ENSURING

FOOD
PROTECTION
TETRA LAVAL 2013/2014
ENSURING FOOD PROTECTION

There is constant pressure to increase food production to feed our

planet’s growing population. At the same time, we know that more
than one-third of food produced is wasted. Losses happen through­
out the food chain: from production to transport, from storage to
consumption.
An additional pressure is to make food safe and traceable throughout
its journey from source to consumption. For these reasons companies
and policy-makers are increasingly focusing on food protection.
At Tetra Pak, Sidel and DeLaval, we constantly strive to contribute
to better ways of protecting food. Our world leading know-how in
how to process and package milk aseptically is the starting point
and one of the most efficient ways to protect food. But we go further:
we look at how milk can be produced more efficiently, with minimum
losses. Focus is also on how beverages and food can be packaged
in a more sustainable way and distributed safely, but with less envi-
ronmental impact. We have solutions on how food safety can be
guaranteed along the entire chain, enabling customers to track the
food along the food chain.
So ‘Food Protection’ is the guiding principle of this year’s company
brochure. We’re very happy to welcome you, and hope you enjoy
reading about our advances in this important area.
TETRA LAVAL CONTENTS

TETRA LAVAL TETRA PAK

INTRODUCTION 3 TETRA PAK IN TWO MINUTES 18
CONTENTS 4 HIGHLIGHTS 2013/2014 20
IN THE WORLD 6 COMMENTS BY THE CEO 22
TETRA LAVAL IN TWO MINUTES 8 GROUP MANAGEMENT TEAM 25
COMMENTS BY THE CHAIRMAN STRATEGIC DIRECTIONS 26
OF THE BOARD 12 MARKET 28
TETRA LAVAL GROUP BOARD 14 CUSTOMERS 30
TETRA LAVAL CORPORATE STORY 16 TECHNOLOGY 32
SOLUTIONS 36
SUSTAINABILITY 38
TETRA LAVAL INTERNATIONAL 80
TETRA LAVAL INTERNATIONAL MANAGEMENT 81
TETRA LAVAL GROUP FUNCTIONS 82
ADDRESSES 83

4 TETRA LAVAL 2013/2014

 SIDEL DELAVAL
SIDEL IN TWO MINUTES 40 DELAVAL IN TWO MINUTES 60
HIGHLIGHTS 2013/2014 42 HIGHLIGHTS 2013/2014 62
COMMENTS BY THE CEO 44 COMMENTS BY THE CEO 64
GROUP MANAGEMENT TEAM 47 GROUP MANAGEMENT TEAM 67
STRATEGIC DIRECTIONS 48 STRATEGIC DIRECTIONS 68
MARKET 50 MARKET 70
CUSTOMERS 52 CUSTOMERS 72
TECHNOLOGY 54 TECHNOLOGY 74
SOLUTIONS 56 SOLUTIONS 76
SUSTAINABILITY 58 SUSTAINABILITY 78

PHOTOS: Tetra Pak ImageBank; DeLaval photo archive; Sidel photo archive. Tine Guth Linse, Björn Quarfordt.

TETRA LAVAL 2013/2014 5

TETRA LAVAL IN THE WORLD

FOOD PROTECTION is the core of the Tetra Laval business. There are numerous challenges today in
relation to nourishing the planet’s growing population. Food waste is one of them. It is estimated that about
one third of total food, or 1.3 billion tonnes food, is wasted annually. At the same time there are about 870 million
undernourished people in the world. Other challenges are the quality of food and the need for improved
traceability. Consumers must be able to trust the source of food as well as the whole food chain. Please
find below examples of how the Tetra Laval Group contributes to Food Protection around the world.

TETRA PAK DAIRY HUB PROJECTS UPDATE

With the Dairy Hub concept, Tetra Pak is committed
to support the increase of local milk production in
developing countries. By linking small holder farmers
to a dedicated dairy processor, we have helped cus­
tomers in several countries, including Bangladesh
and Nicaragua, to access more and better locally
produced milk. The projects show very strong and
positive results, proving the potential of the Dairy
Hub concept in terms of reducing food losses and
developing a food reserve.

DELAVAL “HERD NAVIGATOR™ FARM FRANCE

Enhancing animal health, and thus enhancing food
quality. By keeping a close watch of heard health the
farmer can detect early signs of illness in cows, such as
mastitis or ketosis, illness that could cause poor milk
quality. That close watch is made possible using the
Herd Navigator solution. Herd Navigator detects illness
up to three days before any clinical signs are visible,
meaning before the human eye can see it.

TETRA PAK ACQUISITION OF DSS PUTS

TETRA PAK AHEAD IN FILTRATION SYSTEMS
Tetra Pak has strengthened its leadership position in
filtration systems for milk, cheese and whey applica­
tions with the acquisition of DSS, a company specia­
lising in membrane filtration technology. The move
follows the acquisition of US-based Filtration Engi­
neering in late 2012, and further expands the range SIDEL HOTFILL COMBIS ENSURE FOOD SAFETY
of processing solutions available to customers. Juice drinks demand extremely high standards of hygiene
to ensure food safety. The solution for Mexico’s leading
juice bottler Jugos del Valle was to invest in two Sidel hotfill
Combis. An integrated system combines blow moulding,
filling and capping in a single line, which also brings savings
in energy costs, labour and raw materials.

6 TETRA LAVAL 2013/2014

 SIDEL A MAJOR SWITCH TO ASEPTIC SIDEL BREAKTHROUGH TECHNOLOGY
Sidel guided Aujan Industries, the leading MEETS A NEED
supplier of fruit beverages in the Middle East, Consumers’ health awareness is increasing
through the entire process of switching from the market for bottled juices containing fruit
hotfill technology to a new aseptic PET line. pieces in Central Asia. To meet this demand,
As a result, Aujan is meeting increasing con­ JSC GALANZ Bottlers in Kazakhstan chose
sumer demand for drinks with more natural Sidel Matrix hot filler with Integrated Slurry
ingredients and fewer preservatives, and Dosing for a new greenfield plant. This break­
such products now have longer shelf lives. through technology increases product safety
and improves equipment hygiene, which is
vital for this type of drink.

TETRA PAK STATE-OF-THE-ART

FACTORY OPENS IN INDIA
Tetra Pak’s latest world-class factory was
inaugurated at Chakan, India, in May. The
plant is designed to meet the growing de­
mand for Tetra Pak’s processing and pack­
aging solutions across South & Southeast
Asia, and the Middle East. The opening will
further increase Tetra Pak’s presence in the
Indian subcontinent, where the company
has been working since 1997.

DELAVAL TRULY ECOLOGICAL

IN CROATIA
Osatina, including its milking cow farms Ivankovo
and Tomasanci, is a truly ecological company.
The farm is almost self sufficient, recycling silage
manure and plant waste to create bio gas.

DELAVAL INCREASED MILK PRODUCTION IN UKRAINE

Terezine dairy farm in Ukraine has been committed to the environment for many
years. In 2008 the Lipp biogas plant was installed, which produces gas for heating
and generates electricity from manure coming from the dairy farm. More recently,
in 2012, the farm decided to opt for automatic milking systems for their 1,000
cows. The result has been impressive: milk production has increased. In addition,
bacterial seeding milk indicators and the amount of somatic cells has decreased
as well as the number of cases of mastitis.

TETRA LAVAL 2013/2014 7

TETRA LAVAL IN TWO MINUTES
TETRA LAVAL IN TWO MINUTES

The Tetra Laval Group consists of three industry groups, Tetra Pak, Sidel and
DeLaval, all focused on technologies for the efficient production, packaging
and distribution of food.
The head of each industry group has operational management and opera­
tional capital responsibility for their respective industry group and reports directly
to the Tetra Laval Group Board. Tetra Laval International manages the financial
capital of the Group. The Group Board is responsible for the overall strategy of
the Group and for controlling and supervising all of its business operations.
The Chairman ensures the implementation of strategy and policy for the Group.
The Chairman monitors the implementation of Group Board decisions by the
industry groups and Tetra Laval International.

NUMBER OF EMPLOYEES, DECEMBER 2013 NET SALES 2013, IN MIO EURO

Tetra Laval Group 33,895 Tetra Laval Group 13,445

Others 325

Sidel 5,510
Tetra Pak 11,075
Others 10
DeLaval 4,520 Tetra Pak 23,540
Sidel 1,395

DeLaval 965

8 TETRA LAVAL 2013/2014

 Markets served

PROTECTS WHAT’S GOOD

Tetra Pak is the world leader in liquid food processing and packaging. The business of the
company includes much more than the packaging of liquid food products. We also provide
a range of processing and packaging equipment for use with a broad array of products, from
ice cream and cheese to dry foods, fruit, vegetables and pet food. By developing ambient
packaging, which preserves the nutritional value and the taste of products, the distribution
of such food products to consumers has been greatly facilitated.

TETRA PAK ORDER INTAKE BY GEOGRAPHY, 2013 TETRA PAK SALES SPLIT BY MARKET SEGMENT, 2013
Packaging machines and Distribution equipment Of 77,975 million litres of products:

Sub-Sahara Africa 2%
South Europe 7% Other 1.0%
Central & South America 25%
South & Southeast Asia 8% Wine and spirits 2.5%
Food 3.2%
Northeast Asia & Oceania 7%
Liquid dairy products 62.6% Dairy alternatives 5.0%
Central & North Europe 9%
North America 9% Still drinks 8.7%
East Europe &
Greater Middle-East 9% Central Asia 5%
Juices & nectars 17.0%
Greater China 19%

TETRA LAVAL 2013/2014 9

TETRA LAVAL IN TWO MINUTES

Markets served

A BETTER MATCH
Sidel is a leading global provider of PET solutions for liquid packaging. We are also a supplier for glass
and can solutions. We are committed to being the most innovative, responsive and reliable partner,
providing sustainable solutions for the beverage industry. Headquartered in Switzerland, we have production
sites in 13 countries and 30,000 equipment installed in more than 190 nations worldwide. With over
5,500 employees, we provide optimal PET, glass and can packaging solutions for water, soft drinks, milk,
juices, edible oils and alcoholic beverages including beer.
We aim to create value for our customers by giving them A Better Match. This is the tailored solution
that caters for their needs exactly. We do this by offering flexible and reliable production systems that are
easily adaptable to market developments and future technology, supported by value-added services.

SIDEL SPLIT OF EQUIPMENT ORDER INTAKE BY GEOGRAPHY, 2013 SIDEL SPLIT OF EQUIPMENT ORDER INTAKE BY MARKET SEGMENT, 2013

Juices, Nectars, Soft Drinks,

North America 8% Greater Middle East
Isotonics & Teas 14.6%
& Africa 18%
Water 26.2%
Liquid Dairy Products 5.0%
Latin America 22%

Greater China 18%

Beer 17.5%

Europe & Central Asia 18% South East Asia Carbonated Soft Drinks 27.9%
Pacific 16% Other* 8.8%

* Including FHPC (Food, Home and Personal Care) and other alcohol.
 Markets served

WE MAKE SUSTAINABLE FOOD

PRODUCTION POSSIBLE
DeLaval is a full-service supplier to dairy farmers. The company develops, manufactures and markets
equipment and complete systems for milk production and animal husbandry worldwide. Service and sales
of a wide range of accessories are also key aspects of DeLaval’s operations. The company supplies
highly efficient system solutions for milking, herd management, animal traffic control, feeding, cooling,
manure handling, ventilation and energy recovery.

DELAVAL SALES SPLIT BY GEOGRAPHY, 2013 DELAVAL SALES SPLIT BY MARKET SEGMENT, 2013

IMEA 2%

North America 17% Southern Europe 11%

Service & Original Parts 18%

Latin America 5% Cooling 5%

Central Europe 28% Milking 51%

East Asia 9%
Farm supplies 9%
Oceania 4%
RUCAR 5% Hygiene 17%
RUCAR = Russia and
Northern Europe 19% Central Asian Republics
IMEA = Inda, Middle
East & Africa
TETRA LAVAL COMMENTS BY THE CHAIRMAN OF THE BOARD

A solid year despite

unprecedented competition

2013 was another solid year for the a number of new products during the POSITIVE CUSTOMER REAC-
Tetra Laval Group despite unprece- year. Tetra Pak has continually in- TIONS TO NEW PRODUCTS
dented levels of competition in most vested in R&D and the product road- Sidel continued to invest approxi-
markets. Revenues remained at similar map that the company put in place mately five per cent of sales in R&D,
levels to those of 2012: this was mainly some years ago is bearing fruit: up- and the group started to reap the
due to foreign currency exchange effects graded printing technology, new commercial benefits of its efforts.
and slower than expected market de- shapes, formats and closures, and During 2013, Sidel Matrix™ – the latest
velopments, especially in developing other inventions have been rolled out generation of PET bottling equipment
markets. All three industry groups during the past few years and are posi- based on modular platform architec-
made progress in their transformation tively received by customers. Technical ture – was launched. There was early
programmes and therefore took nec- Services enjoyed another year of double-­ positive acceptance in the marketplace;
essary restructuring costs. The industry digit growth as customised solutions Matrix offers some very strong customer
groups also continued to invest in R&D garnered much appreciation from benefits in terms of performance, costs
– in total about €500 million and a customers. Technical Services grew and environmental effects. Sidel is in
number of significant innovative prod- at 11 per cent. the process of applying the modular
ucts were launched. Tetra Pak also made progress with concept to its other products, including
From a market point of view, the their competitiveness programme, labellers, fillers and other equipment
global economy seems to be recovering particularly in accelerating the adjust- to enhance customers’ competitive-
from the recession more slowly than ment of production capacity to the ness. Additional examples of Sidel’s
we had expected. Tetra Laval experi- needs of different local markets. For focus on technology and product de-
enced lower growth in Russia and instance, new production facilities velopment are the aseptic PET line
China than in the previous years of were opened in China and Russia Predis™, which has received very
strong development, but there was during the year. positive feedback in tests by customers.
strong growth in South East Asia. The lightweighting technology helps
Tetra Laval also developed favourably SIDEL – UNDERLYING MARKET reduce the plastic content of a PET
in South America, and the Group GROWTH WILL BE BENEFICIAL bottle, improving environmental per-
benefited from the beginnings of a Sidel was affected by the uncertainty formance and reducing costs and today
recovery in North America. of the global economy and revenue Sidel produces PET blowers with 50
development was flat in 2013. Cus- per cent more capacity in 1/3 of the
TETRA PAK INCREASED REVE- tomers have delayed spending on capi- time compared to a few years ago.
NUES DESPITE COMPETITION tal equipment, a trend which began in
Tetra Pak faced a challenging year the previous year. However, the under­ DELAVAL – THE DEMAND FOR
with intensified competition in many lying growth in the use of PET in the CAPITAL EQUIPMENT STARTED
markets. Despite this, the company liquid packaging solutions market re- TO INCREASE
increased revenues at comparable mains, meaning the variations we see DeLaval also had a challenging year.
rates by 3.5 per cent in 2013. Within are cyclical. During the latter part of Low demand for capital equipment,
Tetra Pak, Processing Solutions the year customers in markets such brought about by low milk prices and
showed strong growth, particularly in as China started to build up capacity contrasting high feed prices, continued
the area of cheese processing. Sales and increased demand for equipment: from 2012 throughout first part of 2013.
grew by 16 per cent. After several this offers promise for the years to come. However, during the second half of the
years of uncertainty customers The low activity in the capital equip- year dairy farmers were much more
started investing in new capital equip- ment market was offset by the strong positive in their market outlook and
ment. Packaging Solutions launched demand for Sidel’s aftermarket prod- started to invest in milking equipment.
ucts and services.

12 TETRA LAVAL 2013/2014

Demand for DeLaval’s Automated
Milking RotaryTM (AMR) increased from
customers with large herds in Europe,
among other markets. Favourable
sales development of Voluntary Milking
SystemTM (VMS) and AMR continued.
For the future, consumption of dairy
products is growing faster than pro-
duction, which indicates there will be
an increase in the capital equipment
market in the years ahead. The low
demand for capital equipment during
the first half of the year was partly
compensated for by the strong de-
mand for DeLaval’s aftermarket prod-
ucts and services. DeLaval’s revenues
were flat due mainly to the impact of
weaker currencies although there
were gains in market share.
DeLaval is the undisputed leader in
the dairy equipment industry. This po-
sition is well supported by its strong
emphasis on R&D within such areas
as automated milking systems, animal
welfare and smart farming. During the
year new products were introduced,
for example the CloverTM liner for im-
proved milking, and the Reduced
Temperature DetergentTM (RTD), a ENSURING FOOD PROTECTION there are uncertainties in the market
patented technology used for clean- – AT THE HEART OF THE GROUP we seem to be slowly emerging from
ing milking systems and bulk tanks. The theme of this report – Ensuring recession. We are in the food and
DeLaval also made progress in its Food Protection – reflects our essen- beverage industry where there is
competitiveness initiative. Manufac- tial mission. At least one-third of all food strong underlying demand, driven by
turing capacity has been adjusted to produced is wasted and the shortage the world’s growing population. Key
the development of local markets: for of food in some parts of the world issues for the Group in 2014 will be,
instance, the company invested €24 means the situation is becoming severe. among others, to continue to advance
million in a Chinese plant which was Tetra Laval contributes to the reduction our transformation programmes to
inaugurated during the year. of food waste in many different ways, improve our competitiveness in the
as well as ensuring food is safe and market; meeting the increasing de-
TETRA LAVAL INTERNATIONAL protected. For instance, Tetra Pak’s mand for more milk production and
– SOLID PERFORMANCE cartons have been developed to pre- handling currency fluctuations in a dili-
Tetra Laval International (TLI) made serve food in an efficient way; DeLaval gent manner. With the commitment of
important contributions to the Group supplies efficient milking systems and our skilful employees and our culture
in many areas. In 2013 for instance, cooling tanks to avoid milk being of delivering results there should be
TLI worked on the accuracy of its fore­ spoiled; and Sidel has developed a good opportunities for another solid
casting to better support the Board in unique aseptic PET technology to performance by the Group in 2014.
decision-making; worked hard on cash better preserve beverages. Allow me to express my gratitude for
management to mitigate currency all our employees´ achievements in 2013.
fluctuations. In addition, TLI supported POSITIVE OUTLOOK
the industry groups in vital assistance We have a positive outlook for 2014 Larry Pillard
for improved competitiveness. and the years to come. Even though

TETRA LAVAL 2013/2014 13

 TETRA LAVAL GROUP BOARD

01. 02. 03.

06. 07. 08.

