Candy Industry April 2011

New Alice SH Compact “ – for highest dough performance”

New SuperNova Energy “World’s first green chocolate temper”

Aasted ApS Bygmarken 7-17 DK-3520 Farum T: +45 4434 8000 F: +45 4434 8080 [email protected] www.aasted.eu

New NIELSEN Cooling tunnel ”- with optimized sanitary design”

Contents April 2011

Kristine Collins

Bernard Pacyniak

Associate Editor 847.405.4050 [email protected]

Grace Weitz

Editorial Intern 847.405.4077 [email protected]

COVER STORY Kristine Collins

MANUFACTURER PROFILE

14

European Sales Manager + 44.207.792.3344 (London) Fax + 44.207.792.3331 [email protected]

Diana Rotman

ClassiÀed Sales Manager 847.405.4116 [email protected]

Jill L. DeVries

Corporate Reprint Manager 248.244.1726 [email protected]

Steve Pintarelli

Group Publisher [email protected]

SHOW COVERAGE: ISM, UPAKOVKA Sarah Zagacki

26 Upakovka, Russia’s leading trade fair, attracted some 20,000 trade visitors from Russia and the neighboring countries. ALSO IN

THIS ISSUE ...

RC2

RC4

RC8

Sweet Talk

Associate Editor Crystal Lindell ponders the possibility of pay-by-phone technologies in the retail environment.

New Products

Kashi TLC Cherry Vanilla Cereal Bars, Angell bars, Tangy Zangy Twist Sticks, Coco Preggers, Pop Rocks Grape and Eli’s Earth Bars are among this month’s featured introductions.

Industry Trends: Hard Candies

ADVERTISING North American Sales 847.224.8944 [email protected]

Dee WakeÀeld

Jennifer Allen

20 The 41st International Sweets & Biscuits Fair in Cologne looks to comfort anxious consumers with a broad assortment of whimsy and well-being.

EDITORIAL Editor-In-Chief 847.405.4004 [email protected]

Crystal Lindell

Volume 176, Number 4

14 TUNNOCK’S TEACAKES Scotland’s confectionery treasure, Tunnock Ltd., continues to deliver a unique range of traditional treats efÀciently thanks to multimillion-dollar investments in automation and technology.

Publisher 847.224.8944 [email protected]

PRODUCTION Advertising/Production Manager 818.224.8035 x2214 [email protected] Art Director

BNP CORPORATE DIRECTORS Timothy A. Fausch

Publishing

John R. Schrei

Publishing

Rita M. Foumia

Corporate Strategy

Ariane Claire

Marketing

Vincent M. Miconi

Production

Lisa L. Paulus

Finance

Michael T. Powell

Creative

Nikki Smith

Directories

Marlene J. Witthoft

Human Resources

Emily Patten

Conferences & Events

Beth A. Surowiec

Clear Seas Research

RC8

AUDIENCE DEVELOPMENT Amy Schuler Group Audience Development Mgr. Stacey Noocha Multimedia Coordinator Carolyn M. Alexander Audience Audit Coordinator

Postal List Rental E-mail List Rental

LIST RENTAL Kevin Collopy, 845.731.2684 x 684 [email protected] Shawn Kingston, 800.409.4443 x 828 [email protected]

New Áavors, niche markets drive innovations.

RC10 Cover Story: Customers don’t want to

go anywhere else

Using a blend of an old-fashioned family atmosphere and the latest technology, Rutter’s Farm Stores lure customers.

For subscription information or service, please contact Customer Service at: Tel. 847.763.9534 or Fax 847.763.9538 or e-mail [email protected] or visit www.candyindustry.com.

RC14 Seasonal Strategies RC 4

Retailers can look to line extensions, proven products for the holidays.

RC15 Bits & Pieces

4 CANDY INDUSTRY April 2011

Printed in USA

www.candyindustry.com

visit us at

orf) K (Dusseld INTERPAC 2011 18th May to th 2 1 from Hall 1-B17

Z.I. Le Closeau 5, rue Auguste Perdonnet 77220 Tournan-en-brie - FRANCE Tél. : +33-(0)1 64 84 50 00 FAX : +33-(0)1 64 84 50 01 www.dumoulin.fr E-mail : [email protected] RCS MELUN 582 045 852

IDA-C Chocolate coating and varnishing

AUTOMATIC CHOCOLATE COATING INSTALLATION: THE PERFECT COMBINATION OF DESIGN AND KNOW-HOW FOR THE BEST QUALITY PRODUCTS IMPROVED PRODUCTIVITY, FLEXIBILITY AND CONSISTANCY WITH LOWER LABOUR AND ENERGY COSTS

Contents

RC 4

D E PA R T M E N T S OPENING SHOTS

8

Great Scot! It’s a Tunnock’s Teacake

Editor Bernie Pacyniak gets to know the man behind Tunnock’s Teacake a “wee bit” better.

CI 70

NEWS & ANALYSIS

10

Sustainable effort reason behind Mars’ ACE award

Plus: Caotech, Carle & Montanari and Probat form cocoa partnership; Royal Designation for Duyvis Wiener B.V.

74

International Supplier Spotlight: Aasted

76

Supplier Spotlight: Wireless Belting Company of America

SPECIAL REPORT

48

interpack Preferred Suppliers Guide

As the final preparations for this year’s interpack show in Dusseldorf come to a close, the excitement begins to mount for attendees and exhibitors. From May 12 – 18, interpack will present packaging and processing solutions for confectionery, snack and bakery manufacturers.

INGREDIENT TECHNOLOGY

70

Natural Colors

As the European natural colors’ market spills over into the U.S., this specialized sector continues to grow.

CANDY WRAPPER

82

Aunt Sophia’s legacy lives on

At Spokane, Wash.-based Bruttles, owner Carol Measel continues her Aunt Sophia’s special “soft” peanut brittle tradition alongside other special treats.

CI 82

Haas-Mondomix B.V. is a business unit of privately owned Franz Haas Waffel- und Keksanlagen Austria. As a leading supplier of continuous aeration systems and related process equipment, Haas-Mondomix B.V. can be found around the world in more than 50 countries, serving mainly the bakery, confectionery and dairy industries. Whether unit machines or turnkey projects, a dedication in fully satisfying the highest requirements is the foundation upon which our success has been built. Being a part of the Haas group makes us capable of delivering solutions to our customers worldwide.

www.mondomix.nl 6 CANDY INDUSTRY April 2011

www.candyindustry.com

Interpack May 12 – 18, 2011 Messe Düsseldorf, Germany Visit us in hall 6, booth B09-C58 We look forward to seeing you!

Production and packaging lines from Bosch achieve the agreed performance. Day after day. Year after year. High speed and low material use reduce your costs per piece and improve your equipment efficiency. Experienced employees with extensive know-how guarantee professional service worldwide. Learn more at www.boschpackaging.com

schwarzspringer

Produced and packaged as promised. Bosch.

Opening SHOTS

Great Scot! It’s a Tunnock’s Teacake! By Bernie Pacyniak

Y

ou can’t help but like Boyd Tunnock. Mind you, you might not understand him when he gets that Scottish brogue going, but it’s nearly impossible not to enjoy his company nor recognize his achievements. But then, what’s not to like about a man that’s responsible for producing Tunnock’s Teacakes, a delicate combination of Italian meringue, biscuit and chocolate. (Of course, those Tunnock Snowballs, Caramel Wafers and Caramel Logs are wonderful as well!) It’s also hard not to be impressed with someone who long ago figured out that midsized doesn’t mean you have to think or act smaller than you are. For the past 15 plus years, Boyd has — as he states in this month’s cover story — kept the Tunnock Ltd. factory “up to standards” by investing in technology and automation on an annual basis. Be it replating baking plates on Vicars ovens, refurbishing SIG packaging machines or installing a new Schubert pick ‘n place robotic line, Tunnock has not been afraid to take advantage of processing breakthroughs. Last year alone, the company spent nearly $9 million keeping the plant up to standards. At the same time, he’s adamant about maintaining quality, so much so that he’s not timid in retaining traditional techniques to ensure that Old World quality and flavor remain in his products. So if it means holding continuously cooked caramel in a retention kettle for 8 CANDY INDUSTRY March 2011

Boyd Tunnock, managing director of Tunnock Ltd., and Bernie Pacyniak at the Kip Marina, about 40 kilometers northwest of Glasgow. Tunnock’s sail boat, the Lemarac, appears in the background.

about a half hour or so to maximize the flavor, so be it. And if it means purchasing albumen in crystal form from the United States so that the cream in a Teacake holds up better, that’s the way it is. “I like what I make, myself, and what I like, I make,” the 78-year-old Scotsman explains. There’s more to Boyd Tunnock that specialty confections, mind you. The avid sailor — he owns a Moody 38 sailing boat christened Lemarac (caramel spelled backwards) — has helped sponsor many a race on the Clyde (the river that runs through Glasgow and flows toward the west coast of Scotland). He’s also a member of several yachting clubs, contributing both funds and sweets to keep the sailing tradition alive and well in Scotland.

And although he owns a 2010 Ghost Rolls Royce (Tunnock admits it’s an indulgence he inherited from his father, pointing out that if his staff see a Morris Minor sitting outside the factory, it’s time to start worrying), the grandson of founder Thomas Tunnock doesn’t put on any airs. As his son-in-law and the company’s operations/sales director, Fergus Loudon, says, “a more generous and unassuming man you’ll never meet.” Unfortunately, Loudon believes — and I believe Fergus is right on this point — the confectionery industry doesn’t “breed personalities like Boyd Tunnock anymore.” Indeed, in today’s world of quarterly reports and multinational acquisitions, personality pales before PowerPoint presentations. There’s cause to celebrate, however. Tunnock notes that his father worked until he was 86. He plans to surpass that mark, setting his sights on being active and still at work at the ripe wonderful age of 100. Given that the man comes to the plant every morning at 6 a.m., a mere 350 steps away from his home, I wouldn’t wage money against this Scotsman. As the famed Scottish poet Robert Burns (Tunnock happens to be born on the same day Burns was, January 25) writes “From scenes like these old Scotia’s grandeur springs.” Cheers, Boyd! www.candyindustry.com

See us at

Düsseldorf Germany 12. - 18.05.2011 Hall 3 Booth B07 / C08

Ice-hot pleasure TURBOTEMPER

®

The most successful tempering system worldwide. Dependable · Quality Improvement · Profit Boosting

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SOLLICH KG · Your Chocolate and Candy Specialist Siemensstraße 17-23 · 32105 Bad Salzuflen · Germany Telephone +49 (52 22) 950 - 0 · Fax +49 (52 22) 950 - 300 E-Mail: [email protected] · www.sollich.com

News

& A N A LY S I S

Sustainable effort reason behind Mars’ACE award

W

hen Mars, Inc. received the U.S. Secretary of State’s 2010 Award for Corporate Excellence (ACE), the recognition acknowledged not only the company’s most recent efforts in improving economic development in Ghana’s cocoa-growing region, but indirectly its long-standing commitment to improving cocoa farmers throughout the world via research, training, investment and personal involvement. The ACE award carries with it a special cachet since it’s an honor for good corporate citizenship that has its origins with American embassies around the world U.S. companies are nominated by chiefs of mission worldwide and the winners are chosen by the Principals’ Award Selection Committee. The Committee, Jeff Morgan, director of global programs for Mars, chaired by the Under Secretary has worked for the past 32 years helping cocoafor Economic, Energy, and growing communities. Agricultural Affairs, includes a representative of the Secretary, the Under Secretary for Global Affairs, the Under Secretary for Public Diplomacy and Public Affairs, In a way, the ACE award simply and various Assistant Secretaries. It also recognizes founder Forrest Mars’ includes senior officials from the U.S. operating philosophy, one that Agency for International Development, emphasizes “mutality of benefits” for all Overseas Private Investment Corporation, stakeholders. As Jeff Morgan, director MCC, and the Department of Commerce. of global programs for Mars, explains, In 2010, Mars was one of three winners he’s been involved in a broad range of (Cisco Systems, Israel, and Deniamatric, corporate cocoa aid programs for the past Guatamala, were the other two) chosen 32 years, personally having been in Brazil, from a record 78 nominations. West Afrrica and Indonesia promoting Donald Teitelbaum, U.S. Ambassador best practices. to Ghana, cited Mars Partnership for Noting that Mars has worked African Cocoa Communities of Tomorrow with several partners in Ghana and (iMPACT) as well as its commitment to elsewhere, such as the Sustainable Tree cocoa sustainability as critical elements in Crop Program, the Gates Foundation Mars capturing the ACE award. and the World Cocoa Foundation, 10 CANDY INDUSTRY April 2011

Morgan emphasizes that the company is focused on taking a more holistic approach to helping communities in cocoagrowing areas. “During the last 20 years, we’ve gained a significant perspective on cocoa farming,” he says. “The most severe problem is that farmers are often getting only 300 to 350 kilos per hectacre, which is way too low to maintain a sustainable operation.” He also points out that many other factors come into play, such as the aging of trees, many of which are 20 to 30 years old, proper pruning techniques, issues with pesticides, and the need for soil fertilization. By educating farmers about better cultivation techniques as well as by improving cocoa stocks, farmers can reach 500 to 600 kilos per hectacre. Morgan believes that 1,000 to 1,200 kilos per hectacre yields are doable. “By better breeding and distribution of better gene types, we can rehabilitate farms,” he says. The mapping of the cocoa genome will go a long way in improving cocoa varieties so that they are disease-resistant, high yielding and flavorable. As Morgan points out, it is truly to everyone’s benefit, from corporation to consumer, from farmer to financier, that cocoa communities reap the benefits from this wonderful crop. It’s the one ace that global cocoa community has to play in keeping its industry vibrant. www.candyindustry.com

Stand no. 3E07, Hall 3

News & Analysis

S U PP LIER NEWS

Caotech, Carle & Montanari and Probat form cocoa partnership

T

hree global leaders in their respective sectors — Caotech, Carle & Montanari and Probat — have established a “preferred partnership” to better service the cocoa processing industry. The three companies, each mastering different steps in cocoa processing, have joined their expertise and competence to provide customers who manufacture cocoa from the bean with turnkey cocoa processing plants. Tailor-made solutions from the partnership are designed for cocoa processors to take advantage of reliable and modern lines at competitive prices. Customers will be able to discuss their projects with any of the three companies. Every step of the process will be managed by these experienced partners providing an integrated solution. The Netherlands-based Caotech, a leading manufacturer of ball mills for processing cocoa, develops, together with its customers, the most efficient production lines for cocoa.

