CEO Multivac: We want to be the most innovative company in our sector
EuroMeatNews: How was 2017 for MULTIVAC in terms of business development, and what other challenges do you see in the near future?
Hans-Joachim Boekstegers: In 2017 we were able to significantly increase our turnover in both our traditional core business and the newer business sectors. We were also able to make great progress in our Systems business and in our range of marking and inspection solutions. MULTIVAC’s production capacity is fully utilized, and the number of employees worldwide has risen to 5,300. The year 2017 was, therefore, a very satisfactory year for the entire Group.
Today we can offer by far the most comprehensive range of products when it comes to thermoforming packaging machines. This increasingly applies to other product families as well, such as for example automatic traysealers. Thanks to our entry-level models for both thermoforming packaging machines and traysealers, we have also opened up the entry into automated packaging to completely new groups of customers. We will
also continue this strategy in future for our product portfolio. The expansion of our product range in upstream and downstream process equipment is also on our agenda. In addition to this, we are pursuing other ambitious aims: we want to be the most innovative company in our sector as well as the benchmark and “best in class” along the entire added value chain. This includes the further expansion of our expertise in application technology, so that we can fulfil our customers’ requirements to an even greater degree. We are therefore forming specialist units for working on different market segments, and we already have a number of food technologists on board.
EMN: 2017 was a year when MULTIVAC continued its expansion in different markets. How many of the investments are now fully operational, and what are the company’s new projects for this year? Are you seeing new acquisitions on the horizon?
HJB: With the acquisition of a majority share in TVI and the takeover of the slicer branch of VC999, as well as the continued expansion of our Systems business and the formation of important strategic alliances with companies such as Meyn and Cabinplant, we have reached some major turning points in recent months in the direction of Better Processing. Thanks to our comprehensive expertise in line construction and automation, we are already in aposition today to be able to offer our customers integrated solutions from one source for all areas from processing and portioning right through to end-of-line packing. We will continue in future to expand our range of solutions in these sectors as well, whether it is through organic growth or further acquisitions.
EMN: Which markets do you think will develop in the near future?
HJB: Due to the growing demand in global markets, we will direct our focus in 2018 and the following years primarily on the packaging of meat and sausage products, fruit and vegetables as well as dairy and bakery products. We also assume, that the market for convenience food, ready meals, portion packs and snacks will continue to grow. We also continue to see great potential for skin and modified atmosphere packs worldwide. As regards the opportunities for growth in the food industry, I would direct your attention to a few facts and figures: in Germany for example, around 40,000 new food products come onto the market every year, and around 1,000 start-up businesses are currently founded each year in this sector. If we look beyond our own borders, we can see that the growth in world population and world trade will increase the demand for processed and packaged food over the long term. In addition to this, people’s purchasing power also plays a significant role. As disposable income rises, these food expectations will increase in industrialised and newly industrialising nations alike. The rising demand throughout the world for larger volumes of higherquality food will drive greater division of labour globally as well as more trade in food products.
Overall we expect a trend towards a significant quality improvement in the food sector, both in the products themselves and in the required packaging. This means that producers, processors and retailers, as well as we as machine manufacturers, must adapt to this.
EMN: What is the trend in new orders at the beginning of the year? And to what extent does the current market influence business development at MULTIVAC?
HJB: We are currently seeing strong demand for automation solutions, particularly from the food industry. In 2017 we experienced a significant increase in our order intake compared to 2016. This trend is continuing in 2018. The requirements cover the entire spectrum, from the automatic loading of the product into the pack cavity through to intelligent converging concepts and right up to fully automatic box or crate loading. Seen overall, we have established that today more than ever the decision is being made by customers to purchase complete packaging lines, so that they can utilize the clear benefits in their daily operation. It is essentialin this context to provide higher- level control functions for the line, so that significantly more efficient operation of the entire packaging solution becomes possible.
We see this trend particularly in industrial- scale businesses, but also increasingly with smaller processors, who wish to make the entry into a fully automated packaging procedure. Our strategy is directed very clearly at the expansion of our expertise in automation and line construction.