01. Larry G. Pillard 02. Kirsten Rausing 03. Finn Rausing

Chairman of the Board since 1 January 2003. An alternate Board Member since 1985 and a A non-executive Board Member of the Tetra Pak
Larry Pillard joined the Board as non-executive non-executive Board Member since 1991. Group Board from 1985 to 1989 and of the
Board Member in 2001. He was previously Kirsten Rausing is a Member of the Jockey Tetra Laval Group Board from 1995. Finn
Chief Executive of the Tate & Lyle Group since Club and a Director of the British Bloodstock Rausing, who is the Chairman of the Audit
November 1996. He joined the British based Agency. She is a former Trustee of the Animal Committee of the Tetra Laval Group Board, is
sugar, cereal sweetener and starch company Health Trust and former Director of the British also a Board Member of Alfa Laval AB, EQT
in 1992 as President and Chief Executive Officer National Stud and Jockey Club Estates Ltd. Holdings AB, DeLaval Holding AB and Swede
of A E Staley Manufacturing Company, the In addition, Ms. Rausing is the past Chairman Ship Marine AB.
subsidiary responsible for all starch opera­ of the European Federation of Thoroughbred
tions in North America. Prior to Tate & Lyle Breeders’ Associations (Paris) and of the
he was with Cargill Inc for 23 years. E.F.T.B.A. Veterinary Commission, as well as 08. Dr. Bernd Pischetsrieder
a past Chairman of Thoroughbred Breeders A non-executive Board Member since 1999.
Association of Great Britain. She was appointed Dr. Bernd Pischetsrieder has been Chairman
06. Paul Skinner a Trustee of the newly formed Racing Foun­ of the Board of Management of Volkswagen
A non-executive Board Member since 2005. dation (UK) in 2012; this Foundation will handle AG from 2002 to 2006. He has been Chair­
Paul Skinner was previously a Group Managing the proceeds of the British Government’s man of the Board of Directors of Scania AB,
Director of Royal Dutch Shell plc and Chairman sale of the Totalisator Board. Sweden from 2002 to 2007. He is Chairman
of Rio Tinto plc. He was later Chairman of of the Supervisory Board of Münchener
Infrastructure UK, a division of HM Treasury. Rückversicherungs-Gesellschaft, Aktienge­
He is also a non-executive Director of Standard 07. Dr. Jürgen Weber sellschaft in München.
Chartered plc and Air Liquide S.A. and a Member A non-executive Board Member since 2003.
of the Public Interest Body of Pricewater­ Dr. Jürgen Weber became Chairman of the
houseCoopers LLP. Supervisory Board of Deutsche Lufthansa AG
in June 2003 after having served the company
as Chairman of the Board of Management for
twelve years. He is Chairman of the Supervi­
sory Board of Willy Bogner GmbH & Co. KGaA,
Loyalty Partner GmbH and Hapag Lloyd AG
and Member of the Supervisory board of
Lufthansa Technik, all based in Germany.

14 TETRA LAVAL 2013/2014

04. 05.

A supervisory
board to all
Tetra Laval
units
The three Tetra Laval industry groups
have operations and representatives
09. 10. in more than 170 countries. It is a
decentralised organisation but with
clear rules and guidelines. The frame­
work for Corporate Governance estab­
lishes the Board’s requirements and
expectations for the industry groups,
and communicates governance guide­
lines throughout the organisation.
The Tetra Laval Group Board has six
primary areas of responsibility.

• Development and definition of

overall strategies and policies.
• The appointment and succession
planning of senior management.
• Corporate governance.

04. Jörn Rausing 05. Sir Keith Whitson • Financial and operational control.
A non-executive Board Member of the Tetra A non-executive Board Member since 2005. An Audit Committee and a Remu­
Laval Group Board since 1991 (an alternate Sir Keith Whitson is retired Group Chief Exec­ neration Committee support the
Board Member of the Tetra Pak Group Board utive of HSBC Holdings plc. He also served
since 1985). Jörn Rausing is also a Board as a non-executive Director of the Financial
Board in these functions.
Member of Alfa Laval AB and DeLaval Holding Services Authority in London from 1998 to
AB and of Ocado Ltd. He is the Tetra Laval 2003. During his career with HSBC he worked
• The Board also takes a direct role
Group’s head of Mergers and Acquisitions. in Hong Kong, USA, Germany, Malaysia, in defining financial targets for the
He is also the Chairman of the Remuneration Indonesia and the United Kingdom. Group’s different operations and
Committee of the Tetra Laval Group Board.
for total resource allocation within
10. Lars Renström the industry groups.
09. Jorma Ollila A non-executive Board Member since June 2013.
A non-executive Board Member since January Lars Renström is President and CEO of the The Tetra Laval Group Board sched­
2013. Jorma Ollila is Chairman of Royal Alfa Laval Group since 2004. He has previously
Dutch Shell plc since 2006 and Chairman of held positions as President and CEO of Seco
ules four regular meetings each year
Outokumpu since 2013. He was Chairman of Tools, President and head of Atlas Copco’s Rock and when circumstances require,
the Board of Directors of Nokia 2006-2012, Drilling Tools division and head of Ericsson’s additional meetings are held.
Chairman and CEO, Chairman of the Board Telecom Cables Division. He is currently also
of Directors and Group Executive Board of Chairman of the Board of Assa Abloy AB.
Nokia Corporation 1999-2006, President and
CEO, Chairman of the Group Executive Board
of Nokia Corporation 1992-1999. He is Vice
Chairman of the Board of Directors of Otava
Books and Magazines Group and Member of
the Board of Directors of the University of
Helsinki, Chairman of the Boards of Directors
and the Supervisory Boards of the Research
Institute of the Finnish Economy ETLA and
Finnish Business and Policy Forum EVA.

TETRA LAVAL 2013/2014 15

TETRA LAVAL CORPORATE STORY

Tetra Laval relief effort

in the Philippines
When the Philippines was hit by a typhoon on November 8, 2013, the effects were devastating: 6,190
people reported killed and 1,785 thought to be missing. The Board of Tetra Laval decided to make a
contribution of USD 5 million to be used by the Red Cross in its relief efforts and to secure supply and
distribution of milk and water to those affected.

Typhoon Haiyan, known locally as the affected areas, with allocations to

Yolanda, had far-reaching effects on Tetra Pak and Sidel. Tetra Pak sup-
the country. For instance, along the plied and distributed UHT milk, and
north-west trajectory of the typhoon Sidel did the same for water pack-
more than 14 million people across aged in PET bottles.
nine of the poorest provinces were “Working with the Philippine Red
affected. More than 1.1 million houses Cross and Children’s Hour, 11 areas
were destroyed. in Visayas were identified for UHT milk
The UN, national government, local distribution. The first batch was dis-
governments, NGOs and relief teams tributed in December, to a tent city
from more than 20 countries launched housing a number of evacuated typhoon
a large humanitarian aid programme. victims in Manila, says Gaine Clarke,
Despite this effort and local communi- Managing Director for Tetra Pak
ties’ recovery support, the disaster Malaysia, Singapore and Philippines.
was so severe that it will take several “We expect all 1.2 million packs to
years for the devastated communities have been distributed by the end of
to recover. At first, it was difficult to March. The milk packs are estimated
get aid to many affected areas due to to reach almost 46,000 families in the
the destruction of the infrastructure. affected areas,” Gaine Clarke concludes.
But gradually the situation has improved.
The Tetra Laval donation was used
by the Red Cross for its relief work in

FACTS

OTHER DONATIONS BY TETRA LAVAL to Caritas for a project in Kenya. Caritas nization undertakes and delivers effective
In 2013 Tetra Laval contributed to other relief has a heartfelt commitment to analyse and drug prevention programmes throughout the
projects as well. 250,000 euro was donated fight poverty and social exclusion as well world. In addition, Tetra Pak is partner to
to Hand-in-Hand, the international non-profit as to promote true integral human devel­ FoodBank in Australia – a non-profit orga­
organization that aims to reduce poverty through opment, social justice and sustainable social nization which acts as a pantry to the char­
job creation. Hand-in-Hand originates from systems. ities and community groups who feed the
projects in India, and includes social mobili­ hungry. Foodbank is a conduit between
Tetra Laval is also a partner to Mentor, the
zation and business training with access to the food industry’s surplus food and the
leading international NGO voice of drug use
micro-credits with the purpose of creating new welfare sector’s need.
and substance abuse prevention. The orga­
jobs. Tetra Laval also donated 150,000 euro

16 TETRA LAVAL 2013/2014

TETRA PAK
Tetra Pak enables producers all over the world to achieve high standards of food safety
thanks to its unique knowledge and experience in processing and packaging. Our company
offers food manufacturers packaging and distribution options that ensure beverage and
food­stuffs remain intact and safe throughout the journey from producer to table.
High-quality packaging, transport and storage mean much potential waste can be avoided.
TETRA PAK IN TWO MINUTES

PRODUCTS
At Tetra Pak we specialise in providing complete solutions for Our products are divided into several categories:
the processing, packaging and distribution of food products. • Packages
Our products are specifically designed to be as economical • Processing equipment
with resources as possible. Dairy products, juices and nectars, • Filling machines
ice cream, cheese, dry foods, fruits, vegetables and pet food • Distribution equipment
are examples of products that can be processed or packaged • Service products
using Tetra Pak lines. We focus on keeping the consumption
of all raw materials and energy to a minimum during both the
manufacturing process and distribution.

R&D
Our customers need faster, better and cheaper developments to reduce their operational costs and to increase
performance in order to remain competitive. We invest in technology and new products in response to customer
needs, consumer preference and market dynamics.

COUNTRIES SERVED NET SALES 2013 NUMBER OF PLANTS R&D UNITS

>175 11,075 40 11 MILLION EURO

FOOD FOR DEVELOPMENT

For more than 50 years, we have worked with customers, they often act as a catalyst for agricultural and economic
governments, international and community-based organisa­ development.
tions and farmers to provide milk and other nutritious drinks In 2013, Tetra Pak expanded its support for school feeding
in schools around the world. In 2013, the Tetra Laval Food for programmes in a number of different countries, including
Development network supported the delivery of 8.3 billion Ecuador, Latvia, Myanmar, Russia, Turkey and Uganda.
Tetra Pak packages of milk and other nutritious drinks to 64 School feeding programmes play an important part in our
million children in schools in more than 60 countries. business model and our commitment to dairy customers
School feeding programmes can have a considerable around the world to make food safe and available everywhere.
impact on the local community and economy. Not only do We expect to see a further expansion of these programmes
they improve the health and learning capabilities of children, in the coming years.

18 TETRA LAVAL 2013/2014

MARKETS & CUSTOMERS ENVIRONMENTAL SUSTAINABILITY
Tetra Pak operates in more than 170 countries We are committed to running our business in an
around the globe, employing almost 23,500 people. environmentally sound and sustainable way. We set
Our customers come from different parts of the food goals for continuous improvement in our development,
industry, such as the dairy, cheese, ice cream, beverage sourcing, manufacturing, and transportation activities.
and prepared food sectors. As part of that commitment, we take a long-term and
lifecycle view, continually improving environmental
performance, communicating openly with our stake­
holders and reporting regularly on our performance.

TETRA PAK SALES 2008 – 2013

12,000 M EURO
TRAINING CENTRES NUMBER OF EMPLOYEES DECEMBER 2013

16 23,540
10,000

8,000

6,000

4,000

2,000

0
2008 2009 2010 2011 2012 2013

GLOBAL COMPACT
We are a member of the UN Global compact, which brings together companies, UN agencies,
labour and civil society to support ten principles in the areas of human rights, labour, the environ­
ment and anti-corruption. We also cooperate with NGOs such as WWF and FSC on forestry and
climate change issues, and GAIN, Global Alliance for Improved Nutrition.

OUR BRAND
Since operation began in 1952, the Tetra Pak brand has grown to become a powerful
global asset, delivering solid value to both our company and our customers.
Our motto, PROTECTS WHAT’S GOOD, reflects the principles upon which we built our
business and underpins our Vision, our Mission and our Core Values. It is a commitment
that goes beyond the contents of the package, recognising that we also play a role in
shaping better futures for our customers, our company, our employees, our suppliers
and the communities which we serve.

TETRA LAVAL 2013/2014 19

TETRA PAK HIGHLIGHTS 2013/2014

01. 07.

05.

10.

03.

07.

06.

08.

20 TETRA LAVAL 2013/2014

2013/2014
01. MILK WITH QUINOA IN ECUADOR UHT cream for the foodservice sector, 08. FSC™ LABEL ON TETRA PAK
During 2013, Tetra Pak Ecuador and the doubling Fonterra’s UHT production PACKAGES IN 53 COUNTRIES
Food for Development Office supported capacity. The lines should be operational In 2013, the number of countries selling
the Government of Ecuador to develop by mid-2014. products in Tetra Pak packages bearing
an innovative nutritious drink – Milk with the FSC label increased significantly, up
Quinoa. The fortified beverage is based 05. NEW WHEY FILTRATION SYSTEM by almost 40 per cent to more than 50.
TURNS WASTE INTO INCOME FSC certification is aimed at achieving
on the popular and highly nutritious local
cereal, quinoa, together with milk. Milk The Tetra Alcross® RO Lite filtration system environmentally appropriate, socially
with Quinoa is now being used in a school helps small and medium-sized dairies beneficial and economically viable forest
milk programme in Ecuador and has been extract value from whey. A common management while bringing added-value
received very well by the children and by-product of cheese-making, whey is to customers and retailers.
parents. It is also available in a variety often dumped as waste. It is only valu­
of flavours for the children to enjoy. able when concentrated, but the filtration 09. TETRA BRIK® ASEPTIC 1000
technology needed to achieve this has EDGE WINS A WORLDSTAR AWARD
02. BEANS TO TASTE: traditionally been highly customised and Tetra Brik Aseptic 1000 Edge with Light­
UNDERSTANDING BRAZILIAN too expensive for most small and medium-­ CapTM 30 picked up a prestigious World­
CONSUMERS sized dairies. Tetra Alcross RO Lite pro­ Star Award, with judges praising its ease of
Brazilian consumers enjoy beans, but they vides a standardised filtration solution handling, pouring, opening and reclosing.
are time-consuming to prepare. Tetra Pak available in five different sizes, which are In addition, the environmental credentials,
has provided a solution: high-quality easy to install, and cost significantly less graphic design potential and the ingenuity
beans, cooked and packed only in water than customised alternatives. of construction were all cited by the awards
in Tetra Recart® packages. Sold under the panel as major benefits of the package.
brand name ‘Beans Ready to Season’, 06. MEIJI’S BULGARIA DRINK
the product has been highly successful, YOGURT LINE TAKES ON A 10. SCHOOL MILK IN CHINA
NEW SHAPE
saving consumers time but allowing them Through 2013, every day in China almost
to prepare the beans to their family’s Tetra Pak Japan’s customer Meiji has 14 million school children received milk in
own special taste. re-launched its yogurt brand Bulgaria in Tetra Pak packages. Government commit­
Tetra Top® family- size cartons. The drink ment and support is the main driver be­
03. TETRA PAK HONOURED yogurt was previously packed in gable hind the growth of the country’s school
WITH DUPONT AWARD top packages. With a convenient cap and milk programme. Aseptic packaging was
In May last year, Tetra Pak received the eye-catching design, the Tetra Top carton chosen as the preferred solution for milk
DuPont Continuing Innovation Award, in brings a breath of fresh air to the Japanese and other nutritious drinks in schools due
recognition of the company’s consistent chilled market for family-size packages. to its convenience and safety advantages.
leadership in advancing the design, func­
tionality and efficiency of packaging 07. ENGAGING CAMPAIGN HIGH-
LIGHTS RENEWABLE MATERIALS
during the past 25 years.
In June, Tetra Pak launched a global in­
04. UHT LINES HELP FONTERRA formation campaign to put the spotlight
DOUBLE CAPACITY on renewable materials and the role they
Fonterra, one of the global leaders in can play in helping to protect the planet.
dairy foods, has chosen state-of-the-art The ‘Pack that Grows Back’ campaign
Tetra Pak processing and packaging took an interactive approach to highlight­
equipment for its UHT greenfield plant in ing why renewable materials are so im­
Waitoa, New Zealand. The new plant will portant for the environment – raising
contain five UHT lines to produce a range awareness of a topic that is often misun­
of products including UHT white milk and derstood by consumers and media.

TETRA LAVAL 2013/2014 21

TETRA PAK COMMENTS BY THE CEO

Solid performance with growth

in all areas of our business
Once again in 2013, the combination 2012 on the back of 580 new filling more than 178 billion packs, this was
of strong competition and soft econo- machines deliveries, equivalent to a lower than expectations, with only
mies in many markets around the 20 billion pack capacity installed. one of our 10 clusters, Greater China,
globe created a tough business envi- beating its target volumes. Solid demand
ronment for Tetra Pak®. SOLID GAINS BY TECHNICAL at the start of the year fell away dramat-
But like in previous years, our em- SERVICE ically during summer and into autumn, as
ployees responded to the challenge, Technical Service also reported solid a string of unrelated events, including
helping us to exceed overall expecta- gains, with net sales up 11 per cent major currency declines in several key
tions, both in terms of sales growth year-on-year, exceeding the growth rate emerging economies, and a raw milk
and underlying profitability. achieved in 2012 and beating the 2013 shortage in China, hit sales in a number
The group achieved a 3.5 per cent target. Service contracts accounted of our growth markets. On a positive
increase compared with 2012, reflect- for almost 25 per cent of the total note, the year finished strongly, with
ing growth in all areas of our busi- business in this area, up from 20 per monthly volumes in December topping
ness. Although year-on-year sales fell cent in 2012, as a growing number of 16 billion packs for the first time in the
marginally when based on prevailing our customers recognised the value company’s history.
rates, on a like-for-like basis. From a to be derived in terms of lower oper-
geographic perspective, with the ex- ating costs and improved operational STRONG DEVELOPMENT BY
ception of Europe, where industry performance. Operational cost guar- PROCESSING SOLUTIONS
fundamentals remain weak, net sales antees, which the company launched Our processing solutions business
were up year-on-year in all clusters, in 2012, also gathered momentum, had a particularly strong 12 months,
with particular strength in South & with seven new companies signing with net sales climbing 16 per cent to
Southeast Asia, which reported double-­ contracts during the year, including touch €1.5 billion. Excluding acquisi-
digit growth. some of our largest customers. tions, growth in Processing was 13
per cent, reflecting healthy increases
ANOTHER GOOD YEAR FOR TOUGHER CONDITIONS FOR in technical sales & service, which
CAPITAL EQUIPMENT PACKAGING MATERIAL climbed 15 per cent year-on-year, and
In Packaging, our capital equipment By contrast, although packaging solid gains in new equipment sales
business had another good year, with material volumes increased by around within the beverage and prepared
net sales climbing 15 per cent from 3 per cent compared with 2012, to food categories, up 19 per cent and

From a geographic perspective, with the exception of Europe, where

industry fundamentals remain weak, net sales were up year-on-year in
all clusters, with particular strength in South & Southeast Asia, which
reported double-digit growth.

22 TETRA LAVAL 2013/2014

15 per cent respectively. And that
strength looks set to continue, with
order intake at the end of 2013 stand-
ing at around €1.1 billion, 10 per cent
higher than at the end of 2012.
The year also saw our processing
business consolidate its position as
market leader in filtration systems for
milk, cheese and whey applications, with
September’s acquisition of DSS Silke-
borg, a specialist membrane filtration
technology company based in Denmark.
This follows the 2012 acquisition of
Filtration Engineering, and provides
Tetra Pak with important in-house
expertise in areas such as reverse
osmosis, nano-filtration, ultra-filtration
and micro-filtration. The business is
now focused on applying and devel-
oping these technologies across a
range of different Processing-related
applications.

