GEA will invest around EUR 50 million in the modernization of its German centrifuge production facilities in Oelde (North Rhine-Westphalia) and Niederahr (Rhineland-Palatinate) by the end of 2024. The engineering group made the announcement at a press conference marking the 130th anniversary of GEA separation technology at its Oelde site. By investing in sustainable production, digitalisation and automation, GEA is targeting further growth in its key markets, which include the food, beverage and pharmaceutical industries.
GEA centrifuges are used in more than 3,500 different processes in a wide range of industries. Growth drivers include applications for alternative protein production and global demand for dairy products. The investment package for the centrifuge plants is based on four pillars: sustainability, digitalisation, automation and modern manufacturing technologies.
Climate-friendly production through the use of renewable energy
Already today all GEA production sites are powered by green electricity. In the long term the electricity supply for GEA’s sites will come from local renewable energy sources. At the Oelde facility, several large-scale photovoltaic systems will cover about one-tenth of the site’s electricity requirements, including the provision of electromobility. An in-house combined heat and power plant already generates around 30 percent of the electricity required. Since waste heat is also used, 94 percent of the primary energy utilised is recycled. Process heat generation, which is important for production, will also be converted to alternatives such as electric steam generation, which will enable the Oelde and Niederahr sites to operate without gas in the near future.
“Transition In Packaging” is the key theme of the FACHPACK trade fair, to be held in Nuremberg from 27 to 29 September 2022. This describes the transformation currently taking place in the European packaging industry. More sustainability, more e-Commerce and increasing digitalisation are just some of the driving themes. Then there are the current challenges such as the shortage of skilled workers, high power costs and disrupted supply chains. “The dynamics in the packaging industry have never been greater,” says Heike Slotta, Executive Director NürnbergMesse. “But despite that, or perhaps because of it, companies in the sector are very strong on design and innovation.” The key theme of “Transition in Packaging” will be reflected at the stands of the 1,145 exhibitors (2021: 789), in the extensive lecture programme, in the fascinating special shows and in the award presentations. Visitors from the consumer and industrial goods sectors will be impressed.
FACHPACK offers a compact yet comprehensive overview of the products and services relating to the packaging process chain for industrial and customer goods – i.e. packaging and the associated technology and processes. This year’s event will extend to nine exhibition halls. Of the 1,145 exhibitors, 42 percent will travel to Nuremberg from outside Germany, the majority from Turkey, Italy, Austria, the Netherlands, Poland, Switzerland, Belgium, the Czech Republic and France.
A good half of the exhibitors are active in packaging materials and packaging accessories, and about one-third in the area of packaging machines and labelling and palletizing systems. About 15 percent work in the area of package printing and finishing, in-house logistics and services for the packaging industry.
Sponsored Post – Does the beverage and liquid food industry also have Olympic aspirations? Manufacturers of beverages and liquid food and machine manufacturers have long since recognised the potential. Digitalisation and digital transformation are one of the four main topics at drinktec 2022, which will be held in Munich from September 12 to 16, 2022. With its range of exhibitors and supporting program, the world’s leading trade fair for the beverage and liquid food industry offers broad views and focused approaches aimed at helping the industry become faster, achieve stronger results and intensify its focus on sustainable plant concepts in the next years.
And the strong momentum around data use and process improvement is not only on the manufacturer side; retailers and consumers have long been active in these areas: Merging virtual and real worlds at the point of sale of the future is aimed at improving contact with consumers. One way to achieve that is through automation and networking with supply chain management, multimedia shopping environments for an individualised customer approach or online retailing.
An international study by the consulting firm PWC puts “digitising products and services” in second place among the top ten challenges of the next few years. The study by the German Engineering Federation (VDMA) on the future of food processing machinery also points in this direction: A supporter of the drinktec trade fair, the VDMA identifies digitalization and concepts for intelligent networking and data use as a major focus for the industry’s future alignment until 2035.
Solutions for different perspectives
Digitalisation in the world of beverages and liquid food offers real added benefits for many users. One area that benefits is process engineering, where precise temperature profiles in the manufacturing process can seamlessly track production and identify quality parameters during the early stages of production. The best example of this is in the brewing process: In collaboration with equipment manufacturers and breweries, researchers used machine learning to model an efficient and more sustainable malt yield, and identify significant influencing factors for the malt yield.