Using Caotech ball mills, producers of cocoa products are able to supply exactly what the market needs, with unit capacities ranging from 1,000 to 6,000 kg/hour. Pre-grinding is done by beater blade mills for cocoa nibs, followed by fine grinding on low-speed ball mills. Headquartered near Milan, Italy, Carle & Montanari is also a world leader in the manufacture of machines, lines and complete turnkey solutions for cocoa processing, chocolate mass preparation and moulding. It supplies complete manufacturing lines through the wrapping and secondary packaging of confectionery products. Carle & Montanari’s cocoa processing equipment includes the PO line of horizontal presses and their ancillary accessories, manufactured in a wide range of versions, with hourly capacity ranging from 450 kg/h up to 1,400 kg/h of cocoa mass. The company also provides and installs complete lines from pressing to cooling and packaging of cocoa liquor, butter and powder. Probat, a global market leader in roasting machines and related equipment for the coffee and food industry, has been successfully active in the field of cocoa processing for years. The German-based company designs, delivers and starts up complete lines for the cocoa industry and specializes in the production of nib roasting machines. With a standard batch capacity of up to eight tons, the

Caotech’s CAO3000 ball mill well-established Probat FRD/C is the largest cocoa nib roaster worldwide. Besides roasting machines, Probat offers complete processing line solutions adapted to the special needs of the cocoa industry. All three companies will be exhibiting at interpack this year and are encouraging attendees to discover the benefits of the new partnership in detail by visiting their respective booths: Caotech (Hall 3, Booth C24/C26); Carle & Montanari (Hall 3, Booth E31/F36); and Probat (Hall 2, Booth D12). (Continued on p. 68)

Left: Probat produces a wide range of nib roasting machines. Right: Carle & Montanari’s PO line of horizontal presses.

12 CANDY INDUSTRYApril 2011

www.candyindustry.com

Hall 4, Stand A25

Manufacturer ProÀle

T eacakes e acak e s (Left) Boyd Tunnock, managing director of T. Tunnock Ltd., poses with a 1930s Morris 8 delivery van. (Bottom) Rows upon rows of Teacakes head toward enrobing.

Scotland’s confectionery treasure, Tunnock Ltd., continues to deliver a unique range of traditional treats efficiently thanks to multimillion-dollar investments in automation and technology. By Bernard Pacyniak

“T

unnock’s Teacakes, anyone?” To those who aren’t familiar with the confection, one might think that a scone-like product that’s typically served with afternoon tea was being offered. But ask any Scotsman (or woman) worth his/her brogue, and they’d tell you otherwise. This delicate chocolate-enrobed confection consists of a biscuit base supporting a healthy dollop of Italian meringue cream. In production since the early 1960s at T. Tunnock Ltd. in Uddingston, Scotland, a suburb just outside Glasgow, Tunnock’s Teacakes are sold throughout the UK and in 30-plus countries to the delight of all. The Teacakes, together with sister products Caramel Wafers, Snowballs and Caramel Logs, comprise the entire confectionery lineup for the 121-year old, fourth-generation company that integrates tradition with technology. Boyd Tunnock, the 78-year-old grandson of founder Thomas Tunnock, continues to demonstrate how a longterm investment strategy combined

with personal integrity and ingenuity has enabled a midsized enterprise to prosper amidst an intensely competitive confectionery landscape. Having garnered Europe’s highest confectionery recognition, the European Candy Kettle Club Award in 1999, Boyd has refused to rest on his copper laurels. “We’ve been continually upgrading the plant to keep up the standards,” he says. Of course, Boyd’s — and his family’s (daughter Karen Loudon and son-in-law Fergus Loudon head up operations and sales/operations, respectively) — standards are set fairly high. Despite the company’s relatively modest size — sales topped £35 million ($58 million) in 2010 — investments reached £5 million ($8.3 million) last year. In typical Scottish fashion, all of the capital expenditures were self-financed. “We’ve always invested our own money, that is the profits, back into the business,” Boyd explains. The equipment installed last year ranges from several Bosch Packaging Technologies flow-wrappers, foil

Wee, mallow, rounded, choccy biccy O, what a panic’s in my tummy! One needs tae eat ye hasty Wi bickering brattle! I wad be laith to rin oot of thee, An hae to eat a tattie. Scottish author Craig McGill’s ode to a Tunnock’s Teacake, a parody of Robert Burns’ “To a Mouse” given at a dinner honoring the 250th anniversary of Burns’ birth. www.candyindustry.com

wrappers and a robotic multi-packer to a Rotzinger stacker and a Schubert pick ‘n place robotic packer. This month, the company already has installed a second Schubert robotic packer as well as a new Sollich enrobing

At a Glance T. Tunnock Ltd. Headquarters: Uddingston (Glasgow), Scotland Plant: 200,000 sq. ft. Employees: 550 Sales: £35 million ($58 million) Output: 15,000 tons annually Products: Caramel and chocolate-enrobed wafers, enrobed specialty confections. Brands: Tunnock’s Teacakes, Tunnock’s Caramel Wafers, Tunnock’s Snowballs, Tunnock’s Caramel Logs. Product mix: Caramel Wafers – 51%; Teacakes – 37%, Caramel Logs – 6%, Snowballs – 6% Management team: Boyd Tunnock, managing director; Karen Loudon, operations director; Fergus Loudon, sales/operations director.

April 2011 CANDY INDUSTRY 15

Manufacturer ProÀle

Caramel comes off a continuous cooker onto a water-chilled belt where it undergoes about 10 minutes of cooling. An operator cuts the caramel into slabs and places them into tubs for wafer production.

line. There’s more on the drawing boards, but as the ever-charming and charismatic Boyd points out, “You need to let things breathe a bit,” to let the mechanics, electricians and operators become familiar with the new equipment and capabilities. A walk through the four-story, 200,000-sq.-ft. facility quickly reaffi rms the Tunnock family’s commitment to remain current in processing technology. As Boyd explains, the use of robotic systems was introduced fairly early at the plant, going back 10 years when the company installed an OPM robotic packer for its Caramel Logs product. Successive investments since then have helped the company improve efficiency and productivity as well as meet retailer demands for multipacks. The push toward more automated processes, however, has not affected the company’s philosophy regarding quality. As Boyd simply says, “I like what I make, myself, and what I like, I make.” Consequently, Tunnock Ltd. is one of the few companies that produce caramel-fi lled wafers. Here, too, Boyd ensures that there are no shortcuts taken in caramel production, Although the company uses a Ter Brak continuous cooker, it 16 CANDY INDUSTRY April 2011

didn’t take long for Tunnock’s managing director to realize that the flash cooker used to brown the milk content of the caramel and drive off moisture, drove off flavor as well. Consequently, caramel is drawn from the continuous cooker and pumped into a retention kettle to give it some “residence time” as a means of ensuring a full caramel flavor note. Moreover, to further preserve that flavor note, all caramel produced during the two- , and at times three-shift, operation at the

they undergo chilling for 10 minutes before being cut to size and then stored for 24 hours. As Boyd explains, it’s important to let the caramel rest, thus allowing moisture migration. During that migration, the caramel expands, which would cause a variety of quality control issues if the wafers were immediately enrobed. Once the wafers have gone through the curing period, they are slightly trimmed to remove excess caramel and fed toward a slitting machine. After slitting, the caramel sticks head toward a high-speed Sollich double enrober before they travel toward cooling and packing. After cooling, the wafers head toward a Rotzinger stacker, which accumulates the wafer sticks and feeds them as needed to a Bosch Sapal DPN7 flow-wrapper that runs at 400 pieces per minute. Capable of providing 10 minutes of hold time, the Rotzinger stacker has helped reduce downtime issues that typically frequent minor stoppages in high-speed wrapping lines. Once the wrapped caramel pieces leave the Sapal unit, they head toward a HCM SIG

(Left) Teacakes come off the production line and are visually inspected before they head toward foil wrapping. Once wrapped, the Teacakes travel toward a Schubert pick ‘n place robotic packaging unit, which places eight into a box.

plant is used within 24 hours. Nearly 10 tons of caramel is made daily on site. All of the wafers come off five oven lines, three of which have 81 plates and two 99 plates. Caramel is pumped into a creaming station where the caramel is applied to create four layers amidst five wafer sheets. The sheets then travel to a Hebenstreit spiral cooling system where

multipack unit, which combines eight individually wrapped Caramel Wafers into one multipack. A robotic packer places 20 multipacks into a carton at a rate of five cartons per minute. Teacake production follows a similar hi-tech process, albeit with its own set of specialized nuances. For example, the company turns out 3.5 million www.candyindustry.com

Manufacturer ProÀle

(Counterclockwise) After slitting, wafers head toward a Sollich enrober for a double layer of chocolate. Once cooled, they travel toward a Bosch Sapal DPN-7 Áow-wrapper capable of handling 400 pieces a minute. The individual bars are then combined into multipacks using a HCM SIG unit.

Teacakes and Snowballs, Tunnock Ltd. imports albumen crystals from the United States to ensure the right consistency for the cream. “It costs a little more, since most companies don’t supply albumen in crystal form, but it’s better product as a result.” Thus, it’s not surprising that the company also toasts its own coconut.

unique products, and accounting for nearly 15% of all revenues. Opportunities continue for further biscuits a week, which are used as a export expansion as the company base for the Teacakes. pursues avenues in the United States as Prior to feeding the biscuit bases to the well as other emerging markets. Teacake production lines, they undergo a Boyd believes that the quality as well 48-hour conditioning period. Afterwards, as the uniqueness of the company’s they are fed into a 16-nozzle depositing product lines bodes well for the future. line that perfectly squeezes out a golf ballUnderscoring the fact that the family’s sized dollop of Italian meringue onto operating philosophy the biscuit base. precludes discounting, “Fair fa’ coconut sprinkled face, The naked Teacakes then travel Boyd believes strongly Great chieftain o the teacake-race! that consumers value through a cooling tunnel to set before they head toward a Sollich and taste, Aboon them a’ ye tak your place, quality enrober for dual layer of chocolate. particularly in these postmallow, choc, or cream: Tunnock Ltd. produces both milk recessionary times. and dark chocolate varieties. As he notes, at Weel are ye wordy of a grace Once cooled, the Teacakes head Tunnock Ltd. neither the toward a Bosch foil wrapper before price nor the size of the As lang’s my arm.” proceeding to a Schubert robotic product have come down. pick ‘n place unit, which employs He also sees additional Scottish author Craig McGill’s ode to a eight arms to place the pieces into growth opportunities in Tunnock’s Snowball, a parody of Robert 6-count boxes. leveraging the power of the Burns’ “Address to a Haggis.” With a second Schubert robotic existing brands, such as unit installed last month, Tunnock Ltd. the most recent successful expects to keep pace with demand as exWith a knowing grin, Boyd says that debut of the company’s Mini Caramel panded distribution pushes sales higher. quality isn’t the only reason Tunnock Wafers, snack-sized versions (three wafer It’s important to note that similar Ltd. takes that extra step. layers featuring two layers of caramel) of to caramel, the company produces its “It’s more economical,” he says. the originals packed in a tub. own chocolate and Italian meringue. Not surprisingly, it’s been economies “It’s probably something we Using a series of five MacIntyre refi ner/ of scale that have helped the company could probably do with Teacakes or conches, the company processes 70 to hold its own within the fiercely Snowballs,” Boyd says. 75 tons of chocolate made with pure co- competitive UK market. Exports have Whatever brand leveraging the coa butter and cocoa liquor each week. also played a role, with Saudi Arabia company decides to pursue, it’s clear With regards to the Italian meand Canada being the two largest that it will be done in the Tunnock ringue, which is used for both the import markets for the company’s tradition, which means done right. 18 CANDY INDUSTRY April 2011

www.candyindustry.com

Art of business

Hall 3, Booth B29

The Tanis Group is an international operating producer of machinery for the confectionery industries, established in the Netherlands. Not just machines, but also complete process solutions. We offer a flexible mix of technical ingeniousness, knowledge of the lines and customer oriented craftsmanship. The Tanis Group… from concept to final product

ISM

IN REVIEW

A return to ‘sweetness and light’ The 41st International Sweets & Biscuits Fair in Cologne looks to comfort anxious consumers with a broad assortment of whimsy and well-being.

