Poultry producer gets a set-and-forget lubrication solution

When a food processing and packaging customer within the poultry industry sought the expertise of CBC Australia to set up a new lubrication store solution for their facility, the CBC team collaborated with Alemlube and CRC Industries to meet and exceed the customer’s requirements.

CBC Australia Sales Representative, Debra Fitzpatrick, says their customer was required to meet stringent government regulations for food safety standards and environment protection.

“Understanding these requirements, we worked with our trusted partners, Alemlube and CRC Industries, to offer a set-and-forget solution that made regulatory compliance much easier for our customer,” she says.

The new lubrication store was equipped with the help of oil containers, lids, pumps and hoses provided by Alemlube, as well as a whole range of food grade oils, sealants and greases from CRC Industries. Adding a CRC SmartWasher also provided additional safety to the plant.

“CRC Industries offers a wide range of NFS H1 approved lubrication products. All of CRC’s food grade lubricants comply with Hazard Analysis and Critical Control Point (HACCP) requirements so the customer can be assured of the highest degree of safety,” says Fitzpatrick.

Cross contamination was another concern for the plant. The lubricants needed to be categorised and stored properly to avoid the risk of someone using a non-food-rated product in the food manufacturing process.

Fitzpatrick says using the Alemlube iCan range of products overcame this risk completely.

“The Alemlube products are designed to make the maintenance and upkeep of equipment easier. The lids are color coded to avoid any confusion and minimise the risk of cross contamination. The quick fill ports also help avoid foreign particle ingress during refilling,” she explains.

To further simplify the quality assurance audit processes, CBC also recommended that the customer gets on board with CRC’s Greenlight Food Safety Program.

Iain Faber, National Channel Manager at CRC Industries, says the CRC Greenlight Program incorporates extensive training with the staff in maintenance and quality assurance departments to help them achieve a high level of regulatory compliance within their plant.

“As part of the Greenlight Program, CRC offers on-site training to maintenance for use and storage of food grade lubricants and cleaners to ensure NSF certification compliance. CRC also provides the customer with an audit compliance folder, which contains TDS, SDS, Allergen certification and global NSF certification,” he says.

“As well as this, the SDS certificate is printed on the underside of the label on CRC’s Food Grade aerosols. They also come complete with the CRC Permalock straw which is a locked in straw and spray actuator that reduces the risk of contamination.”

“Moreover, CRC helps customers with product swap outs based on their technical requirements and aligns the program with the customers’ current on-site audit and inspection programs. We also offer on-going support to technical staff, chemists and field support staff via online or on-site visits.”

Representatives from CRC Industries met with the technical team at the poultry plant to take them through the required trainings and demonstrations.

The CBC team also recommended adding a CRC SmartWasher to the lubrication store as an environmentally friendly parts washing solution.

“The CRC SmartWasher has a compact design and uses the Ozzy Juice cleaning/degreasing solution for washing parts as an environmentally-friendly alternative to solvent and aqueous-based parts washers.  The Ozzy Juice is also NSF compliant as well as certified AsureQuality” says Faber.

“The SmartWasher Bioremediating Parts Washing system is both self-cleaning and safe for the user. Through the process of bioremediating, the SmartWasher constantly maintains the cleanliness of the Ozzy Juice cleaning/degreasing solution without the need for hauling away of used fluid,” he adds.

CBC’s Food and Beverage Business Development Specialist, Matthew Byrnes, says the successful delivery of the required products, as well as the subsequent recommendations by CBC for additional services to the customer, came at the back of a long-standing relationship between CBC and their customer.

“Our customers trust us to meet their operational needs for quality parts and services and we deliver that by understanding their needs – sometimes even before they arise – and always being ready with the most suitable solution,” he says.

“We have built up this reputation over many years of service to the industry and working with reliable partners. When customers ask for certain products, we don’t just deliver that particular product to them. We look at their overall process and see what can be further added to help them achieve their objectives,” he concludes.

Read more articles like this at: www.lets-roll.com.au

Compressing the right information for customers

The food industry needs to operate efficiently to ensure quick delivery of produce, so it is as fresh as possible for customers. To meet this standard, reliable air compressors with a proven track record of success are required.

Air compressor faults take time to repair and that downtime also threatens required delivery objectives, especially for fresh produce going to market.

It is for this reason David Malthouse, BSC Product Specialist, says the company only works with leading air compressor manufacturers.

He says the BSC teams’ product knowledge combined with proven products, enables BSC customers to get the best outcome for their processing plants.

One such air compressor manufacturer is Peerless. Troy Jamieson, Peerless National Sales and Marketing Representative says every machine the company supplies comes with a recommended service guidance.

“At each factory we also run and test everything so that when we supply the product to BSC we know we have tested it for a good two to three hours or more,” Jamieson says.

He says in the food industry it is really important to have both the right compressor and the right filtration.

“Air compressors can start delivering air from 1 litre to 6500+ litres, that is why it is very critical we talk to the consumer about what their air requirements are and how that can be best serviced,” Jamieson explains.

This is where BSC and Peerless’ close relationship becomes a critical factor in customer service.

“We work very closely with our partners in the market. They might contact us and say they have a consumer and they want to get advice from the manufacturer. In these circumstances we try and work as a unit to ensure we are quoting the right compressor for the right application,” Jamieson asserts.

David Malthouse at BSC agrees, saying the company use staff knowledge to ensure customers end up with the best suited product.

“Our team have the practical knowledge and expertise to make educated industry relevant recommendations for air compressors, and a vast array of other products, to benefit customers,” Malthouse enthuses.

BSC can supply air compressors to suit various food and manufacturing plant applications from their range of branches throughout Australia.

“BSC can offer customers same day delivery, based on their location, in order to get any processing plant up and running as soon as possible,” Malthouse says.

When purchasing an air compressor, the BSC team are there to support and advise the customer for any application.

“We can calculate and recommend the correct size and volume of air required to service a site. We can also interchange and identify the difference between compressor brands, so the customer is supplied the right one,” Malthouse adds.

“We also recommend service agents for all brands and can offer engineering support through our own engineering section.”

One BSC customer is a major Australian horticulture company, Costa Group, and in May of 2019 they approached BSC in the search of a new air compressor requirement for its Monarto mushroom farm site expansion.

The compressor was required for two new Evolable machines, capable of labelling 240 punnets of mushrooms every minute. In addition to labellers, the compressor also needed to provide air to Costa’s Ishida machine, indexing conveyor and bucket elevator.

The team at BSC Lonsdale, which service the Monarto site turned to Peerless to relay the customer’s needs.

Costa, Peerless and BSC then worked together to determine a suitable screw compressor unit to best suit the Monarto site.

This was the Peerless HQ10/8, capable of delivering 1200LPM or air at 116PSI (8BAR) which can be fully regulated down to the desired PSI settings. It was also fitted with an oil separator and flow meter.

Costa initially had concerns around the oil separator and filtration on the Peerless HQ10/8, which Peerless quickly confirmed exceeds the requirements of the AS/ NZS1715 with regards to particle removal and oil carryover.

After negotiation with pricing and delivery, Costa were satisfied with the end result and proceeded with the order.

Finding the right solution for customers like Costa is what Malthouse likes most about his job.

“The best part of my job is the people,” he says. “My drive is to help all the people I deal with and do my best to solve any issues they have locating required products, to service their efficiency needs.”

Read more articles like this at: www.lets-roll.com.au

                                                 

Volt belt leads the charge in ATEX environments

The explosive nature of grain and flour dusts is well-documented, with some of the worst industrial accidents in the world caused by explosions from dust clouds. Research published in the United States additionally reveals that 50% of all explosions from combustible dusts in the 20th century occurred in grain silos and flour mills1.

Dusts from wheat are particularly dangerous, as the source of heat required to ignite them is minor. Not only are accidents relating to static electricity common, and can cost businesses millions of dollars in equipment and production losses, they also pose significant risks to workers.

This is why it is so important that the componentry on food and beverage (F&B) applications that involve the handling of grain and flour, are designed to dissipate static electricity. Just as recently as May 2018, a flour mill in New South Wales experienced an explosion that left one worker injured and a whole section of the mill seriously damaged2.

Moreover, safety codes for the avoidance of hazards due to static electricity are vital and are constantly updated in industrial environments3. The international standard ISO 9563:2015 defines the requirements for antistatic synchronous belts in the workplace, specifically for new belts intended to be used in an explosive atmosphere or in situations where there is a fire risk4.

According to Steve Hittmann, who is the National Product Manager for Mechanical Drive Systems and Belt Drives at CBC Australia, the electrical resistance of synchronous belts used in F&B applications that handle grain or flour in their processing, cannot be understated.

“Components like roller chains simply cannot be used in these environments. A roller chain is metal to metal and produces sparks. But even a standard timing or V-belt will produce static electricity,” he explains. “Combustible dust in any food and beverage plant that involves baking or the handling of grain is a real hazard. And while there are a number of synchronous belts available for power transmission in these applications, the industry-leading Gates Poly Chain Carbon Volt belt is by far the safest on the market.”

Importantly, Hittmann points out that the ISO 9563:2015 is limited to new belts only. Despite this, the Gates Poly Chain Carbon Volt belt holds to the standard over the entire lifespan of a belt.

“Antistatic power transmission belts should not just be meeting this standard when they are new. That poses a significant risk to any ATEX (ATmosphere EXplosible) environment,” Hittmann states. “To ensure the highest level of safety, their capacity to safely dissipate static electricity should meet those ISO 9563:2015 requirements over the lifetime of the belt.”

Iain Street, the Business Development Manager of Power Transmission for Gates Australia in NSW, concurs with Hittmann’s statement. He further acknowledges that the Poly Chain Carbon Volt belt is the only belt to actually meet this level of safety.

“The Gates Poly Chain Carbon Volt belt is the only belt on the market that meets the ISO 9563:2015 standard over its complete lifespan,” he explains.

“Industry standards don’t define the used belt conductivity, and typical rubber belt conductivity declines rapidly with use. The safety risks of this in volatile environments – such as those common to F&B applications that involve the handling of grain or flour – are very significant.”

The Gates Poly Chain Carbon Volt features patented static-conductive fibers that safely transfer static electricity to carbon tensile cords – away from the driven side of the application. According to Street, this makes it the “safest and strongest option for applications in ATEX environments.”

“No other rubber or polyurethane belt can match it,” he further asserts. “As part of the world-recognised, industry-leading Poly Chain belt system, the Carbon Volt also offers the advantage of higher horsepower, reduced drive size and lowered component costs.”

As a national distributor of Gates Australia, CBC also work together with the Gates engineering team to ensure that Volt belts are properly installed and working at their optimum.

“It’s a partnership through and through,” explains Hittmann. “We’ll consult with Gates engineers on the correct design and tensioning of the Volt belts, using the Gates DesignFlex Pro software. We’re also committed to the safety of our customers in their workplace, so making sure these are set up right is of utmost importance.”

Read more articles like this at: www.lets-roll.com.au

                                                   

References:

  1. Cause and prevention of dust explosions in grain elevators and flour mills
  2. Manildra Australian flour mill restarts operations after explosion
  3. Accidents and Losses Caused by Electrostatic Discharge
  4. ISO 9563:2015
  5. Gates Australia Poly Chain Carbon Volt belt brochure

Bürkert partners with breweries who are ready to expand

If there is one thing that a brewery needs it is reliable field devices when it comes to measurement and control systems. Making beer is a fine art, and that is something that is not lost on fluid control system specialist Bürkert.

At a recent installation in Germany, Bürkert’s products were installed to help with the automation of a brewery. It was an interesting case study on how modernising a brewery can not only help streamline processes, but also provides an insight on what it takes to upgrade plant and machinery.

Based in the German state of Bavaria, the pilot brewery of Weihenstephan’s research centre for brewery and food quality has existed in one form or another for centuries. In its current state, automated flowmeters, process control valves, solenoid valves, pneumatic actuators and “smart” valve islands make manual adjustments of plant and machinery unnecessary. This not only saves time, but also enables monitoring of the recipes developed or tested here possible at any time. The control system is kept so simple that the master brewer can create, operate and modify recipes from a PC using an Excel spreadsheet.

Where beer is reinvented every day
The pilot brewery enables the creation of pilot brews for all kinds of beer, fermented malt drinks and mixtures. Pilot brews are prepared both in the name of research and on the basis of orders, ultimately resulting in drinks for consumption. This process starts with the mashing, brewing and fermentation processes through to the testing of suitable yeasts, microorganisms, ripening processes and filtration capabilities.

The desire for greater process quality
The pilot brewery has an output of 50 litres of wort and a capacity of nine fermentation tanks capable of holding 60 litres each. Beyond that, the brewhouse and the lautering process of the “mini brewery” are no different from those of a larger facility.