Real time is another keyword. At this fall’s drinktec, machine manufacturers will offer numerous solutions for obtaining real-time information from machines: The online tracking of production and filling processes can yield higher performance, predictive maintenance, efficient conversion processes, an overview of consumption values and clear data on product quality. Providers of software solutions, such as manufacturing execution systems (MES), can already give preliminary estimates of the optimisation potential: Efficiency gains of up to 20 percent are possible for line operations, overall equipment effectiveness (OEE) is improved through maintenance cycles that are up to 30 percent longer, and product changes can be made at the planned time with 99 percent certainty.
While these solutions often require “only” extensive data collection and recording, another supplier goes even further: Thanks to more accurate detection of water droplets, an empty glass inspector trained in deep learning significantly reduces the output of glass bottles identified as defective. Needless to say, this saving can also be directly converted into CO2 savings: Depending on the line output, 25 to 100 t of CO2 can be saved through this improved rejection rate.
The possibilities of machine learning software also raise the expectations for maintenance tasks: One exhibitor at drinktec is already using this digital tool to detect anomalies in separator machinery. Condition-based maintenance with AR data glasses seems to have been taught almost everywhere and has been widely adopted by machine suppliers.
Every digital application is also another checkmark on the sustainability list. This is particularly clear in the case of cleaning technology, which uses optical realtime detection of contamination even inside containers and tanks and enables highly specialized cleaning cycles. A machine learning tool ensures that individual contamination levels are learned, detected and treated correctly.
More inspiration in the supporting program
drinktec 2022 brings together the full scope of innovation for the beverage and liquid food industry: In addition to the exhibitor portfolio, including a directory that lets visitors find providers of solutions to digitise production operations and their supply chain, visitors can also look forward to the supporting program when planning their visit: With presentations on the key topic of digitalisation at the drinktec Inspiration Hub in Halls A3 and B3, exhibitors and visitors will have the opportunity for in-depth interaction: Concentrated expertise and innovative applications offer fresh impetus for the future-oriented alignment of the industry.
PepsiCo, Inc. announced the establishment of the company’s first two Digital Hubs in North America and Europe, with plans to expand to more locations in the future. These Hubs, located in Dallas and Barcelona, are expected to create more than 500 new, high-caliber data and digital jobs over the next three years, bringing additional opportunity to the regions. By creating state-of-the-art spaces designed for real-time collaboration, the talent and capabilities housed in these Digital Hubs will drive PepsiCo’s digitalization agenda and create a strong, global digital delivery network.
As one of the first major consumer packaged goods (CPG) companies to establish a robust Digital Hub in North America, the Dallas-based Hub will support the development of global solutions with a primary focus on meeting the needs of the company’s North America-based businesses: PepsiCo Foods North America and PepsiCo Beverages North America. The Hub in Barcelona will serve as a Center of Excellence for PepsiCo Global Digitalization priority programs. Together, the Hubs will accelerate the way PepsiCo develops, centralizes and deploys critical digital capabilities, such as near instant, holistic, predictive analytics and ecosystem engagement across our global operations.
“Our Digital Hubs will support PepsiCo’s efforts to be an even Faster, Stronger and Better Company,” said Athina Kanioura, Chief Strategy & Transformation Officer, PepsiCo. “By creating an agile and dedicated environment where innovation will thrive, our talent will have the opportunity to lead work that will reach global scale and have a significant impact for PepsiCo for many years to come.”
These capabilities move the company closer to a future vision where customers will have improved access to real-time sales and inventory data; consumers will benefit from consistent product availability at the right place, right time and right price; and employees will utilize predictive decision-making tools, giving them the ability to manage more complexity with enhanced efficiency.
From leveraging AI to ensure perfectly consistent Cheetos every time to optimizing water consumption and preventing leaks in manufacturing facilities, PepsiCo has been at the forefront of digital innovation across its global operations. PepsiCo’s Digital Hubs will greatly influence the way the organization reinvents planning, making, moving, selling and delivering products.
Kanioura added, “We strategically chose Barcelona and Dallas because they are truly innovative cities with topnotch talent, world-class education systems and fully-developed regional infrastructures. Coming into PepsiCo one year ago, I was extremely impressed with the caliber of existing data and digital talent within a CPG, and I’m excited to harness that power to grow our teams in North America and Europe.”
