2020 is the correct approach to realising its potential,” he adds.

Blueprint For Growth Determined to exploit the economic potential of the country’s largest indigenous industry, the Irish Government has developed a strategy for major expansion up to 2020. Launched in June 2010, Harvest 2020 proposes ambitious growth targets for a forward looking, consumerfocused food and drink industry over a ten years period, based on innovation and sustainable development. It presents a strategic vision designed to place the agrifood and marine industry at the centre of Ireland’s export led economic recovery. A central theme of Food Harvest 2020 is to build on the clean green image of Irish food production as a basis for competing in premium quality food markets internationally. Key targets include increasing the value of primary output in the agriculture and fisheries sector by Eur1.5 billion (a 33% increase); Irish food and drink exports have continued to perform solidly, rising by 11% to growing value added sales by reach Eur7.9 billion last year. 32

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2011

Industry Optimism A recent survey by Bord Bia, the trade development and promotion agency for Irish food, drink


I FINANCE

Ulster Bank – Supporting the Irish Food Industry he food industry is one of Ireland’s most T important indigenous sectors and has a major role to play in driving Ireland’s export-led economic recovery. The industry employs almost 150,000 people, has an annual output of ?24 billion and accounts for over 50% of manufacturing exports by Irish owned firms exporting to over 150 countries worldwide. The Department of Agriculture Fisheries and Foods 2020 report sets a target to grow food and drink exports from ?7.0 billion to ?12 billion per annum by 2020. Strong Tradition Ireland's tradition and worldwide reputation in the food sector is very strong. Likewise Ulster Bank and its parent the RBS has a very strong tradition and track record in the food sector. Ulster Bank has been supporting businesses in Ireland since 1836 and has played a key role in the development and growth of the food sector from high growth start ups to family owned businesses, Co-operative Societies and global multinationals. Ulster Bank understands the key issues

and opportunities facing the sector from global commodity price fluctuations, rising energy costs and foreign currency exchange rate movements, to production capacity constraints, CAP reform, the need to continuously innovate and ever increasing food safety and environmental standards. Furthermore, accessing appropriate financing, risk and cash management solutions are critical to achieving domestic and international growth ambitions. Dedicated Food Team Ulster Bank through its dedicated food team is acutely aware of these challenges and opportunities. With over 1.9 million customers, 280 branches and 58 business centres nationwide, Ulster Bank is the only truly domestic and International bank in the Irish market today. Customers can

access a full range of banking products and services to meet their specific requirements. Through its parent, the Royal Bank of Scotland, customers get access to a global network of over 50 countries servicing in excess of 40 million customers. With its online Foreign Exchange, Trade Finance and International Cash Management solutions and industry expertise, Ulster Bank is uniquely positioned to help both domestic and internationally focused firms expand and grow their businesses. Funding Ulster Bank can assist businesses raise funding to fuel their growth through its debt capital markets capabilities, in addition to providing acquisition, capital expenditure and working capital funding. Whilst the Irish banking industry has faced major challenges in recent years, Ulster Bank remains fully committed to Ireland and the Irish economy. As one of Ireland’s oldest banks coupled with the support and global reach of RBS, Ulster Bank is uniquely positioned to help Irish food companies grow both at home and abroad. J

and horticulture, reveals that Irish food Irish food and drink manufacturers, and drink manufacturers across all catelike their European counterparts, are gories are relatively optimistic and have a faced with escalating commodity costs, positive outlook. 70% of exporters which are proving difficult to fully involved in the survey viewed the recoup in the marketplace, and conseprospects for their business this year as quently squeezing profit margins. At the good or very good, with 64% increasing same time, they are also trying to adapt their sales forecasts for 2011. Indeed, to radically changing consumer shopping 76% of exporters have succeeded in patterns, driven by the search for value expanding business with existing cusfor money. tomers, while 18% have developed busiProfessor Gerry Boyle, director of ness with new customers. Teagasc, the Agriculture and Food Respondents also highlighted a number Development Authority, points out: of key challenges facing their business “There has to be a renewed emphasis at including the value of the euro against both primary and processing sectors on the pound; pressure on consumer spend- The food manufacturing industry has traditionally been the improvement of productivity and ing; changes in purchasing behaviour; strong in meat processing and dairying but has also efficiency.” However, he questions and competition between retailers. developed a sophisticated convenience food sector as well whether as Ireland struggles with its large According to Bord Bia, the results of the as an international expertise in food ingredients. budgetary deficit and the cost of bailing survey suggest that 82% of Irish exporters out its banks, the Government will be could sustain an exchange rate with the and drink industry, the ongoing crisis in able to focus on competitiveness in the key pound of 1Eur to 85p in the long run with the Euro Zone and doubts about the sus- sectors of the economy and implement the 62% able to sustain their business if the tainability of economic recovery in the UK, co-ordinated policies and investments rate was between 85p and £1. still Ireland’s biggest trading partner, and needed. “We sense that there is not comthe US are fuelling continued uncertainty plete ‘buy in’, at the wider political or Current Climate in financial and equity markets and further bureaucratic level, of the potential of our Although the long-term global market fun- undermining consumer confidence in agri-food sector in the drive for economic damentals remain positive for the Irish food many countries. recovery,” remarks Professor Boyle. J 34

