Australian Food & Drink Companies

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November – December 2013 Head Office Melbourne Office 115181 PresidentWelshpool Street, Road, Welshpool WA 26Suite Goodyear 7, Level Drive2, 541 Blackburn Rd ph: +61 (08) 9451 7300 ThomastownMount Waverly VIC VIC 3074 www.tfggroup.com.au ph: +61 (03) 94648588 50551133/4

c11420Untitled-5 TFG 1 ad_v2.indd 1 3/11/1131/10/13 9:58:02 2:56 AMPM contents November / December 2013 Editor Amanda Bryan FEATURES [email protected] 48 Year in Review 25 Advertising Sales Manager A look back over the last 12 months Australia’s Carol Ewing at the big news stories, the top job 0419 109 414 [email protected] appointments and some of the best new products to roll off the Advertising Production Manager production line.

Michelle Carneiro PAGE 06 (02) 9213 8219 [email protected] 62 New Zealand Report NZ dairy update; Barker’s TOP SUBSCRIPTIONS enters Australian syrups www.greatmagazines.com.au space; Sanitarium rebuilds Call: 1800 807760 after NZ earthquake; Milmeq Email: [email protected] wins AACo contract; Water

SUBSCRIPTION RATES Buddies scoops awards. 1 year $99.00 2 year $178.20 News 3 year $237.60

1 year (overseas) NZ A$110 PAGE 22 06 State of the Industry: ASIA A$125 ROW A$170 AFGC report encouraging 08 Simplot plants saved for now food & drink companies 2013 Publisher 08 Heinz consolidates Lindy Hughson Golden Circle operation 08 McCain shuts SA site Subscription Manager 09 WCB takeover battle gathers pace Martin Phillpott 10 Vegemite celebrates 90th birthday Marketing Manager 10 Beverages: innovation critical Chris Hamilton 10 Sweet returns for stevia PLUS 25 Top 100 Australian Circulation Manager SPONSORED BY Lamya Sadi PAGE 64 Regulars food and drink companies 04 Comment Our annual report, produced in Group Production Manager 12 Packaging collaboration with IBISWorld, is an Matthew Gunn 18 Branding indispensable who’s who of the food 20 Exports and beverage industry. The report Studio Manager 22 Ingredients is sponsored by Oppenheimer Caroline Milne 68 Sustainability and provides key information such Art Director 70 Product News as annual sales figures and the Ana Maria Heraud 72 New In Store latest manoeuvres by the biggest 74 Retail Wrap food and drink businesses operating Designer in the country. Bree Edgar PAGE 73

Food&Drink Business is published by Yaffa Publishing Group Pty Ltd top AustrAliAn food & drink compAnies 2013 – December November ABN 54 002 699 354 100 www.foodanddrinkbusiness.com.au 17-21 Bellevue Street, Surry Hills NSW 2010. Tel: (02) 9281 2333 print post approved 100005338 Fax: (02) 9281 2750 Front Cover All mail to: At Oppenheimer, we pride ourselves on our ability to GPO Box 606, respond to our clients’ business by providing Sydney NSW 2001 innovative and adaptive solutions that exceed their expectations backed by unbeaten commitment to service. With operations in Australia, New Zealand, India and China and global alliances with some of the

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F&D Nov-Dec cover 2013.indd 1 13/11/13 9:38 AM 4 comment

The big picture

AS 2013 DRAWS to a close, this analyst, Emily Witham says (see story below). The takeover battle for Warrnambool Cheese issue of Food & Drink Business The Australian Food and Grocery Council has and Butter (WCB) could either further this objec- takes a good look at the year also provided also some pre-Christmas cheer in its tive with the creation of a new national dairy that was in Australia’s food recently released State of the Industry 2013 report. It powerhouse well positioned to reap these emerg- and beverage industry. Here, found that food and beverage exports increased by ing opportunities, or, if the Canadian group Sa- though, I’d like to take a peek 3.4 per cent from $18.2 billion to $18.8 billion in 2012- puto emerges victorious, we could see our dairy into the future to see what it 13, indicating the long-term strength of the sector. industry controlled by multinational companies, holds, and it turns out it’s not According to the report, this increase illus - as is occuring in the grain industry. looking too bad. trates improvement in the industry’s global com- First world problem? Actually no. Given the A highlight of this issue is our Top petitiveness and its ability to meet the demand looming issue of worldwide food shortages, 100 Australian food and drink companies report, for food and grocery products in Asia. the strength of Australia’s food and beverage which ranks the largest food and beverage com- Also encouragingly, the dairy product manu- exports has much broader implications for panies by size and provides a snapshot of their facturing sector led the industry on R&D, invest- global health. sales and their latest strategic moves. ing a combined $108 million in 2011-12, according According to IBISWorld, our collaborator on to the report. the Top 100, this year’s report shows just how These figures also help illustrate the fact that resilient some of our largest companies are. The Australia’s dairy processing industry is currently top 10 companies in particular have weathered at a critical juncture. In order to meet rising de- the tough manufacturing conditions and they mand for value-added products in Asia, it needs did this by boosting automation and efficiency to quickly scale up its export capabilities, just as and by adapting to changing consumer trends New Zealand’s industry did over the last decade Amanda Bryan through innovation, IBISWorld senior industry (see our NZ dairy round-up on page 62). Editor

Australia’s

Australia’s Top 100 TOP food and drink businesses revealed food & drink companies 2013 FOOD & DRINK Business has revealed the top Witham says beef processors have become 100 food and drink companies operating in Aus- more vertically integrated over the past five tralia in 2013 as we wrap up another action- years, gaining greater control of the supply chain SPONSORED BY packed year for the industry. and taking advantage of economies of scale. This year we saw companies ramp up their The dairy industry has also undergone product innovation efforts, expand into new exchange, she says. “Companies are now focusing Dairy co-operative Murray Goulburn and port territory, and for those undertaking plant on exports, and this is a key area for growth Nestlé each rose a spot but swapped positions, upgrades, energy efficiency became a key focus. and development.” coming in at number six and seven respectively, According to IBISWorld, a collaborater on the These types of trends have in turn influenced the with only the former boosting sales. report, many of Australia’s largest food and bev- rankings of top 10 companies that lead this year’s Goodman Fielder returned to this year’s top erage companies also expanded the breadth of Top 100 Australian food and drink companies. 10, while George Weston Foods dropped down to their operations and diversified their product The world’s largest dairy exporter, Fonterra 11th spot. Fosters also exited the top 10, largely lines to capture new markets. Co-operative Group, stayed in number one spot due to a change in reporting period. “Looking at the top 10 in particular, many in the Top 100, despite seeing its sales falling to Witham also noted another key trend: a sig- have restructured the way they manufacture, $18.7 billion in the 2013 financial year, down from nificant increase in acquisitions among the top and increased the level of automation through $19.9 billion in the previous year. 20 companies, with many entering foreign own- the use of new technology, which has in turn in- Coca-Cola Amatil ousted dairy and alcohol gi- ership. She points to Fonterra’s acquisition of creased in efficiency and reduced labour costs,” ant Lion from the number two spot after boost- Tamar Valley Dairy and Lion’s 9.9 per cent share Emily Witham, senior industry analyst with ing its revenues. Meat company JBS Australia in Warrnambool Cheese & Butter as examples. IBISWorld, says. was joined in the top 10 by two others from the The driving force behind the trend is vertical “All of these top companies have also respond- meat and poultry sector: beef company Teys Aus- integration, Witham says. “It means they can use ed really well to market change with innovation, tralia, which rose from 13th spot, and poultry economies of scale to reduce cost and that’s been whether that be the introduction of new flavours producer and processor, Inghams Enterprises, a prominent trend.” or the inclusion of organic or fair trade lines.” which was previously in 11th spot. Where does your business rank?

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Co-located with the 47th Australian Institute of Food Science and Technology conference 6 news State of the industry report: top hits THE MOST VIEWED STORIES ON FOODANDDRINKBUSINESS. encouraging signs for the future COM.AU LAST MONTH.

THE Australian Food and Grocery Council (AFGC) According to Valentina Tripp, KPMG Consult- MCCAIN TO CLOSE PLANT says its fifth annual State of the Industry 2013 report ing's national lead for consumer products, the past Frozen food processor McCain Foods shows an industry stabilising after sharp contractions year’s increase in exports for value-added foods will close its factory in Penola in in recent years, with encouraging signs for the future. such as meat processing, grain mill products and South Australia’s south east, resulting The KPMG report uses various sources of data to fruit and vegetables was expected to continue. in 59 redundancies. The company provide an economic snapshot of the last 12 months, “Exports to China increased by $770m (44 per cent pointed to a flood of cheap imported and it also provides insight into where future direc- on the previous year) with the meat processing and products, as well as high labour, raw tions for Australian food, beverage and grocery human pharmaceutical sectors accounting for 85 per material, fuel and electricity costs as manufacturing may lie. cent of this increase,” Tripp said. the reason for the cutbacks. Gary Dawson, CEO of the AFGC, said the latest re- “Despite a tough time for the dairy sector domesti- (see full story on page 8) port shows signs of cally, the sector significant growth presents strong po- TRANQUILITY IN A CAN potential, and the tential to capitalise Move over Mother and fly away Red good news comes on growing global Bull: the relaxation soft drink despite rising in- demand, particu- category has arrived in put costs, over-reg- larly in the Asian Australia. ulation and retail markets. Invest- Everyday Sunday is a price deflation. ment in R&D new carbonated One of the high- and innovation to drink that’s been lights was capital leverage Australia’s designed to investment in food high quality, clean, “embrace the product manufac- green and safe food chilled out turing, which in- supply systems is lifestyle instead creased by more key to long-term of encouraging us than 26 per cent to sector growth.” to sprout wings,” $2.5 billion in 2011- Dawson said according to 12 as organisations food and grocery Rockwell increased investment in productivity initiatives such companies are now looking to the government for Beverages, the as automation and other cost reduction programs. a return to certainty and stability, and to that end company that makes it. AFGC chairman Terry O’Brien said such invest- supported the finalisation of stalled Free Trade ment may also be being driven by emerging oppor- Agreement talks, a rollback of what he called SIMPLOT SEALS NEW DEAL tunities in the Asian market. “costly, unnecessary regulation”, action to reduce Woolworths will buy 100 per cent of its “It is widely recognised that the significant and energy costs, targeted investment incentives and Select private label range of frozen growing middle class across Asia provides an op- a review of competition laws. vegetables from Simplot Australia in a portunity for Australia to provide high quality, pre- “Right now the industry is facing massive chal- move that will see the retailer source mium, processed and packaged food to Asian con- lenges from high costs and retail price deflation all of its frozen vegetables from sumers in addition to our traditional exports of squeezing profitability,” he said. Australia by May next year. agricultural commodities,” O'Brien said. “This report shows that getting effective policies The report showed solid export growth in pro- in place will enable industry to take advantage of YELLOW TAIL MAKER cessed food and beverages, and Australia’s trade the massive growth potential for the future provid- LAUNCHES SPRITZERS surplus in substantially transformed food and bev- ed we can boost competitiveness and productivity, Yellow Tail maker Casella Wines is erage products has now increased for four succes- and open up market access in the growing econo- launching a new range of packaged sive years, including 2012-13, O’Brien noted. mies of Asia.” wine spritzers under the Bondi Rd brand. The company is also launching a new bottled sangria product under the Vital statistics Yellow Tail brand. SUGARY DRINKS BLAMED FOR • Industry turnover of Australia’s $111 billion total food and grocery sector remained largely OBESITY IN NEW AD flat in 2011-12, with a marginal 0.3 per cent decline. Food and beverage processing The Rethink Sugary Drink group has contributed $88.7 billion, and this sector grew 0.3 per cent, according to the report. released an advertisement of a man • In the 2012-13 financial year, total industry employment declined by 0.4 per cent (1071 drinking a glass of fat in its latest people) to 298,825. Of these, 222,000 are employed in food and beverage manufacturing. campaign against sugary drinks. • The food and beverage, grocery and fresh produce industries were made up of 25,662 The group, which is led by the Can - businesses in 2012-13, 170 fewer than 2011-12. Of these, 6255 businesses were in food and cer Council, Diabetes Australia and beverage manufacturing, down from 6312 in 2011-12. the Heart Foundation of Australia, • Food and beverage, grocery and fresh produce businesses spent about $535.8 million on R&D shows a man pouring fat from a and accounted for $50.8 billion of international trade, an increase of 0.8 per cent. soft drink can into a glass and then • The real value of industry exports increased by 2.2 per cent to $24.3 billion in 2012-13. drinking it.

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SIMPLOT Australia has announced its Austra- lian vegetable operations at Bathurst in NSW and Devonport, Tasmania, will continue to operate for now, but there will be changes. Simplot’s Bathurst plant will be downsized and production pared back to produce only frozen and canned corn and Chiko rolls, resulting in the loss of around 110 permanent positions, the company said. The Devonport plant has three years to find its feet. After that time, Simplot said it would either Simplot’s Bathurst confirm its viability or begin the process of clos- plant will only produce ing it down over the following two years. frozen and canned “We expect that over a three-year period the cap- corn and Chiko rolls. ital programs, together with improved management of our seasonal needs, will result in a gradual “In the absence of a lower cost structure, nei- the capital expenditure program in Devonport.” reduction of casual labour,” the company said. ther plant has a strong business case long term,” Woolworths also announced this month Simplot Australia’s managing director, Terry O’Brien said. that it would source 100 per cent of its Select O’Brien, said Simplot’s parent company, US-based In June, Simplot announced the potential clo- private label range of frozen vegetables from JR Simplot, had committed significant financial in- sure of both plants due to unsatisfactory financial Simplot Australia. vestment but it had done so on the proviso that op- performance and challenged stakeholders from O’Brien said long-term supply contracts from erations could be shown to be viable into the future. industry and the government to help it find ways both Coles and Woolworths were welcomed to reduce the cost of doing business at the plants. and very much appreciated, but both retailers “The outcome of that challenge has been very still require products to be supplied at sustain- disappointing,” the company said. “Therefore, ably competitive prices. Heinz consolidates Simplot has been forced to make a commercial The downsizing of the Bathurst plant will oc- decision now about the future of the plants. cur gradually as the company migrates volumes Golden Circle “A number of long-standing suppliers to Sim- to other facilities. plot, along with the NSW government and the O’Brien said if Bathurst remains financially beverage operation Bathurst local council, were the standout excep- sound on this basis, it will continue until fur- tions to the lack of offer of financial support. ther notice. However, if costs escalated or other Heinz will close its Golden Circle beverage “Tasmanian growers also joined the push for a aspects did not prove financially viable, a total manufacturing plant at Mill Park Victoria next viable solution and remain ready to do whatever it closure would then be necessary. year and will instead ramp up manufacturing takes to prolong the existence of the Devonport He also said that to remain operational beyond its Northgate, Queensland plant. plant. The Tasmanian government has recently three-years, the Devonport plant would require Over 150 jobs will reportedly go when the indicated a grant will be made available to assist in capital investment and labour cost reduction. Mill Park facility in Victoria closes, but Heinz says it will inject $8 million into upgrading its Queensland Golden Circle beverage manufacturing plant to boost production. McCain to close South Australian site Golden Circle started out as a pineapple cannery in 1947. It expanded into fruit FROZEN food processor McCain Foods will close cessed at another plant at Ballarat, Victoria. juice and canned fruit and vegetables and, its factory in Penola in South Australia’s south McCain has said it was committed to continu- in 2008, was acquired by Heinz Australia. east, resulting in 59 redundancies. ing operations at other plants in Victoria, NSW In 2011, Heinz slashed 160 jobs Like other struggling fruit and vegetable pro- and Tasmania. at the Northgate plant. cessors, McCain is pointing to a flood of cheap AUSVEG public affairs manager, William Heinz had planned to imported products, as well as high labour, raw Churchill, said the announcement was “just anoth- invest in new automated material, fuel and electricity costs as the reason er nail in the coffin” for an industry facing rising equipment to improve for the cutbacks. costs and cheap imports. efficiency at Mill Park, McCain Foods regional president for Australia “It is hoped that all efforts are made by McCain however the small size and New Zealand, Louis Wolthers, said Austra- to continue sourcing potatoes from these Penola of the plant made the lian potatoes were the most expensive potatoes growers and making them into chips in Ballarat,” capital investment in the world. Churchill said. required too costly. The company is calling for federal and state “What is urgently needed from federal decision According to Heinz, government support to address the structural is- makers is a commitment to overhauling country- the consolidation of the sues affecting the industry. of-origin labelling laws. Australian consumers Golden Circle beverage The plant is to shut have a right to easily choose operations will help down before Christ- locally grown frozen Heinz will spend $8 the company remain mas, when 59 jobs product, supporting million upgrading its competitive in the will go. However, Australian growers Queensland Golden long term. Circle plant. the potatoes grown like those in Penola, in locally will be pro- the process.”

Food&Drink business | November / December 2013 news 9

Foodbank sets It’s a three-way tussle over sights on new takeover target WCB warehouse THE Australian dairy industry is set for a major Not to be left out, Lion weighed into the take- Foodbank marked World Hunger Day on shake-up when a victor finally emerges in the over battle by buying a 10 per cent stake in WCB. 16 October with the launch of a public battle to win over shareholders in Warrnambool Lion positioned the move as a way to secure its appeal to raise $2 million for a new food Cheese and Butter (WCB). partnership with WCB. and grocery warehouse in Sydney to meet Just who will triumph, however, remains in Adding to the intrigue, Fonterra indirectly heavy demand for supplies. question. Bega Cheese was the first to throw its joined the scramble by buying an almost ten per Foodbank NSW said its current food hat in the ring in September though its offer of cent slab of Bega Cheese. distribution centre in Sydney is being 1.2 Bega shares and $2.00 cash for every WCB Fonterra has a close relationship with Bega in inundated with requests for food donations share was snubbed by the WCB Austraila and Fonterra CEO Theo Spierings said coming from 500 charities across the state. board who declared it neither fair the company had “confidence in Bega and the The hunger relief organisation also nor reasonable. strategy it is pursuing.” launched its End Hunger Report 2013, Canada’s largest dairy proces- Bega’s share price has risen over the which shows there has been an eight per sor Saputo was next course of the month, putting cent rise to 700,000 people in NSW on the scene, and in its offer in a much bet- seeking food supplies. early October WCB’s ter light. As Food & Foodbank NSW is currently helping directors decided to Drink Business went charities feed 80,000 people each month back its all-cash off- to press, Saputo, MG with more than 670,000 healthy meals, market offer of $7 and Bega had all but 11,000 people, 40 per cent of whom per share. raised their takeover are children, are unable to be assisted Then Murray Goul- offers. Stay tuned to each month. burn joined the bidding www.foodanddrink- Foodbank currently draws on donations war with an even higher business.com.au for the from 700 companies, the majority of bid of $7.50 per share. latest updates. which are Australia’s top food companies.

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November / December 2013 | Food&Drink business 10 news 90 years of Vegemite

MONDELEZ International, formerly known as Kraft Foods, has marked the 90th birthday of the iconic Vegemite brand with a Facebook campaign that aims to help Australians in need. The company pledged to donate one jar of Vegemite to Foodbank for every ‘like’ received during the month of October, its birthday month, on the Vegemite Facebook page. During the campaign, Vegemite reached over a million people on Facebook, an uplift of 155 per Mondelez workers blow out the candles on Vegemite’s 90th birthday. cent on 12 month average, according to Mon- delez. The company then donated 90,000 jars to In May it created some TV ads targeting The latest Facebook campaign also plays on help Australians in need to help it mark the popu- empty nesters who had drifted away from the Vegemite’s health credentials, with its page lar yeast extract’s birthday bash. The donation is Vegemite fold. prominently spruiking the fact that Vegemite is part of an ongoing partnership with Foodbank. The commercials showcased Vegemite as a a rich source of B vitamins. Darren O’Brien, Mondelez International tasty building block to healthy breakfast options According to Waddington, Mondelez talked to Australia’s MD, said that the company felt like poached egg on toasted sourdough and lots of Australians, and discovered many don’t un- that an “online callout” was the best way to sliced avocado with a squeeze of lemon. derstand the potential health benefits of Vegemite. enable Australians to share Vegemite’s 90th The company’s general manager of market- “That was one of catalysts for us to rethink our birthday milestone. ing for foods, Mike Waddington, said at the strategy going forward and one of my roles is to “The key to Vegemite’s longevity and success time that although Vegemite is still found in grow that brand,” he said. across the last 90 years is its ability to adapt with eight out of 10 pantries, when it came to older O’Brien said Vegemite is a brand that is owned the times and its integral role in the Australian Australians whose kids had left the nest, many by all Australians and on its birthday, the com- breakfast occasion,” O’Brien said. were not consuming it as often as in past. pany is asking everyone to remember the last 90 But with flat sales volumes for the brekkie “We found that though Australians still years, while looking forward to a bright future. classic, what’s in store for the brand? Earlier this love Vegemite, some felt it was more attached “Vegemite has taken pride of place at the Aus- year, Mondelez embarked on a television adver- to their past,” Waddington said. “We started tralian breakfast table for the last 90 years and tising campaign in a bid to rekindle Australia’s this campaign to inspire them to use it in a remains as relevant and loved today as it was love for Vegemite. different way.” back in 1923 when the first jar hit shelves.” Sweet returns Beverages: innovation critical The global stevia market has passed $US300 million, according to a new study by food and drink consultancy Zenith International. NEW products have been critical in driving Nielsen. The category attributed a 62 per cent The firm found that worldwide sales of up spending levels and overall dollar growth increase in its sales in 2012 to products that stevia reached 4100 tonnes in 2013, a 6.5 for the wider beverage sector in Australia, ac- did not exist in the previous year. per cent jump on 2012, taking its overall cording to a new report from Nielsen. Nielsen also found that while retailers market value to $US304 million. Nielsen’s 2013 Wider Beverage Report have also placed a huge amount of focus “After persistent efforts by key producers, shows that new products have added on new product development in the pri- which led to widespread legislative approval, $3.77 billion to the wider beverage mar- vate label arena, their efforts have not stevia is finally being recognised for its ket over the past four years. always been successful. natural, zero-calorie, sweetening properties,” According to the market researcher, “We found a third of private label Zenith senior market intelligence in a market where volume consumption beverage turnover in 2012 was gener- consultant, Davide Deiana, said. per capita has steadily trended down- ated by new products, but then one in According to wards since 2008, innovation is crucial. eight of these was delisted,” Watkinson Zenith, stevia’s “The Wider Beverage Report high - said. ‘The corresponding numbers for all-natural lights the continuous investment in bev- branded products was 15 per cent credentials help erage innovation over the past few years; through new products and just one in it stand out from and this activity has been instrumental 20 was removed from the shelves.” the crowd, and stevia’s in off-setting consumption declines,” Liz She said beverage market success in future looks bright Stevia Watkinson, director of consulting at the future would hinge on introducing given its imminent should Nielsen, said. new products that “blur the lines be- approval in key soon Cider has had the biggest Rekorderlig Cider has released a new summer tween beverage categories markets such as gain success in terms of new flavour addition: Apple-Guava. According to – effectively developing India and approval product development in the Nielsen, cider has had the most new product new tastes based on famil- Indonesia. for use in past year, according to development success this year. iar flavours”. new markets.

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imcdgroup.com/worldwide/australia 12 packaging

As one of the most delicate varieties of fresh produce, mushrooms have very stringent packing requirements. Roland Tellzen examines how JMP Engineering helped the country's largest mushroom grower to pack with care. JMP comes to grips with mushroom packing

AS AUSTRALIA'S LARGEST grower and packer It would also need to be able to work with the punnet and tray sizes with the one gripper, of mushrooms, Costa Mushrooms, based in lines running simultaneously, and handle a therefore only needing the single robot per line to Mernda, Victoria, has specific packaging needs range of punnet sizes from 200g to 500g, as load punnets into the trays and then place them to ensure its produce reaches its markets across well as two interlocked tray sizes, all packed on the pallets. Australia speedily and in top condition. into four possible stack combinations. The Australian general manager of Thomas- With farms in Queensland, NSW, Victoria, Costa also required a packing and palletising town, Victoria-based JMP, Paul Vassallo, says that South Australia and Western Australia growing in rate of up to 90 punnets per minute for each line with more than 500 installations around the world, excess of 500 tonnes of mushrooms per week, Cos- for small punnets and 80 punnets per minute per the company had the broad expertise to meet Cos- ta works hard to ensure its produce reaches capital line for large punnets, that could operate ta's specific needs. cities across the country in a timely manner. 24-hours-a-day, seven-days-a-week. “It was a great challenge, as well as a great op- Indeed, Costa says it is proud to be the All of this was complicated further by the deli- portunity for JMP, because we saw this not only mushroom pre-packing market leader. Costa cate nature of the produce to be packed. Costa as a potentially challenging palletising system, pushes for innovative ways to ensure its pro - specified any system would need to include a spe- but it gave us a chance to showcase our technol- duce is handled in the most effective manner cial gripper designed so it wouldn't touch the ogy and gripper design expertise, with all the to ensure customers are receiving the best mushrooms as they bruise easily from handling. equipment designed and manufactured by JMP,” quality mushrooms. Putting its requirements out for tender, it was Vassallo says. To help Costa supply such heavy demand for its offered a choice between a system requiring four “With our main 40,000 square foot workshop, mushrooms, the company recently decided to in- robots – two loading punnets into trays and an- JMP Engineering can take on any size engineer- stall a new palletising system at its Mernda facility. other pair palletising those trays – and a solution ing project from a simple parcel conveyor to a It had some very stringent requirements for proposed by materials handling specialist JMP multiple lane, multiple pick-and-place robotic the system. It had to be robust and speedy Engineering that would only require a single ro- palletising systems.” enough to automatically pack mushroom pun- bot per line. Vassallo describes the operation as a “triumph” nets into cardboard trays and then palletise The JMP system was based around a solution of speedy planning and execution. the trays. using a custom-built JMP gripper to handle all On completion, the system is now capable of handling a maximum peak rate of 180 punnets JMP's palletising per minute, and a peak palletising rate of 30 solution for Costa trays per minute. Mushrooms For all the design and complexity of the prod- combines speed uct, Vassallo says one of the unique aspects of the with the ability to system is how little human input is needed to handle the keep it working now it's in place. company's “It takes only two operators to look after the delicate produce total system,” he says. with care. “JMP handles automation and control in- house. We have a team of specialists who write all of our software. “While our systems primarily use Allen Brad- ley PLC and panel technology, we also regularly use Omron and Siemens automation.” He says the project now joins successful installations of JMP machines around the world in a variety of industries.