P

ersonally and professionally, countless consumers were looking for a more hopeful year come 2011, a return to some “sweetness and light.” Never a laggard in trend-spotting, the confectionery industry demonstrated once again that it’s attuned to its customers. Visitors to the 41st International Sweets and Biscuits Fair (ISM) in Cologne in late January and early February had plenty of opportunities to see and sample endless examples of more playful treats, everything from board games and bonbons to storytelling sweets. That playfulness extended to the research and development departments where confectionery technologists fused flavors such as mango, lime and orange together or resurrected local (European) fruits and herbs such as serviceberries, sloes, quinces and elder. 20 CANDY INDUSTRY April 2011

Of course, these days, being sweet also means being socially conscious. For example, there’s Swiss-based Chocolats Halba, a subsidiary of mega-retailer COOP, which presented a carbon emission neutral chocolate. Experts at the company calculated that one 100-g. bar of chocolate produces between 150 to 180 grams of CO2 emissions, depending upon the recipe. Milk chocolate creates a bit larger carbon footprint, 220 to 280 grams. The company then developed a strategy of how to offset these CO2 emissions, including a program that involves reforesting the rain forests within the cocoa-producing regions. Products that also allow consumers to treat themselves with a clear conscience were on the uptick as well. Is it a surprise that 100% vegetarian snack bars and all-vegetable gummies made a splash at the show?

Gimmick or shrewd gambit? It’s hard to say. Certainly some of these themes were evident in what journalists choose as the top innovations at the fair. Almost 100 journalists from all over the world participated in the poll to select the top three innovations presented in ISM’s New Product Showcase, which featured 87 sweets. The top three innovations — Cacobean AG: KIDI-CHOC child-friendly chocolate with low sugar content; ültje: Bolivian peanuts; and Pralibel N.V.: Dessert pralines — weren’t necessarily breakthrough product concepts. Rather, they pounced on consumer penchants for better-for-you, exotic origin and visual and sensual appeal. Basel, Switzerland-based Cacobean AG products contain 40% less sugar than conventional chocolate and have childfriendly packaging. Included with the www.candyindustry.com

chocolate is a sheet with a fairy tale, short story, or an interesting article. Not necessarily groundbreaking, but cute and trendy, nonetheless. The “Bolivian peanuts” from Schwerte, Germany-based ültje contain a 200g. mix of different types of peanuts that all come from Bolivia. To create this product,

ültje works together closely with Bolivian farmers to improve the nuts that have such a unique origin. This results in natural and carefully processed peanuts from the rainforests of South America. The Bouillon, Belgium-based company Pralibel N.V. developed a series of multilayer pralines, which come in a variety of flavors and are packaged in appealing, nostalgic boxes. It would be incorrect, however, to suggest that these themes are the main drivers in the confectionery industry. Innovation, of course, attracts attention and publicity. It is also capable of creating new segment niches. Nevertheless, mainstream confectionery products, driven by brand loyalty and awareness, still dominate consumer purchases. It’s clear, however, that the major multinational and midsized companies are keeping an eye on a host of product launches that attempt to connect to the consumer by taste sensations, exotic origin, exclusivity, whimsy or social consciousness. Consider Wiebold Two products that reÁected emerging trends at this year’s Confiserie, which ISM show: Chocolate Halba’s carbon-neutral chocolate bar and Wiebold ConÀserie’s Coffee To Eat pralines. emphasized the art in www.candyindustry.com

artisan chocolates by engaging Michael Fischer to create extraordinary packaging for the company’s pralines. The company, which recently established Wiebold Chocolates, Inc. as an American subsidiary, also unveiled a new Coffee To Eat line of pralines in three flavors: latte macchiato, cappuccino and coffee toffee. The 100-g. offering (3.5-oz.) retails for $2.99 and is designed to tap into the coffee-shop generation’s love of coffee and chocolate.

April 2011 CANDY INDUSTRY 21

ISM in Review

Gubor, which last year engaged Germany’s leading chef, Harald Wohlfahrt, continued to parlay the culinary star’s artistry into confections. The key to Wohlfahrt’s involvement stems from taking traditional chocolate inclusions and tweaking them in such a manner that consumers are delighted with the presentation, such as Gubor’s three variations on the marzipan bar. Known gummi and jelly producer Mederer GmbH continues to push the envelope with new product introduction for his Trolli brand of confections. The launch of Soft Fruits features superfruit flavors with just a hint of yogurt. Continuing on that better-for-you confection theme, the company unveiled its vegetarian line of gummies, the Bizzl Mix, which doesn’t use any gelatin, be it beef, pork or fish-based. In keeping with the playful theme, the company also unveiled Gummi Bear Rings, a simply brilliant interactive gummi treat that’s sure to entertain kids (and adults) for hours on end. Lambertz, well known for its broad range of gingerbread specialties as well as an ever-expanding range of everyday biscuits, revealed a series of new products, some of which tap into the health trend that continues to influence confections as well as the ongoing trend of indulgence and whimsy. Take the company’s launch of Florentines, a takeoff on the ultra thin almond, chocolate biscuit. Cognizant of this society’s snack-and-go consciousness, a characteristic that embraces convenience, Lambertz debuted its line of Kaffee and Co. biscuits in Cappuccino, Latte Macchiate and Caramel and Hazelnut flavors.

22 CANDY INDUSTRY April 2011

The company’s Stix Mix variety pack, which combines five different cookie and chocolate “sticks” together, capitalizes on today’s consumer preference for choices. The 450-year-old company wasn’t going to miss out on the whimsy and playfulness trend as it debuted a Easter “sunny-side up” product, Oster-Eier, essentially a friedegg lookalike biscuit item that uses lemon and orange flavors creams. With regards to seasonal, French chocolate maker CE MOI’s Bloody Eye product will undoubtedly be the talk of Halloween trick-or-treaters. The 1.3oz. eye-shapped milk chocolate piece features a strawberry fondant that looks like a bloody eye (white and red in the center). Imagine the fun the youngsters will have offering that to their parents. The Brazilian contingent of confectionery companies, certainly a group known for their willingness to enjoy life, made their presence known at ISM. Coor-

dinated by ABICAB, Brazil’s confectionery association, and in partnership with ApexBrasil [the Brazilian Trade and Manufacturers Investment Promotion Agency], 28 Brazilian manufacturers showcased new product concepts at the fair. Harald, for example, unveiled a new line of cereal balls in three different varieties: milk and dark chocolate and au pareil mixes. Florestal, which celebrated its 75th anniversary this January, made caramel a bit more convenient for children with its Purlito Mikino, a chew caramel on a stick. Garoto developed a new format for its popular Serenata de Amor pralines in a heart-shaped format; Riclan looks to tap into consumers’ love of toffee with its MyToffee offering while Erlan tempted consumers with its chocolate-covered bited-sized toffees. Brazil, however, wasn’t the only country flexing its sweets muscle. Several Mexican confectionery companies also looked to impress b buyers with their array o candies. of

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We understand there are those who think of chocolate as nothing special. We just don’t understand why.

A

t Wilbur,™ we’re as focused on chocolate as you are on the chocolates. So we appreciate the dedication, commitment and hard work that’s behind every one of your signature confections, from butter creams and chocolatecoated brittle to rich fudge and decadent truffles. We know your business. Our people are

approachable, knowledgeable and accessible in offering superior customer and technical service. We u n d e r s t a n d t h a t i t t a k e s g r e a t chocolate to make great chocolates. And we realize that it takes much more. Give us a call at 877-835-4243 when you are ready for Wilbur to deliver.

A N A M E R I C A N O R I G I N A L™

www.wilburchocolate.com

Ingredient Technology

Dulces Finos y Artesanales Alsi-Aldresi displayed its commitment to traditional handmade candy by having an array of all natural and healthy sweets, all of which are made from different seeds and nuts, such as pecans, almonds, squash seeds, peanuts, and sesame seeds. In a way, the family-owned company’s product line typifies what consumers are looking for these days, a bit of “sweetness and light.”

24 CANDY INDUSTRY April 2011

The next ‘big thing’ Each year at the International “Consumers will still shell out Sweets & Biscuits Fair (ISM) in Comoney for a better-than-average logne, attendees arrive with great product,” he asserted. anticipation of the At the same time, next “big thing.” everyone will have This year, the to deal with being world´s largest cocoa cost-conscious, parand chocolate proticularly chocolate cessing supplier, Barry manufacturers. Given Callebaut, didn’t disthat the cocoa price appoint; it introduced has virtually doubled a “revolutionary” during the past few cocoa cultivation years, today´s existing method that results environment suggests in cocoa beans with one can expect more virtually zero defects of the same during or off-Áavors. the coming years. Dubbed Terra Hence value, as the Cacao, this new line second trend, will Through selective stock combines selective remain paramount. breeding and a new fermentation technique, stock breeding with Of course, ensurcocoa farmers can a new advanced ing a sustainable coproduce virtually defectmethod that involves coa supply, the third free cocoa beans. adding ferment trend, takes on even cultures to bring out the best greater importance. Sustainability characteristics of a bean during the not only ensures a renewable crop, fermentation process and drying. it brings consumers closer to the Five years in development, the source, helping them understand fermentation process takes advanwhere and how cocoa is harvesttage of inherent characteristics ed and processed. in the bean and maximizes their A better understanding about potential. As Hans Vriens, chief cocoa is critical to resisting innovation ofÀcer explained, regulatory pressure, which is sure to this breakthrough opens up increase during the coming years, enormous possibilities in not only Vries added. guaranteeing superior qual“According to the World Health ity and consistency, but also Organization, more people will in crafting speciÀc cultures to die from obesity in 2023 than from extract speciÀc parameters, be smoking,” he said. In the eyes of they less sugar, more Áavor and/ many, sweets contribute to the o less fat. or growth of obesity, although that This breakthrough takes on isn´t the case, Vries emphasized. e even more signiÀcance, Vriens As a result, consumers will look ssaid, because of the increased for more permissible chocolate, d demand for cocoa, which he eschocolate that contains less fat, ti timates will jump by one million tons less sugar, but also offers more Áaduring the next 10 years. He cited vanols, more probiotics, he said. several key trends that will have an The introduction of a new impact on this demannds fermentation technique, one that First, indulgence will continue virtually eliminates defects and to be a driving force for chocoallows bean proÀle manipulation, late consumption. addresses many of these trends.

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See us at Hall 5, Stand 5F04-16

Upakovka IN REVIEW

Momentum returns to Moscow Russia’s leading trade fair, which took place in Moscow’s Krasnaja Presnaj Expocenter Jan. 25 - 28, attracted some 20,000 trade visitors from Russia and the neighboring countries. More than 890 exhibitors from 18 countries, including a prominent showing by confectionery suppliers, presented their products and services. (01)

Eva Rugenstein, media director) welcomes attendees to this year’s Upakovka/Upak Italia fair.

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Our photographer snaps a photo of Heiko Kuhn, managing director for Klöckner Hänsel, in transit.

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Mikhail Shatov, project manager for the Upakovka/Upak Italia show, looks forward to a successful debut.

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Caotech’s Alex Repin (left) and Dimitry Yacobchuk (center) join managing director Jan Hammink for a pre-show huddle.

(05)

Filippo Catalano, area sales manager for Carle & Montanari, exudes conÀdence about the day to come.

(06)

NID’s representative, Luuk Hillhorst of Luuk Hillhorst Trading, Áashes a smile for Candy Industry.

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26 CANDY INDUSTRY April 2011

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06 www.candyindustry.com

Upakovka in Review

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Chocotech’s Lucian Demmel takes a time out for the camera.

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Jens Day, area sales manager for Hebenstreit, pauses for a short break.

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A quick snapshot of Buhler’s area sales managers at the show: Falk Wegener (left) and Maxim Ivanov.

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Bosch Group’s Aleksej Kokatov (left), technical director, and Kaspar Rentenaar, area sales manager, catch up on their reading of Candy Industry.

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Igor Karpov, technical director (left), Aleksey Enkov, project manager and Elena Mikhalylova, sales manager, make up the Haas Meincke team at the show.

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28 CANDY INDUSTRY April 2011

(16) Frederic Mahler, area sales and project manager for the Hosokaw Group, awaits visitors at the booth.

Vadim Cherkasov (far right) joins other members of the Schubert Group at the booth.

(17)

Petzholdt Heidenaurer Director Alex Kuhne anticipates another full day of customers at the show.

Winkler & Dunnerbier’s area sales manager, Jacob Unruh, listens intently to a customer’s question.

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Andreas Pecher, Sollich’s sales manager, explains technical details to a customer.

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The camera catches Rob Coppejans, a consultant for the Tanis Group, listening to a booth visitor.