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2011


Corrugated – An Indispensable Ally of the Food and Drink Industry By Andy Barnetson, Director of Packaging Affairs, Confederation of Paper Industries ood and drink is the very stuff of life. F There could hardly be a more essential industry. Nowadays, retailers provide a huge amount of choice for the modern consumer, and this is made possible by the fundamental role that corrugated plays in transporting goods through the supply chain. Since Albert Jones first wrapped his newly patented corrugated paper around glass bottles back in 1871, corrugated packaging has played an increasingly essential role in allowing the supply of food and drink in the UK to grow, diversify and, more recently, to become more sustainable. In the early days, the primary and pretty much sole function of corrugated packaging was to protect goods from damage in transit. In some less advanced economies, damage and waste of goods in transit is in excess of 40%, compared to less than 3% in the UK. So it can be seen that this primary function of corrugated is not only being successfully accomplished but that it remains of fundamental importance. Food Waste According to WRAP, every year, 6.7 million tonnes of food waste is generated in the UK. What’s more, of the 20 million tonnes of domestic waste dumped into UK landfills, nearly 20% was food waste – either out of date or leftovers. This is a far greater problem than used packaging and has a much more significant environmental impact. There are many factors contributing to the amount of food that modern society wastes, but one thing is for certain, without corrugated’s highly protective qualities the amount would be much higher.

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The modern food and drink industry has been responsible for widening consumer choice in a way that would have been unimaginable by their Victorian forbears. It’s easy to forget that only a few decades ago the average supermarket stocked around 3,000 different items. Now the largest retail outlets are offering more than 50,000 different items to consumers. The explosion of new products has seen corrugated come into its own as its inherent flexibility as a packaging material has allowed it to adapt to the ever changing needs of the supply chain. As the requirements of brand owners and retailers change, so the corrugated industry adapts with novel designs or other innovations. Innovation So corrugated has not rested on its laurels. Far from it. As the food and drink industry has continued to innovate (it is estimated that around 8,000 new products are launched every year) corrugated has also showed its power to innovate by transforming the traditional brown box, used as outer packaging, to smart, beautifully printed retail ready packs that have allowed manufacturers and retailers to achieve new levels of efficiency. Corrugated retail ready packs have enabled companies to optimise the total amount of packaging in the supply chain and have given a boost to in-store operations making products easy to find back of store, easy to open, easy to shop and easy to dispose of. The advances in print on corrugated helped to increase in-store sales and promote brand image. None of these significant improvements happened by magic. Quietly, in the background, the corrugated packaging industry has been undergoing a technological revolution of its own. For example, recycled papers have been manufactured at a higher and higher level of quality, enabling corrugators to replace virgin fibres to a much greater degree than previously. Papers have become stronger and lighter

Andy Barnetson, Director of Packaging Affairs, Confederation of Paper Industries.

and this has allowed the corrugated industry to produce packs that carry more goods using less materials. Perhaps most importantly of all, the development of new software allied to new design techniques has meant that corrugated packs can be perfectly optimised for individual supply chains. New die-cutting machines have been able to produce ever more complex shapes. It is this flexibility and efficiency that enables the corrugated industry to take carbon out of the supply chain. This is possibly the most fundamental reason for predicting that corrugated will continue to be essential to the food and drink industry as society recognises its environmental challenges. Reducing Carbon The Courtauld Commitment from WRAP now sets a target of reducing the carbon impact of packaging by 10% in 2012 compared to 2009. The grocery sector is working towards saving 80 million HGV miles between 2010 and 2012. Members of the Institute of Grocery Distributors (IGD) have signed up to remove 75,000 tonnes of waste from their supply chains by the end of 2012. Everywhere you look in the food

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2011


and drink industry there are commitments to reduce environmental impact. For a number of reasons corrugated is ideally placed to help the food and drink industry achieve all its targets. The first goes right back to corrugated’s inherent flexibility as a packaging material. Since it can be cut and shaped to virtually any format, it is possible for designers using the latest software to ensure pallets can be stacked to the maximum and lorries filled to the roof. This takes lorries off the road as fewer are needed to carry the same volume of products. Just as important as its flexibility is corrugated’s second important attribute – the

fact that it keeps carbon locked in due to high levels of recycling (over 80% in the UK). In fact, the recycling process is so efficient that a food manufacturer’s retail ready pack can be recycled and back on the shelf as part of another box within 10 days! Whilst every packaging material has its own role to perform in the supply chain, corrugated is a very talented performer with many different roles. Promoting UK Manufacturing There are over 6,000 food and drink companies in the UK alone. If the corrugated packaging industry could have its way, there would be many more. That’s why, through its trade association CPI (Confederation of Paper Industries), the industry is supporting an initiative to encourage new Government policies that will promote the growth of UK manufacturing. Alongside other partners, including the Food and Drink

Federation, CPI is lobbying hard and at the highest political level. The corrugated industry has been providing an essential service to the food and drink industry for 140 years. Given the importance of its role in protecting and displaying products, as well as reducing carbon footprints, the corrugated packaging industry is looking forward to the next 140 years, helping customers to meet the challenges of the 21st century and beyond. For further information please contact Andrew Barnetson, Director of Packaging Affairs, on 01793 889602 or email abarnetson@paper.org.uk. J