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S y d n e y • M e l b o u r n e • b r i S b a n e • H o b a r t • a d e l a i d e • P e r t H • Hunter Valley 14 packaging

Van Dyke presses lift the lid on yoghurt packing

SYDNEY’S VAN DYKE Press, a family owned materials, particularly aluminium and PET. “Such companies did a good job and were specialist printer of packaging and product deco- The need for expanded capacity and a broader highly experienced but their long lead times and ration materials for food and beverage products, range of die cut lidding materials than the com- high minimum order quantities created prob- has taken delivery of new German finishing ma- pany has been supplying for the past 15 years was lems for local users who demand quick turn- chinery for the cutting of aluminium and PET the driving force behind the investment, accord- around times to keep up with local demand. heat sealable lidding. ing to Van Dyke’s general manager Will Tompson. “Van Dyke has won a good deal of work from The new equipment complements the al- “The local market was being catered for, to a these overseas suppliers as well as picking up ready installed cutting and flexographic print- significant extent, by overseas suppliers and the new work that a few years ago would have gone ing machinery purchased two years ago follow- need for a stronger local supply base was obvi- offshore, and that is a good position to be in,” ing strong demand for a wider range of lidding ous,” Tompson tells F&DB. he says. With aluminium and PET used to such a large extent in the dairy, dip and dessert markets, it is fundamental to have the equipment to supply the full range of lidding materials, he says. “We had to offer more options than just the limited number that we previously printed through a sheet fed press,” Tompson says. He says that installing the new machines has opened up a new avenue of business for Van Dyke. “The whole ready-to-eat meal trend, the move to smaller pack sizes, retailers forcing innovation on brand owners and manufacturers – all of this is driving development and demand,” Tompson says. “Our new machinery is 15 per cent faster than the original equipment which will allow us to achieve our target of doubling capacity.” The increase in output Van Dyke has experienced since installing the new machinery has significantly reduced work load pressures and Van Dyke's Brookvale facility has had an equipment overhaul in allowed it to pursue larger customers. recent years to cater for the expansion of its die-cut lidding services.

Food&Drink business | November / December 2013 packaging 15

Large robotic array moves GWF’s smallgoods Smallgoods manufacturer George Weston Foods has invested in what is claimed to be the country's largest robotic palletising system. Food & Drink Business examines the thinking behind the giant system.

SMALLER, SHELF-READY PACK sizes and The palletising system can an emphasis on automated distribution sys- process up to 9000 cartons tems to get products into stores has prompted of smallgoods in an hour. George Weston Foods (GWF) to build what's believed to be the country's largest robotic palletising project. tions, with another robot at the front of the making sure the consistency and quality of the GWF has installed an array of 16 palletising station preparing the pallets. pallets was what they required for their automat- robots, supplied by ABB, at its production facility At the end of the lines, two rail systems with four ed networks,” Martin says. in Castlemaine, Victoria. shuttles deposit the finished pallets at two stretch “And like everyone else, we also had increasing GWF employs around 8000 people at nearly 60 wrapper stations, which wrap more than 100 loaded labour costs and concerns about our ability to sites across the country. Its Castlemaine produc- pallets an hour and feed them to the automated make the productivity targets we needed in order tion site produces a wide range of smallgoods, guided vehicles (AGVs). to remain competitive.” which are supplied to consumers through the re- GWF Castlemaine operation packaging team Martin says the market trend is towards tail food service and small distributor network. leader, Troy Thomas, says the enormous opera- smaller, more shelf-ready pack sizes. The factory is divided into four key plants: tion was designed chiefly to eliminate challenges "Obviously that increases the repetitiveness of ham, bacon, salami and continental smallgoods. presented by the company's previously manual the tasks the team here needed to do, therefore Each of these production areas is serviced by a palletising operations. increasing our OHS risk as well, which is proba- shared palletiser and distribution service. "I think the defining factor was knowing that bly the main risk that we have on site,” she says. The 16 ABB robots serve 32 packaging lines, we could eliminate a lot of manual handling and Barry Hendy, general manager of ADDE, which collecting over 450 different products at the rate remove a fair bit of the labour cost associated designed and built the system, says the ABB of about 9000 cartons per hour, coming from four with the manual handling," he says. equipment was chosen because of the speed and different packing areas. GWF supply chain manager Kim Martin says accuracy requirements of the project. Some 27 lines and more than a kilometre of the project also had the needs of the company's The configuration was based on the speed of conveyor bring products into the palletising retail customers in mind. the individual lines, he says, which dictated the cell, in which the ABB robots serve 32 pallet sta- "We had challenges with retailers in terms of solution of 16 robots serving 32 pallet stations.

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November / Decemebr 2013 | Food&Drink business 16 packaging

Plasdene partners to fill a closures void

PLASDENE GLASS-PAK BELIEVES that a new customers unprepared, but Plasdene Glass-Pak ty lithograph print in sizes from 33mm to 110mm, partnership with a leading international manu- had been in a good position to take up the slack. and off-set digital print (up to 12 colours) with low facturer and a comprehensive network of ware- “We are finding many food and beverage pro- minimum order quantity. houses across the country will help fill a void in ducers have been caught short or left in an unac- Additional services Massilly provides include the local closures market left when Amcor shut ceptable out-of-stock situation,” she says. design, supply and installation of capping ma- down its local facility this year. In addition to an extensive range of glass and chinery and technical support. In-house com- The privately owned Australian packaging plastic bottles, jars and containers, Plasdene pound manufacturing enables faster response to supplier and distributor was recently appointed Glass-Pak has been a long-term supplier of metal legislative changes or specific application includ- the Australian distributor for France's Massilly, closures to the Australian market over much of ing manufacture with accredited BPA non-in- one of the largest metal twist closure manufac- its more than 26-year history. tended varnish; an important consideration giv- turers in the world. “We're very experienced in supplying metal en BPA will be forbidden in any food product in According to Plasdene Glass-Pak's marketing closures, as well as inventory management, so France from 1 January 2015. manager, Jayne Pearson, the Massilly appoint- we think we offer a globally recognised, viable It supplies closures to many global brands in- ment came at a very opportune time for the Aus- and competitive option for customers who were cluding Campbells, Heinz, Parmalat and Nestlé. tralian company. caught short by the Amcor moves earlier this “Massilly is extremely pleased to have devel- “As a national distributor of rigid packaging year,” Pearson says. oped this partnership with Plasdene Glass-Pak,” with inventory management and warehouse ca- She says the company's ability to support such Massilly's closures division managing director, pability in seven locations across Australia, this new customers had also been strengthened by its Stéphane Lequin, says. appointment is timely, given the shut down of the new distributor relationship with Massilly. “Our two companies are sharing the values of Amcor Closures manufacturing site in Australia “We are very careful about partnering with a family business and are dedicated to custom- earlier this year,” Pearson says. quality manufacturers. As an ISO- and HACCP- er service. Through the extensive commercial Amcor announced the closure of its accredited manufacturer, Massilly is a good fit. We and logistic network of Plasdene Glass-Pak, as metal and plastics beverage closures plant are family owned, which is a nice synergy with well as their strong technical expertise, we are in Thomastown, Victoria, as part of the Massilly because it is family sure that the Australian market will benefit restructuring of its operations in Austra- owned as well.” from this new partnership.” lia and New Zealand ahead of A metal packaging man- Pearson says the other advantage the local spinning off its local business ufacturing specialist since company held was its extensive network of ware- into a new entity called Orora. 1911, metal closures house facilities across the country and importa- Pearson says the move had represent 35 per cent of tion experience, enabling it to hold quantities of caught many local Massilly busi- closures in stock for customers as required. ness. It manu- “We are specialists in inventory management facturers deep and stock can be held against orders for draw skirt, easy grip, down as required,” she says. “We just want to narrow chan- make it as easy as possible for customers. nel and regular “Stock ranges of button and non-button clo- panel twist closures from sures in various sizes and colours are held in all As well as supplying caps and 33mm to 110mm diameter. seven of our branches in Sydney, Melbourne, closures, Plasdene's new partner Its custom print and manu- Brisbane, Adelaide, Perth, Hobart and our latest Massilly also provides a full facturing technology in- custom-built facility, in the Hunter region of range of capping machinery. cludes six-colour, high-quali- NSW, which opened in January this year.”

Food&Drink business | November / December 2013 packaging 17 THE VAN DYKEE Students try their hand at easy-open food packs PTY. PRESS LTD. EASY-TO-OPEN SOLUTIONS FOR food packaging, including a plastic sliding key mechanism, designed to Lidding Specialists make opening tuna cans simpler, a levered closure for yoghurt tubs and an easy-grip ketchup container, (110), COLOUR (110). R LOUR IZO P , CO REM UR IU topped the winners’ list at this VO M LA DE , F SS 1) E 3 RT , 3 S 7 , 1 9 / year’s Cormack Innovation Awards. (2 6 - D 1 I 0 C A A M D C O O O R F Tertiary industrial design stu-

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T E S annually by Sydney closures company Cormack Packaging. The winning design, by Dominic See of the University of NSW (UNSW) was nominated by judges as the most outstanding solution from over 150 UNSW student Dominic See and his prize- entries, later culled down to 20 finalists, for solv- winning design for an easy-open tuna can. ing a common packaging accessibility problem. See’s solution to the accessibility challenge of recipients of the 2013 Sustainability Award from opening tuna cans, which typically are not only the Australian Packaging Covenant (APC). She difficult for the elderly or those with disabilities shared the award with Mariana Helene Abdo, to get into but create sharp edges causing risks of also from UTS, who produced a design for an cutting injuries, involved replacing the conven- easy refillable bottle made from medium-density tional pull-back metal tab with a plastic sliding polyethylene (MDPE). key that can also double as a fork substitute for Cormack Packaging’s managing director, “on-the-go” consumption. Mathew Cormack, praised the innovative ap- For his efforts, See will receive an internship proaches to solving packaging accessibility chal- with Cormack Packaging, as well as a cash prize. lenges presented by the award entrants. Runner-up design was PryTop, a levered closure “The awards show what you can achieve when enabling easier opening of plastic tubs such as yo- you have smart minds looking at smart solu- ghurt containers, by student designer Michael tions, and there were certainly some very clever Rudd of the University of Western Sydney (UWS). designs here this year,” Cormack said. Third place was awarded to University of Tech- He said he hoped the awards would encourage nology Sydney (UTS) student Shelley Javier for students to pursue packaging careers. her Clean & Easy KetchupKap, a new cap design “The FMCG industry is one of the biggest in the to provide easy grip and opening, and a cleaner world, and it tends to be recession proof, so I would experience, in using plastic ketchup bottles. urge students to consider making it their career Javier’s design was also recognised for its sus- and use their creativity to influence the future,” tainability features, being named as one of two Cormack said. Aluminium + PET Die Cut Lidding All Reel Fed Lidding Structures Locally Manufactured Short Lead Times

The Van Dyke Press Ph: 61 2 9938 5666 LEFT TO RIGHT: Runner-up entry PryTop featured an innovative closure system for yoghurt tubs; [email protected] The third-placed KetchupKap concept, by UTS’s Shelley Javier, allows easy grip of sauce bottles. www.vandykepress.com.au

November / December 2013 | Food&Drink business

Untitled-12 1 16/08/13 2:13 PM 18 branding Don’t overlook your online image It is essential to take digital branding seriously to avoid falling behind the competition, writes Daniel Roberts, founder and CEO of digital content company SKUvantage.

AS CONSUMERS INCREASINGLY use the in- uct in the digital customer’s hand with 360° ro - ternet and mobile devices to research and buy tations, controllable and zoomable by the user. their food and drinks, making products look as Historically, this has been an enormous chal- good online as they do offline is essential. The lenge and was prohibitively expensive, so it was brands that provide high-quality product con- something that neither retailers, manufacturers tent in all consumer channels will be those that nor their service providers were geared to deliver. win in the digital future. However, a new breed of targeted and afford- Customer-facing digital product content is the able digital content services such as those pro- A couple of catalogue images term given to the information that customers need vided by SKUvantage aim to close this gap. are no longer good enough to to buy products online. It is more than just good Using these types of services, manufacturers get your message across online. product images: it is the structured data and con- can take more control over the information dis- tent that helps customers find the products they played on retailer sites about their products, and want and also sells the benefits to them. this also ensures this information remains com- Yet this essential requirement is not being well plete across the full range. Facebook fans addressed in Australia. Attempts to use many of The newly designed Coles website illustrates the major online sites is testament to that. the opportunities. Coles now enables customers Few manufacturers or retailers are well geared to navigate to products according to important of the brands to gather and present this content, and most ex- attributes such as allergen information, health Australia’s favourite food brands are isting digital services don’t deal with the text and benefits and country of origin. To take advantage Pringles, Yellow Tail, V Energy Drink data-based side of product content. One of the of this type of capability, brands now need to de- and Cadbury Dairy Milk, according to consequences of this is that customers shop over- velop this information and provide it to retailers the latest Facebook metrics. seas because they get a better experience online, in a format that makes it easy for them to use on Those brands were among the top 30 with better product content helping them find, their digital platforms. Facebook pages by fans according to the and understand products’ features and benefits. Numerous independent apps also rely on this latest Australian Facebook Performance Yet Australian brands invest significant sums type of content to work effectively, and if a prod- Report by Online Circle Digital. in packaging, in-store merchandising and pre- uct doesn’t have the information required, at The company’s lead strategist, Lucio sentation. The next step is to replicate this effort best they won’t appear in the right place. Ribeiro, however, says the report is in all consumer channels. At worst they won’t appear on the sites at all. just a guide. “In social media, it is easy Coles, Woolworths, ALDI, Foodworks and oth- The spin-off benefits of capturing all of this to mistake popularity for credibility, ” er retailers have a big role to play in directing con- content are numerous, from providing a single he says. sumers to special offers, and the investment re- point of reference for category managers, to be- In the food and beverage manufacturing quired to operate these channels has to be ing repurposed for field sales teams and enabling arena, snack foods were the third budgeted into their marketing strategies. direct to consumer opportunities. highest industry by the number of fans, Major retailers now list the full store range on Brands need to take this sort of proactive ap- beaten only by airlines, travel and their websites and new apps enable customers to proach to product content to realise the opportu- tourism and TV programs. build shopping lists, or do their full weekly shop. nities. No brand manager would want plain Pringles topped the list with more than a “Big data” now enables customised marketing packaging offline, so why settle for it online? million fans, followed by 5 Gum, Cadbury emails to draw from the full range, targeting in- Dairy Milk, Vegemite and Nutella. dividual products at individual customers. ABOUT THE AUTHOR In the beer, wine and cider sector, These initiatives give brands new channels to Yellow Tail lead with over 700,000 fans, communicate new ranges and showcase the Daniel Roberts is the founder followed by Rekorderlig Cider and Pure higher margin products that are often in the long and CEO of SKUvantage, a Blonde, while Wild Turkey, Bundy Rum tail. However, it also means that full digital con- digital content company that and Jim Beam led the spirits brands in tent across all products is required to participate provides a fully managed that order. in these new opportunities. service to get CPG content onto In non-alcoholic beverages, That means that a catalogue image is no lon- retailer sites. SKUvantage works V Energy Drink had the ger good enough to get your message across. with suppliers, retailers and agencies to most fans, followed by Full product content consists of images of all improve the customer experience and Dare Iced Coffee, Pepsi angles of the product, fully structured data, support retailers’ multi channel and Fanta. marketing copy, and ideally video if available. strategies. He can be contacted at It’s now even possible to virtually put the prod- [email protected].

Food&Drink business | November / December 2013 branding 19 Instant coffee brands face-off INSTANT COFFEE IS flavour of the month if two high-profile pro - motional campaigns from Nestlé and Mondelez International are TARGETED any indication. Industry figures show the pow - TRADE dered pick-me-up remains a dominant force in the coffee scene. It still PROMOTIONS comprises over 80 per cent of total Research shows one in coffee sales, according to IBIS- five people buy Nescafé. TO ENGINEER World, and Roy Morgan Research Nescafé is the primary also recently reported that 40 per sponsor of Jessica THE RESULTS cent of Australians aged over 14 Mauboy’s upcoming bought instant coffee in an average nationwide tour. YOU SEEK four-week period. Roy Morgan also found that more than half of them – 21 per cent of the popula- Despite all the activity, however, instant cof- tion – bought Nescafé, but now the iconic in- fee sales are on a slow downward trend. Total stant brand has a new rival. Mondelez Interna- sales in the year to March 2013 were four per- tional, formerly Kraft Foods, has launched one centage points lower than in the year to March of the world’s biggest premium instant coffee 2009, according to Roy Morgan Research. brands, Carte Noire, into Coles, Woolworths Camille Meylan, head of marketing for bev - and independent supermarkets. erages at Nestlé Australia, recently told Food & Carte Noire is France’s number one coffee Drink Business that the explosion of the coffee brand, and according to Darren O’Brien, manag- culture was having a big impact on the tradi- ing director of foods at Mondelez International tional retail coffee market, with consumers Gain the ability to quickly model Australia, it’s also the fastest growing instant cof- now looking in supermarkets for the same cof- multiple promotion scenarios, fee brand in the UK. fee they drink at their local cafes. adjusting causal drivers on the fly The company is supporting the launch with a “We are therefore seeing a trend towards global campaign featuring fire and ice to pro- premium-style coffees where consumers are to achieve the business outcome mote the unique roasting process the company willing to spend more on coffee and trade up to you desire. uses to make the product. premium offerings,” she says. “When you roast the beans, it is the precise The company has responded to the trend • Trade Promotion Management moment that you introduce a cold shower of wa- with the extremely successful launch of its Nes- ter that locks in flavour and aroma,” O’Brien told presso machines and capsules. • Modeling & Trade Promotion Food & Drink Business. Carte Noire’s answer to the premium move- Optimization He says Australian consumers currently have ment is its wholebean instant product, Millica- • Forecasting & Volume Planning very limited brand choice, with 90 per cent of no, which combines market share split between just two brands, Ne- an Arabica-rich blend • Customer Account Planning scafé and Moccona. of instant coffee and & Budgeting “People are on autopilot, and we need to break finely milled beans to the coffee coma, so we are taking an innovation provide a compromise Now available as SaaS solution. position with the fire and ice campaign,” O'Brien between convenience Contact us for a demonstration: says. “We want to awaken to consumers to fact and quality. [email protected] that there is a new brand in town.” Nestlé, meanwhile, has released a high-profile ad campaign of its own in Australia, spruiking DO BUSINESS BETTER Nescafé’s global 75th anniversary. The brand has CONSULTING | SYSTEM INTEGRATION also come on board as the primary sponsor of OUTSOURCING | NYSE:WIT Jessica Mauboy’s nationwide tour, Nescafé Pres- OVER 140, 000 EMPLOYEES | 54 COUNTRIES ents: Jessica Mauboy To The End Of The Earth. www.wipro.com/promax

Carte Noire is France’s number one coffee brand and is also the fastest growing instant coffee brand in the UK. Mondelez’s new Millicano wholebean instant is a premium offering that combines instant coffee and finely-milled beans.

November / December 2013 | Food&Drink business

Promax Applications Group Pty Ltd (A Wipro Group Company) Unit 1, 7 Sky Close, Shearwater Business Park, Taylors Beach, New South Wales 2316, Australia. Tel : +61 2 4982 2262, Fax : +61 2 4982 2286 ABN: 67 003 785 617 Regd. Office: Wipro Limited, Doddakannelli, Sarjapur Road, Bangalore - 560 035, India. Tel : +91 (80) 2844 0011, Fax : +91 (80) 2844 0256 www.wipro.com 20 exports An Aussie tipple Local drinks manufacturers are notching up export sales as the world’s emerging markets develop a palate for alcoholic beverages, and Australia builds its profile in more established markets. Selling beer in China CHINA MAY LAG behind Europe in terms of its and experienced. Consumers know what they beer drinking history, but the market has caught are buying,” Huang says. up quickly in recent years and beer is much more “Many companies are under the illusion that mature than the wine market, according to Mac- because their brand is imported, they are there- quarie University’s Dr Stephanie Huang. fore eligible to charge premium price. Instead In China, however, the market structure and they should be focusing on differentiating their consumers are different from the rest of the brand based on substantial facts.” world, and beer companies need to think differ- To be successful, Huang suggests Austra - ently to tap the opportunities, Huang says. lian beer brands need to build the credibility Chinese beer drinkers, for instance, rate of their product brands rather than focusing on taste as the most important factor to consider their corporate brands. when purchasing beer products. However, She says building local connections and inte- there is a relatively low level of brand loyalty grating product attributes with the overall brand among Chinese beer consumers, which is es - image could also help in this market. pecially significant considering there are According to Huang, foreign beer brands Foreign beer brands must compete more than 1500 local brands competing in the could also target the middle to low end of the with 1500 local brands in China. same market. market where most of the consumers are. “Interestingly, 20 per cent of young people The tricky thing, though, lies in differentiat- while in other areas people drink it at home alone aged 18 to 26 in Shanghai can’t name the beer ing your product from hundreds of others in or with their family or friends. brands they buy and that is a huge challenge for a that space, she says. Moreover, companies will For marketing purposes, the latter group is less foreign beer brand,” Huang says. need to take a regional approach in developing concerned about the social value of a beer brand Beer drinkers in China are also more willing to their strategy. and more concerned with product attributes such buy low cost beers, and tend not to want to pay a “There is no one Chinese market; it’s too big as taste, price, convenience and packaging. premium for a foreign brand, she says. to be one market. There are various regional “Generally speaking, Chinese beer drinkers It’s for this reason that many foreign beer markets which include consumers of different care more about taste, and that finding is rela- companies, including Fosters and Lion Na- interests and needs and they each behave in tively consistent across different regions,” she than, have come and gone in China. different ways.” says. The weight of other attributes like price, “The beer market in China is highly com - In some regions, she says, people prefer to convenience and brand image, varies from region petitive, crowded and noisy and it is savvy drink beer at social gatherings or with mates, to region, Huang says, Craft brewer heads to India SYDNEY BEER COMPANY Australian Brewery India and there is a great opportunity for a pre- (AB) is embarking on an export push on the back mium product in the emerging market. of successful negotiations to supply its craft beer “The big local brands such as Kingfisher are to India. launching premium variations to their existing Two Indian distributors have agreed to im- product for the burgeoning middle and upper port its beer, and Australian Brewery recently class,” he says. shipped its first 250 cases. “We aren’t the only ones to look at this market. The deal came about after company’s beer am- Nail Brewing sent over their Pale Ale and Stout bassador, David Ward, took part in an Austrade while Coopers sent their Pale Ale.” Australian craft beer promotion in Delhi. According to Ward, the response to all of AB’s Austrade India invited the boutique brewer, beers was positive, but the Pale Ale was the which was founded in 2010, to supply product most popular. for the promotion, and Ward went along to ex- “The distinctive passionfruit and mango aro- plain the ethos and passion behind it. ma, and flavour of galaxy hops gelled really well Premium craft beer is finding favour in India. Ward says beer consumption is thriving in with the Indian palate,” he says.

Food&Drink business | November / December 2013 exports 21 PRINT IT

Yellow Tail has One billion bottles wagged one of Yellow Tail billion times.

