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  • Sidel at Interpack 2008

    Sidel, one of the world’s top suppliers of complete bottling lines, will take part in Interpack, packaging’s biggest trade show, in Dusseldorf from 24-30 April. Sidel will present its newest packaging solutions, from bottle design to palletizing. This year, sensitive drinks take centre stage. Flavoured waters, juices, nectars, isotonic drinks, teas and liquid dairy products are extremely popular with consumers who are fuelling a surge in demand for health and wellness products. Sidel will unveil its latest aseptic packaging solutions for this market segment, which puts a premium on product safety. In addition to product safety, the environmental impact of packaging is playing an increasingly important role. Reducing consumption of raw materials, energy, water and chemicals has become a top concern of beverage industry professionals. Part of Sidel’s booth will be dedicated to breakthrough solutions created by Sidel to address to these concerns. Another area of the booth will showcase innovative end-of-line solutions. *About Sidel* Sidel is one of the world’s top suppliers of beverage lines and packaging equipment. The company employs 5,300 people around the world and is a division of Tetra Laval.

  • Coca-Cola Enterprises has Q4 profit

    Coca-Cola Enterprises Inc., the largest bottler of Coca-Cola drinks, said Tuesday it swung to a fourth-quarter profit, as year-ago results included a hefty franchise impairment charge. Quarterly net income totalled $158 million, or 32 cents per share, compared with a year-ago loss of $1.71 billion, or $3.59 per share. Excluding a restructuring charge, debt extinguishment costs and a tax benefit, net income was 29 cents per share. Year-ago results included $3.79 per share in charges, mostly due to a franchise-impairment charge. Revenue rose 11% to $5.3 billion from $4.79 billion last year. Analysts polled by Thomson Financial predicted net income of 27 cents per share on revenue of $5.14 billion. Analyst estimates typically exclude one-time items. Results were helped by volume and price growth in North America and Europe, lower operating expenses and a favourable tax rate, the company said. North America benefited from the launch of Glaceau water brands and growth from Coca-Cola Zero, Dasani and Powerade. European results were also helped by Coca-Cola Zero. For the year, Coca-Cola Enterprises reported earnings of $711 million, or $1.46 per share, compared with a year-ago loss of $1.14 billion, or $2.41 per share. Revenue rose 6% to $20.94 million from $19.8 billion. * Article is copyright of Associated Press*

  • Valpak welcomes announcement on packaging targets

    Valpak, the UK’s largest producer responsibility scheme, welcomes DEFRA’s announcement of targets for industry for the next three years. The early announcement and the forward view of targets allow all businesses to plan and prepare for the future challenges they'll face in the packaging arena and in assisting the UK to achieve its carbon obligations. Valpak strongly believes that placing a legal responsibility onto business to recover and recycle packaging now and into the future, through a clear timetable of incremental targets, ensures all obligated business plays its part. It also means that all obligated business will be taking part in the carbon agenda and not just those who decide to on their own initiatives. Steve Gough, Valpak’s Chief Executive, said: “To have a view of the targets so early in the year and for the next three years is hugely helpful, and we appreciate DEFRA’s efforts here. It helps us to continue to take steps well in advance to keep our members’ costs to a minimum. "We're hoping for more information on targets for 2011 and 2012, as well as on the issue of ‘broadly equivalent’ evidence, and we know the government is working on these issues as we speak. “Early targets, strong legislation and a clear view of targets into the future mean that the government and business win on two levels: in the first place, producer responsibility legislation for packaging will deliver the UK contribution to the EU Directive, but on another level, the targets bind all business to the reason for having the legislation in the first instance, to ensure better resource efficiency and an improved environment.” New targets At a basic level, Valpak believes that the target levels are sensible and take due consideration of the most recent data available on how the UK can achieve its requirements under the EU Packaging Directive. Taking a wider view, it's important for all to understand that this type of producer responsibility legislation binds a much more diverse range of businesses, small and large, into the efforts to combat environmental impact. Thus, all businesses pay their fair share of the costs towards reducing the impact of the packaging they release onto the market place. These new targets will complement the wider aims of the Waste Strategy for England and Wales, and ensure business plays its role in achieving some of the aims of the review carried out in 2007. There was concern about the levels proposed for aluminium recycling, and Valpak appreciates the fact that this has been reduced to a more manageable level. However, it adds that it's important that the government addresses the issue of ‘broadly equivalent’ evidence for exporters as a matter of urgency, due to the effect it's having on generating PERN export evidence, particularly for steel and aluminium.