MORE INTENSE COMPETITION

On the competitive front, the challenge to
our packaging material business areas of our portfolio, looking beyond 5 per cent, falling from 16.6 per cent
intensified during 2013. Plastics manu­ Tetra Brik® to other package formats. of net sales in 2012 to 15.4 per cent
facturers made further improvements in 2013. This tremendous achievement
in the efficiency and performance of their SHARPENED OUR was made possible by the focused
packaging systems, with the introduc- COMPETITIVE EDGE effort, discipline and professionalism
tion of a number of new technologies In response, we continued to sharpen of employees across the entire organ-
designed to deliver greater product our competitive edge, and towards isation. And that drive will continue,
flexibility and enhance differentiation, the end of the year launched a com- as we seek new ways to strengthen
whilst also reducing cost. pany-wide programme aimed at help- the company’s competitiveness, while
Non-system suppliers (NSS) of carton ing customers properly compare the continuing to deliver the best possible
packaging firmed their toe-hold in a full monetary value of Tetra Pak’s service to customers.
few key geographies, most notably products and services against offers
Europe and China, where NSS total from our competitors. At the same PACKAGING: ADVANCED THE
capacity was estimated to have time, we also took significant steps to PRODUCT FORMAT PORTFOLIO
reached 7.4 billion and 11 billion stan- cut costs by improving the efficiency On the other side of the competitive-
dard packs respectively at year end. of our operations. ness coin, within our Packaging busi-
Furthermore, a number of these com- Overall, the company’s non-allocated ness we saw further success in the
panies are now diversifying into new costs for the year were down almost development and deployment of our

TETRA LAVAL 2013/2014 23

TETRA PAK COMMENTS BY THE CEO

advanced format portfolio. This range MORE THAN 24 PER CENT costs and strengthening our value
of shapes, formats and openings, which RECYCLED proposition to customers.
have been designed specifically to On the environmental front, our global
meet our customers’ needs for func- effort to increase the quantity of used PROTECT WHAT’S GOOD
tionality and differentiation, accounted cartons being recycled made good Our company brand is founded on a
for around 25 per cent of total package progress, rising by 1.4 percentage promise: PROTECT WHAT’S GOOD.
volumes in 2013; up from 21 per cent points, to more than 24 per cent of At its core, that’s about protecting
in 2012. Tetra Pak packages sold worldwide. food … which has long lain at the
The year saw particular traction in We also advanced our renewability very heart of our business agenda.
sales of Tetra Prisma® Aseptic portion agenda, with 20 per cent more Tetra Pak But it goes further: it is also about
packs, where volumes climbed 35 per packages now bearing the Forestry protecting people: our employees, the
cent compared with 2012 to reach Stewardship Council label than at the communities that we serve, and society
5.6 billion packs worldwide, and of end of 2012, and annual deployment as a whole. And it is about protecting
Tetra Brik® Aseptic Edge 1 litre, which of bio-based high-density polyethylene futures; by developing the products
were up 75 per cent to 2.4 billion. caps more than doubled. and services that will support the future
Sales of HeliCapTM 27, the new large- 2013 also marked an important re- business growth of our customers; by
format opening which we launched in newability first when Tetra Pak signed acting and operating in ways that best
2012, had a particularly strong year, an agreement with Braskem, the largest protect the future of our planet; and by
with annual volumes now above 2 thermoplastic resins producer in the delivering outstanding performance at
billion caps and more than 200 pro- Americas, to supply low-density poly- lower comparable cost than anyone else
duction units delivered to customers ethylene (LDPE) made from sugar in the industry, to ensure the future
worldwide. cane to its packaging material facto- success of Tetra Pak
ries in Brazil. The bio-based LDPE will
PROCESSING: NEW SUCCESS- be used for all Tetra Pak packages Dennis Jönsson
FUL PRODUCT LAUNCHES produced in Brazil, lifting renewable
In Processing, our strategy of devel- content to as much as 82 per cent.
oping scaled-down versions of our If successful, this trial project will be
market-leading technologies saw further extended to other geographies.
success, with the launch of Tetra Alcross®
RO Lite, Tetra Therm® Aseptic Flex 1 2014 – CONTINUOUS IMPLE-
and Tetra Therm Aseptic Drink 1. MENTATION OF STRATEGY 2020
These products have proved particu- As we move through 2014, we will
larly popular with customers in emerg- further accelerate implementation of
ing markets, and with fledgling busi- Strategy 2020, with continued emphasis
nesses seeking robust and reliable on improving operational efficiency,
processing solutions at relatively low prioritising investments, reducing
investment cost.

As we move through 2014, we will further accelerate implementation of

Strategy 2020, with continued emphasis on improving operational efficiency,
prioritising investments, reducing costs and strengthening our value
proposition to customers.

24 TETRA LAVAL 2013/2014

 TETRA PAK GROUP MANAGEMENT TEAM

01.

02. 03. 04.

05. 06. 07.

08.

 ennis Jönsson
01. D
President & CEO
 ils Björkman
02. N
Commercial Operations
03. B
 ruce Burrows
Finance & Business Transformation
04. M
 ichael Grosse
Development & Service Operations
 im High
05. T
Processing Solutions
09.
06. C
 hris Huntley
Corporate Communications
07. A
 ndreas Karl
Human Resources
08. P
 ål Lunning
General Counsel
09. S
 am Strömerstén
Supply Chain Operations

TETRA LAVAL 2013/2014 25

TETRA PAK STRATEGIC DIRECTIONS

VISION

We commit to making food safe and available, everywhere

MISSION
We work for and with our customers our understanding of consumer needs We believe in responsible industry
to provide preferred processing and and our relationships with suppliers to leadership, creating profitable growth
packaging solutions for food. deliver these solutions, wherever and in harmony with environmental sustain­
We apply our commitment to innovation, whenever food is consumed. ability and good corporate citizenship.

CORE VALUES
There are four values that guide the We dare to lead with a focus beyond interests of Tetra Pak and our cus­
company’s 23,000-plus employees tomorrow and take opportunities to tomers. We take responsibility for our
in their day-to-day business: learn and grow. actions and contribute to the commu­
nities in which we operate.
• Customer Focus & Long-Term View
Quality & Innovation
• Quality & Innovation
We do not compromise on quality. Partnership & Fun
• Freedom & Responsibility
We relentlessly drive for better, fit-for- We respect and rely on one another
• Partnership & Fun
purpose solutions and breakthrough and all our stakeholders for excep­
innovations. tional results. We enjoy working to­
Customer Focus & Long Term
gether and celebrating our achieve­
View
Freedom & Responsibility ments.
We ensure we add value and inspire
We have the freedom to take the ini­
our customers because we recog­
tiative and act decisively in the best
nise that they come to us by choice.

26 TETRA LAVAL 2013/2014

STRATEGIC PRIORITIES

ENVIRONMENT GROWTH INNOVATION PERFORMANCE

ORGANISATION

PRESIDENT & CEO

COMMUNICATIONS FINANCE

LEGAL AFFAIRS HUMAN RESOURCES

Commercial Development & Supply Chain Processing

Operations Service Operations Operations Systems

TETRA LAVAL 2013/2014 27

TETRA PAK MARKET

The Tetra Pak market

THE PACKAGING MARKET THE PROCESSING MARKET • E
 xtensive urbanisation: by 2030
Last year, consumers across the world The processing market for Tetra Pak’s 60 per cent of all people will live in
purchased around 1,200 billion litres of equipment and solutions consists of cities and 54 per cent of the popu-
packaged liquid food, an increase of the following categories; dairy, beverage, lation will live in Asia.
approximately 3.5 per cent compared cheese, ice cream, prepared food and • Thirty somethings: 34 years old will
with 2012. Of the total volume sold, cosmetics. Within these categories be the average age of a person living
water accounted for around 26 per cent, Tetra Pak provides processing lines in 2030, and there will be 480 million
carbonated soft drinks for 18 per cent, including equipment, engineering, single person households.
and liquid dairy products for around design, installation, project manage-
18 per cent. ment and services. CHANGING ECONOMY
Tetra Pak’s own packaging material Tetra Pak deals with multinational • Developing markets are rapidly be-
sales last year totalled slightly more and local food producers of various coming more sophisticated, which
than 178 billion cartons, or 78 billion sizes, supplying many of them with brings new challenges and oppor-
litres equivalent, up 3 per cent and integrated processing and packaging tunities
1 per cent respectively on 2012. Today, solutions. The company’s largest geo-
Tetra Pak cartons account for around graphical markets for Processing • B
 y 2021 there will be 2.7 billion
7 per cent of the global packaged liquid Solutions are China, the USA, Brazil, middle class consumers, 30–40
food market. Russia and Germany. per cent will come from China.
Tetra Pak’s packaging customers • G
 lobalisation and the redistribution
are involved in many different sectors KEY MARKET DRIVERS of economic power will continue.
of the food industry, including dairy, soft The key drivers of change in the pack­
drinks, soy products, wine, juices and aging and processing markets are: CHANGING ENVIRONMENT
prepared food. They are made up of a • Demographics • Important natural resources are
variety of international, regional and • Economy under threat, including a scarcity of
local companies. • Environment/sustainability. water and depletion of forests.
Among the largest geographical
• S
 tricter legislation and taxes related
markets for Packaging Solutions at CHANGING DEMOGRAPHICS
to protecting the environment are
Tetra Pak are China, Brazil, Russia, • Continuous population growth: by
being introduced across the globe.
Iberia, the USA and Mexico. 2030, the global population will be
8.4 billion people.

TOP TEN MARKETS FILLING MACHINES IN PRODUCTION DISTRIBUTION EQUIPMENT IN

IN PACKAGING BY GEOGRAPHY, 2013 PRODUCTION BY GEOGRAPHY, 2013
Based on 178 billion packages sold in 2013 Total 8,825 Total 18,331

1. CHINA Central & South America Central & South America

2. BRAZIL Central & North Europe Central & North Europe
3. USA East Europe & Central Asia East Europe & Central Asia
4. RUSSIAN FEDERATION Greater China Greater China
5. MEXICO Greater Middle East Greater Middle East
6. THAILAND North America North America
7. JAPAN Northeast Asia & Oceania Northeast Asia & Oceania
8. SPAIN South & Southeast Asia South & Southeast Asia
9. PAKISTAN South Europe South Europe
10. VIETNAM Sub-Sahara Africa Sub-Sahara Africa

28 TETRA LAVAL 2013/2014

• E
 nvironmental innovations con- • T
 he rising demand for food safety, when they do something that is not
tinue, with a focus on reducing the product quality and nutritional environmentally friendly; yet they are
environmental footprint. value, driven by authenticity and reluctant to pay more or compromise
health concerns. on quality. Overwhelmingly, they expect
PACKAGING INDUSTRY companies and institutions to take the
MEGATRENDS CONSUMER TRENDS initiative to help them be more ‘green’.
These changes have direct implications Analyzing consumer attitudes, be-
for the food packaging and processing haviour and demands is critical for the 24/7 LIFESTYLE
value chain. Tetra Pak has identified success of the packaging industry. Consumers are constantly connected
six megatrends which will affect the Some of the key consumer trends with instant access to everyone, and
business environment for the packaging that we see in markets across the everything. They increasingly expect
industry during the next decade: globe today are: easy, simple, and convenient solutions
• T
 he opening up of the packaging to simplify their life and provide instant
industry market; with new business FOOD FOR HEALTH gratification.
models and more packaging solu- Consumers are increasingly heath Food & drink consumption on-the-go
tions. conscious and focus more on preven- is very much a feature of this way of life.
tion. They understand the importance
• T
 he increasing scarcity of usable
of a healthy diet on overall wellbeing and CONSCIOUS SPENDING
natural resources and land, coupled
they are either planning to or trying to The post-recessionary mindset of
with the rising demand for food
keep fit. consumers is value-driven and prag-
packaging; bringing higher costs and
Consumers read more nutritional matic; risk-averse consumers are
a sharper focus on waste reduction.
information on product packaging to looking to “buy smart,” reading labels
• T
 he acceleration of environmental help make food and drink choices. more to make informed decisions,
innovations for the purpose of posi- and increasingly opting for trusted,
tioning and differentiation. SAFE CHOICE established brands that offer them
• T
 he increasing importance of prod- Consumers seek reassurance through necessary reassurance.
uct differentiation (formulations, trusted brands, especially in developing
textures, ingredients, etc.), package countries, but also through key product Sources: Global Consumer Trends 2014;Tetra Pak.

differentiation (sizes, shapes, materials, information related to the safety of the

etc.) and complete product informa- product, such as origin and how it
tion, driven by consumer demand. was made.

• T
 he ever-greater strength of the GREEN WORRIERS
modern retailers and the continued Consumers worry about the environ-
consolidation of food manufacturers. ment, and increasingly feel guilty

TOP TEN MARKETS BRANDED PROCESSING UNITS TETRA PAK PROCESSING

IN PROCESSING DELIVERED BY GEOGRAPHY, 2013 SOLUTIONS ORDER INTAKE
Total Processing net sales 1.446 million € of 2.053 units BY CATEGORY, 2013

1. USA Central & South America

2. CHINA Central & North Europe Dairy: 40.0%
3. BRAZIL East Europe & Central Asia Other: 4.5%
Cosmetics: 1.5%
4. NEW ZEALAND Greater China
Cheese: 16.0%
5. RUSSIA Greater Middle East
6. NETHERLANDS North America
Ice Cream: 6.5%
7. GERMANY Northeast Asia & Oceania
8. FRANCE South & Southeast Asia
Prepared Food: 15.0%
9. ARGENTINA South Europe
10. SPAIN Sub-Sahara Africa Beverage: 16.5%

TETRA LAVAL 2013/2014 29

TETRA PAK CUSTOMERS

Tetra Pak helps build the world’s

most advanced dairy plant in Vietnam
Tetra Pak Vietnam and Vinamilk, the country’s leading dairy manufacturer, have inaugurated
the world’s most innovative liquid dairy plant. The Vietnam Milk Factory crosses new frontiers
in automation and integration.

To meet the rapidly growing demand SOLID FOUNDATION TO BE A

for dairy products, Vinamilk has in- WORLD-CLASS DAIRY
vested some $110 million in a new The focal point of the new facility, in-
factory on a 20 hectare site in Binh deed the very heart of its operations,
Duong Province. With an annual is Tetra PlantMaster, a customised
capacity of 400 million litres of milk in solution for plant integration and auto-
its first phase, the factory features mation that controls the entire pro-
some of Tetra Pak’s most advanced duction from processing to packaging
technologies, bringing significant and logistics. This includes functional-
benefits in terms of both environmental ities for quality control, production re-
performance and cost. porting and recipe management, all
integrated with Vinamilk’s own Enter-
CLOSE COLLABORATION FOR prise Resource Planning software
OPTIMAL SOLUTIONS systems, providing efficient, safe pro-
“From our first meeting, Vinamilk duction with full traceability through
made clear they wanted outstanding the entire value chain.
service, premium quality and the very After the inauguration, Mai Kiêu
latest in processing and packaging Liên, Vinamilk’s Chairwoman and
technology,” said John Koch, Project General Director, praised the facility,
Sales Manager with Global Projects saying: “Vinamilk’s mission is to pro-
at Tetra Pak. vide world-class quality milk products
The company also wanted to en- at an affordable price. This new plant
sure that the new plant met Vinamilk’s has laid a solid foundation for Vinamilk
strong environmental standards, with to achieve our goals and become one
a sharp focus on minimising the con- of the world’s top 50 dairies with over
sumption of energy and water, while $3billion in revenues by 2017.”
ensuring the most efficient use possi- Bert Jan Post, Managing Director of
ble of raw materials in order to elimi- Tetra Pak Vietnam, added: “Thanks to
nate waste. Tetra Pak’s automation solutions, all of
“Achieving those expectations the individual machines are working
meant working closely with the Vinamilk together ‘as one’ to deliver optimal
team every step of the way, jointly performance, with factory-wide inte-
designing a state-of-the-art facility gration ensuring high levels of efficiency
that will meet their business needs and uncompromising food safety.”
long into the future.”

30 TETRA LAVAL 2013/2014

A major relaunch success
in the Chinese market
The relaunch by Chinese dairy, Bright, of its premium yoghurt Mosili’an* in a Tetra Prisma® Aseptic package
in 2010 is one of the company’s greater-ever commercial success stories. Just three years after the first
packs appeared on shelves, Mosili’an accounts for ten per cent of China’s total yoghurt market, and it is the
first product in Bright’s portfolio to achieve annual sales of more than 1 billion yuan (120 million euro).

Bright, one of China’s top three dairy

producers, is a long-time partner of
Tetra Pak. So when the company’s
newly launched yoghurt brand, Mosi-
li’an, failed to gain meaningful traction
with consumers, they turned to Tetra Pak
to help revive the fledgling brand.
Mosili’an was initially launched in
2009 in a traditional plastic cup. And
like all yoghurt sold in China at that
time, it was chilled.
What Tetra Pak proposed, and Bright
quickly bought in to, was not just to
change the packaging, but to change
the entire Chinese yoghurt industry.

HUGE UNTAPPED MARKET

The two companies realised that the and finally decided on Tetra Prisma Indeed, the combination of the ex-
traditional chilled distribution of yoghurt Aseptic 200 ml, incorporating a metal- ceptional yoghurt drink and innovative
worked well for urban markets and at- lised film. The subsequent development, packaging design enabled Bright to
home users, but left a huge untapped involving both local and global teams position Mosili’an as a premium product
market, most notably in on-the-go at Tetra Pak, had to overcome a number and price it accordingly, delivering
consumption. So they switched the of challenges, not least related to en- much better margins than had previ-
brand to ambient – extending the shelf suring on-the-go functionality for a ously been achieved. By the end of
life to five months and opening up a high viscosity product. The yoghurt 2013, Bright had more than 30 lines
whole new category of consumers. proved extremely difficult to drink through packing Mosili’an in Tetra Prisma
Tetra Pak and Bright experimented standard size straws, so a larger diam- Aseptic 200 ml.
with various packaging alternatives, eter was needed – requiring a larger-­ “The product has taken off beyond
sized hole in the package, and a great any of our expectations - it is a remark­
deal of package re-design and re-en- able success story,” says Betty Zi, the
gineering. Bright Key Account Manager with
Tetra Pak China.
INNOVATIVE BOTH IN PRODUCT “It’s created a brand new category
AND PACKAGING strongly linked to Tetra Prisma Aseptic.
After the launch it quickly became Bright’s success is attracting more
apparent that the choice of package players to this market and we’re looking
was spot on in terms of size, appear- forward to more growth in the future,”
ance and ease of use. concludes Betty Zi.

* Mosili’an is named after the Bulgarian ‘longevity

village’ – the origin of its healthy probiotics. TETRA LAVAL 2013/2014 31
TETRA PAK TECHNOLOGY

Long experience in all

aspects of food safety
Tetra Pak has extensive experience in working on food safety and has developed many capabilities
in this area. From its broad range of cutting-edge processing and packaging technologies, to its
state-of-the-art food safety laboratories in Stuttgart, Germany, the company continues to drive an
agenda that is sharply focused on its vision: to make food safe and available everywhere.