CASELLA WINES, THE maker of Australia’s highest selling export wine, Yellow Tail, has just rolled out its one billionth bottle since introducing the affordable brand in 2001. The family-owned winery in Yenda, near Griffith in NSW, exports the brand to more than 50 countries, and Yellow Tail is the number one imported wine in the US and Canada. The “ap- proachable” brand is also the fastest growing im- PACK IT ported wine in US market history. “One billion bottles means that more than 6 billion glasses of Yellow Tail wine have been enjoyed around the world,” MD John Casella says. According to Casella, Yellow Tail has managed to grow despite tight wine industry margins by giving consumers what they want. new products: a new range of pack- Company results show that the 2013 financial aged wine spritzers that come in year was the most successful year since the launch three infused flavours and sell of Yellow Tail in volume terms, with growth of under the brand Bondi Rd and a eight per cent over 2012. Casella says exports now bottled Sangria product. comprise 95 per cent of Yellow Tail’s sales. Casella says the new products The company also places a priority on innova- provide new ways and occasions tion, he says, and to this end, it has launched two for consumers to drink wine. TRACK IT US wine trade ready for a top drop THE US WINE trade is ready for a deeper explo- In other key findings, the quality to price ratio ration of Australian wines, according to new re- Australia offers is still a top attribute, but value at search commissioned by Wine Australia. all price levels is believed to be a key market driver. The survey of major US wine importers, dis- According to the survey, the US wine trade be- tributors and on- and off-premise wine trade pro- lieves that consumers today are looking for value fessionals found that regionality, diversity and in mid-priced wines where they feel more confi- premium price points consistently emerged as ar- dent they will find quality. eas of interest and opportunity for Australian The perception that Australia only produces wine in the US. “jammy” high alcohol wines is also changing, ac- The ‘Barriers in the United States Trade for cording to the research. The US trade is beginning Developing Premium Australian Wine Sales’ re- to perceive higher quality wines in a different style port was conducted by Wine Opinions and coming from Australia that the researchers be- funded by the Grape and Wine Research and De- lieve is matching up with changing tastes in the US velopment Corporation. among both the trade and consumers. The survey aimed to gain an understanding of Moreover, trade respondents had very high re - the thinking and motivations of the US wine gard for Australian high-end wines. They saw Aus- trade in respect to Australian wines, and to ex- tralia producing wines in styles unlike the “fruit plore barriers for developing premium Australian bombs” on which their reputation was built. wine sales in the US market. Angela Slade, Wine Australia’s regional director for North America, says the research indicates a positive shift in sentiment towards Australian Established in 1888 wine in the US market. “These results demonstrate a very exciting validation of the trade’s unanimous recognition CELEBRATING for the potential of Australia’s premium, regional offerings,” she says. 125 YEARS OF “This very important research further substanti- ates the growing interest, support and genuine feed- B2B SOLUTIONS back we have received directly from our network of importers, distributors, restaurateurs and retailers.” 1300 723 282 The perception of She says Wine Australia’s upcoming activities Australian wine is www.peacocks.com.au for the US market would be based on the key les- changing in the US. VIC • NSW • QLD • WA • NZ sons of this research project.

November / December 2013 | Food&Drink business 22 ingredients

New facility for Flavour Makers

AUSTRALIAN FOOD DEVELOPMENT and According to Chris Cester, the com- manufacturing company Flavour Makers says pany’s marketing coordinator, the the consolidation of five operations together into grand plan has always been to house a single state of the art facility in Braeside, Mel- all of the company’s operations under bourne, makes it a more responsive supplier to one roof. the local market. That vision has now been realised, The test kitchen is part of the The move takes in two production facilities and Flavour Makers has, in the pro- new culinary development and three warehouses and means the company cess, more than doubled its capacity, centre, a creative hub where can now do everything – R&D, liquid hot-fill, re- and the company has several new proj- the innovation takes place. torting and packaging – in one location. ects in the pipeline to take advantage Flavour Makers had been operating out of its of the new real estate, Cester says. original Woodlands Drive, Braeside site for over Only its dry blending facility remains separate “From a product development perspective, 10 years. That site housed the dry blending plant, to assist in the management of allergens, al- having R&D and processing under one roof batching facility and QA laboratory but when it though this is located just around the corner. means we can do pre-production trials literally reached capacity in 2007, four new sites were ac- At the brand new Braeside site, Flavour by going onto the factory floor,” Flavour Makers’ quired one by one to manage the growth. Makers now operates both pouch retort and commercial manager, Jodie Hooker, says. A second site was located just across the road hot fill processing facilities, and the consolida- “The biggest advantage of having the regula- and became the new home of Flavour Makers’ cor- tion into one space offers the company greater tory team, the quality team, product develop- porate head office and its R&D facilities, test kitch- breadth when it comes to sauce manufactur- ment team, and the marketers all under one roof ens and sensory testing capabilities. A new ware- ing capabilities. is speed to market.” house space was dedicated to finished goods “Having both hot-fill and retort capabilities Flavour Makers also manufactures two of its storage and despatch to free up raw materials stor- means not only can we offer our customers the own brands: Passage Foods, a well-known Indian age space. full gamut of flavour profiles, but also new and sauce range that is also sold in the US, and Cele- A third site was acquired in nearby Moorab- exciting product formats such as shelf stable brate Health, a clean label product range with bin to house a new liquid hot-fill plant to expand ready meals. This was the next logical step for strong health credentials that is sold in Coles. the company’s capabilities to both dry and wet us,” Cester says. “There is significant opportu- The company was established in 1993 by its products, and a new raw materials warehouse nity in high convenience ready meals that genu- owner, Adrian Cester, to create flavour ingredi- was acquired to house a much larger, dedicated inely taste great, and our chefs and technolo- ent systems that were superior to those currently batching facility. It also freed up space at the gists have produced some amazing results in available. Flavour Makers got its foothold in the Woodlands Drive site, allowing Flavour Makers this area.” poultry ingredients market, and though taste is to double its dry blending capacity, and enabled At the heart of the new facility is the culinary top of mind, its focus is on supplying ingredient even more robust allergen management pro- development centre (CDC), a creative hub where system solutions that combine functionality cesses in order to cater for emerging customer the innovation takes place. The CDC combines a with flavour. needs such as gluten-free certification. development laboratory, test kitchen, pilot pro- The company has also incorporated the sen- The fifth site was a new retort plant, which saw duction room, sensory evaluation facility, shelf sory nature of its field into the design of the new Flavour Makers expand into ready meals, liquid life evaluation room, as well as a modern pre- facility, which features recycled timbers and de- stocks, and low acid shelf stable culinary sauces. sentation kitchen and client meeting room. signer gardens.

Food&Drink business | November / December 2013 ingredients 23 Arla’s acid whey ingredient an award winner

ARLA FOODS INGREDIENTS’ Nutrilac protein, associated with other methods of disposing of it. which enables Greek yoghurt-makers to profit “Until now it has simply been accepted that from their acid whey waste stream, was named acid whey is an unavoidable waste product of Best Beverage Ingredient at drinktec. Greek yoghurt production, but not any more,” DuPont’s dairy culture The new process, which is based on the Dan- Carsten Valentin, senior director of functional ish ingredients company’s Nutrilac protein, al- milk proteins at Arla Foods Ingredients, says. keeps fungus at bay lows companies to use their acid whey to make “With the addition of our Nutrilac protein so- value-added dairy products, such as high pro- lution to the acid whey, what was once a waste DUPONT NUTRITION & HEALTH has intro - tein fermented beverages, whey smoothies and product is now a raw material that can be used to duced a new protective dairy culture that helps fermented desserts. create a high quality product with added value.” to control yeast and mould contamination of fer- For every 100kg of milk used to make tradi- Arla Foods Ingredients’ acid whey concept is mented dairy products. tional Greek yoghurt, only 33kg ends up used in also suitable for use in other applications According to the company, that is one of the the final product. The remaining two-thirds is where acid whey is a by-product, including greatest challenges facing dairy manufacturers. acid whey, a by-product that must be dealt with quark production. HOLDBAC YM Plus, part of the DuPont Danisco by the processor. The Beverage Innovation Awards were held at range, enables dairy manufacturers to control a Until now, Greek yoghurt-makers have tended the drinktec trade show in Munich in September. wider range of difficult fungal contaminants, in to offload acid whey into the animal feed and bio- particular spoilage yeast isolated from fermented fuels markets, according to Arla. Arla’s Nutrilac protein enables manufacturers dairy products like yoghurt, quark, twarog, white Arla’s Nutrilac protein, which is derived from to turn acid whey waste into dairy products. cheeses and sour cream. milk, instead enables The product also has clean label credentials, them to turn this acid according to DuPont, and is made from a blend of whey into a range of selected and patented strains of Propionibacteri- dairy products that can um and Lactobacillus to create a broader inhibi- be sold at a high margin tion spectrum. on consumer markets. According to the company, this not only con- The result is a fresh tributes to increased effectiveness in preventing tasting and nutritious spoilage from yeast and mould growth, it also product that is a good promotes longer-lasting, fresher-tasting ferment- source of calcium, pro- ed dairy products, which means companies can tein and essential amino expand their trading area further from the man- acids, according to Arla. ufacturing facility. In addition, using acid Also, it requires no change to the manufactur- whey in this way elimi- ing process as the cultures can be added to the nates the storage and milk together with the starter culture. transportation requirements

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food & drink companies 2013

SPONSORED BY 26 top 100 food & drink companies

Australia’s food & drink companies Food & Drink Business, in collaboration TOP with IBISWorld, presents this year’s top 10 0 100 food and beverage companies. ABBREVIATIONS O Overseas NL Non-listed P Publicly listed Pty Proprietary/private C Co-operative Sales down Sales up

Rank Sales up/down Type Sales $M Period Previous Sales $M At the helm FONTERRA CO-OP GROUP 1 P C 18773 07/13 19931 Theo Spierings, CEO A testing year for Fonterra FONTERRA IS SINGLE-HANDEDLY responsible turned into whole, skim and nutritional milk pow- “2013 was a year that tested for more than a third of the international dairy ders, cream, milk, whey proteins, cheeses, spreads, trade. It’s the world’s largest dairy exporter, and yoghurts and dairy dessert brands. our resilience” its milk tankers collect around 22 billion litres of Fonterra’s Australian consumer brands in- ated a precautionary recall of some of its whey pro- milk every year. clude Mainland, Bega, Western Star, Perfect Ital- tein concentrate. Though this turned out to be a In Australia, it operates 10 manufacturing sites, iano, and Connoisseur, and the company also false alarm, it cost the company, and the broader employs more than 2000 staff, collects 21 per cent operates in the ingredients and food services NZ dairy industry, dearly in market confidence. of the country’s milk, and processes 1.7 billion li- markets. “The precautionary recall challenged the co- tres of Australian milk a year. All of this milk is However, 2013 has been a tough year for the operative, but has also provided the opportunity global dairy giant. The company saw its overall to make a profound change for the better,” CEO revenue fall six per cent to $NZ18.7 billion and Theo Spierings said. the revenue of its integrated ANZ business fall 13 The company’s Australian business, which per cent to $NZ3.7 billion. faced heightened competition for lower milk vol- “2013 was a year that tested our resilience,” Fon- umes and a continuing margin squeeze on con- terra chairman John Wilson said at the company’s sumer brands, has also bitten into the company’s annual results announcement in September. profits, resulting in a local restructure. In April, “After a superb first six months for both pro- Fonterra appointed a new Australian MD, Judith duction and performance, our farmer sharehold- Swales, previously the managing director for ers endured a drought which in some regions was Australia at HJ Heinz, to oversee the changes. the worst in nearly 70 years.” In November, Fonterra acquired a six per cent Then, just as farms and farmer confidence shareholding in its close commercial partner, started to recover from the drought, Fonterra initi- Bega Cheese.

Food&Drink business | November / December 2013 SPONSORED BY 27

Rank Sales up/down Type Sales $M Period Previous Sales $M At the helm COCA-COLA AMATIL 2 P 5175 12/12 4868 Terry Davis, MD CCA gets back into beer

COCA-COLA AMATIL (CCA) manufactures, however, CCA has been barred from operating in sells and distributes beverages and food products. the Australian beer market under the conditions CCA’s drinks portfolio includes a number of major of the sale of its share in Pacific Beverages to SAB- brands under licence from the Coca-Cola Compa- Miller in 2011. ny and Beam Global. CCA is now gearing up for its re-entry into this CCA also manufactures and distributes pack- market from January 2014 with America’s largest aged fruit and vegetables, jams and sauces under selling craft beer, Samuel Adams beer, Molson brands like SPC, Goulburn Valley, and Ardmona. Coors premium beers, and Rekorderlig ciders. In the non-alcoholic space, CCA is one of the “With just over a month left until CCA re-en- largest bottlers of carbonated soft drinks and ters the beer and cider market in Australia, we CCA MD Terry Davis functional beverages in the Asia-Pacific region are ready to hit the ground running with a great and one of the world’s top five Coca-Cola bottlers. portfolio of beer and cider brands,” CCA MD “We are ready to hit the ground In the alcoholic beverages market, its portfolio Terry Davis said recently. includes the premium spirits range of Beam Davis will retire in August 2014 after almost 13 running with a great portfolio Global spirits and wines. For the last two years, years running the beverage group. of beer and cider brands” Rank Sales up/down Type Sales $M Period Previous Sales $M At the helm LION 3 O Pty 5068 09/12 5163 Stuart Irvine, CEO Lion gets crafty LION EMPLOYS 7500 people in Aus- timent and subdued discretionary spending in “We continue to be challenged tralia and New Zealand and operates our key geographies”. in the beer, spirits, wine, milk, dairy, He said in its dairy and drinks business, Lion also by low consumer sentiment and juice and soy beverages segments. faced heightened competition and margin pressure subdued discretionary spending The Japanese-owned alcohol in price-driven categories such as white milk, every- in our key geographies” and dairy giant makes well-known day cheese and juice, but performed well in higher brands including Tooheys, XXXX, value dairy segments such as dairy beverages and Hahn, Boag’s, Dairy Farmers, specialty cheese. The new addition to the James Squire portfolio, PURA, Yoplait, and COON. In Australia, the beer market also remained 150 Lashes Pale Ale, grew over 160 per cent, ac- In a trading update for the half challenging, and the company’s strategy has fo- cording to the company, and in October, Lion year ended 31 March 2013, Lion’s cused on gearing its portfolio to the higher added to the range with the release of a golden CEO Stuart Irvine said that like all growth segments of the market, such as craft English-style ale, The Constable Copper Ale. retail and consumer goods busi- beer. Irvine said Lion’s craft portfolio, which in- Lion also developed and launched a new in- nesses, Lion continued “to be cludes Little Creatures and James Squire, contin- home draught beer dispensing system called Tap challenged by low consumer sen- ued its impressive growth. King, which was the result of two years of R&D.

Disclaimer: All figures for the Top 100 were provided by IBISWorld. Food & Drink Business takes no responsibility for discrepancies in the figures provided in this report. Should you have any queries, please contact IBISWorld directly. November / December 2013 | Food&Drink business 28 top 100 food & drink companies SPONSORED BY barnco

Rank Sales up/down Type Sales $M Period Previous Sales $M At the helm JBS AUSTRALIA 4 O Pty 3235 12 /11 2774 Brent Eastwood, CEO JBS rides the export wave JBS AUSTRALIA IS a division of JBS SA, Brazil’s tor relations for JBS, said. largest multinational in the food sector, and the “One of the highlights world’s largest meat company. would be how Australia has In Australia, its operations include 11 meat increased its exports on a processing plants and six feedlots and its prod- very, very consistent basis ucts include beef, veal, mutton, lamb and offal into the Chinese market.” and by-products. Meat processing is a very JBS Australia has a number of brands, includ - energy-intensive industry and “Australia has increased its ing AMH, King Island Beef, Royal, Swift Premium in August, JBS announced an $8.7 million biogas Beef, Beef City Black, Friboi Beef, Tasmanian Pre- recovery project that will turn its waste water exports on a very, very consistent mium Beef, and Tasmanian Premium Lamb and into a new energy source at its Dinmore process- basis into the Chinese market” it exports to more than 50 countries worldwide. ing plant in Ipswich, Queensland. When announcing its second quarter global The company is currently in the process of in- food relief agency Foodbank to launch a major results in August, JBS highlighted the perfor- stalling pre-treatment equipment and covered new beef initiative to provide welfare agencies mance of Australian exports. anaerobic lagoon technology, with completion of with more than 130 tonnes of sausages every “Australia is in a positive moment; it is doing works planned for March 2014. year. JBS has donated cattle and will also donate really well,” Jerry O’Callaghan, director of inves- Also in August, JBS Australia signed on with a regular supply of trim.

Rank Sales up/down Type Sales $M Period Previous Sales $M At the helm BIDVEST 5 O P 2495 06/12 2411 Rachel Ruggiero, CEO Bidvest builds on its business BIDVEST IS AUSTRALIA’S largest broadline The South African-owned company distributes “Bidvest Australia achieved distributor, supplying wholesale food, hospitali- major national and international brands, as well as ty equipment and supplies to the foodservice, a selective range of its own-brand products. pleasing sales and trading catering and leisure markets. Bidvest Australia’s product range includes profit growth” over 56,000 foodservice products spanning dry, chilled and frozen food, as well as cleaning and results, a Bidvest spokesperson said Bidvest packaging items, and it also supplies around 3000 Australia had “achieved pleasing sales and trad- hospitality products such as glassware, crockery, ing profit growth”. cutlery, kitchenware, tableware and commercial ca- “Results were creditable given the slowing tering equipment. mining resource boom, rising unemployment Its fresh food offering includes between 400 and zero food inflation,” the spokesperson said. and 600 lines of fresh fruit, vegetables and herbs, According to Bidvest, its Australian Fresh di- eggs and pre-packaged fresh food tray options, vision achieved a “pleasing profit turnaround”. depending on the season, and the company also In September, the company acquired Classic provides logistics solutions to quick service res- Meats, a Perth-based foodservice meat process- taurants and large-scale food providers. ing business, and Bidvest also said it would con- In June, when announcing its annual global tinue to explore acquisition opportunities.

Food&Drink business | November / December 2013

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Rank Sales up/down Type Sales $M Period Previous Sales $M At the helm MURRAY GOULBURN CO-OP 6 P C 2377 06/13 2361 Gary Helou, MD Murray Goulburn moves into fresh milk MURRAY GOULBURN CO-OPERATIVE is 100 The company makes consumer dairy prod- “MG delivered a solid per cent controlled by Australian dairy farmers ucts like milk, cheese, butter and its flagship and is a major exporter of dairy products. It has six brand is Devondale. Earlier this year, MG an- performance in 2012/13 despite processing sites in Victoria and another in Tasma- nounced a major change in direction: its entry tough seasonal conditions, lower nia where it processes three billion litres of milk a into the daily pasteurised milk market, a move dairy ingredients prices and year – 35 per cent of the nation’s milk supply. that will result in the relaunch of the Devondale brand across all product categories. The an- a high Australian dollar” nouncement was instigated by a 10-year contract with Coles to supply and produce its private label ingredients prices and a high Australian dollar – milk from the middle of 2014. To achieve this, MG all factors which were beyond our control,” man- is investing $120 million in the construction of aging director Gary Helou said. two new milk processing plants in Melbourne “Australian dairy is well placed to capitalise and Sydney. on the enormous growth opportunities that lie Its proposed investment comes despite diffi- on our doorstep and as the largest Australian- cult conditions in the Australian dairy industry. owned food business, MG is uniquely placed to “MG delivered a solid performance in 2012/13 lead the Australian dairy industry back to profit- despite tough seasonal conditions, lower dairy able growth.”

Rank Sales up/down Type Sales $M Period Previous Sales $M At the helm NESTLE 7 O P 2204 12/12 2449 Trevor Clayton, MD Nestlé milks Milo’s success

NESTLÉ OCEANIA IS a wholly owned subsidiary growth in developed markets, with good per- source all the cocoa of the Swiss-based FMCG giant Nestlé SA. The formances also from Milo in Australia,” for its retail confec- company is headquartered in Sydney and employs a spokesperson said. tionery business from more than 5000 people in over 70 offices, factories Milo saw a two per cent growth in volumes in sustainable UTZ cer- and distribution centres across the region. the first half of 2013, according to the Nielsen tified farms. In No- Its product range includes processed milks, RetailScan data, and Nestle Australia said the vember, Nestlé SA sold infant foods, coffees and other instant drinks, key drivers for the jump included communica- off its Jenny Craig yoghurt and other dairy products, culinary tion with a strong nutritional message, in-store business in North products, chocolate and sugar confectionery, visibility and support. America, Australia, healthcare and sports nutrition, and pet foods In other local moves, the company this year New Zealand and the and accessories. announced a global plan to place quick re- Pacific Islands. Nestlé's key food and drink brands, however, sponse (QR) codes on all its packaging to give are Milo, Nescafé, Kit Kat, Uncle Tobys, Maggi, Pu- consumers information about the nutritional “Kit Kat and Nescafé Dolce Gusto rina and NAN toddler milk, and in August, at its profile and environmental and social impacts led the growth in developed half year results, Nestle SA outlined which of these of its products. products had been most successful in the region. Around the same time, Nestlé also became the markets, with good performances “Kit Kat and Nescafé Dolce Gusto led the first major chocolate manufacturer in Australia to also from Milo in Australia”

Food&Drink business | November / December 2013 TVL Closures 32 top 100 food & drink companies SPONSORED BY barnco

Rank Sales up/down Type Sales $M Period Previous Sales $M At the helm TEYS AUSTRALIA 8 Pty 2196 06/13 1876 Brad Teys, CEO Teys lightens its carbon footprint TEYS AUSTRALIA IS the second largest meat working with its strategic partners to deliver processor and exporter in Australia and oper- product innovation. ates six beef processing plants in Queensland, “Our suppliers benefit from our innovative NSW and South Australia which jointly produce sales and marketing strategies as we make a con- around 270,000 tonnes of beef each year. scious choice to integrate our suppliers into our The company also has two cattle feedlots and value chains.” its value-added meat products are produced in This year, Teys Australia received more than Brisbane and Wagga Wagga under the name of $7 million from the federal government’s $200 Teys Australia Food Solutions. million Clean Technology Food and Foundries According to its CEO, Brad Teys, the compa- Investment Program to cut energy costs and re- ny’s operating assets are modern, sustainable, duce carbon emissions at three sites. Its Rock- well maintained, and strategically located hampton facility was allocated $4.17 million, and across the eastern seaboard of Australia. its Beenleigh and Wagga Wagga plants received “We are committed to minimise “We are also committed to continually im- $2.82 million and $227,000 respectively. our use of natural resources proving efficiencies in our plants building on a “We are committed to minimise our use of foundation of operational excellence,” he said. natural resources and impacts on the neighbour- and impacts on the Teys also said the company is committed to hoods we share,” Teys said. neighbourhoods we share”

Rank Sales up/down Type Sales $M Period Previous Sales $M At the helm GOODMAN FIELDER 9 P 2172 06/13 2223 Chris Delaney, CEO Goodman Fielder tightens its belt GOODMAN FIELDER PRO-PRO Its brand portfolio includes Meadow Lea, “We are continuing to invest DUCES and markets a wide Praise, White Wings, Pampas, Mighty Soft, Hel- range of packaged goods, ga’s, Vogel’s (under licence), and Wonder White. in our other facilities to ensure breads, condiments and sauc- The company has undergone significant re- we continue to reliably supply es, which are sold in over 30,000 structuring in recent years, and in February, our customers with fresh, retail and food service outlets. Goodman Fielder sold its NZ flour milling busi- The company also operates ness to Japanese flour group, Nisshin Flour Mill- quality products” around 48 processing plants, ing. The move follows the sale of its commercial and its operations include fresh oils business in October 2012. “While the bakery is expected to close by No- baking of packaged loaf bread, Goodman Fielder has also closed several op- vember 2013, we are continuing to invest in our bread rolls, chilled bread and erations across the country in recent years as other facilities to ensure we continue to reliably other baked products. It also part of an ongoing project to improve manufac- supply our customers with fresh, quality prod- makes retail home ingredients turing efficiency across its baking network to ucts,” CEO Chris Delaney said when announc- like margarine and spreads, create a more sustainable business and boost ing the closure. flour, cooking oil, cake mixes, earnings growth. In August, the company an- In June, Goodman Fielder announced a new biscuits, dressings, mayon- nounced the closure of its bakery in the Victorian private label bread supply contract with Coles, naise and frozen pastry. city of Ballarat, resulting in the loss of 34 jobs. extending a previous contract with the retailer.

Food&Drink business | November / December 2013

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Rank Sales up/down Type Sales $M Period Previous Sales $M At the helm INGHAMS ENTERPRISES 10 O Pty 2100 06/12 1840 Kevin McBain, CEO Inghams changes hands INGHAMS ENTERPRISES IS the largest poul- The Ingham business was founded in 1918 in “My decision marks the next try processor in Australia and its operations ex- Sydney’s south-west by Walter Ingham. In March, phase for the successful ongoing tend across fully integrated farming, primary Bob Ingham, the long-standing and sole share- and further processing operations. holder of Inghams Enterprises, sold the 95-year- development of the company” The company operates in more than 100 loca- old family business to US-based private equity tions across Australia and New Zealand and it group TPG Capital for $850 million. he put the business up for sale in June last year. has 11 stock feed mills, 10 primary poultry pro - “My decision marks the next phase for the In March, Inghams also sacked five workers for duction plants, and nine further processing successful ongoing development of the company cruelty and installed video monitoring at its plants. It also has a diversified stockfeed busi- and is one that I, as sole shareholder, have con- plant in Tahmoor, Sydney’s south-west after se- ness, and a piggery operation. sidered for a number of years,” Ingham said when cretly filmed footage aired on TV.

