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2009/2010

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DELIVERING
EVERYDAY EXCELLENCE
The global recession forced many of our customers
to cut down on investments. Instead, optimising and
reengineering the installed base has turned into a fine art.
The real recession heroes are the people who are
able to rethink, redesign and improve processes
and solutions already in operation.

As well as developing the solutions of tomorrow, we have


spent the last few years further developing the solutions of
yesterday. At Tetra Pak, Sidel and DeLaval we call that
delivering everyday excellence.

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TETRA PAK TETRA PAK IN THE WORLD
PROTECTS WHAT’S GOOD

Tetra Pak is the world leader in liquid food


Machine assembly plants 11
processing and packaging. The business of
the company includes much more than the Production plants for packaging
packaging of liquid food products. Ice cream, material and closures 42
cheese, dry foods, fruits, vegetables and pet Number of countries covered >170
food are examples of what can be processed Market companies 41
or packaged in Tetra Pak processing and
Sales offices 78
packaging lines. By developing ambient
packaging, which preserves the nutritional R&D units 11
value and the taste of products, the distribu- Technical Service centres 41
tion of these food products to consumers Technical Training centres 16
has been greatly facilitated. Employees 21,672
Net sales in mio Euro 8,955

DELAVAL DELAVAL IN THE WORLD

WE DRIVE PROGRESS IN MILK PRODUCTION

DeLaval is a full-service supplier to dairy farmers. Local sales organisations 37


The company develops, manufactures and mar- Independent dealers 1,166
kets equipment and complete systems for milk Markets covered > 100
production and animal husbandry. Service and
Manufacturing units 16
sales of a wide range of accessories are also
key aspects of DeLaval’s operations. The com- R&D units 3
pany supplies highly efficient system solutions Sales and Service Personnel 1,464
for milking, herd management, animal traffic Installers 1,433
control, feeding, cooling, manure handling, Delivery trucks and mobile shops 670
ventilation and energy recovery.
Employees 4,077
Net sales in mio Euro 805

SIDEL SIDEL IN THE WORLD

PERFORMANCE AND INNOVATION.


THE RESPONSIBLE WAY.

The Sidel Group is one of the world leaders in Number of plants 25


solutions for liquid food packaging. From its R&D units 8
two fields of strength, blow moulding and filling,
Service units 31
Sidel offers the equipment that is key to custo-
mers’ decision-making in the purchase of Number of countries covered >190
complete bottling lines. Sidel has expanded Employees 5,151
its activities to cover three major categories Net sales in mio Euro 990
of packaging: glass bottles (disposable and
returnable), plastic bottles (PET, HDPE and PP)
and metal cans.

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TOP 10 MARKETS IN PACKAGES
Total number of Tetra Pak packages sold in 2009: 145,030 mio
TETRA LAVAL INTERNATIONAL
China Tetra Laval International is the financial support
Brazil
USA & Canada and control function for the Board. This organisa-
Iberia tion is responsible for financing the Tetra Laval
Germany & Switzerland Group, Group tax planning and managing the legal,
Russia & Belarus
Arabia
financial and equity structures. Tetra Laval Inter-
Mexico national proposes and ensures compliance with
Japan Group reporting processes, undertakes all Mergers
Italy
& Acquisitions work and plays the lead role in
5,000 10,000 15,000 20,000 25,000 30,000 corporate governance, internal audit and risk
Mio packs
management.
WELL PROVEN PROCESSING SYSTEMS
Total number of delivered processing units 2009: 1,699
Other 2%
Prepared Food 11%

Cheese & Powder 15% Dairy 46%

Ice Cream 11%

Beverages 15%

TETRA LAVAL
MILK PRODUCTION 2009 The head of each industry group has operational
management responsibility for their own industry
Thousand metric tons
160 000
group and therefore reports directly to the
140 000 Tetra Laval Group Board. The Group Board is
120 000 responsible for the overall strategy of the Group
100 000
and for controlling and supervising all of its
80 000
60 000
business operations.
40 000 Larry Pillard is Chairman of the Board. The Chair-
20 000 man ensures the implementation of strategy and
policy for the Group. The Chairman monitors the
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industry groups and Tetra Laval International.

DELAVAL SALES SPLIT 2009 NUMBER OF EMPLOYEES, DECEMBER 2009


Total Tetra Laval Group 31,202
Hygiene 15%
Service & Original Parts 15%

Farm supplies 15% Others 302


Milking 50%

DeLaval 4,077 Tetra Pak 21,672


Cooling 5%

Sidel 5,151

SIDEL 2009 SPLIT OF ORDER INTAKE BY MARKET SEGMENT

Others 14% Water & CSD 40%

NET SALES 2009 IN MIO EURO


Total Tetra Laval Group 10,755
Beer 14% Sensitive 32%

Tetra Pak 8,955


SIDEL 2009 SPLIT OF ORDER INTAKE BY PACKAGING MATERIAL Others 10
DeLaval 805

Metal 7%
Sidel 990

Glass 12% Plastic 81%

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Comments by the Chairman of the Board

GOOD PERFORMANCE IN A DIFFICULT


BUSINESS ENVIRONMENT
Overall, 2009 was a good year for the larly optimising inventories and managing state of the art dairy equipment.
Tetra Laval Group. We faced many capital expenditure and working capital. There are signs of an improving global
uncertainties due to the economic This good operational result was economy which should eventually in-
downturn. However, we were able to favourably supported by the fact that crease the demand for milk and push
perform well under these difficult commodity prices, for example for up prices. The question is more about
circumstances and, by and large, we paper, aluminium and plastic, increased the timing of this, which is difficult to
can be very pleased with the perfor- more slowly than anticipated. Overall, forecast.
mance of the Group. Tetra Pak’s strategy of focusing on The other opportunity for DeLaval is
Overall revenue fell by 2.6 per cent its core business has again proved to play an important role in the reduc-
to € 10,755 in 2009. At comparable advantageous. tion of the carbon footprint of dairy
rates the contraction was 2.8 per farming. DeLaval is in a great position
cent. Our industry groups managed DELAVAL’S QUICK RESPONSE for this as a market leader in sustain-
costs sensibly and improved their TO A CHANGING MARKET able dairy farming, and has several
operational efficiency. We also managed DeLaval had a respectable year and ongoing projects aimed at reducing
our capital investments well, and when achieved good results. While 2008 CO2 emissions and improving
there were growth opportunities in the was an exceptional year in the market manure/waste management.
market, such as in Asia, South Africa place, 2009 was much more difficult.
and the Middle East, we invested. At the Farmers suffered as milk prices fell POSTPONED ORDERS PUT
same time we postponed investments dramatically around the globe, espe- PRESSURE ON SIDEL
in other markets, such as in Europe, cially in North America and Europe. 2009 was a difficult year for Sidel.
due to overcapacity or slower growth. As a result, farmers reduced their in- While both Tetra Pak and DeLaval are
Despite the challenging economic vestment in new capital equipment, dependent on their customers’ invest-
environment we continued our invest- which in turn affected the company’s ment in capital equipment, this is even
ment in R&D. Our industry groups sales significantly. DeLaval anticipated more the case for Sidel. The market
spend approximately 3 to 4 per cent the difficult market conditions and for bottling and filling lines became a
of sales on R&D. We are proud of our management and employees across market where customers put orders
strong commitment to R&D and it is im- the company responded quickly by on hold or cancelled them during the
portant for our customers to know that revising their budgets and cutting past year. The life cycle management
we are continuing to invest in our future. costs. The company managed to part of Sidel’s business, including service
quickly adjust its organisational struc- and spare parts, has benefited from
STRONG ACHIEVEMENT BY ture to match the changing market the market situation, although this is a
TETRA PAK conditions. Helpfully, the reduction of relatively small part of Sidel’s overall
Tetra Pak had another very good year. capital spending by DeLaval customers operations. In this difficult business
Even though sales were almost flat, opened up opportunities for repair, environment the management of Sidel
mainly due to customers’ postpone- spare parts and service – thus this continues to deliver according to the
ment of capital expenditure, Tetra Pak important part of the DeLaval business restructuring plan and has additionally
once again delivered strong results. performed well. increased its cost reduction targets.
Sales increased in markets such as
Asia and the Middle East. However, TWO MAIN CHALLENGES SUBSTANTIAL EFFORTS ON R&D
North America, Europe and some A key factor for DeLaval in the years As well as focusing on operational
countries in Eastern and Central to come is an increase in global milk efficiency Sidel continues to make
Europe did not enjoy meaningful growth prices so that farmers can return to substantial efforts within R&D. The
in 2009. Cost management and profits. When this happens, farmers company has a new aseptic filler and a
productivity improved substantially. will be in a position to make capital new family of blowers and labelers in
Tetra Pak also did an excellent job in investments, which in turn will benefit the pipeline. With investments being
managing its balance sheet, particu- DeLaval, as the leader in top quality, made in R&D, Sidel can efficiently

6 TETRA L AVAL 2009/2010 / COMMENTS BY THE CHAIRMAN OF THE BOARD

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meet the needs of its customers for
stand alone machines or complete
bottling and filling lines. Sidel also
continues to invest in markets with a
strong growth potential. The Beijing
factory, the largest investment in the
history of the company, is a very good
example of how Sidel is positioned to
work closely with their customers in
the Asian market.

ANOTHER GOOD YEAR FOR


TETRA LAVAL INTERNATIONAL “We are optimistic about the potential for our sales
Tetra Laval International had another
successful year. Some of the main growth, despite the opportunities being unevenly
achievements involved Tetra Laval spread around the globe. Asia, Russia and the
International’s support of the industry
groups in managing their balance
Middle East are just a few of the markets where
sheets, an investment in a new IT we would like to capitalise on opportunities.”
system for the treasury function, and
the continued leadership of the Group’s
corporate governance framework.
The Board of course bears the ultimate focus on quality, operational efficiency the environment by continuously
responsibility for corporate governance, and top line growth. DeLaval will con- reducing the environmental footprint,
but Tetra Laval International has been tinue with efficiency improvements and and constantly improving everything
supporting the Tetra Laval Group introducing new products to the market. we do. Above all, quality is about
Board with this important initiative. Amongst others, more robotics and exceeding customer expectations.
automation will be added to their Finally, I would like to express my
POSITIVE SIGNS FOR 2010 range of products for dairy producers gratitude to all employees within the
Looking ahead, I anticipate that 2010 and an increasing focus on sustain- Tetra Laval Group for their outstanding
should be a solid year for the Tetra Laval able dairy farming. Sidel will complete work and sacrifices during the challeng-
Group. Through the actions taken by its restructuring plan, continue devel- ing year of 2009. With improved effi-
governments there is improved under- opment of new products and capitalise ciency and new products, we have
lying stability in the global economy on the growth opportunities in places the opportunity to grow when the
and hopeful signs for an economic such as China. economy turns upwards, and by
recovery. Another positive factor is taking good care of our customers
that raw material prices are expected EXCEEDING CUSTOMER we can strengthen our market position
to remain stable offering us better EXPECTATIONS in the years to come.
cost control. We are also optimistic Quality is the theme for this year’s
about the potential for our sales brochure. 40 years ago my first job Larry Pillard
growth, despite the opportunities being was as a chemist in a quality control
unevenly spread around the globe. laboratory. To me quality has many
Asia, Russia and the Middle East are aspects beyond the more obvious
just a few of the markets where we ones, such as developing, delivering
would like to capitalize on opportunities. and installing the product according
For 2010 Tetra Pak will continue to to customer specification, protecting

TETRA L AVAL 2009/2010 / COMMENTS BY THE CHAIRMAN OF THE BOARD 7

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TETRA LAVAL GROUP BOARD
– a supervisory board to the Tetra Laval operational units

The three Tetra Laval industry groups • Corporate governance seeks to procedures for making decisions
have operations and representatives in promote compliance with regula- with regard to corporate affairs.
more than 170 countries. It is a decentra- tions, transparency and accounta-
• Financial and operational control is
lised organisation but with clear rules bility, and can be defined as the
a second major responsibility for the
and guidelines. The framework for relationship of a company to its
Tetra Laval Group Board. To support
Corporate Governance establishes the stakeholders. The Corporate
the Board in these functions, an
Board’s expectations for the industry Governance structure specifies
Audit Committee and a Remunera-
groups, and communicates govern- the distribution of authorities and
tion Committee have been formed.
ance guidelines throughout the organi- responsibilities between the Board,
The Remuneration Committee deals
sation. The Tetra Laval Group Board management and shareholders,
with the overall policies concerning
has six other areas of responsibility. and spells out the guidelines and

SIR KEITH WHITSON JÖRN RAUSING LARRY G. PILLARD PAUL SKINNER

A non-executive Board Member since A non-executive Board Member of Chairman of the Board since 1 January A non-executive Board Member
2005. Sir Keith Whitson is retired the Tetra Laval Group Board since 2003. Larry Pillard joined the Board since 2005. Paul Skinner is Chairman
Group Chief Executive of HSBC 1991 (an alternate Board Member of as non-executive Board Member in of Infrastructure UK, a division of HM
Holdings plc. He also served as a the Tetra Pak Group Board since 1985). 2001. He was previously Chief Execu- Treasury. He was previously a Group
non-executive Director of the Finan- Jörn Rausing is also a Board Member tive of the Tate & Lyle Group since Managing Director of Royal Dutch/
cial Services Authority in London from of Alfa Laval AB and DeLaval Holding November 1996. He joined the British Shell and Chairman of Rio Tinto plc.
1998 to 2003. During his career with AB and of Ocado Ltd. He is the based sugar, cereal sweetener and He is also a non-executive director of
HSBC he worked in Hong Kong, Tetra Laval Group’s head of Mergers starch company in 1992 as President Standard Chartered plc and Air Liquide
USA, Germany, Malaysia, Indonesia and Acquisitions. He is also the and Chief Executive Officer of A E S.A., and a non-executive member of
and the United Kingdom. Chairman of the Remuneration Staley Manufacturing Company, the the Board of INSEAD, the European/
Committee of the Tetra Laval subsidiary responsible for all starch Asian business school.
Group Board. operations in North America. Prior to
Tate & Lyle he was with Cargill Inc
for 23 years. He is a non-executive
director of Bunge Ltd, USA.

8 TETRA L AVAL 2009/2010 / TETRA LAVAL GROUP BOARD

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remuneration within the Group and responsibility. In addition to approving
with salaries and other benefits for senior management appointments,
senior management. The Audit- the Tetra Laval Group board also
Committee deals with both internal ensures that the industry groups have
and external issues and is respon- appropriate succession planning for
sible for the proper maintenance of senior positions.
an audit organisation, and of course
• The final two other issues in which
review of the financial results.
the Board takes a direct role are in
• Development and definition of overall defining financial targets for the
strategies and policies is a third area Group’s different operations and for
of responsibility. Although the industry total resource allocation within the
groups have different business industry groups.
models, strategies, and operate The Tetra Laval Group Board
independently from each other, there schedules four regular meetings each
are a number of areas where common year and when circumstances require,
policies are beneficial to the Group. additional meetings take place.
• The appointment of senior manage-
ment is a fourth major area of board

KIRSTEN RAUSING BERND PISCHETSRIEDER FINN RAUSING JÜRGEN WEBER

An alternate Board Member since 1985 A non-executive Board Member A non-executive Board Member of A non-executive Board Member
and a non-executive Board Member since 1999. Dr. Bernd Pischetsrieder the Tetra Pak Group Board from 1985 since 2003. Dr. Jürgen Weber
since 1991. Kirsten Rausing is a has been Chairman of the Board of to 1989 and of the Tetra Laval Group became Chairman of the Supervisory
member of the Jockey Club and a Management of Volkswagen AG from Board from 1995. Finn Rausing, who Board of Deutsche Lufthansa AG in
director of Jockey Club Estates Ltd., 2002 to 2006. He has been Chairman is the Chairman of the Audit Committee June 2003 after having served the
and formerly of the Animal Health of the Board of Directors of Scania AB, of the Tetra Laval Group Board, is company as Chairman of the Board
Trust, the British National Stud and Sweden from 2002 to 2007. He is also a Board Member of Alfa Laval AB, of Management for twelve years. He
the British Bloodstock Agency, plc. Member of the Supervisory Boards DeLaval Holding AB, Swede Ship is Chairman of the Supervisory Board
In addition, Ms. Rausing is the past at Metro AG and Münchener Rück- Marine AB and Nordkap Holding AG, of Willy Bogner GmbH & Co. KGaA
Chairman of the European Federation versicherungs-Gesellschaft AG, all as well as Chairman of R.R. Institute and LP Holding GmbH and member
of Thoroughbred Breeders’ Associa- based in Germany. of Applied Economics AB. of the Supervisory boards of Allianz
tions (Paris) and of the E.F.T.B.A. Lebensversicherungs-AG, Bayer AG
Veterinary Commission. She is the and Voith AG, all based in Germany.
current Chairman of the Thorough-
bred Breeders Association of Great
Britain.

TETRA L AVAL 2009/2010 / TETRA LAVAL GROUP BOARD 9

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Comments by the CEO, Tetra Pak

GOOD RESULTS DESPITE


A DIFFICULT MARKET
2009 was a strong year for Tetra Pak Chinese government acted effectively 20 NEW PRODUCTS
despite having to deal with some diffi- and decisively through a variety of During 2009 Tetra Pak launched 20
cult market conditions, such as the measures, such as closing plants which new products. The Tetra Pak A3/iLine
melamine crisis in China and the global did not live up to normal quality stan- was further developed with the em-
financial crisis. In summary, Tetra Pak’s dards, stricter regulations, and follow-up phasis on cost-driven innovation. The
sales volumes increased by one per cent inspections. These actions have new fully automated line reduces the
in 2009 and a strong operational restored confidence amongst Chinese customers’ operational costs by an
result was achieved. We also improved consumers. Additionally, the com- impressive 10 to 40 per cent. The new
our inventories, capital expenditure modity prices took a tumble after version of the Tetra Brik Edge pack-
and working capital, which strength- having peaked during the fall of 2008, age with increased convenience
ened our balance sheet. particularly for plastics, and this was well received by customers,
helped us to reduce costs. Tetra Pak retailers and consumers and the new
A QUICK RECOVERY IN CHINA also conducted a strict cost control Tetra Lactenso Aseptic product – UHT
The good results were helped by a operation during the year and post- processing equipment – reduces the
much quicker recovery of the Chinese poned investments which were not consumption of water, steam and
milk market than first thought. The essential in the short-term. waste. In addition the next version of

Tetra PlantMaster gives full control and traceability. Favourable development in China.

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“Tetra Pak’s sales volumes increased
by one per cent in 2009 and a strong
operational result was achieved.”

Tetra PlantMaster gives our customers opportunity for Tetra Pak, since we ence than plastic pouches on the
full control of their operations with high have focused on sustainability matters market.
traceability information, which allows for a long time with good experience
milk to be traced back all the way to in many other places in the world. DIFFICULT MARKET IN RUSSIA
the individual farm and cow. The Russian market had a difficult
BRAZIL MAINTAINED A STRONG development during 2009. The financial
POSITIVE DEVELOPMENT ECONOMY crisis hit the market earlier than in many
IN CHINA Brazil is an amazing story. Despite the other places. We expect that 2010
From a geographical point of view global economic downturn the country will also be a year without growth.
China developed favourably for us, has managed to maintain a strong The juice and nectar segment has
despite fierce competition. Our volumes economy. Our volumes grew by been particularly affected by the crisis
grew by four to five per cent in 2009, around five per cent in Brazil in 2009 however the milk market has remained
which was well ahead of our competi- and we expect them to continue to stable. A positive trend is that the
tors, and we predict a similar level of grow during 2010. There is a huge packaged ambient milk market is
growth during 2010. There are many potential in the market, partly due growing. Most of the milk in Russian rural
non-system suppliers in the market, to conversion to ambient milk. For areas is not currently packed which
some of them with global ambitions. instance, in Northern Brazil the con- creates a big opportunity for us.
In addition, PET suppliers are trying sumption is focused on powder milk
to gain market share. but gradually the preference changes GROWTH IN SOUTH AND SOUTH
Besides increased competition the to packaged milk. In order to adapt to EAST ASIA AND MIDDLE EAST
Chinese market is greatly influenced customer needs we introduced the South and South East Asia continued
by the importance of environmental new Tetra Brik Aseptic Edge package to grow during 2009. More or less every
friendliness. This is a significant with lower cost and better conveni- single market grew, which can be

TETRA L AVAL 2009/2010 / COMMENTS BY THE CEO, TETRA PAK 11

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2010 – YET ANOTHER
CHALLENGING YEAR
Looking at 2010 we have a cautious
view on the market development. We
believe it will be another challenging
year. The high rate of unemployment
will affect the consumption of milk as
well as juice and nectar, particularly in
Europe and in some selected devel-
Double-digit growth in the Middle East. oping markets. This is likely to mean
our customers will postpone their in-
vestments. The lower level of orders for
our Processing business will not be fully
attributed to growth in the ambient throughout the world, which is a foun- compensated by the development of our
chilled market. dation to continue to drive our strategy. Packaging business. So a flat develop-
Similarly the Middle East and ment of volumes is a likely scenario.
surrounding area had a fantastic year IMPROVEMENT ON QUALITY Our long-term objective is to kick-
with a double digit growth. Both the Quality has been in the spotlight this start healthy growth again. We are
milk segment and the juice and nectar year. Customer feedback told us that developing a new growth strategy for
segment experienced positive our quality performance has been the next decade and during 2010 we
development. borderline and that there was an oppor- will focus on continued improvement
tunity for substantial improvement. of customer satisfaction through our
INVESTMENTS FOR GROWTH In response we initiated the quality quality programme. We will also be
Due to the economic recession Tetra Pak programme with the aim to be the keeping a tight cost schedule involving
held tight when it came to investments. undisputed industry leader in quality. low cost sourcing, in order to reach our
However, in Pakistan we continued Our short-term focus is to meet the financial objectives. In addition, we will
our investments in the new factory. goals of our quality dashboard and to be focusing on product development,
We expect to inaugurate the plant exceed customer expectations. We for example introducing a new carton
during 2011. This is an important are working to improve issue resolu- bottle, Tetra Evero Aseptic, to the value
development based on growth oppor- tion, focusing on problem collection segment. By continuing to strive for
tunities. We also continued to upgrade and prioritisation, and then quick improvements to quality alongside
our equipment such as new closures, solution development and implemen- innovation we can strengthen our
printers and laminators. In addition, tation. We are gradually improving on market leading position.
we have continued to invest in R&D in quality and will continue to focus on
order to be able to supply our customers this area for the next few years. Dennis Jönsson
with new innovative products.

