2015 - No. 3
July - Sept 2015
German-Australian Chamber of Industry and Commerce (AHK)
Food & Agriculture
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Japan, Korea and now China, there is a strong need to ensure maintained trade and investment with Germany. Dr Michael Zettinig, the Chamber’s Project Director stationed in Berlin, recently organised a successful trade delegation to Germany headed up by Federal Finance Minister Mathias Cormann and the Chamber’s President, Lucy Hughes Turnbull AO. The delegation is part of the bilateral Advisory Group initiated at last year’s G20 summit. We will share more details and results of the delegation in the next edition of our Business News.
Dear Members Welcome to the latest German-Australian Business News. As always, we intend to keep you informed of all things happening at the Chamber along with our numerous members and partners. This edition focuses on the food and agricultural industry, featuring a range of articles explaining recent technical innovation and market challenges within a crucial, dynamic industry that affects many of our members. Turning to Chamber activities, we recently held our AGM and Conference at Deutsche Bank in Sydney, featuring a number of guest speakers, panellists and our valued board members. Chamber President Lucy Hughes Turnbull was re-elected and both Wolfgang Babeck and Paul Koenig held their positions as Vice-Presidents. Ron Koehler remains board Chairman, and the total number on the board now equals 15, with five new members inducted on the night. We would like to thank everyone who attended, as your collective participation and feedback fuels the success of our events. You can read more about the AGM in the events report that is featured later in this magazine. Fostering further German-Australian collaboration, we were delighted to hold a repeat of the successful Energy Efficiency in Buildings Conference in June, in conjunction with our friends at the New Zealand German Business Association. With over 150 representatives from industries focusing on energy efficiency and green technologies, the conference facilitated discussion about trends, policies and future perspectives on energy efficiency, as well as new networking and business opportunities. The event also saw the participation of a German trade mission, which discussed potential collaboration with companies in Australia and New Zealand. The mission also gave an impressive presentation of its energy-efficient innovations in cooling, heating and lighting. In addition to the topic of renewables and energy, there is continued discussion of the significance of free trade. Considering Australia’s recent free trade agreements with
The Chamber is also developing a white paper to highlight the broad economic benefits of reducing trade and investment barriers with Germany, the largest economy in the European Union. To support this paper, we conducted a survey in June to better understand the hurdles that German companies face in establishing, operating and expanding their presence here in Australia. We distributed this survey to all members. We thank you for your feedback, as it not only empowers us to improve our services for you, but also to incorporate your concerns into the white paper and thus make your voice heard by the German and Australian governments. You might also have noticed that the Chamber recently welcomed a new addition to its Melbourne office. Carina Kofler has taken over the role of Manager Events & Training while Caroline Stapleton is away on maternity leave. Carina has extensive work, study and travel experience in Australia, having completed a Master of Business at Griffith University on the Gold Coast and volunteered at the German-Australian Business Association. Back in Germany she worked for the German Convention Bureau and also for McKinsey & Company in Frankfurt. Please join me in welcoming Carina to the Chamber and wishing Caroline a wonderful time away. In summary, thank you to all who contributed to this edition and we hope that you, our members, enjoy reading it.
Upcoming Events Events range from workshops & seminars to roundtable discussions, receptions to largescale conferences. Some events are open to the public, while others are only accessible for members. Our speakers include top-level industry experts, leading government representatives and inspiring thought leaders.
July 2015 22/07
Christmas in July Place: Sydney
Christmas in July Place: Melbourne
Significant changes in ISO 9001:2915 with DQS Place: Brisbane, Sydney, Melbourne
August 2015 07/08
Breakfast Seminar with Acacia Place: Sydney
September 2015 10/09
Australia-Germany Business Conference Place: Melbourne
3rd Annual Gala Dinner Place: Melbourne
If you are interested in one or more events please contact:
On behalf of the Chamber, I wish you all the very best.
Lars Mehlan Director - Events & Marketing T: (02) 8296 0444 E: [email protected]
Kristian Wolf Executive Director German-Australian Chamber of Industry and Commerce
Melbourne Carina Kofler Manger - Events & Training T: (03) 9027 5618 E: [email protected]
Content Highlights Selected Events Annual General Meeting & Conference 2015 ................................................................................................. page 4 Berlin-Sydney Digital Roundtable ...................................................................................................................... page 5 Mercedes Driving Day ............................................................................................................................................ page 8 German-Australian Innovation Conference & Gala Dinner.......................................................................... page 9
News from GACiC
‘Networks in the Making’, Mining Competence Centre ............................................................................... page 10 Renewable Energy in Australia ............................................................................................................................... page 12 From Mining to Dining Boom, Fine Food 2015 .............................................................................................. page 13
Industry Focus Food & Agriculture
‘German Wine in Australia’, Decante This ....................................................................................................... page 14 ‘David versus two Goliaths’, GACIC ................................................................................................................... page 15 ‘Growth opportunities in Australian agriculture’, Deloitte ......................................................................... page 16 ‘Filet Mignon from a Test tube’, Handelsblatt Global Edition .................................................................... page 17 ‘Pizza - one of the world’s most universally loved foods’, Dr. Oetker ...................................................... page 18 ‘Smart Produts are certified Organic’, RFA & GACIC .................................................................................... page 19 ‘Innovate, Create & Lead’, Fibrisol ..................................................................................................................... page 21 ‘Food Safety, Legality & Quality’, DQS Certifications.................................................................................... page 22 - 23 ‘Hellmann’s ’Best of Breed’ JDA Dispatcher Warehouse Management System’, Hellman ................. page 24 - 25 ‘Flourishing times for the craft beer industry’, BevTec ................................................................................ page 26 ‘A view from abroad’, AHK Taiwan...................................................................................................................... page 28
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Annual General Meeting & Conference 2015 Mid of May, 85 registered members and guests attended one of the main events on the annual calendar of the German-Australian Chamber of Industry and Commerce - its Annual General Meeting and Conference. Kindly hosted by Deutsche Bank, the afternoon kicked off with registration and drinks in the foyer on level 16 with spectacular views of Sydney’s harbour and Eastern Suburbs. The first item on the agenda for the day was the AGM, which gave the Chamber’s Executive President Kristian Wolf and his executive team the opportunity to reflect on the achievements of the last 12 months. Treasurer Christian Holle from PwC also presented the Chamber’s financial data. Subsequently, Lucy Hughes Turnbull was reelected as the Chamber’s President and Paul Koenig and Wolfgang Babeck as Vice-Presidents, whilst BDO maintained their mandate as the Chamber’s auditors. Ron Koehler was confirmed as Chairman of the board, and five new members were elected to the board to raise the total number of board members to 15.