Until now, most things were adjusted manually. This applied to the control valves in the water intake for mashing and sparging, through to the control valves for the lautered wort and to the pump used to drain the wort tank or to adjust the height of the rake arms. There was no scaling here and the rake motor always ran at the same speed.

To achieve a better basis for future research work, those responsible at the research centre decided it was time to modernise the plant automation. However, the decision-makers felt it was important to be able to intervene in the system at any time, even after its modernisation.

The small brewery picked a competent partner that has developed multibrauplus, an automation solution specifically tailored to small and medium-sized breweries. Based on a Simatic S7 from Siemens and graphical visualisation, all the functions – from malt storage bins to fermentation cellar – could be automated. Despite this, the brewers were still left with sufficient leeway to take decisions, since Excel was deliberately chosen as the dialogue medium with the process control system.

The “programming” activities are limited to filling out a standard text list, which was then interpreted by the process control. The monitors, calculations and control functions included in the commands were managed by the process control alone.

From control valve to flowmeter
However, process control alone does not make automation possible; since automatic control valves, flowmeters and pneumatic actuators are required to automate existing manual valves. As a fluidic system expert, Bürkert, supplied and installed the required hardware for the fluidic systems, handled the installation of the wiring and hoses, and supported start-up.

The range of applied fluidic components covered the process control valve used for the steam needed to heat the mashing and wort tank, the temperature controller on the wort cooler, various flowmeters and a valve island mounted in the control cabinet that is used to control all of the valves installed in the process. The height of the rake arms of the lauter tun was also adjusted automatically using a solenoid valve. The existing flap valves were overhauled and equipped with pneumatic actuators. Furthermore, there was also a brewing water storage tank in which the water could be precisely blended using a modular blending unit.

Valve island as an automation system
The entire pneumatic system was controlled by a valve island. This was directly installed and shipped in a stainless steel, hygienically designed control cabinet with the stainless-steel control AirLINE Quick base plate to save space.

The stainless-steel control cabinet was well suited to the small pilot brewery. All of the valves also had a P-channel shut-off mechanism, which meant they could be switched out even while the machine was in operation without shutting it down.

A worthwhile investment
For the pilot brewery, the investment in cutting-edge automation technology has paid off. A high degree of reproducibility and traceability was simple with this solution, as data acquisition was integrated into the control system. Product-specific information could be displayed graphically along with other measured values. Thanks to the partnership, the system was prepared for start-up quickly and easily.

With Australian breweries sprouting up at a rate of almost one every two months, it is important to know that these types of upgrades are also available for small- to medium-sized Australian breweries. Bürkert’s Pacific sales manager, Tom Kirby, has been with the company for 16 years and he said the company is geared up to help breweries upgrade. And he knows it’s not just about the field devices supplied.

“We try and design a support and an automation package that caters for a small to large applications or requirements,” he said. “The key for an individual brewery is to directly align our solution to their particular business model that is, using their longer-term vision to define what their requirements should be, while still maintaining their unique identity and their own personal craftsmanship.”

Plant reliability helps provide uniformity and consistency for each and every batch.
“What needs to be taken into consideration is the dedication to their brand, their brew and varieties that they are trying to produce, making sure you get the same consistency in taste – batch after batch,” said Kirby. “I also think it is a situation where it comes down to the marketability of the product. You want to be able to show that what you are doing with your product is a bit special.”

Kirby is also clear on how he sees the relationship between his company and potential clients.

“Bürkert is solution orientated, with those businesses ready to automate their processes,” he said. “Bürkert’s approach is to look beyond a single project with a client. It is partnership for us. We believe in a joint venture approach in identifying the correct solution needed, customised to each application. That’s what makes Bürkert unique.”

The dangers of going dark: Why a strong marketing presence now is key to increasing market share post-COVID

Prime Creative Media continues its Engine Room series, offering complimentary resources to companies to help navigate the COVID-19 crisis.

John Murphy, CEO Prime Creative Media, offers this guide on the dangers of ‘going dark’ in times of crisis, and how to drive a strategy to maintain or even increase market share as the economy recovers.

International malt producer saves money with anaerobic digestion

In Australia, Muntons is best known for its range of home beer-making kits, made from UK malting barley to emulate classic beer styles from around the world.

However, the company is also a producer of a range of malt products for food manufacturers around the world. Muntons also believes in sustainable production. Since early 2016, the company has operated a novel closed-loop system, which turns some 80,000 tonnes of liquid malt waste into a high-quality biofertiliser at its production plant in Suffolk, England.

The basis of the system is a $9.4m, 499kW on-site anaerobic digestion (AD) plant that generates 25 per cent of the site’s electricity and turns 80,000 tonnes of liquid malt waste a year into quality organic digestate fertiliser, which is used by the company’s network of growers. In turn, they produce some of the 250,000 tons of barley needed to make 180,000 tonnes of Muntons’ malt each year. In the process, the company has saved more than 800 tonnes of CO2 emissions and saved more than $5.95m in electricity and waste disposal costs.

Muntons, which has sustainability at its core, first became interested in AD after analysis showed that 60 per cent of the carbon footprint of its supply chain came from the artificial fertiliser used by its barley growers. The company realised that if a proportion of the liquid waste it produces every year could be treated through AD, it could produce a high-quality, organic biofertiliser for its farmers to use instead therefore closing the loop between farm and fork and reducing its carbon footprint.

The new treatment removed the need for these journeys, and also captured nutrients such as phosphate, which were previously lost when treated effluent was discharged to the river. The digestate product is high in organic matter and acts as a soil conditioner and improver. It also has a longer period when it can be applied to the land than the liquid waste that was previously produced.

Ensuring digestate quality
Unlike conventional AD plants, Muntons’ plant uses a combination of both anaerobic and aerobic processes to treat its digestate, meaning that for technical reasons the resulting sludge cannot be certified as meeting the UK standards for compost and digestate. These standards, known as PAS110, provide a guarantee to users that the digestate product meets certain quality parameters and mean that it is exempt from further waste legislation, so that it can be applied to fields as a fertiliser. However, the process includes a pasteurisation step and the resulting material is treated in accordance with the requirements of the PAS110 standard for anaerobic digestate, based on conventional Hazard Analysis Critical Control Points (HACCP) principles. This helps to assure local farmers that the final biofertiliser contains no ergot or plant pathogens contaminants.

According to, Muntons’ site and waste water supervisor, Paul Mead, a pasteurisation system from HRS Heat Exchangers was a crucial part of the entire process.

“We want our biofertiliser to compete in the agricultural market with the likes of PAS110 digestate and other biosolids that have undergone pasteurisation. Even though we are considered low risk and all our feedstock is from traceable, food-grade grains, we felt that pasteurising our material is the best way to help us get End of Waste Certification. It also reassures local farmers that we will not contaminate their land with ergot or plant pathogens.”

Muntons commissioned a 3-Tank Batch Sludge Pasteuriser System with Energy Recovery from HRS Heat Exchangers to treat the anaerobic and aerobic wastes. Almost 200m3 (53,000 gallons) of high liquid waste, with a high chemical oxygen demand (COD), is treated each day and as well as the CO2 savings, the project has saved Muntons more than $5.95m in energy and disposal costs to date.

The digestate was blended with low COD effluent before being treated with Dissolved Air Flotation (DAF) in Muntons’ existing activated sludge plant. This stabilised the digestate and removed further COD, nitrates and phosphorus, prior to the effluent being discharged to local waterways in accordance with an Environment Agency permit. The remaining sludge was then pasteurised in the HRS 3 Tank unit and used as biofertiliser.

Although the material cannot be certified to PAS110, it has been granted End of Waste Certification by the UK Environment Agency, meaning that it can be used as a biofertiliser.

The benefits of pasteurisation
The HRS system works on a three tank principle; while one tank is being filled, the second tank holds the sludge at 70°C, at the same time as the third tank is being emptied (each process lasts one hour). Waste cooling water from the CHP engine is used to heat the sludge in corrugated tube-in-tube heat exchangers, which is more efficient than heating an entire tank of digestate.

HRS has also incorporated an energy recovery section into the process to make it more efficient – energy is transferred from the hotter (pasteurised) sludge to the colder (unpasteurised) sludge, reducing energy consumption by up to 70 per cent compared to conventional systems and using heat, which would otherwise be wasted. It also has the advantage of being able to run at a half flow rate, should the volume of digestate stock reduce, and the equipment’s monitoring features ensure that every batch of digestate can be traced back to the feedstock from which it was produced

Once pasteurised, the biofertiliser can be de-watered if required; it can be supplied for application either as a liquid for soil injection, or a solid for muck spreading. Analysis by Muntons has shown that their biofertiliser is higher in nitrogen, potash and sulphur than most other available biosolids, as well as being a good source of phosphate and magnesium.

The biofertiliser is used on local land from which the company sources its malting barley, but the company is also keen to stimulate the wider biofertiliser market. Muntons is also working with the University of Lincoln on a project to document the composition and effectiveness of the biofertiliser. This has initially demonstrated that lettuces grown with Muntons’ biofertiliser demonstrate quality and growth benefits over artificial fertilisers of similar nutrient concentration.

A further collaboration with University College London revealed that the digestate yields a type of bacteria that produces an antibiotic that kills multi-drug resistant E. coli bacteria.

“For Muntons this whole project has been about maximising efficiency. Although they have an abundance of heat, they still wanted to recapture what they could, and our heat exchangers provide 40 per cent heat regeneration,” said Matt Hale, international sales and marketing director at HRS. “Our system also allows the tanks to run at half flow rates if necessary, meaning they can still carry on pasteurising without having to wait to build up a stock of digestate. Working with a company like Muntons to deliver a truly revolutionary waste treatment plant shows exactly what is possible in terms of implementing the circular economy. The results that the biofertiliser is providing in trials and in the field show just what a valuable resource it is; this success could be repeated elsewhere around the world.”

How to make your assets earn money for you

What would you do if you were a food or beverage manufacturer or processor and you were told you could save your company thousands of dollars in energy bills every year? Most companies would sign up straight away. But what if part of the condition was that at some point in time throughout the year, certain pieces of plant or machinery were switched off. Pretty risky, right? Not so according to Andrew Sutherland from Enel X, a company that specialises in helping businesses – including those in the food and beverage sector – optimise their energy needs.

Sutherland, who is a consultant for Enel X, works with businesses to strategically reduce their energy demand, based on a signal of electricity grid need or shortage, and to monetise this activity. He said that persuading a company to switch off equipment is probably the hardest sell. But, what if there was no risk involved at all? That, said Sutherland, is the key.

“The trickiest part is going into a business and convincing them we can automate a process that will save them energy and money – even earn them money – by turning off a machine and that it will have no impact on their operations,” said Sutherland. “They have to get their head around the idea that we are going to turn off certain parts of their process at a certain point in time. It is only a handful of hours every year.

“I was explaining the concept recently to an abattoir owner and he said, ‘I have 800 staff. I can’t be turning off equipment’. I explained to him that it wasn’t about switching off all of the equipment. It’s about certain assets being turned off at the right point in time.”

Flexibility
Enel X is a subsidiary of Italy-based Enel Group, which is one of the 100 largest companies in the world with revenue in excess of $126bn in 2018. The company sees a gap in the market where companies can not only save money on their energy consumption, but can contribute to the national grid and even
earn money.

Sutherland said that the company comes to the market with a different point of view to a lot of others in the same space. Enel X helps organisations to reduce costs without the need for investment in new infrastructure, by making equipment more efficient. It has expertise and history working with businesses to identify elements of their existing infrastructure and assets or processes that can help deliver a cost reduction if they are used in a slightly different way.

“We work with businesses to identify what they have, what they could have, and then roll those assets and processes into flexibility or demand response programs that help them lower costs. Importantly, the equipment used fully serves its operational purposes, and further benefit is extracted based on what the equipment can provide to the grid,” he said.

For example, Sutherland talks of a business in Victoria that specialises in cold storage. It houses food and beverage products. What Enel X did was help the company manage its assets in a way that it could curtail the energy load of the refrigeration units at a strategic point in time. This not only saved power, but helped that customer earn revenue from the market to help support the grid and the broader community.

“We installed a meter, which is a technical solution that we set up onsite. It recorded when there were disturbances in the grid as a whole,” said Sutherland. “When that occurred, we sent a signal for only the assets they nominated to make a response that provided value to the grid and therefore earned the customer revenue. For this particular customer, he estimated that year-on-year over three years he saved about 10 per cent on his power bill.”

Companies are surprised how much money they can save, according to Sutherland. Demand response, or power flexibility, has been in Australia for many years, however to many it is a new concept. The market is constantly evolving and transforming, with new opportunities for businesses to take part in the market from a demand point of view.

“We are at the forefront of the changes in the rules. We are an advocate for many changes as well,” said Sutherland. “Our history as a global organisation means we know how valuable power flexibility is. As an organisation worldwide, we have enough power flexibility in our portfolio that can manage the state of Victoria on any normal day. Our expertise is with flexibility and demand response. We are the world’s largest operator in this space and we are also the largest aggregator of load to our market operator in  Australia.”