FOCUS ON LEADERSHIP
In order to cope with the increasing
requirements of our customers we “We are developing a new growth strategy
invest a great deal in training and
skills development courses for our
for the next decade and during 2010 we
people. We have adapted our leader- will focus on continued improvement
ship curriculum for executives and link it of customer satisfaction through our
closely to our strategy. Leadership
assessment and continued development quality programme.”
of our executive program are important
measures to strengthen our culture.
We are very pleased with the high
degree of our employees’ engagement

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Tetra Pak
Global Leadership Team

DENNIS JÖNSSON
PRESIDENT AND CEO

JÖRGEN HAGLIND ALISTAIR DAVIDSON THOMAS ANDERSSON ANDREAS KARL


CORPORATE COMMUNICATIONS FINANCE & BUSINESS TRANSFORMATION LEGAL AND TAX HUMAN RESOURCES

ALEX ANAVI MICHAEL GROSSE NILS BJÖRKMAN SAM STRÖMERSTÉN


SUPPLY CHAIN OPERATIONS DEVELOPMENT & ENGINEERING COMMERCIAL OPERATIONS PROCESSING SOLUTIONS

TETRA L AVAL 2009/2010 / TETRA PAK GLOBAL LEADERSHIP TEAM 13

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Comments by the CEO, DeLaval

STAYING CLOSE TO CUSTOMERS


IN CHALLENGING TIMES
2009 was indeed a challenging year reflect the market reality. DeLaval incurred during 2009.
for DeLaval and the whole dairy industry. employees have stepped up to the Milk consumption in China and
The global economic downturn has challenge in 2009 and I am confident investment in the dairy industry has
severely affected farmers and resulted that the consolidated efforts of the whole recovered to a large extent since the
in a significant decrease in capital group have given us a firm foundation melamine crisis. During 2009 an in-
goods investment. However, we have on which to grow the business and meet crease in demand was met mostly by
been able to leverage on our after- the market turnaround when it comes. imports. However, there is a decisive
market and services offering where policy in place to support and build
we have experienced growth. The CHALLENGING MARKET up the domestic dairy industry. Since
strength of our complete offering has CONDITIONS the crisis, both consumer and govern-
made it possible for us to stay close During 2009 dairy farmers experienced mental awareness of food and dairy
to our customers by providing them the most difficult market conditions product quality in China has increased.
with the right products and solutions seen for many years. Low milk prices Policies and guidelines on raw milk
even when major investments are not combined with high input costs production and sourcing have been
an option. caused erosion in the dairy producers’ created and focus on the development
Within the Group we have worked equity. Many farmers are still operating and implementation of milking and
throughout the year to continuously with a negative cash flow, or have not dairy production standards improved.
adapt our capacity and cost base to yet managed to catch up with losses In the US, production levels in 2008

The complete offering makes it possible to stay close to our customers.

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had geared up to meet an export de-
mand. When the economic crisis came
it impacted the US dairy industry not
only with a decrease in domestic
demand, but also the disappearance of
export opportunities with low interna-
tional demand and a very strong USD.
In Australia and New Zealand the
market has been relatively positive
considering the circumstances. The
strong USD supported a sharp in-
crease in exports from Oceania, well
timed with the start of season. How- “In 2009 we successfully launched a number
ever, production volumes have been of new products to strengthen our offering.
lower than expected due to the negative
effect of a drought in New Zealand.
The InService™ campaign is now launched
Despite a tough year we now see in many markets improving service
signs of recovery in China, Japan, provision to customers.”
Canada and Latin America and even
in Northern Europe we see some
positive market development.

2009 ACHIEVEMENTS move towards positioning DeLaval in company with the new market and
Against a background of economic the Biosecurity and Animal Health area. customer demands, leaving us well
instability and continuous adjustments The facility will support our ambition prepared to gear up for a market
to align to the market there have also to be a leading player in the produc- turnaround.
been a number of significant achieve- tion of advanced veterinary medicinal
ments this year. In 2009 we success- products and is a state-of-the-art PREPARED FOR MARKET RECOVERY
fully launched a number of new prod- production environment. We cannot be sure when a significant
ucts to strengthen our offering. The market upturn will come to the dairy
InService™ campaign is now launched LEADERSHIP AND EDUCATION industry and to what extent. We see
in many markets improving service From a people perspective the financial the first signs of recovery in many
provision to customers. This year also crisis has had a clear impact on the markets with milk prices stabilising
marks the ten year anniversary of the organisation. Already at the turn of and even increasing in some regions.
VMS and we see growing interest and the year 2008-2009 the process to Our focus now, is on growing our
demand for automation in the dairy adjust the global organisation to reflect market shares and increasing volumes
industry. market conditions was started. The both in capital goods and aftermarket
In November we opened a new number of employees within the Group and services. There is no doubt that
Good Manufacturing Practice (GMP) was reduced by 20 per cent in 2009 we see a renewed interest in investment
facility in Drongen, Belgium. The and a major re-organisation was from farmers but we have yet to see
opening of this facility is a significant implemented to better align the a significant upward trend. Across the

TETRA L AVAL 2009/2010 / COMMENTS BY THE CEO, DELAVAL 15

Tetra Laval_ALLA_2009_2010.indd 15 2010-05-04 11.22


“We take an all round approach to quality.
Group we are focused on securing For DeLaval this means quality in design,
our ability to ramp up production and manufacturing and full solution delivery.
capacity in line with market recovery.
We make quality excellence a priority
FOCUS ON BUSINESS EXPANSION from the very first phase of the
IN 2010
Going forward in 2010 we will continue
development process.”
to grow our three main areas of busi-
ness expansion; Smart Farming,
Sustainable Dairy Farming and Bio- SUSTAINABLE SOLUTIONS AND reducing energy and water use, and
security and Animal Health. ANIMAL HEALTH IN FOCUS thereby operational costs, were well
Our vision is to deliver fully integrated Our goal remains in Sustainable Dairy received in 2009. We also promoted
and automated systems at farm level, Farming to reduce the environmental an automated footbath, a swinging
what we call Smart Farming. Our footprint of farms, while improving milk cow brush upgrade and an organic
strategy is to place dairy farmers in production, farm profitability and the hygiene range to allow farmers better
the centre of fully integrated and auto- well-being of the people and animals safeguard the health and the produc-
mated farm operations. DeLaval aims involved. We have continued to tivity of their herds.
to influence and shape the future of establish the concept throughout the
dairy farming today. We want to year and started to fully integrate it QUALITY
accelerate the transition from milking into our product development and Finally, we take an all-round approach
management to global farm profitability communications, the latter including to quality. For DeLaval this means
management by providing our cus- presentations at World Ag Expo in quality in design, manufacturing and
tomers with decision tools and auto- Tulare and the IDF World Dairy Summit full solution delivery. We make quality
mation technologies that give better in Berlin. To recognise and support excellence a priority from the very first
quality milk and increased profitability. internal projects we have also pub- phase of the development process.
We recognise and address the need lished an internal Environmental and We have continued the work started
to balance economic growth with the Social Report, a non-financial report in 2008/2009 on the process to identify
needs of society, animal health and on the environmental and social and deal with quality issues at an early
the environment. We see the link be- aspects of our own supply chain. stage. We have restructured our engi-
tween high technology, sustainability We continue to develop and promote neering resources to deliver a better
and profitability and are constantly solutions that improve resource effi- and more managed response to
working to bring new ideas to life. ciency on dairy farms. Despite the de- issues, and sharpened the controls
clining market, solutions focused on around reporting and follow up. This
helps us ensure the right priorities are
set and solution delivery with best time
and cost possible.
Our customers depend on us to
provide them with products and solu-
tions that live up to expectations. It is
our responsibility to make sure that is
what they get. In this way, we can
strengthen our market leading posi-
tion in the years to come.

Joakim Rosengren

TETRA L AVAL 2008/2009 / COMMENTS BY THE CEO, TETRA PAK

16 TETRA L AVAL 2009/2010 / COMMENTS BY THE CEO, DELAVAL

Tetra Laval_ALLA_2009_2010.indd 16 2010-05-04 11.22


DeLaval
Group Management Team

JOAKIM ROSENGREN
PRESIDENT & CEO

ANDREW TURNER BENOÎT PASSARD FABIANO AMARO HENRIK SUNDELL


BUSINESS AREA CAPITAL GOODS MARKETING & COMMUNICATIONS REGION LATIN AMERICA GROUP GENERAL COUNSEL

LESZEK JAROSZ JAN OVE NILSSON STEFAN LIDSTRÖM MAGNUS BERG


REGION NORTH AMERICA REGION EUROPE, MIDDLE EAST, AFRICA, GROUP FINANCE & IS SUPPLY CHAIN MANAGEMENT
AUSTRALIA AND NEW ZEALAND

MARKKU VAUHKONEN TIM NICOLAÏ OLOF GERTZ


REGION EAST ASIA BUSINESS AREA AFTERMARKET HUMAN RESOURCES
& SERVICES
TETRA L AVAL 2009/2010 / DELAVAL GROUP MANAGEMENT TEAM 17

Tetra Laval_ALLA_2009_2010.indd 17 2010-05-04 11.22


Comments by the CEO, Sidel

WE KEPT TO THE COURSE


OF OUR STRATEGY DESPITE
THE RECESSION
In 2008 we entered the worst reces- 2008 with full forward momentum,
sion our industry has ever seen. By despite the exceptionally dire condi-
mid 2009, the demand for equipment tions. We were able to do this thanks
had fallen by almost 50 per cent across to the long-term industrial view held
the whole industry. The drop in demand by the Tetra Laval Board and thanks
was inevitably aggravated by a price to the personal sacrifices of many of
war and led to steep losses for us our managers and employees.
and for all our main competitors. But In fact, in the midst of the global
looking back at the last one and a half downturn, we were able to add addi-
years, I am proud to say that Sidel kept tional initiatives to adapt to the market
the strategic course we set in early conditions. One of those new initiatives

18 TETRA L AVAL 2009/2010 / COMMENTS BY THE CEO, SIDEL

Tetra Laval_ALLA_2009_2010.indd 18 2010-05-04 11.24


was focused on our installed base,
where we increased our offering to
customers in the form of upgrades,
line optimisation services and
re-engineering. Initially, we positioned
this as an alternative way to help
customers increase productivity during
hard times with limited budgets for
capital spending. But it is increasingly
clear that our customers have a huge
unfulfilled demand for services regard-
less of the business cycle, and we are
now investing to further differentiate
ourselves as an outstanding service
provider.

UPSWING IN ORDER INTAKE


Today, early 2010, the market is no
“During the autumn and winter of 2009, we
longer quite as bleak. During the autumn saw an upswing in China and the rest of
and winter of 2009, we saw an up- Asia, where the underlying growth in units of
swing in China and the rest of Asia,
where the underlying growth in units packages sold remained strong throughout
of packages sold remained strong the downturn.”
throughout the downturn. More recently,
Latin America has begun to re-emerge.
Another region with strong growth
potential is Eastern Europe, but this packaging market is fundamentally our Market Operations, Sidel is well
region has yet to show any signs of attractive because it is driven by positioned to serve this demand.
recovery. Western Europe and North strong macro trends that will continue
America are two saturated markets in for a long time, namely urbanisation EARLY GAINS FROM OUR
terms of packages consumed, but will and the growth of the middle class in TRANSFORMATION PROGRAMMES
offer good business opportunities in many developing regions. As the world With our ambitious transformation
services and in the trend towards ever develops, demand for the convenience programme along the strategic axes of
more package variants. of packaged beverages will grow product innovation, customer proximity,
All in all, we believe we have entered strongly. With our investment in and operational excellence we put
the recovery phase of this cyclical manufacturing capability in China and substance behind every word of our
downturn. The international beverage the build up of global competences in strategic vision of being the most

TETRA L AVAL 2009/2010 / COMMENTS BY THE CEO, SIDEL 19

Tetra Laval_ALLA_2009_2010.indd 19 2010-05-04 11.24


innovative, responsive and reliable A particularly important development standing leadership in PET products
partner, providing sustainable solu- has been the decision by many Chinese and services we have almost doubled
tions for the beverage industry. This customers to choose aseptic PET our R&D spending since 2007.
strategic transformation programme technology over less technically de-
is complemented by programmes manding alternatives such as hot fill CHALLENGES STILL AHEAD
designed to maintain cost discipline or adding preservatives to the bever- In 2010 we will still suffer from the
and to continuously reduce structure age product. Thanks to these trends weak order intake of 2009 and con-
costs. By driving these programs with and our strong PET product portfolio, tinued weakness in some regions,
undiminished force through the reces- we tripled our order intake in this and we will still face big challenges in
sion we are now emerging with much segment despite the recession – which sustaining the pace of execution of all
leaner and more reliable processes. clearly shows the benefits of developing our programmes. But we will also
This is already evident in measures differentiated products with high tech- have the satisfaction of seeing these
such as reduced lead times, much nology content. efforts beginning to manifest them-
higher OTIF (On Time, In Full) scores, In fact, to assure that we fulfil our selves in improved financial results.
lower warranty costs, and fewer claims. strategic mission of regaining out-
As market conditions normalise, it will Mart Tiismann
also be evident in improved profitability.

STRONG PRODUCT RANGE “We forcefully and successfully


During 2009 we forcefully and re-entered the market for Sensitive Products
successfully re-entered the market
for Sensitive Products with a strong
with a strong range of outstanding products,
range of outstanding products, in- including our unique Predis dry preform
cluding our unique Predis dry preform decontamination system and our new
decontamination system and our new
aseptic filler, the Sensofill Fma. aseptic filler, the Sensofill Fma.”

We deliver differentiated products with a high technology content.

20 TETRA L AVAL 2009/2010 / COMMENTS BY THE CEO, SIDEL

Tetra Laval_ALLA_2009_2010.indd 20 2010-05-04 11.24


Sidel
Group Leadership Team

MART TIISMANN
PRESIDENT AND CEO

MARIA VARSELLONA ROBERTO BETTINI RICCARDO ROSSELLI MICHEL PICANDET


LEGAL HUMAN RESOURCES FINANCE LIFE CYCLE MANAGEMENT

ROBERTO SCHIANCHI SID JOHARI FRANCOISE RAOUL-DUVAL


MARKET OPERATIONS INDUSTRIAL OPERATIONS STRATEGY & BUSINESS DEVELOPMENT

TETRA L AVAL 2009/2010 / SIDEL GROUP LEADERSHIP TEAM 21

Tetra Laval_ALLA_2009_2010.indd 21 2010-05-04 11.24


AL WAIS IN SYRIA
– COMPLETE SOLUTIONS FROM
DELAVAL AND TETRA PAK
Al Wais Group in Syria is a joint customer of DeLaval and Tetra Pak. DeLaval has supported Al Wais
to set up the entire cow farming and milk production, and Tetra Pak supplied a complete production
system for the dairy project. Key success factors for both companies have been to fully understand
the needs of the Al Wais Group and to offer complete solutions and total dedication to make these
projects commercially successful for the customer.

Al Wais started as a small company Al Wais has expanded vertically from


producing candy. In order to avoid solely starch and glucose production
costly product losses, the company into cow farming and milk production.
invented new products. So Al Wais
started to produce sweeteners and GIVING THE CUSTOMER
set up a glucose plant. From corn raw FULL CONTROL
material Al Wais produced starch and DeLaval’s starting point was fully
other products which they sold on the understanding the needs of Al Wais
market. The remaining product of corn and making an offer which gave the
was the peel, which became excellent customer full control over their project.
high protein feed for cows. Therefore, Their specific needs were, among
Al Wais bought a herd of cows, which other things, to have cutting edge
led to another “waste product” – milk. technology and a strong customer focus
from DeLaval.

TETRA LAVAL DONATION IN CHINA


Thanks to a 20-million-yuan assistance programme supported by the
Tetra Laval Group, 10,000 children in the earthquake-damaged Sichuan
area of China can continue their high school education. The programme,
in cooperation with the China Children and Teenagers’ Foundation, will
not only help students complete their high school studies, but will also
support those on their way to college and university. This demonstrates
how part of the fund of US$ 30,000,000 launched by the Tetra Laval
Group in May 2008 is being used to help victims of the tragic natural
catastrophes in China and Myanmar.

22 TETRA L AVAL 2009/2010 / TETRA LAVAL CORPORATE STORY

Tetra Laval_ALLA_2009_2010.indd 22 2010-05-04 11.24


“We designed our proposal osal to meet
their needs. We then extended our is a producer that knows the value of
design support, supervised civil con- keeping operating costs down and
structions work, and made sure there does not accept any unnecessary
was an accurate and fast installation product losses. So Tetra Pak made an
process for the milk production facility,” offer based on performance guarantees.
says Qais Haddadin, Marketing “From the early project start, we
Manager for DeLaval East Med. decided to use our performance
DeLaval supplied a fully automated guarantees as a differentiator in the
parallel parlor and a fully automated sales process. We took a pro-active
Herringbone parlor. In addition to this, approach and emphasised the com-
it also supplied a wide range of farm mercial value from a running cost
assortment like rubber mats, cow perspective. In addition, our knowledge “It is not only a project of great magni-
brushes, dairy fans, footbaths, some from setting up production to distribution tude, it is also a deal that brings the
of which were introduced for the first and marketing to consumers was a Tetra Lactenso Aseptic solution to the
time in the region. decisive factor why Tetra Pak won the Middle East for the first time,” says
contract,” says Bo Liedberg, Processing Bo Liedberg.
PROBLEM-FREE OPERATION Director of Tetra Pak in Jordan. Al Wais is an entrepreneurial customer
“Our commitment to the customer
which involved both DeLaval and
does not stop when the project is BIGGEST GREEN FIELD OPERATION
Tetra Pak. It is a unique project, since it
completed. We make sure that our Al Wais in Aleppo is one of Tetra Pak’s involves competencies of dairy farming,
customer enjoys stable and problem- biggest green field projects in the processing and packaging from both
free operation. To ensure this, we offer Middle East. Tetra Pak is supplying a companies. DeLaval and Tetra Pak have
a preventive maintenance programme complete production system from raw shared information and have had
that helps to avoid operational material intake up to finished goods mutual meetings and farm and plant
problems. We also offer a 24 hours storage. The project includes both visits with the customer.
emergency visit program in case of any Tetra Pak processing and filling equip-
sudden failure,” says Qais Haddadin. ment. This ten million Euro project is
expected to be in commercial produc-
PERFORMANCE GUARANTEES tion by the summer of 2010. Products
ON PRODUCT LOSSES such as milk, juice and yoghurt will be
The next step for the Al Wais Group produced and the capacity is esti-
was to set up dairy production. Al Wais mated to be about 100 tons per day.

TETRA L AVAL 2009/2010 / TETRA LAVAL CORPORATE STORY 23

Tetra Laval_ALLA_2009_2010.indd 23 2010-05-04 11.24


Comments by the President, Tetra Laval International

QUALITY IN CONTROL AND RISK MANAGEMENT


ARE KEYS TO STRONG PERFORMANCE IN
GROUP FINANCE AND CONTROL
Tetra Laval International (TLI) has continued to be a strong partner to the Board and to add value to the
Tetra Laval Group by enhanced finance and control support. Among other things TLI has led a programme
to improve global short-term cash and liquidity management processes, introduced a new state-of-the-art
management treasury system and taken measures to reinforce risk management within the Group.
TLI has also reviewed the principles for corporate governance and internal control.

The global business and financial ment in 2009 was the strong positive limiting the supply of credit and becom-
landscapes are being reshaped today cash flow delivered by the Group and ing more demanding when renegotiating
by a number of transformational events the overall result of having effectively terms of banking arrangements.
and trends. Economic pressures, assessed our most critical business The Group’s financial situation remains
geopolitical development and regula- issues and having worked to identify stable and secure despite the volatility
tory demands are all increasing in the best way to respond to those in the financial markets. Long-term
response to the financial crisis. As part challenges. refinancing of our borrowing facilities two
of this transformation, the financial years ago means that we did not face
environment in the broad sense is also EVALUATING THE FUNDING AND any refinancing or increased borrowing
being reshaped, resulting in a number LIQUIDITY STRATEGY needs this year and that our financing
of significant challenges for manage- In spite of efforts by many central banks, costs remained very low. Moreover,
ment and boards. Our main achieve- a more cautious banking sector is we were able to maintain all financings

24 TETRA L AVAL 2009/2010 / COMMENTS BY THE PRESIDENT, TETRA LAVAL INTERNATIONAL

Tetra Laval_ALLA_2009_2010.indd 24 2010-05-04 11.24


TETRA LAVAL INTERNATIONAL
in place and no Group company suffered
any shortage of liquidity despite the
financial crisis. Nevertheless, TLI has
led a programme to improve global
short-term cash and liquidity manage-
ment processes with a successful
implementation of a cash pooling
structure across Asia. This pooling
structure is to be extended next year
to all major markets. In addition, stan-
dardised reporting was implemented
for all bank accounts globally and
now provides the Group with daily
visibility of global cash.