Tapered Drums Lead to Business Expansion For FDL eading single-source packaging solutions L provider, FDL Packaging Group of Haydock, Merseyside, has witnessed a significant increase in demand as the UK’s official distributors of the Siepe range of tapered steel drums. Demand for the range has increased by a massive 20% in the last five years with storage space at a premium and warehouse managers actively seeking ways to use the space available more efficiently. With the UK market traditionally favouring straight sided steel drums, the stackable tapered drums from German company Siepe have taken a while to catch on but in recent years demand has snowballed with greater demands on warehouse space and growing disposal issues. As a result, more and more companies are looking to achieve a more space-conscious, and cost-conscious, stackable solution. By switching to stackable drums, a vast amount of valuable floor space can be saved in the typical warehouse. Available in sizes from 10 litres to 120 litres, tapered drums

Tapered steel drums from FDL Packaging Group.

can be supplied internally plain or lacquered and to UN approved specifications for the transportation of hazardous materials. With a full open top, cover lid with gasket and all held in place by a steel-closing ring.

The FDL Packaging offering provides a comprehensive range of packaging solutions that goes far beyond its signature range of innovative and market-leading fibre drums. In recent years, the company has also forged excellent relationships with other leading packaging manufacturers, enabling it to also offer comprehensive ranges in plastic and steel, providing single resourcing solutions to meet all manner of requirements across its diverse client base, ranging from the delicate small specialist containers used in laboratories to large bottles and drums for the safe transportation and storage of all manner of substances including hazardous materials. In all, FDL Packaging offers well over 1,000 different product lines from its fouracre Haydock site. The FDL Packaging service can accommodate direct full vehicle load deliveries, mixed full load deliveries and virtually any part load combination from stock. For more information contact FDL Packaging Group on Tel +44 (0)1942 722299 or visit www.fdlgroup.co.uk. J

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I SOFT DRINKS

Profitability and Sustainability at Coca-Cola Hellenic Escalating commodity prices and weak consumer sentiment in some of its markets have undermined interim profits at Coca-Cola Hellenic. erving a population of approximately 560 million people in 28 countries and selling over 2 billion unit cases annually, Coca-Cola Hellenic is the largest bottler of Coca-Cola products in Europe. The adverse impact of commodity costs and continued economic challenges in certain key markets resulted in a 23% decline in comparable EBIT to Eur249 million at Coca-Cola Hellenic for the first half ended July 1st 2011, despite a 3% increase in net sales to Eur3.37 billion, and a similar rise in volume. Comparable net profit dropped 28% to Eur146 million. Volume growth of 3% was led by a 6% increase in developing and a 3% increase in emerging markets. Net sales revenue growth included a 3% increase in emerging, an 8% increase in developing and a 1% increase in established markets. During the first half of 2011, Coca-Cola Hellenic grew its share in sparkling beverages across most of its key markets including Russia, Nigeria, Austria, Ireland, Ukraine, Romania, Italy, the Czech Republic and Poland. The group is continuing to expect benefits from restructuring initiatives of approximately Eur38 million in 2011. “Despite improved operating efficiencies, restructuring savings, and revenue growth management initiatives, high commodity prices combined with challenging economic conditions hindered our profitability,” comments Dimitris Lois, chief executive of Coca-Cola Hellenic. “Commodities are still expected to increase by low double-digits for the year. We remain committed to recover a

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substantial portion of this increase.” However, although consumer confidence remains fragile in most of Coca-Cola Hellenic’s markets, the company is confident of being able to grow revenue ahead of volume for the remainder of the year. Dimitris Lois, who became head of CocaCola Hellenic on July 4th, 2011 by succeeding Doros Constantinou who has retired, is optimistic about the long-term prospects. “We have a uniquely diverse geography and the world’s most loved brands coupled with low per capita consumption. Our unmatched execution capabilities and our strong market positions in our countries, which we strategically advance every day, leave us very well placed to leverage the opportunities ahead.” Growing Green Credentials Although its interim profits plunged, CocaCola Hellenic continues to strengthen its green credentials and to lead the European beverage industry in terms of sustainability and recycling. The Athens-based soft drinks producer is the first European food and beverage company to reach an ‘A+’ rating for its CSR report. Last year, Coca-Cola Hellenic invested almost Eur42 million in recovering PET bottles in pursuit of its goal to close the recycling loop by converting used packages into new. Coca-Cola Hellenic has pioneered the establishment of packaging recovery organisations that collect, recycle and recover packaging waste in 19 countries in which it

The adverse impact of commodity costs and continued economic challenges in certain key markets resulted in a 23% decline in comparable EBIT at Coca-Cola Hellenic for the first half of 2011.

Coca-Cola Hellenic serves a population of approximately 560 million people in 28 countries.

operates. In 2010, an estimated 79,000 tonnes of PET bottles which contained Coca-Cola Hellenic products were recovered. In Austria, the company co-owns a bottleto-bottle recycling plant, which recycles up to 570 million bottles each year. Sabine Strnad, resources recovery manager at Coca-Cola Hellenic, says: “We are committed to continuing our close co-operation with governments and the industry in order to promote collection mechanisms, technological innovations and sorting techniques. Our ultimate aim is to create truly sustainable closed loop packaging solutions.” The company achieved improvements in protection of the environment and of natural resources by recovering and recycling an average of 64% of packaging waste across 19 countries, and 85% of production waste across its operations in 2010. Through lightweighting, 5,000 tonnes of PET were saved. Other Initiatives Amongst the initiatives implemented by Coca-Cola Hellenic to combat climate change is the construction of 15 Combined Heat and Power (CHP) plants at its bottling plants, which will reduce CO2 emissions by up to 66% at each facility. The company has also launched a programme to install solar panels on rooftops. Energy-saving activities also involve improving efficiency of power use in bottling operations, transportation, and cold drink equipment. Another primary environmental focus is protection of water resources. More than 97% of wastewater was treated at bottling plants in 2010, and systems put in place enabled the re-use and recycling of 1.2 billion litres of water in production processes. J