While it makes business sense to use the service – after all what business doesn’t want to save money – Sutherland also points out that not only is the solution practical, it might also soon prove to be a necessity in some parts of the country.

“In the past four months there has been a series of issues that have had an effect on the grid,” he said. “We’ve had outages with generators in Victoria where two generators were out of action for the majority of 2019, which caused a lot of concern about the reliability of the grid. There have been outages between Victoria and Tasmania with the Bass link. In the past couple of weeks there were a few events between Victoria and South Australia, which has needed assets like ours. Using our service, businesses that offered their flexibility are be paid for making a contribution to the support of our grid. That helps our whole community.”

Sutherland believes that, at the moment, the national power grid finds itself at a critical juncture where there is not enough wind and solar power available to cover any shortfalls in power supply, while battery storage is still too expensive. He also believes Australia hasn’t hit a critical mass to help the transition. The country has hit a point where the grid now needs flexible assets and flexibility that will help advance the transition.

“The drivers in the community are for decarbonisation and climate change,” he said. “People in that frame of mind support the use of flexibility because it advances the situation we want. When we don’t have enough wind or solar, we need flexibility at that point in time to keep the grid stable and to ensure that we are not stifling more investment.”

Sutherland can’t reiterate enough that it’s not about turning off the equipment all the time, it has got to be strategic and it has got to be low impact if at all.

Enel X has proprietary software that helps the customer maximise the outcomes to the market. There is software around the trading and dispatch notices but ultimately it is an automated process that combines hardware at the site and software on Enel X’s end.

“We use a combination of hardware and software,” he said. “We need to install certain meters that will sense all the disturbances in the grid and then give a signal to the site.”

He also points out that there is an underutilised power supply available that a lot of big multinationals in the food and beverage industry have and, again, they could earn money from them – standby generators.

“There are a lot of businesses out there who have realised that the reliability of the grid is not as good as it once was so they have made investments in standby generators,” he said. “These investments are substantial for an asset that sits there largely dormant waiting for the power to go out. What we do is we turn those assets into an active market participant. That asset helps to support the grid in terms of need and in price.

“A back-up generator has an invaluable role. For example, in South Australia when they had the outages in 2016, a lot of the businesses did have generators but they were not adequately maintained and many were not available at the time that the customer actually needed it. By taking part in the power flexibility programmes, they are actively used. It is not a dormant asset.”

Sutherland cites an example of a bakery he has been working with. If it loses power they have a huge amount of waste that will happen; the company will have idle staff, and can only get a certain amount of product out the door if they run on their generator.

“It is an asset that is there, but it is underutilised and it is not properly configured for the site,” said Sutherland. “We are working with that business via a grant and funding with the SA government, to help them get to a situation where the sustainability of their operations is maximised. If there is an outage, they will be able to get all the product through the process and out the door. They therefore minimise waste, which is great for the environment – all the conversion of the resources, all the labour is not idle. Generators play a critical role because the grid, in its simplest form, is no longer reliable as it once was.”

Sutherland expects that their offering might take a little bit of time for some companies to comprehend. However, once they get the details sorted out, it is win-win situation.

“We do not expose the customer to any form of market risk,” said Sutherland. “We incentivise them, and the government incentivises them, and we need their flexibility. We are going to do it in a controlled way so that all of your operations are not affected in any way.”

A new way of thinking about food waste

It all changed in the 1950s. That’s the point in time where TerraCycle CEO Tom Szaky said the attitude towards packaging changed. Szaky is the Hungarian born, Canadian-raised, United States-residing, evangelical-like champion of Loop, an enterprise that is set on reusing products instead of recycling them. The headline act at the Future of Reuse event at Barangaroo in Sydney in March, Szaky shared his views on the history of rubbish, what we need to do with our rubbish, and where the Loop system has a place in the circular economy.

Why did Szaky narrow it down to the 1950s as being the tipping point? Because that was when packaging disposability met head on with a new era in insatiable consumerism.

“Before the 1950s garbage didn’t exist; it was a by-product but nature knew what to do with it,” he said. “A 100 years ago, every chair in this room that we are sitting on would have been made of wood. You could throw them in the forest and the forest would have thanked you. The carpet would have been cotton and the forest would have been just fine breaking it down. Today, most things in this room will be garbage eventually, but if we threw it into a forest, it would hate us for it.

“Then the 1950s roll around. Disposability brought around unparalleled convenience and affordability, which elevated people out of poverty, allowed folks to not be in the kitchen for two hours at a time. It offered huge and profound benefits for society.”

But, according to Szaky, a strange thing happened – the packaging the product comes in became the property of the consumer.

“And is there any disposable package you want to own when it is empty?” he said. “Take coffee cups. Once you finish your coffee you own the coffee cup. Isn’t that weird? If I took it from you when it was empty you would have no problem relinquishing ownership.”

So it has become a mindset. And one of the truism of any packaging waste – waste in general, according to Szaky – is that there has always been negative connotations attached with it. With other contentious subjects, such as climate change or the use of palm oil, there has been debate over the merits of palm oil in products, or whether climate change is a naturally occurring event or the result of man-made pollutants. With waste, there has been no debate, it has always been a negative.

Szaky believes that in the past two years it’s hit a point where it’s moved from a problem to a crisis.

“Three or four years ago I would have had to explain a photo of empty plastics bottles in an ocean to some people and what it represented. Now I don’t have to anymore,” he said. “I think it has tipped over because it such an easy topic to have an emotional perspective on. You could argue that sometimes that emotion is misguided. I don’t think plastic is evil. Plastic is just a material – whether it is an alloy, a fibre or polymer – but it is how we use these materials that is the real question we should be asking ourselves.”

One answer is to recycle, which is something that Australians have  embraced over the past decade. Yet, consumers realise that there is only so much landfill to go around, while there is also many applications that recycled material can be put to use. But is it enough to take those empty soft drink cans, or those soft plastic lolly wraps and put them to better use? Yes, but there is a problem arising, according to Szaky, and he gave the example of the city of Philadelphia in the US as to what is happening now.

“In 2013, the city was paid $67 per tonne for its recyclables – like PET bottles and aluminium cans,” he said. “Today, they have to pay $105 per tonne to get them recycled. Now the city is debating whether they should have recycling in the city at all. It’s a fair point because it’s now a big expense for tax payers – it’s gone from a revenue to a cost.”

TerraCycle has been at the forefront of recycling and has come up with many innovative ideas to make sure that landfills are kept empty, oceans free of plastics and other waste, as well as making sure that people are informed of the many ecological options when getting rid of waste. The company works with retailers to reinforce to the public that they have eco-friendly policies, and also help them not only keep market share, but increase it.

“We do aerosol recycling with Unilever through DM, which is a big pharmacy in Germany,” he said. “The message is you can bring in aerosols to be recycled – such as the propellent, aluminium and plastic – and turn them into bicycles for kids in need. But what is DM getting? Foot traffic – half a million extra consumers that would not have shopped at their store (according to them) and Unilever gets a huge display in the store all year round, which drives profit dollars.”

While TerraCycle started out as a recycling company – and continues to be so – it has started a new program called Loop, which is designed to take sustainability one step further. While Szaky embraces products that are made out of recycled materials – especially those that have been partially constructed from recovered ocean waste – his main plank is reuse. And this is what Loop is all about. So how does it work?

Take Häagan Daz ice cream for example. Instead of buying a tub of ice-cream in the usual cardboard/wax packaging, it will be available in a stainless-steel container. Once the ice-cream is finished, it’s ready to be picked up, returned to the Loop station, washed, and then returned to the brand for reuse.

In order to take the business to the next step, Loop has partnered in Australia with Woolworths, who is providing the online platform for the service.

“It begins with an online platform so users learn as much as they can,” said Szaky. “When the Woolie’s platform launches, customers will be able to access 200 Loop products on their website in home care, personal care, packaged food and beverages – where there are big waste issues. Once the consumer selects the items they want, you pay a one-time, refundable deposit for the tote bag, then Woolworths will deliver the products. And here’s the cool part – you’ll get a return bag and you put all your returned Loop products back in the bag – just like garbage. We do that on purpose so you feel like you are throwing something away. No cleaning, no sorting, just throwing it into a bin. It just so happens that the contents of the bin are reusable. During the next delivery, Woolies will pick it up for you from your home.”

One of the issues that is not lost on Szaky is trying to get consumers on board. This is why the company has tried to make it as easy as possible for those who are embracing the concept.

“Those bags of reusable garbage end up back at a Loop centre that we’re setting up, and will partner with DHL and Ecolab. They will be cleaning the containers and we will sort them out – a bit like a MERF. We store them, clean them and send them back to the manufacturers to be refilled. This is important, because every actor has normalised the process and they do as little as possible.”

The brands pay for it, but the idea is that they save money on not having to buy packaging. The manufacturer is filling units with only the difference being that the product will arrive in a slightly different form from its current configuration and will be more durable. Szaky said it is the same concept as normal shopping – take something that is bulk, put it in package, then on pallets and send it to a retailer. The retailer puts it on the shelf, the consumer buys it, but instead of throwing it in a recycling or rubbish bin they put it in reusable bag.

But will consumers take to the idea? Yet another thing to have to think about during the day – throw the food wrapping in the bin? Recycle it in the bin outside? Put it in the soft plastic pile to be recycled at Coles? Now, a reusable bag? Szaky is confident it will take off, not least because the brands have hit a nerve with consumers with something they didn’t see coming.

“Take the original Axe deodorant container, which has recyclability issues for a variety of reasons. It has a low cost, but that cost is in the whole price of the deodorant, which is ironic because you don’t want to own it once it is empty,” Szaky said. “The company designed a new deodorant exclusively for Loop, and it’s incredibly beautiful, stainless steel, which is not just design beauty but aesthetic beauty. It’s more expensive to make, no doubt about it. But what goes into the price of your deodorant is the depreciation of the container and the cost of cleaning, which allows the deodorant to be the same price as the disposable version.”

And while the design of these new products has had a huge impact on the psyche of the consumer and their willingness to embrace the new concept, there are also practical considerations about the design that make them different from its disposable counterpart.

Take the aforementioned Häagan Daz ice cream for example. According to Szaky, most Americans eat ice cream in their bedroom, with the average serving being a punnet. And the number one complaint of eating a tub of ice cream in bed is how messy it is.

“Condensation on the cardboard packaging is annoying, but the number one complaint is that their hand gets cold,” said Szaky. “Another complaint is that because your hand is warming the pack it melts from the outside so you have a bowl of ice cream floating in ice cream soup.

“Whereas a new container for ice cream designed for the Häagan Daz range solves this problem because it has two layers of stainless steel – the outside is warm, while the inside is -18˚C and melts from the top down not from the outside in,” said Szaky. “Even the inside is concave so you don’t have a concave angle at the bottom, which means consumers can scoop out every last little bit of ice cream.”

And what has been the overall reaction to Loop being instigated? At the time of writing, its roll out is being ramped up all over the world, including Australia. In the US, the world’s biggest supermarket chain, Kroger, is setting up Loop facilities at some of its west coast stores, while Walgreen is doing the same on the US east coast.

“In France it will happen in July while in Japan it will be October,” said Szaky. “And the most important part is that you can return the empty container to anywhere you want. You don’t have to remember where you purchased the item. You can buy your ice cream at retailer one and return it to retailer two, and then at retailer two you can buy your coffee and a reusable container and return it to retailer three and so on and so forth.”

If a brand wants to come on board with the Loop concept, there are a few rules that have to be taken into consideration, one being that the packaging/container that the product comes in must be usable at least 10 times. Another is that is that it must be cleanable to the standards in their category. Also, once its life has come to an end, the container/packaging must be recyclable unto itself.

“Loops fundamental role is not to be a product or a retailer but to be a platform for reuse,” Szaky said. “One of these ice-cream containers goes through a big reuse cycle, and then at some point it can be recycled. But the steel, for example, in the Häagan Daz ice-cream container will always be an ice cream container. That allows the materials to stay in a closed-loop fashion. We at TerraCycle call it a down cycle – it moves it into one lower category.

“Take paper. It goes from beautiful white paper to toilet paper or newspaper. If you look at plastic it goes from a water bottle to shampoo bottle to a frisbee or park bench.”

When all is said and done, Szaky sees it as a win-win-win-win situation. It is a win for TerraCycle, it is win for the consumer, it is a win for the environment, and it is a win for the brand.

“The reality is, if you put purpose into the product you can take down your marketing because mainstream media and social media will do more for you than marketing would. You can keep the price of the product the same if you spend the marketing dollars to fund the new polymer. And it ends up doing really well. A product acts like it is completely disposable but is actually reusable. And it also moves package from being a cost to an asset.”