MANAGING FINANCIAL RISKS “Our main achievement in 2009 was the strong
In 2009, TLI Treasury continued to follow
a prudent hedging strategy aimed at
positive cash flow delivered by the Group and
mitigating the Group’s foreign exchange the overall result of having effectively assessed
and interest rate risks, amid ongoing our most critical business issues and having
volatility in financial markets. Addition-
ally, the Treasury team started a new worked to identify the best way to respond
focus on mitigation of the impact of to those challenges.”
commodity prices.
A key achievement in 2009 was the
replacement of a number of legacy To reduce the risks of customer defaults Two major projects dominated the risk
systems in the area of financial man- impacting Tetra Laval, a new Group- financing area. A risk transfer initiative
agement by a state-of-the-art treasury wide Credit Risk policy will come into aimed at identifying key business and
management system which went live effect as of 2010. This will standardise traditionally non insurable risks and
in July 2009. The system offers a the assessment and evaluation of developing solutions to finance or
number of added functionalities and customer credit risk. To support the transfer them. A global insurance
visibility over the previous system policy, a web tool has been developed review helped to identify savings and
and has led to a more structured and that generates a credit rating for each opportunities to be derived from new
efficient control and assurance of the customer to allow comparison of regional or global insurance programmes
financial flows. customer risk and harmonising of finan- and deliver enhanced compliance of
cing conditions. local insurance arrangements.

TETRA L AVAL 2009/2010 / COMMENTS BY THE PRESIDENT, TETRA LAVAL INTERNATIONAL 25

Tetra Laval_ALLA_2009_2010.indd 25 2010-05-04 11.24


EFFECTIVELY MANAGING better visibility of possible future with a view to introducing new stan-
TODAY’S BUSINESS RISKS scenarios. TLI has in particular aug- dards for documenting internal control
Looking beyond internal controls mented its analysis of receivables and systems throughout the Group, ensuring
around financial reporting to broader supplier risk, and has extended the that they address most local regulatory
enterprise risks facing the business, we budgeting planning requirements for requirements and that the corporate
have increasingly focused on significant the Group to focus attention on phas- governance framework including the
business drivers and strategic enter- ing and increased accuracy of profit internal control systems supports the
prise risks. and cash forecasting. Moreover, TLI external audit process.
As part of the review of the corporate has successfully strengthened the
governance and internal control systems, capital expenditure approval process OUTLOOK
the Group-wide risk management tool for the Group and deepened the analysis Looking forward to 2010, TLI’s dedi-
has been reviewed and reissued to of operational costs and operational cated and professional staff will focus
assure full alignment with the Turnbull capital to allow a better grip on the on three main initiatives to continue to
guidance and to continue to implement cash flow and liquidity situations. deliver high quality in the area of finance
best practice in risk management and control. Firstly, a deeper integra-
throughout the Group. The new tool ENHANCING CORPORATE tion of corporate governance, internal
most notably includes a cogent defini- GOVERNANCE control and risk management to afford
tion of the materiality of risks and an Since 2004, Tetra Laval’s corporate the Board even better decision support
assessment of the quality of the con- governance system has followed the and increased monitoring of compli-
trols and risk management processes. Combined Code of the United King- ance with policy. Secondly, on the tax
The new tool was piloted in 2009 and dom and the Turnbull guidance on planning side, the huge changes in
will be rolled out to all industry groups internal control. A comprehensive the fiscal environment will demand
in 2010. compliance system has been imple- much innovation in managing the tax
mented over the last four years. The affairs of the Tetra Laval Group over
INCREASED TRANSPARENCY choice of the Combined Code as the the coming years. Finally, to support
To enable the Board to face the un- appropriate corporate governance the Board, the recently launched
certainty of the markets last year and system for the Group has been upheld. return on capital enhancement pro-
manage the risks effectively, TLI has 2009 saw a review of this system and gramme will aim to drive profitability
delivered not only enhanced risk re- the internal control structure to ensure and balance sheet efficiency.
porting but also an increased amount complete alignment and compliance
of forward-looking information for a with the Turnbull guidance. But also Martyn Zedgitt

26 TETRA L AVAL 2009/2010 / COMMENTS BY THE PRESIDENT, TETRA LAVAL INTERNATIONAL

Tetra Laval_ALLA_2009_2010.indd 26 2010-05-04 11.24


TETRA LAVAL INTERNATIONAL
Tetra Laval International
Management

MARTYN ZEDGITT
PRESIDENT

JÖRN RAUSING IAIN MACLEAN MARC HÄFLIGER


MERGERS & ACQUISITIONS LEGAL & TAX OPERATIONS & ADMINISTRATION

ROBERT SWAN EMILIO RUIZ-BERDEJO ROBERT NORRIS


AUDIT FINANCE GROUP FINANCIAL PLANNING
& REPORTING

TETRA L AVAL 2009/2010 / TETRA LAVAL INTERNATIONAL MANAGEMENT 27

Tetra Laval_ALLA_2009_2010.indd 27 2010-05-04 11.25


TETRA LAVAL IN THE WORLD
TETRA PAK CARTON PACKAGES SOLD 1999 – 2009
MARKETS COVERED
145,030 mio packages sold 2009

Mio packs
160,000
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

DELAVAL MARKETS COVERED SALES DEVELOPMENT 2004 – 2009

1,200

1,000

800

600

400

200

0
2004 2005 2006 2007 2008 2009

SIDEL MARKETS COVERED PET BLOW-MOULDING MACHINES SALES


FROM 1999 – 2009
Total 5,000 units sold up till 2009

400

350

300

250

200

150

100

50

0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

28 TETRA L AVAL 2009/2010 / TETRA LAVAL IN THE WORLD

Tetra Laval_ALLA_2009_2010.indd 28 2010-05-04 11.25


TETRA PAK
Corporate presentation
2009/2010

Tetra Laval_ALLA_2009_2010.indd 29 2010-05-04 11.25


TETRA PAK IN TWO MINUTES

PRODUCTS SOLD IN TETRA PAK PACKAGES IN 2009


NUMBER OF EMPLOYEES 2010
OF 70,674 MILLION LITRES OF PRODUCTS

21,672 Liquid dairy products 63.2%

Juice & nectars 18.5%


NET SALES 2009

8,955 MILLION EUROS


Still drinks 8.3%
Wine & spirits 2.8%
Other 7.2%

VISION

We commit to making food


safe and available, everywhere

CORE VALUES PRODUCTS


At Tetra Pak we are specialists in complete solutions for the processing,
CUSTOMER FOCUS & LONG-TERM VIEW
packaging and distribution of food products. Our solutions are
We ensure we add value and inspire our
specifically designed to be as economical with resources as possible.
customers because we recognise that they
Dairy products, juices and nectars, ice cream, cheese, dry foods,
come to us by choice. We dare to lead with
fruits, vegetables and pet food are examples of products that can be
a focus beyond tomorrow and take oppor-
processed or packaged in Tetra Pak processing and packaging lines.
tunities to learn and grow.
We focus on keeping the consumption of all raw materials and energy
to a minimum during both the manufacturing process and distribution.
QUALITY & INNOVATION
The processing solutions are also designed to treat the products gently.
We do not compromise on quality. We relent-
lessly drive for better, fit-for-purpose solutions
Our products are divided into
and breakthrough innovations.
several categories:
• Packages
FREEDOM & RESPONSIBILITY • Processing equipment
We have the freedom to take initiative and act • Filling machines
decisively in the best interests of Tetra Pak • Distribution equipment
and our customers. We take responsibility for • Service products
our actions and contribute to the communities
in which we operate.
R&D
PARTNERSHIP & FUN
Our customers need faster, better and cheaper developments to
We respect and rely on one another and all
reduce their operational costs and to increase performance in order
our stakeholders for exceptional results.
to remain competitive. We invest in technology and new products in
We enjoy working together and celebrating
response to customer, consumer and market dynamics.
our achievements.
OUR STRATEGIC PRIORITIES
Faster, better, cheaper is our approach to delivering on the three strategic
priorities:
• Focus on, and grow the core
30 TETRA PAK IN TWO MINUTES
• Emphasise cost-driven innovation
• Drive operational performance

Tetra Laval_ALLA_2009_2010.indd 30 2010-05-04 11.25


MARKETS & CUSTOMERS
Tetra Pak operates with 21,672 employees in over
170 countries around the globe. Our customers
come from different parts of the food industry, such
as the dairy, cheese, ice cream, beverage and pre-
pared food sectors.

FILLING MACHINES INSTALLED


ENVIRONMENT AND CSR – JANUARY 2010

Our Corporate Social Responsibility cornerstones are:

FOOD FOR DEVELOPMENT part in our business strategy and our


For more than 45 years, we have commitment to dairy customers
helped customers, governments, inter- around the world to make food safe
national and community-based orga- and available everywhere. We expect
nisations to provide milk to children to see a further expansion of these GREATER CHINA 1,390
SOUTH EUROPE 1,229
around the world. programmes in the coming years.
CENTRAL & SOUTH AMERICA 1,162
On 30 September 2009, World GREATER MIDDLE EAST 1,035
School Milk Day, we announced our GLOBAL COMPACT CENTRAL EUROPE 825
support for two additional school We are a member of UN Global com- EAST EUROPE & CENTRAL ASIA 742
milk programmes – in Ecuador and NORTHEAST ASIA & OCEANIA 686
pact, which brings together compa-
SOUTH & SOUTHEAST ASIA 656
Morocco – as well as the expansion of nies, UN agencies, labour and civil NORTH AMERICA 540
existing programmes in Romania, society to support ten principles in NORTH EUROPE 490
Thailand, Mexico and Iran. the areas of human rights, labour, SUB-SAHARAN AFRICA 291
Through the Food for Develop- the environment and anti-corruption. SUPPLY CHAIN OPERATION 1
NOT ASSIGNED 1
ment Office (FfDO) we work in close We also cooperate with NGOs like
TOTAL 9,048
partnership with governments, WWF on forestry and climate
development agencies, non-govern- change issues.
mental organisations (NGO), local
dairies and farmers to deliver almost ENVIRONMENTAL SUSTAINABILITY
six billion packages of milk to 45 We are committed to running our
million children in schools in over 50 business in an environmentally sound OUR BRAND
countries around the world. School and sustainable way. We set goals It is our goal to create a well-known and respected
feeding programmes can have a for continuous improvement in our brand name – Tetra Pak – and to improve the
considerable impact on the local development, sourcing, manufacturing, image / perception of our carton packages as being
community and economy. Not only and transportation activities. As part the most preferred and environmentally sound
do they improve the health and of that commitment, we take a long- ones, thus, achieving sustainable profitable growth.
learning capabilities of children, they term and life cycle view, We take an active role in shaping a better future,
often act as a catalyst for agricultural continually improving building on our four Brand Pillars – Food Safety,
and economic development. environmental per- Customer, Environment and Well-Being.
In 2009, following the decentrali- formance, Our motto, PROTECTS WHAT’S GOOD,
sation of the school milk feeding communicating reflects the philosophy upon which we
programme in Iran, Tetra Pak openly with conduct our business. It provides a
strengthened its relationship with our stake- consistent worldwide positioning of
the School Feeding Committee and holders and Tetra Pak across the value chain support-
now partners with the UN’s World reporting ing our Vision, Mission and Core Values.
Food Programme on a number of regularly on
school educational activities in Tehran our perfor-
and across the country. mance.
School milk programmes play a vital

TETRA PAK IN TWO MINUTES 31

Tetra Laval_ALLA_2009_2010.indd 31 2010-05-04 11.25


EVERYDAY EXCELLENCE PEOPLE
DELIVERING EVERYDAY EXCELLENCE

PEOPLE

Quality dashboard to
improve performance
In good times customers focus on is to become the undisputed quality “QUALITY NEEDS TO BE PART OF
building capacity in fast growing mar- leader of the industry. “Our current per- OUR DNA. IT NEEDS TO PERMEATE
kets. However, the crisis in 2008 and formance varies. We are making steady
EVERYTHING WE DO. IT NEEDS ALL
2009 has re-emphasised the need to progress on the start-up quality of
optimise productivity and quality. The new equipment and driving down OF US TO PLAY OUR PART.”
cost of non-performance is one of the defects, but need to accelerate. With
most important issues to handle for a large set of customer needs, we are
any customer, making it equally im- working to prioritise efforts. This requires
portant for Tetra Pak to put quality on a cohesive company-wide effort and
the daily agenda. an integrated strategy. Quality needs
To do this, Tetra Pak has developed to be part of our DNA. It needs to per-
a Quality Dashboard focusing on metrics meate everything we do. It needs all
from a customer perspective. “We are of us to play our part”.
driving to improve issue resolution
performance, focusing on problem CONSISTENCY IN FOCUS
collection and prioritisation, then rapid This cohesive effort from the entire
solution development and implemen- organisation now means that opera-
tation. We are also looking at mecha- tional groups, process owners and
nisms to improve how we build on platform teams are adopting the quality
lessons learned, so that as we solve dashboard to ensure consistency and
problems we learn deeply from the a uniform approach. The Quality
experience, grow and be an increasingly Dashboard is all about the customer.
dependable partner. Other important Hence, much of the work is being
initiatives address spare parts quality done in close cooperation with cus-
and changing the way we set quality tomers in many different markets.
targets for new development projects”, “What will really matter is how we
says Phil Maguire, Vice President shall collaborate across organisations
Quality Programme. within Tetra Pak in order to make a
difference for our customers. We can
BECOMING UNDISPUTED LEADER measure different activities internally, we
He is responsible for the cross-company can measure suppliers’ quality, but the
initiative to raise quality and customer ultimate test is always from a customer
satisfaction in every cluster. The goal perspective”, concludes Phil Maguire.

32 TETRA PAK PEOPLE

Tetra Laval_ALLA_2009_2010.indd 32 2010-05-04 11.26


Carol Zimmerer

Excellence Awards for


outstanding performance
Every year, Tetra Pak acknowledges teams or individuals who have made a real
difference to the business and to customers. The Excellence Awards recognise people
who contribute with excellent performance reflecting the company strategy, core
values and brand.
In 2009, Carol Zimmerer and Bozena Malmgren were two of the co-workers
receiving the award. Carol Zimmerer, Supply Chain Integration Director in Rayong,
Thailand, was recognised with the Leadership Excellence Award for living the core
values and representing everything about performance, thereby allowing many
others in her team to step up to the plate. Bozena Malmgren, Technologist in
Tetra Pak Dairy & Beverage Systems in Lund, Sweden, was awarded the Customer
Excellence Award for helping customers to introduce new successful products by
generously sharing her unique competence and taking pride in understanding the
customer’s real problem.

Bozena Malmgren

Global initiative
to benefit customers
In 2009 all Tetra Pak employees partici- intense training and interaction.
pated in LiVE Tetra Pak, an internal LiVE Tetra Pak gave each and every
engagement programme tailored to employee the opportunity to better
increase the understanding of Tetra Pak’s understand how he or she can contri-
challenges and how the company’s bute towards customer satisfaction
core values, brand promise and strate- and the company’s future growth.
gic direction help Tetra Pak to achieve “Every day, employees’ actions
its vision. Held in more than 80 loca- influence stakeholders’ perception of
tions in 53 countries and more than what Tetra Pak stands for. This initiative
20 languages, LiVE Tetra Pak takes a helps us speak with one voice and
multi-channel approach where videos, appear with one face in the market”,
interviews, Q&A sessions and other says Dennis Jönsson, President and
interactive activities fill four hours of CEO of Tetra Pak.

TETRA PAK PEOPLE 33

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2009/2010 IN BRIEF

PROGRESS ON
OUR CLIMATE GOAL
As a partner to the WWF Climate Savers done to date. Our 2009 energy use was
programme we actively work on our a similar level as in 2002, despite a 33 per
commitment to achieving our five-year cent increase in packaging production
carbon reduction goals. Our goal is to over the same period. Mitigating climate
reduce carbon emissions 10 per cent change is a global responsibility and our
between 2005 and 2010 in absolute terms. commitment to drive the business in an
We are in a good position to meet the environmentally sound way is an integral
challenging climate goal by 2010 if we part of our company culture.
continue to deliver improvement as

TETRA GEMINA ASEPTIC


GIVES SADY PRIDONIA A
SUCCESSFUL “FACE LIFT”
Sady Pri
Pridonia, a leading company in fruit production and pack-
aging iin Russia chose the innovative Tetra Gemina Aseptic to
re-launch
re-laun its leading juice brand. Tetra Gemina Aseptic allowed
them to differentiate their product on shelf. “Along with its
original
origin shape, it has good functionality – it pours really well
until the last drop. The smaller cross-section of the package
also allows us to utilise retail space much more optimally”,
says
say Irina Samokhina, Marketing Director, Sady Pridonia.

34 TETRA PAK
K 20
2009/2010
0009
09/
9// 2
9 201
2001
0 1 0 IN
10 I N BRIEF
BR
BRI
RIE
RII EF
IEEF

Tetra Laval_ALLA_2009_2010.indd 34 2010-05-04 11.26


TETRA TEBEL CASOMATIC
Our customers require solutions, not just cheese-making ever since. One driving force
components, so we build efficiency, in the development of the new version was
productivity and sustainability into all of to achieve even greater efficiency through
our processing steps, enabling cheese longer production runs. Another was to
manufacturers all over the world to get achieve better cheese and whey quality,
the most out of their plant. Our solution with high accuracy in terms of moisture
for semi-hard cheese – the Tetra Tebel content, weight and form. The result is
Casomatic SC 7 module – is in line with a solution that enables our customers
this vision. Originally developed in the to deliver quality with efficiency
mid-1970s, Tetra Tebel Casomatic has – a truly sustainable business
been setting the standard in industrial proposition.

GLOBAL LAUNCH
OF TETRA BRIK EDGE
On 29 June 2009, we announced the global launch of Tetra Brik Edge,
the packaging solution for chilled liquid dairy products designed for
consumers of all ages. The Tetra Brik Edge package is easy to use
– whether you are young or old – so much so that it is endorsed by the
Swedish Rheumatism Association, which also chose it as their ‘Package
of the Year’. The 34 mm diameter SimplyTwist screw cap is designed
to be easy to open, pour and reseal for everyone. As well as adding
to the package’s visual appeal, the sloping top panel provides
optimal pouring and its angulation makes it extremely easy for
the hand to grasp the cap. Tetra Brik Edge is an excellent vehicle
for branding. The sloping top also provides extra space for
additional messages.

TETRA PAK 2009/2010 IN BRIEF 35

Tetra Laval_ALLA_2009_2010.indd 35 2010-05-04 11.26


2009/2010 IN BRIEF

NEW
SCHOOL MILK
PROGRAMMES
On 30 September 2009, World School Milk Day, we
announced our support of two additional school milk
programmes – in Ecuador and Morocco – as well as the
expansion of existing programmes in Romania, Thailand,
Mexico and Iran. Through the Food for Development
Office (FfDO) we work in close partnership with govern-
ments, development agencies, NGOs, local dairies and
farmers to deliver almost six billion packages of milk to
45 million children in schools in over 50 countries around
the world. School feeding programmes can have a con-
siderable impact on the local community and economy.
Not only do they improve the health and learning capabilities
of children, they often act as a catalyst for agricultural and
economic development.

INAUGURATION OF HOHHOT PLANT IN CHINA


On 8 July 2009, we inaugurated our packaging material plant in Hohhot, North-
ern China, which operates completely on power from renewable resources – of-
ten referred to as “green electricity”. The new plant in Hohhot is one of our
most advanced manufacturing facilities for aseptic carton packages worldwide.
It marks a significant milestone in our increasing presence in China with a total
capacity of approximately 50 billion packs a year in the four Chinese plants. The
Hohhot facility is the first manufacturing plant in Inner Mongolia, and among the
first in China, to exclusively use green electricity. The plant consumes an esti-
mated 20 million kWh of green power annually, which corresponds to an esti-
mated saving of 16,000 tonnes of CO2 a year. The green electricity supplied to
Tetra Pak comes primarily from wind power.

36 TETRA PAK 2009/2010 IN BRIEF

Tetra Laval_ALLA_2009_2010.indd 36 2010-05-04 11.26


LAUNCH OF The world’s first hermetic direct
driven dairy separator –
TETRA CENTRI AIRTIGHT ECO Tetra Centri AirTight Eco – cuts
energy consumption up to 35
per cent compared to conven-
tional paring disc separators.
This new generation separator CLIMATE AWARD
is a further development in our Tetra Pak received the 2010 Klimatpris (Climate
proven range of separators us- Award) from the Swedish Forest Industry
ing a number of breakthrough Federation. The award was delivered by
innovations to deliver higher H.R.H. Prince Carl Philip, to Finn Rausing at
operational efficiency and a ceremony in Stockholm on April 20, 2010.
lower environmental impact
than ever before. A summary of the reason behind the award
reads as follows:
“It is well-known that packages from Tetra Pak
have revolutionised the distribution of food
around the globe. It is not as well-known that
Tetra Pak’s innovations create packages with
lower environmental and climate impact
compared to packages made from other
materials. Tetra Pak also takes a responsibility
for the forests the raw material originates from.
Few organisations in the world have the
same drive and reach to be able to have
an impact to support the work for a better
environment and reduced climate impact.”