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I LABELLING

Multiprint Labels Delivering High Quality and Innovation ultiprint Labels was incorporated in 1968 and has traded M successfully for over thirty years in the pressure sensitive labels business within Ireland, the UK and Europe. Multiprint supplies labels into the beverage, personal care and FMCG sectors in these respective markets. In the last ten years the company has become heavily involved in the

Multiprint’s purpose built base in Dublin.

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wine sector. Multiprint is now the largest supplier of labels into the wine bottling sector in the UK. Multiprint is accredited to ISO 9002 and BRC. The company is an approved vendor for all the major multiples in the UK, Republic of Ireland and is a recognised supplier to Proctor & Gamble. Multiprint has traditionally been an export led company and is VAT zero rated company since 2007. The company’s primary strategy is to develop a strong robust business model delivering a high quality product in very effective lead times. This is being achieved by (1) having four 16 inch Gallus UV flexo 10 colour combination printing presses which allows for both exemplary production flexibility and print quality whilst bringing commercially sensitive

prices to customers; (2) the company operates 24 hour shifts over 5 days; (3) exceptional customer service and technical expertise and (4) a flexible and competitive supply chain network. The company operates from its 28,000 sq ft purpose built base in Dublin where it can provide (1) flexo technology; (2) rotary silkscreen; (3) hot foiling; (4) cold foiling; (5) rotary embossing. All of the above are in line processes and can be combined with limitation of ten heads. Multiprint can also provide HOW technology (which imitates silkscreen at much lower cost), special varnishes (security, pearlescent, glitter etc), reverse print and complex Peel & Read solutions. Innovation has been the key to Multiprint’s continued growth in the last decade. J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2011


I BEVERAGES

Constellation Wines Australia and Europe Becomes Accolade Wines Constellation Wines Australia and Europe has been renamed Accolade Wines, following a change in ownership. he business was sold recently by Constellation Brands, the world’s leading premium wine company, to Australian private equity firm Champ in a deal worth A$290 million (Eur217 million). Accolade Wines incorporates virtually all Constellation’s Australian, UK, and South African brands, wineries, facilities, vineyards, and a 50% interest in Matthew Clark, the UK drinks wholesale joint venture. Constellation Brands has retained a 20% stake in Accolade Wines. One of the first wineries established in Australia, Accolade Wines has evolved into a global wine company with some of the world’s best-known brands sold in over 80 countries, including Australia, the UK, Mainland Europe, the US, Canada, Japan and China. Accolade Wines has more than 1800 employees in Australia, the UK, Europe, Asia and South Africa.

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UK Leader Accolade Wines is the number one wine company by volume in the UK and Australia, with a portfolio of brands ranging from the historic Hardys, the number one Australian wine brand in the UK and a significant wine brand in Mainland Europe, through to Kumala, the number one South African wine brand in the UK. The UK portfolio also incorporates Echo Falls, the third largest wine brand in the UK, Stowells, the number one wine brand in the on-premise trade, Banrock Station

(Australia), the UK’s number one environmentally-friendly wine brand, and South African Fish Hoek and Flagstone. The portfolio also includes various other premium branded wines and a Wine Fusion portfolio including Stone’s Ginger Wine, Stone’s Ginger Joe alcoholic ginger beer and Babycham. New Strategy The name change to Accolade Wines not only reflects the new ownership of the business but also a new approach. Chief executive Troy Christensen says the renamed company’s goal is to put consumers at the heart of its global business, creating distinctive brands with trusted wines. “We want our wines to be an enjoyable experience, shaping everyday moments into memorable experiences as well as providing fitting tributes for special occasions,” he comments. “We want people to reach for our wines when they are putting their feet up with a good book, watching their favourite game, sharing a meal with friends or just dancing to their favourite song.” He adds: “Our vision is about getting more people to enjoy our wines, it’s about growth in key markets and consumer-led innovation. Our mission is about being global, our global brands and our global footprint.” The business already has global brands such as Hardys, consistently recognised as one of the world’s top five wine brands, Western Australian icon Houghton and environmental leader Banrock Station. “We have done very well with these brands, but over past years we have struggled to build our brand identities. Now with fresh blood in the business, through Champ Private Equity’s acquisition of a majority stake back in February, we have the backing we need to build further,” he points out. Accolade Wines also plans to move into new markets. It is expanding in Eastern Europe and recently established a presence in Moscow to lead growth in Russia and neighbouring markets such as Ukraine. The idea is to further develop Accolade Wines’ business in mainland Europe and reduce its reliance on the UK, where sales have been

In the UK, Accolade Wines operates Europe’s second largest bonded warehouse and distribution centre.