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Rank Sales up/down Type Sales $M Period Previous Sales $M Rank Sales up/down Type Sales $M Period Previous Sales $M

FOOD INVESTMENTS/GEORGE WESTON FOODS ASAHI HOLDINGS 11 17 O Pty 2065 08/12 2223 O Pty 1560 12/12 979 Food Investments is part of the UK-based Associated British Foods. It is the Asahi, the Australian subsidiary of Japan’s largest brewer, encompasses Schweppes controlling entity behind a number of other companies, although it makes most of its Australia, the former juice and water divisions of P&N Beverages, and water bottler revenue through its subsidiary George Weston Foods, which manufactures a range Mountain H2O. It operates eight manufacturing sites in Australia and recently of products, including bread, baking products, small goods, cakes and ingredients. rebranded Independent Distillers, the Australian liquor business it bought in 2012, It produces around 7.8 million loaves of bread and 338,000 cake pieces every week to Asahi Premium Beverages to integrate its business platforms here. and is the largest manufacturer of smallgoods in Australia. This year it completed a two-year, $9 million packaging, handling and distribution upgrade at its Tip Top PFD FOOD SERVICES Bakeries factory in Springwood. 18 Pty 1350 06/13 1312 MONDELEZ AUSTRALIA PFD Food Services distributes fresh and frozen foods, and dry goods from major 12 manufacturers including Mondelez, Nestlé and Goodman Fielder to food services O Pty 2034 12/12 1942 businesses. The company has 61 branches and this year it acquired Northern Territory Mondelez Australia, formerly Kraft Australia, is a subsidiary of the world’s second foodservice distributor Kosmos Foods Wholesalers. largest food company, US-based Mondelez International. It encompasses the former Cadbury Australia and its brands include Cadbury Dairy Milk, Vegemite AUSTRALIAN CONSOLIDATED FOOD INVESTMENTS and Philadelphia Cream Cheese. In February, Mondelez opened the first stage of 19 Australia’s largest food R&D facility, which is co-located at its manufacturing facility O Pty 1320 06/13 851 in Ringwood, Victoria. Australian Consolidated Food Investment is the owner of Primo Smallgoods, the largest producer of ham, bacon and smallgoods in Australia, catering for both SUCROGEN 13 the domestic and export markets. Australian Consolidated Food Investment is O P 1820 12/12 1856 owned by Asian private equity firm, Affinity Equity Partners.

Sucrogen is owned by Singaporean agribusiness Wilmar International, and it is the MARS largest raw sugar producer and refiner in Australia and the eighth largest producer 20 globally. Sucrogen, which started life as CSR Ltd, now owns seven sugar mills and its O Pty 1315 12/12 1311 operations include cane growing, sugar refining and ethanol and cogeneration through its use of sugar by-products. Its principal product is raw sugar and every year it produces Mars Australia has seven manufacturing sites across the country. Its leading 2.1 million tonnes in total. brands include Mars, Twix, Pedigree, Whiskas, Uncle Ben’s and Masterfoods. In March the company announced it would invest $52 million into the expansion of its Ballarat plant in a bid to better capitalise on export markets. FOSTER’S GROUP 14 O Pty 1754 03/12 2565 BAIADA POULTRY 21 Foster’s is Australia’s second largest brewer and is owned by the world’s largest Pty 1285 06/12 1250 brewing group SABMiller. Its portfolio includes VB, Cascade, Crown Lager, Carlton Draught, as well as three of the country’s most popular ciders Bulmers, Strongbow Privately owned Baiada, Australia’s second largest poultry producer, is a fully- and Mercury. In March, Victoria Bitter, Foster’s flagship beer, reclaimed the number integrated poultry operation and its key brands are Steggles and Lilydale Free Range one spot as Australia’s best selling beer. Chicken. This year it was one of a handful of poultry organisations that copped a hefty fine in the federal court over ‘free to roam’ claims. TREASURY WINE ESTATES 15 FRITO-LAY AUSTRALIA/PEPSICO AUSTRALIA P 1731 06/13 1717 22 O Pty 1182 12/12 1187 Treasury Wine Estates (TWE), Foster’s spun off wine business, has over 11,000 hectares of vineyards, and sales totalling over 33 million cases of wine annually. Frito-Lay Australia is a subsidiary of US beverage and food giant PepsiCo and Its portfolio includes brands such as Beringer, Chateau St Jean, Lindemans, Wolf incorporates PepsiCo Australia. It derives most of its revenue from the manufacture, Blass, Penfold and Rosemount. In July this year, the company announced that it import and wholesaling of snack foods, oat-based products and beverages. Its snack would destroy more than $35 million of stock in the US as part of a broader food brands include Nobby’s, Smith’s, Doritos, Sakata and Pepsi. $160 million write-down of excess US inventory. SIMPLOT AUSTRALIA UNILEVER AUSTRALIA 23 16 O Pty 1166 09/12 1167 O Pty 1566 12/12 1603 Simplot Australia is part of US-based Simplot. In this country, it operates in the food Unilever Australia’s portfolio includes Flora, Bertolli, Lipton and Bushells, as well retail and food service sector and operates a total of eight plants. Key brands include as a number of personal care and household brands. In September, Unilever Edgell, John West, Birdseye, Lean Cuisine and Leggo’s. The company this year announced its acquisition of T2, an Australian tea retailer that sells teas and reviewed the viability of its vegetable processing operations at Bathurst, NSW and tea wares through its 40 stores as well as through cafés and restaurants. Devonport, Tasmania. These will remain open for now but will be subject to cut-backs.

Food&Drink business | November / December 2013 SPONSORED BY barnco 37

Rank Sales up/down Type Sales $M Period Previous Sales $M Rank Sales up/down Type Sales $M Period Previous Sales $M MANILDRA GROUP THOMAS FOODS INTERNATIONAL 24 26 Pty 1150 06/13 1100 Pty 1050 06/13 1075 Manildra Group processes around one million tonnes of wheat per annum. Family-owned meat processing company, Thomas Foods International is one of It supplies flour, pre-mixes, starches, proteins, glucose, fats and oils and sugar Australia’s top five meat processors, exporting to over 80 countries worldwide from and its retail division produces The Healthy Baker flour brand. The Manildra Group two plants. In September it acquired South Australian potato processor Mondello is headquartered in Sydney, but also has facilities in Queensland, Victoria, Tasmania, Farms, which went into receivership in March. South Australia, Western Australia and in the USA, Indonesia and Thailand. BEGA CHEESE SUNRICE 27 25 P 1019 06/13 942 P 1069 04/13 1001 Bega is a top selling cheese brand in Australia and Bega regularly sells over one SunRice is one of the world’s largest branded rice food companies, employing million packs of cheese per day across its brands, which are made at its two 2100 people in 60 countries. Its local operations are anchored in regional New manufacturing sites at Bega NSW and Strathmerton in Victoria. Bega makes natural, South Wales and include processing facilities that mill and pack rice and rice flour, processed and kids snack products. It exports over 60 million units of cheese per year and produce rice cakes and convenience rice-based products. The company owns to around 40 countries, and some of these products are tailored to suit particular 30 brands and it has processing, packing and value added food plants across international requirements. This year, Bega Cheese announced a takeover offer for Australia, the USA, the Middle East and Papua New Guinea. Warrnambool Cheese and Butter (WCB).

November / December 2013 | Food&Drink business 38 top 100 food & drink companies

Rank Sales up/down Type Sales $M Period Previous Sales $M Rank Sales up/down Type Sales $M Period Previous Sales $M ARNOTT’S BISCUITS DIAGEO AUSTRALIA 28 35 O Pty 996 07/12 1031 O P 545 06/12 566

Arnott’s Biscuits is a subsidiary of the Campbell’s Soup Company and is Australia’s Diageo Australia distills, bottles, markets and sells alcoholic beverages. Its brands largest biscuit producer and its second largest supplier of snack foods. It employs include Johnnie Walker and Smirnoff. It employs more than 500 people and operates 2800 people in Australia and has several thousand employees elsewhere in the a manufacturing facility in Huntingwood in Western Australia, and the Bundaberg Rum Asia-Pacific region. Its best-known brands include Tim Tams, Jatz and Shapes. distillery in Queensland.

PARMALAT AUSTRALIA PREMIUM WINE BRANDS 29 36 O P 949 12/12 906 O Pty 509 06/12 512 Parmalat Australia, a subsidiary of French dairy company Lactalis, has seven Premium Wine Brands, formerly Pernod Ricard Pacific, is a wholly owned subsidiary and manufacturing sites, most of which are in Queensland. The company processes and regional entity of wine and spirits producer Pernod Ricard. Key brands include Jacob’s distributes milk and cream throughout Queensland, as well as producing branded Creek, Wyndham Estate, Absolut Vodka, Malibu and Beefeater. products for Australian and export markets such as Parmalat, Pauls and Vaalia. WARRNAMBOOL CHEESE & BUTTER H J HEINZ COMPANY AUSTRALIA 37 30 P 499 06/13 498 O Pty 836 04/13 870 Australian-owned Warrnambool Cheese & Butter (WCB) is a major producer of dairy Heinz Australia makes a range of products including baby food, sauces, fruit juice and commodities for both domestic and export markets. WCB is one of the largest employers canned foods. The company employs more than 1200 people in Australia and in south west Victoria, with about 480 full-time employees. It sources approximately 900 operates manufacturing plants in NSW, Queensland, and Victoria. In October it million litres of milk annually. This year it has attracted takeover offers from Bega Cheese, announced it would close its Mill Park Golden Circle beverage manufacturing plant Murray Goulburn, and Canadian dairy company Saputo. and would instead ramp up manufacturing at its Northgate beverage plant. MORAITIS GROUP COSTA 38 31 Pty 493 06/12 527 Pty 755 06/13 610 Moraitis Group is a leading fruit and vegetable wholesaler in Australia and a fully The Costa Group is Australia’s largest private producer, marketer and exporter of integrated supplier of fresh fruits and vegetables to supermarkets and independent premium quality fresh fruit and vegetables. It is based in Victoria and it employs fruit markets across the country. In April 2013, Hong-Kong listed Chevalier Group more than 7000 people throughout Australia across 54 sites. US private equity bought a 70 per cent stake in the company. Its original owners, the Moraitis family firm Paine & Partners holds a 50 per cent stake in the business. Costa has a joint and private equity group Catalyst, between them own the remaining share. venture with US berry company Driscoll Strawberry Associates which enables it to provide berries all year round in Australia. KELLOGG AUSTRALIA HOLDINGS 39 O Pty 475 12/12 480 NIPPON MEAT 32 The wholly-owned subsidiary of US cereal giant Kellogg Company manufactures O Pty 675 03/13 685 and distributes a number of well-known breakfast cereal and snack food brands, Nippon Meat Packers Australia is a wholly owned subsidiary of the Japanese Nippon including Special K, Raisin Bran, Cocoa Pops and Corn Flakes. It employs around Meat Packers company. It operates three beef processing plants, a feedlot and a 700 people and has three manufacturing facilities in NSW, however, in November tannery, and exports to more than 34 countries. Its products include chilled and frozen its parent announced plans to reduce its global headcount by seven per cent as grainfed and free range beef, special meat cuts, manufacturing beef and offals. part of a four-year efficiency and effectiveness program.

TURNERS & GROWERS KILCOY PASTORAL 33 40 P 671 12/12 650 O P 475 06/13 421

The fresh produce distributor and exporter has operations in New Zealand and The Queensland-based meat processor specialises in grain-fed Australian beef Australia, as well as the US, Hong Kong, Belgium, the Cayman Islands, Chile and the which it sells in the domestic and export markets. The company employs around UK. It is headquartered in Auckland, has 41,000m2 of storage facilities and its global 750 staff and is headquartered in Kilcoy. distribution network covers sales, marketing, and logistics. KAILIS BROS BRIGHT FOOD GROUP 41 34 Pty 462 06/12 429 — O Pty 563 12/12 0 Kailis Bros is a family-owned seafood business. It is based in Perth and employs China’s Bright Food Group recently entered the Australian market with the acquisition over 450 people. It operates at all levels of the seafood supply chain from of 75 per cent of Manassen Foods, one of Australia’s leading grocery importers. Its catching, procuring, processing and marketing to exporting, importing and portfolio spans dry groceries, confectionery, biscuits and cakes and frozen foods and trading. Its subsidiary AJ Langford is Western Australia’s only fish auction house, its key brands include Ryvita, Jelly Belly, Bovril and Carr’s Water Crackers. and it represents over 400 independent fishermen.

Food&Drink business | November / December 2013 SPONSORED BY barnco 39

Rank Sales up/down Type Sales $M Period Previous Sales $M Rank Sales up/down Type Sales $M Period Previous Sales $M SANGER AUSTRALIA MCCAIN FOODS 42 44 Pty 461 06/13 395 O Pty 408 06/11 400

The meat export trading company predominantly supplies beef to international McCain Foods is the local arm of Canadian-owned food giant and its frozen product buyers but it also sells other types of meat and meat products such as veal, mutton, range includes vegetables, chips, pizza, fruit and ready meals. In Australia, McCain is lamb, pork, kangaroo, chicken and associated by-products. Sanger has 23 headquartered at Ballarat in Victoria. Its Australian business incorporates plants in employees in Australia and its extended network of suppliers provides it with year Victoria, Tasmania and South Australia. In October, the company said it would close its round access to meat from different regions. factory in Penola, South Australia, resulting in 59 redundancies.

ACCOLADE WINES MACKAY SUGAR 43 45 O Pty 415 06/13 439 P 408 05/13 300 Accolade Wines operates wineries across Australia and its brands include Hardys, Mackay Sugar is Australia’s second largest sugar milling company. It operates four sugar Banrock Station, Kumala and Omni. The group operates wineries in Tasmania, mills and produces around 800,000 tonnes of raw sugar annually for domestic and Victoria, South Australia and Western Australia, and is majority owned by private export markets. In April Mackay Sugar opened a $120 million cogeneration plant that equity firm Champ, and its former owner Constellation retains a 20 per cent share. uses processing waste from its sugar milling operations to sell renewable energy back Treasury Wine Estates (TWE) bottles Accolade’s wine in Australia and in return, into the national electricity grid. At full capacity, the plant can produce enough renewable Accolade bottles for TWE in the UK. energy to power about 30 per cent of the Queensland town of Mackay.

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November / December 2013 | Food&Drink business 40 top 100 food & drink companies

Rank Sales up/down Type Sales $M Period Previous Sales $M Rank Sales up/down Type Sales $M Period Previous Sales $M SANITARIUM HEALTH FOOD COMPANY CASELLA WINES 46 52 P 395 06/13 364 Pty 344 06/12 413

Sanitarium is a not-for-profit organisation owned by the Seventh-day Adventist Church. Casella Wines is Australia’s largest family-owned winery and one of the nation’s It produces a large range of breakfast cereals, including Weet-Bix, its flagship product, largest exporters. It is the producer of the Yellow Tail wine brand, which accounts which remains a top seller in the Australian and New Zealand breakfast cereal market, for 20 per cent of all bottled wine products leaving Australia. Casella recently built and the Up&Go liquid breakfast product. It also makes dairy- and meat-alternative a state-of-the-art brewery in Griffith, NSW and in October it produced its one billionth vegetarian products. The company employs more than 1600 staff across bottle of Yellow Tail since introducing the brand in 2001. 12 manufacturing and sales sites in Australia and New Zealand. BINDAREE BEEF NORCO CO-OP 53 47 Pty 331 06/12 306 C 370 06/13 355 Bindaree Beef is one of Australia’s largest meat processors; its processing plant at Inverell in Norco is a farmer-owned co-operative and its operations span animal feed products, northern NSW has the capacity to process 1300 cattle a day and employs over 600 people rural stores and a food division, which manufactures and supplies dairy and fruit from the surrounding region. The company is poised to embark on a $46 million biogas juice products, mostly for contract manufacturing, but also under the Norco and system installation after receiving a $23 million federal grant to reduce its emissions. Nimbin Natural Cheese retail brands. Norco has three production facilities in Australia. This year Norco also won a five-year private label milk supply contract with RIVALEA AUSTRALIA Coles which will commence from July 2014. 54 O Pty 315 12/12 313 FLETCHER INTERNATIONAL EXPORTS 48 Rivalea Australia is one of Australia’s largest integrated pork producers, and it runs Pty 368 06/13 351 farming, processing and distribution operations across numerous sites. Its pork brands, Murray Valley Pork, Family Chef and High Country Pork, are sold across Australia. Fletcher International Exports is an integrated processor and exporter of lamb and sheep meat products. It operates processing facilities in Dubbo, NSW and CRAIG MOSTYN GROUP Albany, WA. The plants have a combined processing capacity of over 4.5 million 55 head per year. The company sells 100 per cent Halal meat in more than 70 Pty 314 06/13 300 markets around the world and employs over 1350 staff across its operations. Craig Mostyn produces fresh pork, seafood, protein meal, tallow, cooking oils and fruit products at its facilities in Western Australia and Tasmania, and it also recently SCALZO FOOD INDUSTRIES 49 opened a $10 million red meat rendering facility in Hazelmere, WA. Pty 357 06/13 327 TOP CUT FOODS Scalzo manufactures and distributes food ingredients such as nuts, vegetables, fruit, 56 seeds, grains, snacks, starches and dehydrated meats. It develops value-added O Pty 311 09/12 305 products and customised ingredients for further processing or retail-ready products. Top Cut Foods manufactures and distributes fresh meat, and ready to serve products such as finger food, soups and sauces to food service outlets. The company’s main KERRY INGREDIENTS manufacturing and coldstore facilities are located in Melbourne and on the Gold Coast, 50 with distribution centres in Sydney, Newcastle and Adelaide. O Pty 356 12 /11 327 Kerry Ingredients is part of the Ireland-based Kerry Group, which supplies 140 GENERAL MILLS HOLDING (AUSTRALIA) countries worldwide and has manufacturing operations in 25 countries. Its Australian 57 business manufactures and supplies bakery products and food ingredients with a O Pty 303 04/12 300 focus on savoury ingredients, sweet ingredients, food coating systems, nutritional systems and speciality protein applications. The company has manufacturing plants General Mills Australia sells a portfolio of brands including Betty Crocker baking in NSW, Queensland and Victoria and employs around 790 staff. mixes and desserts, Latina fresh pasta and sauce and Old El Paso Mexican foods. It also has a bakery and food service division that specialises in frozen pastries and it operates out of sites in Sydney, Melbourne and New Zealand. MIDFIELD MEAT INTERNATIONAL 51 Pty 345 06/12 507 FINASUCRE/BUNDABERG SUGAR 58 Midfield Meat International is a 100 per cent Australian-owned company located in O Pty 271 03/13 279 Warrnambool, in Victoria’s Great South Coast region. It processes beef, lamb, veal, mutton and their by-products for the domestic and export market, and its facility Queensland-based Bundaberg Sugar, a subsidiary of Belgium-based Finasucre, is is one of the largest capacity meat processing plants in Australia, with a throughput Australia’s largest cane grower and a major raw sugar miller, a regional sugar refiner in excess of 1.6 million beef and small stock annually. It has also developed the and a marketer of sugar and related products. The company is one of three major world’s only industrial and commercial robotic lamb cutter. suppliers to Coca-Cola, but in September it lost part of its long term contract with the soft drink company.

Food&Drink business | November / December 2013 SPONSORED BY barnco 41

Rank Sales up/down Type Sales $M Period Previous Sales $M Rank Sales up/down Type Sales $M Period Previous Sales $M MSF SUGAR WRIGLEY AUSTRALIA 59 61 O P 270 12/12 266 O Pty 248 12/12 239

MSF Sugar is an integrated grower, processor, marketer and exporter of raw sugar. Wrigley is a subsidiary of Mars, and it has two operations in Australia and produces a The company, which is based in Gordonvale in Far North Queensland, is Australia’s number of well-known chewing gum and confectionery brands, including Extra, Juicy third largest sugar milling company and its major milling assets are located in the Fruit, Hubba Bubba, and Eclipse mints, which it produces exclusively for Australia, New Gordonvale region and the Fraser Coast region in south eastern Queensland. Zealand and the Pacific Islands at its Asquith factory. Its confectionery brands include It operates four sugar mills, which between them produce around 550,000 tonnes Skittles, Starburst, Altoids and Life Savers. of raw sugar per annum. BEAM GLOBAL AUSTRALIA M C HERD 62 60 Pty O 247 12/12 313 Pty 254 06/13 229 Beam Global Australia is a subsidiary of the world’s fourth largest premium spirits The company is a family-owned meat processing facility, supplying Australian lamb company Beam and it generates most of its income from liquor wholesaling. The and beef to the local and overseas markets. M C Herd is located in Geelong in company has a long-term agreement with Coca-Cola Amatil (CCA), which sells Victoria’s Western District, and is a parent company of a group of operators, including and distributes premium Beam spirits including Jim Beam, Canadian Club, Makers abattoir and smallgoods manufacturer, Challenge Meats. Its operations include the Mark and The Macallan. CCA also manufactures and distributes Beam’s Jim Beam value adding of pork, red meat, chicken and other specialised items for large & Cola RTD. multinational food processors and food service distributors.

November / December 2013 | Food&Drink business 42 top 100 food & drink companies

Rank Sales up/down Type Sales $M Period Previous Sales $M Rank Sales up/down Type Sales $M Period Previous Sales $M PATTIES FOODS SUNNY QUEEN FARMS 63 65 P 245 06/13 236 Pty 227 07/12 210

Patties is the market leader in the retail frozen savoury segment, which includes Sunny Queen Farms is a farmer-owned business that offers a wide range of fresh eggs pies, sausage rolls, pasties and party goods, and number two in the retail frozen and egg products for retail. Its subsidiary, Sunny Queen Fresh, produces omelettes and dessert segment. Its brand portfolio includes Four’N Twenty, Patties, Herbert Adams, other egg products for the food service industry. Its farms are located in Queensland, Nanna’s, Creative Gourmet and Chefs Pride. This year, however, Patties reported a NSW and Victoria. In May it announced plans to build a new $13 million egg production sharp fall in profit following a write-down on its frozen fruit business. facility at its Carole Park, Brisbane site.

FRESHMAX 64 CANTARELLA BROS Pty 242 03/11 212 66 Pty 219 06/13 206 Australasian fresh produce marketer Freshmax is involved in sales, marketing and distribution activities across a number of regions in Australia and New Zealand. Its Cantarella Bros is a coffee company and importer of European food products for the operations span ripening and value-adding services, sales, import, export and Australian retail and food service markets. It owns the Vittoria, Aurora and Delta distribution. The company has grown quickly in recent years through a number of coffee brands and Santa Vittoria mineral water brand, and is the exclusive acquisitions, including that of Integrated Produce Group (IPG) in 2012. distributor of Jarlsberg cheese, Twinings tea and Ruffino wines. It also exports products to a number of other countries, including Italy, USA, Canada, Singapore, Japan and China.

Food&Drink business | November / December 2013 SPONSORED BY barnco 43

Rank Sales up/down Type Sales $M Period Previous Sales $M Rank Sales up/down Type Sales $M Period Previous Sales $M AUSTRALIAN VINTAGE NORTHERN CO-OP MEAT 67 69 P 215 06/13 230 C 210 06/13 170

Australian Vintage is a fully-integrated wine business and one of the largest vineyard The meat co-operative is located in the north east corner of NSW and it has over owners and managers in Australia. Its brands include McGuigan, Miranda, and 1500 producers and operator members. Its plants are located in Casino and Tempus Two. It crushes nine per cent of Australia’s total annual grape production to Booyong in northern New South Wales and it processes beef, veal and pork and produce both branded and private label wine. The company’s vineyards and grape supplies product to the domestic and international markets, including the Americas, supply spans the Hunter and Barossa Valleys; the Murray-Darling, Langhorne Creek Japan, Korea and Europe. and Limestone Coast regions; as well as Griffith, Cowra and the Adelaide Hills. MOET HENNESSY AUSTRALIA BROWN-FORMAN AUSTRALIA 70 68 O Pty 207 12/12 178 O Pty 215 04/12 193 Moet Hennessy Australia is part of the luxury conglomerate, Louis Vuitton Moet Liquor wholesaler Brown-Forman Australia is a subsidiary of US-based Brown-Forman. Hennessy, and it imports and distributes premium wine and liquor brands such It has offices and warehouse facilities in most states. Its best-known brands include as Moet & Chandon, Dom Perignon, Veuve Clicquot, Krug, Chandon, Hennessy Jack Daniels, the world’s best selling premium whiskey, the super premium cognacs and Glenmorangie scotch whiskies. It is headquartered in Roseberry, Gentleman Jack, as well as Single Barrel, Southern Comfort, Chambord, Finlandia NSW, and employs around 80 people. Vodka, Herradura, El Jimador, Tuaca, Woodford Reserve and Gekkiekan. Brown- Forman operates in 135 countries and Australia is its third largest market. 195wx135 Airpower 25/10/13 3:16 PM Page 1 AIR POWER FITS THE BILL Reduce operating costs and save indJet Air Knife packages from Spraying Systems Co WindJet Air Knife packages offer: Wdeliver clean, heated air using a unique and leading- edge design, that directs airflow from the knife in a straight G Low operating noise – no sound enclosures stream. This maintains the integrity of the air stream G downstream, with uniform, high-volume and constant air. Easy installation and operation Get up to 60% reduction in perceived noise level and G Cover large application areas eliminate the spotting and blotching problems associated G with other blowers. A visual positioning guide allows easy Significant reduction in compressed air positioning of the knife to ensure maximum target coverage. G Improved safety The targeted air stream improves the effectiveness and efficiency of drying and blow-off and delivers a more Talk to the experts in spray technology if you complete drying, even in cracks and crevices. have to clean, dry or cool in your operation.