GEA Group presented end of September ist „Mission 26“ strategy in London as part of its Capital Markets Day. The plan for the next five years defines seven key levers to accelerate sustainable, profitable growth. The focus is on sustainability, innovation and digital solutions, New Food, as well as excellence initiatives in sales, service and operations. The company is also looking at targeted acquisitions.
“We have set ourselves the goal of being at the forefront of the mechanical and plant engineering industry,” says Stefan Klebert, CEO GEA. “We take it upon ourselves to protect future generations by offering sustainable solutions for the food and pharmaceutical industries. In these attractive markets, we want to continue to grow profitably while contributing to a better world, as anchored in our purpose – engineering for a better world.”
Ambitious financial targets set for 2026
“Mission 26” sets ambitious financial targets for 2026. Organic sales growth of 4.0 to 6.0 percent per year is expected, leading to sales of around EUR 6 billion (FY 2020: EUR 4.635 billion). The EBITDA margin before restructuring expenses is projected to grow to a record level of more than 15 percent (FY 2020: 11.5 %). The Group-wide return on capital employed (ROCE) is anticipated to increase significantly to over 30 percent (FY 2020: 17.1 %).
In the context of further targets, a stable ratio of net working capital to sales of 8.0 to 10.0 percent is expected by 2026. Capital expenditure (CAPEX) is projected to be around EUR 200 million annually until 2026. Overall, this leads to strong free cash flow generation of around EUR 2 billion from 2022 until 2026.
“We are creating significant value for our shareholders through 2026 and beyond,” says Marcus Ketter, CFO. “Our shareholders will participate in this success with sustainable dividend increases.”
Holistic climate and sustainability approach
In June 2021, GEA presented its interim targets for reducing its own greenhouse gas emissions alongside its net zero ambition for 2040. Greenhouse gas emissions in Scopes 1 and 2 are to be reduced by 60 percent and in Scope 3 by 18 percent by 2030 (base year 2019). The Science Based Targets initiative (SBTi), the globally recognized independent body for reviewing climate targets, validated GEA’s CO2 reduction targets in September 2021. SBTi thus confirms that GEA’s interim targets follow the latest climate science and make an effective contribution to achieving the 1.5-degree Celsius target of the Paris Climate Agreement
In addition to the climate targets already communicated, GEA has set ambitious ESG targets. Combined, these measures focus on environmentally sustainable customer solutions and responsible operations. Furthermore, GEA aims to be the employer of choice in the industry.
“Sustainability is firmly anchored in the company’s DNA and is therefore also an essential part of Mission 26,” says Klebert. “With our ambitious approach, we help our customers achieve their own environmental goals. Likewise, we strive for the highest standards in our operations and support our employees in developing their skills. In this way, we live up to our social responsibility and ensure GEA’s lasting success.”
GEA drives product innovation with R&D and digitalization
“Innovation & Digitalization” are also expected to make a significant contribution to realizing the goals of “Mission 26”. Here, GEA aims to increase the proportion of sales of products that are less than five years old – from the current level of 10 percent to about 30 percent. To fuel this development, GEA will increase its research & development spending by approximately 45 percent over the next few years.
In addition to introducing new products, GEA will offer customers more digital solutions to further enhance their processes and GEA machine efficiency. To drive the digital customer journey and the development of digital solutions forward, these competencies haven been combined under the newly created position of Chief Digital Officer (CDO), effective August 1, 2021.
Growth market New Food: GEA with unique position
In the dynamically growing New Food market, GEA will expand its already strong position and become a market leader. Here, the company intends to leverage its strengths in scaling industrial applications and its unique position as a full-line supplier. GEA anticipates order intake for newly developed and existing machines from this segment to exceed EUR 400 million per year by 2026. “Consumer expectations around food are changing. For example, environmental impact and animal welfare are increasingly prioritized, and demand for high-quality, protein-rich foods is growing rapidly. GEA is optimally positioned to meet this demand,” explains Klebert.
GEA has already demonstrated its strength in this dynamic market by winning one of the largest orders in the company’s history: Novozymes, the world’s largest supplier of enzyme and microbial technologies in Denmark, is entrusting GEA with the turnkey fitting of a large-scale plant in the U.S. to produce plant-based proteins.