NEW GENERATION OF
TETRA THERM ASEPTIC DRINK
COMBINES ECONOMY WITH ECOLOGY
The next generation of Tetra Therm Aseptic drinks and enhanced water, including production stops. The new pasteurizer is
Drink pasteurizers enables beverage pro- new “wellness” drinks with high value- also compatible with the Tetra PlantMaster
ducers to cut water consumption by up added sensitive ingredients – include a control system, which enables additional
to 80 per cent, energy by up to 30 per range of other advanced automation intelligence applications such as full
cent and product losses also by up to 30 features. For example, they automatically traceability, unit history, batch control
per cent, compared to other solutions on identify deviations in process parame- and review of all previous actions. These
the market. This gives higher operational ters, enabling immediate operator action are important aspects that cut the risk of
efficiency while lowering environmental to maintain optimised operation. And human error, contribute to food safety
impact. they provide automatic notification of and enable exceptional performance.
The new pasteurizers – which are suita- every maintenance requirement – help-
ble for juices and nectars, still drinks, tea ing all but eliminate costly, unplanned

TETRA PAK 2009/2010 IN BRIEF 37

Tetra Laval_ALLA_2009_2010.indd 37 2010-05-04 11.26


DELIVERING EVERYDAY EXCELLENCE

PRODUCTS
One step to success
The main consumer benefits of the new Tetra Top package that stands out on the shelf, having all the marketing
with One Step Opening can be summarised and production benefits of the Tetra Top range. In Mexico,
in three words; convenience, convenience and leading dairy producer Alpura has converted its production
convenience. It is quick to open and easy to from traditional gable top packages into Tetra Top with the
reseal, making it the perfect packaging choice new One Step Opening.
for on-the-go products and for home con- “Personally, I am in love with the package. The new
sumption of chilled dairy and juice products. brand image really stands out at the points of
The One Step Opening provides superior sale. I am totally sure we have made the
functionality as it is easy to pour and drink from right decision to fully replace our gable
and has a tamper ring that shows if the package top system with the new Tetra Top One
has been opened. The seal is tight also when Step Opening system, because we
the package is stored flat, an important attri- are offering the best quality milk in
bute for products such as cream where only a the best modern convenience
part of the contents is used at a time. package at the same price”, says
From a customer perspective, the sturdy Felipe Rios Castelazo, Market-
package reduces distribution costs. The inter- ing Director at Alpura, point-
nal capping unit in the filling equipment re- ing out a 23 per cent sales
quires less floor space and cuts the cost of increase in the first six
conversion. But the main benefit is of course a months after the launch.

New unit for The well-known Tetra Therm Aseptic Visco


range for continuous UHT food processing
has a new member. The addition of a high-

high-viscosity foods pressure unit enables continuous, efficient,


high-capacity UHT treatment even for
high-viscosity soups and sauces, tomato
pastes, custard desserts, fruit preparations,
vegetable purees and baby food products.
A good example of our Tetra Victenso
production solutions for prepared food,
the new Tetra Therm Aseptic Visco unit
reduces product losses by up to 50 per cent
compared to conventional equipment.

38 TETRA PAK PRODUCTS

Tetra Laval_ALLA_2009_2010.indd 38 2010-05-04 11.27


Quality upgrades as part
of growth strategy

By updating and expanding


anding the
ding dairy D.P.O. iin
installed capacity, leading n
Thailand can follow itss ambitious growth h sstrategy.
trat
trateg
at egy.
eg y.
Tetra Pak has assisted with equipment and d au
a utoma
to
omati
mation
automationtion
ti n ssolutions.
olut
o
olutio
utions
io
onss.

In 2008, D.P.O., Tetra Pak’s first


first and for this D . .O
.P
D.P.O. O. da d irry.
dairy. y T he
h
The e ccustomer
ussto
u tommer
mer
largest UHT milk customer in n Thailand, needed de quip
qu
quip ipme
ipme
equipment ment
entn w itth hi
with h gh ccapacity
gh
high appac
acitityy
uipment in
decided to upgrade the equipment and flexibbililit
iliitty,
exibility, y, yyet
ett a ccompact
e o pa
om pact
act ssol
olut
olutio
ut io
on.
solution. n
its three main dairies in orderr to fulfil its Working closel
closely e y wi
el w
with itth
hoone ne o
ne off ou
ourr va
valu
lue
lu
value e
ovided an
expansion strategy. This provided business partn
partners nerrs su ssuch
ucchha ass D.
D P..O.
O.,, gi
D.P.O., givi
ving
ving
giving
excellent opportunity for Tetratra Pak to them the opportu
opportunity un niityy ttoo in
inte
te
eraract
interactctt w ih
it
with
offer the customer the Tetra a Pak A3/ the solutions of the he e ffut
utu
ut ure,
ur
future, e iiss off g re
eat
greata
CompactFlex iLine, being the he most importr ance for us”, says
importance y T
ys hiti
hitipo
poll
po
Thitipol
ution avail-
advanced technological solution Artsanchorn, Comme Commercial merrciial Ma M nage
na
Manager gerr
ge
able on the market for portion on packs. at Tetra Pak Thail i and.
Thailand.
motion
D.P.O. (Dairy Farming Promotion
Organisation) is a state owned ed enter- INCREASED LINE LI N AUT
AUTOMATION
UTOM
O ATION N
prise which became the firstt Tetra Pak The main reason behind the chochoice
oicce wass
Thailand customer in 1972. It currently the better value propositionon ffor
or D.P.O
.O
D.P.O.O.
has four UHT factories located ed in dif- of the Tetra Pak A3/Comp pactFle
A3/CompactFlex ex iL
iLi
in
ine
iLine
ferent regions of Thailand which pro- in terms of cost, more advanancced tech-
advanced
duce UHT milk under its iconic nic brand, nology and higher capacity, as well as
“Thai-Danish”. White and flavoured
UHT milk have been D.P.O.’ss growth
low energy and utility consumption of
the equipment.
Tetra Alfast
ness 37
engine since it started business “The increased line automation achieves
years ago. and the better user friendliness of the
equipment have also contributed to spot-on
CONVERSION PROJECT TO
ENSURE EXPANSION
our decision to go for the Tetra Pak
A3/CompactFlex iLine solution, as
precision
In late 2007, much of the equipment in well as the fact that Tetra Pak, as an Tetra Alfast performs automatic direct
use was old and the utilisation capac- integrated supplier, is able to manage in-line standardisation of milk and cream
ity was reaching its limits. D.P.O.’s growth the whole project from layout to installa- with accurate control of fat, protein, solids
strategy demanded an upgrade and tion and start-up”, says Mr. Suwarat non-fat and total solids. It is designed for
expansion of the installed capacity at Hongyantarachai, Assistant Director efficient, flexible processing of formu-
three of its UHT milk plants: at Muaklek, of Factory Operations at D.P.O. lated dairy products and cheese milk.
Pranburi and Khonkaen. In parallel with the deployment of Combined with the new SpotOn software
The project led, among other things, the Tetra Pak A3/CompactFlex iLine, for instant in-line ingredient compensa-
to the deployment at D.P.O. of a D.P.O. also replaced outdated equip- tion, Tetra Alfast offers unparalleled
Tetra Pak A3/CompactFlex iLine for ment with three Tetra Pak A3/Flex filling repeatability and precision to give uniform
Tetra Brik Aseptic 200 B and Tetra Brik machines at the Khonkaen plant. Thereby product quality and improved produc-
Aseptic 250 B packages in August 2009. increasing capacity by 27 per cent and tion economy over the long term.
“The Tetra Pak A3/CompactFlex iLine saving 28 per cent with reduced opera-
turned out to be the perfect product tional costs.

TETRA PAK PRODUCTS 39

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DELIVERING EVERYDAY EXCELLENCE

PRODUCTS
Hygiene is the
foundation of
food safety
Consumers all over the world are increasingly concerned about health and
food safety. Food alarms have made people pay more attention to what they
eat and drink, where it comes from and how it is produced. Every threat to
consumer health is a threat to the food processing business. How does Tetra Pak
meet this challenge?

LEVERAGING THE BENEFITS


Managing food safety issues comes
down to knowledge about food tech-
nology and about food processing.
To secure Tetra Pak’s food safety focus,
a core team with three clear areas of
responsibility has been set up:
• to monitor new regulatory require-
ments related to food safety
• to identify issues of significance to
Tetra Pak’s customers
• to inform about and coordinate
food safety activities
To make it easier for our engineers to
comply with increasingly stringent
“Food safety means being in control approved material. It also means standards, Tetra Pak participates in
at all times, so it is an integrated part assuring that service media (e.g. water, international standardisation work. We
of our production concepts and the steam and air) supplies are designed have developed the Tetra Pak Corpo-
way we think about food processing with proper hygienic zoning barriers, and rate Standard, a tool to coordinate
and packaging. Ultimately, it is about that the automation level enables track- and implement international hygiene
making it possible for our customers ing throughout the production process. standards.
to be in total control of their produc- Tetra Pak employs hygienic risk “Continuous development projects
tion”, says Stefan Åkesson, Manager, assessment of machines and process give us both deeper and broader know-
Food Safety & Equipment Safety at lines during the development and ledge about food safety issues, ranging
Tetra Pak Processing Systems. engineering phases. This method all the way from food processing,
Food safety begins on the drawing analyses and evaluates hazards in order through filling and packaging. This is
board, and the foundation is hygiene. to be able to reduce or eliminate unrivalled in the food industry. We offer
This means assuring that everything hygienic risks, such as microbiological our customers unequalled knowledge,
that will ever come in contact with causes, chemical causes and foreign our experience and our solutions,
food – from components right down materials from machinery or other which enables them to protect their
to connections, welds etc. – is of sources. business”, concludes Stefan Åkesson.

40 TETRA PAK PRODUCTS

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DELIVERING EVERYDAY EXCELLENCE

PARTNERSHIP
Better claims handling
increases customer
satisfaction
Tetra Pak Germany has made substantial cuts in
the time needed for handling customer claims.
The method will now be rolled out globally, to
increase customer satisfaction.

Tetra Pak Germany has made substantial and that is where we are today”, says replace it without calling Germany.
cuts in the time needed for handling Rodolfo Simon, Issue Resolution This initiative follows the same example.
customer claims. The method will now Director at Tetra Pak. The decisions must be made quickly
be rolled out globally, to increase Although a rather small initiative, and close to the customer. We can
customer satisfaction. this claims project shows Tetra Paks then discuss internally who is respon-
Every customer expects a swift comittment to turn every stone to find sible”, says Rodolfo Simon.
handling of a claim, whether it is a more customer friendly processes and But handling the claim is one thing
broken car engine or a bad apple. solutions. The initiative will now be – finding the source of the problem is
The food packaging industry is no rolled out globally, and each market the real issue. Cross functional teams
exception. Although technically will have the necessary competence at cluster level will make weekly reviews
advanced and con- of the claims, to find patterns
tinously maintenanced, and identify possible
almost any packaging ”The customers are not interested in issues.
line will sooner or “We also have a
later have a technical our internal structure. They want a swift large number of
issue leading to the trained system spe-
customer posting a
and decisive handling of their claims and cialists who report
claim. that is where we are today.” issues back to the
At Tetra Pak in Germany, central functions. In that
a new way of handling these way we make sure problems are
claims have cut lead times for settle- to judge the problems and come identified. In the short run, we have to
ments substantially. By moving the back to the customer with compensa- settle the claim. But more importantly,
internal decision making to the front tion within days. By routinely accepting we have to identify the issue and solve
end, Tetra Pak has become more agile claims below € 5,000, more than 95 it right away”, says Rodolfo Simon.
and customer oriented. per cent of the claims can be settled
“Before, we spent unneccessary instantly. This has taken a massive
time evaluating what part of Tetra Pak workload off the organisation, but
was responsible for the claim. But the more importantly increased customer
customers are not interested in our satisfaction.
internal structure. They want a swift “If you have a BMW and the wiper
and decisive handling of their claims breaks you expect the local dealer to

TETRA PAK PARTNERSHIP 41

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DELIVERING EVERYDAY EXCELLENCE

PARTNERSHIP
Smooth start-up in Turkey
When Aslanoba Foods decided to jump into the tough Turkish JNSD market, the Start-up Solution from
Tetra Pak proved a valuable tool for a smooth start to operations.

Well-known for its Erikli brand of mineral portant role, operators were trained the process from raw material to the
water, Aslanoba Foods has been a key and certified by Tetra Pak instructors finished package.
player on the Turkish bottled water to make sure they knew how to operate Starting an operation from scratch,
market since the mid-sixties. With fruit the machines in the safest and most Aslanoba Foods wanted to make sure
juice consumption levels increasing efficient way. they had a smart way of handling their
rapidly in the country, the company’s With a brand promise of premium, parts inventory as well. Therefore
owner, Hasan Aslanoba, decided to healthy and natural options for con- Parts Control Basic was implemented,
enter the JNSD market with their own sumers, product quality was a top which included installation of a web-
brand of juices and nectars. priority for Aslanoba Foods. Tetra Pak based parts inventory management
He chose to work with Tetra Pak in Quality Assurance Management spe- system and recommendations on
order to secure the success of the cialists therefore reviewed the entire spare parts min / max levels for the
new venture. Besides choosing the customer operation and recommended customer’s equipment.
Tetra Gemina Aseptic 1000 Square the appropriate quality routines and With Performance Analysis as the
package as his main differentiator, he procedures based on Tetra Pak best last component, Aslanoba Foods was
also wanted to create an exemplary practices. able to establish Key Performance
green field project which would deliver “Ensuring excellent product quality Indicators for their plant performance
a production base with competitive right from the start is paramount. With that would be monitored and analysed
operational cost levels and top quality. Start-up Quality as part of Tetra Pak’s continuously. Measuring performance
Start-up Solution, we got guidance on a regular basis would enable the
QUALITY AS A TOP PRIORITY from the specialists right from the start”, customer to get a good understanding
The Key Account team in Tetra Pak says Aydin Kontik, Technical Director of the operation and the optimisation
Turkey decided to offer a tailored of Aslanoba Foods. action required.
Start-up Solution to the customer as
the best way to address customer GOOD UNDERSTANDING OF POSITIVE CONSUMER RESPONSE
needs. The first thing to ensure was OPERATIONS All the endeavours in the quality area
that the factory staff had the compe- Aslanoba Foods also made use of paid off – Aslanoba Foods delivered
tence required to operate and main- another Tetra Pak service product – on its promise of premium quality
tain the equipment. Given their im- Quality Performance Analysis. Using products which was validated by the
this, a customer gets a clear picture of very positive consumer response.
where they stand in terms of product “We invested in a big factory,
quality and the improvements needed to set up processes, train
needed. Last but not least, Quality staff, it was a huge task, this being a
Assurance Training was conducted new area of business for our group.
which covered the quality of the However, with the Start-up Solution
packed product through all phases of we had an exceptional market entry –
good quality levels, smoothly running
operations and competent and moti-
vated staff to make all that possible”,
says Hasan Aslanoba.
With premium quality products
packed in a modern and functional
package, and backed up by a reliable
operation, Aslanoba Foods has every
right to be optimistic about the future.

42 TETRA PAK PARTNERSHIP

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Quality
a burning
issue in China
The Chinese market is becoming one of the most technically advanced in the world. Customers
expect high-end solutions with a focus on quality after the melamine scandal in 2008.

Tetra Pak essentially created the asep- A trend as the Chinese market matures the industry recognises the importance
tic packaging market in the world’s is that customers – most of whom are of working with a reputable supplier
most populous country with the sale local – are becoming more sophisti- that is conscious of quality and safety
of its first filling line to China in 1979. cated and more demanding. – like Tetra Pak”, says Hudson Lee.
Thirty years on, Tetra Pak China has “We have to raise our standards and The company employs nearly 1,600
managed to keep its leading position our performance because the compe- people at nine locations around the
in the face of ever-growing competition. tition is doing so. When you are in the country and has an installed base of
position we have been in for a long time, over 1,250 filling machines. Every cus-
we look at things in a different way. tomer relationship includes questions
What the customer is telling us is that on quality and sustainability.
we have to look at it from their angle
as well”, says Hudson Lees, Managing
Director of Tetra Pak China.
Quality is the main concern in the
country after the scandal in 2008, where
milk tainted with melamine caused a
major health scare as a result of a num-
ber of infant fatalities and hospitalised
many more. The scandal dealt a massive
blow to Chinese consumers’ trust in
milk and other dairy products. DID YOU KNOW…?
“The positive side, if there is one, is The name Tetra Pak is translated into two Chinese
characters as “li le”. Literally, “li” can mean
that the events educated the consumer benefit, interest, wellness or profit, while “le”
and the government on the importance means “happiness”. At the same time, the
of food safety. It sped up the regula- combination of the two words has another
tion of the supply chain, from farm to meaning which comes from Buddhism, and it
means: being good to the surrounding people,
production and packaging. And today,
helping them and bringing good to society.

TETRA PAK PARTNERSHIP 43

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DELIVERING EVERYDAY EXCELLENCE

INNOVATION
Integration improves
performance and traceability

By developing common automation software for processing and


packaging, Tetra Pak will alter the way a plant is run. It is like having
a single remote control at home.

The development programme for in- industry is speeding up the need to making. They will only need a single
tegrating packaging solutions into the reduce costs”, says Anders Andrén, control room where all processing and
well-known automation platform, Product Manager. packaging activities can be managed
Tetra PlantMaster, is Tetra Pak’s solu- The development programme was and monitored. It is like having a single
tion for meeting the increasing need launched in the second half of 2008 remote control for your TV, DVD
from customers for integrated pro- and the first prototype will be available recorder and stereo at home”, says
cessing and packaging solutions. by the end of 2010. Programme Manager Jarmo Vastapuu,
Tetra PlantMaster is an automation “We have often sold and delivered who is managing the development
platform based on international stan- modules and lines from Processing of the integrated platform.
dards for production. and Packaging separately. The goal of
“The demands for food safety this programme is to extend our current TO COVER THE ENTIRE PLAN
traceability, production planning and offerings and develop a fully integrated Integration means a number of things,
performance for entire plants drive solution with a common software plat- such as making old and new equip-
the development. In addition, fierce form. Customers will be able to enjoy ment work together, including third-
competition in the food-processing simplified operations and decision- party machinery, in the customer’s

44 TETRA PAK INNOVATION

Tetra Laval_ALLA_2009_2010.indd 44 2010-05-04 11.28


total operations. Integration also traceability and performance analysis date and align the current automation
involves the information flow. to cover the entire plant. Integrated products, Tetra PlantMaster, PLMS
“Integration between processing customer solutions require coopera- (Packaging Line Monitoring System)
and packaging lies not in any particu- tion, and the development programme Centre and WebMon from Technical
lar hardware, but in the way we can is a cross Tetra Pak joint venture be- Service.
enable our customer to run a plant. tween Development & Engineering, “We need to align our various com-
The different features we are looking Processing Systems and Technical petencies while we build capabilities
at in the development programme Service. locally and centrally. There is really
have exactly that scope: How can we some hard work to do to allocate our
make sure that all our business offer- CONSOLIDATES AUTOMATION resources in the right places. There
ings to our customer’s best serve the PRODUCTS might also be boundaries to overcome
total operations of their plants?” asks The result in the years to come will when activities that have lived their
Jarmo Vastapuu. become part of Tetra PlantMaster separate lives for a long time have to
All this becomes a reality, extending branded automation platform. The integrate. Yet the end result in this case
functionalities such as Quality Assurance, development programme will consoli- will surely benefit many customers all
over the world”, says Anders Andrén.

TETRA PAK INNOVATION 45

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DELIVERING EVERYDAY EXCELLENCE

INNOVATION
New process will halve
time and double quality
By cutting lead times and increasing quality performance, Tetra Pak aims to speed up the creation of new
products. The foundation is a totally revamped innovation process, focusing on cross-functionality.

Mike Nelson and his team have an CORE TEAM TAKES CONTROL in the past. This means we all have a
ambitious target. By introducing a new The task is to fully redesign the inno- good grasp of the project and there is
process for the way Tetra Pak develops vation process, by increasing cross- an efficient exchange of ideas in one
its products, the Product Creation Re- functionality and setting common goals forum where all the competencies are
design (PCR) team has set out to double at project start. It sounds obvious, but represented”, says Christina Chester.
the quality performance of new prod- it is in fact more or less a revolution. In the
ucts and solutions, while at the same new process, a core team of specialists SIGNIFICANT CUT IN TIME
time halving the time to market. from every function is assembled. Just to show the complexity and in-
“We are taking action to close the “Previously there was not full align- depth analysis of the new process, it
gap between customer expectations ment on goals, leading to basic delays has taken two years to design the new
on quality and the quality we are de- that were unnecessary. By having supply content and process elements. In 2010,
livering. Our customers also compare chain, sales, marketing and technical the project reaches its tipping point
our lead times with those of other service involved from day one we are where 50 per cent of the innovation
industries and do not understand why able to put all their requirements on the projects will run according to PCR.
it should take so long to develop a table and come up with the best pos- Pilot studies show that the time to
new packaging solution”, says Mike sible solution for our customers which market can be cut significantly.
Nelson, Director for Product Creation. has more value than what our competi- ”We now have the process to de-
tors have to offer”, says Mike Nelson. liver innovation to our customers in
Product Platform Manager Christina much less time than before. Now is
Chester, who is involved in two PCR pilot the time to focus and gain experience
projects, confirms there are apparent in managing project delivery in world
benefits. class times without compromising
“The core team has taken over what quality – and for this we all have a part
was one single project manager’s role to play”, says Mike Nelson.

Tetra Gemina wins Excellence Award


Every year, Tetra Pak internally awards a number of individuals and teams that have
made an outstanding contribution. In 2009, the Innovation Excellence Awards was given
to the team behind the new Tetra Gemina Aseptic package. The citation reads: ”This
innovation is built on our strategic intent of cost driven innovation. It has primarily
enhanced an existing technology into a clever application. The market acceptance is
already proven and it has good commercial value. We are now building a package
family that fits our strategy of differentiation at an affordable cost. The Tetra Gemina
Aseptic package is the world’s first roll-fed gable top package with full aseptic performance
for juice and milk. It combines the convenience, safety and nutritional benefits of
aseptic packaging with exceptional functionality and a great image of freshness.”