In 1961, Tetra Pak unveiled the first tinues to lie at the very core of their media such as water, air and steam
ever aseptic filling machine. It was a business, and remains the focus of by, among other measures, making
technology that would revolutionise the much development and improvement. sure that these systems are designed
food production industry, and estab- “For example, we have developed in cleanable way.”
lish the company as a leading player an entire range of special aseptic Of course, every piece of processing
in the on-going quest for technologies components – as well as barriers of and packaging equipment is designed
that would help safeguard food. steam, nitrogen or sterile air – to ensure with safety in mind, with all components
Half a century later, the company integrity, product quality and product and materials food contact certified.
can look back on many more food safety,” says Yvonne Andreasson, Indeed, in the case of highly sensitive
safety milestones and innovations. Director Portfolio management Pro- products such as baby foods, pro-
And the technology that first set them cessing Solutions. “It is also important duction solutions are close to pharma­
apart, aseptic food production, con- to guarantee safe service ceutical standards, with barriers and

32 TETRA LAVAL 2013/2014

controlled hygienic zones to guarantee programmes. This advice, along with European and global health organiza-
process integrity. a competence development programme tions and authorities, including the
to improve staff awareness, helps Food and Drug Administration in the
WORLD-CLASS LABS IN GERMANY minimise or eliminate the risk of future USA. This is not merely to keep up
Underpinning Tetra Pak’s food safety such issues. with legislation, but to present find-
agenda is a small, world-class food ings from practical experience to the
science laboratory in Stuttgart, Germany. COLLABORATION WITH UNI- authorities, which can influence how
“At these labs, exhaustive tests are VERSITIES AND AUTHORITIES that legislation is formulated and im-
performed on the many materials used To stay at the forefront of food safety plemented.
in various types of packaging to ensure development, the laboratories collab- “By staying on top of what’s
safe and suitable packages for the very orate and exchange knowledge with happening today, we can help our
broad range of foods they might be leading universities, gaining insight customers meet the demands of
used for,” says Dr Gabi Pieper, Director, into the very latest academic research. tomorrow,” concludes Gabi Pieper.
Food Packaging Safety and Interaction. The labs also collaborate with various
The findings can help food producers
avoid unsuitable combinations.
The lab also carries out extensive
food testing, for example, as part of
the analysis offered to Tetra Pak’s
customers in the event of a food
safety issue.
Tetra Pak goes beyond providing
“By staying on top of what’s happening
fast and reliable support. After the today, we can help our customers meet
analysis, the company makes sug-
gestions and recommendations for the demands of tomorrow”
modifications to the food producer’s
quality control and quality assurance

TETRA LAVAL 2013/2014 33

TETRA PAK TECHNOLOGY

Food safety
– the number one priority
For consumers, food safety is simply about being able to trust what you eat. For food producers, meeting
that seemingly simple requirement involves all manner of checks, controls and containments. Today,
food safety is the industry’s number one priority and an area where Tetra Pak’s insight and proven track
record are bringing very real benefits to our customers.

For Tetra Pak, the starting point for safe the operation. Automation and inte- sampling. From that point forward,
food production is hygienic design; gration are essential in this regard; and the system controls the entire produc-
ensuring, for example, that everything not only help to ensure food safety, tion operation, while measuring, mon-
that comes into contact with food is but can also drive up production effi- itoring and logging all manner of pro-
manufactured from appropriate mate- ciency and lower costs. cess parameters along the way.
rials and, in the case of machines and “In recent years, we have made At any stage of the food manufac-
equipment, is able to be cleaned with significant advances in automation turing process, reports can be gener-
relative ease. It’s a concept the com- technology and now, with our latest ated with precise information regarding
pany has long applied to every new generation Tetra PlantMaster, have a all aspects of the food processing and
product it creates. solution that enables the many inter- packaging operation: from recipes and
Now, thanks to advances in tech- dependent parts of a customer’s pro- temperatures to flow rates and other
nology, the opportunity to safeguard cessing and packaging operation to operational parameters. Production
food goes a great deal further, with work seamlessly together, “ says Mats best practices can now be replicated
integration, automation and data utili- Melander, Director Automation Solu- each and every time to meet retailer
sation lifting safety and protection to tions. “Customers can achieve total and consumer demands for consis-
a whole new level. control of a process, a complete line, tency and food safety.
or an entire processing and packag-
INTEGRATED PLANT SOLUTIONS ing plant – controlling and reporting at EFFECTIVE TRACEABILITY
Within any food production line, one every step from raw material intake to But there is another significant benefit
of the key ways to reduce food safety product ready for distribution.” to having such comprehensive infor-
risk is to ensure comprehensive moni- Using Tetra PlantMaster, incoming mation: traceability.
toring and control across all stages of materials are registered through product More and more, the food industry is
being called on to provide complete
transparency regarding ingredients,
sourcing, manufacturing and more.
For consumers, particularly in devel-
oped economies, such information is
used to help them understand the
origins of what they eat. For the food
industry, on the other hand, traceability
can play an absolutely key role in
quality and issues management.
In addition to providing precise data
related to every stage of the food pro-
duction process, Tetra PlantMaster can

34 TETRA LAVAL 2013/2014

also collect information concerning track back quality issues and more. consumer perceptions of their brand,”
the incoming raw materials. A unique For consumers, it offers reassurance, says Mats Melander.“It is technology
code, printed onto the finished package enabling them to trace the food they we continue to develop, introducing
or distribution unit can then be used feed their families right the way back new and innovative functionalities,
to access the complete story of the to the farm. and improving existing ones, to deliver
product inside, via an internet portal. “Through Tetra PlantMaster, intelligent even greater benefits to our customers.”
For food producers, it allows them automation, integration and data utili-
to collect and analyse all manner of sation are providing food manufacturers
data to improve production planning, with a wealth of valuable information
monitor environmental performance, to help drive efficiency, improve quality,
optimise throughput, secure reliability, underpin food safety and enhance

TETRA LAVAL 2013/2014 35

TETRA PAK SOLUTIONS

Successful launches
of new DiP products
The Deeper in the Pyramid (DiP*) segment of low-income consumers represents a big growth opportunity
for the international food industry. Within Tetra Pak, the company has established a business unit focused
exclusively on supporting customers with packaging solutions that meet the specific needs of this newly-­
defined market segment. Since the unit was formed in 2011 it has made good progress, helping customers
deliver safe, nutritious liquid food products to low-income consumers in a number of different countries.
Recent examples include the launch of the Tetra Fino® Aseptic 100 ml package with KMP in India, and
Premier Food’s launch of jelly in Tetra Classic® Aseptic 65 ml cartons in Sudan.

It is estimated that the low-income

household segment today accounts
for about 40 per cent of the world’s SUDAN, 30 MIO, 39% DiP
population, or around 2.8 billion peo- ETHIOPIA, 91 MIO, 39% DiP
ple (Euromonitor International 2013). KENYA, 43.5 MIO, 49% DiP
Based mainly in developing countries
within Asia, Africa and the Middle
East, these households, which cur-
rently live on incomes of between $ 2
and $ 8 a day, are widely predicted to
become tomorrow’s middle class. NIGERIA, 170 MIO, 50% DiP
On that premise, DiP consumers DEMOCRATIC REPUBLIC OF
are, not surprisingly, seen to represent THE CONGO, 75 MIO, 39% DiP
a major opportunity for the liquid food ANGOLA, 18 MIO, 39% DiP
industry - both when it comes to ZAMBIA, 14 MIO, 34% DiP
meeting their needs for safe and nutri-
SOUTH AFRICA, 51 MIO, 24% DiP
tious products today, and also in
terms of growth potential for the future.
The key to tomorrow’s success, how-
ever, lies in reaching them with the
products they need right now.
For dairy producers in particular,
Source: Euromonitor and CIA worldbook
there is a major opportunity to supply
this segment with healthy and nutri-
tious products using alternatives to
whole milk, such as whey or lactic acid,
offering smaller packages at affordable second largest dairy co-operative, has played a significant role in attracting
cost. Two recent Tetra Pak examples, Karnataka Milk Federation (KMF). This new consumers to the UHT category.
from India and Africa, show what is made KMF the first market company “The Tetra Fino Aseptic 100 ml offers all
possible. to introduce Ambient White Milk in the the benefits of aseptic carton packaging
package. It was launched at an at an affordable price. Consumers in
LAUNCH OF TETRA FINO® afford­able consumer price of 8 cents the DiP segment increasingly demand
ASEPTIC 100 IN INDIA ($) and primarily sold in traditional affordable solutions without having to
Tetra Pak India launched the Tetra Fino® neighbourhood retail outlets. Research compromise on safety and quality,”
Aseptic 100 ml with the country’s shows that the Tetra Fino Aseptic 100 ml says Tetra Pak South Asia Markets

36 TETRA LAVAL 2013/2014

Managing Director, Kandarp Singh.
“We have seen strong growth in
demand for this package in Ambient
Successful long-life product
White Milk, especially in areas where
the reach of loose or pasteurised milk
training in Shanghai
is limited due to distribution challenges.
This is evidence of the huge opportu-
nity that exists with such formats.” Who better to pass on knowledge about the production of
long-life* drinks than a team of quality assurance experts from
SUCCESSFUL LAUNCHES Tetra Pak? The group, from the Quality Assurance Management
IN SUDAN
Division, set up and delivered a tailor-made, 10-day training
Other examples relate to Tetra Pak’s
support to customers in Sudan, where
programme for Chinese customer Yili in August 2013. And it
46 per cent of the population exists be- seems that more training could be on the horizon.
low the food poverty line on an income
of less than $1.25 per day. There are
The programme, covering the entire Feedback comments showed how
approximately 10 million consumers
aseptic production process for UHT well the programme had gone:
in the DiP segment in the country.
milk, took place at the Shanghai fac­ among them were ‘theory could be
Customers in Sudan have success-
tory operated by Yili, one of Tetra linked to practice in routine work’,
fully addressed the DiP segment by
Pak’s biggest Chinese customers. and ‘a clear understanding of the
launching a variety of different still drinks
The feedback: it was highly appreci­ principle of equipment operation
and liquid dairy products in a range of
ated, leading Yili to consider extend­ and related critical control points’.
Tetra Pak packages, including Tetra Fino®
ing training to local production sites “Yili was very satisfied with the
Aseptic 200 ml, Tetra Classic® Aseptic
across the country. seminar and its content. They are
150 ml and Tetra Classic Aseptic 65 ml.
The ‘students’ – comprising 16 now evaluating the possibility of ex­
“One recent example is the launch of
QA (Quality Assurance) managers tending the programme to their local
our Tetra Classic Aseptic 65 ml package
from different Chinese sites and in­ production sites during next year,”
for jelly with our customer Premier Food,
cluding the quality director for the concludes Jiri Korinek.
which was received very positively by
entire Group – studied the pro­ Yili Group is one of Tetra Pak’s
consumers,” says Mikhail Kamyshny,
cesses behind long-life UHT milk longest-standing (since 1996) and
Tetra Pak Cluster Leader Marketing and
products, which can often remain on largest customers in China and has
Product Management for Sub-Sahara
the shop shelf for more than three purchased many types of process­
Africa.
months in ambient conditions. ing and packaging equipment. The
“Reducing the pack size helps cus-
The training sessions covered Chinese group has extensive opera­
tomers maintain the power price point
production of UHT milk from recep­ tions in the country, including 308
without eroding their margin. It is all
tion to quality control, including pro­ filling machines with a capacity of
about affordability and availability.”
cessing, filling, packaging, and 28 billion packages a year.
assurance.
“We also covered the microbiology * At Tetra Pak Long Life Products are de-
* Tetra Pak was inspired by the business
related to UHT milk and the systematic scribed as products that have longer shelf
guru, the late C.K. Prahalad, and his book
life than normal conditions. For UHT milk
The Fortune at the Bottom of the Pyramid: trouble-shooting of UHT milk pro­ the lifetime is often more than three months.
Eradicating Poverty through Profits. duction, including food safety and These are products targeted for the am-
quality issues,” says Jiri Korinek, bient distribution chain, and typical ex-
Director QAM at Tetra Pak. amples would be UHT milk and juices.

TETRA LAVAL 2013/2014 37

TETRA PAK SUSTAINABILITY

Driving Environmental Excellence

Double the recycle rate by 2020

In 2011 Tetra Pak set a target to double the global recycling rate of used Tetra Pak cartons from 20
per cent in 2010 to 40 per cent by 2020. And with research continuing to show that recycling remains
as high as ever on the consumers’ agenda, step-change improvement in this area continues to be
recognized as fundamentally important to Tetra Pak’s long-term business success.

Consumers around the world describe cent goal. In 2013 the recycling of used crease recycling and, in that regard,
the recycling of used packaging as their Tetra Pak cartons increased to 623,00 the company has identified four key
most important environmental activity. tonnes compared to 581,000 tonnes actions to help reach its recycling
According to Tetra Pak’s latest envi- in 2012, or 43 billion cartons (39 billion ambitions:
ronmental research, 87 per cent of in 2012), creating a useful resource 1. Increase consumer awareness
consumers set aside their used bottles, for the production of new materials. 2. Support collection and sorting
bags and boxes for recycling at least infrastructure
occasionally*. INCREASING RECYCLING 3. Boost business opportunities for
Consumers are not the only people REQUIRES COLLABORATION recycling entrepreneurs
who care about recycling – in fact, the Successful recycling depends on many 4. Expand market opportunities for
demand for recycling comes from many different elements working together, recycled materials
different directions: governments, local such as the creation of an effective In each of these areas, Tetra Pak
authorities, community groups, NGOs, collection infrastructure, legislative takes an active role – from leading
retailers and many others. Not surpris- frameworks, financial resources, and recycling awareness programmes in
ingly, Tetra Pak’s own customers also collaboration between industry and schools to supporting technology
have a sharp focus on recycling, and government stakeholders. Plus, it development projects that will make
many now consider it a deal-breaker requires a willingness on the part of the recycling process more efficient.
when assessing the merit of a poten- consumers to take action. Indeed, “Recycling is not our business, but
tial new product or service*. Tetra Pak cannot achieve its 40 per cent it is our business to make recycling
“The fact that Tetra Pak packages global recycling target alone, so the work,” says Claes Du Rietz.
can be recycled is a good starting company partners with many different
point, but alone, it is not enough,” stakeholders, including governments, * Tetra Pak environmental research,
says Claes Du Rietz, Vice President municipalities, NGOs and recyclers, Millward Brown, 2013
Environment. “We also need to ensure to work towards achieving this goal.
that they are being recycled – because
by increasing the recycling rate of used REMOVING BARRIERS TO
Tetra Pak cartons, we help to ensure INCREASE RECYCLING FACTS
the competitiveness of our portfolio.” Tetra Pak effectively acts as a catalyst
2013 2012
in the recycling value chain. The com-
Recycling of used
RE-USING VALUABLE MATERIAL pany doesn’t own or operate collection Tetra Pak cartons in
Tetra Pak beverage cartons are made infrastructure and recycling plants, but 2013, total no of packs 43 billion 39 billion
primarily from wood fibre that has been cooperates with all key stakeholders in- Total recycled volume
refined into paperboard, laminated with cluding recyclers, waste management (tonnes) 623 000 581 000
protective layers of plastic and alumin- companies, public institutions and % of Tetra Pak
ium. The market for recycled cartons others. cartons sold 24,5% 22,9%
is steadily increasing, and Tetra Pak is One of its most important tasks is
making progress towards its 40 per to identify and remove barriers to in-

38 TETRA LAVAL 2013/2014

SIDEL
When Sidel develops new PET packaging solutions for liquid foods, safety is at the heart
of the process. Sidel offers flexible and reliable production systems that can easily be
adapted to market developments and future technology. And the focus is always on
protecting the final product of the customer.
SIDEL IN TWO MINUTES

WORK WITH US AND GET A BETTER MATCH

The Sidel Group is one of the world leaders in solutions for liquid food packaging. Sidel offers equipment
and services that are key to customers’ decision-making in the purchase of complete bottling lines. Its
activities cover the three major categories of packaging: glass bottles (disposable & returnable), plastic
bottles (PET, HDPE, and PP) and metal cans.

R&D
Sidel is a pioneer in beverage packaging solutions, especially for PET bottles. Some innovations are:
the Combi system, facilitating bottle making, filling and capping for PET bottles; Predis™, a revolutionary
sustainable solution to enhance aseptic hygiene and Sidel Matrix™, a revolutionary system to optimise
liquid packaging production. Food safety and sustainability are Sidel’s frontiers for innovation.

COUNTRIES SERVED NET SALES 2013 OFFICES RESEARCH CENTRES

>190 1,395 50 8 MILLION EURO

SOLUTIONS
From concept to consumer, we can help make an innovative product idea for a new beverage an
industrial reality with a fast time to market. Sidel can support starting with the industrial bottle design
process, through to complete line needs, from preliminary design to developing an investment budget,
drafting plans for line layout or building the bottling line on-site. The solution encompasses blow
moulding machines, barrier treatment, fillers, and end-of-line operations. The result is to ensure
beverages stand out from the competition as well as withstand the various pressures along the
supply chain, protecting the quality of the beverages in-side.

40 TETRA LAVAL 2013/2014

MARKETS & CUSTOMERS
Sidel has installed more than 30,000 machines in
190 countries: from China to Brazil, taking in the
United States, Germany, Japan, South Africa and
Russia on the way. Sidel is making its mark today
as a multicultural group, employing around sixty
different nationalities, totalling some 5,500 employees.
Industrial subsidiaries
Sales & Services offices

CUSTOMERS
Our customers come from all parts of the beverage industry; from juice and dairy products
to mineral water and soft drinks. In addition, we offer solutions for alcoholic beverages
including beer and other liquid food categories.

SIDEL SALES 2008 – 2013

1,400 M EURO
TRAINING CENTRES NUMBER OF EMPLOYEES DECEMBER 2013
1,200

7 5,510
1,000
800
600
400
200
0
2008 2009 2010 2011 2012 2013

OUR BRAND – A BETTER MATCH

Sidel is the leading global provider of PET solutions for liquid for water, soft drinks, milk, sensitive products, edible oils and
packaging. We are also a driving force for glass and can alcoholic beverages including beer.
solutions. We are committed to being the most innovative, We aim to create value for our customers by giving them
responsive and reliable partner, providing sustainable solutions A Better Match. This is the tailored solution that caters for
for the beverage industry. their needs exactly. We do this by offering flexible and reliable
Headquartered in Switzerland, we have production sites in production solutions that are easily adaptable to market
13 countries and 30,000 machines installed in more than 190 developments and future technology, supported by value-­
nations worldwide. With over 5,500 employees worldwide, added services.
we provide optimal PET, glass and can packaging solutions

TETRA LAVAL 2013/2014 41

SIDEL HIGHLIGHTS 2013/2014

02.

03. 01.

04.

06. 08.

07. 05.