Excellence initiatives in sales, service and operations
Further growth opportunities for “Mission 26” lie in sales, service, purchasing and production. In GEA’s regions and countries, sales effectiveness and presence will be better exploited by deploying more of the company’s own sales staff in key markets. Sales of new machines are expected to grow by 4.0 to 5.0 percent per year until 2026.
Further growth potential was also identified in the service area, which is a resilient and profitable business for GEA. The aim is to increase coverage and expand the service business with customers by 2026, thereby boosting recurring revenue. This approach is expected to generate annual organic revenue growth of 5.0 to 6.0 percent in the service business until 2026.
The optimization measures announced at the 2019 Capital Markets Day impacting purchasing, production and logistics will be continued. In the process, purchasing activities were bundled in a central purchasing organization, the production network was improved, and greater flexibility was created at sites. The aim is to enable a transition to best-in-class procurement by 2026, further optimize the production network and reduce delivery times to customers.
“Global Operations is undergoing a comprehensive and long-term transformation process,” explains Johannes Giloth, COO GEA: “In addition to cost reductions, this also involves creating structures for further growth. In this way, Global Operations will continue to have a significant positive impact on profitability in the future.” Between 2022 and 2026, further optimizations in purchasing (EUR 90 million) and production (EUR 60 million) are expected to have a total net impact on EBITDA of EUR 150 million.
GEA examines possible acquisitions
Strong cash generation and a solid balance sheet will enable external growth. GEA will therefore examine value-enhancing acquisitions to strengthen its portfolio.
Outlook for business development in 2021 and 2022 confirmed
GEA confirms the guidance for fiscal year 2021 that was raised in July 2021. Organic growth of 5.0 to 7.0 percent is expected for revenue. EBITDA before restructuring expenses at constant exchange rates is anticipated to be in a range between EUR 600 million and EUR 630 million. The outlook for ROCE at constant exchange rates is likely to be in the range between 23 to 26 percent.
At the Capital Markets Day in September 2019, GEA communicated its targets up to 2022. In March 2021, when the annual figures for 2020 were presented, GEA adjusted its medium-term financial targets for 2022 upwards. GEA has confirmed these again. Group revenue is expected to grow by an average of 2.0 to 3.0 percent annually from 2019 until 2022, the EBITDA margin before restructuring expenses is to increase to a target corridor of 12.5 to 13.5 percent (Capital Markets Day 2019: 11.5 to 13.5 percent) and the ratio of net working capital to revenue is to be reduced to the range between 8.0 and 10.0 percent (Capital Markets Day 2019: 12.0 to 14.0 percent).
Eckes-Granini and Refresco today announced that they have established the JuicyChain Foundation. This is a nonprofit organization with the purpose of making the global juice supply chain more sustainable. The foundation will manage and further develop the “JuicyChain”, which is an open source blockchain-based traceability and transparency platform. IDH Sustainable Trade Initiative is acting as an Advisor to the Board of the JuicyChain Foundation.
This new platform, based on The New Fork’s open food chain platform, was designed to create added value for all parties involved in the juice supply chain: from growers to processors, bottlers, brand owners, retailers and consumers. JuicyChain supports a move towards a significant increase in availability of sustainable juice in the marketplace. All companies in the juice industry can join JuicyChain and share information about sustainable juice easily and efficiently. Consumers and other stakeholders will be able to examine provenance and sustainability data by scanning a unique QR code on a finished juice product.
The New Fork has developed the platform blueprint and are the JuicyChain Foundation’s IT Provider. This blockchain based platform brings transparency to the efforts to increase the sustainability of juice in the industry.
“The blockchain technology brings us new and exciting possibilities to drive positive change. With the JuicyChain, we are continuing to work on increasing digitalization and sustainability of our business processes.” explains Holger Schlenger, CIO at Eckes-Granini.
JuicyChain aims to accelerate the uptake of sustainable juice volumes by providing supply chain transparency and trust. It enables customer and consumer-facing communication on sustainable juice with minimum entry barriers. JuicyChain members will need to be aligned with the sustainable sourcing definitions under the Sustainable Juice Covenant, hosted by IDH, The Sustainable Trade Initiative.