hampered by high taxes and currency fluctuations. While Accolade Wines sells about 20 million cases annually in the UK, its sales in the rest of Europe are only 2.5 million cases. European Hub In the UK, Accolade Wines operates Europe’s second largest bonded warehouse and distribution centre. The new 80,000 sq m distribution centre and bottling facility at Avonmouth, near Bristol in England, was established following investment of Eur50 million two years ago. Incorporating two bottling lines and three bag-in-box lines, the new centre not only houses all of Constellation’s bottled wine coming into the UK but is also bottling high volume Australian brands. Bottling overseas wines in the UK, as opposed to at source, significantly reduces transport related carbon emissions by up to a third. Other green features of the new building include rainwater harvesting and sensor controlled lighting. The new Eur50 million facility was designed to enhance Constellation Europe’s capacity to serve the entire UK and mainland Europe, while significantly cutting production and distribution costs. Accolade Wines is planning to add a third bottling line to its plant at Avonmouth. According to Troy Christensen, it would increase the site’s production to about 30 million cases a year with potential for extra business with UK retailers for private labels, such as its current deal with UK supermarket chain Sainsbury. J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2011

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I INGREDIENTS & FLAVOURS

No One Sees Taste Like Kerry Kerry Ingredients & Flavours has just launched a global high-profile advertising and PR campaign, themed ‘no one sees taste like Kerry’, to highlight the company’s unique perspective on delivering good taste in food and beverage products. Adam Anderson, Research & Development Director, Kerry Ingredients & Flavours EMEA explains the reasons behind the campaign. is no secret that food manufacturers are Itastetstruggling with the challenge of maintaining in foods containing lower levels of salt, sugar and fat. Our customers tell us that consumers are increasingly dissatisfied with the taste of products that have been formulated – or reformulated – with lower salt, sugar and fat profiles. This ‘taste backlash’ has been highlighted by the recent decision of a major US soup manufacturer to increase the salt level in its soups, after an earlier much publicised reduction resulted in a slump in sales. While we firmly support industry efforts to reduce salt, sugar and fat levels in food, in line with medical evidence demonstrating the health benefits that result, we must face up to the fact that manufacturers are facing real challenges in maintaining taste and consumer satisfaction while making these reductions. Holistic Perspective It is becoming clear that conventional flavouring approaches are increasingly unequal to the task of delivering reformulated products which still offer traditional eating

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appeal. We at Kerry believe that what’s needed is a holistic perspective to taste, looking across the whole food matrix, encompassing flavours and other taste ingredients options. Our global taste campaign is designed to help manufacturers understand that we are a company that takes a different view of how to meet these challenges facing the industry. With over 40 years’ experience of working with food, we have the necessary technologies and capabilities to deliver on the complex area of taste functionality to enable the development of solutions that will address these reformulation issues more effectively. Kerry has one of the most significant R&D spends in the industry, and combines this with decades of food heritage, leading consumer insight and in-house sensory and analytical capabilities. Together these attributes create a package that provides a genuinely alternative approach to integrated taste solutions. We are not saying that using the latest science isn’t important, but reliance on science and the laboratory development of flavour technology alone is not enough. It is only through a combination of food science exper-

tise, and genuine in-depth knowledge of food, that the taste challenges the industry is facing can be met. No Compromise on Taste We hope our campaign will help global manufacturers realise that they don’t have to compromise on taste when reformulating products – an essential strategic concern when growing and protecting market share and sales in today’s highly-competitive, cost-conscious markets. The taste campaign is backed by a six-figure, three-year global advertising push with advertisements created by Saatchi & Saatchi X. These will run in key food trade media outlets, featuring high quality x-ray images of food ingredients unified by the strapline ‘No one sees taste like Kerry’. The advertising copy urges readers to talk to ‘someone who knows food as well as they know science’. A dedicated micro site, www.kerrytaste.com, has also been created, so why not find out more about what we see – and how we can meet your formulation and reformulation challenges? J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2011


I PICK & PLACE

Packman® 500 – Two Packaging Concepts – One Super Fast System ood and Pharma industry Packaging Systems specialist Tekpak has launched F the new Packman® 500 robotic pick and place system. With a choice of packaging options and ultra fast changeover cycles Packman® 500 delivers flexibility, efficiency and short payback times. Designed to handle small high volume products such as chocolate bars, flow wrapped biscuits, energy bars and snacks etc, the Packman® 500 system operates at speeds of up to 550 items per minute. The speed and flexibility of the Delta Robot used within the system is further enhanced by the Tekpak designed “Varipitch” gripper unit and the Tekpak pocketed collator. The innovative feature of this gripper is its ability to make use of the rotation axis of the robot to effect pitch changes on-the-fly as the robot moves from the pick position to the placement position, where the products can be deposited side by side and without gaps. The Elau systems’ robot controller is used to drive the servo controlled pocketed belt collation system. Capable of indexing at high speed, this unit ensures that products can be delivered into the pockets without gaps, even in the case of dis-continuous product feeding or variations in product in-feed speeds. The same Elau controller also continuously returns the

The speed and flexibility of the Delta Robot used within the system is further enhanced by the Tekpak designed “Varipitch” gripper unit and the Tekpak pocketed collator.

in-feed of a secondary packaging flow wrapper to produce flow wrapped multipacks

Tekpak’s Latest Packman 500 System - a choice of packaging options, high efficiency and short payback times.