42 TETRA LAVAL 2013/2014

2013/2014
01. 15 YEARS IN SAFE ASEPTIC 03. INLINE MAGAZINE WINS 06. ECO LAMPS SAVE ENERGY
PRODUCTION WITH PREFORM INTERNATIONAL AWARDS AND MONEY
DECONTAMINATION Sidel’s customer magazine Inline received How to save energy and money, without
15 years ago Sidel revolutionised the two international awards during the year. investing in new equipment? Replace
beverage industry by developing the In May, the magazine received Silver in existing preform heating lamps with Sidel’s
world’s first preform decontamination the ‘Corporate Publishing’ category of ECO lamps. For PepsiCo in Germany,
solution to produce aseptic beverages. the 2013 Astrid Awards in New York City, this simple switch reduced energy use by
Due to its extensive packaging, blowing United States. And in October the publi­ 19 per cent and energy costs by 16 per
and aseptic filling experience, Sidel was cation picked up the Silver Award for cent. This was the latest step taken by
the first to understand why it is simpler ‘Best Marketing or Sales Brochure or Kit PepsiCo, working with the Sidel Options
and safer to decontaminate the preform – Print’ at the 2013 Stevie International and Upgrades team, which has been
rather than the bottle. Even if the new Business Awards, presented in Barce­ leading the way in environmentally friendly
technology was strongly criticised in a lona, Spain. beverage production for a decade.
market dominated by traditional solutions
such as wet-bottle decontamination. 04. WHEN ONE SIDEL MATRIX 07. GEARING UP FOR TOP SPORTS
Predis™, the dry-preform decontamination BLOWER IS NOT ENOUGH EVENTS IN BRAZIL
solution, became an industry benchmark,
The Sidel Matrix range of blowers continues It’s not just stars of sport who are preparing
with an adaption for the caps with Capdis™.
to challenge conventional packaging of for two of the world’s greatest sporting
Part of an integrated blow-fill-cap solution,
liquids with its multitude of cutting-­edge events in Brazil in the near future. Sidel is
the aseptic Combi Predis FMa Capdis is
technical solutions. Global bottler Alpla helping the leading Coca-Cola franchisee
designed to ensure food safety. While
were so impressed when they replaced a Spaipa get ready to meet a huge increase
being simple to operate and maintain,
previous generation Sidel blower with a in demand during the FIFA World Cup in
it has already been successfully imple­
Sidel Matrix unit at their Coca-Cola 2014, and the Olympic Games in Rio in
mented and proven by major names in
Femsa plant in Mexico that they decided 2016 by equipping the company’s plant
the beverage industry throughout the
to invest in a second one. The new flexible in Bauru with the revolutionary Sidel
world. With more than 11 billion bottles
blowers help Alpla to successfully handle Matrix system.
produced worldwide at this point and more
all preform types – virgin PET or PCR
than 60 production lines equipped with
PET, recently injected or coming from
the Predis system, this is a great indicator 08. A NEW LOW CAPACITY SOLU-
storage – without compromising bottle
of the reliability of the technology. TION FOR ASEPTIC PRODUCTION
quality or output. The blowers have also
reduced both energy consumption and Beverage manufacturers can now benefit
maintenance costs, meeting Alpla’s from aseptic technology for smaller pro­
02. TRIANGULAR BOTTLE duction runs following the launch of a new
highest expectations.
DOUBLES UP ON DESIGN AWARDS low-capacity integrated aseptic blow-fill-cap
It’s triangular in shape and engraved by solution from Sidel. Introduced in response
laser instead of carrying a traditional label: 05. GIVING THE ICONIC PEPSI to market demand, this new Sidel low-capacity
the bottle designed by Sidel for the French BOTTLE A NEW LOOK aseptic Combi Predis™/Capdis™ FMa is
company Société des Eaux d’Aix-les-bains For the first time since 1996, PepsiCo based on the dry-preform and cap
is both eye-catching and also has an ex­ redesigned their classic Pepsi bottle in decontamination technology already
clusive look and feel. The design scooped March. Sidel was a key contributor to the successfully implemented and proven
‘Best bottle in PET’ at Drinktec, the leading new design, featuring a shorter wrap­ by major names in beverage manufacture
trade exhibition, in Munich, and a Bronze around and a contoured bottom half. throughout the world.
medal in the beverages category at the The new shape was first deployed in
Pentawards, the worldwide design awards, North America, and will be rolled out
in Barcelona. to the rest of the world during 2014.

TETRA LAVAL 2013/2014 43

SIDEL COMMENTS BY THE CEO

Positive outlook from Sidel

after a challenging year
2013 proved a challenging year for TCO (total cost of ownership) and an an important focus for Sidel given the
Sidel, with the impact felt from cus- improved environmental footprint as large installed base of our equipment.
tomers holding back on investments we all look to develop more sustain- South America and other countries
in capital equipment, a trend that able methods of production. slowed due to the slower develop-
began in 2012. However, it is important ment of the Brazilian market while
to recognise that this is primarily cyclical CHINA MARKET DECLINING North America was very sluggish and
variation rather than fundamental BUT STRONG SOUTH EAST ASIA is contracting. Nevertheless, as with
structural change: the underlying From a geographical point of view, the Europe, North America is important
growth in the use of PET in the liquid market in China continued to shrink for our aftermarket sales due to the
packaging solutions market remains, after several years of extraordinary large installed base.
as do the opportunities this represents growth. However, Sidel made significant
for us as a business. The reduction in progress in identifying and working with GOOD EXECUTION OF THE
equipment sales was offset by strong new customers in the country, broad- TRANSFORMATION PROGRAMME
sales of aftermarket equipment and ening our customer base and increasing During the year we continued to exe-
services. This translates into flat de- market share. We also celebrated the cute our transformation programme,
velopment of net sales for the Sidel five year anniversary of our main which has three strategic priorities:
Group for 2013. manu­facturing plant in Beijing. Customer Proximity, Technology
A highlight of the year was the launch In contrast to China, South East Asian Leader­ship and Operational Excellence.
of Sidel Matrix™ – our latest generation countries like the Philippines, Indonesia, From a customer viewpoint, the
of PET bottling equipment based on Malaysia, Vietnam and Myanmar en- integration of our service business to
modular platform architecture. We have joyed strong growth, and Sidel increased the line organisation will be of real
received very positive feedback from its presence accordingly to meet benefit. Sidel is gradually becoming
our customers who are recognising customer demand. The Middle East more of a solutions company, focused
the significant contributions Sidel and Africa also showed good growth on supporting our customers and
Matrix can make to their businesses while the European market was rela- helping them to solve their problems.
in terms of performance, flexibility, tively flat. However, Europe remains Moreover, the completion of our zone

We have received very positive feedback from our customers who are
recognising the significant contributions Sidel Matrix™ can make to their
businesses in terms of performance, flexibility, TCO (total cost of owner-
ship) and an improved environmental footprint as we all look to develop
more sustainable methods of production.

44 TETRA LAVAL 2013/2014

structure, with the increased focus on
sales and aftermarket services, is a
good example of transformation in
practice, moving from a simple equip-
ment focus to one which recognises
the importance of customer proximity
in providing global experience at a
local level.
Technology remains at the heart of
Sidel. For instance, our packaging and
bottle design capabilities continue to
be recognised as outstanding in the
market, with 2013 bringing several
international awards, from ‘Best Bottle in
PET’ to ‘Best Environmental Sustain-
ability Initiative’. The launch of the
Sidel Matrix system for PET bottling
lines also demonstrates this commit-
ment to technical excellence and is
the result of many years of intensive
research and development.
Another example of our reputation for
technological innovation is the release
of roll sleeve labellers which are able
to apply the thinnest label material
onto PET bottles. This has a positive
impact in environmental terms, as well
as reducing the total cost of labelling
for our customers. Our new RightWeight
bottle initiative is making a significant
contribution to the market, offering platform has contributed to further merged Gebo, a respected brand in
substantial bottle weight savings with- cost reductions in our organisation, conveying and material handling, with
out compromising on product quality offsetting the price erosions which Cermex, an expert in secondary
or the consumer experience. The new currently characterise the PET bottling packaging and end-of-line equipment.
base and shape format for PET bottles equipment market. With this and the The newly formed Gebo Cermex will
optimises the total performance of the organisational changes already men- focus on glass and can, offering
bottle throughout the entire supply chain. tioned, we have been able to increase world-class line integration and engi-
Operational Excellence is a pre-requi- operational efficiency. neering services including standalone
site for Sidel in order to stay competitive equipment for tasks such as conveying,
in the market. The development and IMPORTANT CHANGES IN bottle washing, pasteurising, over-
implementation of Sidel Matrix allows OUR ORGANISATION wrapping, packing and palletising for
us to build a more rational supply chain. During the year Sidel executed some the beverage and other markets.
The roll-out of this new technological important organisational changes. We Another important development was

TETRA LAVAL 2013/2014 45

SIDEL COMMENTS BY THE CEO

the reorganisation and creation of two that our machines are often in direct we have to successfully manage and
new geographical zones with increased contact with the product and there- develop the new glass and can com-
market focus: Europe and Central Asia, fore for us, as for our customers, there pany, Gebo Cermex, reinforcing its
headquartered in Frankfurt, and Africa is never a compromise on food safety. position in existing markets as well as
and Middle East with headquarters in ‘Beverage Safety in a Changing World’ developing opportunities in new ones.
Dubai. We also reorganised our after- was one of the central themes at A more holistic and longer-term view
market operations – LCM (Life Cycle KNOWLEDGEshare 2013, a two-day is also central to the development of
Management) – including spare parts, forum, presented in association with Sidel. We need to ensure that we are
upgrades and service. They have now Sidel, which saw more than 120 par- in a position to meet the challenges of
been integrated into the market and ticipants gather to discuss the big is- tomorrow, as well as those of today.
industrial organisations, which will sues and challenges that our industry Thanks to our skilful and devoted
bring increased customer focus and faces. This clearly demonstrates that co-workers, new equipment and service
operational efficiencies. food protection and product safety are launches and leading market position,
fundamental to our company culture 2014 should be a good year for Sidel
SUCCESSFUL LEADERSHIP and must continue to be developed and one that helps to strengthen our
INITIATIVES and improved. Sidel has further capability to meet those challenges.
Within the area of personnel and strengthened its knowledge and
leader­ship Sidel undertook a number competence in this respect by a fruitful Mart Tiismann
of important initiatives last year. We collaboration with the processing
identified and trained high potentials division of Tetra Pak, the world leader
throughout the organisation. Around in food safety.
100 co-workers participated in this
programme of assessment, training POSITIVE OUTLOOK FOR 2014
and coaching at our headquarters in Looking to the future, it is difficult to
Switzerland. It is an important step in assess the business cycle for 2014.
providing opportunities for individual After a couple of years of no growth in
careers, as well as creating the plat- our equipment business I am cautiously
form to ensure future leadership of the optimistic. There is underlying growth
company. Another essential action is in beverage consumption, with signs
the creation of Technical Career Path indicating that demand should increase
Options, a programme tailored spe- over the coming years. However, we
cifically for our engineers and giving will continue to develop our aftermarket
them opportunities to grow within service, recognising that this transition
their speciality area. to a service and solutions based
company that works increasingly
FOOD PROTECTION PERME- closely with our customers is vital.
ATES THE ORGANISATION Other focus areas for next year will be
The theme of this report is Ensuring the ongoing introduction of Sidel
Food Protection. This concept is be- Matrix to the market – offering a con-
coming increasingly important to us as figurable equipment platform for our
a supplier of liquid packaging solutions, customers, future proofing their
with beverages being a vital element production lines, as well as enabling
of the food processing market. Pro- us to exploit the equipment architecture
viding the whole equipment line means for leaner manufacturing. In addition,

46 TETRA LAVAL 2013/2014

 SIDEL GROUP MANAGEMENT TEAM

01.

02. 03.

04. 05.

06.

01.  Mart Tiismann

President & CEO
02. Roberto Bettini
Human Resources
03. Nicholas Bloch
Corporate Communications
04. Caroline Fellenius-Omnell
Legal Affairs
05. Sid Johari
Industrial Operations
07.
06.  eter Logan
P
Market Operations
07. Anders Wester
Finance & Strategy

TETRA LAVAL 2013/2014 47

SIDEL STRATEGIC DIRECTIONS

VISION
We commit to being the most innovative, responsive
and reliable partner, providing sustainable solutions
for the beverage industry.

MISSION
We are the driving force in liquid packaging, providing optimal solutions in PET, can and glass.
We constantly challenge the limits of technology and services in order to offer our customers the
means to a more sustainable business.

STRATEGIC PRIORITIES
To always be able to deliver on our promise to be
A Better Match, Sidel’s strategy is to transform Sidel
along the strategic axes of Customer Proximity, Tech­
nology Leadership and Operational Excellence.

SIDEL IS A BETTER MATCH

A Better Match is about delivering on is by providing our customers with than just Sidel equipment. It also
more things than one. More than an value. takes customers’ expertise and
equipment supplier, Sidel is and aspires When Sidel talks value, we mean decades of service – which we
to be a full service provider. value everywhere. From the design of combine with our equipment into
In everything we do at Sidel, we individual moulds, to the equipment complete solutions that envelop our
strive to be a Better Match. A Better customers deploy and maintain, to customers’ packaging solutions with
Match for the products our customers customers’ production lines as a value-adding care.
make. A Better Match for the diverse whole, and beyond – to our customers’ We are Sidel – We are A Better
and fast-changing markets. A Better logistics infrastructure. Match.
Match for their business as a whole. To give our customers more value
Our way of being that better match across their business, it takes more

48 TETRA LAVAL 2013/2014

ORGANISATION
Sidel’s organisational structure and geo­ and demands, Sidel’s industrial organisa­ packaging centres dedicated to designing
graphic presence is designed with its tion ensures that they are continually new bottles or optimising existing designs,
customers in mind. Through this market focused on product development and across the world.
approach, Sidel combines global compe­ expanding their product portfolio. The Sidel Group has more than 5,500
tences with local proximity around the world, Today, there are 8 research centres employees over 5 continents and more than
enabling highly reliable and responsive dedicated to developing new packaging 30,000 machines installed in more than
customer service and support. To meet technologies, 50 offices across the globe, 190 countries.
and even anticipate customers’ needs production sites in 13 countries and 6

SIDEL GROUP PRESIDENT & CEO

COMMUNICATIONS FINANCE & STRATEGY

LEGAL AFFAIRS HUMAN RESOURCES

Sidel Gebo Cermex Tectubes Hema

CORE VALUES
Passion lies at the core of our values about our work, continuously devel­ input, but once a decision is made,
and is applied to every aspect of our oping our skills. We cooperate on all we unite our efforts and move together
work – from our desire to create the levels to ensure that we provide the in one common direction.
best products to the respect we quality of work that our customers
have for our colleagues, our work­ can rely on and that we are proud of. DELIVER & OPTIMISE
place and the environment. We follow through on our commit­
CHALLENGE & INNOVATE ments to our customers, to our sup­
LISTEN & UNDERSTAND We challenge the limits of technology pliers and to our colleagues. We are
We listen – to our customers, suppliers in order to provide the best possible consistent, straightforward and honest,
and colleagues so that we can under­ solutions. Together we have the cre­ and always act with the highest level
stand and anticipate their unique ative mindset that sets us apart from of integrity in everything we do. We
needs. our competitors – and gives us the are passionate about learning at all
We allow for an open, transparent flexibility and urgency to design times in order to optimise our pro­
and flexible work environment where innovative and adaptable solutions. cesses and achieve excellence.
we are equally involved and passionate At Sidel, there’s room for everybody’s

TETRA LAVAL 2013/2014 49

SIDEL MARKET

Growth on the horizon:

beverage market overview
China leads increasing demand for packaged beverages,
as Asian markets follow the trend for healthier drinks.

Sidel’s core business is to serve the additions (70 per cent), largely triggered in PET. Based on positive long-term
global market for beverage packaging by increases in consumption of pack- macroeconomic conditions, the con-
and their equipment solutions exist for aged beverages, and old equip­ment sumption of packaged beverages is
three primary material categories: PET, replacement sales (30 per cent). The expected to continue to grow at a healthy
metal can and glass, covering all main growth in packages is itself driven by rate. Today, the average growth rate
categories such as water, carbonated positive macroeconomic trends in- for packaging units is expected to be
soft drinks (CSD), beer, juices, nectars, cluding population growth, expansion four per cent for PET and two per
soft drinks, isotonics and teas (JNSDIT), of the middle class in emerging markets, cent for metal can and glass.
and liquid dairy products (LDP). Sidel’s and increasing global prosperity. Three Approximately 70 per cent of the
addressable equipment market is over main suppliers, including Sidel, lead increase in consumption of packaged
4 billion Euros of sales. The market the industry and capture approximately beverages in the next four years is
has now fully recovered from a major two thirds of the equipment market. expected to come from Asia, with a
slump in 2009, and long-term growth Sidel is present in all major geographical projected CAGR 2013-2017 for pack-
is expected to be between 4 – 5 per markets, and main product categories, aging units of six per cent. Greater
cent per year, driven by capacity enjoying a particularly strong position China will drive most of this growth.

WORLDWIDE PACKAGING MATERIALS TRENDS 2013 – 2017

CAGR* 2013/2017
78 Other +4%
120 Other plastics +5%
68 Other 223
98 Other plastics Carton +5%
181 Carton
313 Can +2%
284 Can

388 Glass +2%

353 Glass

542 PET +4%

456 PET

2013 +4% 2017

Total in bn units | Source: Euromonitor 2013 * Compound Annual Growth Rate

50 TETRA LAVAL 2013/2014

The category with the highest increase
in sales of packages will be JNSDIT,
followed by LDP and water. JNSDIT
and LDP are becoming increasingly
popular, with significant trends towards
healthy products, driving demand for
high-­technology aseptic or hotfill solu-
tions. Water usually presents different
challenges, requiring ever-lighter PET
containers and high-speed lines. All
those drivers give Sidel the opportunity
to differentiate itself by proposing
advanced solutions.

WORLDWIDE CATEGORIES TRENDS 2013 – 2017

CAGR* 2013/2017

291 Water +5%

241 Water Liquid Dairy

316 +5%
Liquid Dairy Products
259
Products Carbonated
303 +2%
Carbonated Soft Drinks
284
Soft Drinks
Juices, Nectars, Soft
Juices, Nectars, Soft 355 +5%
296 Drinks, Isotonics & Teas
Drinks, Isotonics & Teas

360 Beer 399 Beer +3%

2013 +4% 2017

Total in bn units | Source: Euromonitor 2013 * Compound Annual Growth Rate

TETRA LAVAL 2013/2014 51

SIDEL CUSTOMERS

A vote of confidence
from Alpla Mexico
Alpla, an innovative provider of plastic packaging specialising in blow-moulded bottles, chose Sidel
solutions as a sound investment when it needed to optimise its PET-blowing capacities in Mexico.
The company purchased two Sidel MatrixTM blowers in two years and is now producing bottles for
the full range of Coca-Cola branded products for Coca-Cola FEMSA.