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Markus Seuch (left), area sales manager for Loesch, takes notes about a customer’s speciÀcations.

Christine Lanz, who represents Dumoulin in Russia and other markets, joins Francois Adele, the company’s commercial director, at the booth. It’s all smiles for Achim Schaile from FB Lehmann of the Royal Duyvis Wiener Group.

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Sweet TALK

‘Can you pay me now?’ Paying with a smart phone — fad or future? By Crystal Lindell Associate Editor

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o, I can’t decide if I: A: cannot wait with all my heart for the day when I can swipe my cell phone across the counter and pay for my bag of M&M’s. or B: The idea of turning my Android into “a debit card that also makes phone calls” scares the bejebus out of me. For my Retail Profile this month, I interviewed Scott Hartman, president and ceo of Rutter’s Farm Stores. He has led efforts at Rutter’s to smoothly transition into new technologies, such as computer-run food ordering kiosks as well as the launch of a popular smart phone application (app). With an obvious ease for getting the latest pulse on the market, he has some bold predictions about paying with smart phones; namely, Hartman believes his stores will be offering the option within the next one to two years. “The phone is becoming the customer’s electronic wallet,” he explains. “The younger folks don’t think twice about using plastic, and the phone will be the better, more efficient way.” At 27 years old, I’d like to think of myself as “younger folk,” and I have to

say he’s at least right about my plastic addiction. Just yesterday, I literally charged $2.37 to my debit card for a two-liter of soda. As a footnote, the fact that the deli in my building only takes

when she runs to the store, will she be able to use it to buy a Snickers bar? For retailers though, there’s only one question, and it’s not whether or not they want to install a mobile payment system, but when exactly customers will expect that they already have. Starbucks is among those not waiting to find out. In January, the coffee chain began accepting mobile payments via the Starbucks Card Mobile iPhone and BlackBerry apps, the company website says. The app works by displaying a barcode that can be used just like a Starbucks Card to make a purchase. Customers can simply hold their phone up in front of a scanner on the counter top and swipe to make a purchase. From my view, it’s one small step for smart phones, one giant leap for payment methods. I honestly still cannot decide if I’m a huge fan of this particular giant leap or not, but I do predict that someday soon I will look back at this column and wonder what I was so worried about in the first place – the way I can only assume the generation in front of me wonders how anybody could have resisted the idea of cell phones in the first place.

“For retailers though, there’s only one question, and it’s not whether or not they want to install a mobile payment system, but when exactly customers will expect that they already have. ”

RC2 RETAIL CONFECTIONER April 2011

cash precludes me from buying anything from there. That doesn’t mean I’m necessarily ready to jump on the latest incarnation of “pay by phone” though. Questions that come to mind include, but are not limited to: If I lose my smart phone, will someone be able to wipe out my bank account? Will I accidentally be able to swipe my phone when I’m just trying to send a text and pay a the same time? How long will it take for stores to install the technology? Will people still ask for a pin? If I give my phone to my mom

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New Products

TLC Cherry Vanilla Cereal Bars Kashi Co., La Jolla, Calif. www.kashi.com (877) 747-2467

Angell Crisp Bar

Angell Organic Candy Bars Solana Beach, Calif. (858) 926-5499 www.angellbar.com

As a part of the first-ever line of Fair Trade Certified, organic candy bars, Angell Crisp features a smooth milk chocolate outside with a crunchy, crispy center. The gluten-free confection is one of three varieties in the line, which also includes Snow Angell, a white chocolate and coconut treat, and a vegan variety named Dark Angell that combines organic dark chocolate and almonds with a cocoa filling. All of the bars come with no artificial ingredients, no preservatives, are certified kosher and contain less than 200 calories. Ingredients (Angell Crisps): Milk chocolate*† (cane sugar *†, whole milk†, chocolate*†, cocoa butter*†, soy lecithin† (an emulsifier), natural vanilla†), tapioca syrup†, brown rice crisp† (brown rice flour†, honey†, calcium carbonate), vanilla extract*†, sea salt. *Fair Trade Certified TM. †All ingredients certified organic except for sea salt. S.R.P.: (1.3-oz bar) $2.49

The TLC Cereal Bar line welcomes a new flavor — cherry vanilla. Made with a filling of sweet red cherries, the bar includes rich Madagascan vanilla beans baked right into the dough. The latest breakfast item from Kashi features 11 grams of whole grains from their Seven Whole Grain blend and is made with all-natural ingredients and no high fructose corn syrup. Ingredients: Cherry vanilla filling (pear juice concentrate, evaporated cane juice, tapioca syrup, apple powder, cherry puree concentrate, vegetable glycerin, unmodified cornstarch, water, vegetable juice concentrate (red beet, carrot) for color, acacia gum, natural flavor, vanilla extract), Kashi Seven Whole Grains & Sesame flour (whole oats, hard red wheat, brown rice, rye, triticale, barley, buckwheat, sesame seeds), organic whole wheat flour, evaporated cane juice syrup, expeller-pressed canola oil, organic rolled oats, honey, acacia gum, tapioca syrup, vegetable glycerin, oat fiber, sodium acid pyrophosphate, baking soda, soy lecithin, vanilla beans, xanthan gum, vanilla extract, natural flavor. S.R.P.: (72-oz. box with 6 bars): $3.89

Sweet Tweets Topps, New York, N.Y. www.topps.com (212) 376-0300

Bazooka Candy Brands’, newest candy offering comes printed with a cute emoticon attached to a decorative paper board featuring fun, illustrative designs. The product adds a personal touch to the quick and convenient connections that are a part of today’s culture through the ability to provide a short, handwritten note with the perfect punctuation — a sweet treat. Great in a lunchbox, locker or overnight bag, Sweet Tweets will be available at retail and at www.sweettweetnotes.com this month. Ingredients: Dextrose, maltodextrin, malic acid, magnesium stearate, artificial flavors, purple carrot extract, red 40 lake, blue 1 lake, yellow 5 lake, titanium dioxide, carnauba wax, confectionery glaze. S.R.P.: $0.99 per pack. RC4 RETAIL CONFECTIONER April 2011

www.retailconfectioner.com

Tangy Zangy Twist Sticks

Editor’s Choice

Morris National Inc. www.tangyzangy.com (626) 385-2000

Tangy Zangy now come in multicolor sticks. Each sour wild fruitflavored stick is a swirl of blue, yellow, green and pink, and is coated with a dusting of sugar. They contain no artificial flavors and are sold in packages meant to be shared. Ingredients: Sugar, wheat flour, corn syrup, apple juice concentrated, hydrogenated palm kernel oil, sorbitol, malic acid, citric acid, sodium citrate, salt, artificial flavors, lechithin, artificial color (FD&C red no. 40, FD&C yellow no. 5, FD&C blue no. 1, titanium dioxide). S.R.P.: (5.6-oz. bag): $1.49

Eli’s Earth Bars

Sjaak’s Chocolates, Petaluma, Cailf. (707) 775-2434 www.sjaaks.com

Vegan is the theme of Sjaak Chocolate’s newest line of products. Eli’s Earth Bars are an organic and Fair Trade treat that will appear in three exciting flavors — Dream Big Bar, Celebrate Bar and the Treasure Bar. With cleverly chosen names, the options range from a caramel and peanut butter-topped confection to a coconut and almond offering. Additionally, Sjaaks will give back 5% of every sale to a non-profit charitable organization that benefits children. Ingredients (Treasure Bar): Dairy free milk chocolate (organic rice milk, organic evaporated cane juice, organic cocoa butter, organic cocoa paste, organic soy lecithin, organic vanilla ) organic evaporated cane juice, organic peanuts, organic rice syrup, organic palm oil, organic rice milk, sea salt, organic powdered sugar. S.R.P.: (1.2-oz. bar): $2.59

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Godiva Limited Edition Truffles Godiva, New York City www.godiva.com (800) 9-GODIVA (46-3482) Godiva has introduced three new truffle flavors inspired by spring — vanilla mousse, which is paired with dark chocolate; peach mousse, which is paired with milk chocolate; and lemon mouse, which is paired with white chocolate. The three new truffles can be found in the company’s Limited Edition Truffle Collection, which also includes roasted almond, milk chocolate and dark chocolate truffles. The slim box features a floral motif with lime green and teal accents and is wrapped with a small pink bow. Ingredients: Milk chocolate (sugar, cocoa butter, chocolate liquor, skim milk, milk, butteroil, soy lecithin (emulsifier), natural flavor), bittersweet chocolate (chocolate liquor (processed with alkali), sugar, cocoa butter, soy lecithin, (emulsifier), natural flavor milk), white chocolate (sugar, cocoa butter, milk, skim milk, soy lecithin (emulsifier) tocopherols (antioxidant), natural flavor), vegetable oil (palm kernel, palm oil, soy lecithin) almonds, sugar, butter, corn syrup, cocoa butter, milk, heavy cream, partially hydrogenated palm kernel oil, bittersweet chocolate) sugar, chocolate liquor, cocoa butter, dextrose, anhydrous, soya lecithin-an emulsifier), natural flavor, chocolate liquor, salt, soy lecithin (emulsifier), vanilla powder (sugar, vanilla seeds, natural flavor, corn starch), citric acid, invertase, lemon juice, malic acid, tocopherols (antioxidants), artificial color (fractionated coconut oil, FD&C yellow 5 aluminum lake, FD&C yellow 6 aluminum lake, titanium dioxide, soy lecithin). May contain tree nuts. S.R.P.: (Six-piece truffle box) $15 — Crystal Lindell

April 2011 RETAIL CONFECTIONER RC5

New Products

Coco Preggers Xan Confections, Irvine, Calif. www.xanconfections.com (877) 578-7267

Xan Confections has introduced a line of chocolates made specifically for pregnant women. Coco Preggers combines a healthy amount of folic acid to help prevent birth defects with DHA, and omega-3 fatty acid important to brain development. The fortified bar contains 50 milligrams of DHA and 200 micrograms of folic acid, 50% of the daily allowance for both nutrients suggested by the Food and Drug Administration (FDA). Ingredients: Dark chocolate (chocolate liquor, evaporate cane syrup, cocoa butter, soy lecithin (an emulsifier), ground vanilla), tapioxa syrup, sugar, cream, glycerin, sorbitol, Life’s DHA and Folisolv, salt, rice bran extract. Allergen Warning: Contains milk. Manufactured on shared equipment with peanut and tree nut containing products. S.R.P.: (7-pc . box): $11.99

Chocolate-Raspberry WineTime Bars RezVez, Inc., Rancho Santa Fe, Calif. www.winetimebar.com (888) 756-2184

New to the Resveratrol WineTime brand of nutrition bars is a Chocolate-Raspberry variety. Made with highgrade resveratrol and premium French red grapes, this option provides 8 grams of fiber in just 190 calories per bar. It also includes seven superfruits, including noni, pomegranate, goji, acai, mangosteen and blueberry. Ingredients: Dates, chocolate coating (sugar, chocolate liquor, cocoa butter, soy lecithin, vanilla extract), almonds, semi-sweet chocolate chips (sugar, chocolate liquor, cocoa butter, soy lecithin, vanilla extract), brown rice syrup, chicory root extract, ground almonds, chicory fiber, cocoa powder, apple fiber, cocoa soy crisps (soy protein isolate, cocoa, tapioca starch), natural flavors, raspberryflavored fruit pieces (sugar, cranberries, citric acid, natural flavors, elderberry juice concentrate, sunflower oil), raspberries, BioVin advanced French red wine extract, (contains 5% red wine trans-Resveratrol and 30-35% red wine polyphenols), pomegranate fruit powder, goji powder, acai powder, noni powder, blueberry powder, mangosteen powder, resVida trans-Resveratrol. S.R.P.: (1.76-oz. bar) $2.99

Pop Rocks Grape Pop Rock Inc., Atlanta, Ga. http://www.pop-rocks.com/ (866) 570-8800

It is again possible to experience the sensation of grapes popping your mouth. Atlanta, Ga.-based Pop Rocks is re-releasing its original retro grape flavor in honor of the company’s 35th anniversary. The makers found the original recipe in the company archives and will begin shipping to retailers this month. Ingredients: Sugar, lactose (milk sugar), corn syrup, artificial flavor, artificial colors (red#40, blue#1) processed with carbon dioxide. S.R.P.: $.69

For more new products, visit www.retailconfectioner.com. There, you also can subscribe to our free e-newsletter, sweet & healthy, which features a “sweet of the week.” RC6 RETAIL CONFECTIONER April 2011

Industry TRENDS

Not your grandma’s hard candies New Áavors, niche markets drive innovations. By Crystal Lindell

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pple pie a la mode, cotton candy and cinnamon buns – sounds like a concession stand, but in fact it can all be found in a hard candy jar. Flavors and ingredients are evolving and manufacturers are looking to niche markets as they try to keep up with the future of the candy dish. Larry Johns, owner and president of Medina, Ohio-based McJak Candy Co., which manufactures Original Gourmet candies, says the hard candy market has remained fairly buoyant. “I know chocolate has remained strong, but with the current cocoa prices, I think hard candy still has a good niche,”

he explains. “It’s a little bit less expensive.” In fact, data from SymphonyIRI Group, a Chicago-based market research firm, states that unit sales of hard sugar candies have increased 4.49% since a year ago, and manufacturers sold $320.7 million worth of these very traditional treats. Johns said his company has started mixing flavors, such as apple and cinnamon, to create candies that taste more complex, like a blue-and-pinkstriped cotton candy lollipop. They also have started adding cream fillings to create

flavors like apple pie a la mode, he added. It’s a trend they company started within the last year. “We kind of took our first guesses as to popularity,” Johns explains. ‘There are certain ones, like cotton candy, that have pink and blue stripes that seem eye catching... that appeal to both adults and kids.” Meanwhile, Charms Blow Pops now come in flavors like Kiwi Berry Blast and

Top 5 Hard Sugar Candy/Package & Roll Candy Brands (Latest 52 weeks ending Feb.20, 2011) Rank

Brands

Dollar Sales (in millions)

1. Jolly Rancher 2. Werthers Original 3. Lifesavers 4. Tootsie Roll Pops 5. Charms Blow Pop

58.2 39.8 32.5 27.7 25.6

Total, including brands not shown

$320.7

Dollar Sales % Chg. Vs. Yr. Ago

Unit Sales (in millions)

Unit Sales % Chg Year Ago

(4.69) 8.93 1.37 0 (9.6)

18.15 12.4 10.13 8.63 7.99

(1.23) .81 (.04) (.15) (1.01)

100.00

-

1.79

Total US FDMxC (Supermarkets, Drugstores, Gas/C-Stores and Mass Market retailers excluding Wal-Mart). Source: Symphony/IRI Group, a Chicago-based market research Àrm.