exact position of individual products, enabling them to be tracked and picked up by the robot on the fly. Individual product locations are stored in a FIFO (first in first out) buffer ensuring that the robot always knows the precise position of the collated product. High productivity and efficiency levels are assured by industry leading changeover times – just 80 seconds in the case of the gripper to select a 4, 5, 6 or 8 item configuration and 75 seconds is all that is needed to change a transport conveyor belt and bearing. Flexible Packaging Options from Packman® 500 Packman® 500 provides users with a choice of two different packaging options. The in-line crash lock case erector makes it possible for the system to load product directly into Shelf Ready Packaging (SRP) allowing users to fulfil the growing demand for this type of packaging. The Tekpak case erector used in this system is the smallest, fully automatic, Shelf Ready crash lock unit on the market today. The “Easy-fill” case re-load system uses a long motorised magazine to reduce the frequency with which the system needs to be replenished. Control functionality for the case erector is delivered using an Allen Bradley PLC. The system is also configured for loading product directly to the

Live - Remote Diagnostics Remote networking and diagnostic facilities are provided using an IP camera, making it possible for Tekpak to provide remote technical support. Tekpak engineers can log into the control system and monitor the robot operating in real time. This capability not only reduces the time required to diagnose and repair but it is also a useful tool for production managers who may wish to log in from a remote desktop to observe the packaging process. The system HMI on the Packman® 500 system can be programmed to provide management information based upon key performance indicators such as production throughput per minute/hour/shift and downtime/number of stoppages and resets etc. The launch of the new Packman® 500 system is a clear demonstration of Tekpak’s commitment to the ongoing development of innovative robotic handling and packaging solutions for the food manufacturing sector. For more information, contact UK and Ireland Sales, Tekpak Automation, Tel UK: +44 (0)845 0537622, Tel Ireland: +353 (0)53 9163033, E-Mail: sales@tekpak.co.uk, Web: www.tekpakautomation. com. J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2011

Tekpak’s In-Line Case Erector - the smallest automatic SRP crash-lock case erector on the market today.

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I WASTE MANAGEMENT

Unilever Achieves Zero-to-Landfill Manufacturing in the UK nilever has achieved its ambition of becoming a ‘zero to landfill’ U manufacturer in the UK. The company's eleven manufacturing sites across the UK - from its PG tips factory in Manchester to its Colman’s factory in Norwich - do not send any non-hazardous waste to landfill. The commitment is part of Unilever's global Sustainable Living Plan, which sets out its ambition to double the size of the business whilst reducing its environmental impact. Unilever has achieved its target in the UK by striking an agreement with its waste supplier Veolia to ensure that more than 97% of its waste is recycled. The remaining 3% will be converted into usable energy. As well as Unilever’s manufacturing sites, the company’s two strategic research and development laboratories in Port Sunlight and Colworth Science Park, and its two major offices in Blackfriars, London, and Leatherhead, Surrey, are also included in the arrangement. Tony Dunnage, Unilever European ecoefficiency manager, says: “This is a significant achievement for Unilever in the UK as we make progress towards reaching our ambitious sustainability goals. It's a great example of how we are putting our sustainability strategy into action - by decoupling the growth of our business from its environmental impact.” He adds: “Managing waste in a manufacturing process has similarities to managing waste as a consumer - it requires the application of the ‘three R's’ principle: reduce, reuse, recycle.” The commitment also helps Unilever meet its waste-to-landfill targets beyond the UK, since the company’s eleven manufacturing sites produce around 25% of its overall European waste. Unilever has reduced its total waste in manufacturing per tonne of production by 77% since 1995. Acting on Food Waste Forming part of its ‘United Against Waste’ campaign, the global food giant recently commissioned OnePoll to conduct research across 29 towns and cities in the UK to 44

ascertain consumers’ attitudes to the amount of food that is wasted when dining out. This research backs up Unilever’s call on the food industry to join forces and work with chefs, restaurants and consumers to take action and address the issue of reducing avoidable food waste. In the UK 400,000 tonnes of avoidable food waste is thrown away every year when consumers eat out. This equates to 65% in the kitchen, when chefs are preparing food, and 30% from consumers leaving food on their plate. When you add it all up the food service industry is throwing £722 million worth of food away every year or 21 tonnes per eatery. That is the equivalent weight to three double decker buses for every restaurant in the country. Tracey Rogers, managing director of Unilever Food Solutions, says: “The industry has got a huge role to play and we must work together to achieve concrete results. Some caterers are already reducing avoidable food waste very effectively and we have also launched a toolkit for reducing food waste, Wise up on Waste, which will help caterers to make their businesses more efficient. Together we must be united and share best practice so we can tackle the issues head on.” The UK research conducted into the eating out habits of the country has revealed some interesting statistics. When it comes to food waste when eat-

ing out women are more concerned about the issue than men. This might be due to the fact that men are much more unlikely to leave anything on their plate. Over half the men surveyed said they always eat everything that's served up in front of them. However, when we eat out men are more particular about what they eat, 12% of men cited bad food as a reason for leaving something compared to only 8% of women Age is also an important factor. The older generation are more likely to clear their plate and young people are more likely to order more than they can eat, and yet feel the most guilty when they cannot eat it. When questioned about whether they'd like to be given the opportunity to leave something off their order they know they're not going to eat, 8/10 women and 7/10 men said they would and they'd be willing to pay the same price. 60% of people also stated that the reason they leave food on their plate is because they are too full. United Against Waste Unilever Food Solutions is calling the food service industry to form a coalition to bring them all together on the issue of avoidable food waste out of home. The first event was held recently in London and was attended by 100 key industry associations, organisations and the waste advisory body WRAP. J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2011


