Food 4 Future – Expo Foodtech presents the 7 trends that will define the future of the food industry
The food industry met last April at Food 4 Future – Expo Foodtech and Pick&Pack for Food Industry, which were held simultaneously in Bilbao, Spain, from 16 to 18 April to discover and analyse the challenges facing the food and beverage sector, marked by an inflationary economic context, new consumer habits that lead to new consumer demands, and increasingly demanding regulations regarding sustainability. With the help of 482 experts from the food industry worldwide, Food 4 Future and Pick&Pack, together with AZTI’s technological innovation team, have identified the 7 trends that will mark the future of the food industry in the coming years:
1. Geostrategy and inflationary environment
Europe has traditionally had a history of low agri-food inflation, something that has changed in recent years with a double-digit annual increase in food and non-alcoholic beverage inflation. This problem, coupled with the fact that many regions specialise in a single product, creates a risk of market fluctuations. To face these challenges, Food 4 Future has highlighted the importance of moving towards the European model of more efficient and productive farms, with greater collaboration from the private sector, something that will strengthen the competitiveness of these companies. Alliances between manufacturers and fostering resilience, innovation and collaboration are key to ensuring success in a constantly evolving sector.
2. New consumer habits
Consumer demands and habits have changed and now demand personalised experiences. Many companies are already using data and the latest technologies, such as Artificial Intelligence, to adapt products and services to these new individual preferences and the trend is expected to continue in the future. In addition, society has shifted and now consumers value health, taste, convenience and sustainability as key drivers and where direct sales have increased significantly. In this way, food and beverage firms are gaining market share, winning over the shopper in the current context of price adjustment, and forging robust competition for the rest of the players. New habits also include the demand for healthier and more sustainable foods, which has led to innovation in alternative foods, such as those based on vegetable proteins, mushrooms, algae, and meat substitutes.
3. 360° Sustainability
The food industry faces multiple challenges in terms of sustainability, driven by climate change, the efficient management of resources such as water and energy, and the need for decarbonisation to achieve zero net emissions. It is also focusing its efforts on the importance of minimising greenhouse gas emissions, optimizing packaging materials, improving eco-efficiency in production processes and encouraging recycling throughout the product life cycle. Suppliers are key in this respect, as are sustainable agricultural and livestock practices, together with more efficient food processing chains and minimising food waste.
4. New technologies
The digital transformation that the food sector is undergoing has brought with it robotisation and automation in production plants, but it is also being extended to other practices such as harvesting, spraying and pruning in agriculture. Other trends that will mark the future in the field of agri-food tech are precision fermentation, efficiency technologies, operational excellence, or industrial machine vision to detect quality defects, among others. The application of technologies is also key to guaranteeing food quality and safety, with real-time monitoring, preventive models, traceability from farm to fork, and smart packaging and labels to ensure the quality of pre-packaged food. In addition, quantum computing is gaining a great deal of attention in the field of innovation.
5. Healthy eating
Concern for healthy eating and lifestyle is growing, which is why personalised nutrition has become increasingly important in recent years. Companies are striving for healthier products without sacrificing pleasure and taste through new techniques. The debate on ultra-processed foods and the need for legislation will also remain on the table. This is an issue where there is no consensus and where there is a high degree of ignorance among citizens about labeling systems. Transparent communication on packaging will help consumers to make informed choices.
6. New packaging regulations
Packaging is also undergoing a paradigm shift driven by several interlinked factors: the advance of decarbonisation, the application of technologies for process optimisation and the adaptation to increasingly demanding sustainability regulations. The sector is currently immersed in major challenges driven by the new regulations against food waste and packaging, which will have an impact on eco-design, the trend towards mono-material, reuse, and the increase in recycled material, among other issues.
7. More sustainable and efficient logistics
Supply chain efficiency is crucial. Technology allows for greater production and volume, greater flexibility, and more traceability, all of which have an impact on increasing business for companies in the sector. For this reason, Artificial Intelligence, robotics, automation and blockchain solutions are already being applied to improve logistics efficiency in the food value chain. The use of robots and AI makes it possible to handle a wide variety of products, and even pack boxes with products of different types and sizes using artificial vision. The result is improved efficiency, saving time and increasing sustainability while reducing costs.
SIG has entered into an agreement to acquire 100 % of Scholle IPN, a privately held company, for an enterprise value of EUR 1.361 billion and an equity value of EUR 1.05 billion. The transaction will be funded through 33.75 million SIG shares issued from existing authorised capital and EUR 370 million cash; the existing debt of Scholle IPN will be refinanced at closing. The transaction is expected to close before the end of the third quarter of 2022 subject to customary closing conditions.
This acquisition diversifies SIG’s exposure to growing and resilient end-markets. SIG’s portfolio of market-leading sustainable food and beverage carton solutions will be expanded into bag-in-box and spouted pouches for retail, institutional and industrial customers. SIG and Scholle IPN have many similarities and are highly complementary businesses in terms of systems and product offering. The combination will unlock significant growth opportunities and value.