Eloments covers all bases with Unleashed software

Starting a new company is risky – and the food and beverage industry is no exception. It pays to have done your research and development into the product you are hoping to sell.

If that isn’t hard enough, then adding in specific conditions to how the food is made produces a new set of challenges.

When Julie Hirsch and Nicole Lamond started tea company Eloments, they didn’t just want to make it different in terms of what it delivered in taste and health benefits; they also wanted to make sure that the ingredients for its range of patented vitamin- and mineral-infused teas were sourced ethically and via fair trade agreements.

“Tea is a beautiful, healthy beverage and we know that a lot of people like tea, enjoy tea, and love it for its health benefits as well as the taste,” said CEO Lamond. “It seemed like a perfect medium to add vitamins and minerals to. So, we developed Eloments, which contains nine essential vitamins in every cup.”

“We would often talk about how hard it was to focus on our health as busy professional women,” said COO Hirsch. “Sure, vitamin supplements were there, but we often forget to take them and didn’t like swallowing tablets. When we were looking at the fact that five per cent of Aussies aren’t eating enough fruit and veg for their general health, we thought we could combine our love of fair trading with our love of healthy products and put natural vitamins in a fair trade cup of tea.”

Lamond and Hirsch found it a challenge to blend the tea leaves with the natural nutrients so they could be put into teabags. They spent two years on research and development and came up with a patent-pending process on how to do it.

“We had a lot of fun blending. We partnered with members of fair trade collectives around the world to source some truly beautiful fair trade-certified ingredients,” said Hirsch. “We sourced vanilla from Madagascar, Egyptian mint and fantastic cardamom, cloves and cinnamon from Sri Lanka.”

With these range of self-imposed conditions for making sure the ingredients were sourced ethically, as well as making sure they were giving the consumer a refreshing and healthy experience, both Lamond and Hirsch knew the logistics of keeping track of all the different aspects of their business was going to be tricky. Enter Unleashed inventory software.

“When we launched the product we did a trial manufacturing run and then realised we needed a very good inventory management system,” said Hirsch. “One that could manage organic and fair trade inventory for us, such as batch numbers, multiple locations and multiple warehouses etc.”

Hirsch said the company didn’t have the time to trial any products but did do their homework on what sort of inventory system they wanted.

“We did quite a bit of research and Unleashed was the best option for us,” she said. “We started using Unleashed from the beginning. It’s a very powerful program. Once you have it set up and working well, it is easy to use.”

And what are the features that Hirsch and Lamond like best? There are a few that have piqued their interest and made life easier.

“From the sales perspective I find it absolutely fantastic for reporting sales figures,” said Lamond. “From that end of it, it is so adaptable and has a lot of great filters, so you can pull any information you want. I really like the interface too. In fact, the ease of use and the reporting are probably the two biggest things I like about it.”

Hirsch agreed, and added that, because of the way the company does business, this function is a necessity.

“Our sales are very complex,” she said. “There are seven territories around the world. We sell into Australia and the UK – both larger retailers and smaller retailers – so we need a lot of flexibility in being able to do different sales reports and sales templates for our various customers.”

Another reason Hirsch and Lamond decided to use Unleashed when they launched the business was that they knew that the business was going to take off quickly and they needed to be able to scale to demand immediately.

“We’ve been selling for about 14 months now, and we’ve got shelf spacing on more than 2,500 stores around the world,” said Hirsch. “If we had started out with an inventory management system with limited capabilities, we would have had to change it six months in. It was great how we started out straight away without having to swap it out.

“Because we are organic and fair trade certified, we have to be able to trace our product’s journey every step of the way. We need a package that has the ability to do that and Unleashed certainly does.”

Eloments’ raapid expansion means it has moved into overseas markets quickly. Again, Unleashed has helped them navigate the sometimes ever-changing landscape of exchange rates and foreign currencies.

“One thing we utilised with Unleashed was the foreign currency feature,” said Lamond. “We are buying in multiple different currencies and we’re selling in multiple different currencies, so having a programme that can support that is important.”

Hirsch explained further.

“Especially as a small Australian business, we don’t have lots of support, so it is really important and helps make the business possible,” she said. “And we can put in those different currencies and track sales and purchases directly to the Unleashed system.

“We partner with the Fair Trade Collective in Sri Lanka for most of our teas and spices. We purchase them in US dollars, Australian dollars and the UK pound. Having the flexibility to manage that in one system it makes it possible for us to run our business.”

Overall, Hirsch and Lamond are very happy with the software. Lamond has a final piece of advice.

“When you are assessing software, I would say make sure it does what you need and make sure the system you choose can meet your needs,” she said. “Unleashed ticks our boxes and is easy to use. Because when you are running a business, you don’t want to be sitting there working out how to use a piece of software. These days, software should be intuitive enough so you can mostly work out how it functions just by using it.”

Is that hissing noise the sound of money going up in smoke?

One thing that never fails to amaze Greg Gillespie is the amount of times he walks into a manufacturing or processing plant and hears hissing. It immediately tells him that they are running an air compressor or a bank of air compressors. It also tells him that the company is throwing money down the drain. That hissing sound is either one, or a series of leaks, coming from the compressed air system.

Gillespie, who is the national sales manager for air compressor manufacturer ELGi, said that in some cases companies are literally throwing thousands of dollars down the drain every year. Not only that, but when he hears that tell-tale sign of hissing, he knows that doesn’t include the ones he can’t hear.

“I’ve walked into a lot of different places – and to be fair my ear is tuned for it – and I immediately hear all the air leaks,” he said. “And I’ll say to the person on site, ‘you’ve got a few air leaks’. They generally reply, ‘no we don’t’. They don’t hear them because it is background noise to them.”

What he encourages people to do is stay back for five minutes after the work day when everything is quiet. He’s confident that they will then hear the noise.

“And the thing is, if you can hear an air leak, it’s a large one. There will be quite a few air leaks you’ll never hear without ultrasonic equipment, especially if they are inside a piece of equipment,” he said.

Gillespie said the culprits in these leaks are usually the same range of suspects – hose clamp connections, seals failing, and worn fittings. And he’s not saying that maintenance managers have to fix them all at once. He knows that, especially in the some of the bigger food and beverage manufacturing and process plants, it can be a big job. A maintenance plan is needed and such a plan is not something whereby a leak is fixed once and then forgotten about. It will depend on the size of the factory and plant and how many compressors are working. He acknowledges it would be a big task to do it all in one go, so maintenance managers would set about a plan to go and rectify the leaks starting with the biggest one first. Then they would just do a constant, weekly check. But what is the cost?

“If someone has an air audit done then they start to realise that ‘holy heck, we’re leaking thousands of dollar per annum’,” he said. “The more plant and machinery you have in place, the more the leaks are going to cost your bottom line.

“If you have a small place with a 2.2kW compressor, then that cost isn’t going to be that high. But if it is a larger factory with 100kW of installed compressor power, then it will cost a lot.

“I know of a place that has three 55kW machines. One of those 55kW machines pretty much services air leaks. If they fixed their air leaks they can turn one of their compressors off. Do the maths of 55kW of power running all day. They operate 24/7 – not at full capacity – but they are aware of it. I’m sure if you put all the numbers down in front of the people running the place, suddenly it wouldn’t be too hard to fix.”

Education is also a key ingredient. A lot of places he visits think the air is free. Quite often Gillespie will see people “sweeping” the floor with an air gun. It’s convenient, it’s quick, but it does come at a cost.

“Some think it is quicker doing it that way because it reduces the labour cost involved,” he said. “I routinely see people cleaning down their areas using air. It’s not a safe practice to do it.”

But what causes the leaks in the first place? The leak itself is being caused by faulty equipment, but what caused that equipment to become faulty in the first place? Gillespie believes that not only does the factory need the right air compressor for the right job, but it is also the type of air distribution network that is being used that can be a problem. This includes not only the size of the pipe that is distributing the air, but what it is made out of, too.

“I talk to people about becoming efficient, which starts with the right compressor and the right distribution network,” he said. “That is where things like the pipe size, pipe type (poly, aluminium, copper) and how you articulate it comes into play.”

A good distribution system will be one that will be less likely to leak over time – what sort of pipe and the distance over which it is set up are important considerations to limit pressure losses.

“The type of pipe is important because with some piping temperature changes can cause it to expand and contract, and start to bend and twist, so I much prefer people investing in rigid pipe,” said Gillespie. “Depending on the type of rigid pipe system you go for – if you go for something like a braised copper, or stainless steel or even aluminium/copper pipe with fittings – these are going to be less leaks than some other methods.”

If it is the wrong size pipe it will put unnecessary load on the compressor under pressure, which can induce something called artificial demand. This can be magnified if there are multiple compressors in the system, which can be very costly, he said. Gillespie also pointed out that there are also lots of government grants that can help companies become more energy efficient. They change on a regular basis. At the moment there is grant that finished recently that was available for companies that were replacing existing equipment with more efficient equipment with variable speed drives.

“I helped a customer do that and they got nearly 50 per cent of the price of the compressor rebated,” he said. “There is another grant available at the moment which is up to $5,000 rebate for people to put permanent monitoring equipment in to their plant so they can monitor the efficiencies of their compressed air system. Compressed air systems account for about 30 per cent of all industrial power.”

As part of the government’s push to increase energy savings and reduce emissions, they are encouraging industry to work in a more economical way and an area to do that is air compressors, said Gillespie. A lot of people think these things revolve around lighting and solar power. However, quite often there are grants going around to make more efficient compressed air systems.

For the bigger companies that are setting up a new system or refurbishing an older system, Gillespie said putting some budget aside for a monitoring system is also a good idea.
“I have a company I’m dealing with at the moment and they are going to need about 300kW of power. It’s going to be a couple of hundred thousand dollars’ worth of equipment and I’m putting monitoring equipment in my quote – $6,000 worth. To me, it would be absolutely crazy not to do it. The advantages are a no brainer on a system that size.”

Gillespie also cautions against overthinking too much about what to do. An air audit is a simple thing to do and that will give a clearer indication of what a company’s needs are and how they can be remedied.

“I would try not to oversell it because sometimes you can take somebody down that rabbit hole and they can become overwhelmed because they have been inundated with the information and data,” he said.

“You have to find that balance. There are instances where you might spend $10,000 to modify pipework and save yourself $1,000. There’s no payback.”

There are lots of things going on with flow and thermodynamics, you could easily make someone’s head spin.

“At the end of the day, a well-designed and maintained compressed air system is going to be more efficient. And that will save money every day of operation.”

Simplifying and integrating the supply chain journey

Consumers’ daily lives revolve around trust. Every day, when peeling an orange, opening a can of baked beans or dining in a favourite restaurant, consumers put their trust in Australia’s food supply chain.

Behind every food and beverage product on the shelf is a supply chain journey that starts with ingredients. The Australian food manufacturing industry is an intricate maze of ingredient and packaging suppliers, most with different supply chain management solutions.

Today, sourcing ingredients without a traceability and food safety protocol invites counterfeit products onto the food chain and an increased risk of contamination. News of unsafe or spoilt food can impact business owner’s livelihoods and the industry’s broader reputation, along with disruption to consumer’s lives.

“To manage ingredient safety and increase the visibility of food ingredients and raw materials in these complex supply chains, a new initiative, the Supply Chain Improvement project, is being implemented using GS1 standards,” said GS1 Australian account director Andrew Steele. “The project’s objective is strengthening integration between the thousands of upstream supply chains in the Australian food manufacturing industry.”

An industry working group has been set up to drive the project using the GS1 global standards for product identification, data capture and data sharing. GS1’s Global Traceability Standard (GTS) is the foremost traceability framework, allowing businesses to track their products in real-time and have end-to-end visibility of the supply chain.

“The group will work to achieve consensus across the industry to improve food safety, deliver efficiencies and reduce costs,” said Steele.

Representatives from Nestlé, Ingham’s, SPC, Lion Dairy and Drinks, Sanitarium, CHR Hansen, Newly Weds Foods, FPC Food Plastics, Labelmakers, Matthews Australasia and Visy Industries make up the group.

The ability for companies to capture material movements from ‘paddock-to-plate’ provides data integrity and timeliness from receipt to delivery, with traceability back to the source. Through automation, many of the manual processes are eliminated and businesses can be proactive with inventory management and handling systems.

“As a food and beverage business it’s critical for us from a food safety perspective to be able to track ingredients all the way back to the origin,” said SPC’s national logistics manager, Christian Lecompte.

Also critical to business is the capability to support information and production flow within existing systems for integrated supply chains. The project has the capacity to eliminate waste within an organisation’s value stream, reduce non-value-added tasks and ensure cost-effective solutions for customers, leading to a ‘right-first-time’ approach for all deliveries.