RC8 RETAIL CONFECTIONER April 2011

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Black Ice. Life Savers, owned by Wrigley, also introduced more complex flavor combinations in 2009 with a Hawaiian Fruits hard candy that included Mango Melon and Tropical Punch. “Consumers’ pallets are constantly evolving based on culinary trends,” says Jennifer Jackson-Luth, Wrigley senior manager for marketing communications. Johns explains that the possibilities of so many flavor combinations are hard candy’s life blood. “You can do so many things,” Johns says. “You can buy ones that are more tart and fruity flavors. You can get the cream ones, even cinnamon bun... You can almost find a flavor that anyone would like.” But all those flavors are useless without the right colors – which not only help market the products, but also convince people to believe what they’re eating. Johns says he learned that lesson

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first-hand when he once was asked to make clear lollipops touting a company logo for an event, and he flavored them with strawberry. “They swore up and down they had no flavor. They kept insisting,” he says. “It’s hard to divorce color from flavor in your mind.” It’s that flavor-color link that has made it hard for companies to move into all natural colors, which are an emerging trend in Europe after artificial colors were linked to hyperactivity there. Johns says that and natural flavors are evolving. “Natural flavors are a little easier to accomplish,” he says. “The harder problem is coming with a pallet of natural colors that’s as appealing as artificial colors.” Also, although better-for-you confections, such as candies with vitamins in them, are a growing trend in the overall industry, Johns says the idea hasn’t taken off with hard candies yet. “There’s some opportunity there provided they don’t change the flavor of the lollipop,” he says. “Hard candy is something, where when you start eating it, yo you’re going to be eating it for a half

hour, 45 minutes. [You don’t want] any kind of after taste.” That doesn’t mean healthy isn’t on the hard candy menu though. Health food sectors and niche markets are driving a lot of innovation right now, Johns said. However, it can be hard for companies to create products that fit all the various categories. “Some of the things you develop for one, don’t always translate to the other,” he explains, pointing to the example of using carmine for red color. It’s natural, which appeases those avoiding artificial colors. However, it’s also made from insects, which is not kosher and not accepted at some health food stores. “It can be a challenge. You want to use as few combinations and please as many markets as possible,” Johns says, adding that ideally one line extension could be sold at all the health food stores. Another challenge for manufactures is finding the ingredients in the first place. Johns points to the difficulty in finding organic corn syrup in large quantities as one example. “But that’s also where the opportunities are,” he says. “Because if you can overcome some of those things, you’ll be able to find niches others haven’t yet.” As that happens, the candy dish will no doubt continue to evolve into something your grandma would probably have a hard time recognizing. April 2011 RETAIL CONFECTIONER RC9

Retailer ProÀle

Rutter’s Farm Stores combine the latest technology, like the Áat screen TVs shown top left, with old-fashioned values to thrive.

Customers don’t want

to go anywhere else Using a blend of an old-fashioned family atmosphere and the latest technology, Rutter’s Far m Stores lure customers. By Crystal Lindell

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utter’s Farm Stores may have started as an effort to sell quarts of milk from a horsedrawn wagon in 1921, but with smart phone apps, computer-run ordering kiosks and flat-screen TVs in their stores, the convenience store chain is anything but old-fashioned. The company’s stores, most of which are also gas stations, are scattered throughout Pennsylvania and have become a model for mixing traditional family values with the latest and greatest technology trends.

RC10 RETAIL CONFECTIONER April 2011

The average store is just 11 years old and about 5,300 sq. ft. — or about 50% more than the size of an average convenience store size of about 3,500 sq. ft. “We’re a grocery store, and we’re a fast-food restaurant, and we’re a gas station, and we’re a little casino that sells lottery, and we’re a little bank that sells money orders,” explains Scott Hartman, president and CEO. “We’re so many different things all under one roof.” One of the problems gas stations have had to face, though is the increase in customers paying at the pump, which

decreases the need to go inside and peruse all those features. Robert Perks, vice president of marketing, says the company uses signage at the pumps to lure them inside, and also feature free ATMs, and promotional gas offers as well as expanded food offerings.

Selling candy conveniently Once they get the customer through the door, not only are they greeted with the latest gadgets, they’re also faced with a 12-foot candy aisle. And, www.retailconfectioner.com

At a Glance Rutter’s Farm Stores Headquarters: York, Pa. Founders: George and Bud Rutter, who sold farm products in 1921. Parent Company: Rutter’s Holdings, Inc. Current leadership: Scott Hartman serves as Rutter’s Farm Stores’ president and ceo Number of C-stores: 55 Communities served: York, Lancaster, Adams, Cumberland, Dauphin and Franklin counties in central Pennsylvania Store Size: 5,300 sq. ft. (avg. size) Tag line: Why Go Anywhere Else? Website: www.rutters.com

depending on the time of year, there’s likely a seasonal display. “Our number one [seasonal] seller is probably Reese’s Peanut Butter eggs, whether it’s Halloween or Christmas time,” Perkins says. Rutter’s also has done much over the past year to expand the placement and

Rutter’s computer ordering kiosks increase ordering accuracy, and even offer suggestions to customers. All photos provided by Rutter’s.

footprint at the transaction counter. There, they focus on three items — energy shots, candy and lighters. “We are very traditional,” Perkins says. “[But] we’re always looking for new items, and king-size and theater boxes have been a big area for us most recently.” Hartman said there are obvious benefits to selling a king-size candy bar versus a regular-sized bar. “Because we’re going to make make more gross profit dollars,” he explains. “To retailers, it’s not percentages that’s important, it’s dollars or pennies. [King size] will make more pennies than selling a regular-size bar.” He admits it’s a challenge to sell the king-size candy, though. One way they try to entice customers are with “combo offers.” “When somebody is buying a candy bar, what else goes with it?” Hartman says. “You

Employees work at a food service area at a Rutter’s Farm Story. Right, Scott E. Hartman, president and ceo; and Robert Perkins, V.P. of marketing, help the company continue to evolve.

www.retailconfectioner.com

can better design promotional activity and marketing and you make them offers.”

Applying the Apps With the Rutter’s smart phones applications (apps), customers can get those promotional offers right on their phones. Hartman says a company from Canada pitched the idea for the app a little more than two years ago, and he immediately saw the potential. “I said, ‘Oh, wow, you guys are good,” he recalls. ‘So we just signed on with them.” Now, customers can use the app to find a store and get directions; check real-time gas prices; scan store features such as fuel types and WiFi; and receive promotional alerts. Hartman won’t disclose exactly how many customers have signed up for the app, but he did say there are “thousands and thousands of users.” “It’s amazing the number of people who are signing up everyday on those,” Hart-

April 2011 RETAIL CONFECTIONER RC11

Retailer ProÀle

man says. “We get a lot e-mails from people saying, ‘Your app is the coolest I’ve got.’” The concept goes beyond offering customers convenience though. “The point is it’s giving them opportunities to be reminded about our brand, be reminded about our offers,” Hartman explains. He predicts that the next frontier is allowing customers to pay with their phones. However, the technology is hard to navigate for a gas station because gas is flammable. That means the company can’t install anything near the pumps that could agitate that. “I do believe it’s coming... Starbucks is doing it now,” he says. “The difference is that so many of our transactions are at a gasoline pump and trying to get consumers to use their phone at gasoline pump has a lot of industry hurdles, [but] we will be using it inside, I would say in the next year or two.” It’s a natural evolution, he explains. “The phone is becoming the customer’s electronic wallet,” Hartman says. “The younger folks don’t think twice about using plastic, and the phone will be the better, more efficient way.”

young and old have embraced the ordering kiosks, especially as other industries incorporate technology, such as airports that use computer check-in systems. Rutter’s has even received technology awards and has long been involved in industry technology, but Hartman’s quick to point out that it’s not the end all. “Just getting the latest gadget isn’t the way to sell stuff necessarily,” he explains. “I’m a third-generation of a family busi-

ness, so I was just sort of trained that you have to keep changing and staying current with your customers.”

‘Greener’ stores

One way Rutter’s has already introduced efficiency at the counter is with it’s computer-ordering kiosks, which allow customers to place a food order without ever talking to a human. Hartman says one of the main advantages is the elimination of human error. “And, they provide a lot of options that are hard to do with a human involved, in terms of combinations,” he explains. “It’s very easy to customize your order. To say, ‘I don’t want ketchup, and I don’t want pickle... the computer’s quite friendly. It’ll even suggest things to you.” With the rate the technology has evolved, Hartman says both

Another of those changes that Hartman has pushed his stores on is being “green.” Rutter’s was the first retailer to do voluntary recycling in their stores. Now the company boasts of white roofs on their stores (cuts down on cooling), and they’ve installed a computer system to monitor energy use. Next on Rutter’s to-do list is installing sky lights, which bring in natural light and allows the lights in the store to be shut off. “We learned a lot about going green from trips overseas. I take my management team... to Ireland and Portugal,” Hartman explains. “As business people we just have to embrace the idea that we can take care of the environment better than we have in the past.” He adds that a number of the green initiatives also have the upside of having a return on investment and also appeal to customers. “I can tell you we got a lot of positive feedback,” Hartman explains. “Particular younger people.” Hartman says he tries his best to keep Rutter’s at the forefront, but he admits it’s not right for everyone. “If you don’t have a commitment from the top, absolutely don’t do it, because a lot of the stuff that we’re doing... just needs a commitment and a strategy,” he says. “It’s a cultural thing within our company. Do I like gadgets? Sure. I have more laptops than anybody [but] it’s more than that, it’s how you interact with the customers.” If he can keep that balanced attitude, it’s likely the customers will have no reply when faced with the Rutter’s tag line, “Why Rutter’s Farm Stores feature 12-foot candy aisles. go anywhere else?”

RC12 RETAIL CONFECTIONER April 2011

www.retailconfectioner.com

Beyond the phone

in Review Safe seasonal selections Retailers can look to line extensions, proven products for holidays. By Crystal Lindell

M

any of the new products debuted in February at the Winter Confectionery Efficient Program Planning Session (ECRM) in Atlanta looked to capitalize on proven new product launch strategies, be it brand leveraging, reinvigorated packaging or twists on successful flavors. Moreover, buyers on the other side of the table appear to favor the idea of “minimizing risk” in a recovering economy. The top three items scanned by buyers, as tracked by ECRM, were line extensions, including: Life Savers Candy Canes at number one, followed by Mini Airheads Holiday Band by Perfetti Van Melle and Ring Pop Christmas 4-count bag. Brown and Haley, the makers of ROCA toffee, were among the companies that simply debuted a new package at the event. ROCA now comes in a range of 5-oz. stand up gable boxes, as opposed to the bag they were sold in before. “When you’re a premium brand, you’ve got to look premium,” says Steve Jafee, Midwest region sales manager for the company. Other companies that debuted new packages included 1 Original Gourmet Food, which has new Christmas tins for it’s Passion Cookies; and KLG Candies, which featured a new box package design for it’s Chapel Hill Toffee, which until 2 now had only been sold in bags.

The top eight items scanned by buyers at the event include: Life Savers Candy Canes 24-ct.

Mini Airheads Holiday Band 12-ct.

Wrigley Sales Co. Perfetti Van Melle USA Inc. Bazooka Candy Brands - a Division of The Topps Co.

3

Ring Pop Christmas

4

Santa Pants with Yogurt Christmas Pretzels 14-oz.

5

Life Savers Spooky Shapes Theater Box

Wrigley Sales Co.

6

Twist and Pour 1-oz.

Wrigley Sales Co.