  • Danone profit jumps on gain from cookie unit sale

    By Ladka Bauerova Groupe Danone SA, the Evian bottler that bought baby food maker Royal Numico NV last year, posted a fivefold increase in second-half profit on the sale of its cookie unit to Kraft Foods Inc. Profit in the second half was €3.52 billion ($5.1 billion), up from €649 million a year earlier, 12-month figures released by Paris-based Danone today indicate. Full-year net income was €4.18 billion, above the €3.25 billion median of 17 analyst estimates in a Bloomberg survey. Danone, also the world's largest yogurt maker, bought Numico and left the cookie business to focus on faster-growing health foods. The company is counting on Numico's Nutricia and Cow & Gate brands for infants to lift profitability, as rising milk costs threaten growth and a trademark dispute weighs on sales in China. The company reiterated its sales-growth forecast of 8% to 10%, excluding acquisitions and currency swings. "Danone has given reassuring guidance amid a difficult environment for the food sector,'' said Pierre Tegner, an analyst at Paris-based Oddo & Cie, with a 'buy' recommendation on the stock. Danone also said Chief Financial Officer Antoine Giscard d'Estaing will leave the company and be replaced by Pierre-Andre Terisse, a former executive with cigarette maker Altadis SA. The company didn't give a reason for the CFO's departure. Operating profit will grow at least 0.3% this year, Danone forecast. Shares rise Danone rose €1.97 (or 3.7%) to €56 at 9:25am in Paris trading, reducing its drop this year to about 9%. After surging 30% in 2005 and 2006, the shares stalled in 2007 as the trademark dispute with Hangzhou Wahaha Group erupted. Net income excluding one-time gains, such as the €3.1 billion booked from the cookie sale, increased 9% to €1.3 billion, or €2.71 per share, from €1.19 billion, or €2.44 per share, a year earlier. Sales from current operations rose 3.6% to €14.6 billion, beating the €13.2 billion estimated in the survey. Bloomberg calculated second-half earnings by subtracting half-year profit from the full-year figure. The figures "seem to indicate a very good fourth quarter and confirmation of strong pricing power,"' Natixis analysts (including Francois Digard) said in an emailed note. Numico integration Sales including two months of Numico revenue rose 5.9% to €12.78 billion from €12.07 million a year earlier. Danone's operating margin widened by 0.45 percentage points to 14.4%. "The group is signing off on a year marked by a number of headwinds,'' UBS AG analyst Eva Quiroga said in an emailed note, before the results were announced. "We believe important catalysts for share-price performance in 2008 to be a solution to the ongoing dispute with Wahaha,'' Danone's estranged Chinese partner, as well as the outlook for Numico, she wrote. Numico's sales were estimated to grow four times as quickly as the cookie business sold to Kraft. Danone nevertheless suffered a two-level credit rating downgrade by Moody's Corp. after the purchase amid concern the €12.3 billion price was too rich. "The smooth integration of our Numico business gives me particular confidence in the group's ability to accelerate its growth profile,'' Chief Executive Officer Franck Riboud said in the statement. Danone, which already sells Bledina baby food in its home market, bought the Dutch company to become Europe's biggest producer of nutrition for young children. Numico will also help it gain a foothold in Asia and the Middle East. Yogurt, Wahaha Annual sales climbed 12% at Danone's yogurt unit, its biggest contributor to revenue, as more consumers bought digestion-enhancing Activia yogurt and immunity-boosting milk drink Actimel. Operating margin at the unit widened by 0.62 percentage points to 14%, Danone said. Danone raised prices on its dairy products to counter surging costs, and plans farms from China to Saudi Arabia to better control milk production expenses. Revenue growth from beverages slowed to 4%, dragged down by cold weather in the third quarter and the trademark dispute with Wahaha. The two companies agreed in December to renew talks. Danone stopped including Wahaha sales in its accounts from the second half of 2007. "The fact that Danone deconsolidates Wahaha is positive," ING's Gulpers said. "It's the best option.'' Danone did not provide sales figure for the cookie division. Kraft, the maker of Oreo cookies and Toblerone chocolate bars, completed its $7.8 million purchase of the business in November. Danone plans to raise its annual dividend by 10% to €1.10 a share. This story originally appeared on <1> <1>: http://www.bloomberg.com