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November / December 2013 | Food&Drink business 44 top 100 food & drink companies

Rank Sales up/down Type Sales $M Period Previous Sales $M Rank Sales up/down Type Sales $M Period Previous Sales $M OSI INTERNATIONAL FOODS CLEARLIGHT INVESTMENTS 71 77 O Pty 206 01/12 205 Pty 193 06/13 188 OSI International Foods (Australia) is a wholly-owned subsidiary of Chicago- Clearlight Investments manufactures and distributes two key brands, San Remo and based OSI Industries. It specialises in the manufacture of raw and cooked meat Fantastic Snacks. The company’s manufacturing operations are located in Adelaide, products including organic beef patties and meatballs, chicken patties and SA, and it distributes its products in Australia and to 35 other countries. sausages for the Australian and Asian markets. The company has production facilities in Blacktown, NSW, and Eaglefarm, Queensland. CEREBOS FOODS 78 COOPERS BREWERY O P 189 12/12 187 72 Cerebos Foods is a subsidiary of Singapore-based Cerebos Pacific, which is P 200 06/13 180 owned by Japanese global food and beverage group, Suntory. It manufactures Coopers is the largest Australian-owned brewery, and in 2013, it grew its share of the sauce, spice and coffee and its key brands include Gravox, Fountain, Saxa and Australian beer market to 4.5 per cent. Coopers has expanded its South Australian Asian Home Gourmet. brewery this year, and installed a second bottling line, which is dedicated to Coopers’ traditional products, including Pale Ale, Sparkling Ale, Mild Ale and Stout, which HSK WARD make up 80 per cent of production. The existing line is now dedicated to the other 79 beers produced at Coopers, including lagers and the international brands Sapporo Pty 188 06/12 166 and Carlsberg. HSK Ward encompasses Ward McKenzie, a company that packages, markets and sells pulses and baking ingredients products under the McKenzie’s brand, and FTA INDEPENDENT LIQUOR GROUP DISTRIBUTION Food Solutions, which supplies the food service industry. Its extensive range 73 includes herbs and spices, beans and pulses, soups and mixes, and a number of C 199 06/12 212 baking products. Independent Liquor Group Distribution is a co-operative that is operated by the Independent Liquor Group to assist small retailers and hoteliers secure a level CORDINA CHICKEN FARMS of protection against the buying power of the large corporations. It offers members 80 benefits such as increased buying power and group marketing and it has over Pty 178 06/13 161 750 members across NSW and Queensland. The company produces and distributes chicken-meat products, and has a strong presence in the convenience sector. It also supplies private-label products to Coles FRUCOR BEVERAGES and value-added products under the Quicken Chicken brand. Its plant is based at 74 Girraween in NSW. O Pty 197 12/12 189 Frucor Australia manufactures, markets and distributes a range of energy drinks, fruit CONGA FOODS juices, waters and soft drinks including ‘V’, Just Juice, Maximus, G-Force, Mizone, 81 Moccona, Pepsi, Mountain Dew and 7Up. Since 2009, Frucor has been wholly Pty 173 06/13 169 owned by Japanese beverage and food company Suntory Group. The family-owned business markets and distributes Mediterranean food in Australia under well-known brands like Moro olive oil, Val Verde tinned tomatoes and Scala GOLDEN COCKEREL pasta sauces and antipasti. It also supplies the traditional continental delicatessens, 75 food service and the retail sector. Pty 196 06/13 200

Family-owned Golden Cockerel is a fully integrated poultry and pet food business DE BORTOLI WINES and its operations span feed mills, hatcheries, parent farms, broiler farms, 82 a processing plant and distribution. It processes in excess of 15 million broilers Pty 167 06/13 168 per annum and markets fresh and frozen poultry and petfood products to customers Family-owned De Bortoli operates in wine regions across Victoria and New South in Australia and the international market. Wales including the Yarra, King and Hunter Valley. This year it installed the largest solar PV generator and thermal pre-heater ever adopted by an Australian winery. HAZELDENE’S CHICKEN FARM 76 FERRERO AUST Pty 195 06/13 172 83 O Pty 160 08/12 136 Hazeldene’s Chicken Farm is one of Australia’s only fully vertically integrated regional poultry processors. It produces fresh and frozen chicken products for Ferrero Australia is part of Italian confectionery and chocolate manufacturer Ferrero. both the retail and wholesale markets. It recently commissioned a new In addition to Ferrero chocolates, it also manufactures well-known brands such as Nutella, $20 million poultry primary processing plant at its site at Lockwood, Victoria. Tic Tac, and Kinder at its facility in Lithgow, NSW, where it employs around 90 staff.

Food&Drink business | November / December 2013 SPONSORED BY barnco 45

Rank Sales up/down Type Sales $M Period Previous Sales $M Rank Sales up/down Type Sales $M Period Previous Sales $M BALLANTYNE GERALDTON FISHERMEN’S CO-OP 84 86 Pty 153 06/10 157 C 151 06/12 123

Family-owned Ballantyne produces butter, dairy blends and margarine products for its The fisherman-owned co-operative is the world’s leading processor and exporter of own brands, Ballantyne, Golden Churn, Red Feather, Wood Dunn, Blue Triangle and Western Rock Lobsters. It receives around 60 per cent of the industry’s Western Rock Hammer, and as a contract manufacturer at its purpose-built factory in Laverton North, Lobster intake, which it sells under the Brolos brand. In peak season, it employs Victoria. Its products include portion control products like minitubs and mini wraps around 250 workers. and retail products including tubs and wraps for both Australian and international markets. It is also the largest producer of canned butter in the world. Its food ingredient STUART ALEXANDER division manufactures spray-dried dairy powders and other speciality powders. 87 Pty 148 06/13 140 INDEPENDENT LIQUOR GROUP (SUPPLIERS) Stuart Alexander is an Australia-based international marketing and importing 85 company. It imports, markets and distributes premium brands across various C 152 06/12 185 categories including food and beverage, confectionery, snacks, chocolate and Independent Liquor Group (Suppliers) is a co-operative that is operated by cigars. It is best known for brands like Werther’s Original, Mentos, Pringles, Tabasco, the Independent Liquor Group. It offers members benefits such as increased Guylian, Chupa Chups, Perrier, Fisherman’s Friend and Smint. Its brand portfolio buying power and group marketing. The Independent Liquor Group operates includes chocolate, confectionery, chewing gum, salty snacks, biscuits, beverages, two co-operatives, the Independent Liquor Group Distribution Co-operative sauces and syrups imported from Italy, Germany, Belgium, France, USA and Mexico. (see number 73) and the Independent Liquor Group (Suppliers) Co-operative. The company is headquartered in Sydney, Australia, and has branch offices in Brisbane, Melbourne, Perth and Auckland.

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November / December 2013 | Food&Drink business 46 top 100 food & drink companies SPONSORED BY barnco

Rank Sales up/down Type Sales $M Period Previous Sales $M Rank Sales up/down Type Sales $M Period Previous Sales $M SEALANES VALCORP FINE FOODS 88 95 Pty 146 06/12 138 Pty 106 06/13 103 Sealanes supplies groceries and seafood to the local foodservice market, Valcorp imports and distributes brands such as Lavazza coffee, LaZuppa soup, LaGina as well as offshore rigs and ships in ports around Australia. tomatoes, Sirena Tuna, Lavazza A Modo Mio coffee capsules, La Bella drinking chocolate, Evian water and Badoit water in Australia. It’s based in Carlton, Victoria. SAMUEL SMITH & SON 89 H J LANGDON Pty 132 06/13 126 96 Pty 100 06/13 97 Samuel Smith & Son is a family-owned wine merchant and its portfolio includes international wines, spirits and premium ales. Its head office is located in Sydney Australian-owned H J Langdon operates a food ingredients manufacturing, blending and it has branches in all Australian states and territories. and packing operation, Langdon Ingredients. It also owns the Henry Langdon niche gourmet tea and food brand. It employs around 90 people, and its head office is located in Derrimut, Victoria. DOUWE EGBERTS 90 O Pty 132 12/12 240 DARRELL LEA 97 The Australian division of Dutch manufacturer, Douwe Egberts, distributes tea and Pty 99 06/11 103 coffee brands and related equipment to the retail and foodservice markets in Australia and the region. It represents the premium freeze-dried coffee brand Darrell Lea is owned by the Quinn family, an Australian family that owns pet food Moccona, and Harris, the oldest coffee brand in Australia. maker VIP Petfoods in Queensland. They bought the iconic company after it was placed into voluntary administration in July last year. It is based in Kogarah in Sydney’s south. MCWILLIAM’S WINES 91 P 126 06/13 146 MRS MAC’S McWilliam’s Wines has a presence in 45 of Australia’s 62 wine regions, and it produces a 98 Pty 97 12/12 90 number of bottled table wines, as well as sparkling and fortified wines under numerous brands including McWilliam’s, Mount Pleasant and Evans & Tate. It is also the exclusive The family-owned pie and pastries maker produces all of its products at its bakery in Australian distributor for Taittinger, Henkell, Mateus and Drambuie and it exports to a Perth, Western Australia. It uses 14-17 tonnes of beef per day, which has been number of markets including the UK, US, Canada and many parts of Asia. sourced from farms throughout Western Australia. Its pies are individually wrapped and are sold in retail, route trade and food service outlets. G & K O’CONNOR 92 BROWN BROTHERS Pty 121 06/12 109 99 Pty 97 06/12 104 G&K O’Connor produces and distributes pasture-fed and grain-fed beef and beef by-products for export. It is based in Pakenham, Victoria, and it employs more than Brown Brothers is a family-owned wine company based in Milawa, Victoria, 230 staff throughout its operations. It exports 95 per cent of its production to Australia. It has several vineyards in the state and it operates primarily in the Japan, Europe and the United States. wine manufacturing industry, but it also has operations in the liquor wholesaling and grape growing industry in Australia. AUSTRALIAN BAKELS 93 DEVRO O Pty 107 12/12 96 100 O Pty 96 12/12 91 Australian Bakels is part of the Bakels Group of companies based in Switzerland. Devro is the Australian division of the Scotland-based manufacturer and distributor of It produces, exports and markets bakery and food ingredients. The company is sausage casings of the same name. It is considered the world leader in the casings headquartered in Silverwater, NSW and has around 210 employees. It has three market and it has manufacturing sites in the USA, UK, Czech Republic and in manufacturing plants in Australia and exports to over 10 countries throughout Asia Bathurst, NSW. and the Middle East.

MCCORMICK FOODS The Top 100 food & drink companies report was 94 O Pty 106 11/12 99 produced in collaboration with IBISWorld. McCormick Foods Australia is owned by US food company McCormick & Co. A full copy of the Top 100 November/December issue It manufactures and distributes food and food ingredients throughout Australia, and exports to New Zealand and parts of Asia in a wide range of categories including can be downloaded at foodanddrinkbusiness.com.au. herbs and spices, mustards and curries, and sauces and gravies under the McCormick brand as well as under other brands including Grill Mates, Grinders, Keen’s and Aeroplane Jelly. McCormick Foods is headquartered in Clayton, Victoria and it employs approximately 240 staff.

Food&Drink business | November / December 2013

48 year in review headline makers Food & Drink Business wraps up the year with a snapshot of some of the top news stories from the food and beverage sector 2013 in Australia and New Zealand.

Coles’ product range goes ‘Down Down’ January/February 2013 January/February The cold facts on Nudie’s first 28 the carbon tax The Australian Food and Grocery Council (AFGC) www.foodanddrinkbusiness.com.au Straw poll prompts 12 decade laid bare 8 Sippah re-brand accused Coles of shrinking its overall product range and aggressively promoting its private label print post approved pp255003/00492 approved post print products, resulting in a loss of consumer choice. ON THE The claims were made after Coles announced COVER: its biggest single round of price cuts since its SEALED “Down Down” campaign began. AIR AFGC CEO Gary Dawson said research conducted by Deloitte Access Economics and based on Coles’ own data found the supermarket’s product range dropped by 11 per cent, from 62,000 Floods cost Qld citrus industry products in mid 2010 to 55,000 in mid 2012. “catastrophic” damage Flood damage in the Queensland towns of Gayn- 10/01/13 3:06 PM Sugary drinks come under fire from dah and Mundubbera and their surrounding FMN jan 2013 cover.indd 1 health organisations fruit orchards caused hundreds of millions of Australia’s most prominent health organisations dollars of damage. proposed a tax on drinks with high sugar levels in According to Judy Shepherd, the secretary of the tandem with the launch of a TV campaign that Gayndah and District Fruit Growers Association, JANUARY/FEBRUARY warns of the dangers of sugary beverages. the effect on the region, particularly Gayndah and The campaign, Rethink Sugary Drink, aims to Mundubbera, would be severe and long-lasting. encourage Australians to give up the soft drink The latest flood was the third natural disaster to af- habit and switch to water and reduced-fat milk. fect the area in recent years and Shepherd said she The TV ad, borrowed from a similar New York was afraid many growers wouldn’t recover. campaign, is part of a call to action by the Cancer Some of the citrus orchards were completely Council, Diabetes Australia and the National wiped out, parts of others simply dropped into Heart Foundation to stem obesity rates. the Burnett River and the infrastructure damage They also called for a government tax on sugary was enormous, she said. drinks and asked schools and non-government organisations to limit their sale and availability. Kraft opens Australia’s largest R&D facility Woolworths launches local food Kraft Foods opened the first stage of Austra- sourcing strategy lia’s largest food R&D facility, based on the in - Woolworths announced a new local food sourc- novation-hub model proposed by the Prime ing strategy to bring more locally produced Minister’s Taskforce. Coopers embarks on $20 million foods to the shelves of Woolworths supermar- Co-located with Kraft’s Ringwood manufac- brewery expansion kets across Australia. turing facility in Victoria, the Kraft Foods Asia Coopers Brewery announced a $20 million capi- Tjeerd Jegen, Woolworths managing director of Pacific Confectionery Centre of Excellence will tal expansion program in 2013 as a result of con- Australian supermarkets and petrol, said Wool- employ the largest R&D team in Australia, in- tinued sales growth and its contract-brewing worths was at the heart of many local communities. cluding more than 100 food scientists, technolo- arrangements with Sapporo and Carlsberg. “From our capital cities gists and graduates, who The program included doubling the size of to our country towns, we are will focus on both Austra- the brewery’s existing lager cellar, the instal- committed to supporting lian and Asian markets. lation of a second bottling line and two ad - local suppliers,” Jegen said. Stage one will see ditional fermenters. “Our new local food Kraft’s R&D resources The new line will be dedicated to Coopers’ tra- sourcing strategy will see centralised at the Ring- ditional products, including its Pale Ale and Spar- us introduce even more de- wood site, and will include kling Ale, which make up more than 70 per cent licious Aussie brands and a pilot plant with a range of production. The existing bottling line will then products to our customers.” of chocolate testing and be used for the other beers produced by Coopers, Woolworths also said it development equipment, a including the lager range incorporating Sapporo would appoint local sourc- test kitchen and consum- and Carlsberg, and other packaging formats. ing managers in each state. er insights facilities.

Food&Drink business | November / December 2013 year in review 49

Byron Bay Cookie Company goes into as sole shareholder, have con- March 2013 March Next generation Tassal’s three-year 30 ready meals www.foodanddrinkbusiness.com.au voluntary administration sidered for a number of AFGC on Country 12 marketing strategy 11 of Origin Labelling Byron Bay Cookie Company entered into volun- years,” Ingham said. tary administration after the Australian Tax Of- He said the poultry print post approved pp255003/00492 approved post print fice sought to wind up the business in documents producer’s day to day ON THE filed with the Federal Court. operations would COVER: The cookie company was owned by Slater In- continue as usu- NEWLY ternational, owner of the Luken & May Biscuits al under the di- WEDS and Falwasser Crispbreads brands. rection of chief FOODS Byron Bay Cookie Company supplies cafes executive officer and gourmet food stores across Australia, in- Kevin McBain. cluding McCafe, Michel’s Patisserie and selected Woolworths, Coles and IGA Supermarkets. Windsor Farm The biscuit manufacturer was later sold as a beetroot cannery closes 22/02/13 3:13 PM going concern to established Australian food Cowra cannery Windsor Farm Foods was placed FMN MARCH COVER 2013.indd 1 manufacturer Rinoldi Group, owner of Rinoldi into voluntary administration and its 70-plus Pasta, a manufacturer of pasta products. workers dismissed without pay. MARCH The NSW company was the last Ingham sells poultry business wholly owned Australian cannery Mars invests $52 million for $850 million and was once one of the largest in Ballarat site expansion Poultry producer Bob Ingham sold canning lines in the southern Mars Australia announced it would invest $52 the 95-year-old family business In- hemisphere. million into the expansion of its Ballarat plant in ghams to US-based private equity Richard Mulcahy, CEO of a bid to better capitalise on export markets. group TPG Capital for $850 million. AUSVEG, the country’s peak The expansion is focusing on its Maltesers, pri- Ingham put the chickens business vegetable growers’ industry mary bar and bite size production lines and the up for sale in June 2012 and appoint- group, described the closure as investment will fund new technologies and inno- ed Investec Bank to manage the pro- a “crushing blow” to the already vative products and processes to help the compa- cess of identifying a suitable buyer. struggling food processing sec- ny boost productivity and develop new markets. “My decision marks the next phase tor, which he said was under The Victorian government is contributing for the successful ongoing develop- enormous pressure from im- $2 million to the expansion. ment of the company and is one that I, ported foods and the retail sector.

November / December 2013 | Food&Drink business 50 year in review

April 2013 April Spring Gully Foods fights to survive Beverage labels Coopers defies the 32 of the future www.foodanddrinkbusiness.com.au New health claims 20 beer market downturn 8 standard looms South Australian pickles and preserves company Spring Gully Foods entered voluntary ad-

print post approved pp255003/00492 approved post print ministration after experiencing a sudden fall in ON THE supermarket sales. COVER: The company pointed to a tough retail envi- MATTHEWS ronment and rising utility costs, and appealed AUSTRALASIA to customers to help secure its future. The company sells a large range of pickled onions, gher- electricity to its own mill and sugar refinery. kins, relishes, sauces, jams and honey under the The upgrade has reduced Mackay Sugar’s re- 60-year-old Spring Gully brand, as well as the liance on black coal, significantly reduced its Gardener and Leabrook Farms brands. energy costs and will also provide the company

2/04/13 8:50 AM with a new revenue stream from the green en-

F&D APRIL 2013 COVER.indd 1 ergy it supplies to the grid.

Murray Goulburn snares APRIL $2 billion, 10-year Coles deal Murray Goulburn’s Devondale won a Queensland sugar company 10-year contract to supply and produce turns its hand to power private label milk for Coles from the generation middle of 2014. Mackay Sugar opened a $120 mil- The move will see Devondale re-en- lion cogeneration plant that uses ter the daily pasteurised milk market Darrell Lea gets a makeover processing waste to sell renewable and will knock Lion out as the supplier Confectionery company Darrell Lea rolled out a energy back into the national elec- of Coles brand milk. new logo and a new look for its products six tricity grid. Devondale is currently a supplier of months after its sale to the Quinn family. The cogeneration plant can pro - UHT milk, cheese, butter and spreads The family purchased the iconic confection- duce enough electricity to meet one- to the Australian market. Murray ery firm in September last year from the Lea third of the power needs of the region- Goulburn also sells yoghurt through a family, which owned the firm for 85 years until al city of Mackay, where the plant is joint venture with Danone and exports it was placed into voluntary administration in based, as well as supply steam and dairy ingredients. July last year.

Sunny Queen sinks $13 million into The numbers were integrated egg production

May 2013 May down, however, on the Real-time Meet the new rheometer unveiled 26 www.foodanddrinkbusiness.com.au An exporter’s 14 Darrell Lea 10 guide to China Queensland egg producer Sunny Queen Austra- previous show in Mel- lia announced plans to build a new $13 million bourne in 2011, when

egg production facility to kickstart a new era of 6844 visitors attended. print post approved pp255003/00492 approved post print ON THE development for the farmer-owned company. Event manager Luke COVER: The new facility, which will be delivered by Kasprzak said it was a TATE & Wiley, will be built on Sunny Queen’s Synergy strong achievement LYLE Park site in Carole Park, Brisbane. considering Victoria’s The project will see the consoliconsoli- larger base of packag- dation of elements from ing companies. two existing Sunny Queen operations National Food – one nearby in Plan launched to Movers and Shakers in salt reduction Carole Park and one at mixed reviews 1/05/13 9:23 AM

F&D MAY 2013 COVER.indd 1 Yatala – to create a uniuni- The federal government set 16 goals for the food fied, world-class egg processprocess- and agricultural sectors to help capitalise on the ing facility that is expected to bebe- rising demand for food in Asia in Australia’s first MAY come the primary production hub for ever National Food Plan. the company’s ongoing expansion. The plan focused strongly on funding for re- UK manufacturer takes on search aimed at expanding food exports into Unilever’s wet sauces AUSPACK industry trade Asia, and for strengthening trade ties between UK convenience food manufacturer Syming- show hits Sydney the regions. ton’s announced it would licence Unilever’s wet The AUSPACK PLUS show was held in Sydney The government also pledged $28.5 million to sauces portfolio, spanning the Chicken Tonight, this year and organisers of the event expressed an Asian Food Markets Research Fund to help Raguletto and Five Brothers brands, in Austra- satisfaction with the final tally of visitor num- Australia’s agriculture and food industries to lia and New Zealand. bers which were 20 per cent higher than the last capitalise on opportunities offered by growing The three brands continue to be produced by time the event was held in Sydney. Asian markets. Unilever. The licence represents Symington’s The organisers of the packaging and process- A further $5.6 million was allocated to first major international venture. Symington’s ing machinery show said that AUSPACK 2013 strengthening trade ties in the Asian region, and licensed and subsequently acquired Chicken achieved 5922 visits over the four-day event, ver- another $2 million to develop Australia’s own Tonight and Ragu from Unilever UK in 2011. sus the 5019 who visited in Sydney in 2009. trusted and recognised food brand.

Food&Drink business | November / December 2013 year in review 51

The ACCC said the com- star system, which is underpinned panies were the two larg- by a modified nutrient profiling est suppliers of wet and dry scoring system. infant food in Australia The initially voluntary star system, and the merged entity which will apply to packaged, manufac- ON THE would have accounted for tured or processed foods, uses a rating COVER: around 80 per cent of the scale of half-a-star to five stars depend- IMCD share of sales in the wet in- ing upon the levels of individual nutri- AUSTRALIA fant food market and ents such as saturated fats. around 70 per cent in infant cereals and infant snacks. Study aims to balance “waste not, ACCC chairman Rod Sims said the ACCC had want not” equation concluded that the proposed acquisition was An Australian study was released that at- likely to result in a substantial lessening of tempts to quantify the role of packaging as a competition as it would result in the re- major contributor to tackling food security is- moval of the Rafferty’s Garden brand. sues in coming decades. Commissioned by logistics company CHEP Coles in hot water over false, and conducted by RMIT University’s Centre for JUNE misleading and deceptive Design, the study, entitled “The role of packaging bakery claims in minimising food waste in the supply chain of Simplot The ACCC instituted proceedings in the Federal the future”, provides figures for the chief sources warns two Court over claims made by Coles regarding par- of food waste in Australia, and identifies key vegetable baked bread sold at its in-house bakeries. roles that packaging can play in reducing that plants at risk The ACCC alleged that Coles ‘Baked Today, waste total. of closure Sold Today’ and in some cases ‘Freshly Baked In- Simplot advised employees that its vegetable Store’ bread promotions were false, misleading processing plants in Bathurst in NSW and and deceptive as these products were partially Devonport in Tasmania were under threat baked and frozen off site. of closure. These promotions, as well as nearby promi- The company pointed to unsatisfactory finan- nent signs stating ‘Freshly Baked’ or ‘Baked cial returns arising from a very competitive food Fresh’, were likely to mislead consumers into industry environment and unsustainably high thinking that the bread was prepared from costs associated with manufacturing in Australia. scratch in Coles’ in-house bakeries on the day it The vegetable canneries, which have both been was offered for sale and that it was entirely in the Simplot business for years, are currently not baked on the day it was offered for sale, accord- competitive in the face of much lower cost importing to the ACCC. Australian food industry profits tumble ed product alternatives, the company said. according to report “The frozen and canned vegetable categocatego-- Dairy deemed unhealthy The profitability of Australian food and grocery ries have been chronic profit under-perform-under-perform- under five star system suppliers declined by 28 per cent from 2010 to ers for years, regardless of the value of the After a front-of-pack star rating sys- 2012, according to a report released by the Aus- Australian dollar,” Simplot Australia’s tem was agreed to by state and fed - tralian Food and Grocery Council. managing director, Terry O’Brien, said. eral ministers, dairy companies The Competitiveness and Sustainable said they were worried that their Growth Report found that while supermarket ACCC rejects Heinz baby food wares could fare poorly under retail turnover had recorded steady growth, acquisition the regime. Australian food and grocery suppliers report- The Australian Competition and According to the Austra- ed falling turnover. Consumer Commission opposed a lian Dairy Industry Council, The report was based on an analysis by KPMG proposed acquisition by Heinz of products like milk and of detailed survey data from food and grocery fast-growing premium baby food cheese could be seen as an suppliers operating in Australia, and covered the manufacturer Rafferty’s Garden. unhealthy option under the four years from 2009 to 2012.