More companies are invited
We invite all parties in the juice supply chain to join JuicyChain so that we can further develop the platform together. Join us and be a frontrunner driving traceability, transparency and sustainability in global juice supply chains. As Coert Michielsen, CPO at Refresco says: “By teaming up with others we can move faster towards a common goal of more sustainable juice supply chains and promote the uptake of sustainable juice across the supply chain.”
How REVO is helping Stratus Packaging to optimize its label production
Stratus Packaging Group is one of the European leaders in the manufacture of printed labels, sleeves and in-mould labels. With 300 employees working in five production plants in France and a sales office in Switzerland, the company prides itself on its quality of service and the relationships it establishes with its customers. As such, Stratus Packaging is always on the lookout for true innovation that will provide its customers with a competitive edge. When it saw the solutions offered by BOBST and its REVO partners, Stratus Packaging knew it had found a source of innovation.
The DigiFlexo innovation, first brought to the market by BOBST at drupa 2016, has revolutionized the digitalization of packaging production by providing consistent color matching and control, process repeatability and consistency, with very quick job changes and minimum waste.
Progress in productivity
“Before, it was taking a lot of time to change the plates and clean the ink tanks between each job printed with different pantones,” explains Julien Chauveau, R&D Manager at Stratus Packaging. “It was costing us, and therefore our customers, time and money that we were keen to save.”
The solution came in the shape of a BOBST M5 UV flexo machine, which with the help of REVO innovation, transforms flexo printing and die-cutting into a digital process. Through a digital work flow, with integrated printing and converting technologies, the machine only generates 20 meters of waste and requires only one minute for each job change, providing the highest quality consistency at the lowest operating costs. The machine is equipped with Excellence™ for automated exchange of flexo print cylinders.
“We already had an advanced workflow, which made the DigiFlexo solution a natural fit,” says Julien Chauveau, “But now we have taken it to the next level. With only around 15 meters to automatically register up to eight colors between two jobs printed with REVO technology, we now have control and consistency at our fingertips at a very high production speed,” he says.
REVO and the color consistency revolution
REVO stands for Digital Flexo REVOlution. BOBST established the REVO partnership, consisting of Apex International, AVT, BOBST, DuPont, ESKO, Flint Group, Saica Flex, Stora Enso, UPM Raflatac and X-Rite Pantone, to optimize the digitalization of the complete production process.
One of its biggest successes has been around color consistency, which has been one of the main concerns of brand owners. Some substrates are more absorbent, which can affect how the color of the substrate itself interacts with the ink and affects the color. What’s more, different printing processes all using different types of inks and colorants.
The REVO 7-color Extended Color Gamut (ECG) is now a well-established turn-key DigiFlexo process that flows from pre-press through to production output. ECG printing uses three additional ink colors – orange, green and violet (OGV) – on top of the conventional colors of cyan, magenta, yellow, and black (CMYK), enabling a match with 90%+ of the Pantone book, compared with approximately 60% previously. This means there is no need to keep huge inventories of spot colors, but these can be added if required.
The benefits for Stratus Packaging are significant.
“The machine allows us to print in multichromy in UV flexo,” says Julien Chauveau. “This leads to reductions in ink costs. In addition, eliminating color matching reduces set-up times significantly. Overall with the REVO technology, we are able to optimize our production, with less change time for colors, less cleaning operation needed and fewer flexo plate changes. Consequently, we are able to optimize the cost to produce labels for our customers. By adjusting our printing processes, we have been able to open up new avenues for our company.”
In a nutshell, the REVO DigiFlexo has transformed the way Status Packaging is managing its labels production. The technology benefits are significant, and they answer the brand owners’ requirements well. The changing demographics and customer behaviors are here to stay and adjusting its production capabilities is a must to remain competitive. “BOBST offers leading innovations and we are glad to have deployed them,” summarized Julien Chauveau.
• Future viability of the beverage industry the key issue • One extra hall to meet moderate growth • New hall configuration facilitates event navigation
How time flies! The scheduled break in the BrauBeviale cycle is already over and preparations for the next three-year programme, specifically the first event in Nuremberg on 13 to 15 November 2018, are already in full swing. Visitors will follow a new route along the process chain for beverage production at the world’s most important capital goods fair this year. The event sees itself as the regular meeting place for the industry, and where else if not there do you get to talk about the issues that you care about? The beverage industry is facing huge challenges. As the key platform for the sector BrauBeviale will be providing inspiration on the future viability of the industry during the event’s next three-year cycle.