“One of the things we found we could do to be more efficient was to look at opportunities to be able to electronically track all the product ingredients throughout the production cycle – how we identify a product coming into the warehouses, how we receipt goods, how we put our goods away, how we manage our inventory and how we deal with our suppliers,” said Lecompte.

The adoption of GS1 standards as the common language for the identification, data capture and data sharing will enable automation of key ingredient sourcing, and traceability between ingredient suppliers and food manufacturers. Using GS1 standards for upstream integration goes well beyond minimum standards and allows businesses to translate their internal processes and approaches into the one common language that all trading partners can use and understand, without having to translate data formats across different supply chain management systems. This is the key as Steele believes interoperability is essential to the future of data sharing.

“Establishing international standards to ensure transparency across the supply chain can help lower existing barriers to the exchange of data between suppliers, trading partners and consumers,” he said.

The Supply Chain Improvement Project has the potential to deliver many benefits to industry, including increased visibility of food ingredients and raw materials, unique identification and traceability to improve food safety, and reduced costs with automated business transactions.

Nestle Australia’s head of digital supply chain, Mandeep Sodhi pointed out the key to the project’s success. “By having consensus across the industry on how to interconnect electronically and exchange critical operational data, we can realise cost-effective solutions across the end-to-end – from manufacturers, to suppliers, to customers – everyone benefits from this improvement in standardisation,” he said.

Looking ahead, the industry working group is encouraging all upstream businesses to adopt the food safety and traceability protocol using GS1 standards.

“With an industry-wide solution in place, your trading partners will have more visibility of your products across the supply chain,” said Steele.

Food and bev fit out brought in on time and under budget

Most construction builds have challenges. But when there are a few hardcore caveats attached that will have an impact on getting the job completed on time and within budget, it is important to have people on the ground who are not only experts but can perform under pressure.

Food and beverage construction specialist Total Construction found this to be the case when it tendered and won a contract to complete a considerable alteration at an infant milk powder processing plant.

Total Construction’s national manager for food and beverage, Tony Tate, knew it would be a hard job, but one that the company and its staff would be up for. It would also prove that the commercial building specialist had what it took to turn a job around quickly and to the client’s specifications.

Tate and his team knew from the outset that if the job wasn’t finished on time, it would cost not only the client, but Total Construction, a lot of money. This was due to the penalty clauses in the contract. The main issue of concern was that the plant might become contaminated during the build, which means it would not meet Australian standards when it came to producing foodstuffs. This entailed a whole raft of restrictions to be put in place that meant Total Construction had to carefully plan and execute the build so as not to be liable for any overruns or contamination of the factory.

How does a company meet strict criteria, all the while completing a job to its own high standards?

Experience and planning were the two main components, according to Tate. They also had to persuade the milk powder manufacturer that Total’s methods of tackling the job were the best way forward.

“The plant had a shutdown period of only one month. For them to shut down for a month, meant they were losing a lot of revenue. It was a big deal for them,” said Tate. “The key driver for us was the plan of action. We had to incorporate building work, which can get messy, in a pharmaceutical area, which has to be spotless. The last thing that we want is any dust or contamination in a milk powder plant.”

There were five work zones at any one time with each of those work zones going from low to high care. Workers could walk around the low-care part of the facility – the warehouse – which was where the milk powder was already in sealed packaging, so there was little chance of contamination. It was the high-care areas where caution needed to be taken.

“Every day we were to make sure all the foreign matter – cable clips, cable ties, any debris that was left on the floor – was cleaned away thoroughly,” said Tate. “We had to captive vacuum every day and had to wear captive footwear. Even the builders had to change from safety boots to captive safety boots.”

When it came to making sure the project was going to come in on time some lateral thinking was required. Tate’s initial scope said the job would take 42 days. Even the independent design consultant could only see the job being completed within 46 days. The client initially thought that throwing more bodies into the project would help bring the alteration in on time. But as the Total Construction team pointed out, there were restrictions on space. Tate and his team came up with a solution that would make the job a little more costly, but not as costly to the client if they took an extra two weeks to complete.

“We started working with the design consultant and said we could expedite the process by putting two shifts on,” said Tate. “That is when we really started working with the client. You want to make sure you can take the client on the journey and build confidence with them. As you build confidence, you know what you are doing and you are then helping the client. So, we got the two shifts going as well as working Saturdays and Sundays.”

And while it was a precise process, there were a few issues that did arise along the way. At one stage, they managed to be three days ahead of schedule but the client delayed sign off on the HVAC installation, which put them back to the original schedules timeline. When the sign off was sorted out, there was an issue with the digger that was going to be used to dig out the new floor. It wasn’t cleared as a hygienic piece of equipment. It wasn’t until the Total team pointed out that the soil they would be removing would not be hygienic that it was decided that the digger – under amended conditions – could be used.

Another lesson learned was that even working under stringent conditions, the unexpected can occur. It pays to think laterally, and help the client out the best you can, said Tate.
“After we started, the client realised that once we finished up, they would only have five days to train on the new plant,” said Tate. “The staff not only had to be trained in the new equipment, but they had to validate the new equipment, too. They realised that the time they had allocated themselves to do this was not long enough. They then had to clean the facility and make it suitable to occupy.”

The client asked Total if they could use certain areas of the facility to do the training, but the penalty clauses in the contract made Total reluctant to do so. Total was within their rights to refuse but knew that it could cost the milk processing plant literally hundreds of thousands of dollars.

“So, we came up with a sequence on how to do the job and accommodate them,” said Tate. “First, we did the epoxy floors in the different areas on different dates. Once we completed certain areas, the hygiene teams went in and cleaned them up so they could be utilised. They then taped off the finished areas and they could go from there.”

And when it came to commitment, nobody was more invested in the project than site manager Craig Harkins.

“Craig lived and breathed it from six in the morning until eight at night,” said Tate. “There were times when we had to make sure that he was given time off because he was getting fatigued. When you’re struggling with fatigue, you get injuries and there are mistakes.”

It was a closely monitored build. The site manager knew at each stage exactly where the build was up to. If they weren’t up to where they should have been, all parties agreed on an action plan for the following day so they could catch up. They also had daily tool box talks to discuss contaminants and hygiene.

And the client’s reaction to the final product?

“If you look at the hygiene standards of the build, you could eat your dinner off the floor – it is that clean,” said Tate. “I think that because we have been retained for Stage 2 of the project means they were happy. It was a hard job, but we learned a lot from it. More importantly, we came in on time and on budget in what was a challenging build, so it was good news all around.

Apple flour making inroads into commercial baking applications

Forbidden Foods Group was launched in 2010 by Jarrod Milani and Marcus Brown who both share a passion to provide some of the best health foods across Australia and internationally. Forbidden Foods flagship product of Black Rice was released to the retail and foodservice market nationally and internationally.

Since launching, Forbidden Foods have expanded into supplying a range of speciality rice flours to food manufacturers. Its bespoke rice flour range has been used in baked goods, soups, baby foods, snacking and plant-based foods. Having success with their rice flours, Forbidden Foods explored the potential of releasing a range of Australian-made, new and exotic flours that are not offered in the global market.

In 2019, Sensory Mill was created under Forbidden Foods Group, to provide ingredients for the food enthusiast. Sensory Mill offers a range of alternative products for use in manufacturing including powders, grains and blends and its newest release of an exotic flour range.

The flour range accentuates the core belief of Sensory Mill, which is to strive towards improved sustainability and traceability of products, while providing enriching ingredients.
The company’s newest standout product – which was released in January 2020 – is its apple flour, which is available in the retail and foodservice market.

To promote the idea of Farm-to-Plate, Sensory Mill has collaborated with Bellevue Orchard and Australian Dehydrated Food (ADF) to promote and introduce Australia’s first apple flour to the market.

Bellevue Orchard is a third-generation, family-run apple orchard located in Victoria, Australia and have been producing apple juice since 1998.

The orchard is owned by two brothers, Robert and Joe Russo, who continue to work there, however now run by Joe’s daughter Bernadette and Robert’s son Nick.

ADF is an Australian company that specialises in advanced and rapid dehydration technology to produce the dried foods sourced from Australia.

ADF’s Chris Mamas worked alongside Forbidden Foods and Bellevue to meet outlined requirements and specifications.

“Our aim is to work with natural, unadulterated raw material inputs, resulting in the most aromatic, tasty and nutrient-rich powdered foods on the market, which I believe we have achieved with the apple flour,” he said.

Forbidden Foods, Bellevue Orchard and ADF all have a strong ethos against food wastage, which was the basis upon their collaboration for Forbidden Foods to release, market and promote the apple flour to the retail and foodservice market. Nick Russo indicated that food wastage avoidance has always been a priority of theirs.

“Our goal has always been to make use of every part of the apple. Working with Forbidden Foods and ADF is the final piece of making this a reality with Bellevue being a zero-waste facility,” he said.

“We hope to divert over 800,000kg of wastage per year, into a premium product for market,” said Russo.

Bellevue worked alongside Forbidden Foods and ADF, to initiate production of apple fibre from the pomace in a patented process.

Bellevue realised the apple pomace wastage remaining after the juicing process was becoming costly to re-distribute to farmers for feed, or to move to landfill.

Moving the apple pomace was starting to take a strain on the local environment surrounding the orchard, with potential of having widespread effects.

After 18 months of trials, technology was developed for efficient dehydration of apple fibre to produce a food ingredient for human consumption.

The wasted apple pomace from juicing was drained and ground into a thin layer to be dried out and dehydrated. Once the pomace was efficiently dried, it enters the multi-step milling process that produced a fine flour ready for packaging and manufacturing.

Incorporating apple flour into products on an industrial scale can reap many nutritional benefits to the population.

Finished products with apple flour acting as a core ingredient will provide a nutritionally rounded profile.

Due to the high dietary fibre content of the flour, it has a wide range of antioxidants that are believed to assist in the reduction of cholesterol. The soluble and insoluble fibre within the flour will regulate the digestive system while promoting bowel health and growth of beneficial gut bacteria.

Milled apple flour is extremely fine, allowing it to be versatile in manufacturing and production.

It has many applications ranging from acting as a thickening agent in sauces and mixes, to being incorporated into bakery and snacking products.

The by-product flour is a great absorber of liquid causing this product to be an efficient binder in recipes, particularly in raw snack products that undergo minimal heat exposure.
Having a low sugar content accompanying the high soluble and insoluble dietary fibre, this flour can help control blood sugar levels.

Having low-fat content, it is a suitable ingredient when manufacturing low fat products for consumption.

The properties of the flour allow it to act as a replacer while extending shelf life for long-lasting and shelf-stable products when stored in ambient temperatures.

Apple flour is said to have a naturally sweet flavour that is not overpowering to the palate. The inclusion of the apple flour in baking may avoid the need for additional sweeteners.

Being gluten free, apple flour can be blended with all-purpose gluten-free flour to become a baking staple for the gluten intolerant community. This product can be blended with an array of flours for usage in baking to create high fibre goods.

ELGi determined to make impact on the industrial compressor market

Being a lesser known brand in a competitive industry can be an issue. But if there is a sure way to prove to an industry that you are serious about being a point of difference, while also trying to build your brand, then winning a prestigious award is a good start.

That is what happened to ELGi, the Indian-based manufacturer of high-quality industrial air compressors. When the biggest competitor is German engineering in the form of Kaeser, it can be a hard row to hoe when trying to convince potential clients about the comparitive benefits of your gear. However, winning the coveted Deming Prize for Total Quality Management – the first industrial compressor manufacturer outside of Japan to win the award – goes a long way to show how committed ELGi is to making a dent in the market, including in food and beverage manufacturing plants in Australia.

Having bought Pulford Air & Gas and its subsidiary Advanced Air Compressors in 2018, the company has an ambition to become the second biggest compressor company in Australia.

It concedes that number one, Atlas Copco, is almost unreachable, but the company is keen to get higher on the ladder. ELGi national sales manager, Greg Gillespie, and business development manager, Brian Vegh, both know that they have a hard job ahead of them going from sixth in the pecking order up to number two. However, they also have a belief and confidence that the product not only has the ability and technology to do the job, but the manufacturing process is second to none.

“Atlas Copco is the Empire State Building on the graph you see on a piece of paper,” said Vegh. “We are number six at the moment, but there is not much difference between number six and number three.”

And in order to get up the pecking order, ELGi’s strategy is to espouse the benefits of its products such as the standards they are manufactured to, and the importance of the total quality management measures it has in place when it manufactures the compressors.

“ELGi compressors meet every international standard that any other company meets,” said Gillespie. “They control 100 per cent of the manufacturing process, from the sand they collect for the castings right through to the final product.”

Both Gillespie and Vegh know that there is a perception that compressors not manufactured in the US and Europe are somehow not up to scratch. This is why the company introduced Total Quality Management processes, which culminated in winning the Deming Prize in 2019. Not only that, the company has so much faith in its compressors it offers a 10-year warranty, something most of its opposition don’t do. There is also the perception that their compressors are made to Indian standards, which can sometimes be at odds with Australian regulations.