Founded in 1945, Scholle IPN is a leading innovator in sustainable packaging with a systems offering. It is the inventor of and global leader in bag-in-box (2 l –1,500 l capacity) and the number two in spouted pouches (50 ml – 500 ml capacity). The acquisition will therefore expand SIG’s portfolio into both larger and smaller formats. Scholle IPN is headquartered in the USA and has approximately 2,100 employees globally. Revenue in the twelve months to 31 December 2021 was EUR 474 million with adjusted EBITDA of EUR 90 million (adjusted EBITDA margin c.19 %)2. The USA accounts for around 55 % of revenue and the acquisition will significantly increase SIG’s presence in this large and attractive market. It will also enable the expansion of the Scholle IPN portfolio into the emerging markets of Asia Pacific, Latin America and Middle East Africa, where SIG has a well-established presence.
With this acquisition, SIG will be able to offer the most sustainable packaging solutions across a wide range of categories and product sizes. Growth in bag-in-box is being driven by the shift from rigid to flexible packaging which significantly reduces the amount of material needed to package the product. Scholle IPN has a longstanding focus on sustainability and on the light-weighting of both packaging and fitments. It is a pioneer in the development of mono-materials which are designed for recycling. Joining together the R&D capabilities of the two companies will deliver more value to customers by advancing the development of material and aseptic technology to reduce carbon emissions and food waste.
Around 70 % of Scholle IPN revenues are in food and beverages which will underpin the resilience already demonstrated by SIG’s business. The acquisition will enable SIG to build on its core strength in aseptic technology and to expand its use in both pouches and bag-in-box. It will also drive SIG’s expansion into new categories such as wine and water. Like SIG, Scholle IPN has developed long-standing customer relationships and the acquisition brings multiple cross-selling opportunities, as well as potential for an enhanced service offering for the combined customer base. In addition, run-rate cost synergies of EUR 17 million will be generated in areas such as procurement and manufacturing efficiencies.
1At current USD/EUR exchange rate 2Unaudited. At 2021 average USD/EUR exchange rate
Elopak is reinforcing its presence in growth markets and investing in profitable growth with the acquisition of Naturepak Beverage Packaging Co Ltd, the leading gable top fresh liquid carton and packaging systems supplier in the MENA region.
Elopak ASA has signed a Share Purchase Agreement to acquire 100 % of Naturepak Beverage from Gulf Industrial Group Company Plc and Evergreen Packaging International LLC, a wholly owned subsidiary of Pactiv Evergreen Inc.
Naturepak Beverage is the leading provider of fresh liquid carton and packaging systems in the MENA region with local production facilities in Morocco and Saudi Arabia, which will be integrated into Elopak’s global production network. Present in 16 countries, Naturepak Beverage has an annual production capacity of 2.7 billion cartons across various product sizes and its customers are global blue chip FMCG players and strong regional champions.
The acquisition will reinforce Elopak’s position in the region and is an important milestone in management’s ambitions to target 2-3% organic revenue growth, deliver inorganic opportunities and grow its global footprint by entering new geographies.
Thomas Körmendi (Photo: Elopak)
Commenting on the acquisition Thomas Körmendi, Chief Executive Officer of Elopak, stated: “This transaction represents an important part of the growth ambitions we outlined to our shareholders during our IPO this year. I am proud to take ownership of what we deem to be one of the highest quality assets in the region and to welcome the employees of Naturepak Beverage to the Elopak family. By establishing a presence in Morocco and Saudi Arabia we can access important growth markets and deliver Elopak’s brand portfolio to key local and international players. The transaction reflects our strong commitment to growth in the Middle East and Africa”.
Following the acquisition, Naturepak Beverage will be rebranded and incorporated under the Elopak name. The acquisition provides a strategic customer base in the fresh beverage carton segment, primarily in Morocco in fresh dairy, and gives access to growth markets in an attractive region.
Going forward Naturepak Beverage’s client base will have access to a wider fresh and aseptic product portfolio and innovative, sustainable packaging solutions developed by Elopak, with Elopak leveraging its Pure-Pak® carton portfolio and utilizing its technical expertise to drive further growth across products, segments and markets.
AutoCoding’s software solution automates and integrates in-line packaging systems, such as labelers, scanners, coders and checkweighers
JBT Corporation, a global technology solutions provider to high-value segments of the food and beverage industry, has announced the acquisition of AutoCoding Systems Ltd, a leading provider of software solutions for the automated set-up and control of end-of-line packaging devices. AutoCoding extends JBT’s capabilities in packaging line equipment and associated devices, including coding and label inspection and verification. The company is headquartered near Runcorn, UK, with additional operations in the US and Australia, and generates approximately $7 million in annual revenue.
AutoCoding’s central command software solution integrates and automates the use of in-line packaging devices, such as coders, scanners, labelers, and checkweighers, reducing manual inspection and downtime for line configuration. While AutoCoding is scalable across JBT FoodTech’s diverse end markets, it provides a particularly strategic fit with JBT’s Proseal business where its tray sealing equipment begins the end-of-line process.