  • Coca-Cola profit rises as sales jump

    By Harry R Weber The Coca-Cola Company recently reported a 79% jump in fourth-quarter profit, and maintained its growth targets despite a slowing US economy, but has no plans to be more aggressive with its stock buybacks. The results posted by the world's largest beverage maker beat Wall Street expectations, but company shares slipped. The Atlanta-based company said it earned $1.21 billion, or 52 cents a share, for the three months ending 31 December, compared to a profit of $678 million, or 29 cents a share, a year earlier, when the company took a big impairment charge at its largest bottler. Excluding one-time items, Coca-Cola said it earned $1.36 billion, or 58 cents a share, in the quarter, ahead of the 55 cents a share analysts surveyed by Thomson Financial were expecting. Revenue in the quarter rose 24% to $7.33 billion, compared to $5.93 billion recorded a year earlier. Company comment Looking ahead, Coca-Cola executives said the company is mindful of the slowing US economy. Chief Financial Officer Gary Fayard said the company is confident about its overall volume and growth targets. But he said Coca-Cola only plans to buy back $1 billion to $2 billion in company stock in 2008, about the same amount as in 2007. Fayard said the company wants to be conservative because of uncertainty in the credit markets. Chief Executive Neville Isdell told analysts during a conference call that the fourth quarter was "a very positive finish to 2007" that "capped an excellent year for The Coca-Cola Company." He said the company is doing well based on its growth goals: "We realise the journey is long, and we are by no means declaring victory," Isdell said, adding that Coca-Cola will respond to future "opportunities and challenges". Worldwide unit case volume was up 5% in the fourth quarter and 6% for all of 2007. Growth in several international markets was strong in the fourth quarter. Unit case volume in Coca-Cola's Africa group increased 7% in the quarter. It increased 18% in the quarter in India and 10% in Latin America. However, unit case volume in the company's key North America unit increased only 1% in the quarter. Unit case volume in the company's European Union group increased 2% in the quarter. That group's results for the fourth quarter were weighed down by a volume decline in Germany. President and Chief Operating Officer Muhtar Kent said Coca-Cola remains committed to creating strong, consistent growth in its home market, though he acknowledged that "international operations continue to be the primary driver of growth for the company". Muhtar Kent's role Kent has been named to succeed Isdell as CEO on 1 July. Isdell remains as chairman until Coke's annual meeting in April 2009. For all of 2007, Coca-Cola said it earned $5.98 billion, or $2.57 a share, compared to a profit of $5.08 billion, or $2.16 a share, for all of 2006. Full-year revenue rose 20% to $28.86 billion, compared to $24.09 billion recorded in 2006. Coca-Cola completed its $4.1 billion purchase of Vitaminwater maker Glaceau last June. Kent said Wednesday that Glaceau will be moving beyond the US market. "You will certainly see Glaceau in international markets in the very near future," Kent said. Coca-Cola shares fell 53 cents to $59.39 in Wednesday trading.