Any Product Any Speed Any Mix Any Where JMP New Zealand JMP Australia Ph +64 9 828 3304 Ph +61 3 9460 1219 www.jmpengineering.com

November / December 2013 | Food&Drink business

C 14328 PKN JMP ENGINEERING.indd 1 1/3/12 2:06:01 PM 52 year in review

Lessons from a 2013 July The inside scoop 28 real-life recall www.foodanddrinkbusiness.com.au Spring Gully Foods released from administration Tassie dairy processor 23 on liquid eggs 10 discusses exports Administrators of South Australian pickles and sauce manufacturer Spring Gully Foods handed the company back to its directors after 300 print post approved pp255003/00492 approved post print creditors voted to accept a deed of company arrangement. ON THE The company, which called in the administrators in April after suffering COVER: a sudden dip in supermarket sales, resumed operating under family control, CHEP owing unsecured creditors more than $3 million and with bank debt of AUSTRALIA around $7 million.

Rafferty’s Garden bought by British soap company Australian baby food manufacturer Rafferty’s Gar- den was sold to Cussons by private equity firm Anaca- 28/06/13 11:43 AM cia Capital in a deal worth just over $70 million. F&D July 2013 cover.indd 1 The consumer products company PZ Cussons sells the Morning Fresh, Radiant, Duo, Imperial Leather, Original Source and St Tropez brands in Australia. JULY Rafferty’s Garden was founded in 2008 by Adrian Pike, who sold the company in 2010 to Anacacia Capital. Coles fined for country of origin claims Coles was back in hot water with the competition Court rules poultry producer’s ‘free to roam’ regulator, this time over mislabelling of imported claims misleading fresh produce. Poultry producer Baiada was found The retailer has paid six fines worth a combined $61,200 for repre - to have deceived customers by advertis- ?Xe[iX`c#NXcbnXpXe[>lXi[`e^ sentations made in five of its stores about the source of some of its fruit ing Steggles chickens raised in high-den- and vegetables. sity barns as “free to roam in large barns”.

=fiZfee\Zk`fekfpfliZcfj\jkYiXeZ_ The ACCC said it took action after receiving a complaint that Coles had The court decision followed an 18-month D\qqXe`e\=cffij displayed some imported navel oranges and kiwi fruit underneath price court battle between Baiada and the (/''-*,0+. 8LJK boards reading ‘Helping Australia Grow’ with the triangular ‘Australian ACCC, which alleged that due to the crowd- '/'')/,/*. EQ :fem\pfi9\ckj Grown’ symbol. ed conditions in the poultry company’s sheds, it was misleading consumers by saying its chickens were “free to roam” on JkX`iKi\X[j packaging and print advertising. :fem\pfi9\ckj# According to the ACCC, individual

:ljkfdZfe]`^li\[ Social media campaign pays off for Thankyou kfpfliXggc`ZXk`fe Woolworths and Coles supermarkets both pledged to stock Thankyou food and water products from social enterprise, Thankyou.co, in a demonstration of the power of social media. The company recently added new food and body care products to its Thankyou Water range, which funds projects in Africa and Asia. It followed =fiZfee\Zk`fekfpfliZcfj\jkYiXeZ_ the launch with a video campaign to convince Woolies and Coles to stock (/''-*,0+. 8LJK the products. The strategy paid off with Woolworths announcing its inten- tion to stock the products, soon after a similar announcement from Coles. '/'')/,/*. EQ

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Food&Drink business | November / December 2013 year in review 53

CCA returns to the beer business with August 2013 August The cutting edge of Australia’s coffee conveyor splicing 26 www.foodanddrinkbusiness.com.au Meaty innovations 18 cravings explored 12 on show at IFFA Molson Coors distribution deal Coca-Cola Amatil (CCA) secured the Australian rights to a THE WRAPPING SOLUTION THAT...

number of premium beer brands in a deal with international print post approved pp255003/00492 approved post print REQUIRES USES LESS NO CAPITAL brewer Molson Coors. LOOKS WRAP AFTER OUTLAY ON THE After mid-December 2013, CCA will distribute Molson Co - ITSELF COVER: THE ors brands, which include Carling, Coors Light, Caffrey’s and CHEPSTRETCH craft beer Blue Moon, in Australia as part of the long-term SYSTEM exclusive deal. The company is barred from the Australian beer market until the end of 2013 as a condition of the 2011 sale of its 50 ...CHEPStretch per cent stake in its Pacific Beverages joint venture with

Get a free trial 13 2437 (13 CHEP) SAB Miller. www.loadcontainment.com.au 25/07/13 11:13 AM Apple juice sugar warning: FJA fights back F&D August 2013 cover.indd 1 Fruit Juice Australia (FJA) slammed a report that describes apple juice to be as sugary as Coca-Cola and AUGUST warns consumers to limit consumption. The FJA said the Fairfax Media report sent the SPC Ardmona seals wrong message to parents and ignored the latest re- $7 million private label deal search that shows fruit juice consumption has been Woolworths signed up Coca-Cola associated with better diet quality. Amatil’s troubled fruit processor SPC “Research shows that both adults and Ardmona as the new supplier of its kids who consume fruit juice have a Select canned apricots, peaches, ap- better diet quality and improved nu- ples and pears. trient adequacy,” FJA CEO Geoff SPC Ardmona had recently called Parker said. “In kids, fruit juice con - for emergency tariff protection from sumption is associated with signifi- cheap imports. According to the man- cantly higher intakes of four essential ufacturer, market share of imported vitamins and minerals.” private label canned fruit had grown to 58 per cent, while SPC Ardmona canned fruit share has declined to 33 per cent.

Fonterra warns of whey protein contamination Rapid Manufacturers of infant milk powder, sports drinks and animal stock feed were among those affected by a whey protein contamination Results. announcement by New Zealand dairy giant Fonterra. Fonterra advised eight of its customers located in Australia, China, Ma- laysia, Vietnam, Thailand, Saudi Arabia, that three batches of a particular type of whey protein concentrate (WPC80) produced at one of its New Zea- Real land manufacturing sites in May 2012 contained a strain of Clostridium that could cause botulism. Danone recalled infant milk formula as a result. Answers The scare was later found to be a false alarm.

Frozen fruit takes a bite out of Sooner. profits for Patties Products to ensure food safety; Patties Foods reported a sharp fall in profit following a • Hygiene monitoring write-down on its frozen • Pathogen detection • Microbial swabbing fruit business. • Microbial enumeration The company’s profit • Allergen detection for the year ending 30 • Antibiotic residue detection June fell to $4.8 million, • Sample collection and transport 75 per cent lower than the $19.5 million it announced in the previous corresponding period. “Market conditions remain difficult and for the Phone + 61 2 9882 3666 first time in four years, we Email [email protected] Web www.amsl.com.au have reported a decline in earnings,” Patties' managing director, Greg Bourke, said.

November / December 2013 | Food&Drink business 54 year in review

Bega launches takeover bid for WCB

September 2013 September Bega Cheese launched a takeover offer for

www.foodanddrinkbusiness.com.au INSIDE annual ingredients guide Warrnambool Cheese and Butter (WCB). Bega Cheese, which currently owns 18 per cent of print post approved 100005338 approved post print Warrnambool Cheese, offered 1.2 Bega shares ON THE and $2.00 cash for every WCB share as part of the COVER: off-market takeover offer. KERRY Bega said if it was successful, the combined enti- ASIA ty will have a market capitalisation of around PACIFIC Aussie breakthrough: $650 million and would be one of Australia’s world’s first low GI potato largest publicly listed food companies. Bega’s Research backing claims that the South Austra- executive chairman, Barry Irvin, the combined lian-developed low GI Carisma potato is a world business would operate over seven sites, pro- first was presented at an international nutrition duce 353,000 tonnes of dairy products, gener-

21/08/13 2:17 PM conference in Spain. ate revenue of $1.5 billion, and process approx-

F&D SEPTEMBER 2013 cover.indd 1 Carisma is the first potato to be internationally imately 1.6 billion litres of milk from certified as low GI and is currently commercially approximately 1000 Australian dairy farmers available to consumers. WCB, however, advised its shareholders to SEPTEMBER It was developed by Virginia market gardener take no action on Bega’s Frank Mitolo and Australia’s Glycemic Index takeover offer, which the Foundation using natural breeding processes. company has described as “highly opportunistic”. Energy drinks Tamar Valley Dairy enters back in the hot seat voluntary administration Carrots rule in the A discussion paper on the regula- Struggling Tasmanian yoghurt compa- veggie section tion of caffeinated products such ny Tamar Valley Dairy entered volun- A monthly survey that aims as energy drinks was released by tary administration after a failed mis- to rank Australia’s 10 the federal Department of Health sion to resolve its financial problems. most purchased vegetables to provide policy guidance on the Deloitte Restructuring Services was found that carrots were issue amidst rising health public appointed as voluntary administrator the most commonly health concerns. of the company, which employs 170 bought in August. The Australian and New Zea- people and is located near Launceston. According to the land Food Regulation Policy Op- The company’s troubles became survey of over 800 tions Paper is reviewing current public in April when creditors granted consumers, which policy guidelines in light of the the company more time to sort out was conducted on increased number of products what it at the time described as a behalf of the vege- that contain caffeine. short-term liquidity problem. table industry, carrots led the pack, having Australian Beverages Council In November, the company’s been bought by 94 per cent of respondents, fol- CEO Geoff Parker said that caf- assets were acquired by NZ dairy lowed by tomatoes, potatoes, broccoli, cauli- feine was a commonly used in- giant Fonterra. flower, celery, capsicum, white onion, cabbage gredient in a number of food and zucchini. and beverage products includ- Marmite returns to ing tea, coffee, cola, chocolate, the retail shelves Simplot signs Coles contract energy drinks and iced coffee, Sanitarium’s Marmite went back Coles offered struggling processor Simplot a and had been safely consumed on sale in Australia following a contract to supply it with more frozen vegeta- for centuries. break of almost two years, after bles and potatoes as part of a move to boost its production was halted by the 2011 private label offerings in this category. Unilever buys Christchurch earthquake. Coles already sources private label Australian tea retailer T2 Sanitarium processes the products from Simplot, but the five- Lipton and Bushells brand owner Unile- yeast extract spread for the entire year offer sees Coles increase its ver announced it would acquire Austra- South Pacific region in New Zea- branded frozen vegetable and po- lian tea retailer T2, which sells a range land, and following the earth- tato volume by over 12 per cent as of teas and tea wares from around quake, the factory was forced to part of a new local sourcing com- the world through its 40 stores. suspend production to allow for mitment by the retailer. Although Unilever did major repair works. According to the retailer, 100 not disclose the terms Todd Saunders, general man- per cent of its Coles Brand frozen of the deal, the compa-compa ager of Sanitarium Australia, vegetable and potato products are ny said T2 generated thanked consumers and retail- already sourced from Tasmania sales of almost $57 ers for their patience during the and NSW. million in the 12 supply shortage. Coles said its Smart Buy frozen months to June 30. “Demand for Marmite is strong vegetables and potato products will “T2 is a fast grow - and we have been amazed to see also now be 100 per cent Australian. ing premium tea busi-busi the level of passion that the product Coles has said that this will in- ness with great poten-poten inspires in the hearts of both Austra- crease the total annual volume of pro- tial,” Kevin Havelock, lians and New Zealanders who have been duce sourced from Australia to over 19 million Unilever's president for re-re clamouring to get their hands on fresh supplies,” kilograms, which represents an increase of freshment, said. he said. around 2.4 million kilograms.

Food&Drink business | November / December 2013 year in review 55

McCain blamed a flood of cheap imported

October 2013 October products, as well as high labour, raw material, fuel Three companies Food technology embrace solar power 28 www.foodanddrinkbusiness.com.au Private label: 20 of the future 14 make it work for you and electricity costs as the reason for the cutbacks. The plant is to shut down before Christmas, print post approved 100005338 approved post print leaving 59 staff members without jobs. However, ON THE the potatoes grown locally will be processed at COVER: another plant at Ballarat in Victoria. WILEY Simplot snares Woolworths contract and says plants safe for now Woolworths announced plans to source 100 per cent of its Select private label range of frozen vegetables from Simplot Australia in a move that will see the retailer source all of its

3/10/13 11:29 AM frozen vegetables from Australia by May next

F&D October cover 2013.indd 1 year. Woolworths currently stocks 39 lines of Select frozen vegetables, 11 of which are Danone seeks sourced in Australia. The new deal will move $289 million from Fonterra OCTOBER 17 lines to Simplot from overseas suppliers in Danone is said to be seeking at least $289 million Europe, New Zealand and China. The retailer in compensation from Fonterra after recalling its said 10 lines of Select steamed vegetables and milk formula in August as a result of the recent WCB shareholders courted stir fries that cannot be sourced in Australia Botulism scare. The figure far exceeds the NZ$14 by more dairy giants will be retired, despite being popular products. million ($12.3 million) provision made by Fon- Two more companies joined Bega Cheese in its Simplot also announced its vegetable opera- terra for the recall. The NZ dairy giant said in a takeover bid for Warrnambool Cheese and But- tions at Bathurst, NSW and Devon- statement that it “strongly denies” any legal lia- ter Factory Company (WCB). In October Cana- port, Tasmania will continue to bility to Danone in relation to the recall. dian company Saputo and Murray Goulburn operate for now, but there will However, Danone has said the immediate (MG) and entered the bidding war. The WCB be job losses. costs of the recall was 200 million euros ($289 board unanimously recommended the Saputo of- million). The company recalled its milk for- fer in the absence of a superior proposal. WCB Choice makes mula products in New Zealand, Singa- CEO, David Lord said at the time that Saputo’s of- free-range pore, Malaysia, China, Hong Kong, Viet- fer underscored the strategic value of WCB’s as- egg “super nam, Cambodia and Thailand, on the sets, compared to Bega’s offer, but all parties have complaint” back of the contamination scare, which since raised their offers. Consumer group later turned out to be a false alarm. Choice asked McCain to close South Australian plant NSW Fair Trading Coke no longer Frozen food processor McCain Foods announced to investigate poten- king of the brands it will close its factory in Penola, South Australia. tially misleading free- range claims in a Coca-Cola is no longer the world’s number one “super complaint” about the premium prices brand according to an annual report by Inter- consumers are paying for eggs. brand. Coca-Cola has been in the top spot for 13 According to Choice, the free-range egg market years, since the introduction of the list which now accounts for around 40 per cent of eggs sold in ranks the top 100 companies in order of the value Australia and consumers are paying a hefty pre- of their brand, but this year the beverage giant fell mium in the belief these products meet their ex- two slots to third place behind Apple and Google. pectations, despite much variation in the con- Brand consultancy Interbrand determines a ditions in which the chickens are kept. brand’s value by examining its financial perfor- Choice recommended that NSW Fair Trading mance, role in influencing consumer buying further investigate free-range egg claims and and ability to secure earnings. Coca-Cola’s take action where it finds evidence these claims brand is now valued at $US79.2 billion, accord- are likely to mislead NSW consumers. ing to Interbrand.

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November / December 2013 | Food&Drink business 56 year in review

On the Many of Australia’s largest food and beverage companies bolstered their senior management ranks in 2013 as they sought to drive innovation and growth move and boost their share of the $111 billion industry. AFGC CCA has been pre- Asia with account- APPOINTS vented from re-en- ability for the Indo- NEW tering the Australian nesian and Papua CHAIRMAN beer market until De- New Guinea busi- Terry O’Brien, man- cember this year af- ness units. He held aging director of Sim- ter selling its Pacific the position of MD plot Australia, was Beverage’s joint ven- of business services elected chairman of ture to Foster’s. since early 2012. the Australian Food CCA chairman, Da- “Peter has a and Grocery Council vid Gonski, said that strong track record Terry O’Brien (AFGC) in February. he was very pleased of developing break- Terry Davis Peter Kelly He took on the Davis would remain through commer- position from John Doumani, managing director as group managing director until August next year. cial strategies in of Fonterra Australia and New Zealand, who re- “The next 18 months will be crucial for CCA challenging operating environments and I look signed after five years on the AFGC board, the in the further development of its alcoholic bev- forward to his leadership of SPC Ardmona,” War- last two as chairman. erage strategy and the accelerated plans for wick White, CCA’s managing director for Aus- O’Brien said despite the fact that the industry growth of the Indonesian business, and the tralasia, said. was facing challenging times, food and grocery board felt it was prudent to provide the market White also said Pinneri had made a significant manufacturers remained optimistic about their with certainty as to Terry’s tenure,” he said. contribution to the SPC Ardmona business since future in Australia. Gonski said Davis had so far made a “signifi - he took over the role in July 2010. “There has never been a more important time cant and lasting contribution in transforming “Vince led the SPC Ardmona business through for the food and grocery manufacturing sector CCA into a world-class, premium multi-beverage a challenging period for the Australian manufac- to maintain a strong voice,” O’Brien said. business” in his 11 years at the helm to date. turing industry, particularly in food processing. “Industry priorities include regulatory reform The CCA board formed a subcommittee to “Vince has been with the Coca-Cola system for to reduce compliance costs; getting R&D tax in- find his replacement. Gonski said both internal almost 30 years and is an integral member of our centives right along with other measures to boost and external candidates would be considered. executive team. We look forward to his return to innovation; and engaging with retailers to im- the beverages side of our business.” prove the competitiveness and sustainability of NEW MANAGING DIRECTOR the food and grocery supply chain. I look forward FOR SPC ARDMONA KELLOGG NAMES NEW LOCAL MD to leading the AFGC.” Coca-Cola Amatil (CCA) in February announced Kellogg appointed a senior US manufacturing ex- it had appointed its head of business services, Pe- ecutive to take the helm in Australia and New CCA ANNOUNCES THE ter Kelly, to the position of SPC Ardmona man- Zealand earlier this year. RETIREMENT OF ITS CEO aging director. The former MD, Vince Pinneri, Kellogg ANZ’s new managing director, An- Coca-Cola Amatil announced in March that chief was appointed director of new ventures within drew Towle, relocated with his family from the executive Terry Davis will retire in August 2014, the executive team in CCA Australian Beverages. US, and brings over 20 years’ experience in gen- after almost 13 years running the beverage group. Kelly has spent 25 years with the Coca-Cola eral management and strategic marketing in the The news followed 18 months of speculation over system in a cross-section of business functions. consumer goods industry. his departure and comes ahead of a push to expand He previously held the positions of GM gro- Towle was previously vice president and gen- the group’s Indonesian business and a move back cery, director of operations and logistics in CCA’s eral manager of a division of US paper products intoZipPakAuspackAd.qxd the Australian beer market. 3/1/07 11:30 AM PageAustralian 1 business, and regional director for manufacturer Georgia-Pacific Corporation. Making the perfect package even better.

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Food&Drink business | November / December 2013 year in review 57

He replaced Jean- Over the year Fonterra has reported its Australian CHANGING Yves Heude, who consumer business has had to contend with a very OF THE moved into the posi- competitive retail environment and its ingredients GUARD AT tion of vice-president, business had also seen a significant margin squeeze. PATTIES strategy and special Swales said her challenge was to “get even Frozen food company projects, for Kellogg closer with our customers and consumers and Patties Foods ap- Asia Pacific. really understand how we can deliver to them pointed Mark Smith Towle has also the next big thing in dairy”. as its chairman fol- held a number of food lowing the retirement industry posts, in- BEAM GETS of Christopher Rior- Andrew Towle cluding various roles NEW LOCAL dan earlier this year. Mark Smith at US food giant H.J. BOSS Smith was the man- Heinz such as global marketing officer, vice-presi- The chief strategy of- aging director of Cad- dent of corporate strategic planning and vice-presi- ficer of Beam Global bury Schweppes Aus- dent of marketing. Spirits & Wine, Nich- tralia and New Prior to that he spent 15 years with Procter & olas Fink, is to re- Zealand from 2003 to Gamble in various marketing roles encompass- place Phil Baldock as 2007, and he also held ing many of the company’s most popular president of Beam’s senior management brands, including Pringles, which Towle mar- Asia Pacific/South positions with the keted across the Asia Pacific region. America (APSA) unit Nicholas Fink company in Austra- when he retires at the lia, the UK and North FONTERRA end of this year. Fink, a native of South Africa, has America during his 16 APPOINTS spent the last seven years in commercial, marketing years there. Greg Bourke LOCAL MD and legal roles. He was general manager of Beam’s Before joining Cad- Fonterra Co-operative Canada business from 2010 to 2011, before becom- bury Schweppes, Smith also held senior marketing announced in April ing Beam’s APSA chief strategy officer last year. Bal- positions with Unilever and Uncle Toby’s. that Judith Swales dock, who has been with the company for 14 In September, the company’s managing direc- had taken the helm of years, took the helm as president of APSA in De- tor Greg Bourke resigned. Though no reason the NZ company’s cember 2010. He is responsible for Beam Global’s was given for his departure, the announcement Australian operations business in Australia, New Zealand and Asia, as followed a 75 per cent fall in annual profit for to help turn things well as India and Brazil, and he also serves as the Patties, after it wrote down the value of its fro- Judith Swales around for the com- managing director at Beam Global Australia. zen fruit business, and the company has also pany in Australia. “We’ve taken the Beam business a long way in had problems with the installation of a robotic Swales is the former head of Heinz Food Austra- Asia Pacific over the years, always innovating pie packaging system. lia and has also held posts at Goodyear Dunlop, and continuing to build our position in Australia, Patties brands include Patties, Four’N Twenty pies, Angus and Robertson and WH Smith, as well as as well as opening up new frontiers across the re- Creative Gourmet and Nanna’s. the food division of Marks & Spencer in the UK. gion,” Baldock said. “The market-leading branded savoury busi- Fonterra’s CEO, Theo Spierings, said he was “I will leave with great confidence that under ness continued growth in FY13 in challenging confident Swales could provide the leadership Nick’s leadership APSA’s best days lie ahead, and trading conditions,” Smith said when reporting to accelerate the turnaround and growth of I’ll continue doing my part as a loyal brand fan.” the company’s annual results. Fonterra’s Australian business. Matt Shattock, president and chief executive of- “We remain focused on our strategy of sup- “Judith has been credited with leading suc- ficer of Beam, described Fink as a gifted and dy- porting and growing our core brands through in- cessful turnarounds and generating extremely namic leader with a unique breadth of experience. novative new products, marketing campaigns strong business results,” Spierings said. “She has “We have a very strong foundation in APSA, and and channel development.” extensive experience across retail, sales, mar- Nick will work with the excellent commercial and The company’s chief financial officer, Mi- keting and manufacturing operations, together marketing team we have in place to continue build- chael Knaap, and its head of sales, Tim Peters, with a strong track record in developing talent ing our power brands and winning markets across are joint acting chief executives until a new and building leadership within businesses.” the segment.” CEO is found. Smarter Tests from Arrow Scientific...

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November / December 2013 | Food&Drink business 58 year in review 2013 Pick of the products Trends in health and convenience have spawned loads of innovative new products in the food and beverage sector. Three members of the Food & Drink Business team put these to the vote to arrive at our favourite products across six categories based on three key criteria: ease of use, shelf appeal and originality.

Innovation WINNER

PRODUCT: Honey Fusions BRAND OWNER: Capilano PRICE: $3.99/185g

Capilano marked its 60th year of operation with a new range of Honey Fusion products and the introduction of squeeze tubes. The new Honey Fusion products come in four variants: Honey & Maple Syrup, Honey & Vanilla, Honey & Lemon and Honey & Ginger. The tubes make it easy to use the honey in cooking and are transportable for picnickers and campers. The panel thought this was an excellent all-round product, “A great all-round product. It also opens up a new and it scored especially well for originality and shelf appeal. market for those with a cold. Just add hot water.” - Chris Runners up:

PRODUCT: Air popped snacks PRODUCT: Hombre BRAND OWNER: and Senorita PepsiCo Australia BRAND OWNER: PRICE: $3.49/100g The Blessed Bean PRICE: $14/250g This new range of air-popped snacks is cooked in air instead Men and women have of oil to tempt back those different tastes when it consumers who have deserted comes to coffee, according the potato chip aisle in search to boutique coffee roasting of healthier snacks. The new company, The Blessed Bean. “popped” products were Because men prefer a more released under the Smith’s bitter brew, and women like and Sunbites brands, and a sweeter blend, the company contain 50 per cent less fat has created a ‘Hombre’ blend, when cooked this way. and a ‘Senorita’ product based on this premise.

