Waqas Qureshi hears from six businesses in the food sector. Sustainability, investment and supply chain strain are currently high on the agenda, while demand has remained high
Amin Atkinson is business development manager at Alphapak International, a BRC grade A food co-packing site located in the East Midlands. It offers automated machine packing VFFS in a number of popular flexible packaging formats, like quad and pillow packs. The firm also has a library of pack sizes. Other formats include automated packing lines on DOY/zip pouches as well as lines packing ridged and biodegradable paper tubs and recyclable tubs. Additional services offered are flow wrapping, filling services and machine labelling.
How was business in the last 12 months during the pandemic restrictions?
We have been busy from the onset of the pandemic supporting companies with their projects, packing food stuffs and many other essentials. We are also providing to the major multiples and major online retailers. Now, with the easing of lockdown restrictions we are seeing more opportunities where our customers are suppling to food service chains.
Describe how the supply chain crisis has affected this sector
Covid- 19 and Brexit related labour shortages affecting supply lines at home and further afield have caused many to re-think the industry’s old structure. We have seen this having a knock on effect on a lengthening list of supplies. In response to these challenges we have invested in additional systems to help us improve our efficiency.
Is the use of sustainable packaging achievable from a practical point of view and are customers willing to pay for it?
We have been working closely with our packaging suppliers. For example, “Creative Gene” to better understand some of the different technical requirements for paper-based packaging and how to optimise the fulfilment to achieve the same economies of scale associated with non-recyclable materials.
Certainly, there are challenges but we see this as an important area of investment for the company. As the supply and increasing demand from consumers rises, we believe more companies will begin to seriously look at fully recyclable packaging.
What’s the strategy for the coming months? Are you planning to break into new markets, invest in kit, warehousing and staff?
We are currently exploring breaking into additional markets in the Middle East and Asia. We have plans in 2022/23 to invest in a new larger building. This site will accommodate increased production line capacity with additional room for added growth. This new building will provide additional scope for extensive storage and warehousing.
What impact is the trend towards vegan / vegetarian having on your business?
The vegan and vegetarian trend is not one we see going away anytime soon. So, that’s why we have invested in new automated production lines to help support our customers changing demands for running these products.
What do you think will be the drivers for the food industry and your company in 2022?
Sustainability is the next trend driving the food industry. Much of our packaging is classed as widely recyclable, and many of our customers we’ve helped to take that same step. We will continue to aim to reduce our own packaging waste where possible and help support our customers towards making more environmental packaging choices in 2022.
Sophie Thomas is sales and marketing co-ordinator at Complete Co-packing Services, which offers co-packing, warehousing or fulfilment requirements. It specialises in a confidential service for the contract packing of organic and non-organic dried foods, powders, granules, liquids, tablets and capsules.
How was business in the last 12 months during the pandemic restrictions?
Last year was another strong year. During lockdowns we saw an increase in demand for products such as baking ingredients, alcoholic beverages and immunity boosting products. We found that our clients were looking for quick turnaround times as so many consumers were now shopping online. One of our biggest hurdles has been staffing issues due to isolation and at certain times we had to shut down entire lines in the factory.
Describe how the supply chain crisis has affected this sector
The supply chain crisis has massively impacted this sector with our clients struggling to get product and packaging components into us. Companies seem to be looking to bring manufacturing and packing back into the UK.
Is the use of sustainable packaging achievable from a practical point of view and are customers willing to pay for it?
The majority of our customers are now looking to move to sustainable packaging formats. With the introduction of the plastic packaging tax in April we expect to see even more companies looking to use eco-friendly packaging. We have seen that certain sustainable packaging materials can reduce the shelf-life on products due to the level of barrier protection. However, I can see a solution being made for this as the sector continues to grow.
What impact is the trend towards vegan/ vegetarian having on your business?
One of our goals for 2020/21 was to enter into new markets, particularly the vegan market. We have achieved this and over the past two years have packed a variety of plant-based products for our clients. With this trend set to continue to grow we can only see a positive impact on our business.
What’s the strategy for the coming months? Are you planning to break into new markets, invest in kit, warehousing and staff?
We are looking to invest in more automated lines. In the next few weeks, we are having a fully automated bottling line delivered on site and we are also exploring pot filling and can filling options potentially for this year.
What do you think will be the drivers for the food industry / your company in 2022?
I think we will continue to see the move to green theme packaging as well as continued growth in the vegan sector. We have seen a huge increase in enquiries within the wellbeing sector. I expect to see products such as superfood powders, health supplements and immunity boosting products to remain popular throughout 2022. One of the biggest areas of growth that we want to focus on in 2022 is the D2C market. E-commerce is now one of the most critical sales tools for businesses within the food and drink sector.