The last three-year cycle was one of the most successful in the history of BrauBeviale and because it was fully booked in 2016 an extra hall has been added in 2018. And this was a good enough reason for the exhibition team to rethink the hall configuration. “We are delighted about the huge response and that there is moderate growth from within the industry,” says Andrea Kalrait, Exhibition Director BrauBeviale. Even with nine halls, the relaxed atmosphere that is typical of BrauBeviale will be retained and the fair will be as compact as ever. How does this work? “It’s quite simple. We have made it even easier for our visitors to navigate around the exhibition. From now on the exhibitors will be positioned in the order of the beverage production process chain around our exhibition park,” says Kalrait about the new concept. “However, regular visitors should still do a bit of preparation before their visit this year so that they can find the exhibitors that interest them quickly,” Kalrait recommends.
Thinking about tomorrow today: future viability “In the past year we have seen again and again that the beverage industry is currently facing major challenges. These affect all companies, regardless of their size,” says Andrea Kalrait, summing up the numerous conversations held with industry players during the break year. Digitalisation, automation, changing consumer behaviour, commercialisation versus passion for the product, and scarcity of raw materials are just some of key issues that came up. And underlying is all this is the issue of future viability. But what do we need to put in place now so that we can continue to operate successfully in the market in the next five to ten years? “Of course there is no magic formula,” says Kalrait. “But BrauBeviale is the right platform for addressing and discussing these issues and providing inspiration.” The range of solutions on display and the supporting programme at the international capital goods fair for the beverage industry offer drinks manufacturers a comprehensive and informative range of ideas and approaches to equip them for the future.
Highly satisfied regulars and curious first-time visitors expected
The just under 38,000 trade visitors at BrauBeviale 2016, more than 16,000 of them from outside Germany, came from the technical and commercial management segments of the international beverage industry, i.e. from breweries and malt houses, companies producing and bottling alcohol-free drinks, wine and sparkling wine cellars, distilleries, dairies, specialist beverage retailers and wholesalers, the hotel and restaurant sector and service providers for the beverage sector. Trade visitors from overseas came primarily from Italy, the Czech Republic, Austria, Switzerland, the Netherlands, Russia, Belgium, Poland, the UK and France. Almost all (99 %) beverage specialists were satisfied with the range of products on display. After a year’s break, Andrea Kalrait is delighted to be able to finally welcome the industry back to Nuremberg again: “91 percent of industry professionals had already determined by the end of their visit in 2016 that they would be attending BrauBeviale again in 2018. We are looking forward to welcoming our regular attendees as well as first-time visitors!”
Dates of the current three-year BrauBeviale cycle:
BrauBeviale 2018: 13 – 15 November 2018
BrauBeviale 2019: 12 – 14 November 2019
BrauBeviale 2020: 10 – 12 November 2020
Beviale Family: International expertise in the beverage industry
NürnbergMesse Group demonstrates its expertise in the beverage industry on an international stage, beginning with BrauBeviale, the international capital goods fair for the beverage industry in Nuremberg. This is where, for over 40 years, the sector has been showcasing all aspects of the production process chain for beverages, such as raw materials, technologies, logistics and marketing. Other members of the product family are operating in important growth markets worldwide: For example, Beviale Moscow is the first and only trade fair for the entire beverage industry in Eastern Europe. CRAFT BEER CHINA in Shanghai is the gathering place for the Chinese craft beer community, while CRAFT BEER ITALY in Milan is the B2B platform for the Italian sector. In Bangalore, CRAFT DRINKS INDIA is designed to meet the needs and interests of the fast-growing drinks market in India. The Beviale Family also supports other projects through collaborations. It is represented in Brazil, for example, through the Feira Brasileira da Cerveja in Blumenau. SIBA’s BeerX, Britain’s largest trade fair about beer and brewing, is also an official partner to the Beviale Family. And ProPak Asia is likewise a part of the global network for the beverage industry. The “international sponsors” of the Beviale Family are Doemens Akademie and the VLB (Versuchs- und Lehranstalt für Brauerei), the Berlin-based teaching and training institute for brewing. Other projects are in the planning phase. For details and dates go to: www.beviale-family.com