46 TETRA PAK INNOVATION

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DELIVERING EVERYDAY EXCELLENCE

SUSTAINABILITY
Long-term approach
to the environment
The recession in 2008 and 2009 surprised many experts by not following the usual develop-
ment of a financial downturn. Also on the environmental side, the crisis showed new features.

Usually, a recession means instant cuts recycling. And on the customer support
in sustainability investments, in favour side, Tetra Pak provides services to
of hard economic decisions. This time, customers in order to reduce waste,
however, environmental spending and energy and water consumption, food
interest continued. One reason is that loss etc. All in all, the environment is
many governments used investments in present in every corner of the company
sustainable projects as a means to meet and contributes to the overall compe-
the increasing unemployment. But the tiveness.
environment is also becoming an evi- “We take a broad and long-term
dent part of the everyday business life. approach to the environment, where
“The environment is an integrated we focus on doing things right. By taking
part of Tetra Pak’s business proposition a lifecycle view and make decisions
and that is something we have in that are sustainable; for business and
common with many other global com- for the environment. It’s about driving
panies in other industries. The last two environmental performance in the right
years, we have seen a rapid increase direction, persistently. Also, we in-
in customer demands for life cycle creasingly have to work with a 10 year ”We have to work with a 10 –15 year
analyses and various retailer balanced perspective to be sure that the decisions
perspective to be sure that the decisions
scorecard metrics putting requirements we make today are aligned with how the
on our package and processing offer- world will work in a decade”, says we make today are aligned with how the
ings. Today, we work closely with our Claes Du Rietz. world will work in a decade.”
customers to meet these increasing 2010 marks the end of Tetra Pak’s
demands and expectations”, says Claes ambitious global climate target, where For the last years, Tetra Pak has utilised
Du Rietz, Vice President Environment. CO2 emissions will be cut by 10 per cent insights and experiences from all over
from 2005 to 2010 in absolute terms the world to more effectively assist
A THREE LEG APPROACH as the business continues to grow. customers in reducing their environ-
He describes Tetra Pak’s environmental Tetra Pak is confident that the target mental footprint. These projects are
commitment as a three leg approach. will be reached in 2010, mainly thanks often about reducing the consumption
On the operations side, Tetra Pak works to energy efficiency measures in the of water, electricity and chemicals, but
hard to cut emissions, use renewable converting plants and by investments can also involve waste management or
energy resources and launch initiatives in green energy. processing elements. This is a service
to reduce the environmental footprint area that will grow rapidly in size and
of the own offices and factories. On the WATER IN FOCUS importance over the coming years.
product side, the focus lies on continue So, if climate change was the big question “Our founder Ruben Rausing stated
improving the environmental perfor- of the 00’s, what will be the main issue that a package should save more than it
mance, renewable raw materials and in the new decade? Claes Du Rietz replies costs. We see this not only in monetary
instantly: “Water, more specifically the terms, but also from the environmental
access to water. This will be of main perspective. If we can work closely with
concern especially in many important our customers to help improve produc-
growing markets and Tetra Pak’s con- tion performance, this will be beneficial
tribution will be to be able to supply in terms of cost, quality and environ-
processing and packaging solutions ment”, says Claes Du Rietz.
that take a sustainable approach to
water consumption.”
TETRA PAK SUSTAINABILITY 47

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DELIVERING EVERYDAY EXCELLENCE

SUSTAINABILITY
Large increase
in FSC-certified
packages
Tetra Pak’s ultimate goal for its paperboard supply is that “FSC is the gold standard of forest certification, the best
all the wood fibre used in Tetra Pak packaging should come there is. By following FSC guidelines we can make sure that
from responsibly managed forests certified to the highest the paperboard in our packages meets the high sustaina-
standard, FSC™. Following a humble start in selected markets, bility standards that we and our customers expect. We know
more than 2 billion FSC-certified and labelled Tetra Pak a sustainable approach to business is of critical value to
packages reached the market in 2009 and a significant retailers, brand owners and consumers, and FSC certification
growth is estimated in 2010. is an accreditation of the consistent work we’ve undertaken
The Forest Stewardship Council (FSC) is an international to secure responsible sourcing and demonstrates our commit-
organisation that brings stakeholders together to find ment to manufacturing to the highest level of environmental
solutions which promote responsible stewardship of the performance”, says Claes Du Rietz, Vice President Environment.
world’s forests. The FSC system independently guarantees
a chain of custody from forest to store, by securing the
traceability all the way from raw material source to a filled
package. The FSC certification enables Tetra Pak to use the
FSC label on its packages and is a guarantee that all wood
fibre used to produce the paperboard comes from FSC-
certified well-managed forests and other controlled sources.

Tetra Pak supports


green plastic
In November 2009, Tetra Pak reached an agreement with the largest
Brazilian petrochemical company, Braskem SA, to purchase limited
volumes of high-density polyethylene (HDPE) derived entirely from
a renewable feedstock. The agreement represents the first move
towards using green polyethylene in the carton packaging industry.
Braskem expects the world’s first commercial-scale green polyethylene
plant, located in the south of Brazil, to come on stream late 2010 and
is targeting first deliveries to Tetra Pak early in 2011. The new facility
will use ethanol derived from sugar cane to produce ethylene, which
will then be converted into polyethylene, the world’s most commonly
used plastic. It is estimated that the process will result in an overall
reduction in greenhouse gas emissions when compared with the
traditional process for manufacturing polyethylene.

48 TETRA PAK SUSTAINABILITY

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Corporate presentation
2009/2010

Tetra Laval_ALLA_2009_2010.indd 49 2010-05-04 11.28


Sidel in two minutes

Net sales in mio Euro Employees Countries covered R&D units Service units Number of plants

990 5,151 >190 8 31 25

Vision
We are committed to being the most
innovative, responsive and reliable Our brand
partner, providing sustainable solutions The Sidel brand stands for proximity and innovation. Sidel delegates
for the beverage industry. decision-making and business responsibilities close to customers,
localises experts and competencies, and develops tailor-made solutions.

Industrial subsidiaries
Sales & Services offices

Market presence
Sidel has installed more than 30,000 machines in 190 countries: from China
to Brazil, taking in the United States, Germany, Japan and Russia on the
way. Sidel is making its mark today as a multicultural group, employing
around sixty different nationalities, totalling some 5,000 employees.
50 _ Sidel in two minutes

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Products
With more than 30,000 machines from preliminary design to develop-
installed in 190 countries, the Sidel ing an investment budget, drafting
Group is one of the world leaders in plans for line layout or building the
solutions for packaging liquid foods bottling line on-site. The equipment
including water, carbonated soft offer encompasses blow moulding
drinks, milk, sensitive beverages, machines, barrier treatment, Combi
edible oil, beer and other alcoholic equipment, fillers, conveyors, label-
beverages, in three main types of lers, pasteurisers, palletiser / depal-
container: glass bottles, plastic bottles letiser, robotic equipment and end-
and drink cans. Sidel can support of-line operations.
complete line engineering needs,

Core values
TEAMWORK
When we pool our individual, com-
plementary abilities we accomplish
extraordinary things.
R&D
Sidel is a pioneer in beverage pack-
DISCIPLINE aging solutions, especially for PET
bottles. Some innovations are: the
Once decisions are made, we exe- Combi system, facilitating bottle
cute them with dedication and making, filling and capping for PET
respect for our community. bottles; Predis, a revolutionary sus-
CUSTOMER FOCUS
tainable solution to enhance bottle
We create and develop lasting part- hygiene. Sustainability is Sidel’s new
EMPOWERMENT frontier for innovation.
nerships with customers, actively lis-
tening to them, understanding and Each employee is personally account-
anticipating their needs. We deliver able, has the authority and resources
the best innovative solutions and to fulfil his/her mission.
services, with unrivalled quality and
lead times, worldwide.
INTEGRITY Environment and CSR
LEADERSHIP Integrity forms the foundation for all The world leader in stretch blow moulding for PET bottles, Sidel’s
of our other values. Commitment to concern for the environment is not a recent development. We have
As a company, we lead our industry. the highest ethical standards is es- an established track record of source reduction initiatives and have
As employees, we lead by example. sential for personal and collective been particularly instrumental in PET bottle lightweighting. Our in-
progress. dustry-leading knowledge of PET, package design and equipment
expertise enables customers to achieve optimal package and line
performance vis à vis package weight, with many able to achieve as
much as 20–30 per cent gram weight reduction. Sidel has proposed a
number of equipment innovations aimed at reducing the consumption
Customers of energy and other resources. In addition, we have led research in
the field of packaging material possibilities, from the use of recy-
Our customers come from all cled materials to testing materials made from renewable resources.
parts of the beverage industry;
from beer and alcoholic beverages
to soft drinks, juice and mineral ANYTIME – AFTER-SALES
water. In addition, we offer solu- SERVICE
tions for other liquid food catego-
Sidel delivers after sales service 24/7.
ries, such as edible oil and dairy
A fantastic support to leverage pro-
products.
ductivity based on the daily man-
agement of a globally installed base
and a history of all past actions.

Sidel in two minutes _ 51

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DELIVERING EVERYDAY EXCELLENCE

PEOPLE
WCLE implementation leads
to substantial improvements
In 2008, Andrea Forzenigo joined In short, WCLE is about assessing was seen in the lead time, the accu- tivity, inventory reductions, and quality
Sidel as the new Vice President Prod- the real value of the time spent on a racy of the delivery, the assembly improvements. One finding was that
uct Supply. His task: to lead the im- certain stage or process. The ques- cost and the inventory. a lot of waste was generated by com-
plementation of World Class Lean tion to ask is: what is the part of the “In fact, we were able to cut the municating wrong or incomplete in-
Enterprise (WCLE) in all the Sidel fac- time that the customer would not lead time from 24 weeks to 12. We formation between different entities.
tories around the world. WCLE is want to pay for, or rather: what is the have also gained a 94 per cent ability Forcing the different departments to
used by many leading multinationals part of the time spent that does not to ship the machine on time, with all focus on the same targets clearly
as a tool to deliver best quality prod- add any value. parts. The WCLE implementation forced the employee to think about
ucts with short lead times, using the met a lot of scepticism at the begin- the customer, rather than ‘intra de-
company’s assets in the best possi- ning, but today it is evident for every- partment tasks’”, says Frédéric Sailly.
ble way. It takes into consideration all
RADICAL IMPROVEMENTS
one that it is a tremendous success”,
steps in the process from suppliers of The improvements made are stun- says Andrea Forzenigo.
raw material to the start-up at the end One of the other internal advo-
SUBSTANTIAL COST SAVINGS
ning, with lead times being cut by up
customer. At Sidel, WCLE has quickly to 50 per cent and operational inven- cates of the WCLE implementation is Although there has been increased
become an important tool to guaran- tory at the factories reduced by 40 Frédéric Sailly, Director Product Supply costs for implementing the WCLE
tee continuous improvements. per cent compared to November France, who is responsible for the mindset, the cost savings have already
“What we do is that we look at 2008. For the filler production, WCLE Octeville plant, where the implemen- been substantial in the first year. But
every process and assess how much was implemented on the whole proc- tation started early on in 2008. more importantly, and the sole focus
time that is wasted. It could be time ess, from the customer order to the “The WCLE approach has “forced” for the project, customers now expe-
for waiting, or handling a mistake or Factory Acceptance Test. The project us to dive deeply into all non value rience better quality and shorter lead
something else. WCLE allows us to identified possible improvements added activities, chasing waste at all times.
clearly monitor seven different types of both in terms of solutions design and stages. In that way, we found that “Customers should know that at
waste, which we then use as a tool to the production process itself. By radi- WCLE not only gave the expected Sidel today, as soon as we identify an
identify the root cause of the waste and cally changing the way the filler is as- lead time reductions, but also generated issue there are people looking into
eliminate it”, says Andrea Forzenigo. sembled, a significant improvement a lot of extra saving, such as produc- every aspect of it to remove the root
cause. The real impact that WCLE
has shown has been driving the inter-
est and ambition among our staff. In
2010 we will also extend the method-
ology to the installation phases up to
customer acceptance. Today we
have also started to see the interest
of customers for joint projects involv-
ing WCLE for instance concerning
quicker changeovers or the overall
management of the lines”, says And-
rea Forzenigo.

52 _ Sidel people

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RCA solves a problem
before it occurs
By looking at the source of the problem instead of the problem itself,
Sidel will increase customer satisfaction and cut unnecessary costs.

Like many other industrial compa- cause of a problem, instead of solving FOCUS ON FACTS AND this provides good insights in both
nies, Sidel has always taken great the problem itself. Otherwise we will FIGURES directions. We have also had the oppor-
pride in swiftly solving any customer never be able to eradicate the prob- tunity to work with colleagues from Tetra
problems that occur. Whether it is lem”, says Stephane Aymonier, Global He says the new approach has lead to Pak who have provided an excellent
giving advice over the phone or jump- Process Owner – Product Evolution. a clear understanding of how certain benchmark”, says Stephane Aymonier.
ing on a plane, the staff at Sidel have Together with other Sidel special- problems occur, both giving leverage A project that might look internal
taken any measure to assist the cus- ists, he has been responsible for im- to the redesign of the present solu- from the outside, the focus for the root
tomer. But what if the problem did not plementing the root cause analysis tions and providing important insights cause analysis is strictly to increase
occur in the first place? Enter the new method within the company. The for developing new platforms. The customer satisfaction. Stephane
Sidel investigation tool, the RCA, root starting point was the message from
cause analysis. Sidel top management that customer
Instead of fixing and patching a problems took too long time to solve “We pride ourselves by
problem, the root cause analysis and that it was unacceptable that
takes a deeper approach where the many of the problems occurred again delivering top quality”
root cause of the problem is identified and again.
and solved. In 2009, Sidel launched “A recurrent problem is of course root cause analysis has also brought Aymonier points out customer satis-
an initiative to further investigate devastating for any customer relation. different Sidel entities together, creat- faction as the driver in any company,
problems within the blowing portfolio, We pride ourselves by delivering top ing a swifter and more fruitful process. and with the root cause analysis he
using the root cause analysis. quality and our customers should ex- “The root cause analysis forces us to says Sidel has got a new tool to reduce
“I realise this sounds basic and pect nothing less. And internally these really work with clear facts and figures. the time spent on problem solving,
simple, but it is still not easy. What we problems mean a real cost issue until we People from the market companies simply by solving the customer prob-
have to do is define a solution for the solve them”, says Stephane Aymonier. get together with the R&D staff and lem before it occurs.

Sidel people _ 53

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2009 IN BRIEF

The totally
revamped sidel.com
Reduce energy consumption
On the occasion of the opening of Drinktec in Munich the new
with ECO Services sidel.com was launched. The site has been revamped to be
more customer-focused, user-friendly and with even more
Sidel has launched its first ECO Services to respond to bottlers’ and bottle direct access to the website’s contents. The completely newly
manufacturers’ economic and environmental concerns. The two new serv- designed website now gives visitors an overview of products
ices, ECO EIT™ and ECO Booster™, help reduce the impact of packaging and services offered by the Sidel Group to meet all require-
materials (lightweighting, use of recycled materials, etc.), decrease water ments not only in the beverage world but also in the food and
and energy consumption as well as waste and emissions. This is done by homecare sectors. Scroll-down menus take visitors straight to
closely monitoring and recording data about bottling lines, blow moulders the images, descriptions and film clips. A new section on com-
etc., enabling the ECO EIT™ and ECO Booster™ experts to develop plans plete lines provides a clear, concise description of Sidel’s long-
and propose corrective actions in order to improve productions. The ECO standing expertise in the field. There is also a section dedicated
Services family will expand over time, as further proof of Sidel’s commit- to services: from Life Cycle Management to Engineering &
ment to combine business competitiveness with environmental protection. Conveying, PET bottle design and the production of moulds.

Sidel joins NAPCOR


In 2009, Sidel joined NAPCOR (National Association for PET Container
Resources), the trade association of the PET plastic industry in the United
States and Canada. The main reason for this is Sidel’s awareness of the
environmental challenges faced by the beverage packaging industry. By
joining NAPCOR, Sidel is now even more actively involved in environ-
mental initiatives concerning the industry. The membership will also help
the Group enhance its dialogue with other companies in the industry.

54 _ Sidel 2009 in brief

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Sidel at Drinktec:

Responsive solutions
for a changing world
In a booth of more than 4,000 m2 the Sidel Group presented
state-of-the-art technologies and services at Drinktec 2009 in
Munich, Germany. At Drinktec, Sidel demonstrated both its
responsiveness and its foresight, being a true partner in responding
to new expectations in a new economy. With the motto “respon-
sive solutions for a changing world” Sidel showed that the com-
pany is able to meet the urgent needs of its customers. This
could be by optimizing the life cycle of the installed base, to re-
engineer a line or to re-invent a package, and by offering new
flexible, sustainable, efficient and cost effective solutions and
equipment. At the exhibition visitors experienced a path through
Sidel’s latest innovations for both equipment and services: 20
pieces of equipment, a tower dedicated to services, a complete
beer line: the most challenging installation ever shown by Sidel at
an exhibition.

Sidel 2009 in brief _ 55

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Wine in PET:
A Sidel vintage
In a close collaboration between the French négociant Paul
Sapin, the plastic cap specialist Novembal (Tetra Pak Group)
and Sidel, two wines were specially bottled in 187 and 750
ml PET bottles for the exhibition Drinktec 2009. This was
done with the purpose to fight the preconceived notion that
wine in PET bottles is poor in quality. At the moment, the
main buyers of PET-bottled wine are airlines and railways,
major retail outlets and the hospitality sector, but by improv-
ing the PET bottles this will open up a whole new market.
Single-layer PET allows a shelf life of up to six months in a
187 ml bottle while multi-layer PET can enable much longer
shelf life – up to 24 months for a 750 ml bottle.

Kohlox™ takes the grease


out of moulds
For blow moulders to work well, regular greasing operations are needed as moving parts
generate friction. However, this kind of operation takes time. To reduce maintenance
time for blow moulders Sidel has created Kohlox™, a new material that is used in
moving parts such as studs and wear rings. This is a self-lubricating material
which does not require any greasing operations for the moulds. By using
Kohlox™, maintenance time is reduced by two minutes per operator
and mould a week, which is a considerate amount of time in pro-
duction. Not having to grease the moulds also helps improve
mould cleanliness by eliminating the possibility of grease
splashes or deposits, which are sources of persistent dirt.

56 _ Sidel 2009 in brief

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Predis™
– the dry alternative
Predis™, Sidel’s patented dry preform decontamination system ini-
tially used for beverages distributed in the cold chain, can now also
be used for products sold at ambient temperature. Combi PredisTM
FMa is Sidel’s innovative, simple system for blowing bottles and fill-
ing sensitive products in aseptic conditions. The key feature setting
the system apart from other equipment of the same type is its “dry
preform technology”: bottle rinsing is replaced with dry preform
sterilization at the oven entrance. Predis™ ensures superior hygiene
for sensitive beverages while offering unrivaled cost-effectiveness
along with product and environmental benefits since no water is
used and fewer chemical agents are needed. PredisTM has already
been selected by a number of beverage producers in Europe, Asia
and North America.

New Engineering &


Conveying Business Unit
Since the start of the global economic crisis, Sidel’s customers have been
focused on the optimisation of existing bottling lines, rather than investments in
new production capacity. Therefore the company has created a new Engineering &
Conveying business unit which gathers all the skills within line audits, flow
studies, layout design, auxiliary processes, piping, worksite coordination,
all types of conveying and accumulation systems. By doing so,
Sidel guarantees that the skills are put in even better use
for refurbishments, transfers or other line adaptations.
The unit works under the leadership of former
Gebo President Marc Aury and is already
operating worldwide, with more than 800
highly qualified staff based in North and
South America, Europe and Asia.

Sidel 2009 in brief _ 57

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DELIVERING EVERYDAY EXCELLENCE

PRODUCTS

More eco-friendly
PET packaging for milk
A world’s first: the French dairy company LSDH is launching a lightweight PET
bottle, without a sealing lid, for UHT milk, thanks to the Predis™ technology.

58 _ Sidel Products

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LAITERIE DE SAINT-DENIS-DE-L’HÔTEL (LSDH )
/ JUS DE FRUITS D’ALSACE (JFA)

Headquarters: Saint-Denis-de-l’Hôtel (Loiret, France)


Production sites: 3
Employees: 650
Sales in 2008: € 320 M (juice: 60% ; milk: 25% ; other: 15%)
Production in 2008 : 620 million packages (75% in Tetra Brik, 20% in PET,
5% in glass)
Sidel complete line: preform infeed, Combi Predis™ FMa, shrink wrapper,
conveyors, EIT™ system (Efficiency Improvement Tool).