7 8

14 RETAIL CONFECTIONER April 2011

“We are introducing this new packaging in late summer of 2011 to help protect the toffee and increase shelf life,” explains Mark Graves, with Chapel Hill Toffee. “The graphics on the front allow buyers to see the toffee while the new rigid box allows retailers to display Chapel Hill Toffee in a variety of ways.” It’s a strategy that undoubtedly will help a proven product get a fresh look.

4-ct.

Toblerone Tobelle Milk Chocolate 5.64-oz.

Mini Airheads Holiday Sticker Fun Book

Tropical Nut & Fruit

Kraft Foods North America, Inc. Perfetti Van Melle USA Inc.

www.retailconfectioner.com

BITS

&

PIECES

Top 5 Specialty Nut / Coconut Candies (Latest 52 weeks) Brands

Dollar Sales Dollar Sales (in millions) % Chg. Vs. Yr. Ago

1. Pay Day $76.03 2. Pearsons Salted Rut Roll $15.32 3. Private Label $12.63 4. Lance $7.91 5. Atkinson’s Chick O Stick $6.92 Total, including brands not shown: $198.65

Unit Sales (in millions)

2.36 8.32 15.64 6.52 (12.12)

Dollar Share of Type Chg. Vs. Yr Ago .32 .49 .78 .19 (.54)

1.5

-

172.9

67.27 18.96 5.04 9.98 8.49

Total US FDMxC (Supermarkets, Drugstores, Gas/C-Stores and Mass Market retailers excluding Wal-Mart). In addition to excluding Wal-Mart, the FDMxC data also does not include sales at Club Stores or Liquor Stores. Source: SymphonyIRI Group, a Chicago-based market research Àrm.

The chocolate look

Luxurious aesthetics and decadent, modern interiors highlight the theme of Godiva’s newly designed stores. The well-known international chocolatier partnered with design Àrm d-ash design to create an innovated chocolate shopping experience. Starting Àrst with their store in Amerkez, Turkey, which opened in September 2010, Godiva plans to unveil more of their latest concept locations in Xintiandi, Shanghai, and Hong Kong, China. Stateside shops will open Àrst in Atlanta in spring 2011 and then in New York City during summer 2011. D-ash design, led by David Ashen, has partnered with Linda Lombardi, Godiva’s v.p. of global store design and visual merchandising, to craft a glamorous environment for patrons looking to shop for chocolate. Pulling from the storied confectionery company’s 85-year Belgian heritage, each store features its own personality. Amenities can include a Godiva cafe, an interactive 360-degree “Chocolate Island” and a two-story vertical display of chocolate products. “We really pushed the envelope in the store,” says Ashen, citing their removal of the chocolate display case as one of the most innovative new concepts. By replacing the traditional candy counter with lots of little display areas built into the walls around the store, Ashen explains that each product is able to develop its own story. “The idea was to create an immersive environment,” says Ashen, who also points out that removing a traditional display case brings the sales person from behind the counter and “gets them side by side with the customer.”

Caught on the Web Find the latest in new products, promotions, commercials, games and other interactive resources on these clever URLs, and check out the next issue of Retail Confectioner for more websites worth visiting.

www.tangyzangy.com

RC15 RETAIL CONFECTIONER April 2011

www.angellbar.com

Ecoist easy candy chair no ‘snowjob’ The company known for making handbags out of recycled soda can tabs and candy wrappers has used their innovative design techniques on a piece of furniture. Ecoist teamed up with designer Emiliano Godoy to create the “Snowjob.” Featuring a skeleton made from FSC-certiÀed wood (a wood certiÀed by the standards of the Forest Stewardship Council) with a vegetable-based, biodegradable Ànish, the chair also incorporates some confectionery elements. Post-industrial waste from the candy wrapping industry makes up a shiny, silver covering. Godoy cut the recycled confectionery packaging into small sections and then folded them into rectangular pieces to create the vibrant wrap. The environmentally friendly chair also was only made using simple woodworking tools and a box cutter, reducing the cost and impact of other tools.

www.retailconfectioner.com

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13th Annual European Suppliers Roundtable — London

RALLYING ‘round Positive signs of an economic rebound have fueled optimism amongst suppliers, although concerns linger regarding commodities, investment recovery and customer service demands. CANDY INDUSTRY: With the Great Recession of 2009 in the backview mirror, early prognostications suggest that 2011 will display stronger signs of recovery than last year. Do you see such signs of recovery among your customers? If so, where do you see growth coming from? JAN HAMMINK: What we see is that, starting actually with November last year, our intake increased very rapidly. And when we now look at — it’s only February — but when we look at our orders, there is a huge difference from 2010. It’s very broad-based. I don’t know whether it is sustainable, but at the moment it is really good.

CANDY INDUSTRY: Jan, have you implemented any cost cutting measures during the recession? JAN HAMMINK: Yes, we did, but it didn’t affect our production, so we can easily ramp up with the same manpower. MADS HEDSTROM: We also see a difference, we’re seeing more and more orders. RALF SCHÄFFER: It’s also the same situation with us. The orders are much 30 CANDY INDUSTRY April 2011

higher than last year, even in 2009. Cost cutting at Sollich has always been a focus, but we did not reduce our staff or reduce any capability to build our processing machines. The problem we are facing at the moment is that companies supplying specific components are not delivering the parts we are looking for. I think we are all facing the same problem on the machine building side. So the time we normally calculated for ordering and receiving has tremendously increased. It’s forced us to adjust our planning and scheduling. STEVEN STAAL: Do you know why this situation has arisen? Is it because they brought their stocks down and couldn’t recover quickly enough? RALF SCHÄFFER: I think they reduced costs, they reduced production capacity. They reduced the stock. And I think they were forced to look short term, to save money and reduce costs, much more than we were. THOMAS MATOSEK: Yes, we see shortfalls

across the board — sheet metal processing, welding, whatever.

CANDY INDUSTRY: It certainly complicates long-term planning, which I suspect also affects ingredient suppliers. STEFFEN STORGAARD: For us in the fats and oils industry, it’s still very early to predict how 2011 will be. As you all know, commodity prices remain at a very high level, so customers are very reluctant to cover long term. That’s the challenge at the moment. So they are covering for the next month. JAN HAMMINK: Just-in-time deliveries. STEFFEN STORGAARD: So that’s why we are waiting for them. Yes, orders are coming in, they are okay, but we don’t know how it will be in six months. And another issue is that there are quite large regional differences in terms of the recovery, and what we see from a global perspective. We expect quite good growth in, for instance, Latin America. The Brazilian market is really good right now in our industry. We also expect a lot coming from Asia, China for instance. We are opening a new sales www.candyindustry.com

13th Annual European Suppliers Roundtable — London

d’ the Recovery Participants at Candy Industry’s 13th annual European Suppliers Roundtable (Front row, l. to r.): Jordi Torres, Loveras; Oliver Nohynek, Driam; Mads Hedstrom, Aasted; Bernd Roser, Habasit; Jan Hammink, Caotech; Ralf Schäffer, Sollich; Martin McDermott, Chocotech; Matt Cottam, BCH; and Graham Jackson, NID. (Back row, l. to r.) Andreas Leitze, Bosch Group; Ralph Jansen, Bosch Group, Thomas Hubl, Probat; Rene de Vries, Royal Duyvis Wiener; Massimo Pietra, Carle & Montanari; Steffen Storgaard, AarhausKarlshamns; Mark Beaver, Baker Perkins; Steve Staal; Tanis Food Tec; Thomas Matosek, Hosokowa Bepex; Andy Fleming, Barry Callebaut; Eduard Sala, Cafosa.

office in China next month. And while we do a great deal of business in Europe — in terms of growth — it’s a saturated market, a lot of competition. So it’s not as big a growth area as in the new markets, in the emerging markets. EDUARD SALA: As a chewing gum supplier, we hold views similar to Steffen’s comment. Latin America and Asia are the two regions that are providing by far the largest growth at present. On the contrary, other areas like Europe are much flatter in terms of activity, at least for our customers. There’s no doubt that raw materials prices are rising, which is reinforcing the perception from customers that it’s important to act quickly, buy your raw materials now, because most probably in the next coming months it will increase even more. Moreover, doubts remain whether these cost increases will end soon, so companies are even maximizing their purchases to avoid future price increases. ANDREW FLEMING: I would like to add to my ingredients colleagues’ comments www.candyindustry.com

with a chocolate and cocoa perspective. In looking at 2011, we’re sort of strapping ourselves in, because it’s going to be a pretty turbulent year. If you take into consideration the current crisis which is evolving in the Ivory Coast, I mean that’s a huge concern for us, not to mention other commodity pressures. Steffen has commented on oils and fats, which clearly have an influence not just on the CBEs [Cocoa Butter Equivalents] that we use, but on the cocoa butter itself. And then you also take into account the volatility for sugar and dairy, and this degree of volatility is something that the chocolate industry has not experienced before. I mean, buyers are used to looking at volatility in the cocoa market, and are experiencing that. But when you add that to volatility of the cocoa ratios on the processing side as well as sugar and dairy, then the price swings you can see are massive, and it becomes very difficult for our customers, particularly in the UK where private label dominates. A lot of the business goes into private label,

and then they find it extremely difficult to have those conversations with the retailers. As a consequence business changes hands a lot. The problem that people can get themselves into is, if they have a good position on raw materials, they have sugar covered, they have dairy covered, they have cocoa covered, they sometimes use that as a competitive advantage. That quickly changes, however, once the terms of the contract expire. So we see a lot of switching of business backwards and forwards. ANDREAS LEITZE: For us in the sugar confectionery processing sector, 2010 was a very strong year. Now we have the feeling that the customers are more open to new concepts, new ideas, and that they’re trying to get new products into the market. Consequently, customers are looking to conduct trials for new recipes, test new types of product. RENE DE VRIES: At last year’s roundtable, we were talking about a negative curve. But just after February, in March, the recovery started with some fairly large April 2011 CANDY INDUSTRY 31

13th Annual European Suppliers Roundtable — London

orders. Since then it didn’t stop. As a result, we were actually slowing production a bit. Since April last year, we began running two shifts, then 24 hours a day starting in February. At the moment we are already full with orders until the second half of 2012. So from a little work, it went sky high. It was quite a big switch. And again, it’s a problem Rene de Vries of getting our suppliers to Royal Duyvis Wiener provide us with components. As you can imagine it really complicates production planning. BERND ROSER: Well, we have seen a strong recovery last year as well, due to the wide customer base and multiple industries we supply. Though we had to go through stock reductions, we managed this without extending lead times. So we have capacity, we can supply, and we see a lot of demand. Globally, the USA and Europe are good. Latin America and Asia, as everybody has said, are also growing quickly. THOMAS MATOSEK: Actually I can only confirm what has been said already. We saw a big increase in 2010 compared to 2009, but we increased the same figures as we were used to before the crisis. We did not reduce our workforce, we reduced the number of temporaries, so we kept the same capacities, and we’re facing the same problems as, I think, our friends here in the industry, with sub-suppliers and long lead times. I think you will see some more growth in 2011, but I’m not sure whether it’s going to be at the same rate as 2010. MATTHEW COTTAM: I still see a lack of credit in the marketplace as having a dampening influence on 2011, which would prevent the recovery progressing as fast as we would like it to progress. The knock-on effect of this, I believe, is we’re seeing more sales with a private owner than we are with the big corporates. And this is maybe more a British phenomenon. Still the European economies that have struggled recently — notably Spain, Ireland and I’m going to say Britain — it’s been because of a lack of credit.

CANDY INDUSTRY: So even big companies are finding it difficult? MATTHEW COTTAM: Well, I’m just reflecting on the past 12 months really, 32 CANDY INDUSTRY April 2011

and I’d say generally there’s a lack of credit out there. There are plenty of good project plans, but the financial release doesn’t happen to enable the projects to go ahead. MARK BEAVER: I’d agree with Matt there. I think we’re seeing private owners, who are very cash rich and able to move very quickly when they see an opportunity, whereas the large multinationals are maybe a bit more constrained, and need to preserve their cash for other areas of the business, who can’t move as quickly.

in. So when you refer back to 2008, there wasn’t that pressure, you know. You were getting your pricing. Now it’s different. Now it’s a real battle.

CANDY INDUSTRY: Especially those who’ve made major acquisitions recently, right? MARK BEAVER: Absolutely right, yes. STEVEN STAAL: I think another aspect is

STEVEN STAAL: Well, you do everything

that over the last 12 months, we discussed that last year also, conditions have changed. You see more and more people asking for bank guarantees. So like we concluded last year already, that it is all about cash, not only for the customers but also for the company producing it. I think that still stands. ANDREW FLEMING: I think that also fits with the ingredient sector as well, because more and more customers are having to make sure that they have the cash available to finance their working capital, because, of course, if their raw materials double in price, the amount that they have to reserve for working capital goes up, so the cost of running the business, particularly if you’re in commodities, is very high.