“AutoCoding’s offering embodies JBT’s broader mission to make better use of the world’s precious resources by providing a solution that substantially enhances our customers’ success. AutoCoding helps its customers reduce food waste, ensure complete and accurate food packaging information, and facilitate traceability and food safety,” said Brian Deck, JBT’s President and Chief Executive Officer. “The acquisition also expands our capabilities in the large and growing global market for in-line coding and inspection solutions, which includes hardware and software for food & beverage, pharmaceutical, and nutraceutical customers.”
JBT is a leading global technology solutions provider to the food & beverage industry with focus on proteins, liquid foods and automated system solutions. JBT designs, produces and services sophisticated products and systems for multi-national and regional customers through its FoodTech segment. JBT employs approximately 6,200 people worldwide and operates sales, service, manufacturing and sourcing operations in over 25 countries.
O-I Glass, Inc. and Germany’s Krones AG signed a strategic collaboration agreement that aims to elevate glass by innovating together and to jointly create solutions for the growing glass market.
“For O-I, glass is the preferred packaging solution in a world that increasingly values health, premium products and the environment. Not only does it maintain the integrity of the products and protects the environment, as customers and consumers intend, but it also offers magnificent opportunities for establishing brands and implementing sustainable solutions,” explains Andres Lopez, President and CEO at O-I. “This agreement is the first step that O-I and Krones are taking together in order to offer clients completely integrated, end-to-end solutions in the future.”
Focus areas include improvements in glass filling and packaging line speed and efficiency; enhanced agility and flexibility of responding to market trends; development of innovative and sustainable glass systems; and advancements in digital solutions such as direct-to-glass digital printing technology.
“In production facilities all over the world, the products of O-I and Krones are already encountering each other. So it was absolutely logical to improve still further the compatibility of Krones’ complete lines and the glass containers from O-I,” adds Christoph Klenk, CEO of Krones AG.
With this agreement, the two companies are combining O-I’s specialized knowledge of glass with Krones’ leading competence in manufacturing machines and filling lines for the food and beverage industries.
AROL Group – a world leader for design and production of closure systems – announced the important technological agreement executed on September 30, 2019 with Antares Vision S.p.A. – world leader in the production of technologies for tracking, visual inspection and intelligent data management in packing lines – which, at the same time, has purchased FT System S.r.l. from AROL.
The agreement confirms the ambitious industrial project by AROL which, as a consequence, will be able to accelerate investments and acquisitions focused in the strategic sector of capping and sealing, and will increase integration for inspection and control systems in its machines, thanks to the strong synergy with Antares Vision. FT System S.r.l., specialized in non-destructive inspection and control systems, both in line and in laboratory, will continue its strong technical collaboration thanks to which, throughout the 10 formidable years spent in the AROL Group, new extremely integrated systems have been implemented and placed before or after AROL’s capping machine and great innovations have been introduced in the line completely automatic controls, such as Robo-QCS.
Research and implementation of the ambitious project presented 2 years ago by AROL and FT System with the name of Cyber Physical System (CPS) – which unites packaging lines and digital systems and, therefore, integrates physical and cyber worlds – will be powered and enriched by Antares Vision’s extraordinary competence in Track&Trace and Data Analysis.
The aim that AROL, FT System and Antares Vision intend to pursue with this technological co-development agreement is to make CPS extremely efficient and accessible to every packing line so that CPS might collect, elaborate, interpret real time data and constantly send feedback, also automatically, to packing plants and, as a consequence, maximize the efficiency of lines and single machines, constantly linked to the quality of packed and adequately tracked product.
The new partnership will allow Antares Vision to take advantage of the experience earned with more than 27 thousands AROL Group machines delivered worldwide, in the sectors of beverage, wine and spirit, food, cosmetics, household care, chemical, and also it will allow AROL to rely on Antares Vision’s highly advanced know-how, which makes Antares Vision the undisputed world leader in the pharmaceutical sector, by increasing FT System’s potential and thus guaranteeing a sure technological advantage to its clients in the final customer’s interest.
Demand for flavoured milk beverages is seeing steady growth worldwide, and the product variety in the markets is correspondingly large. There are trendy flavours like cappuccino, coconut and walnut that also appeal to adults, plus the classic cocoa beverages and milk drinks with vanilla, strawberry or banana flavour. In addition to tasting good, they address a wide range of consumer wishes, from low fat and reduced sugar to lactose free to high protein. With the new Stabiprime MFD range from Hydrosol, it’s easy to make all kinds of milk beverages.
Stabiprime MFD consists of carefully selected hydrocolloids. These stabilising systems are soluble in water as well as in sweet whey. They are easy to use, and make it economical to produce milk mixed beverages. In addition to the proven system with carrageenan, Hydrosol also offers a gellan alternative, Stabiprime MFDG. Its advantage is that it enables milk beverage filling even at high temperatures, up to 40°C. The main property of Stabiprime MFDC with carrageenan is that it lets manufacturers make stable products without high-pressure homogenisation, preventing sedimentation even with cocoa. Thanks to the special combination of hydrocolloids in both Stabiprime MFD versions, producers can make high-quality milk beverages easily and profit from the worldwide growth in this category.