“A global revolution.” Emmanuel Vas- resulting in LSDH packages receiving per cent, and we no longer have the
seneix does not mince words. The both a Packaging Oscar and a Gré thermal constraints associated with
young CEO of Laiterie de Saint- d’Or in the Innovation category. bottle decontamination.” He adds: “fast
Denis-de-l’Hôtel (LSDH ) based in the With the milk market remaining output rates, innovative technologies
Loiret countryside, approximately stable at 3.5 billion litres consumed and Sidel’s recognized expertise in
100 miles south of Paris, is talking per year in France, differentiation is all bottles all had a role in our choice.”
about the 1-litre UHT milk bottle important. To increase its production
made from PET, with its slogans em- capacity and thus meet its custom-
blazoned on the label: “Ecological. ers’ expectations, LSDH decided to
WEIGHT REDUCTION NEXT
STEP
Practical. No sealing lid.” take another technological leap for-
Emmanuel Vasseneix lists the ar- ward: the acquisition of a Sidel line The system’s flexibility is also appre-
guments in its favour: “at only 28 equipped with a Combi Predis™ FMa. ciated when products have to be
grams, this bottle is lighter than the This was a first for sensitive beverages changed three or four times a week
traditional polyethylene bottle and with neutral pH. on the same line which runs 24 hours
thus more ecological. For the con- a day, six days a week, in order to
sumer, it’s both practical and safe, bottle short runs and promotional
with its completely leak-proof cap,
LIGHTWEIGHT AND ENVIRON-
MENT IN FOCUS products. The new line is up and run-
which replaces the aluminum sealing ning for part-skim, skim and whole
lid. Finally, PET allows us to diversify This new technology was chosen for milk in 1- and 1.5-litre bottles. 5-litre
and personalize bottle shapes.” several reasons, explains Emmanuel bottles are to be added to the line in
Since the summer of 2009, this Vasseneix. “First of all, there was the 2010. Product shelf life is three to
bottle has been produced on a Combi environmental aspect: the dry decon- four months at room temperature.
Predis™ FMa, at a rate of 24,000 tamination system consumes very lit- As a next step, LSDH is looking to
PET bottles per hour. tle disinfectant, and it reduces water lighten its PET milk bottle even more,
consumption to next to nothing.” As in collaboration with Sidel, with the
INNOVATE TO DIFFERENTIATE Vasseneix says, “you have to look goal being to get it down to 22
ahead to the company’s future re- grams. LSDH is also targeting high-
“Innovation is the only way to differ- sponsibilities, both to society and to end markets (infant formulas, vitamin-
entiate your company,” insists Em- the environment.” Another important enriched milk, products for seniors,
manuel Vasseneix. “If you are doing feature for LSDH was “the possibility etc.) and clearly announces its ambi-
what everyone else is doing, price will of lighter bottles: we have gone from tion: “to become the national brand
be the only differentiator!”. This mind- 28 to 24 grams thanks to the Pre- for major retail customers.”
set has certainly paid off. During the dis™ system, which sterilizes pre-
years, LSDH has been at the forefront forms instead of bottles. We have
of product and packaging innovation, decreased bottle weight by nearly 20

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Labelling with
maximum flexibility
The SL 90 labeller meets the growing market demand
for both paper labels applied with cold gluing and self-
adhesive transparent labels.
Also suitable for high speeds, this labeller is entirely
driven by servo motors, making it particularly efficient
and flexible. With no gears at all, maintenance and for-
mat changeovers have been greatly simplified. Labels
are centred electronically: a vision system, combined
with bottle platform servo motor drive systems, orien-
tates the bottles to ensure that even the most complex
formats are perfectly positioned.
The SL 90 can also handle very lightweight self-ad-
hesive labels: an air system controls the tension of the
film, reducing mechanical stress. Since the machine
can be cleaned very quickly, savings in energy con-
sumption are optimised. Moreover, overall line noise
levels are low because of the use of servo motors.

Rollsleeve turns
the art of labelling
The Rollsleeve machines are innovative rotary labellers that create
and apply plastic shrink sleeves from a machine direction (MDO)
label onto glass, plastic and metal containers. Traditional sleeves
are applied transversally (TDO), a technique that requires substan-
tially more material.
The special feature of these machines is a shrink sleeve creation
and application by a lengthways reel, with a unique welding system
ensuring that the labels are closed with no need for glues or sol-
vents. The Sidel Rollsleeve is not restricted to only one type of mate-
rial but instead can work many types of materials and thicknesses
due to the bottle moving down into the created sleeve, instead of
the sleeve being pulled down over the bottle.
Compared to traditional TDO labelling, the Rollsleeve leads to a
cost saving of 15-20 per cent. In addition, there are apparent environ-
mental benefits because of the absence of chemicals in the process.

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DELIVERING EVERYDAY EXCELLENCE

PARTNERSHIP
SIX programme cuts
installation times
An initiative to improve the installation process
has led to substantial cuts in lead times and
costs and a lot of praise from customers.

One of the key factors of success for been to cut installation costs and in-
Sidel is a well-managed installation of crease the quality of on-site execution.
complete lines and standalone equip- So far, SIX has turned out a success.
ment. Obviously, a smooth installation “We have cut the average installa-
process that runs according to plan is tion time by 4 weeks, compared to
a solid sign of Sidel’s ability to deliver similar installations in 2008. We now
high quality. With this in mind, Sidel are working to secure additional im-
launched an initiative in 2009 to monitor provements during 2010 by speeding
and optimise the installation process. up the project with a Lean approach
The SIX programme (Sidel Installa- and investing in sustainability.”
tion eXcellence) aims at enhancing The SIX programme has integrated
the speed and quality of the installa- new ways of working into Sidel’s day-
tion of standalone equipment as well to-day activities worldwide. One of
as complete lines. the key elements has been the man-
“This project is about delivering a agement, control and reporting sys-
world class customer experience. We tem which has introduced increased SIDEL INSTALLATION VISION
look at the elements of the installation predictability and systems for antici-
process to see where we have pos- pating risk prior to the installation “We commit to establishing a culture of
sible improvements and try to find the phase. The control intervals are tighter
root cause of any issues. We have also and the competence development
performance across the value chain
launched a comprehensive compe- programme has led to a culture of and developing competencies to deliver
tence development programme among continuous improvements.
our staff to increase knowledge sharing “At the end of the day it all boils
world class installations with predictable
about the installation process”, says down to customer experiences. We results that satisfy our customers and
Stefano Calestani, Global Technical Pool have received a lot of praise from our increase our competitiveness.”
Director at Sidel Group. customers after launching the SIX
He has been responsible for the programme. They see shorter lead
design and implementation of the SIX times, improved overall quality and
programme, which has covered all Sidel better project management”,t , concludes
markets and so far more than 300 Stefano Calestani.
installation projects. The objective has

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Strong partnership
cuts global lead times
Japanese Ferrotec has become a model-like partner in the strategy of sourcing interna-
tionalisation and in the localisation of modules in China to supply Sidel’s plant in Beijing as
well as the European plants.

An important part of Sidel’s strategy mand of the manufacturing and con- tests, treatments and packaging. local supplier in France and Ferrotec
during the last few years has been to trol processes. The contract runs over In order to reduce lead times and in China. In fact, the lead time today
closely monitor and evaluate all sup- five years, covering GUPM’s (large to be price competitive, Ferrotec has is down to zero days, and the stock is
pliers. Cutting lead times, securing mould support units) and front and also implemented Lean Manufactur- under the management of Ferrotec.
the right specifications and initiating rear modules. These are some of the ing with strong support from Sidel Although there are a number of
new price negotiations allow Sidel to most technically complicated sub- Beijing and external consultants. To challenges; in the form of distance,
offer a more competitive product port- assemblies in Sidel’s entire production. continue the progress and to main- cultural differences and highly techni-
folio from many aspects. In addition, tain an unyielding level of quality, cal products; Sidel and Ferrotec have
a close cooperation with suppliers Ferrotec is also using the 6 Sigma tools. shown that it is possible to establish a
results in better product development
FOCUS ON QUALITY
two-way partnership where high
and increased quality performance. Ferrotec has invested in new equip- quality products are shipped from
In China, it was decided to develop
ZERO DAYS LEAD TIME
China to France without hampering
ment and in facilities dedicated to
a strong partnership with a strategic Sidel, such as a manufacturing shop, An overall challenge for Sidel is to se- lead times, quality or costs.
supplier, to support the set-up of the assembly room and measurement cure the proper sourcing of parts and For Sidel, it is of the utmost impor-
Sidel plant in Beijing in 2008. The room. Production started in early 2008, products despite the different entities tance to ensure best quality and lead
choice was Ferrotec, a Japanese with the assistance of Sidel experts of the group being spread across the times and to control the cost of the
company with 4,000-plus employees from China and France. Ferrotec and globe. In the case of Ferrotec, this has technical sub-assemblies. Only then
and two manufacturing sites in China; Sidel have also worked closely to source been solved by a consignment stock can Sidel be the most competitive
Shanghai and Hangzhou. Certified for and qualify each stage of manufac- in Octeville, France. By implementing partner on the market. The partner-
both ISO 9001 and 14001, this sup- turing of the sub-assemblies, includ- a consignment stock, there is no dif- ship with Ferrotec clearly demon-
plier was chosen for its rigorous com- ing raw materials, milling, control, ference in the lead time between a strates this ability.

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Predis develops partnership
between two companies
For leading Japanese pharmaceutical company Otsuka, Predis from Sidel was
a perfect fit. The ground-breaking solution helped Otsuka underscore the
healthy and environmentally friendly profile for the isotonic drink Pocari Sweat.

The beverage market has long been At Otsuka, Predis is used for produc- extremely quality and performance
a focus of Otsuka Pharmaceutical’s tion of the isotonic beverage Pocari oriented. Counting them among our
development programmes. After having Sweat, which is a very popular drink customers is the best reference we
tried out various local or regional sup- among health conscious people all over can get”, says Sebastien Geffrault.
pliers, the company searched for new Japan and in many Asian countries.
partnerships with top-standard world- Today, some of Otsuka’s filling lines
wide groups able to supply them with are equipped with Predis technology,
break-through innovation. In this, the producing bottles in two different
key for success for Sidel was the countries.
ground-breaking Predis solution. In- “Otsuka was the first customer in
stead of cleaning the full-blown bottle, Asia to acquire Predis. That a renowned
preforms are decontaminated. big player chose our technology has
“Our innovation and its high tech- meant great leverage. Otsuka, like
nology content allowed two great many other Japanese companies, is
companies to become partners in a
true win-win relationship. Otsuka is a
company focusing on health and
eco-friendliness and here is where
Predis is a perfect fit”, says Sebastien
Geffrault, Director Account Manage-
ment and Marketing for Sidel Group
in South East Asia Pacific.
By decontaminating the preforms in-
stead of the bottles, customers can
radically cut the use of water and chem-
icals. In addition, it gives the possibil-
ity to reduce the weight of the bottle,
which not only saves costs but also
reduces the environmental footprint.

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DELIVERING EVERYDAY EXCELLENCE

INNOVATION
Sidel blow moulder
shifts into higher gear
2,000 bottles per mould per hour: that is the output rate for the new
SBO Universal2™ blow moulders, now more robust and more reliable.

With more than 5,000 blow moulders components and fewer spare parts. It per hour per mould. To guarantee per- dampers have also been adapted.
in service around the world, including ensures flawless productivity with fectly repetitive, precise and reliable Centralised, automatic lubrication on
800 SBO Universal™ machines, Sidel guaranteed efficiency of 97 per cent movements, the laws of movement the blow wheel ensures good cam
has amply demonstrated its blow and optimised production costs. have been completely reworked: the lifetime and transfer reliability. To im-
moulding know-how. Today, nearly 200 new cam profiles and the new, opti- prove information flow and reduce
machines are operating at more than mised transfer arms help to increase response times of the solenoid valves,
40,000 bottles per hour, attesting to
BOTTLE QUALITY AND
the speed. a new electrical rotary union has been
ENERGY SAVINGS
Sidel’s experience with high speeds. The mechanical transmission has installed, and the automation archi-
Thanks to its large installed base, The new SBO Universal2™ machines been modified to ensure greater reli- tecture has been revised.
Sidel knows how to take its customers’ have the same heating reserve already ability, with a new, more powerful motor The high speeds with the SBO
needs into account to continue im- available for the SBO Universal™ range, and a new gear module. The mould Universal2™ range are adapted to all
proving the performance of the blow with identical oven configuration and base cams and the mould open/close bottle shapes and to lighter packages.
moulders. These improvements apply installed power. New lamps decrease
to blow moulders that are already in energy use by up to 10 per cent. To
service as well as to the latest gener- optimise heating power and quality,
ations of SBO Universal™ machines. the distances between the lamp rack eQuick Change:
and the preforms and between the
reflectors and the preforms can be
Format changeover times
UNMATCHED PERFORMANCE
adjusted as a function of the process. reduced by 50 per cent
Sidel’s technological expertise and its The result is a wide processability
extensive experience will benefit window and impeccable bottle quality. As an optional feature, the SBO Universal™2 can come equipped
companies acquiring the new range At the blow mould station, the bell with the new eQuick Change system patented by Sidel. It provides
of SBO Universal2™ blow moulders, nozzle ensures neck stabilisation to ultra-fast connection of the cooling circuit to the mould neck with
whose output of 2,000 bottles per keep the preform centred and guaran- just one click. In less than five seconds per mould, all of the piping
mould per hour put them among the tee bottle quality. that feeds the neck circuits with water and the electrical cables for
world’s fastest blowers. the temperature probes are connected and disconnected. This
Also available in Combi configura- leads to 50 per cent time savings with respect to the Quick Change
tion, this new range can reach record
RELIABILITY AND ROBUST-
version. Implementation is extremely simple: a single part to handle
NESS TO WITHSTAND ANY
productivity levels without any com- and just four operations to perform without any tools. The eQuick
TEST
promise in terms of robustness or Change system is perfectly adapted to HR moulds (Heat Resist-
production reliability. It decreases un- The reinforcement of the spindle chain ance) and can be adapted to all of Sidel’s latest-generation blow
planned downtime to less than 3 per structure increases its service life and moulders (SBO Universal™, SBO Series2 and SBO Series2+).
cent through the use of more robust enables speeds of up to 2,000 bottles

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Taking beer filling
to a new level
At the Drinktec fair in Munich last The SF 300 LP takes beer filling to a installing the SF 300 LP in a block
year, one of the Sidel stars was the new level in several areas; sustain- with an ultra-clean crowner. The
new SF 300 LP level-probe electronic ability of course, but also hygiene, crown feeding on the exposed filler
beer filler. Equipped with electro- efficiency and flexibility. The design takes place through an Aidlin 24CR,
pneumatic components integrated of the machine structure has reduced specially designed for very high speed
on the filling valve, self-draining sur- the surfaces to a minimum and many (1,350 crown/minute), highly reliable
faces and efficient servo motors, mechanical components have been and featuring increased hygiene and
the SF 300 LP is not only a techni- eliminated, compared to a traditional performance due to the gravity orien-
cally advanced solution, but also a solution. The few surfaces left are tation principle used in the patented
solid answer to the many environ- self-draining and the machine access Aidlin™ waterfall system.
mental requirements from customers has been improved to simplify main- “The technical features of the SF
all over the world. One example of tenance and cleaning operations. 300 LP enable Sidel to compete with
this combined sustainability and An automatic, telescopic crown the most qualified solutions in the
technology thinking is an external chute gives great flexibility by guaran- market and to meet the requests
product tank, allowing for a sub- teeing an intervention-free adapta- from even the most demanding cus-
stantial cut in the consumption of tion to all bottle height formats and tomer”, says Stefano Baini, Filling
water and chemicals and a minimum greater reliability of fine adjustments. Equipment Product Manager at Sidel.
product loss during changeover. Sidel also offers the option of

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“The ECO Booster surely
combines financial with
green benefits”

66 _ Sidel Sustainability

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DELIVERING EVERYDAY EXCELLENCE

SUSTAINABILITY
ECO Booster reduces
energy consumption
The new ECO Booster program from Sidel is aimed at reducing the energy
consumption of blow moulders. But it has more to it than just green issues.

Say ECO Booster and most people creased. Here is where ECO Booster process and preform design optimi- “Owing to our location in a natural
probably think of the environment. comes onto the stage. sation, as well as new tools for moni- heritage site and to the high environ-
But this new solution from Sidel actu- toring and controlling energy con- mental awareness of our manage-
ally has more to it. By thoroughly au- sumption. With all this in place, the ment team and all our staff, we are
diting blow moulding equipment and
AUDIT AND CORRECTIVE
final step of the ECO Booster is to constantly on the lookout for initia-
ACTIONS
proposing improvements, Sidel now validate the actions taken and to tives that can help us decrease our
can give the customer both an envi- The ECO Booster programme is a four show this by putting the Eco stamp environmental footprint. Sidel is one
ronmental and economic boost. step process. It starts with an in- on the equipment. of the first of our suppliers to make
The ECO Booster represents a depth analysis of the installed equip- this investment with us and to pro-
progress based approach that is ment, looking at power consumption, vide us with its expertise in meeting
founded on Sidel’s knowledge of the
SUCCESS IN BELGIUM shared environmental and economic
air pressure, process and package,
installed base, a process database air and water quality, mechanical Belgian Spadel Group was one of the goals. This approach is extremely
that is constantly being enhanced and control and machine environment. In first customers to perform the ECO positive, and we are expecting great
on site evaluation by specially trained a complete line, the blow moulder ac- Booster. The program was carried things from it”, says Joffrey Joassin,
experts. All in all, this gives energy counts for some 70 per cent of the out on five Series2 blow moulders and Technical Development Manager of
savings that guarantee a quick return total energy consumption, making it two Combis installed at Spa Monopole. the Spadel Group.
on investment, as well as a reduction the obvious starting point for process
in the environmental footprint. optimisation.
“Energy savings are not only about The second step of the ECO
the environment. A lower energy con- Booster is a comprehensive report
sumption makes it easier to get en- compiled from a comparison of
ergy commissions or reduced tax in measurements with standard ma-
some markets. So the ECO Booster chine production data that has been
surely combines financial with green acquired from Sidel equipment all
benefits. In fact, one bar of pressure over the world. The report evaluates
gained on the high pressure line the main observations, their impact
represents savings of more than on consumption and the cause of
€ 20,000 per year”, says Luc Desoutter, any problems. Finally, it proposes a
Sustainability Officer at Sidel Group. tailor made solution as a function on
During the global financial down- the desired return on investment,
turn, many companies have gained with evaluation of potential gains.
interest in production optimisation. The next step is the actual correc-
Still, there is insufficient knowledge tive action on the blow moulder, refur-
on what options there are and how bishing and improving the oven and
easily the performance can be in- blow station. This could also include

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Putting green
words into action SF 300 FM filler
At Sidel, the efforts within sustainability A simple machine design giving a high level of hygiene is the
are about more than fine words. Today, most apparent feature of this new filler for carbonated soft
drinks and beer. But the machine also comes with a set of
every new product or solution shows real environmental benefits. The use of torque motors instead
evident environmental benefits. On this of motors with a traditional asynchronous mode has cut the
energy consumption substantially. The internal cleaning
page you will find three examples. circuits have been optimised in order to reduce chemical
wastage; and by finding a new design for the product feeding
system CO2 consumption has been reduced. The end result
is a technically advanced filler for demanding customers;
customers who also have high expectations on environmen-
tal performance.

SR-E rinser SM 900 mixer


This new electronic rinser offers a variable rinsing treatment In a stand alone mixer, about 50 per cent of the CO2 intro-
time in order to minimise water consumption. A special mo- duced is lost during production. In the SM 900 this figure is
bile nozzle combines water and sterile air to maximise the down to 12 per cent. The electronically controlled centrifugal
cleaning performance while at the same time halving water pumps ensure the optimisation of the various production
consumption. Equipped with electro-pneumatic technology, stages, resulting in significant energy savings. A liquid ring
the SR-E rinser enables the operator to check the pressure of vacuum pump means there is no need for the use of water.
individual valves at all times. If any pressure differences are The SM 900 mixer can handle a wide range of products, from
detected by the special sensors, immediate action can be CSD and carbonated water to diet beverages and beer. The
taken during production. Also, the treatment times can be quick format changes guarantee maximum production conti-
optimised according to the format, leading to less water and nuity, and the de-aeration system removes air down to 0.5
chemical waste. ppm, providing greater product stability.

68 _ Sidel Sustainability

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Corporate
presentation
2009/2010

Your solution – every day

Tetra Laval_ALLA_2009_2010.indd 69 2010-05-04 11.31


Corporate presentation 2009/2010

DeLaval in
two minutes

DeLaval facts
tain and guide dairy producers with
complete solutions to adapt to their
Number of employees 4,077
needs. We are committed to the dairy
Net sales 805 million Euros
industry now and in the future. We have
Vision Whenever dairy farmers have a need they should
a proud 125-year heritage of driving
think first of DeLaval
progress in milk production together
Mission We drive progress in milk production
with our business partners.
Solutions DeLaval offers four Capital Goods systems: System Rotary,
System VMS, System Stanchion & Other Animals and System Parlour. People – our people are empowered
DeLaval customers can also choose from a wide range of to assume responsibility
Aftermarket consumables and services which are grouped in four We are proud to be part of a global
Portfolios: Liners & Tubes, Farm Supplies, Services & Original Parts, community and we respect and en-
Milk Quality & Animal Health. courage the diversity and creativity
coming from the mix of cultures, gender,
religions, experiences and personalities.

Our brand nutritious foods. DeLaval helps farm- Professionalism – we are professio-
It is our goal to turn the very well-known ers run their farms their way by pro- nals who earn our customers’ trust
and respected brand that DeLaval is viding their solutions, every day. through commitment and reliability
into a promise to our customers, a Our brand promise is therefore to We are committed and structured in
promise that is relevant to them and empower the dairy farmer with im- order to create profitable business
which they see as a reason to choose proved control over milk production. throughout the value chain.
DeLaval. As dairy farmers, our custom- DeLaval accomplishes this by offer-
ers have one of the toughest and most ing complete, reliable and profitable Partnerships – we believe in partner-
interesting jobs there is. They manage solutions, including close support. ships built on mutual trust and benefit
their farms with an increasing level of Our customers, their needs and
high technology, and larger staff strength Core values expectations are the starting point for
as a result of the consolidation in the everything we do. We are characterised
industry, and of course larger herds. Passion – we share a passion by our close relationships with all
They juggle all the above complexities for dairy farming players in the value chain through
to produce one of the world’s most Our focus is to help to improve, sus- proximity, attitude and support.