CANDY INDUSTRY: Eventually that’s going to translate into a price increase, I would assume? ANDREW FLEMING: It will, inevitably. But just building on Matt’s comment, I think what it does do is that probably, people are a little bit more careful about how they manage their cash position, and therefore probably a little bit more reticent to make big investments. STEVEN STAAL: I think the world has changed structurally, and it will take a long time to get back to a level like that, if we ever get there — because I have seen a significant transfer from a seller’s market to a buyer’s market, and I would say that buyers in the industry, depending on what type of company it is, realize that they have more power than they thought. MARTIN MCDERMOTT: The pressure now is on the price. It’s the work that’s been put

CANDY INDUSTRY: That means internally you Martin McDermott Chocotech have to kind of figure out a way to cut costs. THOMAS MATOSEK: Each and every project. to try to move away from the price, which is sometimes possible and sometimes not, and you have to be clever in the sense, well, what have you supplied and with whom have you compared? Because I would say that in 2008 two quotes were enough for a company to do something. Now they ask for five quotes, and they deal more seriously with it. JORDI TORRES: Well, basically we have started the year in a very promising way, but our concern is how the turmoil in economies such as Egypt, Libya, Tunisia will affect the global economy. Some projects in that region now are, let’s say, a little bit ‘Stand back.’ So Jordi Torres Lloveras our concern is what will happen with this and how this will affect the whole economy. As you all know, one can’t escape globalization. If something happens there, you’ll feel it here.

CANDY INDUSTRY: Right. Anyone else dealing with countries such as Libya, Egypt, Tunisia? MARK BEAVER: I think the ramifications are global. If the oil price keeps going up, then that’s going to limit the spending power of consumers in a lot of the developing markets, which consequently is going to affect the consumption of the end products that a lot of our technologies produce. So I think we shouldn’t delude ourselves since there’s a long way to go with all this. There could be a lot of volatility during the course of the year.

CANDY INDUSTRY: With interpack 2011 just around the corner, I’m interested in finding out what is the main thrust of the new innovations and improvements your www.candyindustry.com

13th Annual European Suppliers Roundtable — London

companies have prepared for the show this year. THOMAS MATOSEK: I think the biggest trend we saw at interpack 2008 was the demand for easy-to-clean or hygienic machines, and I think this trend will go on and we’ll see the same topic at interpack 2011. What we’ve done, we basically started re engineering our equipment about five, six years ago and we’ve been completing our range of hygienic equipment. The second big topic we see coming up is energy efficiency, so while in the past I think all of us produced equipment and lines for maximum capacity with maximum cooling capacity and with maximum utility consumption, we now have to downsize. We have to make it fit the application in order not to waste any energy and resources. The third trend we’re seeing is the trend towards smaller production lines, and local production in smaller markets, in order to avoid logistics costs or these kind of things.

CANDY INDUSTRY: And what are your expectations for interpack this year? MASSIMO PIETRA: I would say as great as usual, and we’re expecting large crowds of customers, all eager to find new solutions, new equipment and a willingness to invest.

MARK BEAVER:

Massimo Pietra Carle & Montanari

I think the area of sanitation is interesting. We’re starting to see in the United States more direction toward that. The Grocery Manufacturers Association has come out with a set of rules for hygiene control. MATTHEW COTTAM: The 12 principles. MARK BEAVER: Yes, principles, which people are starting to look at. Another side of our business is biscuit technology, and in particular in that arena, there’s a big push for equipment design to follow those principles. People are very interested to see that. We’re starting to see that interest spreading to other areas as well, on the confectionery side and elsewhere. So I think there’s a definite move in that direction.

CANDY INDUSTRY: I know that your company’s been involved in new product development with ingredient companies, etc. Is that focus still ongoing, and are you being 34 CANDY INDUSTRY April 2011

asked by your customers to help out more in new product launches? MARK BEAVER: We’ve always had a product development lead over many years. It’s a mixed Dee Wakefield bag. You get the people Candy Industry who are brave enough to launch a new product. I mean that’s the real issue. Developing a product’s part of it, and obviously then we know the issues in terms of marketing and market acceptance of new products. That’s always a high risk strategy. I have to say, over the last 12 months we’ve seen more people wanting to spend time with us in our innovations center, looking to develop new innovative products, which is always a good thing to see. People, particularly the larger organizations, are looking for that differentiation in the marketplace.

CANDY INDUSTRY: And your expectations for interpack? MARK BEAVER: Are good. Yes, we’re very confident.

RALF SCHÄFFER: As you know, I’m also part of the board at interpack, and therefore I can tell you that interpack is, of course, fully booked. So I also expect a very good interpack.

Ralf Schäffer Sollich

CANDY INDUSTRY: What about trends in terms of what you’ll be showing at the show? RALF SCHÄFFER: I think what Thomas said is, of course, the trend: Everybody is talking about hygiene, about energy, about building the machine in a way that the operator can do the maintenance work. I think we, as a machine supplier, have to be a little bit careful that we are not pushed too far. When you talk to people who are responsible for the hygienic execution of the machines, they lose the view of the production goal. You can have a very hygienic machine, but it can’t produce anything. If there are some special situations, the machine will stop. That is the message that we have to tell our customers, that energy saving, hygiene, everything is very important, but not the only thing. THOMAS MATOSEK: I can agree with Ralf. In some cases, hygienic machine de-

sign has become more important than the functionality. Yes, but still, I mean, when our customers’ team comes to a decision, hygiene is what counts the most. MADS HEDSTROM: It’s the same with energy, I mean, we can say, ‘Yes, yes, you will.’ You have to. We have also just brought out a new tempering machine, where you save 5% – 50% on energy. You know, you have to do these things. THOMAS HUBL: I agree that it’s the aspect of energy which is becoming more and more important, especially when you have to build roasters, and you need Thomas Hubl to have a lot of energy Probat for the roaster. So at the interpack, Probat will display a roaster that has heat recovery, to give our customers a chance to save some money. And we’ll have also a new system to capture and clean exhaust fumes, which we have now installed in several facilities throughtout Europe. Our customers have to spend a lot of money to ensure environmental compliance, which involves using catalytic systems or afterburners. ANDREAS LEITZE: These trends, such as easy to clean, energy efficiency, which have been mentioned here by Thomas and Ralf, are also present on the packaging side. That means tight packages for chocolate, again, a hygienic issue, obviously, and also for example, Andreas Leitze Bosch Group single-wrapped jellies. The trend toward individually wrapped jellies is another example of increased emphasis on hygienics. JAN HAMMINK: I’d like to make an announcement related to interpack: Carle & Montanari, Probat and Caotech, have entered into a preferred partnership relationship for cocoa processing. This means that we can offer our customers complete turnkey projects, and the customer can work with one supplier. Also internally, we designed our partnership so that we can be very competitive for complete projects. We call it a preferred partnership, because it’s only preferred. When a customer wants www.candyindustry.com

A new partnership for the cocoa industry

Caotech, Carle & Montanari and Probat are pleased to announce their preferred partnership to serve the cocoa processing industry. The three companies, each mastering different steps of cocoa processing, have joined their expertise and competence to provide their Customers with Turn-Key cocoa processing plants. Tailor-made solutions are designed for Customers to take advantage from reliable and modern plants at competitive prices. Customers will be able to discuss their projects with any of the Partners. Every step of the process will be managed by these experienced partners providing an integrated solution.

Visit us at INTERPACK 2011 at: HALL 3 - STAND C24/C26

HALL 3 - STAND E31/F36

HALL 2 – STAND D12

Caotech b.v. Handelsweg 3 1521 NH Wormerveer The Netherlands tel. +31 75 6404313 fax +31 75 6404312 www.caotech.com

Carle & Montanari SpA Via Trebbia, 22 – loc. Quinto de’ Stampi I-20089 Rozzano (MI) Italia tel. +39 02 824521 fax +39 02 82452252 www.carle-montanari.it

Probat-Werke GmbH Reeser Str. 94 D-46446 Emmerich am Rhein Germany tel. +49 2822 9120 fax +49 2822 912444 www.probat.com




13th Annual European Suppliers Roundtable — London

to deal with another setup of suppliers, we, of course, accept that completely. But I believe that this arrangement will help our customers in their dealings with us, because it will be efficient, it will be easy regarding information flow, and it will be cost effective.

CANDY INDUSTRY: So Jan, can you be a little more specific as to how each company is preferred? JAN HAMMINK: Simply, when you take the big items of the cocoa line, then Carle & Montanari is more on the pressing side, Probat, of course, is for roasting, and we are for grinding. We are now currently finalizing the technical aspects involved in integrating our lines so that it will be a very efficient turnkey system. Jan Hammink Caotech THOMAS HUBL: The core point is the machinery. They fit quite well together, so we have almost no overlapping, so I would say for a partnership, it’s a very good start. MASSIMO PIETRA: Well, I can only confirm what Jan said. Of course, the cocoa processing market has changed in the last two years, let’s say, mergers, acquisitions and so on. We find this preferred partnership as a way to give something more to the customer than just machines that the three of us could supply alone. The idea is to design some solutions that the markets want today, to be open, to react faster, to be competitive on the price side.

CANDY INDUSTRY: And do you also want to comment on trends that you’re going to be showing at interpack? MASSIMO PIETRA: I believe everyone’s commented on the trends that we’re all actively involved in. And we’re involved from cocoa to the confectionery packaging, so these trends change a bit along the way. When you produce, for example, moulding lines, you have quite complex lines, and this mix of trends is never that clear. Sometimes it is maintenance, very quick maintenance, it’s changeovers, it’s energy, it’s sanitation. The challenge is how to mix them together and at a good price, because it’s not easy. Every large customer has ideas on these trends. So you must also mix and match different 36 CANDY INDUSTRY April 2011

ideas from the customer as well as propose something yourself. It’s a wonderful challenge. Nevertheless, there are costs involved, which I hope can be recovered. This is not very clear to me yet.

CANDY INDUSTRY: Oliver, any comments on your expectations for interpack, and what your company’s seeing in trends? OLIVER NOHYNEK: We, of course, are expecting many customers and many orders. As many participants in the roundtable have already mentioned, the situation is improving after a tough and difficult period. The only thing I’m not convinced about is that – how stable is the recovery? Is it just a weak recovery? I haven’t found a final answer to that yet. We’re still in the process of getting to the Oliver Nohynek Driam end of the recession.

CANDY INDUSTRY: Are you saying you’re unsure of the recovery? OLIVER NOHYNEK: Yes, I don’t know how stable it really is.

STEVEN STAAL: You will know on at the end of the year, December 31.

OLIVER NOHYNEK: Yes. Next year, I will be able to tell you.

CANDY INDUSTRY: Graham, because NID travels a long way to interpack, what are they estimating to do, and how do you look at interpack this year? GRAHAM JACKSON: I think it’s a challenge just to get there this year, for us. But – yes, we have some new equipment that we will show this year, and I think what we want to do is dispel the myth that it’s the same old, same old. Because we’ve been accused of showing old equipment in the past, so everything that’s going to be there this time will be a new design. We’re Graham Jackson quite excited to actually NID show the rest of the world that we’re still alive and kicking, and coming up with some new concepts as well. MATTHEW COTTAM: On our end, BCH is going to increase its range of micro equipment. We started three years ago with a micro range of equipment, which has sold very well. It does the same thing as the big

lines, but with less automation, for a lower price and delivers at lower output. So this year we’re developing that range with more equipment, which we see as the future, particularly as private or family-owned businesses buy into the power of technology and larger companies forego being as proactive in the marketplace as in the past.

CANDY INDUSTRY: So that’s definitely an adjustment to market realities, then, right? So you’re seeing midsize and smaller operators much more? MATTHEW COTTAM: We see many more midsized and smaller operators every year. I think I mentioned it three years ago. It’s almost like reverse globalization. People don’t want to keep buying in commodity confectionery products from other countries. They now want them to make it themselves. And that doesn’t always justify a large line, it justifies smaller equipment, not just from a size of market point of view, but also from a financial outlay point of view.

CANDY INDUSTRY: That makes sense. And so are you the only player out there doing that? MATTHEW COTTAM: I suspect not. STEVEN STAAL: Up to now you were. RALF SCHÄFFER: We have been doing this already since we started the company, so we had always the small equipment and the big equipment. Our experience is that if, let’s say, one big company buys another big company, they will concentrate on the mainstream products. They will reduce some small products, reduce small things, which are not profitable for them, and then there is space for smaller companies to go after this segment. We have many examples of this, and therefore you are correct that big companies stop producing small segments, there’s enough space and enough capacity for medium-sized and small companies to go in, and that’s exactly what we also see.

CANDY INDUSTRY: And in producing smaller equipment, are your actual costs of production higher as a result? MARTIN MCDERMOTT: It depends who designs your equipment. If you have the same engineer designing the high output equipment and designing the smaller equipment, then they take out two bolts and change the motor, and then it’s supposed to be cheaper. You really need to be careful around that sort of thing. MATTHEW COTTAM: Yes. BCH apwww.candyindustry.com

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proached it from a point of view of starting again, so everything was thrown out of the large equipment, and we just started again with a more economic production method for making the smaller equipment.

CANDY INDUSTRY: So you actually started… MATTHEW COTTAM: From scratch. We took some brave decisions, sort of reversing what the industry standards were, in some instances, to Matthew Cottam make the equipment to BCH Ltd. a price that would justify the output it was delivering, and it seems to have paid off.