After field-testing the new SBO 24 blowers – along with the fact that
Sidel Matrix in February 2012, Alpla Sidel performs better on-site service
quickly ordered a second, installed in compared to other suppliers.”
February 2013. Both blowers are now Installed in a wall-to-wall configura-
in production at the Toluca plant of tion, the two machines are in production
Coca-Cola FEMSA, one of the largest 24/7, producing 2,200 bottles per hour
Coca-Cola bottlers in the world by per mould; one blower is mainly used
sales volume. for 400 ml bottles and the second for
The orders were placed after Alpla 600 ml.
carefully assessed the different solu-
tions available. Martin Stark, Technical CONSISTENT BOTTLE QUALITY
and Purchasing Director at Alpla, ex- The latest innovations, including Ecoven,
plains: “We wanted an optimal solu- an energy-saving oven with a large
tion offering reduced energy consump- process window, improved ventilation
tion and maintenance costs. These in the oven, and electrical stretching,
are the two main reasons we chose allow the Sidel Matrix blower to success­
the new generation of Sidel Matrix fully handle preforms made of virgin

Aseptic technology introduced to Indonesia

In Indonesia, the young urban population is driving an increasing Sidel shared its ambitions.
demand for new healthy soft drinks and new types of packaging. “From our experience, we knew
that aseptic technology could achieve
When Japanese Hokkan Group entered the market to launch a
lightweight bottles, a flexible bottle
wide range of non-carbonated, sensitive beverages to these design, and long product shelf life.
demanding consumers, they turned to aseptic technology which Sidel understood our needs and had
puts food safety first. the right equipment portfolio for aseptic
technology,” says Masaaki Ikezawa,
Japanese Hokkan Group is one of Asia’s SHARED AMBITIONS President of PT Hokkan Indonesia.
strongest beverage businesses, oper- The Group knew many of the benefits The manufacturing plant was set up
ating in Japan, Vietnam, Malaysia and of aseptic filling from its operations in in Ciawi, Bogor, in September 2012.
most recently Indonesia. In 2011, Japan and was keen to take this With an annual production capacity of
Hokkan entered into a joint venture with technology to its new Indonesian plant. 150 million bottles, it makes PET bottles
one of the world’s largest trading com- PT Hokkan Indonesia needed a supplier for ‘sensitive’ products, such as drinks
panies, Toyota Tsusho Corporation, to who could meet its requirements for based on coffee, tea and milk, fruit
create a new player in the Indonesian high quality, speed and food safety. and sports drinks, as well as carrying
market, PT Hokkan Indonesia. Management quickly realised that out contract filling. The answer was a

52 TETRA LAVAL 2013/2014

PET or post-­consumer-recycled HIGH PERFORMANCE BUILT
(PCR) PET. ON SIDEL EXPERTISE
The Sidel Matrix blower allows good After some months of running at the
repetition from one station to another. overall performance of the blowers
It also ensures a stable and consistent fully meets Alpla’s expectations.
distribution of materials. The short neck In terms of changeover, Alpla’s ob-
used in all Coca-Cola bottles is well jective was to optimise uptime of the
protected due to the configuration of line: “We have to handle a format change
the equipment. every day on 24 blowing cavities, so
we need flexibility and easy operation.
25 PER CENT LIGHTER PET That’s why Alpla chose Sidel’s Bottle
BOTTLES WITH IMPROVED SwitchTM,” says Mr Stark. By eliminating
PRESSURE RESISTANCE any need for manual intervention, the
The considerable expertise of Sidel in electrical stretching also contributed
such areas as the definition of the heating to reducing changeover time.
and blowing process, measures to Those easier operations are supported
avoid stress cracking, and burst testing by the blower’s new user-friendly Human
contributed to achieving the performance Machine Interface (HMI). As well, the
demanded by Coca-Cola. A new base hygienic design helps ensure food
shape designed by Sidel improved the safety throughout processing, due to
bottles’ resistance to internal pressure, air filtration in the oven and its point of
preventing stress cracking. Alpla was lubrication (with food-grade lubricant)
also able to reduce the weight of the above the container in the blowing project, communication between Alpla
400 ml bottle from 20.5 g to 15.5 g station. and Sidel teams was very good, and
while still respecting Coca-Cola’s the Sidel team was always responsive.
specifications. A LONG AND TRUSTING Sidel’s local presence and proximity
PARTNERSHIP was also vital. It was one of the key
Throughout the project, Sidel provided factors in deciding to buy the second
Alpla with support, advice and recom- Sidel Matrix blower. The collaboration
mendations for production management. between Alpla and Sidel is a long and
Martin Stark summed up: “During the trusting partnership.”

Sidel PET aseptic line equipped with a As well as working on the design of
wet aseptic Combi Sensofill FMa. the new line, Sidel was also involved
in creating a new bottle suitable for
READY FOR CHANGE aseptic production.
Since the end of 2012, the Combi wet
aseptic line has been running continu- NEXT STEP: AN ASEPTIC LINE
ously. It has reduced the need for WITH DRY-PREFORM DECON-
manpower at the early stage of distri- TAMINATION
bution, and has consumed less elec- The company is now considering a
tricity than expected. Looking ahead, second line, Combi Predis™ FMa.
the company will be able to further Using no water and very few chemicals,
develop the line to meet changing Predis technology dry decontaminates
requirements. “With the Combi, we preforms to ensure complete food
can develop and plan more lightweight safety and a longer shelf life without
bottles in future production. In our view, using preservatives. Any shape or size
Sidel is a company that leads the field of bottle can be produced, using
of innovation, bottle design, flexibility fewer materials and resulting in lighter
and services”, says Masaaki Ikezawa. packaging.

TETRA LAVAL 2013/2014 53

SIDEL TECHNOLOGY

Safety first with the new

Sidel Matrix™ Hot Filler
Food safety is non-negotiable and the paramount objective for Sidel. To meet the high production
standards needed for beverages such as juices, nectars, soft drinks, isotonics and teas, Sidel has
released a highly customisable, modular hot-filling solution – the Sidel Matrix Hot Filler.

HYGIENIC BY DESIGN with pistons to ensure an accurate and

Fresh ingredients must be treated steady dosage of pulp or slurry into the
with the highest care when it comes filled liquid. The filler also ensures bever-
to hygiene. With its hygienic design age quality: the integrity of the particles
and contactless filling valve, the Sidel is maintained with less than 10 per cent
Matrix Hot Filler meets all food safety being damaged during processing or filling.
requirements. The filling environment
can be adapted according to the level LONG LIFE CYCLE
of hygiene needed for a specific liquid: Based on a consolidated proven filling
open enclosure with the option of a technology, the Sidel Matrix Hot Filler is
roof, reduced enclosure with a volume an advanced modular solution. Several
reduced by 72 per cent compared Sidel Matrix Hot Fillers are already oper-
with the standard configuration. ating successfully in Asia and Latin
The liquid is pumped from an external America, delivering solutions to fit indi-
tank to the distribution ring always full vidual customers’ needs.
of liquid, ensuring there is no contact The equipment can easily be adapted
with the air. The bottle never comes to meet customers’ future production
into contact with the filling valve, needs. Its upgradeable platform allows
avoiding cross-contamination. customers to benefit from the advan-
tages of Sidel’s future technical develop­
ACCURATE FILLING ments. All components are made from
The flow of the liquid from the tank to stainless steel and correctly sized for a
Natural and fresh beverages such as the filling valve can be controlled, robust design that fits with beverage
juices are part of the fastest growing without stressing it during filling. As industry standards and ensures a long
drinks segment. Fulfilling this rising turbulence remains in the tank, the equipment life cycle.
demand also means achieving the pressure on the filling valve is constant
highest quality to ensure food safety, ensuring a highly accurate process. In
a need the Sidel Matrix Hot Filler is addition, dual-speed filling avoids foam
designed to meet. generation. During this filling phase,
The filler can be configured for any the bottle and filling valve are fixed to
kind of beverage packaged in PET, for avoid any splash-out or liquid waste.
both still and carbonated products, During slurry dosing, filling is in two
with high or low acidity, and with or steps: first, the slurry is dosed in the
without particles such as pulps or fruit bottle, and, second, the liquid juice is
pieces, sacs or fibres. It can also handle added. The filling process is com-
any bottle size from 200 to 2,000 ml, pletely hygienic: the slurry dosing
at speeds ranging from 6,000 to turret is equipped with contactless
60,000 bottles per hour. All filling solu- valves, meaning no parts penetrate
tions can be part of a fully integrated inside the bottle.
blow-fill-cap solution. The dual-stream process is managed

54 TETRA LAVAL 2013/2014

Simplicity sets the standard
Make it simple, keep it simple: this is the mantra guiding Sidel’s engineers in developing new packaging
solutions for customers. Simplicity is the best assurance of food safety. With this in mind, Sidel has
pioneered innovative solutions for many years that have become a standard for beverage packaging
worldwide. Dry preform decontamination is the most recent prime example.

Experience counts when food safety organisms, the integrity of sensitive on the blown bottle – which brings
cannot be compromised. With 40 years’ products is ensured, and shelf life is complete freedom in bottle design, with
experience in aseptic dairy bottling, lengthened. intricate bottle shapes able to be pro-
30 years’ experience in PET packaging, duced. Sidel calls this ‘full shape freedom’.
and 50 years’ experience in blowing, GOOD FOR COST AND THE Beverage producers can also custom-
Sidel understands the importance of ENVIRONMENT ise bottles with a large range of caps, both
hygiene and food safety. Innovations Today, Sidel’s fully dry decontamination flat and sports style. Dry decontamination
such as the first industrial PET rotating systems Predis and Capdis™ enable the of caps means there is no longer a need
blow moulder and the Combi integrated sterilisation of all types of preforms and for aluminium foil. As a result, flexibility
blow-fill-cap solution have created caps within an integrated blow-fill-cap of production is complemented by
new benchmarks for the industry. solution. They are cost-effective and lower costs and greater sustainability.
offer significant environmental benefits
FOOD SAFETY BREAKTHROUGH through using fewer chemicals than BEST RECOMMENDATION
In 1998, Sidel was the first to under- alternatives. No water is needed, as With more than 11 billion bottles produced
stand that it is simpler and safer to hydrogen peroxide mist is used to worldwide to date, and more than 60
decontaminate the preform than the decontaminate the preforms before production lines equipped with the Predis
bottle. This insight paved the way for heating them – a safer solution. system, Sidel has achieved a high level
the first preform decontamination The completely aseptic filling environ­ of customer satisfaction and experiences
technology, Predis™, which allowed ment of the Combi Predis FMa allows numerous repeat orders, which is ulti-
to create a full aseptic Combi Predis up to 120 hours continuous produc- mately the best recommendation for the
FMa of today. tion without cleaning. When cleaning technology.
When this technology replaces wet and sterilisation are required between By drawing on Sidel’s long history of
bottle sterilisation and blowing-filling-­ ‘bottle-to-bottle’ production, they can innovation, customers can enjoy food
capping are combined in a single inte- easily be carried out in only three hours. safety, product integrity and brand pro-
grated system, the highest standards tection – with no compromises.
of hygiene are achieved for production ‘FULL SHAPE FREEDOM’
of juices, nectars and dairy drinks. As the decontamination is applied on
Packaging is protected from micro-­ preforms, there is no thermal stress

TETRA LAVAL 2013/2014 55

SIDEL SOLUTIONS

Food safety is non-negotiable

A loss of consumer trust in a product is one of the most feared
scenarios for any food or beverage manufacturer. Sid Johari,
Executive Vice President, Industrial Operations, talks about the
driving forces behind food safety.

US Food and Drug Administration (FDA).

Regulations on resin are very strict:
suppliers must deliver two certificates
approving their material for direct food
contact: the Material Safety Data Sheet
(MSDS), giving information about the
PET resin and its compliance with food;
solution for their beverages, from and the Technical Data Sheet (TDS),
hygienic design to assembly, installa- related to the resin’s performance.
tion and maintenance support.
Q. DOES PET LIGHTWEIGHTING
Q. WHY ARE TRACEABILITY AFFECT PRODUCT INTEGRITY?
Q. HAVE FOOD SAFETY SCAN- PRACTICES SO IMPORTANT? A: It does not affect food safety but, as
DALS SHAKEN CONSUMER A: Traceability gives access to factory it decreases PET barrier performance,
CONFIDENCE? information, which is crucial if con- it requires accurate testing of material
A: Consumers are more aware of tamination occurs. With Sidel’s Effi- permeability to ensure the expected
where food and drink comes from ciency Improvement Tools (EIT™), shelf life of the beverage and to avoid
and what it contains. They question tracking solutions can be implemented contamination risk. Manufacturers need
what’s on the label and hold a brand on any production line. The line can to consider other potential risks, such
responsible if the contents deviate be monitored and users helped to as ink jet for bottle marking or label
from what is stated. Using powerful improve efficiency and traceability. glue, which could go through the thin
social channels such as Twitter and PET barrier.
Facebook, they can drive major Q. HOW BIG A ROLE DOES
change and insist on transparency. PACKAGING PLAY IN Q. HOW DOES HYGIENIC DESIGN
PROTECTING FOOD? HELP MAINTAIN FOOD SAFETY?
Q. HOW DO MANUFACTURERS A: Packaging is in direct contact with A: It is a MUST. Hygienic design means
AND EQUIPMENT SUPPLIERS the product. Whether it’s PET, glass or surfaces that are in contact with food –
MAINTAIN FOOD SAFETY? can, it needs to meet the strictest safety, the surface finish, construction and
A: Food safety is a prerequisite for hygiene and legislative requirements. fabrication, installation, operation and
responsible business. Most manufac- So does production equipment: every main­tenance - must be made from
turers work with all stakeholders across part has to be carefully designed to smooth, non-toxic, non-absorbent and
the supply chain to ensure quality and meet high standards. corrosion-­resistant materials.
traceability − from sourcing of raw in-
gredients to manufacturing, filling and Q. HOW DOES PET LIVE UP TO Q. ONCE EQUIPMENT HAS BEEN
packing to distribution. FOOD SAFETY STANDARDS? INSTALLED, IS SIDEL INVOLVED
At Sidel, we have in-house expert CAN MANUFACTURERS BE IN MAINTAINING FOOD SAFETY?
scientists, engineers and technicians SURE THE PET RESIN THEY A: First class service is our top priority.
devoted to the safety and integrity of USE IS SAFE? We provide maintenance manuals and
our customers’ products. We collabo- A: PET has been thoroughly reviewed procedures; customised training; HACCP
rate with Tetra Pak Processing Systems and approved as safe for contact with (hazard analysis and critical control points)
to give customers a reliable global foods and drinks by, among others, the plans and methods, and much more.

56 TETRA LAVAL 2013/2014

Light, strong and cost effective
A holistic approach to product design is behind Sidel’s next generation
of PET bottles for still water and drinks. Combining the RightWeightTM
design concept with the StarLiteTM base bottle, the new Sidel PET
bottle weighs less, remains rigid all along the supply chain,
and requires less energy to produce. And all without compro-
­mising on product quality or customer experience.

Sidel RightWeight is a design concept

aiming to create the perfect package
for still water and drinks. Each product
has its own RightWeight. Identifying it
requires an analysis of brand goals,
supply chain conditions, industrial pro­ blowing pressure for the bottle is just 20 26/22 neck finish. This step reduces
duction capabilities and consumer bars. In many cases the bottles can match bottle weight by 15 per cent of weight
expectations. When this approach is the top-load performance of nitrogen-­ while keeping the bottle compatible
combined with the unique, prize winning assisted ultra-lightweight bottles but with existing standard 26/22 caps.
bottle base StarLite, the dream of a PET without the use of nitrogen, leading to Both the StarLite base and the Right-
bottle with increased resistance, low further cost and energy savings. Weight bottle can be easily adapted to
package weight and less energy con- “Typically the goal is to reach 30 kg existing production lines, including the
sumption comes true. or more top-load performance to ensure new Sidel Matrix™ system for liquid
“Beverage producers are increas- a bottle can withstand the rigours of packaging.
ingly striving to unlock the value of a the supply chain,” adds Bunel. “At this
PET bottle across their entire supply weight most ultra-lightweight bottles in the
chain from concept to consumer,” market have to achieve this by using
explains Christophe Bunel, Head of nitrogen. The RightWeight bottles can
Packaging Care & Development at achieve even more without doing so.”
FACTS
Sidel. “To achieve this, a bottle must
be lighter, of course, but also stay NO SPILLING STARLITE WINS AWARD The Sidel StarLite
attractive, protect the beverage and The increased resistance of the Right- bottle base design scooped the Best Environ­­
ensure high consumer satisfaction. Weight bottle helps eliminate uninten- mental Sustainability Initiative at the 2013
At Sidel we call this ‘rightweighting’.” tional spilling through ‘over-squeezing’, Global Bottled Water Awards. Using less
which is often experienced by con- raw material, the StarLite base design
INCREASED RESISTANCE sumers when ultra-light bottles are makes it possible to reduce the bottle weight
To increase rigidity in the base and used. Increased resistance also makes and hence the consumption of energy in
the production process.
reduce the amount of plastic used, Sidel’s it easier to unscrew the cap. Stronger
StarLite bottle base uses two proprietary resistance also means the RightWeight More benefits of StarLite base design:
PET design innovations: the Edge bottle is more likely to keep its attrac- • Increases top-load dent resistance of
Beam™ and the Smart Disc™. These tive appearance right along the supply up to 30 per cent when the bottle is on a
improve stiffness of the base and rein- chain to the supermarket shelf. pallet, and up to 55 per cent in side-load
resistance when the bottle is on a con­
force it to prevent deformation.
veyor or in a vending machine
The RightWeight bottle weighs just CAN BE ADAPTED TO
7.95 grams, compared with an average EXISTING LINES • Increases overall pallet integrity by up
to 50 per cent during transportation
of 12 grams for commercial 0.5 litre A major factor in the development of
water bottles available today. Yet it the RightWeight bottle design was the • Improves bottles resistance in extreme
offers a top-load performance of 33 complete redesign and optimisation temperatures, hot or cold, making it
especially useful for storage in harsh
kilograms without nitrogen dosing, of the preform by Sidel’s packaging
conditions.
using standard 26/22 caps, resulting experts. Part of the new preform design
in large raw-material cost savings. The was an evolution of the standard

TETRA LAVAL 2013/2014 57

SIDEL SUSTAINABILITY

Debunking the myths

Packaging in PET, which has been safely used for many years and which contributes to a more sustainable
use of our planet’s resources, is sometimes portrayed as a danger to food. Below, Luc Desoutter, Sustainability
Officer at Sidel, answers questions on how PET is completely safe.

fully recyclable, light and gas-resistant,

and protects beverages across the supply
chain. The recycling benefits of PET are
also being taken beyond the beverage
industry, with PET being recycled to
create a wide range of different products,
from sportswear to furniture.

Q. DO YOU THINK THERE’S REASON

TO BE CONCERNED ABOUT THE
FUTURE OF PET?
A. Despite the confusion and fear that
we’ve observed, we don’t see a mea-
surable impact on the PET business –
in fact, it keeps growing. PET is now the
one of the main packaging formats of
choice for sensitive beverages, such as
juices, sports drinks, drinkable teas and
coffees, and is the leading packaging
format for water. It is also the most
flexible packaging format, via innovative
and attractive commercial bottle designs,
Q. IN RECENT YEARS, CONSUM- the general public and cause concern providing a great and safe consumer
ERS HAVE RECEIVED LOTS OF about a material that is completely safe. experience.
INCONSISTENT INFORMATION
REGARDING THE SAFETY OF PET. Q. WASN’T THERE ALSO A
WHAT’S THE REAL STORY? FALSE ACCUSATION ABOUT
A. The evidence shows that PET is PET BEING CARCINOGENIC?
completely safe. It’s been in use for A. Yes, there was a doctor who claimed
over 30 years with no side effects. Its that PET bottles became carcinogenic
safety has been confirmed by all the when exposed to summer heat inside
official food safety organisations. cars. This was later proven to be a
hoax. Getting the correct information
Q. WHY DID THE PUBLIC HEAR out to the average consumer remains
A DIFFERENT STORY? a challenge. There are a number of
A. The problems arose because incom- advantages of PET that go largely
plete scientific research was published unreported. Significant advances
and reported in the media, causing have been made in lightweighting,
public fear. For example, PET was reducing the amount of PET used in
linked to Bisphenol A (BPA), when it producing a bottle, which has environ­
quite clearly isn’t. All the official agencies mental benefits in terms of less material
have made this clear. Unfortunately required, as well as reducing the environ­
some NGOs got involved in pseudo-­ mental impact of transportation through
scientific debates, which only served lowering the weight of the end product.
to strengthen this link in the minds of PET is tough, shatter­proof, versatile,

58 TETRA LAVAL 2013/2014

DELAVAL
DeLaval has created a sustainable dairy farming concept that aims to reduce farms’
environmental footprint while improving milk production, farm profitability and the well-being
of the people and animals involved. DeLaval products, systems and services ensure
food safety and efficiency are the focus at every step in milk production.
DELAVAL IN TWO MINUTES

SOLUTIONS
DeLaval offers automatic and conventional milking systems, cooling and feeding
systems, effluent & housing systems and farm management support systems.
DeLaval customers can also choose from a wide range of services and consum-
ables which are grouped in four portfolios: liners & tubes, farm supplies, services
& original parts, and milk quality & animal health.