70

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Corporate presentation 2009/2010

Environment and CSR production, farm profitability and the Focus on service
Our Corporate Social Responsibility well-being of the people and animals In a competitive market, good customer
(CSR) cornerstones are: involved. DeLaval believes this goal service differentiates one company
can be achieved by providing techno- from another. To strengthen the strong
Food for Development logy and services to increase resource partnerships we have with our custom-
Food for Development is an important efficiency. Or, put another way, by ers, we have created InService™.
part of DeLaval’s corporate social re- supporting dairy farmers to do more It is a new trademark for service
sponsibility. The target is to achieve with less. taking into consideration that every
sustainable social and economic dairy farm is different and every farmer
development by promoting public-private R&I unique, whilst adapting the solutions
partnership in developing countries. Research and innovation has been to their particular requirements
We are committed to helping cus- essential to DeLaval’s steady progress.
tomers, governments and community This is especially emphasised in Quality
based organisations to provide milk to product development, where the team We have a strong and long commit-
children around the world. A public- works in close contact with a world- ment to constantly improve milk quality,
private partnership is the best way to wide network of farmers, academics, hygiene, and animal welfare. We work
fight rural poverty and malnutrition dedicated research facilities, scien- with dairy farmers to protect their in-
through dairy development. All DeLaval tists, sales teams, authorised dealers vestment by supplying highly efficient
activities are long-term business de- and other agricultural experts. system solutions for milking, herd
velopment projects aimed at encour- management, animal traffic control,
aging demand for locally produced Smart Farming feeding, cooling, manure handling,
dairy products and pushing for trans- Smart Farming is a DeLaval initiative ventilation and energy recovery, as
formation of subsistence smallholders aimed at influencing and shaping the well as Biosecurity and Animal Health
into commercially viable farmers. future of dairy farming today. The goal related products.
is to accelerate the transition from
Sustainable Dairy Farming milking management to global farm Markets and customers
Sustainable Dairy Farming is a DeLaval profitability management by harness- DeLaval operates with more than 4,000
initiative to support farmers. The goal ing emerging decision tools and auto- employees in over 100 markets. DeLaval
is to reduce the environmental foot- mation technologies for better quality provides integrated solutions that cover
print of farms, while improving milk milk and profits. not only cow but also sheep, goat and
buffalo dairy farms to over 1,000,000
customers around the globe.
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PEOPLE | Corporate presentation 2009/2010

DeLaval Voluntary
Milking System
(VMS) transforms
dairy farming into
a 9 to 5 job

Danish dairy farmer Erik Jørgensen has milking robots would cause the cows freedom that was never possible before,
been a farmer all his life. He never undue stress. I visited other farms and I can sleep-in if I choose to. Since I don’t
thought he would see the day when saw that the animals did not suffer with have to be in the barn at specific hours
livestock would willingly enter a stall VMS, in fact it was the other way around. I can plan the work day around my
to be milked by a machine. But since I also looked at competing products family. The whole barn is monitored
he started up his VMS-adjusted barn before finally deciding to go with by camera so I can sit and watch from
two and a half years ago, dairy farming DeLaval’s Voluntary Milking System,” home instead of having to be on site
as he knew it changed forever. These says dairy farmer Erik Jørgensen. all the time. Not having to endure the
days he almost works regular office hard labour of milking every day eases
hours and spends most of his time A new way of life as a dairy farmer up pressure on my back and I would
monitoring and managing his herd in- Located in Sjørslev on the Danish say my overall quality of life has im-
stead of doing hard manual labour. Jutland, Erik Jørgensen and his proved a great deal with VMS,” Erik
The cows are happier than ever and he brothers took over the farm from their Jørgensen says.
can spend more time with his family. father in 1978. The original barn was Another great advantage of the
In short, life is good for Erik Jørgensen. built in 1986 and equipped for a herd freedom that comes with VMS is that
Designed and built especially for VMS of 50 cows. Back then this provided more people are attracted to farm work
it has been little more than two years plenty of space but now he has almost because of the improvement in work-
since Erik Jørgensen’s new barn has three times as many cows. His three ing hours. Erik Jørgensen has been
been up and running. But the process sons help out when they are not in fortunate to have had the same man
leading up to the decision to go with school. One day they might follow in working for him for fifteen years but
DeLaval VMS took almost six years. their father’s footsteps and become should he resign it will be a lot easier
One important factor behind his deci- dairy farmers too. With milk prices to find a replacement than previously.
sion to choose DeLaval was the ability dropping, Erik Jørgensen doubts that
to manually control the milking arm on he would have made the investment Animal welfare is good for business
the VMS and he demonstrates just how in a new barn had it not been for his Once Erik Jørgensen had made the
easily he can take control of the milk- sons’ interest in dairy farming. But he decision to invest in the DeLaval VMS
ing arm and manually attach it to the is very satisfied with the new way of he went all out, and with help from
udder which is important when train- life that has come about with VMS. DeLaval, built a state of the art barn
ing new cows. “It’s a big change from having to customised for his particular needs.
“Animal welfare is what matters get up every morning at four to milk The barn is organised so that he can
most to me and I was concerned that the cows. The VMS comes with a easily move around and have a clear

72

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PEOPLE | Corporate presentation 2009/2010

view of every corner. Animal circulation placed under the animal during milking. in production is painful for cows that
is optimised for an even flow through To avoid spreading disease, hygiene are not milked when they need to be
the two VMS units in the middle of standards are another important issue. and it can take a lot of time to catch
the barn and cows with special needs With the DeLaval VMS the teat cup is up. To avoid a breakdown, the farm
such as those who are pregnant or cleaned between each milking. “For has its own energy and water supply.
sick are automatically separated off. us, animal health and welfare are al- But if something should happen the
This makes the job of taking care of ways in focus and we have come a DeLaval service technicians are a
the herd a lot easier. Animal welfare is long way. Today, automatic systems phone call away. The long-term com-
good for business. “Taking care of the are an accepted method but we have mitment from DeLaval was important
animals is the most important part of only just begun scraping the surface to Erik when deciding to make the in-
a dairy farmer’s job. Happy cows pro- in this field, the possibilities are end- vestment in VMS. “It is a great comfort
duce much more milk and with VMS less. No one will want to run their to have the DeLaval’s VMS service
they are happier than ever because dairy farm operation in any other team. I can call them 24/7 and their
they don’t have to wait until I milk way,” says Jonas Hällman VMS Port- technicians impress me with their
them. Instead they can choose when folio Director at DeLaval. knowledge of the VMS robot. Some-
and how often they want to be times they don’t even have to come
milked; some of them as often as five The comfort of around the clock out to the farm, they can guide me
times a day, others only twice a day.” support step by step over the phone which
says Erik Jørgensen. It is clear that Erik Jørgensen cares saves a lot of time. If I have an issue
The hydraulic arm on the DeLaval deeply for his animals and when the with my computer software they can
VMS is fast and reliable. Designed to cows suffer he suffers with them. That access it remotely and I just sit back
create a comfortable milking experi- is why well functioning VMS robots and watch them solve my problem,”
ence for the cow, the VMS has nothing are of the utmost importance. A halt says Erik Jørgensen.

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An office job to reduce the environmental footprint the option of a steam backflush unit
Managing the herd from his office de- of the farm and the VMS helps him do that uses steam to disinfect the VMS
mands a different skill set than tradi- that. When the milk cools from the cows’ between each milking are some of the
tional dairy farming. But although Erik body temperature of 38 degrees to the new features. “When we designed the
Jørgensen had no previous computer storage temperature of four degrees VMS, we applied all of DeLaval’s know-
experience he has quickly adjusted to the excess heat is used to warm up his ledge of dairy farming. The engineers
using computerised data to improve home – saving thousands of litres of oil. knew that to work well in the barn en-
his operation, which helps increase VMS works seamlessly with this since vironment, the VMS had to take many
production and achieve higher quality it provides a constant flow of milk in- things into consideration. Our vision of
milk. With higher quality milk he can stead of peaking during certain hours. Smart Farming is to continuously im-
earn more than one hundred euros extra According to the Danish Agricultural prove the smartness of the system. If we
per cow per year and the possibilities Advisory Service, DeLaval’s VMS ranks can connect everything from feeding
to fine tune everything from feed to barn among the top Automatic Milking to animal health systems we have come
temperature are endless. The goal for Systems in the world for energy effi- a long way. Reducing energy and water
Erik Jørgensen is not to have the largest ciency. “Sustainable dairy farming is not consumption, supporting animal welfare
dairy farm operation in Denmark but only about reducing environmental im- and boosting production are corner-
the most efficient. “The cows are quick pact. It’s also about increasing efficiency. stones of the DeLaval VMS and we will
to learn how to use the VMS but just If I can improve the yield from each cow continue to broaden the offering with
like people they are individuals. Some I can keep the herd smaller which also every new version,” says Jonas Hällman.
of them don’t like the feed as much so means less impact on the environ- Despite fierce competition from
even when their udders are full they are ment,” emphasises Erik Jørgensen. countries with lower production costs,
still not as eager to enter the VMS which the future looks good for Erik Jørgen-
can lead to fewer milkings. Finding a VMS 2010 - The sky is the limit sen. He believes the key to survival is
feed that most cows like is a challenge, So far VMS has changed the lives of products that give good value for money.
cows can be just as picky as humans. more than 6,000 dairy farmers. Since it “Today, I have a very modern farm but
For example, if it were me in there I was launched over a decade ago a lot ten years from now I am sure it will be
would have preferred some Danish has happened and DeLaval continues obsolete. If someone had told me about
pastries,” laughs Erik Jørgensen. to make improvements with each new VMS fifteen years ago I wouldn’t have
model. The VMS 2010 is more robust believed it possible and here we are now.
Sustainability comes in many forms and serviceability has improved. A new I don’t know what the future holds, but
Erik Jørgensen recognises the need touch screen operating system and to me, the sky is the limit,” concludes
Erik Jørgensen.
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PEOPLE | Corporate presentation 2009/2010

2009/2010 in brief

Sustainability in focus at IDF World latest DeLaval’s robotic feeder maxi- Disease control and prevention are
Dairy Summit mizes returns and helps to improve major challenges in the dairy industry.
Sustainability in European dairy farm- the farmer’s lifestyle. The Optifeed A farm disease outbreak poses a serious
ing was one of the major topics at IDF System is designed to be combined health threat, as well as a financial
Berlin. At the event DeLaval put forward with existing on-farm equipment such risk for the individual farmer.
its Sustainable Dairy Farming strategy, as silos, mixers and buffer tables. The new facility answers to the new
presenting solutions that are already Current Good Manufacturing Practice
helping dairy producers globally to Swinging Cow Brush increases regulations. The facility will supply
become more profitable while reduc- profitability dairy farmers in Europe, Africa, Middle
ing environmental impact. A study by Cornell University shows East and Asia with vital veterinary
DeLaval also presented its quotation that dairy cows using the DeLaval medicinal products, targeted mainly
tool for sales staff to evaluate the Swinging Cow Brush (SCB) register at preventing mastitis and lameness
energy footprint of the system farmers higher milk production and fewer in cows.
are planning to use. Today, Sustainable clinical mastitis cases.
Dairy Farming is incorporated into all The study was presented in August Mega VMS operations inaugurated
research and development to help 2009 and concluded that second in 2010
farmers towards a farming which is lactation cows using the SCB showed The inauguration of two mega VMS
both sustainable and profitable. a significant increase in daily milk operations marked this year another
production, of up to 1 kg per day.
Optifeed, a smarter robotic system Installation of the SCB resulted in an
In April, DeLaval launched Optifeed immediate increase in cow grooming
System, the market’s smartest feed- behavior. A second major finding was
ing system designed to help dairy a significant drop in clinical mastitis
farmers save up to three hours of cases, over 30 per cent, among second
labour each day, improve performance and older lactation cows.
and significantly cut feeding and capi-
tal costs. GMP facility opened in Drongen
Feeding is the largest cost driver on A GMP facility that supports farmers in
a dairy farm, representing up to 50 per accessing safe and efficient Biosecu-
cent of running costs. With accurate rity and Animal Health related products
filling, mixing and distribution, the has opened in Drongen, Belgium.

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Corporate presentation 2009/2010

milestone for the DeLaval voluntary New South Wales, Australia and Agromek in Denmark.
milking system VMS. The Mason Dixon Toronto, Canada. The goal is to The DeLaval Herd Navigator is a
farm located in Gettysburg, Pennsyl- achieve a shift in focus from milking result of unique research developed
vania (USA) has become the largest in management to global farm profita- by Lattec, in joint venture between
the world with twenty VMS and 1,100 bility management. DeLaval has a DeLaval International and FOSS. It is
cows. The Belshina-Agro operation in number of innovative and automated a decision making tool that supports
Belarus with twelve VMS and approxi- solutions to accomplish it. For DeLaval dairy farmers in managing their herds,
mately one thousand cows is currently Smart Farming™ it is not only about improving cow health, reproduction
the largest VMS operation in Europe. robots; it is about empowering today’s efficiency, and feed control while re-
Modern dairy farming is defined by farmers with the decision tools and ducing operational costs. The system
scale and efficiency. With the VMS automation technologies that seam- warns about diseases and other devi-
technology dairy farmers find a new lessly integrate products, services and ations before they actually affect the
balance between a more profitable knowledge for better quality milk, herd animal, so the farmer can act upon
business and an enhanced lifestyle, management, productivity and profit. them. The Herd Navigator is a corner-
while getting more time on their hands The link between Smart Farming™ stone of DeLaval’s Smart Farming™
to focus on herd management. VMS is and sustainability is also strong. By vision with the aim to unlock further
capable of harvesting 2,000 to 2,500 kg providing smart technology to increase integrated automation possibilities for
of milk per day. It is one of the most resource efficiency and supporting the dairy industry.
energy efficient automatic systems in dairy farmers to do more with less a
the world as it uses between 15 and big step towards Sustainable Dairy DeLaval’s voluntary milking system
25 kWh per ton of milk. In short, VMS Farming is taken. VMS 2010 proclaimed “Machine of
makes dairy production more profitable, the Year” at trade fair
sustainable, predictable and easier to Herd Navigator awarded the Golden The latest release of the DeLaval
manage. Hoof at the biannual Brussels Inter- voluntary milking system, the VMS
national Agricultural Fair 2010, was awarded “Agricultural
DeLaval shares its Smart Farming™ Since its launch in 2008, DeLaval Machine of the Year 2010” at the
vision at world dairy forums Herd Navigator has collected several Polish agricultural trade fair Agrotech
During the beginning of 2010 DeLaval awards, among them the Gold Trophy in March 2010.
presented the vision of Smart Farming™ at the SIA in Paris and the three star Up to date the DeLaval VMS has
at conferences in Tulare, California, New Product Europe award at changed the life of more than 6,000

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Environmental and Social Report Agrotech

dairy farmers and DeLaval continues the footprint of both dairy farms and
to make improvements with each new DeLaval’s own supply chain.
model, always with cost efficiency in Starting from how sustainability has
mind. The VMS 2010 is more robust been integrated into company strategy,
and serviceability has increased. User the report moves on to environmental
friendliness is key and the new model and social aspects of DeLaval opera-
features a new touch screen and a tions, supported by baseline data
new operating system that further adds to track performance. Examples of
to the system’s speed and control. challenges and opportunities include
The option of a steam backflush unit how DeLaval listens to customers,
that uses steam to disinfect the VMS employees and other stakeholder
between each milking is another groups, and acts on that feedback,
exciting new feature this year. how energy and water efficiency in
manufacturing are being improved,
DeLaval produces its first Environ- and how waste volumes are being
mental and Social Report reduced.
In December 2009, the first Environ-
mental and Social Report was pub-
lished for internal use at DeLaval.
This non-financial report is part of
the Sustainable Dairy Farming initia-
tive, where the purpose is to improve

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PRODUCTS | Corporate presentation 2009/2010

DeLaval’s two-front
war with disease

DeLaval’s launch of an advanced bio- bacteria and viruses from spreading,” herd and for the farmer and the distress
security programme focusing on pre- says Olivier Martin-Schmets, Director caused by them significantly lowers
vention rather than reaction has taken for the Milk Quality & Animal Health productivity. Since they also spread
animal health to a new level. Dealing Portfolio. disease the treatment of sick animals
with diseases also means treating adds to production costs. With our
them, a new area for DeLaval. To meet A triple approach to protection products dairy farmers can both increase
the most stringent Good Manufacturing DeLaval takes a triple approach to productivity and cut disease related
Practice guidelines for medicinal teat protection by looking at hard surface costs,” Olivier Martin-Schmets says.
dip products DeLaval has invested in cleaning products, rodenticides and
the most advanced pharmaceutical insecticides. Hard surface cleaning An increased need for biosecurity
factory the dairy industry has ever products prevent bacteria and viruses in dairy farming
seen for udder health purposes. from developing. Disinfecting the stable In recent years the awareness of human
Biosecurity is concerned with raising prevents bacteria and viruses from diseases originating from animals has
awareness about the ways disease becoming endemic and from circulat- grown and the climate change has
can spread and taking practical ing within the barn. Rodenticides kill also been a catalyst for placing bio-
measures to minimize the risk of re- mice, rats and other disease-carrying security high on the political agenda,
occurrence and spread. Many diseases animals that might enter the stables. not only because of the human risks but
come from outside the farm; rodents The biosecurity programme also in- also due to the financial impact. The
and insects are obvious carriers. cludes a very effective fly control cost of diseases such as blue tongue
Similarly new dairy animals being add- programme with insecticides that not or foot and mouth amounts to billions.
ed to the herd and visitors to the farm only kill the adult flies but also makes “Biosecurity has been an issue for
such as veterinarians, sales reps, and sure the larvae never mature. The other farmers for quite some time but
cattle buyers can also bring disease products are easy to use and can be it is now becoming increasingly im-
with them. applied by dry scattering, spraying or portant for dairy farmers. The increase
“What we are trying to achieve is to watering. in size from small farms with herds of
prevent disease from entering the farm “Fly control and rodent control are twenty cows up to dairy farms with
at all. A clean farm environment is a important parts of keeping a good hundreds of cows means they are
key factor to success and we have environment for milk production. Flies becoming more like a swine operation
products for disinfection to prevent and rats are unpleasant for both the with high infection pressure due to

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the number of animals present in a re- unattainable with the old GMP-plant. not only products but also knowledge
stricted area. If they get blue tongue or This will enable manufacturing in a about how to apply the products to the
foot and mouth disease it could be more efficient manner. DeLaval aims dairy farms. That is why we have
devastating. Thus, the need to protect at providing its customers with the best decided to stay in the game and to
the herd from disease has increased,” quality products at the best price,” become a major player in biosecurity
says Olivier Martin-Schmets. emphasizes Olivier Martin-Schmets. and animal health for the dairy industry,”
concludes Olivier Martin-Schmets.
DeLaval takes it to a new level with Adding dairy farming experience
investment in good manufacturing to the pharmaceutical industry
practice The need for increased investments
With a multimillion euro investment in comes from a more regulated market.
a new GMP-facility, DeLaval has really Fly control products and rodenticides
stepped up its game. Technically, are under strict regulation and all of
Good Manufacturing Practice (GMP) DeLaval’s products are moving towards
means a clean room production environ- animal health and therefore more
ment. For this, one needs total control considered medicinal products. Many
of the internal air and the water supply. of them are already treated as veteri-
The new facility has an air pressure nary drugs and thus DeLaval has to
system to move the air and interlocking meet new standards.
doors. The quality of water is critical “With the new manufacturing environ-
in this kind of environment and there ment DeLaval has the ability to take
are five steps to make purified water the next step. Entering the pharma-
from tap water. All procedures are ceutical industry brings fresh challenges
validated to ensure nothing goes and fierce competition, but we can
wrong in the production process. also source products from others who
“The new facility is the most ad- might have knowledge unknown to us
vanced pharmaceutical factory of its – the products themselves are not often
kind in the dairy industry and it means unique. What is unique is DeLaval’s
we can use technologies that were knowledge of dairy farming. We bring

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DeLaval’s long
term vision for
Biosecurity &
Animal Health

Biosecurity and animal health are im- products can be commercialized they their products due to the cost of
portant strategic development areas undergo a host of clinical studies and maintaining regulatory standards –
for the future. The goal is a combina- 70 to 80 per cent of all projects fail the but DeLaval can.
tion of in-house research and develop- tests. Obviously those that make it to “Today, we produce 95 per cent of
ment, licensing and joint ventures with the end of the pipeline must be profit- what we sell. Our R&D and regulatory
initial focus on generics. able enough to cover the losses from departments are in-house and fully
DeLaval has developed a considera- the failed ones,” says Tim Nicolaї. integrated which is a competitive ad-
ble aftermarket product line which forms When a product is registered as a vantage built up over the years. But we
an important part of total revenue. veterinary product in the EU and other want to expand our animal health offer-
Animal health products and consuma- parts of the world, it can only be sold ing globally and we do not suffer from
bles in farm hygiene and milk quality on prescription by a veterinarian or the ‘not invented here’ syndrome. We
areas contribute a substantial part of through a wholesale pharmaceutical are looking into channeling generics and
that revenue. Biosecurity products have company. licensing other companies’ products, as
recently been added to the offering. “In several countries we need to be well as their technology. Joint ventures
“DeLaval is really forward-looking in registered as a pharmaceutical whole- and acquisitions are also on the agenda.
this area. One alternative would have sale company in order to be able to sell Our strategy is a combination of
been to outsource these products be- these products. To meet the criteria in-house R&D, licensing, joint ven-
cause they are expensive to maintain means a demand for much more tures, acquisitions and initial focus
for compliance with different legisla- administrative capabilities. If a product on generics,” says Tim Nicolaї.
tions around the world but we chose fails and/or shows adverse reactions When regulations around the globe
to continue our investments and become on animals we must guarantee full are becoming more restrictive it limits
a major player in this field,” says Tim traceability to enable a recall of the what can be brought to the market
Nicolaї, Vice President Business Area whole batch,” says Tim Nicolaї. and it also increases the need for
Aftermarket & Services. careful documentation.
New strategies for new possibilities “Our new GMP-facility in Belgium is
The challenge of a regulated Legislation differs between continents part of our expansion programme.
business but there is hope for consistency in the With our superior distribution we will
Animal health businesses are mostly law within the EU. It is anticipated that not only adhere to the dairy industry
part of the big global pharmaceutical biocides will be regulated in a similar way but also distribute to other species.
companies. Their R&D resources sur- as pharmaceutical products in the near Our products can be applied to many
pass that of DeLaval’s by great numbers. future. This development opens up more areas, and now we have the re-
“The complete development process important opportunities. The smaller sources to support them,” finishes
can take 5 years. Before medicinal players cannot continue to support Tim Nicolaї.
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PARTNERSHIP | Corporate presentation 2009/2010