  • Australia's Coca-Cola Amatil profit beats forecast

    The company raised prices to offset higher aluminium and other commodity prices in 2007, and Managing Director Terry Davis told Reuters he expects to be able to do the same again in 2008 even if the economy cools. He said an expected increase in input costs of 3-4% this year was low compared with many other food and drinks firms: "That gives me some confidence we'll be able to pass those through," Davis said in a telephone interview. The price of a bottle of Coca Cola in Australia rose 4-5% in 2007. Analysts said Coca-Cola Amatil was in a strong position even if consumers trim spending. "We see modest upgrades to forecasts. They are well positioned (as) beverage isn't a highly discretionary consumer item. It's reasonably defensive," said Ausbil Dexia portfolio manager, John Grace. Its shares rose as much as 4.2% to A$9.16. * Beating expectations* Coca-Cola Amatil, which is 30% owned by the Coca-Cola Co, said 2007 net profit before one-offs rose to A$366.3 million ($330 million) from A$323.5 million a year ago. That was above market expectations of A$360.3 million, according to a Reuters Estimates survey of nine analysts. Davis said good sales in December helped the company outperform its own forecast of 10-11% growth, as well as improved pricing and a shift to premium products. He also noted economic headwinds. "It does look like high interest rates, high petrol prices and high food inflation will be a fact of life in 2008. These rises must at some point create pressure points on household incomes," he said. Coca-Cola Amatil said the cost of goods sold increased by 6.3%, mainly due to higher aluminium costs, but the growth was expected to slow to 3-4% this year. Moving away from fizzy drinks The firm has diversified away from fizzy drinks, which now account for 62% of revenues, down from 95% in 2001. Sales of Pump and Mt Franklin bottled water rose 10% and sports drink Powerade rose 7%. A new vitamin water called Glaceau was launched on Wednesday. Amatil has set its sights on becoming the number three player in beer in Australia through its Pacific Beverages joint venture with SABMiller Plc, which markets and distributes Peroni Nastro Azzurro and Miller Genuine Draft. Davis said the company was likely to focus on organic growth rather than making major acquisitions – even though high industry multiples had become more reasonable lately. "We've got enough on our plate over next 12 months to not have to worry about that," he said. "Vendors are becoming more realistic in their price expectations, but you've got a double whammy. The cost of funding an acquisition has gone up, and it hasn't absolutely sunk in that asset values need to come down as a result of that."

  • Greek Coke bottler sees 08 EPS growth of 12-15%

    Greece's Coca-Cola Hellenic Bottling (CCHBC) expects to grow earnings per share by 12-15% this year as it launches low-calorie drink Coke Zero into more markets after soaring 2007 profit beat forecasts. CCHBC, the world's second-largest bottler of Coca-Cola drinks, said 2007 net profit rose 42% to €472.3 million ($687.9 million) from €334 million in 2006, boosted by strong growth in emerging and developing markets. Net profit had been forecast at an average of €463.3 million in a Reuters poll of 12 analysts. The bottler said it sees earnings per share of €1.46 to €1.49 this year, with volume growth growing by about 7%. CCHBC, present in 28 countries, has bought into 11 water and juice firms in Europe and Russia in the last six years to cash in on consumers' shift towards healthier drinks. "Growth was achieved across all reporting segments, with non-carbonated soft drinks (CSDs) now accounting for 37% of our total volume sold," Chief Executive Doros Constantinou said in a statement. Earnings before interest and tax (EBIT) for 2007 in established markets, including Greece, rose by an annual 25%, versus a 56% and 48% jump in developing and emerging markets respectively. "CCHBC managed to achieve both robust volume growth in full year 2007 and operating margin expansion despite higher raw material prices and continuous investment in sales capabilities," said brokerage HSBC Pantelakis in a note. Shares were up 3.5% at €29 in early trade on the Athens bourse. Product plans Sales volume rose 13% to 2.01 billion unit cases, in line with its 2007 guidance for annual growth of 13%. About two thirds of total sales volume comes from developing and emerging markets, including Russia and Nigeria. CCHBC, which launched Coke Zero in Ireland, Northern Ireland, Greece, Switzerland, Austria, Italy, Croatia and Romania last year, plans to introduce the product to more markets in 2008. "We plan to launch Coke Zero in another eight markets in central Europe primarily, developing and emerging markets sometime before May," Constantinou told Reuters. The successful launch of the Coke Zero product last year helped growth in total carbonated soft drinks reach an annual 7.0%. Fourth-quarter net earnings came to €37.6 million, compared with a loss in the previous year. The shares have lost about 6% since the start of the year, outperforming a 15% drop on the Athens benchmark general index due to the bottler's strong growth prospects. * (Editing by David Cowell and Shaun Weston)* Article from Reuters