COUNTRIES SERVED NET SALES 2013 NUMBER OF FACTORIES R&D UNITS

>100 965 MILLION EURO

18 7

SUSTAINABLE DAIRY FARMING

Our goal is to reduce the environmental footprint of farms, while improving
milk production, farm profitability and the well-being of the people and animals
involved. We believe the goal of Sustainable Dairy Farming can be achieved by
supporting dairy farmers with smart technology and services to continuously
increase resource efficiency on farm. To put it another way, we support them
to do more with less.

FOOD FOR DEVELOPMENT

We provide expertise and experience to enable Tetra Pak and DeLaval customers, as
well as governments and community-based organisations, to provide milk to children
and communities in developing countries around the world. We initiate long-term busi-
ness development projects to encourage demand for locally produced dairy products
and transform subsistence smallholders into commercially viable farmers.

60 TETRA LAVAL 2013/2014

OUR CUSTOMERS
More and more dairy farmers are turning to technology to ensure they can optimise
their milk production and cows’ well-being. At DeLaval, we add value by meeting
and exceeding our customers’ requirements on quality, productivity and safety.
We design, manufacture and supply integrated milking solutions with the needs
of dairy farmers in mind. At all times. We serve customers in more than 100
countries around the globe.

OUR BRAND
DeLaval is a world leader in the dairy farming industry, providing integrated
milking solutions designed to improve dairy farmers’ production, animal
welfare and overall quality of life.

DELAVAL SALES 2008 –2013

1,200 M EURO
SALES OFFICES NUMBER OF EMPLOYEES DECEMBER 2013
1,000

35 4,520
800

600

400

200

0
2008 2009 2010 2011 2012 2013

RESEARCH AND INNOVATION

Research and innovation are central to the continued success of DeLaval
supporting our customers and we have seven R&D centres across the globe.
We work closely with a worldwide network of farmers, academics, dedi-
cated research facilities, scientists, sales teams and authorised dealers.

TETRA LAVAL 2013/2014 61

DELAVAL HIGHLIGHTS 2013/2014

03
07

10

09.

06.
08.

62 TETRA LAVAL 2013/2014

2013/2014
01. LONG-LIVED ANIMALS BOOST cleaning, reduced energy consumption, and 08. 22,000 COWS MONITORED BY
PROFITABILITY less negative impact on the environment. HERD NAVIGATOR™
In 2013, renowned scientists, animal Unlike conventional detergent that has to The demand for Herd Navigator™ is
health experts, farmers and journalists be used with water at a temperature of increasing, demonstrating the high value
from around the globe joined DeLaval for 75°C, RTD™ is effective at 45°C. that advanced herd management solu­
the Cow Longevity Conference at Hamra tions can add to today’s dairy opera­
Farm in Sweden. The goal was to dis­ 05. VMS PROVIDES ACCURATE
tions. The technology is designed to help
cuss how the animals’ lifespan can sup­ COW HEALTH MONITORING producers improve reproduction and
port farmers in becoming more sustain­ From 2013, VMS™ became available in animal welfare, increase milk production
able and profitable. One main conclusion several configurations. DeLaval VMS™ and ensure milk quality, and is used in
was that barns designed around cows’ Supra includes the DeLaval online cell combination with VMS.
needs improve quality of life for the ani­ counter OCC, which monitors somatic
mals and farm workers. cells in a milk sample. OCC provides 09. 10,000 VMS SALES SHOW THE
consistent and accurate information on a WAY AHEAD
02. 15 YEARS OF GIVING GREAT cow’s health at every milking. The top of Automated milking systems are quickly
VALUE the range VMS™ Supra + works with Herd becoming the norm as dairy producers
One of the first DeLaval automated milking Navigator, an advanced animal health tool around the globe look for greater flexibility,
systems, the upgradeable DeLaval volun­ that detects which cows need attention reliable controls and better milking.
tary milking system VMS™ was installed and recommends a course of action. DeLaval recently sold its 10,000th VMS™
on January 20, 1999 on the Andersson to Glenirvine Farms in Fergus, Ontario.
family farm in Isby, Sweden. Now, 15 years 06. NEW ZEALAND FARM GOES “With a DeLaval milking robot, we feel we
later, it is still creating great value. “If we LARGE-SCALE can spend our time in the barn more effi­
continue with maintenance, the VMS™ In New Zealand DeLaval has installed 24 ciently and on the management details
will work for another 15 years without any VMS™ units in a traditional European-style that will help us develop and improve our
problems. DeLaval has good products, barn, along with Herd Navigator™. The herd,” said Amanda Den Haan.
good quality, and good service,” says Van Leeuwen family, from Makihihi in the
Lars Andersson. South Island, chose DeLaval because of 10. TEN YEARS OF SWINGING COW
proven VMS performance and the leading BRUSHES
03. AMR™ BOOST FARMS technology of Herd Navigator™. To celebrate the tenth anniversary of the
SUSTAINABILITY DeLaval swinging cow brush SCB and
One of the first commercial installations 07. CLOVER IS A SUCCESS IN THE more than 50,000 sales, DeLaval created
of DeLaval automatic milking rotary AMR™ US MARKET a limited edition brush. It has a premium
in Europe went into operation in early 2013. DeLaval Clover™ liner is now milking an look, an eccentric cylinder and a time
Laproma Farm in Germany is now making estimated 200,000 cows in the US after its counter which shows how many hours
the transition from milking management to official launch in September 2013. The the cows have used the brush and allows
total farm management, bringing greater liner’s thin, concave side walls and smooth, more accurate follow-up, so that worn
efficiency, productivity and business sus­ rounded corners offer a firm yet gentle parts can be replaced without disrupting
tainability. Further AMR™s will be installed grip of the teat. This design helps ensure operation.
by summer 2014: up to 750 cows will be the liner stays in the correct milking position
milked automatically, reducing work hours and provides excellent massage, offering
per cow and year by more than 50 per cent. the cows maximum milking comfort.
Customer satisfaction is unprecedented,
04. DETERGENT OFFERS SUPERIOR with 95 per cent of new users repurchasing
CLEANING AND ENERGY SAVINGS and reporting improved teat health,
More and more dairy farms are switching faster milking, more milk per cow, lower
to DeLaval reduced temperature detergent somatic cell counts and fewer liner slips.
RTD™. RTD™ brings the benefits of superior

TETRA LAVAL 2013/2014 63

DELAVAL COMMENTS BY THE CEO

Encouraging development
for the future

The year ended on a high with the STRONG DEMAND IN

trend continuing well into 2014. The KEY MARKETS
first half of 2013 was challenging though, The growth trend for automated milking
with our customers experiencing great systems continued in 2013. DeLaval’s
volatility which negatively affected our Automated Milking Rotary™ and Vol-
business. The 2012 trend of low milk untary Milking Systems™ showed a
prices and high feed prices continued positive trend. We won large contracts
to prevail in the market. During the from, not only European customers, but
second half of the year, investment in also those in New Zealand, Australia
capital goods equipment started in- and North America. Our customers
creasing due to more favourable market growing interest for collecting and
conditions. As a result, the autumn analysing data from their herds is
saw double-digit sales growth. reflected in the increased demand for
Due to the ongoing consolidation automated smart solutions, such as
the overall market for capital goods our Herd Navigator, which allows you
and aftermarket products and services to analyse milk quality and productivity.
decreased in 2013, but DeLaval man- Our offer of conventional milking
aged to gain market shares. For the systems also enjoyed good growth,
full year DeLaval net sales amounted to particularly in North America and
964,5 million in prevailing currencies.

Our customers growing interest for collecting and analysing data from
their herds is reflected in the increased demand for automated smart
solutions, such as our Herd Navigator, which allows you to analyse
milk quality and productivity.

64 TETRA LAVAL 2013/2014

China. South East Asian countries, LAUNCH OF SEVERAL NEW
including Vietnam and Thailand, started INNOVATIVE PRODUCTS AND
to rebuild their dairy sectors; DeLaval CONTINUED COMMITMENT TO
captured several prestigious contracts OFFERING A FULL RANGE
there and as a result experienced good During the year DeLaval launched
growth in these markets. several innovations such as the DeLaval
Clover™ liner, low-temperature cleaning
EFFICIENCY IMPROVEMENTS solutions, and PASS, the DeLaval
In order to continue to meet customer Parlor Analysis and Simulation ServiceTM.
demands across the globe as well as The innovative and gentle milking
managing market volatility with our foot DeLaval Clover™ liner has been re-
print, we opened five new productions ceived well by our customers expecting
sites in: China, Poland and Brazil. In excellent milking performance. The
conclusion, through efficiency improve­ Reduced Temperature DetergentTM
ments and increased local presence, (RTD) with patented technology is used
DeLaval is now better equipped to for cleaning milking systems and bulk
handle the shifting demands in the tanks. Through this smart technology,
markets. the dairy farmer is able to reduce

TETRA LAVAL 2013/2014 65

DELAVAL COMMENTS BY THE CEO

energy consumption by up to 50 per how cow longevity could support

cent, while safeguarding milk quality farmers in their efforts towards more
and therefore still qualifying for milk sustainable and profitable production.
premiums. PASS was launched by All in all, anchored in our vision, making
our smart farming and advisory ser- sustainable food production possible,
vices: using this service we can help DeLaval will always be at the forefront
our customers to undertake a complete of developing new processes and
analysis of their milking routines and technologies to ensure food protec-
compare them to industry standards. tion and animal health, while at the
With the support of DeLaval VPR200, same time improving dairy farmers’
our unique heavy-duty tablet, the service operational efficiency.
technician also can give advice on
how to improve milking performance POSITIVE OUTLOOK
and farm profitability. One of the strengths of being a privately
owned company is the ability to have
MAKING SUSTAINABLE FOOD a truly long term perspective. As a
PRODUCTION POSSIBLE supplier of quality milk production we
The consumption of dairy products is are able to manage the ups and downs
increasing and the common needs of this sector typically brings with it and
markets are: food safety, improving can be there for the customer. We have
quality, and increasing productivity. been doing so for over 130 years.
These requirements serve DeLaval well. Our outlook for 2014 is positive,
For instance, through DeLaval’s herd supported by double-digit growth in
management systems such as the the autumn of last year. Now that milk
DelPro™ Farm Manager, data about a prices are healthy, dairy farmers are
farm’s milk can be collected, processed investing again after some turbulent
and presented in a way that allows the years characterised by uncertain market
farmer to make well-informed, decisions. conditions. With the new Farm Bill in
Our wide range of aftermarket prod- the US and EU’s common agriculture
ucts and services, including hygienic policy (CAP) we see opportunities
and animal welfare products, aim to together with the growing demand for
meet the high expectations of our increased milk production.
customers. The Cow Longevity Con- With our devoted and skilful employees
ference, arranged by DeLaval at the and the confidence of our customers,
Hamra Farm in Sweden in August 2013, I am convinced that 2014 will be a
is another good example of our commit­ year of growth for DeLaval.
ment to food quality and animal welfare.
About 100 scientists, experts, farmers Joakim Rosengren
and journalists gathered to discuss

66 TETRA LAVAL 2013/2014

 DELAVAL GROUP MANAGEMENT TEAM

01.

02. 03. 04.

05. 06. 07.

08.

01. J
 oakim Rosengren
President & CEO
02. M
 agnus Berg
Supply Chain
03. J
 onas Hällman
BA Milking Systems
04. L
 ars Johansson
Corporate Communications
05. M
 ikael Landberg
Human Resources
09.
06. J
 ohan Ledel
Group Finance & IS
07. P
 aul Löfgren
Group Marketing & Sales
08. T
 im Nicolaï
BA Aftermarket, Services
& Barn Environment
09. H
 enrik Sundell
Legal Affairs

TETRA LAVAL 2013/2014 67

DELAVAL
SIDEL STRATEGIC DIRECTIONS

VISION

We make sustainable
food production possible

MISSION

We team up with customers for results that last. From our leading position in dairy farming, we innovate and
expand in new segments and new geographies. We provide integrated solutions and ensure that everywhere
we do business, we lead. We exist for the customer, around the clock.

STRATEGIC PRIORITIES

• Profitable growth in geographies

• Number one in farm management
• Aggressively growing consumables and service businesses
• Operational excellence driving cost and quality leadership

68 TETRA LAVAL 2013/2014

CORE VALUES

PASSION • We share our knowledge, support • We are proud of who we are and
• We share a passion for delivering each other and enjoy being part of humbly reflect this through our
customer value. a team. attitude and behaviour.
• We are proud of our heritage and • We encourage diversity and • We stay true to our values.
our success. appreciate the creativity that
• From our leading position in dairy comes from a mix of cultures, PARTNERSHIPS
farming, we expand our business gender, sexual orientation, religions, • Our customers, their needs and
with passion. experiences and personalities. expectations, are the starting point
• We are part of a global network. for everything we do.
• This passion distinguishes us from
other companies. • Our dealers are business partners
PROFESSIONALS with whom we jointly deliver
PEOPLE • We deliver quality in everything we do. customer values.
• We have the ability and are trusted • We have clear responsibilities and • DeLaval employees, our dealers
to make decisions within our area fulfil our commitments. and customers partner for long-
of responsibility. • We listen, learn, innovate and term business results.
• We build our success on compe­ constantly improve.
tence and constantly invest in per­
sonal development.

ORGANISATION

PRESIDENT & CEO

CORPORATE COMMUNICATIONS GROUP FINANCE & IS

LEGAL AFFAIRS HUMAN RESOURCES

Business area aftermarket, Business area

Supply Chain Marketing and Sales
services & barn environment milking systems

TETRA LAVAL 2013/2014 69

DELAVAL MARKET

Market growth
World production of cow’s milk grew An increase in dairy trade is a conse- its business in the established EU and
between 1.0 and 1.5 per cent , which is quence of the fast-growing demand in US markets as a result of these new
lower than the average growth achieved developing countries, which exceeds agricultural policies along with continued
in recent years. 2013 was in many ways the development of local dairy produc- farm consolidation and an increase in
a sharp contrast to 2012, with a slow tion and processing. As an example, demand for automation, farm man-
start and a dynamic finish in terms of China has experienced two years of agement, milk quality and animal health
milk production. In the first half of 2013, decline in its domestic dairy produc- assurance systems. These markets
many countries in the EU were still tion despite efforts to restructure its will also benefit from higher dairy
suffering from the consequences of farming industry. As a consequence, exports driven by strong underlying
high feed costs, low forage quality, developing countries are expected to international demand for dairy products
and delayed spring weather. In New significantly increase their contribution from key import regions.
Zealand, a severe drought occurred to dairy trade over the next decade.
from February 2013 onwards, which COMPETITION
resulted in massive culling and a se- MARKET DEVELOPMENT The full-year total market sales decline
vere decline in milk production com- Production shortfalls in China and Russia of 3.9 per cent, along with a sharp
pared to the first half of 2012. boosted the demand for imports in these drop in the first half and strong growth
Lower feed prices, combined with markets. Meanwhile, price-sensitive in the second, made calendar year
high milk prices caused by limited markets such as Africa actually imported 2013 one of the most volatile in recent
supply, boosted milk delivery in the EU fewer products and turned instead to history. Despite that, we increased our
from the summer onwards. Year-on-year cheaper alternatives. Southeast Asia market share and we note particularly
milk production levels in the region continued to show steady growth in strong performance in the area of
were 4.2 per cent higher than Q4 terms of dairy demand during the year. conventional milking systems. The strong
2012. Production in New Zealand for Key consumer markets in the EU and presence of global competitors placed
the full 2013/14 period was up between the US largely recovered within the our market share and margins in the
6.0 per cent and 7.0 per cent but was broader economy and modest growth automatic milking systems market
still not enough to cover the growing is tipped for 2014. under pressure in North America.
demand in the country’s main export The introduction of the new Common The competitive environment has
market China. US milk production has Agriculture Policy (CAP) and the aban­ changed significantly over the past
so far failed to respond to favourable doning of milk quotas in the EU are decade. Market consolidation continued
milk margins. In the last four months likely to spark intensification in pro- – driven by a number of acquisitions.
of 2013, production was up just 0.4 per duction among EU countries. This is A number of companies have begun
cent from the previous year. Regardless, likely to be especially evident in coun- to invest in automated milking systems
margins are positive and herd rebuilding tries with advantageous cost structures, driven by customer demands for im-
is underway. such as Denmark, Germany, Ireland, proved production efficiency and
the Netherlands and Poland. Varying lower labour costs.
KEY MARKET DRIVERS degrees of uncertainty are expected The major business growth among
The global demand for dairy products in the EU in the first half of 2014 local competitors was achieved by
is expected to improve as 2014 pro- pending national clarity on the CAP specialised high-tech/innovative com-
gresses. Long-term demand is ex- implementation plans. In the US, the panies as well as full solution suppliers
pected to increase 2.0 per cent per new Farm Bill will come into effect in offering among other solutions farm
annum during the period 2012–2017. September 2014 and features some advisory services and financing.
This is largely driven by increasing ur- important new sections. For example,
banisation, a growing middle class, farmers in US will have the opportunity OUTLOOK
and higher per capita consumption in to sign up for milk-over-feed margin The demand for raw milk demand is
developing countries. The continued insurance. This move is designed to expected to grow substantially over
demand for dairy products is driving significantly improve farmers’ long-term the next decade. The demand is likely
both the interest in and investments to financial stability. to be stronger in the parts of the
improve production capacity worldwide. DeLaval has the opportunity to grow world in which urban middle class

70 TETRA LAVAL 2013/2014

LONG TERM – GLOBAL MILK DEMAND 2020
Strong demand sustained CAGR* 2.0%

for consumption. The concentration

and growth of farms facilitates the
control of raw milk quality from the
Russia 1.6%
farm and increasingly professional farm
EU 0.5% management secures that the factors
US 1.3% that influence food safety on the farm
China 2.8%
are better controlled.
%
Global milk production is projected
>8 India 3.1% to increase 1.9-2.0 per cent (CAGR)
8 between 2012 and 2017, with a short-
Latin America 1.9% term peak in 2014/2015 driven by the
4
2 EU and the US. The majority of the 75
1 million tonnes of additional milk produced
0.5 during the period is anticipated to come
<0 from developing countries. The EU,
the US and Oceania are all expected
*CAGR = Compound Annual Growth Rate
to intensify milk production through
yield improvements and restructuring
towards large-scale farms. Develop-
GROWTH IN MILK PRODUCTION 2020
ing countries are likely to increase
Long term growth in milk production CAGR* 2.0%
herd population and establish modern
dairy value chains.
Feed prices is 2014 are likely to remain
on lower levels than the recent peak
year of 2013 but are dependent upon
harvest volumes. Labour costs, however,
are rising rapidly in many countries.
Russia 1.0% Access to reliable skilled labourers can
EU28
0.6 – 1.1% often prove difficult for dairy farmers.
US 1.6% This is one of the factors expected to
China 2.4% lead to a greater interest in automated
%
India 2.9% solutions. With considerable volatility
>6
within both milk prices and production
6
Brazil 1.7% costs expected to continue, the ability
4
to actually lower operational expenses
2
during periods of abundant global supply
1 NZ 1.5%
0.5
will naturally be a distinct advantage for
<0
Global 1.9 – 2.0% today’s dairy farmers.
Global milk prices are likely to remain
at high level in the first half of 2014 and
*CAGR = Compound Annual Growth Rate stay at higher-than-average level than
in previous years. A slight correction
is anticipated during the second half
consumers are increasing in number reliable solutions for milking, animal of 2014 due to greater production re-
the quickest. This continued demand management comfort and health, safe sponse. Overall, an upward trend in dairy
is in turn driving investments in pro- and secure manure handling, as well prices is expected in the long term.
duction capacity. as choosing effective service partners
In regions where dairy farming is well and quality consumables – all areas in
established the trend is that farms are which DeLaval is a world leader. IFCN based on preliminary estimations of
both fewer and larger. The shift to larger One of the most important factors cow milk production and deliveries growth in
farms poses several types of chal- in successfully managing larger farms 60 main milk producing countries
lenges. These include the effective is the challenge of securing that milk is IDF, World Dairy Situation Report October
planning of the farm layout, choosing produced in a way that makes it safe 2013

TETRA LAVAL 2013/2014 71

DELAVAL CUSTOMERS

DeLaval voluntary milking

system VMS™ boosts milk yield
and quality in the Netherlands
Jan Teade Kooistra is a man with a plan. A fourth-generation farmer in the Netherlands whose family
has worked the land for 100 years, Kooistra has 160 cows and 125 calves. He wants to increase the
number of cows by 50 per cent to 240 by 2020.