DeLaval supports
the improvement
of raw milk quality
in China

In 2009, the main focus for DeLaval in grammes at the Sino-Swedish Dairy the Chinese dairy industry had an
China was to get the message of sus- Centre. The centre is an inter-govern- enormous impact on sales last year.
tainable farming out to the Chinese mental cooperation between China DeLaval is now an approved supplier.
market. Food quality and the dairy and Sweden and will further promote This entitles our customers to 30 per
industry are pressing issues for the the sustainable growth of the dairy cent national funding and 20 per cent
Chinese government, which is eager industry by improving China’s raw local funding on capital investments
to see an improvement in standards. milk production. Founded in 1984, in milking equipment, which means
Recently, China has made a substan- the Sino-Swedish Dairy Centre is the up to 50 per cent of their investments
tial financial contribution in support of first organisation in China dedicated are subsidised.
modernising the dairy industry by to training and product development “Orders are increasing by 50 per
providing funds and grants. DeLaval within the dairy industry. cent and hygiene product orders have
has held meetings with officials to “The fact that we have been commit- increased by 75 per cent over the
supply information on ISO standards ted to China since 1984 gives DeLaval past year. This, at a time when the
for milking and cooling. strong credibility. It proves our genuine global dairy industry is down by 20
“We are providing supporting infor- interest in our Chinese counterparts,” per cent,” Michael Hughes concludes.
mation on how to invest and get a says Michael Hughes.
good return on investment. They are More than four thousand farmers,
listening to us knowing that we have Village Milking Centre (VMC) managers,
global expertise,” says Michael Hughes, and raw milk quality inspectors have
President of DeLaval East Asia. taken part in the wide range of milk
Another important step was the quality training programmes on offer.
launch of extensive training pro- The focus on training and modernising

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DeLaval goes the


extra mile to give
customers peace
of mind

The launch of InService™ last year now on their third service agreement. With bigger herds, the size and com-
achieved global status and has been InService™ gives them the peace of plexity of dairy farms and milking
widely appreciated by customers and mind that comes with the knowledge systems has increased with more
people working with service. With that their equipment is well maintained,” installations needing scheduled service.
InService™ many customers have says Gary Lindsay. Distances from the home office can be
started to see the benefits of prevent- vast, and the technicians can be a long
ative maintenance instead of waiting Flexibility to meet the requirements way from the stock of service spares.
for emergency service. Herd health is of the local market “Not only are the distances huge,
improved and the milking plants per-
The InService™ concept is based on but we also have a wide variety of
form at optimum levels. InService™
an understanding of how globalisation farming systems. In some areas the
has given customers peace of mind
creates demand for a standardised milking is done 365 days a year and
and reduced stress levels for service
service whilst at the same time recog- in others it is seasonal. We have many
technicians and the cows. DeLaval
InService™ is here to stay. nising the varying needs of farmers in grassland based farming systems and
Distance is a major challenge in different parts of the world. many intensive operations. We have
Australia. Gary Lindsay, National “We have really managed to get the small swingover plants, large rotaries
Service Manager, is located in Brisbane, message out there both internally and and now numerous Voluntary Milking
1,700 km south of the northernmost externally. Our dealers and customers Systems (VMS). InService™ helps us to
service technician and 4,000 km east have seen an improvement and they cope with a variety of farming systems
of the westernmost. Individual tech- have a very positive image of DeLaval’s because of its flexibility to meet indi-
nicians often cover large distances so new approach to service. Our service vidual farm and farmer requirements,”
advanced scheduling is critical to save is about being there to meet customer says Gary Lindsay.
time and money for everyone involved. expectations,” says Peter Jidesjö, Port-
“Modern farmers need to plan ahead; folio Director Services & Original Parts. A toolbox for service
they want the kind of preventative In Australia, the launch of InService™ The InService™ concept turns an in-
service offered with the InService™ could not have been better timed. tangible phenomenon into a product
concept. With InService™, the farm- The dairy industry is changing. Since farmers can understand and service
ers see clear improvements such as 2000 the number of dairy farms in technicians can sell. The branded
less emergency service, increased some parts of the country has almost vehicles are recognised everywhere
productivity and better udder health. halved. In contrast the number of cows and many dealerships have asked to
We have a number of farmers who are has remained more or less the same. join the programme. Dealers have to

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meet strict criteria before they can those agreed services. The result is “It takes a lot of the worry out of man-
become part of the InService™ an improved service delivery for aging the farm. We don’t have to re-
dealership team. customers and a better work situation member to order chemicals or parts;
The concept is appreciated by the for technicians. our technician just arrives and does
entire sales organisation. One of the “We have tried to keep the process our servicing when it’s due. We know
reasons for this is that colleagues simple and efficient. It starts with a that the plant will be serviced and liners
from all over the world have been part formal meeting with the farmer where changed at the right time. It also helps
of the development process. the service technician explains how us to manage cash flow, because we
“Our service technicians are doing the service agreement works. The know when to expect the maintenance
an outstanding job, often working with technician then records all the details charges. As a result the plant works
customers in tough conditions. When of the equipment on the farm and very well. We will definitely be renewing
developing InService™ we took on board prepares a service quotation. Together our service agreement again when it
what works in practice. InService™ they plan a service schedule and is due,” says Dwayne.
gives the technicians the tools to agree the parts required for the next Service has always been a major
support their service delivery,” says twelve months. It’s a great thing for strength of DeLaval’s. With InService™,
Peter Jidesjö. the service technicians and the farmer DeLaval has taken the concept to the
to be able to do this twelve months in next level.
Establishing long term partnerships advance instead of having to do it “InService™ is not just a campaign
between DeLaval and the customer during service call outs and break- but an integral part of DeLaval. To stay
InService™ is more than just delivering down visits on an ad hoc basis,” says ahead of our competitors and continue
a service; it is a partnership between Gary Lindsay enthusiastically. to be a successful company we must
DeLaval and the customer. Before Dwayne Neal and his family run deliver an outstanding service.
InService™ there were few service Laureldene Farms in Boyanup, Western InService™ is a commitment to
technicians who focused solely on Australia, where they milk about 210 DeLaval’s customers which goes that
providing service. Their time has tradi- cows in a 20 unit plant with Alpro™ extra mile,” concludes Peter Jidesjö.
tionally been divided between installa- herd management, feeding and Auto-
tions, servicing and giving workshops. matic Cluster Removals. Dwayne is
InService™ provides the opportunity one of many farmers who have seen
for technicians to focus solely on selling the benefits of InService™ and he is
service agreements and delivering now on his third Service Agreement.

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INNOVATION | Corporate presentation 2009/2010

DeLaval accelerates
the development of
Smart Farming™

DeLaval is taking major steps this towards integrating milking, feeding 98 per cent as well as providing precise
year to become a one-stop supplier and barn environment to provide milk insemination time. It manages early
able to deliver fully integrated and producers with the right tools to run detection of significant health problems
automated systems at farm level in their farms more profitably. Through its such as mastitis and ketosis thereby
accordance with its strategic concept. Global Customer Project Support Group, improving productivity, profitability,
The concept, Smart Farming™, is DeLaval reaches out to customers animal welfare and food safety. By
aimed at influencing and shaping the around the world with the knowledge automatically taking daily samples of
future of dairy farming today. The goal and skills that allow the delivery of the milk Herd Navigator informs, alerts and
is to accelerate the transition from Smart Farming hardware. advises the dairy farmer of the condi-
stand-alone milking management to “We are already more than just a tion and health of each individual cow.
global farm profitability management. supplier of milking solutions, our goal “The key is to continuously work on
DeLaval has achieved this by harnessing is to be the company that takes a developing solutions so the same
emerging decision tools and automa- holistic approach: we supply integrated products can be integrated into different
tion technologies for better quality smart solutions at farm level. DeLaval systems. Currently, we are integrating
milk and increased profits. has a rapidly growing range of innova- Herd Navigator with the DeLaval
“The dairy industry is experiencing a tive and automated solutions geared Voluntary Milking System (VMS)
significant technology shift. As a market to boost dairy business efficiency,” which takes us one step closer to our
leader we have the skills and the says Fernando Mazeris, Portfolio vision of total integration at farm level.
resources to not only react to the Director Dairy Management & Nutrition. It is a huge step towards making
challenges that milk producers are DeLaval’s solutions do not just Smart Farming™ a reality. There are
facing but also to provide leadership. produce a mass of data leaving inter- other examples such as connecting
Our ambition is to be proactive and pretation and decision making up to the automatic feeding system, Optifeed,
shape the future of the dairy industry,” the farmer. DeLaval has enhanced to milking management systems such
says Andrew Turner, Vice President decision making tools, its built-in as Delpro,” says Fernando Mazeris.
Business Area Capital Goods. intelligence systems present straight-
DeLaval is shifting focus towards forward action suggestions to the Key factors driving the development
more than just the milking side of farmer. One such tool is the Herd Commercial factors are important
dairy farming. This means supplying Navigator, launched in 2008. This is drivers of the transition from milking
products, services and knowledge a pro-active management system that management to farm profitability.
to support the complete range of allows full control of the herd’s repro- Customers need to be responsive to
farm operations. DeLaval is working duction, lifting heat detection by up to the very volatile price of milk in the

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market which means a need to manage with greater productivity per cow. It all A shift in technology but some
their costs and productivity much creates a farm environment where the things remain the same
more actively. farmer needs to manage high yielding Compared to other types of farming,
“Globally, our customers face an animals and the best use of resources. dairy is far less developed. Dairy
economic reality that is already being He needs to take appropriate key farming is at the beginning of this
defined by scale and efficiency. As actions on a daily basis. process and it is also more complex.
well as the commercial aspects there “Dealing with animals – milking, As dairy farmers know, milking is a
are the influences on our customers’ feeding and handling of manure plus very complicated procedure because
value chain from consumers with always considering animal welfare is by comparison the cow is a pretty
strong environmental concerns. Political not simple. At the same time there is a large animal. This makes for a huge
and economic decisions by either EU shortage of labour since fewer people difference in engineering. Still, the dairy
or WTO also have an impact. In short, want to work at dairy farms. In this world can expect a few changes.
our customers need our help to deliver complex environment milk producers “On the processing side there has
a better and smarter production environ- need smart tools to be able to run their been a move towards cleaner produc-
ment. We must develop and provide operations efficiently. For this to work tion and higher expectations from
them with the tools to achieve just properly it is important that the tools consumers. A significant increase in
that,” says Andrew Turner. really help and do not make it more automation will result in smaller work-
Dairy farming has long since ceased complex. Our systems allow smooth force. The shift to new technology
to be just a way of life. Farmers are more management of bigger herds with less based on infrared cameras, diagnostic
professional than ever and they have labour,” says Fernando Mazeris. tools and algorithms is also key.
to manage a very complex operation. Customers’ needs will however remain
The trend is for herd sizes to increase the same. Developed and developing
in many parts of the world together countries will continue to have different

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INNOVATION | Corporate presentation 2009/2010

requirements,” says Andrew Turner. speed and spin-offs from other indus- world. Customer need is paramount
Advances in technology include the tries can be applied. This will grow fast to success. It is about quality of delivery,
automation of milking such as the and nothing is impossible. Early feed- pace and, most importantly, after
DeLaval Voluntary Milking System (VMS). back from our Herd Navigator users sales support. We also need to take
Thanks to the DeLaval Optifeeding has been encouraging. They cannot responsibility and get involved in the
system a major leap in robotic feeding imagine going back to their old ways. global debates affecting our industry
has also taken place. The system loads, It would be like living without the so that we can influence outcomes.
cuts, mixes and distributes feed auto- Internet,” says Fernando Mazeris Our aim is to lead and drive the
matically, day and night, saving dairy enthusiastically. development towards sustainable
farmers up to 3 hours labour per day. dairy farming. Put it all together and
Optifeeding also allows farmers to Success factors we are in a very good place to deliver
ensure the correct food balance for DeLaval has a long tradition of being and achieve our goals,” concludes
each cow, or group of cows, according the dairy industry market leader and Andrew Turner.
to their stage in the lactation cycle. our customers expect this to continue.
The result is improved performance The company’s global position and
and significant cuts in feeding and strong relationships with many R&D
capital costs. As far as Smart Barn institutes also allows insight into new
Environment goes, the possibilities are trends and developments. DeLaval
endless, from automated ventilation has a strong foundation to build on.
that responds to weather and climate But this also provides challenges.
to automatic illumination control and Going into areas where DeLaval’s
manure handling. knowledge is peripheral, such as
“There is also a soft part. Sensors, veterinary diagnostics, requires strategic
data collection and aided decision tools initiatives to increase internal expertise
for efficient herd management, com- and enable the company to work with
bined with the automation, create two new partners. These trends are global
layers for the Smart Barn Environment and competitors are following the
– labour and management. This is same route.
probably just the beginning of a “Our edge comes from the ability to
tremendous development. Sensor- deliver on a broad scale to different
technology is developing at huge types of dairy farmers around the

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SUSTAINABILITY | Corporate presentation 2009/2010

Sustainable Dairy
Farming around
the world

When DeLaval launched the Sustain- sustainability is about continuous im- be more profitable. For customers, it
able Dairy Farming (SDF) initiative in provement on all types of farms, we is also important how DeLaval acts and
2008 it was based on increased already have many solutions that can what the brand stands for. In order to
awareness of environmental challenges. contribute positively,” says Mark Blake. walk the talk, a project was started to
The aim is to reduce the environmental measure and track the environmental
footprint of farms, while improving Maintaining profitability while and social impact of the company’s
milk production, farm profitability and meeting environmental standards own operations.
the well-being of the employees and In Brazil, farmers manage environ- “Sustainability is all about how we
animals. DeLaval believes this can be mental and production challenges. use resources, whether environmental,
achieved by supporting customers “Today, our production meets high social or economic, and this is how
with technology and services that can environmental standards and in recent we are looking at our own supply
increase resource efficiency. Or, put years we have invested time and finan- chain. Due to the nature of our industry,
another way, by helping farmers to do cial resources to make this happen. livestock resources/animal welfare
more with less. We are aware of the need to use renew- need to be considered in the same
According to Mark Blake, Manager able natural resources and at the same way on farm. Using natural resources
CSR Reporting, DeLaval has laid the time improve our own competitiveness. to produce food is vitally important, but
foundation for the integration of SDF For me, Sustainable Dairy Farming it is also important how we do so. At
into all company operations. means producing the maximum milk DeLaval, we have our own scientific
“We are close to a point where Sus- yield while using the least possible committee to dig deeper into what is
tainable Dairy Farming is part of the resources,” says Mauricio Silveira known in the scientific community, and
way we think. Environmental impacts Coelho, Santa Luzia farm, Passos, Brazil. we are also supporting industry and
are being considered alongside social, Sustainable Dairy Farming is a busi- customer forums, such as the IDF
animal welfare and financial ones in ness development area for DeLaval, World Dairy Summit, to discuss and
solution development. And since since a more sustainable farm should find new solutions,” says Mark Blake.

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SUSTAINABILITY | Corporate presentation 2009/2010

Energy, water and feed – the initial these solutions exceeded our expecta- DeLaval’s customers are the
drivers for Sustainable Dairy Farming tions and since we want to continue inspiration for new solutions
To support customers in their drive for working with Sustainable Dairy Farm- For Mauricio Silveira Coelho in Brazil,
sustainability, an important step is to ing we are now looking at other solu- DeLaval has always been a company
see the farm as a system. Reducing tions such as vacuum pumps,” says willing to invest in the research and
the environmental footprint often starts Masaru Wada, Wada farm, Tochigi, development of new products. More
with energy, water and feed – factors Japan. recently, he has also noticed a greater
that are also significant cost drivers. Energy is also a big issue at the concern for reducing the environmental
DeLaval has a range of solutions to Bossgården organic farm in Falköping, impact of milk production. He believes
support efficiency gains in these areas. Sweden run by Lars-Olof Josefsson. more can be done to bring benefits to
“Energy, water and feed are of great “Working according to organic both dairy farmers and to the environ-
importance on our farm and they are standards suits our farm well because ment. His farm uses the plate cooler
all linked together. Using DeLaval heat the land we have does not need artifi- and the heat recovery combined with
recovery saves a lot of energy. Re-using cial fertilizers, an issue of concern for the cooling tank compressor. This has
warm water as drinking water increases consumers. We are now focusing on boosted profitability through reduced
the cows’ fluid intake resulting in a saving electricity and reducing heat power consumption and greater effi-
significantly higher feed intake and loss. We currently use a number of De- ciency in the cleaning process.
higher milk yield. In 2009 the demand for Laval SDF solutions that contribute to Expenses for detergents have also
saving both time and energy. Using decreased, but he wants more.
VMS also frees up time for other “In relation to sustainability, I think
projects. With a DeLaval vacuum it is necessary to develop appropriate
pump and heat recovery system we solutions for the treatment and proper
save energy and are also able to use use of manure generated by cattle,
the excess heat to warm up the which for us would increase soil fertility.
house. We are very pleased with the Another desired line of research would
equipment and in the future we would be to develop products that optimize
like to become more energy indepen- the rumen environment, by reducing
dent, combining solar energy, heat energy losses and emissions from the
recovery and biofuel,” says Lars-Olof greenhouse gas, methane,” says
Josefsson. Mauricio Silveira Coelho.

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SUSTAINABILITY | Corporate presentation 2009/2010

Customer demand for more sustaina- increase, this number is expected to rise.
ble solutions will continue to guide “Long-term, resource efficiency and
product and service development. Sus- the ethical aspects of what we do are
tainability is not something that can likely to become more important,
be achieved through one solution, but whether supporting farms in Japan,
through planning and improvement in Sweden or Brazil. Working out how to
all areas. continuously improve is of course a
“I think even more will be achieved challenge for us all – but it is a chal-
in the future. Three years ago I suggested lenge that both we and many of our
the idea of harnessing the heat customers have happily accepted,”
generated by vacuum pumps to heat finishes Mark Blake.
up water for cleaning processes,
resulting in greater efficiency and
economy for the whole farm. DeLaval
took it one step further by using the
heat produced by the cooling tank
compressors. It makes me wonder
how much more can be developed,”
says Mauricio Silveira Coelho.

Balancing different demands


Being a global player means identifying
common challenges and applying
solutions to a local context.
When DeLaval asked customers how
they rank different environmental
challenges, more than one in five stated
that water and energy will strongly
impact their business over the next
three years. As resource pressures

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TETRA LAVAL

TETRA LAVAL INTERNATIONAL S.A.


CASE POSTALE 430
70, AVENUE GÉNÉRAL GUISAN
CH-1009 PULLY, SWITZERLAND
TEL +41 21 729 22 11
FAX +41 21 729 22 88
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
FAX +41 21 729 22 44
WWW.TETRAPAK.COM

DELAVAL INTERNATIONAL AB
P.O. BOX 39
GUSTAF DE LAVALS VÄG 15
SE-147 21 TUMBA, SWEDEN
TEL +46 8 530 660 00
FAX +46 8 530 689 00
WWW.DELAVAL.COM

SIDEL GROUP
AVENUE DE LA PATROUILLE DE FRANCE
OCTEVILLE SUR MER
BP 204
F-76053 LE HAVRE CEDEX, FRANCE
TEL +33 2 32 85 86 87
FAX +33 2 32 85 81 00
WWW.SIDEL.COM

Tetra Laval_ALLA_2009_2010.indd 90 2010-05-04 11.35


TETRA LAVAL

TETRA LAVAL INTERNATIONAL S.A.


CASE POSTALE 430
70, AVENUE GÉNÉRAL GUISAN
CH-1009 PULLY, SWITZERLAND
TEL +41 21 729 22 11
FAX +41 21 729 22 88
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
FAX +41 21 729 22 44
WWW.TETRAPAK.COM

DELAVAL INTERNATIONAL AB
P.O. BOX 39
GUSTAF DE LAVALS VÄG 15
SE-147 21 TUMBA, SWEDEN
TEL +46 8 530 660 00
FAX +46 8 530 689 00
WWW.DELAVAL.COM

SIDEL GROUP
AVENUE DE LA PATROUILLE DE FRANCE
OCTEVILLE SUR MER
BP 204
F-76053 LE HAVRE CEDEX, FRANCE
TEL +33 2 32 85 86 87
FAX +33 2 32 85 81 00
WWW.SIDEL.COM
BYSTED / GRAYLING / Malmoe, Sweden
Date 2010-04

Tetra Laval_2009_2010.indd 28 2010-05-04 09.50

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