  • Coolers in hospitals

    hospital, sanitation, watercooler, BWCA, EPDWA, guidelines, National Health Service, superbugs, methicillin, Staphylococcus aureus, MRSA, Clostridium difficile, legionella, legionanaires,

  • Ozone dosing system for bottled water

    *Pacific Ozone has launched an ozone dosing system for bottled water filling applications. * The US company’s IOCS series of integrated ozone contacting systems has been upgraded by the addition of feed forward control, providing increased control, precision and ease of use. “Our new feed forward control system gives water bottlers unmatched control of ozone concentration by correcting a wide variety of variables that can impact ozone concentration during bottling,” explained Pacific Ozone President Chris Rombach. “It ensures the quality and consistency of bottled water by precisely compensating for these variables. The benefits of our new control architecture are obvious when plots of ozone concentration over time are compared before and after implementation of our system. It provides much tighter control of ozone concentration, well within 10% of the target concentration.”

  • Past and present beverage awards

    **As entries close for the <2008 beverage innovation awards>beverage innovation awards><1> (deadline 22 February), it's time to reflect on awards programmes from previous years, in which entries traditionally highlight market trends.** Ready to drink coffee, a strong contender in late 2005 and throughout 2006, was present in the last awards, as was tea – in more variants than ever before. The ‘superfruits’ – açaí and pomegranate – began to appear in an increasing number of juice combinations. Clearer product positioning in terms of branding and benefit or occasion-related labelling was also a clear trend over the past two years, and issues such as natural and organic indicate the move towards provenance, fair trade and local. But last year, as the judging panel met in Brussels to review the entries, it had to admit that the majority of innovations represented through the awards were in the juice arena. Yes, of course, the traditional carbonated soft drinks sector has evolved at a tremendous pace over the past 18 months, and new non-carbonated categories seem to have been created, but innovation in this sector has mainly been limited to ingredient variation and calorie reduction offerings. Will this year’s awards see these trends continue or will something new emerge? Categories overlapping “2006 saw the emergence of a huge number of category busting products, including carbonated juices, water with juice and juices with so many additives that they have evolved beyond pure juice to become complex beverages," said Zenith International Publishing's Bill Bruce. “It's becoming difficult to see where one category stops and another begins.” As far as its activities in Brussels is concerned, UNESDA – the Union of European Beverages Associations – represents the interests of the ten major operators, plus all of the national associations of the non-alcoholic beverages industry – an industry fondly referred to until only a little over one year ago as the “soft drinks industry”. The juice industry is represented separately, as is bottled water, by other associations. However, Bill Bruce points out that over three quarters of the businesses represented through UNESDA feature juice and drinks with a high juice content in their portfolios. Over one third of this year’s awards entries featured juice in one form or another, and more than one quarter came from companies that refer to themselves as juice businesses. Consumer issues drive agenda "The issues that drive the regulators in Europe are mainly consumer issues," added Bill Bruce. "The UNESDA commitments saw an industry responding to the health and physical activity debate. Beyond that response, the industry was even praised for setting the agenda and raising the bar in terms of variety of offering, portion size and availability. In addition, it has gone on to present a clear message in terms of labelling and is successfully monitoring the commitments. Beyond the original nine signatories, close to 100 companies have now signed. “Most of the consumer issues that interest Brussels affect juice as much as carbonates. In fact, all non-alcoholic beverages compete for consumers’ attention in an increasingly varied offering, ranging from overtly good-for-you products to the deliberately decadent. “Some observers have said that the juice industry was concerned that so many traditional carbonates companies had diversified into juice, cynically suggesting that this was a ploy to distract from the real issues concerning sugar and so on. In fact, these companies entered the juice arena directly due to consumer demand. “The beverage innovation awards present a fascinating opportunity to take a snapshot of what's happening across the whole non-alcoholic drinks industry right now. To the consumer, and to many in the industry, each different category and type of drink simply offers a choice dictated by occasion, benefits, needs – and in many cases, cost. “I've written in past issues under the heading ‘One industry, one voice', as I firmly believe that, while there are many issues which dictate a separate agenda for each association, the consumer issues provide common ground that should be dealt with on a common agenda. The awards process therefore forces us to look at traditional carbonates alongside juices, just as the consumer might contrast and compare non-alcoholic drinks options in-store. “I hope that the issues that bind these products together may soon be reflected in increasingly direct cooperation between the associations representing all sectors, including juice and water.” Finalists and winners in the 2008 beverage innovation awards will be announced during the 4th InnoBev Global Soft Drinks Congress in Moscow in April.* <1>: http://www.beverage-innovation.com/2008beverageawards%28New%29.asp