John Taylor is managing director at Country Products, which co-packs organic and conventional dried food products. It serves the confectionery, FMCG, gifting, hampers, snacking and foodservice markets with form fill and seal packing into sachets, pillow and quad packs, plus boxing and packing into pots and tubs.
How was business in the last 12 months during the pandemic restrictions?
Business was extremely busy during the early part of last year with store cupboard and bakery ingredients sectors particularly doing well. As lockdown began to ease, we have seen our customers serving the hospitality and catering sectors gradually return.
Describe how the supply chain crisis has affected this sector
Significant delays and price rises in raw materials and packaging has proved to be a real challenge. However, we have adapted very quickly to the supply issues and driven efficiencies to minimise the impact on our customers. We are seeing an increase in stock holding of our customers’ ingredients and packaging to offset these challenges.
Is the use of sustainable packaging achievable from a practical point of view and are customers willing to pay for it?
We have almost daily enquiries for different packaging alternatives and have undertaken significant work in this area both on plant and technically with our packaging partners in the past year. We have been able to offer alternatives to the standard packaging options and have several launches planned with our customers in the new year. Our experience is that for the right option, customers are willing to pay the additional cost.
What impact is the trend towards vegan / vegetarian having on your business?
The majority of products that we pack are suitable for the vegan and vegetarian markets, there has been a big growth in this sector with more customers wishing to highlight this on-pack.
Have you seen an increase in demand for white label products?
We have definitely seen an increase in demand for white label and as we work with a large number of smaller brands by offering flexible turnkey solutions, the level of enquires have increased significantly this year, with a number of launches into major retail.
What’s the strategy for the coming months? Are you planning to break into new markets, invest in kit, warehousing and staff?
Country Products is looking to continue developing new innovative product and packing solutions for its customers. Further investment in new machinery and staff recruitment and development will be key to ensuring that we will be well placed to meet our growth expectations.
What do you think will be the drivers for the food industry / your company in 2022?
I think the key drivers for the industry will be the development of more sustainable packaging solutions, that the trend will move to more healthy products that have justifiable claims on pack and that the current increase in the vegan and vegetarian markets will continue. Additionally, it appears that there will be great uncertainty over the coming months with the emergence of the Omicron variant and the potential for staff absences due to the need to isolate. This will add extra strain to supply chains and the potential for more price rises on the horizon. Further efficiency gains, capital investment and stock holding will allow us to absorb some of these costs without passing them on to our customers.
Bipin Sanghavi is managing director, Grange Packaging Solutions, a privately owned co-packing business in the UK and supplier to many of Europe’s largest food manufacturers. Operations include blending, clean-room environments, catering for both nut trace and nut-free packing, VFFS, flow wrapping, multi-heads, counters, cartoning, multi and singular pot formats and inspection/rework facilities.
How was business in the last 12 months during the pandemic restrictions?
The lockdown had a positive impact on us we were extremely busy with many of our customers having increased demand due to experiencing their own staff shortages. The race to keep shelves stocked due to panic buying led to fluctuating plans from clients.
Is the use of sustainable packaging achievable from a practical (food protection/machinery) point of view and are customers willing to pay for it?
“Sustainable packaging” by definition is very broad and to understand and apply in every sector is real challenge. Sometimes just to achieve one goal of recyclability, a part of sustainable, is not always serve the total solution. For example, moving away from performance packaging film to paper and card packaging is not practically solving carbon footprint and affects the shelf-life of the product too. Compulsion driven by bigger brands and chain for sustainability packaging should not be used for publicity but should be balanced between practical approach, affordability for the end user of the product. Ultimately the price for that is paid by the consumer and the percentage of sustainability goal achieved.
Describe how the supply chain crisis has affected this sector
The supply chain crisis meant we had to adapt the way we plan with delivery shortages causing last minute plan changes as items were not delivered on time. We pride ourselves on how our team can react quickly to such challenges that is our unique selling point that we are so adaptable.
What impact is the trend towards vegan / vegetarian having on your business?
We currently haven’t seen much change in demand for this area as we have produced vegan and vegetarian products for many years on our bagging and pot lines. We have seen more product development regarding savoury variants of porridge pots and other formats as product developers try to break into this market with unique products.
Have you seen an increase in demand for white label products?
Personally, we haven’t seen a demand for white label products this is something we have done small projects on previously but no demand at the moment.
What’s the strategy for the coming months? Are you planning to break into new markets, invest in kit, warehousing and staff?
As like many businesses, widening a client portfolio, offering more product types and services will be major focus for the coming year. We will certainly accommodate a wider range of co-pack services both within food and non-food sectors, in order to do this, we plan to invest in order to improve and increase our facility. This will certainly lead us to invest in recruiting more technical staff, front line key members in production and quality.
What do you think will be the drivers for the food industry / your company in 2022?