It’s an ambitious goal. But Kooistra too complicated.”

knows that the future of farming lies in But DeLaval encouraged Kooistra
increased and higher quality milk pro- to visit other farms which were using
duction, as well as in saving energy, its VMS equipment, convincing him that
automation and passing on experi- VMS™ was right for his farm. VMS™ will
ence to the next generation. allow him to manage more cows with
“Farming,” he says, “is a real family the same resources, a vital cost saving.
thing.” Kooistra says he chose DeLaval as
his supplier because “DeLaval has a
WORKING TO MAKE IT HAPPEN lot of experience in the dairy business
To make his plan a reality, Kooistra and I believe in the company’s innova-
turned to DeLaval. Initially, he thought tion”. He notes that DeLaval works
parlour milking would be most suitable closely with customers and provides
for his needs. But after looking at the a high level of support.
benefits of DeLaval voluntary milking With DeLaval’s help, he built a new
system VMS™, Kooistra decided that barn to house the VMS equipment.
was the way to go. Three units have been installed and
“He didn’t change his mind overnight,” robotic milking began in August 2013.
says Erik Pel, DeLaval Market Devel- “The old barn was too small, costs
opment Manager, LSO Benelux. “At were too high and work was too
first, he thought robotic milking was hard,” Kooistra says.

Chinese mega farms rely on DeLaval

To address concerns over food safety DeLaval has been working with mega company (part of the JAPFA Group)
and productivity and to meet market farms since 2004, supplying equipment and Indonesian conglomerate Salim
demand, the dairy farming industry in in accordance with the Inner Mongolia Group.
China is quickly consolidating. In China Mengniu Austasia Model Dairy Farm DeLaval provided the farm with all its
there is a trend to build more mega standard. The guidelines for more milking equipment, a parallel parlour,
farms, more often than not with over productive farm techniques were a rotary and an automatic Voluntary
1,000 milking cows. In some cases, established by China Mengniu Dairy Milking Systems™.
with over 5,000 cows on one site. Company Limited, Australia’s AustAsia Today, AustAsia operates four mega

72 TETRA LAVAL 2013/2014

 “We feel this is part of our responsibility,”
Pel says. “We’re sitting there with him
and helping him get the most out of the
data and the equipment.”
Kooistra also has an DeLaval InServiceTM
contract, which means regular, preventive
maintenance for his equipment, leading
to less downtime and higher, better-quality
milk yield.

He also mentions that in 2015 the tage for selling his products domesti- PLANNING NEXT STEPS
European Union milk quota system will cally and also in the export market. Although pleased with what he’s accom-
be abolished and his farm needs to “We make good and healthy dairy plished, Kooistra is already planning his
be positioned to produce more milk. products in Holland, and the most im- next steps. He hopes to install a fourth
portant product right now is baby milk VMS™ and is considering the DeLaval
MODERNISING PAYS OFF for export,” he says. Herd Navigator™ system.
To celebrate completion of the barn, An added benefit of VMS™ is more Herd Navigator™ works with VMS™ to
DeLaval and Kooistra organised an leisure time. analyse and report on milk samples,
open house to showcase the new “With the old system, I was always helping to determine the health of each
equipment and 1,200 people turned out. stressing to be home by 4pm to start cow and creating a complete system.
“We were surprised there were so the milking,” Kooista recalls. “Now, Even with modern technology, Kooistra
many, but it was an exciting day and the milking just starts.” knows farming can be tough: “There are
a good signal for the dairy sector,” But VMS™ provides much more many regulations, prices go up and down
Kooistra says proudly. than just extra free time, adds Pel. and it’s 24 hours a day, seven days a week.”
Kooistra is already seeing the bene- “It’s a management tool,” he says. But despite the increasing challenges,
fits of VMS™ and the new barn. The Coupled with VMS™, Kooistra uses he can’t imagine doing anything else.
milk yield per cow at his farm has in- DelPro™ Farm Manager to gather and “You have to manage all the elements
creased about 15 per cent, he says. In analyse data on his cows. DelPro and when you get results, you get a real
just the first three weeks of robotic helps him create reports on herd and kick,” he says.
milking, yield per cow was up to 30 milking systems as well as keep track “The future looks good,” he adds.
kilos from 26 kilos per cow, per day. of the timing for artificial insemination “The world is asking for more food and
In addition, somatic cell count dropped and calculate feed rations. that’s good for us. Feed the world and
significantly, from 250,000 per millilitre Kooistra now has much more data everybody is happy.”
of milk to 135,000. That means better about each of his cows. DeLaval is
quality milk and better food protection. working with him to help him find
For Kooistra, that is a big advan- ways to make best use of that data.

farms on its own in China and is con­ more successful, people are even AustAsia was one of the first users in
sidering a fifth. Each of the company’s keener to copy the way they manage China and the best practitioner gained
farms has about 7,000 cows and the farms, and AustAsia has become a the expecting benefit from InService™ .
milking is a complicated process. star in the industry,” says John Yu, “InService™ really lets farmers have
DeLaval delivered all parlor equip­ Solution Management Director of LSO peace of mind,” says Lionel Li, National
ment for the farms. AustAsia is a China, “Their operations prove that Service Director of LSO China.
leader in China when it comes to our equipment and service supports
efficient operation of large-scale dairy successful farming.”
farms and effective use of automated In addition, AustAsia and DeLaval
equipment. have signed InService™ and Consum­
“With AustAsia becoming more and ables contracts for all AustAsia’s farms.

TETRA LAVAL 2013/2014 73

DELAVAL TECHNOLOGY

DeLaval remote farm connection

RFC popularity grows rapidly
With more than 2,400 RFC, now installed, data clearly shows that remote connection means
better control and efficiency in farm management.

The 2,000th RFC installation came just In addition, veterinarians, nutritionists us to support our farmer customers to a
four months after the 1,500th installa- and even financial advisors can access much greater extent than before,” says
tion. “That’s a clear sign that farmers the system and also provide virtual Shaul Tcherikover.
recognise just how useful the system support. “We can support the farmer more
is”, says Shaul Tcherikover, at DeLaval Remote help leads to major cost rapidly and more accurately than before
Farm management support systems. savings, since it often means advice as we are no longer confined to actual
RFC works with a secure internet can be given and problems solved visits if we require farm data to make a
connection to allow farmers to check without technicians and professionals decision.”
on their farms from a distance. It also having to travel long distances to farms. RFC is designed to work with DelPro™
lets experienced DeLaval engineers and And it brings instant access to a wider Farm Manager, allowing data to be sent
technicians provide remote support from group of knowledgeable DeLaval directly to technicians and others for
anywhere in the world, so problems technicians and engineers. analysis.
can be solved much more quickly. “Remote farm connections enable

74 TETRA LAVAL 2013/2014

 VPR 200 means
optimum operation
In order to maintain farm productivity, downtime should be avoided at
all costs, as that leads to loss of income and the risk of poorer milk quality.

DeLaval VPR 200 is the key to pre- tenance. DeLaval research shows that optimise operations and monitor equip-
ventive maintenance, which means VPR 200 and PASS can help farmers ment to avoid problems.
fewer equipment failures. Coupled with increase milk yields as much as 5.5 The VPR 200 is robust and can with-
the Parlor Analysis and Simulation per cent and cut milking time as stand tough barn environments. It can
Service tool, PASS, and the InService much as 30 per cent. be connected to the Internet, allowing
programme, DeLaval helps ensure That also translates into better milk farmers to watch instructional videos
that farms run optimally. quality, better food protection and more and share data with InService™ techni-
“It’s one thing to milk 15 cows by sustainable farming. cians‘ to get more detailed analysis of
hand if the equipment is on the blink, “By taking care of machinery and what’’s happening on their farms.
it’s quite another undertaking when preventing emergencies, a farmer can Launched at EuroTier 2012, Jidesjö
you have 400 or 4,000 cows that contribute to sustainability goals of says the VPR 200 improves on the VPR
need to be milked,” says Peter Jidesjö, doing more with less,” Jidesjö says. 100 and is “quicker and better than
Vice President Services & Original “The need for emergency replace- ever before.”
Parts at DeLaval. ments is reduced and at the same
”The same is true of manure handling, time both yield and quality of the milk
milk cooling, feeding etc. That’s why is increased.”
a comprehensive preventive mainte- VPR 200 helps farmers analyse every
nance service programme is a good aspect of milking. When connected to
investment.” PASS, the VPR 200 also measures
But VPR 200 means much more work time, routines and cow flow and
for farmers than just preventive main­ can provide detailed reports that help

TETRA LAVAL 2013/2014 75

DELAVAL SOLUTIONS

LactiFence teat dip triumphs

over tropical climate
In Brazil, finding an effective teat dip is a challenge. With LactiFenceTM barrier teat dip, DeLaval is helping
Brazilian farmers overcome climate issues.

Pre-launched in Brazil in October bacteria challenge,” Jongman says. DeLaval for several years now so we
2013, LactiFence has proven to pro- “Barrier products are not new for the had high expectations for this product
vide long-lasting barrier protection. Brazilian market but a product with this as well,” he says. “The first thing we
Having also been launched in the USA, level of barrier persistence is something noticed was that the condition of the
in August 2013, LactiFence will be fully new,” he adds. teats improved very fast on average.”
introduced in Brazil in September 2014. LactiFence is a ready-to-use lactic
Because of the country’s climate, REDUCING MASTITIS KEY TO acid barrier. It works by creating an
bacteria can be a problem for farmers, IMPROVED MILK QUALITY AND elastic film that helps prevent bacteria
says Barend Jongman, DeLaval Milk FOOD PROTECTION from entering the teat canal and the
quality and animal health Manager in Carlos Eduardo Guedes, a farmer from germicidal effect lasts for up to six
region Latin America. São Paulo and DeLaval customer, was hours, providing prolonged protection.
“LactiFence adds new possibilities one of those testing LactiFence. In addition, because of the dark colour
of mastitis reduction at farms with a “We have been using teat dips from of the LactiFence solution, it is easy

76 TETRA LAVAL 2013/2014

for farmers to see that cows’ teats have MILK QUALITY SPECIALISTS He adds: “Brazilian farmers show that
been dipped. That, says Jongman, is SUPPORT FARMERS with the right management and the help
an important benefit. But DeLaval support for farmers of the right products, milk with very high
Because LactiFence is quite viscous, doesn’t stop with the sale of LactiFence. quality can be produced even in a tropical
DeLaval has introduced a special teat In Brazil, DeLaval has more than 20 milk climate.”
cup to help get the maximum effect quality specialists working with farmers
from the product. The viscosity allows it to bring about improvements.
to cling exceptionally well to teats, and “They are highly and continuously
emollients in LactiFence help hydrate trained,” says Jongman. “LactiFence is
and soften teat skin. part of a complete DeLaval system of
LactiFence can also be combined products, farm training and milk quality
with DeLaval Biofoam as a pre-dip and management tools enabling farmers to
teat cleaner, Jongman notes. produce milk with the best possible
quality in a profitable way.”

TETRA LAVAL 2013/2014 77

DELAVAL SUSTAINABILITY

Sustainability improvements pay off

When Dan DeGroot, owner of Skyridge Farms in the USA, decided to revamp his farm to save energy
and water as well as improve cow comfort for better sustainability he turned to DeLaval for help.

DeGroot’s efforts paid off. In 2013, he groups, DeLaval Top Outlet Claws, be expanded with pumps that were just
won the U.S. Dairy award for Out- Clover Liners and C-125 wash controls. half the size of those used previously.
standing Dairy Farm Sustainability. In With the help of DeLaval equipment,
announcing the award, U.S. Dairy small amounts of milk can be cooled FOCUS ON COW COMFORT
called DeGroot a “pioneer.” quickly. That helps save energy, as well Founded in 1997, in Washington state,
as ensure better quality and food pro- Skyridge has 3,200 cows and DeGroot
BETTER QUALITY WITH tection. also grows corn, alfalfa, apples and
DELAVAL EQUIPMENT Skyridge also has an InService™ cherries.
DeLaval provided a Double 30 EnDur- contract for preventive maintenance. He focuses on cow comfort, which
ance Parallel milking parlour and a Double With InService, equipment is kept in means healthier cows producing more
20 EnDurance Parallel parlour to Sky- the best shape, meaning equipment is milk. And, in turn, food protection is im-
ridge. In addition, DeLaval provided a offline less of the time and profitability proved.
wide range of support equipment in- is improved. “We’re trying to help feed the world in
cluding Swing cow brush, Baseline DeLaval also worked with the local a responsible way and we do this primar-
Plate coolers, Yukon Snap Instant utility company to upgrade the farm ily through cow comfort,” DeGroot says.
Cooling, Milk Storage Silos, MPC 150, equipment to energy-saving Variable More comfortable cows, he notes, are
LVP Vacuum suppliers, Transfer Vat Speed Drive, installing 20-horsepower easier to handle, which improves working
MILK/WASH w/ smooth operators, VSD vacuum pumps. That meant the life for Skyridge employees and also
DeLaval Pulsation, DeLaval Receiving capacity of the Skyridge parlour could means a safer working environment.

78 TETRA LAVAL 2013/2014

TETRA LAVAL INTERNATIONAL 80
TETRA LAVAL INTERNATIONAL MANAGEMENT 81
TETRA LAVAL GROUP SUPPORT FUNCTIONS 82
TETRA LAVAL INTERNATIONAL

Tetra Laval International

Tetra Laval International (TLI) focuses and outlook of the different businesses financial areas. We will continue to
on security, assurance, transparency in the Group. strengthen audit to ensure that risks are
and accountability in its role as the TLI has continued to invest in tech- adequately controlled and reported.
financial support and control function nology and knowhow to reduce costs, In our treasury and financing activities,
for the Board. This is evident whether enhance controls and ensure that its we will implement the necessary changes
financing the Group, ensuring secure highly qualified and professional teams to comply with evolving regulatory re-
cash management, mitigating the im- focus on value adding activities Group- quirements whilst maintaining an optimal
pact of financial market risks on busi- wide. In practice, this has included: balance of risk reduction, cost, flexibility
ness performance or delivering financial and timely informed response to market
• e
 quipment financing solutions;
reports and rigorous assurance on in- developments and business needs.
ternal controls to the Board. • m
 anage and ensure transparency As restructuring initiatives progress,
over commodity price risks; we will work with industry group man-
SOLID PROGRESS AND agement to ensure traceability of costs
• understanding of longer term effects
ACHIEVEMENTS IN 2013 and benefits, from business case genera-
of FX variations and the value of
During the year, we have reviewed the tion through to execution and follow-up.
hedging in a year of major move-
Group’s corporate governance frame- The TLI team are proud to be part of
ments in key currencies for the
work to ensure that it meet the needs a Group that plays a leading role in food
Group;
of the Board. protection on a global basis. TLI will
We supported the Board in reviewing • e
 xtended use of computer assisted continue to drive security, assurance,
the long term financing strategy of the audit techniques in internal audit. transparency and accountability in its
Group. In part this lead to another activities to support the sustained success
significant event in 2013, the successful LOOKING FORWARD, 2014 WILL of the Group.
refinancing of the Group’s long term BE ANOTHER CHALLENGING YEAR
financing facility. A key initiative will be to serve the Martyn Zedgitt
Risk has been reduced through needs of the Board, in shaping strategy
more secure and efficient cash man- and future performance, and scruti-
agement by increased cash pooling nising execution. This will involve
and continuous linked settlement of greater synthesis and standardisation
transactions, with the support of our of the information presented, with more
core banks. focus on challenges and future direction.
We have also implemented a number We will also work for the Board and
of changes aimed at increasing trans- Group management to monitor risks
parency over costs, capital employed, and maintain effective controls in stra-
restructuring initiatives, performance tegic, operational, legal/regulatory and

80 TETRA LAVAL 2013/2014

 TETRA LAVAL INTENATIONAL MANAGEMENT

01.

02. 03.

04. 05.

06.

 artyn Zedgitt
01. M
President
02. M
 arc Häfliger
Operations & Administration
03. A
 ntoine Jomini
Audit
04. R
 obert Norris
Group Financial Planning & Reporting
 örn Rausing
05. J
Mergers & Aquisitions
 obert Swan
06. R
Finance

TETRA LAVAL 2013/2014 81

TETRA LAVAL GROUP SUPPORT FUNCTIONS

01. THOMAS ANDERSSON

01.
Group General Counsel

02. JÖRGEN HAGLIND

Group Communications Officer

03. ANDREAS KARL

Group Human Resources Officer

These functions are fully responsible

for their respective area throughout the
02. Tetra Laval Group.

03.

82 TETRA LAVAL 2013/2014

TETRA LAVAL
CASE POSTALE 430
70, AVENUE GÉNÉRAL GUISAN
CH-1009 PULLY, SWITZERLAND
TEL +41 21 729 22 11
WWW.TETRALAVAL.COM

TETRA PAK INTERNATIONAL S.A.

CASE POSTALE 446
70, AVENUE GÉNÉRAL GUISAN
CH-1009 PULLY, SWITZERLAND
TEL +41 21 729 21 11
WWW.TETRAPAK.COM

SIDEL INTERNATIONAL AG
BÖSCH 67
CH-6331 HÜNENBERG
SWITZERLAND
TEL.+41 41 785 23 60
WWW.SIDEL.COM

DELAVAL INTERNATIONAL AB
P.O. BOX 39
GUSTAF DE LAVALS VÄG 15
SE-147 21 TUMBA, SWEDEN
TEL +46 8 530 660 00
WWW.DELAVAL.COM

TETRA LAVAL INTERNATIONAL S.A.

CASE POSTALE 430
70, AVENUE GÉNÉRAL GUISAN
CH-1009 PULLY, SWITZERLAND
TEL +41 21 729 22 11
WWW.TETRALAVAL.COM
 Code 9930en. Date 2014-03. BYSTED / GRAYLING Malmoe, Sweden

TETRA LAVAL
CASE POSTALE 430
70, AVENUE GÉNÉRAL GUISAN
CH-1009 PULLY, SWITZERLAND
TEL +41 21 729 22 11
WWW.TETRALAVAL.COM