I RESOURCE EFFICIENCY

Branston Halves Mains Water Usage ranston, the UK’s leading buyer and packer of potatoes, has installed a £1m B water recycling plant at its Ilminster site,

topped around 79 cubic metres each day – so we decided to look at the way we used water on site and how we could reduce our mains water usage,” explains Ian Wait, general manager at the Branston site. “By working with several local agencies, we have successfully created a water recycling unit which, after just a few months of being up and running, is reducing our mains water usage by an incredible 52%.” The plant has a specialised chilling system which keeps the water at 8 to 10 degrees Celsius which is the ideal temperature for washing potatoes. Branston’s new recycling system treats the waste water from washing potatoes by removing the soil. The water then passes through a state-of-the-art membrane bioreactor for further filtration. The recycled water is then stored and used on site to wash potatoes. Branston fully expects mains water savings to increase over the coming months and is aiming for a 60% reduction. Not only is Branston now using less mains water for washing potatoes – but it is putting less effluent back into the public sewer. The recycling unit is also allowing Branston to put cleaner water back into the sewer. Branston received £55,000 in funding from the European Regional Development Fund via the Interreg project Water

and has considerably reduced its mains water usage. Branston has installed the water recycling plant and chilling system as part of its continuing commitment to the environment. Since the plant’s installation, Branston is already saving 41 cubic metres of mains water every day. “To wash potatoes which come into the plant from local producers, we were using a mix of borehole and mains water. This

Pictured (left to right): Stephen Drury, project manager: Coast, Catchment and Levels & Moors at Somerset County Council; David Cliffe of FWAG; and Ian Wait of Branston.

Adaptation is Valuable for Everybody (WAVE), a partnership project supported by Somerset County Council and The UK Farming and Advisory Group (FWAG) which is helping Branston to reduce its effluent discharge by at least 80%. The water recycling plant is part of a larger commitment by Branston to make it more sustainable. It follows the success of Branston’s sister site in Lincolnshire where a water recycling plant and anaerobic digestion plant have been installed. Branston was the first company in produce to receive ISO 14001 accreditation at its three sites in Somerset, Lincolnshire and Scotland. In 2008, Branston became the first company in the food sector to get the Carbon Trust Standard in recognition of its environmental initiatives. J

Courtauld Commitment Passes Half Century Milestone For Signatories our major drinks brands have signed up to the Courtauld Commitment, taking F the total number of major UK brands, suppliers and retailers to 53 signatories. Carlsberg UK, Nestle Waters UK, PLB Group and Typhoo are the latest UK companies pledging to take resource efficiency measures by signing up to the second phase of the Courtauld Commitment this year. The voluntary agreement is run by waste advisory body WRAP, to support businesses to improve their overall performance and reduce their environmental impact. Momentum for the Courtauld Commitment remains strong with an additional 17 signatories having signed up in the

last year to support three sector targets associated with food and drink waste and packaging, across the UK grocery retail supply chain. Courtauld Commitment signatories represent the vast majority of leading brands purchased by UK shoppers, which offers huge potential for reducing waste across the UK. The three Courtauld targets are: * To reduce the carbon impact of grocery packaging by 10% by reducing the weight, increasing recycling rates and increasing the recycled content of all grocery packaging * To reduce household food and drink

wastes by 4% * To reduce traditional grocery product and packaging waste in the grocery supply chain by 5%. J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2011

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PureCircle Expands European Presence alaysia-based PureCircle, the M world’s leading producer and marketer of high purity stevia products, is significantly expanding its European presence with the opening of a new European headquarters in London and the signing of a UK distribution agreement with Prinova Europe (formerly known as Premium Ingredients International). With European approval for high purity stevia ingredients expected by the end of this year, PureCircle has stepped up its application support for customers preparing for launches across Europe. France, which has led the EU with a temporary approval for high purity stevia sweeteners, has experienced rapid growth in stevia awareness and early market adoption in the low calorie sweetener category. Similar activity is anticipated across Europe, including the UK which is one of the largest markets for sweeteners

in Europe. “PureCircle recognised early on the European Union's potential for rapid growth, and responded by establishing strong joint ventures with leading sugar producers,” comments Jordi Ferre, president of PureCircle's Commercial Division. “Our direct UK presence will enable us to partner with customers across Europe. Sales, marketing, and application support will all be available through the UK operations further demonstrating PureCircle’s industry leading ability to provide solutions to customers throughout product development stages.” PureCircle's UK reach will be further extended through the new distribution agreement with Prinova which builds on the existing successful distribution relationship the two companies have already established in the US market. J