Food&Drink business | November / December 2013 year in review 59

Ready to eat The panel WINNER Amanda Bryan Food & Drink PRODUCT: Birds Eye SteamFresh Rice Business editor BRAND OWNER: Simplot As the editor of Food PRICE: $3.69/400g & Drink Business, I’ve seen lots of These two additions to the Birds Eye innovative new products SteamFresh freezer range combine cross my desk this year, snap-frozen veggies with flavoured and I’ve noticed a growing trend towards long grain rice. The products come in more convenient portion sizes and health 2 x 200g single serve portions in a new claims. When in the aisles, I like to read pyramid-style steam bag that its maker the backs of packs and I often buy Simplot says helps keep the rice fluffy. products that help me cut corners. The range also uses herbs and spices rather than artificial flavours. The two Bree Edgar varieties are Rice with Mediterranean Food & Drink Vegetables and Seasoned Rice with Peas Business designer & Spinach. Not surprisingly, SteamFresh I design Food & Drink scored well from the panel for convenience. Business each month According to the panel, the pyramid bags which means I work also added shelf appeal. closely to draw out the more innovative graphical features of the latest product launches. Likewise, when shopping, the “The packaging and the design of a product and its packaging will always grab my attention first, long before product concept are I look at the price.

both quite novel for the Chris Hamilton frozen veg category.” As the marketing manager for Food - Amanda & Drink Business, I’m always interested in the innovative ways other brands engage with their customers to drive consumption. I’m also the typical Runners up: male shopper, which is at odds with my profession. As a shopper, I always know exactly what I want before I even leave PRODUCT: Steggles Chicken Filos PRODUCT: Nourish for the shops. However, I will happily BRAND OWNER: Baiada Poultry Cheesecake pay more for a product that has a real PRICE: $7.20/two-pack BRAND OWNER: social or environmental conscience. Flavour Creations The Steggles ready-to-bake Chicken Filo is filled with PRICE: $3.99/2x120g camembert, chives and parmesan, and seeks to bring restaurant-quality options to the dinner table. The new This range of cheesecakes stays line, which was launched in June, also aims to be fresh outside the fridge and has seasonally suitable, and, of course, convenient. a 12-month shelf life stored at ambient temperature, despite being made with 100 per cent real cream cheese. The cakes are also gluten and nut free, and come in four flavours – Passionfruit, Lemon, Mixed Berry and Chocolate.

November / December 2013 | Food&Drink business 60 year in review Health and wellness Runners up: PRODUCT: Chia Pod BRAND OWNER: The Chia Co. PRICE: $3.69/170g

Chia Pods contain one full serve of Australian-grown chia seeds mixed with coconut milk and real fruit. The products have no added sugar and they are also dairy free and vegan, and each provides 100 per cent of the recommended daily WINNER intake of omega 3. PRODUCT: Bite Size Cookies PRODUCT: Lunchbox Nudie BRAND OWNER: BRAND OWNER: Nudie Flavour Creations PRICE: $6.99/250ml six pack PRICE: $2.99/50g

This new line of juices for children is the first from Nudie that can Each bag of Bite Size Cookies be kept outside the fridge. Like Nudie’s classic chilled range, the equals a 50g meal replacement new products are made from fresh fruit rather than concentrate, and provides the same nutrients which is a first in the long-life juice category. The juices come in as a complete meal. They come a long-life Tetra Pak carton to last all day in the lunchbox and are in Triple Chocolate, Vanilla shelf safe for six months. According to the panel, this product stood Shortbread, Date & Coconut, out for its convenience. and Three Cheese flavours. Premium Runners up: PRODUCT: Twinings Pyramid Infusers PRODUCT: Solerno BRAND OWNER: Associated British Foods BRAND OWNER: William Grant & Sons PRICE: $6.39/32g WINNER PRICE: $70 Associated British Foods has launched a Earlier this year, Solerno, a blood premium Twinings tea range called Twinings orange liqueur made exclusively Pyramid Infusers which makes use of the on the island of Sicily, hit the increasingly popular pyramid-style bag. Australian market. The blood The range includes Fragrant Green oranges used in Solerno are Jasmine and Brisk English Morning. picked at the height of a short growing season from the slopes of Mount Etna and the essential citrus oils are PRODUCT: Caramelicious extracted and processed BRAND OWNER: Caramelicious within 24 hours. Solerno PRICE: $24/4x110g jars can be used as a base spirit as well as a modifying Victorian artisan caramel company sweetener in cocktails and Caramelicious this year added vanilla, Italian-inspired aperitivi. cocoa and cocoa hazelnut flavours to This beautifully packaged its handmade caramel product. The product scored the most caramels are used on crêpes, grilled points from the panel for bread, brioches and pancakes. They shelf appeal. can also sweeten coffee and yoghurt and decorate desserts.

Food&Drink business | November / December 2013 year in review 61 Alcoholic beverages

PRODUCT: Tap King Runners up: BRAND OWNER: Lion PRODUCT: Fog City Red Sangria PRICE: Dispenser: $32.99, Bottle: $33.00 – 48.00/twin-pack BRAND OWNER: East Ninth Brewing PRICE: $6.99- $7.99 Lion’s new Tap King draught beer dispenser and black recyclable bottles were specially designed to fit comfortably into most fridges. When Melbourne boutique brewery It is Lion’s first major product innovation outside its current range East Ninth Brewing introduced its of beer and wine brands, and was the result of two Fog City-branded Red Sangria product, years of research and development. Six Lion beers it was one of the first bottled sangrias – XXXX Gold, Hahn SuperDry, James Squire Golden made by a local company. It is made Ale, James Boag’s Premium, Tooheys New and from red wine grapes and blended with Tooheys Extra Dry – have been packaged for natural citrus fruit flavours from fruit use in Tap King. The panel gave it that would have been discarded. high marks for originality and convenience. PRODUCT: Smirnoff Double Black BRAND OWNER: Diageo Australia PRICE: $46.99

Smirnoff Double Black is a double freeze-filtered WINNER vodka and a full strength bottle spirit (40 per cent ABV) with the quality of Smirnoff No.21 vodka. The striking black bottle design breaks with the category’s convention, according to its makers, and aims to boost consumer interest within the overall vodka category.

Non-alcoholic beverages

PRODUCT: Everyday Sunday BRAND OWNER: Runners up: Rockwell Beverages PRODUCT: Lipton Ice Tea Sparkling PRICE: $3.50/250ml BRAND OWNER: Unilever PRICE: $3.20/440ml Everyday Sunday is one of the first carbonated beverages Unilever has launched Lipton Ice Tea to target the budding Sparkling, an extension to its successful Ice relaxation soft drink Tea products. The Sparkling range was created category in Australia. as an alternative soft drink that’s not too fizzy The ‘de-stressing’ or sugary. The range uses stevia and a twist of ingredients include lemon, and comes in two formats, a low-sugar passion flower, valerian option and a no-sugar option. and chamomile extracts. Rosehip puree is also added to aid in reducing PRODUCT: Water Buddies muscle fatigue, according BRAND OWNER: MMC Tradelink to its maker, Rockwell PRICE: $1.99/300ml Beverages. The product is all-natural, according Water Buddies, one of the first low-sugar kids’ to the company, and the flavoured water products in Australia, was WINNER panel gave this product created to make water fun for kids with a splash top points for shelf appeal of natural flavour and a colourful, interactive and originality. bottle. The product has no artificial colours, flavours or sweeteners and is less than two per cent sugar. It comes in four flavours including Goodie Goodie Grape and Kiwifruit and Strawbs.

November / December 2013 | Food&Drink business 62 new zealand

A spate of safety scares has taken the sheen off New Zealand’s clean green image in recent months, but how deep is the damage? Amanda Bryan takes a look. Rebuilding confidence in NZ dairy products

NEW ZEALAND’S DAIRY industry is perfectly Against this bullish backdrop, however, credi- lion in compensation from Fonterra, a figure far positioned to ride the dairy export wave. It is the bility problems continue to dog the sector. Last exceeding the $NZ14 million ($A12.3 million) pro- world’s largest exporter of dairy commodities, year, the NZ government and the industry had to vision made by Fonterra for the recall. and is responsible for around a third of interna- deal with the fallout of unlawful NZ infant for- New Zealand’s prime minister, John Key, has tional dairy trade each year. mula exports. This year, they’ve faced an even said damage from the incident would be hard to New Zealand also has a strong track record in bigger challenge: a spate of contamination scares quantify as it affected all of New Zealand’s ex- boosting its output. NZ dairy exports have dou- all crowded into the month of August. ports around the world, rather than just dairy bled in the last 10 years, and of the 19 million The most high profile of these was a botulism sales to China. tonnes of milk produced by its farmers, 95 per contamination scare from Fonterra. In early Au- “Fonterra is the poster child for New Zea- cent is exported, mostly in the form of higher gust, the NZ dairy giant said a whey protein used land’s exporting, whether we like that or not,” value added products like milk powder, butter in baby formula could contain botulism-causing Key said in a TV interview. “It’s really about and cheese. bacteria, and the scare prompted a worldwide re- what is the damage to New Zealand’s reputa- call of products. All of the product was contained tion, both for Fonterra and for dairy products, and the scare later turned out to be a false alarm but also for the wider products we sell into the when further testing showed the bacteria wasn’t Chinese market and other markets overseas.” Damage control present and there was never a health risk. However, the Dairy Companies Association A snapshot of some of the efforts being Then, around two weeks later, another large of New Zealand (DCANZ), which represents the made to restore faith in NZ dairy products. NZ processor, Westland Milk Products, had its NZ dairy industry, has rightfully pointed out export certificates for lactoferrin revoked after that the vast majority of New Zealand dairy AUGUST: Fonterra CEO Theo Spierings two batches were found to have elevated levels of products were unaffected. travelled to China to personally apologise nitrate. Its fellow NZ processor, Tatua Co-opera- “What matters most are the steps taken to keep to consumers at a press conference. tive Dairy, was also involved in the scare as it had customers safe when an incident occurs,” DCANZ bought one of the two batches of the lactoferrin executive director Kimberly Crewther said. AUGUST: A regulatory shake-up was and sold it to a Chinese customer. announced by NZ ministers to improve Then, in late August, Fonterra temporarily “Fonterra is the poster New Zealand’s food safety system. stopped its operations in Sri Lanka following al- legations its products were contaminated. A gov- child for New Zealand’s SEPTEMBER: The NZ government ernment report, which Fonterra disputed, said an exporting, whether we announced up to $2 million in recovery agricultural chemical was detected in Fonterra’s money to help smaller companies rebuild milk powder. like that or not.” customer relationships. The financial fallout of all this negative media attention, and the questions raised in buyers’ Crewther also said the negative test result for SEPTEMBER: The New Zealand Infant minds, has yet to be quantified, though a few dif- botulism was good news for all New Zealand Formula Exporters Association lead a ferent figures have so far been floated. dairy processors and exporters, as they provided delegation of 10 businesses to China to At the time of the scare, Fonterra CEO Theo further assurance to consumers and markets of talk with government officials, distributors Spierings put the cost at “tens of millions” of New the safety of New Zealand dairy products. and retailers face to face. Zealand dollars, but others say it’s much more. The “The precautionary recall by Fonterra and sub- New Zealand Infant Formula Exporters Associa- sequent response highlighted the robust pro- NOVEMBER: The food safety regulatory tion, for instance, has said its members are losing cesses and adherence to the principles of self- agencies of China and New Zealand up to $2 million of sales a week in China as a result disclosure and trust associated with New signed an agreement to strengthen of the botulism scare. French company Danone, Zealand’s food safety system,” she said. cooperation in food safety and quality, an which recalled its milk formula products in New The NZ government, however, has taken a dif- agreement that will see the establishment Zealand, Singapore, Malaysia, China, Hong Kong, ferent tack. After the botulism scare, it was quick of a joint food safety commission. Vietnam, Cambodia and Thailand following the to announce moves to tighten NZ’s food safety scare, is also said to be seeking at least $289 mil- regulations through new long-term measures

Food&Drink business | November / December 2013 new zealand 63

and a number of interim measures, such as a higher regulatory presence in plants and changes NZ dairy industry at a glance to testing across dairy production. Three months on from the scare, it looks like Fonterra Brands Open Country Dairy the fences are slowing being mended. The food Wholly owned by Fonterra, the NZ company Open Country Dairy is a privately safety regulatory agencies of China and New Zea- makes milk, cultured foods, cheese and owned dairy ingredients manufacturer. land recently signed an agreement to strengthen butter. Its operations are based at Takanini in It processes around 900 million litres of cooperation in food safety and quality, and the south Auckland. Its brands are Anchor, Fresh milk each year at three manufacturing sites. agreement will see the establishment of a joint ‘n Fruity, Calci Yum, Mainland and Galaxy. food safety commission. NZ’s food safety minis- Synlait ter, Nikki Kaye, said the agreement showed a Gardians Synlait is a dairy processing company willingness between New Zealand and China to Gardians is a privately owned dairy based in Canterbury in the South Island. work together on food safety programs. processing plant, located in the south Otago It manufactures infant and adult nutritional “It will allow [the NZ Ministry for Primary In- region. The plant produces a range of formulations, functional food ingredients, dustries] and the [China Food and Drug Admin- nutritional dairy powders focusing on a and specialised products. istration] to work together to enhance food safe- range of health and life cycle categories. ty, continually improve our regulatory regimes Tatua Co-operative and enhance the bilateral relationship,” she said. Goodman Fielder Tatua is owned by about 120 Importantly, change is also afoot at Fonterra, Goodman Fielder – Dairy is a major supplier farmer shareholders and “We have learned lessons from what has been a of dairy products and smallgoods in New its factory is located at difficult experience, subsequently found to be a Zealand. Its brands include Meadow Fresh in the Waikato region false alarm,” Spierings recently said. “Fonterra milk and yoghurts, Anchor cheese, Tararua of the North Island. has built a well-earned global reputation for butter and dips and Puhoi specialty cheeses. food safety – our co-operative is well placed, in a Westland Milk wonderful country that is the dairy capital of Miraka Products the world. We have a solid foundation to con- Miraka is a majority Maori-owned and Westland is an tinue to drive our strategy and grow. Fonterra is controlled dairy company. The owners share independent, co- emerging from this experience with a culture a vision of sustainable business practices to operative dairy of developing more transparency, accountabili- provide long-term returns for current and company on the west ty and retaining utmost focus on food safety future generations. coast of the South Island. and quality.”

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November December 2013 | Food&Drink business 64 new zealand

Barker’s vies for syrup supremacy

New Zealand’s leading fruit syrup manufacturer, Barker’s of Geraldine, is entering the Australian market with its Barker’s syrups are processed on the family farm at the foot of the Southern Alps on New Zealand’s South Island. farm-processed range. Food & Drink Business reports.

NEW ZEALAND’S TOP-SELLING premium he says, it doesn’t need to add preservatives, co- fruit syrup brand, Barker’s of Geraldine, has be- lours or flavours. Syrup snapshot gun jostling for space on Australian supermarket Barker says industry figures show the fruit shelves alongside Bickfords, Ribena and Cascade. syrup market in NZ is over twice the size of the The mainstream cordial category may be The family-owned NZ company is introducing market in Australia, which indicates there’s lots in decline, but premium cordials and fruit four premium 710ml fruit syrups to Australian su- of room for growth for the category in the Austra- syrups are experiencing growth, Michael permarket shelves: Squeezed NZ Blackcurrants, lian market. Barker says. Orange & Barley with Passionfruit, Crushed NZ Barker also says that commercial brands in The fruit syrup category is still small in Apricot Blush and Lemon, Honey & Ginger. the category in Australia are more cost-focused Australia compared to New Zealand, he Barker’s Blackcurrants and Apricots are than Barkers. says. Here it’s currently worth $48 pressed and bottled on a corner of the family “We have unashamedly left the quality in the million, according to Retail World Annual farm beside the Te Moana river, which is sur- bottle,” he says. “We are not trying to compete on Report 2012, while in New Zealand, rounded by pasture and sits at the foot of the cost. We are offering Australian consumers a which has one fifth of Australia’s Southern Alps, in Geraldine on New Zealand’s great-tasting, high-quality range that the catego- population, Aztec figures show that in South Island. ry currently lacks.” August 2013, the category was worth Two products in the range are made from He says the company’s edge lies in its use of $22 million. squeezed and crushed fruits, rather than concen- local produce that it presses and bottles itself The fruit syrup space in Australia is trate, and all of its products are free from artifi- wherever possible. dominated by the Bickfords, Ribena cial colours, flavours or preservatives. An example of this is Barker’s flagship Black- and Cascade brands. Michael Barker, the company’s co-owner and currant Juice syrup, which is squeezed from lo- Though Bickfords is most famous director and son of Anthony Barker, who founded cally grown blackcurrants. Each bottle contains for its Lime juice cordial, it has also the business 44 years ago, says the company has the juice from over 750 berries, more than any moved into milkshake mixes and been making fruit syrup since 1981 in response to other brand, Barker says. premium super fruit such as its large plantings of blackcurrants in the area. Barker’s also uses fresh crushed apricots in its Super Berry Red Juice. “We were sheep and crop farmers diversifying,” Apricot Blush product, and local clover honey with In 2007, Ribena received flack Barker says. grated root ginger in its Lemon, Honey & Ginger. after Choice magazine revealed “At the time, Ribena was the only dominant Barker says when he approached Australian the product was only five per cent brand in the fruit syrup space. As a cottage indus- retailers to stock the brand, they were interested blackcurrant juice, although the try, we developed a high quality, all natural Black- in the value and excitement Barker’s added to the issue didn’t apply to its syrups. currant syrup and we took on Ribena and won. fruit syrup category. Cascade Fruit Juices have “We are now the market leader in the New “Barker’s are not in the business of selling co- recently been repackaged and Zealand fruit syrup category, and we have a wide loured and flavoured drinks. We sell great tasting reformulated by Coca-Cola range of premium flavours, though we are only traditional fruit syrups which are high in fruit Amatil after its acquisition of the launching four in Australia at this time.” and high in Vitamin C. The squeezed Blackcur- brand from Fosters last year. According to Barker, home-made fruit syrups rant doubles as a daily antioxidant tonic, mixed are the oldest form of fruit drinks, and use a very with six parts of hot or cold water.” Cascade’s repackaged and traditional form of fruit preserving. The Barker’s range is being sold in the cor - reformulated Raspberry Syrup. Because the company still uses the traditional dial aisle at Coles stores nationwide, at a RRP recipe of half blackcurrant juice and half sugar, of $7.49.

Food&Drink business | November / December 2013 new zealand 65 Leave the hassle of Water Buddies printing your labels scoops awards to the experts MMC TRADELINK, THE maker of a New Zea- land low sugar water-based drink for children called Water Buddies that launched in Aus- tralia in March, has scooped two major NZ industry awards. The new beverage from MMC Tradelink edged out major brands such as Frucor and Coke to win the Flavour Packaging Design Award at the NZ Food Awards in Auckland, and the Best Innovative Water Prize at the NZ Juice and Beverage Awards. Flavour managing director Rome Smith says Water Buddies “ticked every box – vibrant colours and graphics appealing perfectly to the target market, clever bottle shape for little hands, sound messaging for parents, and a tamper-proof top”. MMC Tradelink MD Sian Leonard says the company had set out to raise the bar when it came to creating an alternative to sugary drinks. According to Leonard, the company’s growth has been so phenomenal, it is now looking at Good to glow: Water Buddies’ moving Australian production to Australia. new Just Like Lemonade has “We are currently in the due diligence pro- a splash of lemonade cess of exploring production benefits in Aus- flavouring and a glow in tralia,” she says. the dark wrap and cap. Label Power are specialists in full colour label and tag printing

NZ spirits maker takes Fast turnaround on Aussie rum market No need to order large volumes A NEW NZ spirits company, Stolen Rum, is moving into the Aus- Variable data printing tralian rum market armed with a distribution agreement and a new spiced variant. The Auckland company recently signed a distribution agreement with Beam Australia, which has a route-to-mar- We specialise in: ket distribution agreement with Coca-Cola Amatil. The company’s new premium spiced rum, Stolen Spiced, will lead the charge into Australian outlets, alongside two Barcode labels Chemical labels other rum products, Stolen Gold and Stolen White. Stolen Rum was launched in 2010, when its two New Zea- Beverage labels Food labels land founders committed to creating a range that wasn’t held hostage to mainstream rum philosophies. According to the pair, they sought an alternative to Blank labels Tamper evident labels the “pirates and palm trees” approach to rum positioning, and instead embraced an edgy and combative Cosmetic labels Thermal transfer labels marketing style. The approach has paid off with case sales growing 178 per cent between 2011 and 2012. The company is forecasting further growth of 208 per cent in 2013. Call us now at 07 3710 7000 “We’re aiming to not only be the fastest growing for our FREE colour label consultation rum brand in the world, but to be innovative and create one of the most loyal fan bases,” Stolen Rum co- founder and CEO Jamie Duff says. www.labelpower.com.au | [email protected] “Our spiced rum is part of a new wave of rum, it’s edgy and we think it’s what consumers want.” Brisbane Sydney Melbourne All three Stolen Rum products are (07) 3710 7000 (02) 8011 3713 (03) 9016 9761 being sold in Australia for $42.99.

November / December 2013 | Food&Drink business 66 new zealand

The plant’s multi-story manufacturing tower had to be Marmite demolished after the quake. returns after NZ quake

It took two years for the Sanitarium plant in New Zealand to recover from the 2011 Christchurch earthquake, which saw Marmite disappear from supermarket shelves.

MARMITE IS AGAIN rolling off the production made of brick, van Heerden says, the fear was that “Initial estimates for repairs were about six line after a break of almost two years as a result of the damage could cause a domino effect. months. These estimates were extended as we earthquake damage caused to the New Zealand “Anything made of brick is a problem because of found more problems with the building.” facility of its maker, Sanitarium Health & Wellbe- the way it reacts with the earthquakes,” he says. Also, during the rebuild, the company had to ing Company. That meant the company had to take down contend with aftershocks, rain, high winds and Sanitarium makes the English yeast extract the plant’s manufacturing tower, a small multi- snow. “We had everything thrown at us,” he says. spread for the entire South Pacific region in story area where all of the cooking took place. The priority, however, was on making sure the Christchurch, and following the earthquake the “We had to demolish the tower, we had to cre- plant was a safe place to work. factory was forced to suspend production to al- ate a gap in the building, and we had to take out The Christchurch plant was the only one in the low for major repair works. all the equipment and strengthen the area where region that made Marmite, so stocks soon ran out. According to Sanitarium’s New Zealand gen- the Marmite was made,” van Heerden says. Though Weet-Bix production was also affected, eral manager, Pierre van Heerden, after the earth- According to van Heerden, it would have taken because the product is also manufactured in other quake, an initial engineering assessment deemed even longer to remove and reinstall the equipment plants, retail stocks where able to be maintained. the factory to be undamaged. in a new factory, because the original plant still had The 250g Marmite product was first to return Upon closer inspection, however, it emerged to be strengthened to make it safe for staff. to the shelf, followed by a new, more squat 500g that a full shutdown would be needed to ensure “We also wanted to make sure the equipment jar that’s been designed to make Marmite remov- staff safety. remained the same so the product made after the al easier, a format that Sanitarium was preparing The company makes Marmite and Weet-Bix earthquakes remained the same,” he says. to launch before the earthquake struck. in the Christchurch plant. In order to render the Each phase took longer than anticipated, ”Very fortunately, it’s all now behind us. We are Marmite section safe, they had to create a gap of however, because the company kept finding ad- producing Marmite again and getting the stock a few meters in the main building. Because it was ditional problems, according to van Heerden. out there which is great,” says van Heerden.

“Marmageddon” over for Marmite fans Marmite was first manufactured for commercial department was the first to return to production. purposes in 1902 in England, and Sanitarium In the 1970s all Marmite production for the initially began importing and distributing to this entire South Pacific shifted to New Zealand part of the world soon after that. because of the abundance of yeast in the country. During World War I, however, the nation faced In 2011, the Christchurch factory was damaged its first shortage when the British army by earthquake and Marmite production was commandeered the entire supply, so when World suspended to allow for major repair works. War II broke out, Sanitarium secured the recipe Marmite returned to NZ shelves in March and and began producing Marmite locally in both the first shipment of Marmite went on sale in Australia and New Zealand. Australian supermarkets on 1 October. In 1966, the Sanitarium Christchurch factory Marmite is the only yeast extract spread to Marmite returned to the was gutted by fire, with all departments contain iron in the Australian market, according supermarket shelves after a suffering major damage, but the Marmite to Sanitarium. break of almost two years.