“A domestic product in India will have a metal starting box on it, which is acceptable over there, but you can’t have a metal starter box here in Australia,” he said. “The ones that arrive on these shores are all up to Australian standards already.”

Two of the key attributes of the compressors are the aforementioned 10 year warranty and their operational efficiency. Gillespie said the efficiency is about 10 per cent better than most similar products that are on the market. There is a reason for this.

“ELGi manufactures all the main components themselves. They mainly use Siemens motors and contactors,” said Gillespie. “We manufacture our own air end, which is the most expensive part of the machine – from the sand to the finished product. The design work they put into the air end to make it more efficient is top notch.

“Then there is the efficiency. Over a five year period, the cost of compressed air is 85 per cent of the cost of electricity/power. If you get a machine you start talking about 200kW of installed compressed air, and they run 24/5 days a week or 24/7 – which is anywhere between 5,000 and 8,000 hours a year. We can supply customers with a machine that is going to be anywhere between 3 and 8 per cent more efficient than some other machines out there. That is a lot of money over five years.”

The most expensive part of compressor is the air-end, which is important when it comes to the 10-year warranty. This is the actual screw where the air gets compressed, and in the case of ELGi, it is one the company has designed itself. It is for this reason they are happy to offer such a long warranty period for their compressors.

“We have heard of situations where only a 12-month warranty on air-ends was offered,” said Gillespie. “The warranty ended on midnight of that day. If it failed the next day, you have got nothing. Absolutely nothing.”

And how suitable is the company’s range for the food and beverage industry? When you’re talking its oil-free range, they are perfect, said Gillespie.

“When it comes to working in food and beverage, our compressors are Class 0,” he said. “With the quality system we use, everything is 100 per cent trackable and traceable. If you open up a machine you will see every screw, nut and bolt hallmarked in yellow.”

“That means every part has been checked. Every single one,” said Vegh. “If you have been in the factory, everyone who works at the foundry is on a production line. They go through a comprehensive checklist when the machines are being manufactured.”

The company is also aware of the impact its manufacturing will have on the environment and have measures in place to make the least amount of impact as possible.

“The sand they use to do their casting will only come from a reputable source and they recycle over 90 per cent of it because of the environmental issues,” said Gillespie. “It is also cost-effective. They’ve built the plant around that supply so they only have to use the minimal amount of sand they need.”

Finally, there is the back-up service that is available. Both Gillespie and Vegh point out that while the product is very good, if there are not people on the ground to help customers, then that can cause a whole range of problems.

“One of the hardest issues with industrial compressors in Australia is retaining and getting good service personal,” said Gillespie. “Most of them started out as fitter and turners. That is what I started out as and there are not of lot of us that stay on the tools their whole career.”

He believes one of the reasons it is hard to employ service technicians are the specifications of the job.

“Being a service technician means you are on the road a lot,” said Gillespie. “You have to like that. Some guys get sick of the travelling and driving. You have to be very autonomous.
“You do routine maintenance of products but then you have to walk into a business where everybody is looking at you. There’s 30 people standing out on the street like there is a fire drill waiting for you to fix it for them. When that machine is down, the down time is so costly to a company they want it fixed now. And some tradies are just not interested.”
Vegh reiterates that you can’t underestimate the back-up service.

“Some of the bigger air compressor manufacturers, for want of a better description, are just selling boxes. That is all they do,” he said. “Once that is done, they are onto the next customer and that’s it. One of our biggest selling points is our after sales service. We have the Advanced Air and ELGi distribution network. We have 52 service technicians nationally, as well as New Zealand.

“If you need help at 11.59pm just before the whole country is waiting for the fireworks to go off on New Year’s Eve or 9.32am on Christmas Day, we will be there to help you. It’s the 24/7, 365 days a year help and support that we pride ourselves on. Selling a compressor is not the hard thing, it’s what you do for the customer in three years’ time that makes a difference.

“Each person who works in the plant prides themselves on the quality of the product.
“We have a rigorous checking process here in Australia when it comes to the ELGi gear we bring into the country. If it is not up to scratch we send it back.”

How to grow overseas market share

Indonesia, Brunei, Cambodia, China, East Timor, Fiji, Japan, Korea, Malaysia, New Zealand, Pakistan, the Philippines, Singapore, Taiwan, Thailand, the US and Vietnam – if there is one thing Trisco knows about, it’s exporting.

The Queensland-based company is a fifth-generation company that has been producing food and beverage products for more than 140 years and is always looking for new markets in which to expand.

CEO Mike Tristram has a plethora of dealing with the red tape and bureaucracies when sending products overseas. The first thing he points out is that no two countries are the same – whether they be first or third world. With some countries, getting approval is easy, another might be require more time, while yet others may rely on another country’s approval system.

READ MORE: Anthony Pratt: Value added food will pave way for Australian exports

“For example, the US,” said Tristram. “Officials in another country might say ‘well, if you’re approved by the FDA in the US, there’s no problems here’. Every country has its own little idiosyncrasies. In Pakistan, you need to have specific approval by some office that has to have a physical stamp. Trying to get that physical stamp instead of a photocopy and approval is very difficult. Dealing with those sorts of idiosyncrasies from country to country, can be interesting.”

One of Tristram’s favourite quotes is from LinkedIn founder, Reid Hoffman, who described start-ups as like jumping off a cliff and assembling an airplane on the way down.

“Exporting is a little similar but not quite as dramatic,” he said. “It is one of those things you have to figure out on your own depending on your market and depending on where you are going and what you have to sell. It is how unique or not unique it might be and where your strategic advantage is.

“You need the boldness to be able to go into the adventure and find your own pathway within that and be prepared to solve those problems as and when you see them. Even with speed bumps along the way, you need to keep going and learn from them and not give up.”

He believes resilience is the biggest thing that gets a company through the export journey. Also, it is important to get someone on the ground. It is not something that can be discovered, nurtured and expanded upon while sitting in an office in Australia.

“That is the hardest thing – staying on the path and keep slogging,” he said. “You can’t follow a market you don’t understand so you have to go there. And if you are not prepared to go there on a regular basis, then don’t attempt that journey. If you are not prepared to leave the country – at least initially and put a good bedrock down – you will not be successful.”

However, once the connections have been made, it is possible to tone down the travel schedule as long as there is someone on the ground that can be trusted. These are usually locals who know how local regulators and the laws surrounding imports work.
“Some of those places you can handle through agents once you have forged a relationship,” said Tristram. “As long as you have a trusting relationship with the local agent you can pull back a little on those sorts of visits.”

What does help is Australia’s reputation not only as a quality food producer, but as being upfront and honest.

“Australian products are recognised throughout the world as high quality,” he said. “And being relatively clean and green, we’re recognised as being reasonably easy to deal with and we are straightforward. There are a lot of advantages to being Australian.”

The main reason companies try and get into exporting is to grow their company financially. Australia has a finite number of markets within the continent, so expansion is the only way to grow. And while Trisco is happy to manufacture in Australia, the company is going one step further to magnify its footprint in the US – building a plant over there.

“One of the disadvantages is we are still one of the highest costs of manufacturing in the world,” said Tristram. “Until we solve some of these issues, such as energy and utility costs, we are going to continue to struggle. And until we are competitive with the rest of the world on red tape and tax and that sort of thing, there’s not a huge incentive to come to Australia and manufacture. We need to change that.”

One of the products that the company produces is Thick-N Instant, which is under the company’s Precise brand. It has been on the market for three years and doing well. It is designed for those who have dysphagia, which is a condition whereby people have difficulty swallowing. There are many different types of dysphagia, but it usually impacts on those who are aged over 65. It also has a high correlation with people who have Parkinson’s Disease, motor neuron issues or are a victim of a stroke.

“The market that manages the condition, thickens products to four distinct levels that are internationally recognised as part of the diet,” said Tristram. “We take those products up to those viscosities depending on what the problem is. Then they can swallow safely, which means the food goes into their digestive tract and not into their lungs, or into other areas that can cause fluid on the lungs, which can lead to pneumonia.”

It is this demand for the product stateside that lead the company to build a plant over there. Thick-N Instant is protected by intellectual property including patents, some of which are still pending.

“We need to build a plant a little closer to one of our largest customers in the US,” said Tristram.

“And we’ve done that for a couple of reasons. First, Thick-N Instant is a product that is unique and is for a vulnerable population and there is nothing like it in the world that we compete against. Nobody makes anything like it.

“The other issue for us is that you have to have some redundancy, so if something catastrophic happened to the plant we would be in trouble. You have to have that redundancy. Plus of course, seven to nine weeks on the water to another country is a long time for something that only has a shelf life of 12 months.”

Does Tristram feel the company has reached the apex of its export potential? No, but there are other issues he can see on the horizon

“The food industry is contracting a little bit,” he said. “What we are seeing now is ingredient suppliers not being as flexible as they used to be. The variety of the products on offer are there. They’re bringing them in from all over the world – Europe, Asia, US – everywhere.

“But getting consistent supply and variety that we can use to draw off the same sort of spec is becoming more difficult. For example, if you have 40 tonnes of strawberries and you need another 20 tonnes, trying to find it locally is going to be difficult.”

Why making a profit is no longer enough for big brands

When you’re one of the world’s largest confectionery brands, you’re under the microscope. We live in a time where a more discerning, informed public are not only interested in the products a company is producing, but how they are making them – where are they sourcing their ingredients? What sort of packaging are they using? What are the products nutritional health benefits?

It’s not lost on Nestlé’s Oceania director of eBusiness, strategy and marketing, Martin Brown. It’s his job to not only sell the company’s message in the local environment, but make sure it is adhering to the best practices he and other strategists have put in place.

Brown knows that the younger consumers are the ones driving the conversation – and not only in terms of whether a product tastes good or not.

“If you look at the diversity of our population and the expectations, it is the younger consumers that are shaping our industry,” said Brown. “They are shaping a couple of key forces that are really important for us to consider. One is, they make choices on brands and consumption based on beliefs. They’re very much looking at the actions of the brand – what is behind the brand – particularly with the supply chain.”

No longer is it good enough to make a great tasting product under the banner of a worldwide known and trusted brand. A lot of food and beverage companies – and those in peripheral arenas like packaging – are employing people whose sole purpose within the conglomerate’s structure is to look after sustainability and traceability. This is because companies like Nestle know that social media and other modern trends have a huge influence on purchasing decisions.

Nestlé is looking at a variety of ways of making sure that it not only provides products from sustainable sources and can be traced back to the farm, but it is also taking steps to reduce its carbon footprint.

“As a company that operates 10 factories in the region, we have plenty of scope to influence that commitment. Part of those commitments is accelerating the use of renewable energy,” said Brown. “For instance, we use the spent coffee grounds in our Gympie factory as fuel to drive the energy in that factory.

“At our Smithtown factory, which is the home of Milo, we use sawdust from the local timber industry to power 85 per cent of the energy in that plant. These are good examples of clever renewable energy sources. We’re also committed across all of those operations to have zero waste to landfill by 2020 and are pretty close to achieving that.”

Globally, Nestlé has signed up to the RE100, which is a group of companies that have pledged to use 100 per cent renewable energy. The accord means that Nestlé has agreed to zero net greenhouse gas emissions by 2050 as part of the pledge to hold to the 1.5˚C maximum temperature increase through climate change.

When it comes to another hot-button issue for consumers – recyclability – Nestlé is committed to meeting its 2025 responsibility of its packaging being reusable or recyclable. Currently, 50 per cent of the materials it uses is recyclable, while 40 per cent is partially recyclable.

“We’re going to focus first on the 10 per cent that is non-recyclable,” said Brown. “We’ve got a negative list of materials that we are removing from all of our packaging. The cardboard is fine, however not all of the substrates used in flexible packaging are recyclable.

We have multi-layers of material that are not recyclable. That’s where we need to find solutions.”

These solutions will not appear out of thin air. Investment is needed, and Nestlé doesn’t mind putting its hat in the ring when it comes to spending money to find the answers that will lead to more sustainable packaging. Brown also realises that there are other issues that need to be addressed with packaging – recyclability is but one aspect.

“This is where the science comes in with regard to coming up with new packaging solutions because they’re not available right now,” said Brown. “We’ve invested in the Nestlé Institute of Packaging to work with the science community and the rest of the packaging community to develop novel solutions that are fully recyclable and/or compostable. These will be the replacement solutions for that 10 per cent non-recyclable packaging.

“If we can come up with solutions that meet consumer expectations of quality, tamper-proof food safety, and is relevant in a category that can fully eliminate packaging, that would be a good thing. We’re trialling those solutions already.”