As regards our range of other products, we have been able to set a new benchmark in thermoforming packaging machines with our new generation of MULTIVAC X-line packaging machines. As a result of its seamless digitalisation, comprehensive sensor system and networking with the MULTIVAC Cloud, the X-line creates a new dimension, when it comes to packaging and process reliability, pack quality, performance and operating convenience. As you can see, digitalisation and future-proofing of this packaging solution were at the forefront, when it came to developing the product. We can already report, that our X-line has received a very positive reception in the market, and the first machines are already in operation at customers.
EMN: MULTIVAC stands not only for “Better Packaging” but also for “Better Processing”. What do you associate with this term?
HJB: By “Processing” we mean all the types of food processing, which are upstream of the actual packaging procedure. This could be the slicing or portioning of products, as well as their cutting or texturing during the manufacture of meat products. The added value, which we offer our customers, is the seamless integration of these upstream systems into the packaging machine, thereby increasing the efficiency of the overall packaging solution.
This also includes the provision of uniform operating concepts. As a general rule, our developments in the sector of automation and line integration aim to offer our customers solutions, which are easy to operate and handle.
EMN: Which consumer trends do you think will influence the packaging market for the meat industry? Can you give us an overview of the new packaging trends for 2018?
HJB: We are seeing various trends in the market. As regards food packaging, changing consumer habits and demographic developmentsmean that demand is continuing to increase for user-friendly packs, which meet the individual needs of consumers. These include for example portion packs of different types, as well as packs with reclosure systems or packs for ready meals, convenience products and food on-the-go. Awareness of quality is also changing - consumers are placing increasing value on fresh, high-quality products, which are attractively presented and packaged for longer shelf life. The mailorder business for food, such as for example premium meat, will in our view continue to grow. Market researchers predict that over the next ten years there will be a significant breakthrough in online food retailing, even though consumer behaviour is currently still fairly conservative due to the very high density of supermarkets and a certain fear of contact with new concepts.
Another aspect is the subject of the environment and saving of resources, particularly in the industrialised countries. Consumers today are not only focusing on products from local suppliers but also on the packaging itself. Against the background of the EU Plastics Strategy and the revision of packaging legislation, there will be immense pressure in regard to the use of recyclable packs over the coming years on all those involved in the process chain, i.e. producers, processors, packers and retailers. Here we see ourselves, as machine manufacturers, with a joint responsibility with leading packaging material manufacturers to develop concepts, which meet these requirements. Overall, the development of sustainable packaging concepts is very high on our agenda. We see this as an holistic approach, and we are therefore investing our development capacity in systematically reducing the consumption of packaging materials, energy and water, not only in manufacturing our products but also in their use in the entire packaging procedure. We have been pursuing this strategy very intensively for many years. In addition to this, our machines are designed in such a way, that they can run not only plastic materials, which are based on standard polymers from crude oil, but also paper fibre-based materials and plastics, which are made from renewable raw materials or which are biodegradable. We are also working on packaging concepts, which are based on mono materials and therefore meet the requirements for full recyclability. In this context however, I would like to mention that materials of this type currently differ from conventional multi-layer materials in some aspects, particularly with regard to their barrier properties, and this means that from today’s perspective the use of these packaging materials will have a direct impact on the shelf life of the food and therefore on the whole supply chain.
EMN: What are the current trends in the market, which could lead to innovation in the food packaging industry, and how difficult is it to keep up with these changes?
HJB: When it comes to packaging fresh meat, we are seeing in particular a growth trend in vacuum skin packaging. We at MULTIVAC have comprehensive expertise in this area. We offer our customers with our MultiFreshTM system an extensive range of machines and packaging materials for producing high-quality vacuum skin packs. Thanks to the development of the compact R 105 MF thermoforming packaging machine and the T 300 traysealer, we have been able to expand our range by adding entrylevel packaging solutions, which enable manufacturers of small batch sizes to produce high-quality vacuum skin packs. We are also following with interest the development of online mail order for fresh food. The challenges are however enormous. As regards food suppliers and retailers, there is a lack of cost-effective and consumer-friendly logistics concepts, to which can be added statutory food regulations, high delivery costs and low margins. It must also be ensured, that product shelf life and protection are achieved, and that their storage and dispatch capability is developed.