CANDY INDUSTRY: Yes, so it’s a far cry from all the bells and whistles that we talked about three or four years ago. Now, there’s a countertrend toward simpler, cheaper, and actually custom-designed to the smaller operator. Do you find that as well, Jordi? JORDI TORRES: What we hear is the need for flexibility. If you want to do everything with just one machine, it’s difficult to cope with this. MARK BEAVER: I think there’s two ends of the spectrum here, interestingly enough, because we’re also being pushed at the higher end. Some of the larger producers now have factories based in China. That floor space is getting more and more expensive, and hence they want to get more capacity out of the same Mark Beaver footprint. So in some Baker Perkins areas we’re actually being pushed to increase the top end of our capacity, to get more out of the same area. STEVEN STAAL: Wider belts, more per minute and all those kinds of things. MARK BEAVER: Absolutely right, yes. MARTIN MCDERMOTT: From a cooking capacity point of view, I agree you also have to look at the higher end. You have certain sizes of equipment, and with some markets and some multinationals, you just can’t get in if you don’t make that big equipment. They even want bigger than what you’re used to producing. So I think there’s definitely growth on both sides of the spectrum. 38 CANDY INDUSTRY April 2011

STEVEN STAAL: It’s also important to mention that many companies over the last one-anda-half to two years have been putting all their attention in surviving. Steven Staal And now, we have noticed Tanis Food Tec that, and I think it’s psychological, that people think, ‘Okay, we have spent enough time on surviving.’ People get more positive, so they think more long term. As a result, we expect more demands, more new ideas and concepts, because people can breathe a bit more and have more time to consider such possiblities. We also think that it depends a bit on who is visiting your booth. If you get engineers visiting at your booth, they want to know about how you’ve constructed things, whether it’s hygienic, questions along those lines. But we hope we will also see some marketeers who will come up with thoughts about how new products could be designed.

CANDY INDUSTRY: I’d like to address our ingredient partners at the roundtable. Are customers coming to you regarding R&D efforts? Are you more involved in working with them than ever before? STEFFEN STORGAARD: Our efforts within research and, in part, development has very much been linked to the trends coming from the market, and there are two clear trends that we see in the market right now. That is the health trend, and it’s what we call indulgence.

CANDY INDUSTRY: Two separate movements, right? STEFFEN STORGAARD: It’s quite a challenge, but for a consumer it should be a pleasure to eat a confectionery product. But we are more and more aware of the health aspects. It started with the fats containing no trans fats, then it was followed by non-hydrogenation. Now the new trend is low saturated fats, and this is what we are looking a lot into. And our response to that is that now we have a complete product range of non-hydro, non-trans fats and fats with very much lower content of saturated fat.

CANDY INDUSTRY: Do they still deliver the indulgence that you talk about? STEFFEN STORGAARD: Exactly. So in that way we are quite convinced that we’ll see a

lot of business within these products over the next years.

CANDY INDUSTRY: I mean, I assume that these ingredients cost more than the regular fats and oils that you’re delivering, right? STEFFEN STORGAARD: Yes. CANDY INDUSTRY: And are customers willing to pay the price for that? ANDREW FLEMING: Some will. STEFFEN STORGAARD: Yes, because for many companies it’s quite important, and the demand is very often coming from the retail chains, because they’re being pushed. And another thing about the indulgence, this is where we have tried to invent something new, especially within aerated, light fillings. This is a trend that we are seeing much more of, the mousse fillings, etc. And there we have created a very nice filling fat which you can aerate. So this actually goes hand in hand with the health trend, because by aeration you put in air, and then you can actually lower the amount of the fat in the product. ANDREW FLEMING: I agree with Steffen in terms of some of the trends in the market. I mean the health trend continues; it’s been there for a while now, for a couple of years. Where we do see much more potential, much more interest, is in the indulgence side, and creating chocolates that really do have very unique flavor profiles or very specific flavor profiles. And we’ve put a lot of effort, money and energy into products like Terra Cacao, which is a new product we launched this year, which is all about controlled fermentation, monitoring the cocoa, and really cultivating it in a way that delivers a particular type of flavor. That has a lot of credibility and a lot of traction in the marketplace.

CANDY INDUSTRY: While attending ISM this year, I saw more what I would call reactionary products than innovative concepts. Has the recession dampened research regarding cutting edge product development? Do you as suppliers find yourselves forced to become thought or idea leaders for confectionery companies nowadays? THOMAS MATOSEK: I think our customers have definitely been trying the last few years. Since the initial crisis, they’ve been trying to explore any possible niches www.candyindustry.com

13th Annual European Suppliers Roundtable — London

through existing products. So instead of also investing in complete new lines, they’ve bought more single machines to extend an existing line to come up with another product extension. On the other hand, I think by now they have realized that they’ve Thomas Matosek explored all these possiHosokawa Bepex bilities, and it’s now time to come up with something new, something revolutionary, and that’s probably why we’ve started seeing more customers really interested, as Andreas said before, in new forms and new concepts. STEVEN STAAL: Could it be that since the recession, more and more companies are more financially driven? Putting new products out means investments in marketing, investments in equipment. Financial people look at other things, and may well act as a brake to these kinds of new developments.

www.candyindustry.com

CANDY INDUSTRY: You’re saying that the actual focus is on profitability? STEVEN STAAL: Yes. CANDY INDUSTRY: So companies are cutting back on R&D? STEVEN STAAL: Or they aren’t commiting to introducing new products. Maybe the ideas are there, but the introduction is another investment, isn’t it? MARTIN MCDERMOTT: It used to be by changing the packaging you had a new product, but the same product was in there. Now the consumer is saying, ‘Well, we actually would like a new product.’ JORDI TORRES: I just want to say, with the market, we have the same feeling; we don’t see that people are cutting costs on research and development because our innovation center has been fully booked. However, we also notice a big increase — from the universities, from the public sector — to try to invest in infrastructure. In Barcelona there are three universities, and the food technology

centers, they are really using our research and development center to improve on food.

MADS HEDSTROM: We have even seen the trend that they want the Mads Hedstrøm machines out to their Aasted facilities. They are not only using the innovation center, but they also want either rented machinery or new machinery to test their concepts for a longer period of time in their plants. MATTHEW COTTAM: I think that people are outsourcing. Even big multilaterals are outsourcing their testing facilities, so they’re relying less on in-house development of new products and looking forward to working with suppliers to help them develop new products. I can only believe that’s because they see it as a cheaper way of doing it. I don’t think there’s any other reason for doing it. So they are releasing confidential information under strict

January 2010 CANDY INDUSTRY 39

13th Annual European Suppliers Roundtable — London

control, and expecting suppliers to work with that information and develop new products. It’s a trend that we’ll see increase.

you seen demand from your customers about improved conveying systems? BERND ROSER: Besides a generic level of

even be more exacting regarding sourcing, food safety? EDUARD SALA: I think

CANDY INDUSTRY: Do you think there should be increased regulation in the commodities markets? MARK BEAVER: I’m not sure you can. ANDREW FLEMING: I think there should

traceability and declaration of conformity, which we all have to fulfill, it’s on the agenda daily. We are more and more involved in CIP requests from the end-user side; clean the belt in place; Bernd Roser Habasit add to existing equipment. Our main mission involves supporting the customer in hygiene, developing product with CIP for the belt and creating better, cleanable, more hygienic, less delicate surfaces. That’s how a belting company can support manufacturers.

it’s a significantly different approach compared to machinery. In our case, it will affect our operation significantly. First of all, we have Eduard Sala Cafosa more regional restrictions. Second, we’re constantly investing a lot in our factory to meet increasing requirements and demands. It’s a matter of controlling every step of the process. And you must be prepared for different audits. As you can imagine, a tremendous amount of effort and money is invested in this aspect. We all know the standards. Independently, however, there are certain customers who want us to uphold their standards specifically. At the end of the day we may be subject to 10, 11 audits a year. As a result, it’s a continuous process.

be some limits on what they can do and what they can’t do, yes. I mean, we need to be careful, because as an ingredients manufacturer and supplier, we need to trade in those markets as well. But there should be limits on some of the things that are done, because there’s been Andy Fleming Barry Callebaut some blatant manipulation of the cocoa market within the past 18 months, and people have been quite open about it, as well.

CANDY INDUSTRY: Bernd, obviously belting plays a critical role in food safety. Have

40 CANDY INDUSTRY January 2010

CANDY INDUSTRY: Turning to our ingredient suppliers once again, are you being charged to

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13th Annual European Suppliers Roundtable — London

CANDY INDUSTRY: The cost of doing business these days, I guess. Stefan, do you want to add something about traceability? STEFFEN STORGAARD: The only thing I’d like to add involves our efforts regarding sustainable palm oil again. There are requests coming from the market for sustainable palm oil, consequently all Steffen Storgaard AarhusKarlshamns our factories have been certified by RSPO, Roundtable on Sustainable Palm Oil. That means we have to set up a secondary supply chain for the palm oil. That, of course, is a procedural change.

CANDY INDUSTRY: Andrew, any comments on that? ANDREW FLEMING: Yes, many of our customers are increasing their standards, and they are placing more and more limitations on us. So we have to adapt to those limitations. We also have to invest in our infrastructure, because we have conditions

where, for example, if a customer insists on a positive release, we have to have all the microbiological resource back before we actually send the product out. That means you need to hold the liquid chocolate for another three days. You need more tank capacity to do that. It does have an impact. ANDREAS LEITZE: On the equipment side, I think it goes hand-in-hand with cost reduction, because if you have a more efficient, more sustainable machine, that means it save energy, it has less waste, shorter cleaning times, less water consumption, you know, these are all aspects which are reducing the cost of production. This is something which, of course, small companies are very interested in — reducing their production costs. And on the other side I see that many customers/companies are trying to market sustainable packaging. We now have a new technology using only monofilms. This is a way for small and medium-sized companies to cut their costs and simultaneously embrace sustainability.

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42 CANDY INDUSTRY January 2010

CANDY INDUSTRY: I understand there’s a growing emphasis on improving customer service. Are your organizations reallocating resources to improve customer service – if so, do you believe this is one of the ways to improve your competitive advantage. RALF SCHÄFFER: Basically I think that the general trend in the industry is that customer service today is different than it was in the past. Then, it was more the case that you did it from the front line, you gave information, you provided good service. Naturally, when the customer called and had a problem you said “As soon as possible somebody will solve the problem.” Today you need to have proactive service. We have to offer more active service involving either yearly or twice-a-year visits, maintenance with the machine, perhaps a better guarantee or whatever. You also need to think about providing operator training, checks of the line. I think most of us are doing this already, but I think

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CANDY INDUSTRY: So you have to be a bit more proactive in your customer service? RALF SCHÄFFER: Yes, to find solutions to help your customer so you can have good customer relations during the lifetime of the machine. MADS HEDSTROM: You have to get out there more locally to them. If somebody has a problem at a certain time, at a certain place, they need a response immediately. And you have to give them that today. There’s a lot of different ways of doing that. You can have 24-hour service, you can have people at the spot in different offices, you can have service departments out there, you can have big service departments. I think what the customer – and we ourselves as consumers – want somebody to react as soon as we report a problem. MADS HEDSTROM: Yes, of course. GRAHAM JACKSON: I’ve found that over the last ten years our machines have moved from primarily an agricultural type piece of equipment to quite elaborate systems with servo drives and sophisticated software programs. We find now that whenever we go back the people who we trained initially, they are no longer there. People don’t stay in jobs like they used to and so you’re constantly having to retrain people. That’s where misdiagnosis comes in. And it’s almost impossible to do it over the telephone because what happens is: you pick up the phone, someone says ‘It’s not working. You say, “What’s the touch screen telling you? Are you getting any feedback from the drives? And is Dave still there?’ ‘No, Dave left two years ago.’” ANDREAS LEITZE: Most customers with small problems want to have them answered immediately or within an hour; for major problems even there they want to have them answered within the same shift. MADS HEDSTROM: They want somebody to be there, it all depends where in the world you are. What I mean is, service is one of the things which we have – all of us around the table – have to survive on. It has come to that. www.candyindustry.com

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13th Annual European Suppliers Roundtable — London

CANDY INDUSTRY: So the service is a bit more demanding on your end, right? JORDI TORRES: In

ticularly in chocolate – one of the challenges that we have is the cost-to-serve model. So we have customers that are general, it’s what priced based on buyMads said, but I think ing large volumes, we are living, all of us bulk chocolate, it’s are making money a commodity item. because we are living And they can eat up in a society of our failresources as well ures. Everything we as energy from our buy can fail. So what technical support we need, all of us, is people when they an immediate report, have a problem. Then and our customers, you have the other as well. People are end of the spectrum, more demanding they’re buying relabecause I think this tively small volumes, kind of mentality will Candy Industry’s Bernard Pacyniak joins Habasit’s Bernd Roser and the Bosch Group’s Ralph Jensen and Andreas Leitze prior to lunch. but high-margin specontinue to have imANDREW FLEMING: Just a comment, I ciality products. Thus, one of the chalmediate impact on what you buy. That’s don’t know how the machinery collenges we’ll have as an industry, not just why after-sales service in our business is leagues see this, but ingredients, parBarry Callebaut, is trying to deploying more important.

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