Food&Drink business | November / December 2013 new zealand 67 NZ firm wins AACo beef processing contract NZ FOOD PROCESSING systems supplier Milmeq has won an $18 million contract to supply a new $90 million beef facility near Darwin with specialist processing equipment. The contract will see Milmeq supply its NZ-developed technology to a new beef processing facility being built by beef and agricultural products firm Australian Agricultural Company (AACo) in Livingstone Valley, about 50km from Darwin. Milmeq will supply the facility with all of its processing equipment, including boning and slaughtering process equipment, refrigeration, air condition- NZ company Milmeq will supply meat ing, chilling and freezing systems, and materials handling and palletising. processing equipment to AACo in the NT. Stu Cruden, general manager for the AACo project, says the Austra - lian company chose Milmeq from a highly competitive field because of its ability to provide a total turnkey solution to all refrigeration and “We are really proud of winning this contract,” Lightfoot says. “It confirms processing needs. Milmeq’s leadership in top-end technology. We also see it as a win for the New “A major greenfields development like this attracts a lot of competition,” Zealand technology and manufacturing sector in a competitive global market.” Cruden says. “We chose Milmeq for its ability to provide a full range of spe - AACo runs more than 600,000 head of cattle, 19 cattle stations, two feed- cialist systems. lots and three farms across more than 7.2 million hectares of land in “Milmeq has an outstanding record in taking food products through the Queensland and the Northern Territory, equating to approximately 1.1 per whole processing chain. Having engaged Milmeq in the design phase of this cent of Australia’s land mass. facility we have been delighted by the expertise and experience they bring to The new Livingstone Valley facility will be capable of processing 220,000 delivering results.” cattle a year, and will put an end to the need to truck stock long distances. Mike Lightfoot, Milmeq’s CEO, says the new technology would put the The new venture to own and operate a complete processing plant is part new processing facility among the world’s leaders in moving to highly of AACo’s plans for vertically integrated beef production, which the com- automated processes. pany has been expanding over the past decade. Funding to improve food packaging

TWO RESEARCHERS FROM Massey University in New Zealand have been awarded $NZ5.1 million ($4.4 million) in government funding to seek Food Safety and HACCP Training out new packaging solutions for food exports. Senior post-harvest scientist Dr Andrew East of It is good practice to ensure that your HACCP team is the Institute of Food, Nutrition and Human appropriately trained with the skills and knowledge to Health and Professor John Bronlund of the School implement and maintain your Food Safety management of Engineering and Advanced Technology say system. This will ensure that your products meet your they plan to use the funding to develop modelling customers expectations, are safe and are of good quality. tools to assist in the design of better packaging solutions, such as cardboard boxes, for export. Advancing Food Safety, SAI Global Ltd (AFS) is a Registered Dr Andrew East from A large percentage of New Zealand pro- Training Organisation (RTO) that offers a suite of Food Safety, Massey University. duce is exported in a cardboard boxes, and HACCP and Auditing courses designed to assist you with East says they are an important tool in the supply chain in exporting food and other products. training all levels of staff within your business. Our training “Currently we have models and tools to test design, but what we are pro- is available in public courses scheduled across Australia or posing is developing models to inform design,” he says. alternatively group training at your workplace. According to East, given the sheer number of boxes used in exports, even small improvements to design could lead to quite large savings. “New package designs may have impact through improved performance 2013 Training classes now available due to better temperature control or reducing mechanical failure, or achiev- ing the same performance for lower package cost,” he says. The team will model different variables such as box shape and materials. “There are lots of things you can vary such as the geometry of the box itself Register at haccptown.com.au and the types of materials that are used to make it, and all those things are going to impact the functionality of the packaging – the strength of it, how air or phone 1300 727 444 flows around it, and the cost of it,” Bronlund says. “You have to try and balance all those things.”

November / December 2013 | Food&Drink business

FAD_Ad_1112.indd 1 10/17/2012 9:43:42 AM 68 sustainability This small cogeneration unit is providing high temperature hot water in place of heat previously supplied by gas boilers. Cogeneration is becoming The electricity is fed to a switchboard an increasingly viable energy room just next door. option for the food and beverage manufacturing industry. F&DB talks to Dr Steve Edwards from engineering consultancy pitt&sherry about how to weigh up the costs and the benefits. Cogeneration: does it stack up financially? AS ENERGY PRICES rise, cogeneration as an 1. HOW MUCH ENERGY DOES YOUR the powder plant will have a higher relative heat alternative form of energy generation is becom - PLANT USE AND IN WHAT FORM? demand. If refrigeration is taken out of the pic- ing an increasingly attractive option for new It’s worth noting that it can be difficult to get ture, each may use about the same amount of food and beverage facilities. economies of scale if a plant is too small, as there electricity relative to milk inputs,” he says. Even in the absence of the carbon tax, electric- is a maintenance requirement at the least for the Fortunately, there are many plant sizes avail- ity prices are unlikely to fall and there are predic- additional equipment, Edwards says. able, from the engines and turbines generating the tions of significant gas price rises over the next “Even if this maintenance is outsourced it will electricity through to heat recovery steam genera- few years, according to Dr Steve Edwards, princi- require a site presence that will need to be paid tors, heat exchangers and absorption chillers. pal consultant at pitt&sherry. for, along with travel costs, regardless how brief In this climate, Edwards says, cogeneration is a the time on site,” he says. 4. WHAT PRICE ARE YOU PAYING FOR tempting proposition. Typical centralised elec- “There are installation costs that will have THAT ENERGY AT THE MOMENT? tric power plants produce lots of electricity, but economies of scale and plant costs that have Once a facility has made the most effective use of they also produce a lot of heat and it takes a fair economies of scale. Up to a point, larger plants its resources, a spark gap is still required to make bit of energy to get rid of it. will do better economically. It’s an unfortunate it all work. But what happens if use can be made of the reality and a useful rule of thumb that plant sizes The spark gap is the difference in energy pric- heat? Cogeneration basically takes the generation under 1MW will struggle. It’s not that you ing between the chemical energy source, such as of electricity to the site and allows the heat to be shouldn’t look at it, but it’s one of the risk factors.” natural gas, biomass or syngas, and the cost of used for things like steam and hot water produc- electricity delivered to site. tion rather than expending the energy to get rid of 2. HOW CONSISTENTLY DOES YOUR The chemical energy is the same fuel used in it, Edwards says. PLANT USE ENERGY? boilers or steam generators on site and the elec- For dairy processing, trigeneration is par- Usage also needs to be relatively constant for the trical supply is what is used when in operation. ticularly attractive as it also uses heat to drive plant to pay for itself, according to Edwards. Edwards regards the spark gap as the ‘biggie’ refrigeration. Trigeneration using absorption Plants run better, cleaner and with less mainte- when it comes to assessing how to approach gen- chillers needs very low grade heat and can nance if they run consistently. eration in a food or beverage facility. “scavenge” what is left over after the heat is “If your plant has reasonably high energy usage “It’s actually not independent of these other fac- used for steam and hot water production. level, a mix of electricity, heat and chill, and a tors since only in extreme circumstances will it kill “This option is energetically efficient and good for consistent pattern of usage it is probably a no- a project, but if your plans have survived the stages the environment – using less energy from tradition- brainer. The things that might slow you down on of sizing and dealing with peaks and troughs then it al fuels means less greenhouse gas that path will be the basic eco- is frequently the killer. It is also the most external of emissions,” Edwards says. nomic calculation and your ap- the three factors and the easiest to model.” The question is whether these petite for risk in various areas.” It also effectively dictates the final profitability options will work economically, of any cogeneration or trigeneration operation. as they are not cheap to build and 3. WHAT FORM DOES they require additional skills THAT ENERGY 5. WHAT’S YOUR RISK OVER TIME? and maintenance. EVENTUALLY TAKE? Even if the capital cost of a plant is not a concern, Whether designing a green- It is important to make sure the the greater issue is that the primary energy sup- field start-up or a smaller plant plant being considered matches ply is not as cheap as that used at a centralised expansion, he says, there are your needs, Edwards says. power plant. To make it all pay back in an appro- five vital questions in regards “A powder plant may have little priate time requires efficient design, efficient use to economics and the environ- need for refrigeration, while a and the right energy prices, says Edwards. ment for developers to consider, cheese plant can be expected to “How we match up these differing demands is in order to know whether co- require a high level of tempera- actually a relatively simple, but highly detailed, generation or trigneration is vi- Dr Steve Edwards, principal ture control and a high level of process. The overall aim, not surprisingly, is not able for them. consultant at pitt&sherry. refrigeration usage. Conversely, to waste anything, including capital.”

Food&Drink business | November / December 2013 hen you stack Kiel Industries food grade Wplastic pallets up against others in the marketplace, you can see why Kiel pallets are used by Australia’s foremost companies. They are rotationally moulded so there’s no opportunity to harbour bacteria and are easily cleaned. They can hold up to 2 tonnes when racked. They offer rugged reliability with no fear of rust, nails or splinters for paramount Health & Safety. Plus Kiel Industries have over 50 different designs, sizes, shapes and Plus Kiel Industries have more than 50 colours on the menu to suit your differentparticular designs, warehousing sizes, shapes requirements. and colours on the menu to suit your particular warehousing requirements.

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INNOVATORS IN PLASTIC PRODUCTS 70 product news Pop-up flight cuts losses

THE POP-UP FLIGHT, a patent-pending innovation from Ammeraal Beltech, which is represented locally by Rydell Industrial (03 9555 7922), offers a simple but effective modu - lar solution to the problem of food losses on conveyor systems. The Pop-up flight pops up at the foot of the conveyor incline to support the food as it moves The Pop-up flight has been developed to stop up the elevator, holding it steady. Then, once the these product losses, and to make it easy for com- product has been successfully discharged, the panies to maintain high hygiene levels, without Check it out flight pops down again so an automatic scraper constantly having to sweep floors and hand- can clean up the belt – especially helpful for clean sticky belts. A&D Weighing (1800 241 434) has clingy food products. Sirena Cold Stores in Denmark, for instance, has expanded its EZI-Check product inspection Products which have failed to discharge and a shorter conveyor with a steep incline so its fro- range with the release of the Australian- remain on the belt on its return journey, and of- zen fish product doesn’t have time to defrost dur- made EZI-Check carton checking systems ten then fall on to the packaging hall’s floor, are ing transportation. Using the Pop-up flight, the in two versions: EZI-Check Auto and estimated to cost the food processing industry company has eliminated potential food losses due EZI-Check Basic. huge sums of money. to multiple belt transfer points. The EZI-Check Auto system has heavy- duty powered rollers with PLC control for automated and accurate carton inspection or filling applications. If the item is within Robot reworked tolerance, the conveyor moves it on; if out of spec, it stops awaiting further action. THE SCHUBERT TRANSMODULE, the world’s Selpak MD Shane Sipthorp said the trans- The EZI-Check Basic is a manual steel first transporting robot that is used in packag- module controls the product to package per- roller system that operates with physical ing machines in Australia and around the fectly from collating to carton erecting to assistance and utilises the traffic light world, has been fully reworked. closing and directly to palletising. system to prompt users of the weight status. This third generation has been used in ma- “They allow Schubert packaging machines to Both systems are freestanding weighing chinery made by Schubert, which is represent- be smaller, more compact, and flexible, and systems that can easily be incorporated into ed in Australia by Selpak (02 9585 8811), from have a vastly higher efficiency than traditional new or existing production lines and for use the middle of this year. machine transport systems,” he said. in warehouse and processing facilities. Transmodule 3.0 combines all of the new “We are deploying approximately 200 functions, ideas and experiences gained over transmodules across 10 packaging lines the past three years into its development. within the next six months across a diverse It can now take its signal wirelessly and pow- range of industries.” er inductively, which means no cables, wires, Sipthorp said initial ideas for the fourth gen- Shelf-life shot chains or sprockets are connected to it. eration have already been formulated. THE AUTOJET ANTIMICROBIAL system from Spraying Systems (03 9318 0511) provides an anti- Dry as a bone microbial shot that can boost the shelf-life of packaged meat and poultry by up to 40 per cent. CHEP Australia (02 9856 2437) has Victoria was the first to install the new The technology controls pathogens such as launched new dryer technology for the dryer technology, which uses centrifugal E.coli, Salmonella and Listeria monocytogenes. fresh produce industry that delivers an 80 force to remove 98 per cent of the excess The process, which has been validated by the per cent drier crate. water from each crate, and fresh produce USDA/ARS, uses the sprayed lethality in con- According to CHEP, this makes its reusable distributor, Moraitis, was one of the first tainer (SLIC) process, which allows an antimi- plastic crates the driest on the market. to benefit from the drier crates. crobial agent to be sprayed into a vacuum pack- CHEP’s Scoresby service centre in “In our business, moisture levels are age before the meat is inserted. That ensures an critical to quality,” Moraitis national even distribution of antimicrobial agent around equipment controller, Ashley Lockett, the product. Precise dosing of the antimicrobial said. “We are very happy with the agent is achieved by using customised PulsaJet results from the new centrifugal crate spray nozzles while SprayCheck sensors are dryer – it has already improved our used to make sure the proper dosage has been ability to transport fresh produce to administered into each package. market in peak condition.” Depending on the product being processed, CHEP’s senior director supply chain, multiple antimicrobial shot sizes ranging from David Hansen, said CHEP can now five to 40ml can be sprayed into the packages supply crates with less than three with the assistance of the system’s touch grams of water, which is ideal for some screen controller. fruit and vegetables such as onions.

Food&Drink business | November / December 2013 Aztro_thirdpgvert_PKN0210_HiRes.Page 1 2/15/2010 3:59:24 PM

product news 71

Smarter supply chain

Dematic (02 9486 5555) has launched a “The logistics IT area is so dynamic, new website, www.realtimelogistics.com. with new technologies and software au, to help companies make their supply breakthroughs occurring at such a rapid chains smarter. rate, we felt it best to create a new The website provides the latest portal where logistics and IT information on technologies, software and professionals could keep up to date with applications across a broad range of supply ongoing developments,” he said. chain applications. The technologies covered on the website include voice-directed computing, wireless networks, and hand-held and vehicle-mounted computers. According to Brian Lang, general manager of Dematic’s real time logistics division, the initiative was customer driven and reflected the ongoing development of new, smarter, integrated IT solutions for supply chains.

Closure torque testing

SI INSTRUMENTS (08 8352 5511) has released the complete range of Mec- mesin closure torque testers in Australia and New Zealand. Closure torque testing is a measure of the torque force required to either apply or remove a cap or lid on a container. This is frequently a two-stage measurement. If the cap is tamper-evident, slip torque and bridge torque are measured. If the closure is child-resistant, a concurrent measure of downward load applied must also be made. The correct performance of container closures is always quality-critical, and in many cases it is safety-critical. According to SI Instruments, Mecmesin’s Vortex-i computer-controlled torque testing system gives optimum testing performance and evaluation options, enabling users to get the most from their test measurements. Vortex-xt touch-screen controlled torque testing systems enable fast and efficient testing on the production floor. The entry-level Vortex-d motorised test stands are a cost-effective solution for straightforward torque tests. Magnetic thickness gauge

OLYMPUS (1300 132 992) has released the The probe’s Hall effect sensor measures the Magna-Mike 8600 Hall effect thickness gauge distance between the probe tip and the target for accurate measurement of the thickness of ball, which is instantly displayed as an easy-to- thin-walled items such as blow-moulded plas- read digital thickness reading. tic bottles. Material properties do not affect the instru- The Magna-Mike 8600 can also be used on ment’s accuracy. glass and composites, as well as any non-ferrous metals such as aluminium, brass, copper and titanium, with a thickness range from 0.001 mm to 25.4 mm. The Magna-Mike 8600 is portable and uses a magnetic method to make reliable thickness measurements on non-ferrous materials. The magnetic probe is held or scanned on one side of the test material while a small target ball is placed on the opposite side or dropped inside a container.

November / December 2013 | Food&Drink business 72 new in store What’s new New turf for Tim Tam Arnott’s is moving into confectionery territory with the launch of its Tim Tam Chocolicious Bites. this season The bite-size pieces, which are wrapped as a twin-pack and sold in a multi-pack bag, come in three flavours: Original, Gooey Caramel and Cop this Dark Chocolate. Lion has added to its James Squire craft beer The launch will be accompanied by a marketing range with a deep golden English-style ale called campaign in which consumers get to decide whether The Constable Copper Ale. the product is a biscuit or a chocolate on its social media channels. According to James Squire’s owner Lion, like “Tim Tam is the only chocolate biscuit that stirs emotion in Australians its other beers, The Constable Copper Ale pays that’s beyond reason,” Susanna Polycarpou, Arnott’s brand director, said. tribute to a chapter in the life story of the historic “Whilst Tim Tam is the ultimate chocolate biscuit, new Tim Tam brewer, James Squire. Chocolicious Bites are the ultimate chocolate fix. So we’re encouraging Squire transformed himself by playing fans to try the new product and are handing it over to them to decide by different characters throughout his life, from a voting biscuit or chocolate.” chicken thief and convict to a wealthy farmer Tim Tam Chocolicious Bites retail for $3.99 in supermarkets. and Australia’s first brewer. Squire spent his later years as a district constable. Malt Shovel head brewer Jeff Potter said The Constable Copper Ale was brewed in the style of an English ordinary bitter. Bean power It has a deep golden colour and a rich New Zealand company LHF has rolled out two creamy head, a balanced nose of floral, new meat-free products to its Bean Supreme citrus and earthy notes and a moderate brand: Falafel Kofta and Gourmet Burger Pattie. hop-bitterness that lingers after the firm Bean Supreme Falafel Koftas are made from malt backbone, Potter said. chickpeas, broad beans and fresh herbs all “This is a classic British ale style that blended together. we’re very excited to share with The Bean Supreme Gourmet Tofu Burger is Australian drinkers as they continue to made using whole soy beans that are pressed explore the range of craft beers out there. in a traditional manner before being flavoured “We have used a unique combination of with herbs and spices. malts and hops to brew The Constable Both products retail for $6.89 and are Copper Ale. Pale, Munich and Crystal malts available in Woolworths. join Super Alpha, Topaz, UK Fuggles and Galaxy hops in a flavoursome, refreshing ale that we think beer drinkers will love.” The brew will be a permanent addition to the James Squire range and it has been Exotic honey buzz rolling out nationally on tap and in pack A premium home-grown honey product sourced from beehives at since 28 October. Sydney's Royal Botanic Garden is now commercially available. The RRP for a six-pack is between As the Botanic Garden has an abundance of a wide range of $18.99 and $19.99 and a carton of 24 flowering plants, it’s an ideal environment for beehives to flourish bottles is between $59.99 and $60.99. and produce delicious honey, according to its caretakers. The bees also play a vital role in plant pollination in the garden, and income generated from the sale of the honey, which sells for $11.95 a jar, will go towards plant conservation. “There is a buzz here because the income we generate from the Bulla’s creamy new treat honey brand will go directly back into the garden’s conservation Bulla Dairy Foods has launched a new product, programs,” acting executive Bulla Flavoured Cream, that comes in vanilla director of the Royal Botanic and chocolate. The products are made with Gardens and Domain Trust, Madagascan bourbon vanilla bean extract Dr Brett Summerell, said. and cocoa respectively. It is also very important bee Bulla said the thick, smooth texture of the populations remain healthy and new products provided a decadent treat with no plentiful, he said. whipping required. “In each of the five beehives at “Delivering a perfect dollop straight from the the garden there are at least tub, Bulla’s new flavoured creams are the perfect 80,000 bees. It’s rewarding for us accompaniment to delicious desserts,” the to contribute to sustainability in this company said. way when bee populations around The new flavoured cream products retail for the world have been dwindling.” $2.99 and are available in selected Woolworths The new honey venture has so and independent supermarkets around Australia. far produced 130 jars, which are on sale at the Garden Shop.

Food&Drink business | November / December 2013 new in store 73

Out of the tub Nanna’s enters

Peters Ice Cream’s premium tub brand doughnut Connoisseur is being released on a stick. The new stick collection is made up of five ice domain cream flavours: Madagascan Vanilla, Murray Patties Food’s frozen River Salted Caramel with Macadamia, Kangaroo desserts brand Island Honey with Pistachio, Sumatran Coconut Nanna’s is moving and Cookies & Cream. beyond fruit pies and The range is being positioned by Peters as the into European-style only Australian-made gourmet ice cream on a stick. doughnuts with the “The new Connoisseur range aims to set a new launch of a new standard for premium stick ice cream and break the ‘special treats’ range. category conventions,” Peters Ice Cream head of The new Nanna’s marketing, Emma-Jane Collins, said. Donut range includes “Connoisseur challenges consumers to taste Mini Jam Ball Donuts, the difference that good quality ingredients Mini Donuts variety sourced from around the world and tailored to pack with three different an Australian palate can make.” flavours (sugar-coated, The range is available at Coles, Woolworths white-iced with sprinkles and chocolate and select independent retailers. The RRP is iced), and Choc Hazelnut Filled Donuts, $3.80 each or $7.99 for a four-pack. which are individually wrapped. According to Patties, Nanna’s Donuts are made with a traditional yeast-raised recipe, which gives them a richer texture and the Snot and guts: convenience of thaw-and-eat serving. Nanna’s marketing manager, Jane Peters’ latest flavours Westney, said while traditional apple and fruit pies remained a family favourite, new Peters Ice Cream has also launched a new ‘gross’ range of ‘special treat’ Nanna’s Donuts had been icy treats called Zombies that come in two ice block variants: developed to cater to an emerging Snot and Guts. consumer trend. Guts is a lime flavoured ice block with a crunchy popping “Time-poor consumers and smaller candy centre, and Snot is cola flavoured with a sticky lemon household sizes are driving increased centre, and both were launched to coincide with Halloween. demand for snacking/treat-sized products According to the company, Halloween celebrations are on that are quick-serve and offer good the rise in Australia, and the latest McCrindle research shows portion control,” Westney said. one in four Australians now get involved in the celebrations “There’s also a trend to tap into more on 31 October. indulgent flavours, like high quality Peters’ head of marketing, Emma-Jane Collins, said chocolate, as consumers demand more Peters prided itself on being in touch with the latest trends, enticing and fun products.” and Zombies were hot property right now. Nanna’s Donuts are available in the “We wanted to create an iced treat that was fun and frozen desserts section at Woolworths quirky, reminiscent of the kind of ice blocks we enjoyed and most major independent as kids, but for a modern generation.” supermarkets nationally, with a RRP of Peters is now owned by Pacific Equity Partners, after being $5.99 for the nine-pack Mini Jam Ball sold off by its former parent, Nestlé, in August last year. Donuts, nine-pack Mini Donuts and Zombies are available now at milk bars, and in petrol and five-pack Choc Hazelnut Filled Donuts. convenience store freezers for $2.00 each.

November / December 2013 | Food&Drink business

Untitled-3 1 26/07/12 10:47 AM 74 retailing

IGA rolls out a massive shopping trolley

IGA HAS LAUNCHED a new “Gigantic Sale” campaign featuring a massive shopping trolley that is about 2.4 metres high and was specially built for the campaign. The trolley is featuring on TV, online, in-store Consumers are encouraged to “shop big” at IGAs. and catalogues to encourage shoppers to “shop big” at local IGAs and SUPA IGAs where they can one of 2,500 double passes to Taylor Swift con- get a “substantial percentage off a huge variety of certs in Sydney, Brisbane, Perth and Melbourne. products during the campaign”, according to IGA. General marketing manager of Metcash Food & With every $30 purchase during the campaign, Grocery, Michele Teague said the campaign would IGA customers will get a chance to win a share of resonate with local communities and “demon- Supermarket clout a $100,000 shopping spree. IGA has also teamed strates IGA’s commitment to competitive pricing a global problem up with Coca-Cola to offer fans the chance to win across our independently owned supermarkets”. The power of the mega-retailers is the single biggest constraint on business growth for food and beverage manufacturers around the Retail rethink: low prices not driving sales world, according to a new report. The study by advisory firm Grant DESPITE THE PRICE war currently underway in Australia’s re- Thornton, ‘Hunger for growth: Food and tail sector, only one per cent of shoppers believe they are getting Beverage looks to the future’, found that better value, according to research by Nielsen. more than half of food and beverage The latest figures show low promotional prices are not driving executives rated market dominance by top-line growth in the current retail market, according to retailers as a significant or moderate risk Nielsen’s head of retail, Kosta Conomos. to their supply chains and organisations. “Just one per cent of shoppers believe they are getting better value Grant Thornton Australia’s national overall compared to last year, and instead are using promoted prod- leader of food and beverage, Tony Pititto, ucts to supplement their shopping basket as a whole,” Conomos said. said given Coles and Woolworths “The key retailer battleground is set to become how to deliver controlled around 70 per cent of retail more value,” he said. sales, Australian food and beverage According to Conomos, when asked what good value entails, companies were equally affected. just 20 per cent of Australian shoppers said ‘low prices’. In con- However, he said that they could boost trast, ‘fresh food and groceries’ was favoured by 30 per cent, 27 their bargaining positions by building a per cent wanted ‘good private label alternatives’; and 23 per cent product leader, developing niche markets said ‘good deals and promotions’. and diversifying their product portfolios. Lower prices don’t equal better value, says Nielsen. 2013 diary UPCOMING EVENTS FOR THE FOOD AND BEVERAGE INDUSTRY

13-15 NOVEMBER 2013 2-3 DECEMBER 2013 27-29 MAY 2014 FHC China & ProWine China Food Regulations and Labelling Standards Vinexpo Asia-Pacific Shanghai New International The Sydney Harbour Marriott Hong Kong Convention & Exhibition Centre, Expo Centre, China Circular Quay, NSW Hong Kong www.fhcchina.com www.informa.com.au/conferences/food- www.vinexpo.com www.prowinechina.com conference/food-regulations-and-labelling- standards-conference 22-25 JUNE 2014 14-15 NOVEMBER 2013 Foodpro 2014 World Class Packaging 24-25 MARCH 2014 Melbourne Convention Hilton on the Park ausdrinks Conference & Exhibition & Exhibition Melbourne, VIC Q1 Resort & Spa, Surfers Paradise, QLD Centre, VIC www.marcusevans-conferences-australian.com www.australianbeverages.org/ www.foodproexh.com eventsausdrinks/ausdrinks- 19-21 NOVEMBER 2013 conference-exhibition/ 23-25 SEPTEMBER 2014 Fi Europe & Ni Foodtech Packtech Messe Frankfurt, Germany 30 APRIL 2014 ASB Showgrounds, Auckland www.fi-europe.au ConTech2014 New Zealand Pullman Melbourne Albert Park, VIC www.foodtechpacktech.co.nz www.contech.aigroup.com.au

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