We have however noted, that the turnover of food, which is sold worldwide via the Internet, has for example doubled in the twelve month period up to March 2017, when compared with the same period in 2015/2016. In a report by the Kantar Worldpanel market research company in November of last year, Europe is in second place with 5.6 percent behind Asia with 6.5 percent in a worldwide comparison survey. Here the market is demanding suitable packaging concepts, which we can develop in conjunction with our customers.
EMN: What are the main technology challenges, which meat producers will face in the coming years? What materials for packaging do you expect to become popular?
HJB: As regards materials, I think that I have already answered your question. With regard to technology, we see a clear trend in the food-processing industry towards a higher degree of automation, so that the growing requirements regarding hygiene, process reliability, efficiency and flexibility can be met. This affects not only the big companies in the market but also increasingly smaller businesses.
EMN: What are the hot topics in packaging technology at this year’s Anuga FoodTec exhibition? What innovations will be showcased by MULTIVAC?
HJB: Our focus at Anuga FoodTec is on three main areas. The first is the MULTIVAC X-line, where we are showing our expertise in the areas of digitalisation and Industry 4.0. The second area is the presentation for the first time of a complete line for packing portioned and sliced products, where our own portioning system and slicer are
fully integrated. The third area is the presentation to our visitors of different packaging concepts, with which we are supporting our customers in the implementation of the EU Plastics Strategy.
EMN: Will innovation be a game changer in food production worldwide? Can you give us some examples?
HJB: I believe that digitalisation will be an innovation driver in our industry, from which completely new business models will develop.
EMN: Last year MULTIVAC founded a new Business unit for developing and designing slicers. What benefits can MULTIVAC offer its customers by manufacturing its own slicers?
HJB: We now have the necessary structure to be able to supply our customers with innovative and complete solutions from one source. The entry into the slicer business is for us an essential precondition in optimising the degree of slicer integration in automated packaging lines. The aim is not just to reduce the footprint of automatic slicer lines, but also to increase the output capability of these solutions. This means that customers benefit not only from quality products manufactured by MULTIVAC but also from our expertise in line integration - as well as from our excellent access to the market and from our global sales network.
EMN: What will be the main challenges for the food industry in the years to come? Are cobots (robots and human interaction) a real challenge for machinery producers?
HJB: I am convinced, that hygiene standards and process reliability can be increased through the use of handling modules and other automation components, particularly when it comes to handling food products. I see automation in this sector as a great opportunity for the food-processing industry.
EMN: Which challenges regarding digitalisation and automation do you see as particularly demanding?
HJB: The biggest hurdle, which we as machine manufacturers must cross, is to agree a procedure with our customers for accessing machine and process data, and to make clear to them the additional benefits that we can offer. By capturing relevant process values and sequences, we can ensure that the machine can be constantly run at its optimum operating point. These data sets also form a valuable basis for providing our MULTIVAC Smart Services. This term is used to summarize those digital service packages, which contribute to making the packaging procedures at our customers even more efficient. These are for example services such as predictive maintenance or creating comprehensive analysis of overall equipment effectiveness.
EMN: What have been the most important developments in recent years in the market for labeling and marking solutions? What should we expect from MULTIVAC ’s solutions in the next five years? How about inspection systems or high-pressure processing of food?
HJB: As regards the inspection solutions, which we manufacture, I can tell you that we have continued to systematically expand our product range in recent years. We have also been able to achieve a pleasing growth in turnover in this sector over recent years. Much has happened here, particularly in the area of camera inspection systems - today the progress of image capturing technology enables high-resolution imaging data to be transmitted and verified even at high speeds. Modern PC-based camera inspection systems also offer statistical evaluation of the results by means of extensive image-analysis tools. The control and linking of these systems, as well as the far-reaching communication with other systems, is continually being expanded. As regards high-pressure processing of food, we can state that it is one of the most promising procedures for extending the shelf life of delicate food products. As you know, MULTIVAC is even able to offer this process for products packed in MAP, as well as being capable of integrating it into automated packaging lines, thereby enabling efficiency gains to be achieved for the entire packaging process. Today our HPP Test Center at our Wolfertschwenden site ena-bles HPP technology, packaging know-how, automation expertise and analysis to be combined under one roof. Here our customers benefit from our proven expertise in the areas of both packaging and food technology.
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