Another hot topic is food trends. Two that have caught the eye of Nestle’s hierarchy are confectionery products with less sugar [see box story Satisfying the Sweet Tooth], and plant-based proteins. Again, it is the younger consumer driving the issue. In the case of the latter, it is not about getting rid of meat altogether, but about replacing one or two meals a week with plant-based proteins. Brown thinks there are many reasons for the growing trend.

“There’s health reasons,” he said. “They may also connect the dots between meat and greenhouse gas emissions. Ultimately, for them, it might be about living in a more sustainable environment. With our Harvest Gourmet products, and along with the rest of the plant protein industry, we are providing alternatives that make that transition seamless in a way that is pretty surprising. We think that it is going to grow quickly as a market opportunity.”

Brown said that Nestlé is looking to develop a range of meat alternatives – from chicken breasts to mince – that will give customers versatile options for food consumption. Then there are dairy alternatives, too.

“You can expect we will bring plant-based dairy options across a range of our beverage products,” he said. “We’ve seen that it is becoming popular in the way people are adopting plant-based milks into their out of home coffee consumption. That is definitely an opportunity for in-home coffee consumption as well.”

And what about another, albeit minor, trend of insect-based proteins? Brown acknowledges that it is an idea the company might look at in the future, but there is nothing in the pipeline at the moment.

“We’re aware of insect-based proteins. They’re probably not mainstream enough for us to look at yet,” he said. “We’re blessed at being in a pretty resource-rich environment so we’re not quite yet at the insect level. It’s an imaginative solution, which is arguable very sustainable and we should never rule it out.”

Brown is confident that Nestlé is on target to not only continue meeting the needs of its traditional consumers, but also encompass new food technologies and trends that will be entering the food chain over the next 5 to 10 years. It is not only about keeping the taste great, but making sure the brand keeps its reputation.

“As we continue to offer more choice and lift the nutritional credentials of all our products, it is important to remember that any change has to be underpinned by great taste. And with that, will come trust – something that is very important to any brand like Nestlé.”

Social responsibility
Chocolate and coffee – two items that tick all the endorphin boxes when consumed. Debating traceability of products, sustainability in packaging, and energy efficiencies during the production process are all well and good, but what’s the point if the key ingredients no longer exist? No ingredients means no products. Coffee beans and cocoa plants are grown in a narrow window of land on the equator. The main producers are in sub-Sahara African and the equatorial climate of South America. A recent article in Business Insider titled Chocolate is on track to go extinct in 40 years, concentrated on how the aforementioned strip of land is set to shrink due to climate change. Cacao plants, which product the cocoa for chocolate, need certain temperatures to grow and that is starting to change. However, that is not the main issue, because if humanity does get to reverse the more undesirable effects of climate change, there is another more urgent problem – will there be cocoa farmers to produce the crop?

It is an issue that the likes of Nestlé and Mars are taking head on. They realise without cocoa, a large portion of their business is affected. It is with this in mind that Nestlé’s Martin Brown explains why the company’s attitude towards its primary producers is holistic. The company knows that trying to buy the biggest amount of cocoa at the cheapest price possible is short-sighted. Long-term viability is needed and is something that the company champions. With more than 70 per cent of the world’s cocoa being produced on two million small farms in Ghana and Cote d’Ivoire, logistics can be challenging.

“The reality is that a lot of these communities are in undeveloped economies and live in challenged social spaces, so we have to help them resolve things such as unsafe work practices,” said Brown. “They’re complicated problems to solve that need total integration by the government across all industries.”

Brown said that in 2014 Nestlé was one of the first major companies in Australia to use 100 per cent sustainable cocoa. He said the company is committed to paying a premium to all farmers it buys through. The company also likes to make sure its suppliers are in compliance when it comes to eliminating unsafe child labour work practices and ensuring children go to school.

“We are also eliminating the use of unsafe pesticides,” said Brown. “We’ve built schools in farming communities to ensure that their kids are getting educated. We’ve distributed new cocoa plants. We’ve renewed the cocoa plantations to drive productivity in their farms. We’ve educated farmers on how to look after their farms better.”

A lot of actions undertaken by food conglomerates are driven by consumer expectations. However, Brown also knows that goodwill in these communities goes a long way. Because if climate change does get addressed, and the standard of living is accelerated, there are other issues that will also need addressing. Only collaboration between the farmers and businesses will solve them.

“There are a numbers of reasons why the cocoa supply has been under threat,” said Brown. “First, cacao trees are at their most productive between 2-20 years of age. If they are not renewed and the tree is not continuously replenished, productivity drops, and drops away sharply.”

Next, if the farming methods to optimise the layout of a farm – from ventilation between trees, right fertilisation methods, pruning and cropping of the trees – isn’t maintained, the productivity of the tree is reduced. Then there is the issue whereby farmers might not grow the crop anymore because they are not getting the economic outcome of it that another crop might provide.

“Another reason why you might have a compromised future with the cocoa crop is that the next generation don’t want to farm,” said Brown. “The next generation might leave farm communities because the conditions are just not good enough. They are not liveable and those meant to be taking over the farm have higher expectations of quality of life. And that should be everyone’s expectation – that the next generation gets to lead a higher quality of life or has the opportunity.”

Getting the specifications right for an F&B build

For food and beverage facility owners, navigating compliance requirements when building or renovating a new building can be tough at the best of times, especially in a constantly changing regulatory environment. Bill Franks is a founding shareholder of food and beverage construction specialist Total Construction and is also member of the Australian Institute of Building. He has been involved in the industry for more than 30 years, and has some interesting insights on how some of these pitfalls can be avoided, especially for some of the smaller, up-and-coming food and beverage enterprises.

“Whereas a big multinational company has a team of people checking compliance, if you’re a mum-and-dad business, or own an industrial unit where you want to produce food for sale, you don’t have access to that kind of resource,” he said. “For starters, it’s important to understand which regulations you need to comply with. A commercial building comes under the Building Act and National Construction Code (NCC); what was known as the Building Code of Australia.”

A couple of regulations in particular, can cause issues because people don’t know some of the minute details – the fine print – that can be hidden in the regulations.

“For example, Section J (energy efficiency) of the NCC, along with essential fire services, have been catching people out for a number of years now,” said Franks. “Plus, with the ‘Access to Premises’ standard, a minor addition or alteration to a commercial building can now involve some serious upgrades to services like water, electricity and insulation just to mention a few.”

Franks adds that, while a lot of people know that buildings require fire sprinklers, there are other accessories that need to be added, too. “For example, water pressures have changed, and sprinklers now require water storage tanks and a set of pumps, which can sometimes cost around a half a million dollars.”

Then there is disability that needs to be added to the mix of potential changes some sites that are being renovated. In some cases, councils will require a lift to be installed, doorways and corridors widened and disability amenities added to satisfy current building codes.

Other considerations that need to be considered when planning to convert a brownfield site into a food and beverage facility include the noise and odour impacts. Many councils insist on obtaining noise and odour statements as part of the any submission. Although the consultant fees to produce these statements can be relatively low, the resulting adaptions to the building can be significant. In one instance a client was required to install 6.2m high exhaust flues to ensure that odours from their cooking processes were dispersed effectively and not impinge on neighbouring residential properties.

“You may say that is fair enough,” said Franks, “however, the residential properties were almost a kilometre away, yet the odour report indicated that with the right conditions the cooking odours could travel that far.”

Any new facility in the industry will need to comply with a Council’s Health Department requirements, so this means effective drainage, washing and waste disposal areas need to be well-defined to comply. Generally, to accommodate new drainage runs and wash areas in brownfield sites, a company needs to cut into the slab. Also, depending on the amount of drainage required, the existing slab could end up looking like “swiss cheese”. These drainage runs will then need to be reinstated and pinned back into the existing slab. In some instances, combining this with set down areas for any freezers, it can be cheaper to lay an entire new slab.

Apart from Council and NCC requirements, brownfield sites can also have issues with the roof weight capacity, as the majority of industrial units available are only designed to support roofing sheets and not much else. To enable the roof to support numerous services and insulated panel ceilings etcetera, the roof structure generally needs to be strengthened – sometimes dramatically.

Then there is another set of key criteria in deciding on premises to convert – power and gas availability. Again, the majority of industrial units only have access to approximately 100amps supply and no gas feed. Food and beverage facilities can require in excess of 500amps and a reliable gas supply to effectively run their operations. The time and cost associated with upgrading and installing these feeds can be exorbitant, and have caught out many proponents, causing delays in establishing operations.

So, what can you do to make sure your building ticks all the boxes? “The first thing is to establish the scope of the development, then work out where it might be non-compliant and if your budget stretches to bringing it up to standard,” said Franks. “You can find a copy of NCC online, but it can be difficult to make sense of it if you’re not a lawyer or building professional. My advice would be to get a report from a building certifier and engage an appropriate food and beverage builder to advise. By enlisting theservices of professionals, you can avoid a host of problems in the future.

“The key to ensuring you mitigate risks in your project is to involve your builder early in the process commonly known in the construction game as early contractor involvement or ECI.”

According to Franks, having a builder involved during the scoping and design stage can allow critical cost items in any build/fit out be identified and alternatives discussed.

“For instance, you may have a plan to construct a mezzanine level in your operations, this although perfect for the intended process flows can be extremely costly to construct,” he said. “Sometimes, a client cannot see the forest for the trees so to speak – they are so intrenched in their business that they only see one aspect of the project – being to increase efficiencies in their production.”

Involving a builder with process engineering capability in the food and beverage industry, such as Total Construction, can allow a different set of eyes to see the requirements and suggest alternatives to the building layout that just don’t reduce the need for costly building works, but can improve the process flow overall.

How ECI works to develop an achievable budget.
First, a site investigation is carried out by the builder on the existing and proposed facilities to detail and identify all services required and what is available at the new site (power, gas capacities). It is important to note that to increase power or gas supply to a site can be very costly to the project and create delays. Another area that needs consideration in the case of an existing building to be fitted out is the structure’s integrity. Having to strengthen this to cope with the additional weight of fit out and services can often blow out project costs.
Then a workshop is carried out with all stakeholders to identify required efficiencies, confirm proposed outputs and flag any potential limitations. As part of this workshop, all production processes are mapped and detailed for both the existing and proposed operations.

A list is made of the capacities and dimensions of all equipment both existing and new is developed. This helps to identify all utilities and services that are required. It also sets the benchmark for power and gas requirements at the proposed site.

This process helps identify potential bottle necks in current processes and helps highlight any potential hygiene requirements in the new fit out. Getting all this data captured is critical in maximising efficiencies of the new facility.

A review of the buildability of the facility is done and sketch design layouts are completed to optimise process flows to best fit the client’s objectives. A building/fit out SWAT analysis is carried out and build/fit-out costs are derived. Through close consultation between the builder and client, this process allows savings to be identified early on in the design and layout of the facility.

A detailed design including all services and requirements is then developed and put to the market for live market costing. This will give the client a firm understanding of what they can get for their dollar.

Finally, this is where working to a budget comes in – once the ideal building and fit out costs are established it is possible to derive further reductions in the overall project spend through rationalising the design. This includes, but is not limited to, reducing the number and sizes of rooms, freezer/cool room capacities and locations, and finishes in the design. This can be done while keeping future expansion capability intact in the design and maintain the client’s required production output for the new facility.

The importance of food and beverage labelling

Food labelling – it can be a minefield. In an era of food allergens, many imported products, as well as a bevy of health and safety regulations, food and beverage manufacturers have their work cut out for them to make sure they create products that meet a wide range of food regulations.

It’s something not lost on Fiona Fleming who is the managing director of the Australian Institute of Food Science and Technology (AIFST), which is the body for food industry professionals who work in many different fields within the food and beverage industry. Fleming knows that food labelling can be a difficult subject to navigate, especially for those just starting out in the industry.

What are the main issues surrounding food labelling? Correct labelling of imported foods and declaration of food allergens provide significant challenges, according to Fleming. Australia does appear to be the food allergy capital of the world, with Melbourne leading the way.

There is no single reason for this, more a myriad of causes – peoples’ diets have changed, more sufferers are reporting their allergies and, in the case of Melbourne, some researchers believe low levels of vitamin D contribute due to the city’s cooler climate and children spending less time outdoors in the sun.

READ MORE: Six reasons why food labelling is important

Whatever the reason, consumption of a food allergen can have fatal consequences for those who are allergic to that food or foods. For someone with a severe allergy, exposure to the allergen can cause a life-threatening reaction called anaphylaxis which affects the whole body, often within minutes of exposure.

“They key allergens of concern in Australia and New Zealand are egg, milk, peanut, fish, crustacea, peanuts, soybeans, sesame seed, tree nuts, wheat and other gluten containing cereals, and lupin,” Fleming said.

“These are required to be labelled when present in a food under the Australia New Zealand Food Standards Code. And just to add to the confusion, both for those on the ground in Australia and those wanting to import food products, allergens required to be labelled in one country might not always be required to be labelled in another.”