Cargill’s Provides $2.2 Million Boost to Farmers’ Incomes argill’s cocoa and chocolate business has C made the second of its annual sustainable certified cocoa premium payments, which total over $2.2 million, to 26,500 farmers across 21 co-operatives in Cote d'Ivoire. The substantial payments mark another step in Cargill’s commitment to build a sustainable cocoa supply chain and support cocoa farmers. Over 50% of the payments go directly to farmers with the remainder used by cooperatives to provide assistance to their members and to build local community facilities. These latest payments follow the first sustainable premiums paid by Cargill to farmers last year. Farmers are receiving the premium payment for the delivery of 20,000 tonnes of UTZ Certified and Rainforest Alliance

cocoa between October 2010 and May 2011. This represents approximately 10% of Cargill’s total bean sourcing in Cote d’Ivoire. The cooperatives obtained certification following participation in Cargill’s farmer training programme for certified cocoa in 500 Farmer Field Schools across the cocoa growing regions. The training is an intensive 10 month programme for co-operatives and their members and has been developed by Cargill’s cocoa and chocolate business in partnership with rural development agency Anader. In addition to the 21 co-operatives now certified, 20 others are expected to receive certification before the start of the next crop season, with a further 30 co-oper-

atives set to join the programme in October 2011. As a result of its success in Cote d’Ivoire, Cargill has intensified its farmer training programme in Vietnam, and recently announced the expansion of the programme to Cameroon. J

Ulrick & Short Muscles in on Sports Nutrition Market eading clean label ingredients specialist, Ulrick & Short, has launched a range of products excluL sively developed for the sports nutrition market. Fuelled by consumer desires for healthier lifestyles, Ulrick & Short’s Complex 12 hydrolysed wheat protein, coupled with its range of Delyte fat replacers, can offer this burgeoning sector the opportunity to develop innovative high protein, low fat sports drinks, protein shakes and energy bars. Complex 12 is free from lactose and cholesterol and not only offers a higher glutamic acid level but has just 1.4% fat content and is also suitable for vegans. Made up from 80% protein and 30% glutamine dipeptides, typically bonded by L-Alanine and LGlycine, Complex 12 is a highly functional ingredient offering a complete balance of proteinogenic and anti-inflammatory amino acids that are designed to work synergistically to deliver the optimum ratio of protein and carbohydrate, to replenish spent glycogen stores and aid muscle growth. Complementing Complex 12 is Ulrick & Short's sophisticated range of Delyte fat replacements, which are produced from a range of crops and have been developed with extremely high process tolerance levels so they can withstand multiple production cycles. J FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2011

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The Cambridge Food Company Improves Efficiency With BCP’s Accord he Cambridge Food Company is claimT ing company-wide improvements in operational efficiency following its investment in BCP’s Accord. Established in Cambridge over 20 years ago, The Cambridge Food Company is a family owned and run food service wholesaler servicing the catering trade in the East of England, including all the colleges of the University of Cambridge. The investment in new technology was prompted by the company’s rapidly

Mark Hulme, managing director of The Cambridge Food Company.

expanding business and the need for a specialist solution which could support this growth and easily scale upwards to meet the needs of an enlarged operation. Two years on the system is more than living up to expectations delivering efficiencies across the business. “Savings across sales order processing and picking alone equate to around two hours per day which we are very happy with,” reports managing director Mark Hume One of the most useful features of the system is proving to be the on-screen customer order profiling which helps the company to control and track customer orders levels, take a proactive approach to sales and deliver better customer service. As with the sector in general, the recession has impacted on growth, but implementing Accord means the company is now ideally positioned to take advantage of any upturn in the economy. “Operations are now more efficient, we have freed up human resources and have the tools to grow the business,” says Mark Hulme. BCP was chosen because of its successful

The Cambridge Food Company is a family owned and run food service wholesaler servicing the catering trade in the East of England.

implementation record, its financial stability and Accord’s powerful functionality. Mark Hulme adds: “Accord offered ‘value for money’ with competing solutions coming in at significantly higher prices. And it’s lived up to its reputation. It’s an excellent fit for our business with even more functionality than we’d expected. We know we’ll get even greater returns as we utilize it more fully.” J

Exel Launches Eagle Sales Force Solution xel Computer Systems, a leading UK software author, is extending its experE tise into the area of Sales Force automation by launching an advanced and flexible solution for sales operations. The Eagle Sales Force product utilises Exel’s innovative mobile computing technology. Jonathan Orme, Exel’s sales operations & marketing manager, explains. “The launch of this new, fully integrated product into the marketplace will provide companies with a solution that brings measurable, corporate wide business benefits. Sales Force automation is an obvious complement to our existing CRM functionality as it allows sales staff to access and update business information whilst they are out of the office, ensuring that your business data is unified and up to date throughout the organisation. In this increasingly competitive environment the ability to boost productivity, accelerate sales cycles and therefore increase customer satisfaction are key 48

to gaining an edge over your competition.” The mobile elements of the solution will work on a wide range of mobile platforms, including Apple, Android and Windows Mobile. This will give Exel’s customers the widest possible choice so that they can select the best device/platform for their particular current requirements as well as those in the future. Exel’s managing director, Rue Dilhe, adds. “A single software solution that operates on

all of these devices empowers our customers to choose the correct device for the job in question. The Eagle Sales Force solution allows our customers to embrace new mobile and tablet technologies in a rapidly evolving market without the need for costly redevelopment and associated delays, thereby future-proofing their investment.” He continues, “Because of the advanced mobile computing infrastructure of the product the devices are also able to work whilst off-line. Information is seamlessly synchronised with the back-office server when the device is back on-line.” Eagle Sales Force is designed for tablet computers (such as Apple iPads and Android devices). The range of activities that mobile sales operatives are able to carry out include managing prospects and customers; managing activities; generation of orders and quotations; stock enquiries; price enquiries and locating nearby prospects and customers. J

FOOD & DRINK BUSINESS EUROPE, SEPTEMBER 2011


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Food and Drink Business Europe  

September 2011 issue

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