  • Dr Pepper Snapple Group files revised statement

    *Cadbury Schweppes announces that Dr Pepper Snapple Group, Inc. (DPS) has filed a revised and updated version of its Form 10 Registration Statement with the US Securities and Exchange Commission (SEC). * In addition to information disclosed in DPS' two earlier filings, this revised version of the Form 10 includes further information on the relationship between Cadbury Schweppes and following the demerger, and information on future compensation programmes of DPS. The document is available on the SEC's website, www.sec.gov. Today's filing relates to the proposed demerger by Cadbury Schweppes of its Americas Beverages business. DPS will own Americas Beverages following the demerger and will be listed on the New York Stock Exchange. The revised Form 10 is the third filing by DPS, following its initial filing on 13 November 2007. DPS will file further revisions in the first half of 2008. A final Form 10 will be filed with the SEC and sent to shareowners before the demerger becomes effective, which isn't expected to occur before the second quarter of 2008.

  • Metro Drinks expands green tea range

    Specialist soft drinks company, Metro Drinks is expanding Latitude, its popular iced tea range, into 750ml retail/take-home glass bottles. Initially there are two green tea flavours: the top-selling mango green tea and a delicious new raspberry flavoured green tea. The new range provides consumers with a healthier alternative to an alcoholic drink, and also many other soft drinks. The range has just 66 calories per 200ml serving, the antioxidant properties of green tea and no artificial sweeteners or preservatives. They're light, refreshing and fruity while preserving the subtle dryness of the green tea. Commenting on the new range, Paul Bendit, Metro Drinks’ founder, said: “Consumers are now much more adventurous in choosing tea flavours as well as being aware of the health properties of green tea, so our new raspberry green tea responds specifically to this consumer trend. And the new range also provides shoppers with a new, large format ready-to-drink tea range for enjoying at home.” The new range has a 12-month shelf life and joins the existing Latitude Iced Tea range that's currently available in 275ml and 375ml bottles. Metro Drinks also produces Herbert’s, the UK’s only Fairtrade iced coffee, Juice Patrol, the healthier drinks range for children, and Qu4ttro Stagioni, its premium adult soft drink range. The new 750ml Latitude green teas will retail at around £2 per bottle and is available in cases of 12.

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