For the food industry, affordability and shelf life is always a concern and it has also become necessary for brand owners to demonstrate their social responsibility toward sustainability. Offering better solutions, service and quality will remain key factors to our business.
Oliver Reynalds is managing director (and award-winning chef) at Sauce Shed, which provides contract packing, contract manufacturing, filling services, e-commerce/fulfilment and logistics services. It specialises at bringing products to market with knowledge and expertise to work with various stages of the development cycle.
How was business in the last 12 months during the pandemic restrictions?
Unlike many businesses we saw an increase in demand, seeing entrepreneur skill sets develop with the continuation of food business pivoting to taking their recipes into jars, bottles and sachets either as meal kits or table sauces, chutneys and so forth.
Describe how the supply chain crisis has affected this sector
Whilst we’ve a great relationship with our supply chain and managed to ringfence certain ingredients, delays in other areas have slowed certain areas down causing delays. Deliveries have taken a few extra days but as many in our sector have been in the same situation, most people have been understanding to the circumstances.
Is the use of sustainable packaging achievable from a practical point of view and are customers willing to pay for it?
Most of our clients prefer glass, it’s not plastic so it’s the obvious and easier alternative for sauces and such. The packaging to protect the glass when shipped can out way this, even when eco-friendly bubble bags are used. We are working on a solution that has the flex of plastic, but the feel of glass.
Have you seen an increase in demand for white label products?
All of the products we manufacture, unless we own the brand or part of it, are private label and the recipes belong to our partners once we’ve developed them for them. We have seen a number of individual food operators or small chain operators looking for white label, but the focus then moves to private label because they will have a unique product exclusive to them.
What’s the strategy for the coming months? Are you planning to break into new markets, invest in kit, warehousing and staff?
We are moving and have invested heavily in new machinery, technology and most importantly into education and training of our team.
Our new facility increases our warehouse space allowing for growth within our fulfilment services, we have a custom small run sachet machine arriving that will open up services for smaller brands to all them to offer meal kits at a competitive price along with a new international division working with three new global partners.
What impact is the trend towards vegan / vegetarian having on your business?
Most of the products we already manufacture for people tend to be within the sector already, but we are assisting our partners in altering recipes such as mayonnaise into vegan versions.
What do you think will be the drivers for the food industry / your company in 2022?
This year we will be focusing on our move to a new facility seven times the current size. Last year we grew 800%, so the driving force for us will be to continue stabilising our operation and looking beyond our current route to markets. It’s going to be an exciting year, not just for the company but for the new products and concepts being worked on.
Trevor Murphy is business development manager at Storefast Solutions. The firm provides product development, compounding, juice processing, blending, and co-packing to the food industry for over 25 years. Based in Kent, its purpose-built food grade facility offers over 100,000sqft bonded warehousing space and is BRC certification to AA level.
How was business in the last 12 months during the pandemic restrictions?
Certainly not without challenges, but we are fortunate to run a diverse business with a varied client portfolio. Revenue has almost doubled over the last year. On trade production has been inconsistent, with output affected by pub and restaurant closures. The ready-to-drink department, and specifically canning, has been running at full capacity, with more people drinking from home. Soft drink production remained steady with the storage business buoyant, partly due to uncertainty around Brexit.
Describe how the supply chain crisis has affected this sector
We have felt some pain. Suppliers have increased costs, added delivery fees and duties, pushed out lead times, and delayed deliveries. Whilst we have some sympathy the situation does not appear to be improving and has had an impact to production planning. We decided to recruit more permanent drivers, which has proved reliable and has offered more flexibility.
What’s the strategy for the coming months? Are you planning to break into new markets, invest in kit, warehousing and staff?
With the fast-paced growth of the business there is a need to make further investment in plant and people. We have recently invested in an aseptic filling line, are awaiting delivery of another automated bag-in-box line and will soon commission a reverse osmosis water system. We are fortunate to have a significant amount of warehousing space.
Is the use of sustainable packaging achievable from a practical point of view and are customers willing to pay for it?
We are certainly seeing more customers requesting sustainable alternatives and, in my experience, they are willing to pay for the right solution.
There is, however, still some way to go with plastics. Whilst our suppliers appear to be making good progress developing recyclable options, they are not imminent. We have seen a trend in moving from plastics to cans, as aluminium is infinitely recyclable.
What impact is the trend towards vegan / vegetarian having on your business?
An upturn in botanical blends, although no great change. Plant-based products are clearly a growth market.
Have you seen an increase in demand for white label products?
Yes, we have seen enquiries increase in enquiries of around 20% against 2020. We lend well to white label services; we offer full development services and do not sell own brand product.
What do you think will be the drivers for the food industry / your company in 2022?
I expect the shortage of skilled labour to continue, leading to more investment in technology. Automation will improve productivity and consistency and provides the opportunity for suppliers to pass savings onto customers.
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