For example, in Europe, mustard and celery are allergens that must be labelled, whereas in Australia they are not on the list of food allergens required to be labelled.

“Any ingredient that is in a food product has to be labelled, and it is up to the importer to ensure that foods they bring into Australia and New Zealand have the correct allergen declarations to comply with ANZ requirements,” Fleming said.

“Australian and NZ manufacturers have gone further with labelling following best practice guidance developed by the food industry. For example, allergen names are highlighted in bold text in the ingredient list which helps consumers when purchasing products.”

Food allergens are not the only important piece of information that needs to be put on food labels.

For imported foods, all of this information is required to be provided in English, meaning labels must be translated accurately and completely. Failure to include all of the information can potentially result in a costly product recall and injury to consumers.

Importers of foods into Australia have to be responsible and realise that ignorance of local labelling laws is no excuse if the correct information is not available to the buying public. There is an over-riding premise in law that ignorance of law is no defence.

“All food companies have an obligation to know the regulations under which they must operate, and they have an overriding obligation to provide food that is safe and suitable,” Fleming said.

“Accurate food labelling is important for ensuring food safety, and ignorance of the labelling requirements is no defence.”

First and foremost, manufacturers tend to initially concentrate on the product itself. Is it tasty? How much will it cost to produce? Where can we source the ingredients? Can we outsource the manufacturing of our product, or can we set up or own manufacturing facility?

Once a manufacturer gets their head around what is involved in crossing the t’s and dotting the i’s, correct labelling can sometimes be intimidating and time consuming. But there is help available.

Fleming is the first to acknowledge that there no easy route to labelling food and beverage products.

“Food labelling is quite complex,” said Fleming. “I do recognise that it is very hard to start up a food manufacturing enterprise because sometimes companies don’t know where to go to find the information they need.

“There are certainly organisations that provide training in food labelling. If you are in NSW, for example, you can go to the NSW Food Authority’s website where there is a lot of good information for starting a business, and they have some basic information around requirements for food labelling.”

The final piece of advice Fleming would give is with regard to preservatives and additives in food products. They, too, have to be approved for use, and labelled as part of the ingredient listing on products.

“Australia is a small country, population wise, and we import a lot of our products,” Fleming said.

“It is important to remember that just because something is approved to be used in a food product overseas, it doesn’t mean it’s been approved to be used here.

It can be challenging negotiating the regulations, but it is very important for companies to be aware of the requirements and put steps and processes in place to ensure they have the information and knowledge they need to ensure their products are fully compliant.

“I know that sometimes information is not easy to find, but there are also food consultants out there who can assist. The AIFST website has a page that lists members who are consultants and provide this sort of assistance to food companies.”

There are also tools available to food manufacturers developed by the food industry to assist with collection of information and labelling. For example, the Product Information Form, or PIF, is an industry-agreed questionnaire developed by the food industry, for the food industry, in Australia and New Zealand.

The PIF allows companies to include a variety of information about food products and ingredients in a single document that meets information needs for legal and regulatory compliance in Australia and New Zealand, in a standardised manner.

The PIF is an industry tool that can improve company efficiency and reliability in managing product specification and other related data when applied across the sector.

With respect to allergen management and labelling, the Allergen Bureau has a comprehensive website and tools available to assist with allergen risk assessment and labelling (https://allergenbureau.net).

“At the end of the day, as a food manufacturer, whether big or small, Australian or not, you have an important role in ensuring that consumers continue to enjoy a variety of safe and nutritious food that will contribute to their wellbeing,” Fleming said.

Mandatory requirements for labelling – the Big 11

1. Name of food
2. Name and address
3. Lot identification
4. Allergen declaration
5. Ingredient list
6. Date marking
7. Storage and usage instructions
8. Nutrition information
9. Characterising ingredients
10. Country of origin
11. Quantity marking

Why the food packaging industry needs to sell itself better

Keith Chessell is a packaging evangelist. Being in the industry for the best part of 50 years, he was there at the beginning when consumers and manufacturers alike knew that packaging sustainability was going to be an issue going forward for many industries, including food and beverage. He was there when the Keep Australia Beautiful campaign was launched and knows that the image of the packaging industry isn’t what it could be.

As well as being a consultant at Sustainable Packaging Design, Chessell is also heavily involved with the Australian Institute of Packaging (AIP) and the Australian Packaging Covenant Organisation (APCO) – you could say that packaging and all its issues are in his blood.

Generically, packaging doesn’t have the greatest of reputations among consumers these days. At best, it’s seen as a necessity to transport products from the factory to the retail outlet, while others at the other end of the spectrum see it as an unnecessary pollutant that chokes our waterways, oceans, parks and other recreation areas.

Being in an industry for five decades gives Chessell a unique insight into the issues, not just on what they are now, but how far the industry has come. And while he’s not about to sell packaging as a brilliant accessory to human endeavours, he said that the industry itself needs to do a better job of informing the public of its true role in the wider scheme of things.

At a recent SAI Global Food Safety conference held in Sydney, Chessell outlined some of the issues facing the packaging industry. One of the key discussions at the moment is in the area of reducing packaging. For example, Chessell compares opening up some toys to that of unpacking a piece of IKEA kit. While some may nod in agreement, a large number of companies have spent years reducing the amount of packaging in a product – not that the public would know.

“The focus from many in industry over the past 20 years has been on removing and reducing packaging where possible,” said Chessell.

“ Some companies are now at the stage where they have reduced everything they can. I can remember eight years ago saying, ‘I can’t take any more out of my packaging with my products’. If the boss wants me to save another $2 million, I’ll start having other issues, such as maintaining the integrity of the packaging.”

Chessell also pointed out that most companies now do not want to overpack a product because it is becoming economically unviable to do so. This is where it is necessary to start educating people on the why. He cites the examples of cucumbers and bananas that have plastic packaging.

“Why are some cucumber wrapped in plastic? I know the answer, but most people don’t. Why not put a sign above that cucumber saying, ‘We’re doing this because it extends the shelf life of this cucumber’. It’s the same with wrapped small bananas. People ask ‘why?’ Well, it protects the fruit, stops it from bruising and is designed to reduce food wastage and spoilage.”

However, lauding the innovations that packaging can sometimes have unintended, negative consequences. He talks about a recent entrant into the AIP’s Packaging Innovation and Design (PIDA) awards.

“One of the companies that entered this year’s awards was a fish company with a fabulous innovative pack that extended the shelf life by 15 days,” he said. “But the company chose to not communicate this significant benefit to the consumers on-pack as they did not want a perception that their fish wasn’t fresh. For this company by promoting the extension of shelf life to the customer potentially offered a negative connotation.”

And it’s when Chessell starts throwing out stats on food waste that you begin to appreciate his frustration at how packaging is undersold. Globally, 1.3 billion tonnes of food is wasted at an estimated cost of $1.3 trillion.

According to the National Food Waste Baseline Executive Summary, Australia generates about 7.3 million tonnes of food waste annually. Of that, 1.2 million tonnes is recycled, 2.9 million tonnes is recovered, while the remaining 3.2 million tonnes is disposed of at landfills. Households contribution is 34.3 per cent and primary production 31.3 per cent, while manufacturing comes in at third with 24 per cent. With figures like that, it is no wonder Chessell is passionate about reducing food waste.

“Unfortunately, many consumers see all packaging as a negative. They don’t see any useful purpose for it and don’t understand the true role of packaging. I believe we can change that if we start to communicate better to customers about why we use certain types of packaging. They might then understand there are other benefits of packaging if we start to put more information on our packaging.”

Are there other answers? How can food and beverage companies sell the role of packaging in the food chain to the public? How do we better communicate that packaging plays a huge role long before the pack needs throwing away once the food has been extracted? There are several things, according to Chessell, and it’s all about education, education and education.

Packaging’s main role is to contain and protect goods and keep them in perfect condition until they are consumed. It also carries important information on the label that gives insights into the ingredients. Adding the Australasian Recycling Label on-pack to communicate the true recyclability of the pack is also important.

The final part of the jigsaw is the on-pack communication, that allows the manufacturer to expound the virtues and benefits their food or beverage encompasses. These criteria need to be explained loudly and often, said Chessell. Getting the public educated is one way of reducing stigmas surrounding packaging, and Chessell points out the AIP itself is taking the initiative by developing a set of Save Food packaging design criteria for reducing food waste for the industry. This criteria includes improved barrier packaging and processing; retaining nutrition; active and intelligent packaging; utilising skin (vacuum), MAP and EMAP packaging formats; portion control packaging; easy opening/resealable packaging; and controlled dispensing, which will mean all the product will be consumed as opposed to leftover product being thrown out (i.e. sauce bottles etc).

Chessell believes that the AIP has started the conversation and he wants it to continue.
“Packaging is a difficult topic these days and the important question we need to ask is, ‘What is the consumer’s view on packaging and how can we help change the perception so that they start to understand that intuitive packaging can actually help minimise and prevent food waste?”

This is something the AIP and Chessell are well on the way to doing.

Why St.George funds food and beverage enterprises

With interest rates at an all-time low – and some industry pundits stating they might go lower – the opportunities for growth, especially for an industry like food and beverage, are enormous.

Mark Burgess is the experienced and affable relationship director – consumer goods leader at St.George Bank. His portfolio of customers are in the food and beverage arena and he sees solid opportunities within the industry over the next 12-18 months. It is one of the bank’s growth sectors, mainly propelled by the domestic and global demand for quality Australian produce. He’s also a good gauge of what other factors are propelling the market at the moment, and Burgess cites new technologies and food trends as being market drivers.

At a recent St.George Signature Food Event, Burgess talked of not only how the food and beverage sectors are looking healthy, but how the role of banks has changed over the past decade.

“I think within the last few years – the banks have shifted away from being what I would call ‘order takers’ – like at McDonald’s – to that of being more trusted business advisors. That is one of the reasons St.George moved to an industry model four years ago because we wanted to have industry experts to not just be there to take orders from customers, but also have insightful discussions with them about their industry as well as their growth plans and where they see themselves going. Then talking to them about how we can support them to grow and prosper. It’s really about that. It is one of the reasons I joined the bank.”

READ MORE: How a 1960s cartoon predicted the future of food

Having been a director at Ernst and Young and a senior corporate advisor, Burgess likes helping businesses grow. It’s another reason he likes the food and beverage industry.
“While we are seeing growth with our customers who are the larger players in the market, as a bank we also focus on family businesses and the middle marketplace, too,” he said.

Why? Burgess sees them as lean, hungry and leading the charge when it comes to some of the newer market sectors within food and beverage.

“Those companies are really nimble, and quite dynamic and they are looking at new areas that they can diversity in,” he said. “For example, a lot of my customers look to supply Coles and Woolworths, and it is those customers who are leading the charge in the healthy alternatives market. Then there is a push for the vegan movement, as well as alternative substitutes for meats and other core products.

“Some of those businesses are ahead of the curve and have a huge focus on innovation within their organisations. I’ve got one customer who is a traditional meat supplier and they are now getting into non-meat products.”

Although Burgess is excited about the market and where it is headed, this doesn’t mean the bank has a laissez-faire attitude towards doing business. There are still systems that have to be followed. A large portion of food and beverage businesses involve the manufacture of perishable items, not exactly great assets to put in the ledger when talking to your bank.

So what does a company have to do with regard to getting a loan if they need to recapitalise, or more often than not, expand their business?

“If we’re doing cash flow lending as opposed to bricks and mortar property lending in the food space, we look at your working capital cycle. We are relying on your debtor book to fund your business,” he said. “We look at the strength of your relationships and what your terms are like with those debtors. We then look at how efficient your supply chain is. It’s also about the experience of the management of the company, too.”

And how does the bank find the attitude of the big players like Woolworths and Coles when it comes to helping out not just those who are regular brands on their shelves, but those new to the market? Burgess works closely with them and said they are very supportive of entrepreneurs because they want to see new products on their shelves.

“They want to get onboard because an entrepreneur could produce a new product that might fly off the shelves, and that product might also be a reason why consumers go to a Woolworths store instead of Coles or vice versa,” he said.

New technologies are also a driver for the industry, and Burgess and his team are seeing those innovations first-hand from their customers.

“I was talking with a customer today who specialises in ready-made meals, and he has
been flat out,” said Burgess. “His product had a shelf life of three to four days, but because a packaging specialist brought out a new technology, his product now has a shelf life of 7-10 days. Something as simple as that has made a huge impact on his business in terms of wastage and time savings from deliveries.”

Burgess loves the industry, not just because he’s a foodie, but because it is dynamic, ever changing. He is very excited about the future of banking in the sector, and the industry itself.

“The thing I love about this role is that it is all about seeing the customers grow and prosper and supporting them in their growth plans,” he said. “Given my corporate advisory background, I can provide meaningful insights around business strategy and direction. The food and beverage space is a rapidly changing environment and it’s exciting.”