Mr. Adam Boyton
Everyone then convened for a short coffee break, with an array of extremely delicious muffins and brownies. The mood was relaxed and the views through the large floor-toceiling windows over the water and surrounds of the CBD were beautiful. After the break, the Business Outlook and Conference segment of the afternoon began with a reflection on the recent federal budget and its impact on the Australian economy by Adam Boyton, Chief Economist of Deutsche Bank.
His presentation was engaging and detailed, all the while catering to those in the room who might not have been economic experts. Following the conclusion of his presentation, Adam offered to answer questions from the floor. The event then continued with a high-level panel discussion on innovation-drivers in Australia, featuring representatives from industries as diverse as defence, agriculture, automation technologies and urban development.
The event was concluded by Ron Koehler, who invited the guests to an hour of networking over drinks and canapés in the foyer. The German-Australian Chamber of Industry and Commerce is delighted to have had the opportunity to present an afternoon of highprofile speakers and would like to thank Deutsche Bank for its first-class support of the event. The AGM is a truly valuable forum for the Chamber and its members to gather and discuss past events, recent business developments and plans for the future. All attendees were made to feel welcome and we look forward to seeing everyone at next year’s AGM.
Written by Lars Mehlan, GACIC
Ms. Lucy Turnbull AO, Mr. Kristian Wolf, and Mr. Andrew Fletcher
A lively half hour of Q&A followed, before the Hon. Victor Dominello, NSW Minister for Innovation, addressed the audience to share some insight into the government’s visions on the potential application and social and economic benefits of innovation. Mr. Dominello spoke with great enthusiasm about the great promise of new technologies, particularly the growing use of mobile apps as tools for social and business empowerment.
the Hon. Victor Dominello
A word from DQS Certification... “DQS Certification is one of the new members of German-Australian Chamber of Industry and Commerce and unfortunately until AGM 2015, we haven’t had a chance to participate in a lot of events hosted by GACIC. In our opinion Deutsche Bank and GACIC have created and conducted a fantastic conference, with the participation of great variety of talented and charismatic speakers; the topics raised during the plenary session were valid and we appreciated the diversity of the opinions of the participants. We thank GACIC and Mr Kristian Wolf for inviting us to participate in AGM 2015 and are looking forward to the next event hosted by German-Australian Chamber of Industry and Commerce.”
Q2 2015 EVENTS
Berlin-Sydney Digital Roundtable @ MCA On Thursday 7 May, around 70 invited guests of the German-Australian Chamber of Commerce and The Committee for Sydney made their way to the Museum of Contemporary Art in The Rocks, to participate in the first Berlin-Sydney Online Roundtable and discuss the future of these two extraordinary cities. Drinks and canapés were served on arrival, with the foyer proving perfect for easy mingling and networking in the lead-up to the digital roundtable. Once everyone had arrived, the guests made their way into the Museum Theatre where a live video-stream had been set up by sponsoring partner Cisco.
The online forum closed with a 20-minute Q&A session, covering topics ranging from the arts as a key factor to attract people and investment to a city, to the German culture of political bipartisanship regarding longterm visions for infrastructure and urban development. The level of audience engagement was fantastic, as attendees offered their own thoughts about what each city could learn from the other, as well as asking follow-up questions on topics discussed in the room and from Berlin.
Top Tweets #BerSydOnline:
Kathy Jones for event sponsor KJA closed the event with some words of thanks to all involved, before panellists and the audience had the opportunity to network further over drinks and canapés in the Theatre foyer. We would like to thank everyone who attended the event and also the Museum of Contemporary Art for the use of their impressive space and presentation technology.
Words of welcome were offered by The Committee for Sydney CEO Dr Tim Williams, Chamber President and Chair of the Committee for Sydney Lucy Hughes Turnbull AO and Australia’s Ambassador to Germany David Ritchie AO. All pointed out the importance of bilateral exchange and mutual learning. Berlin Senator Cornelia Yzer then introduced the Sydney audience to Berlin as a city and explained why economically it is already one of the most attractive locations not only in Germany but throughout Europe. This notion was emphasised in the following presentation by Ares Kalandides PhD, the main speaker of the afternoon. Kalandides explained Berlin’s continuous evolution from innovative, to creative, to smart over the last few decades, and pointed out how capturing data about “everything” from socio-economic development to preferred modes of transportation has enabled Berlin to manage and drive this change. He elaborated on the German approach of co-determination and the importance of integration of all relevant areas including politics, the business and private sector when dealing with urban development. He also pointed out Berlin’s challenges ahead, particularly in the areas of housing, the integration of tourism and migration and the maintencance of Berlin’s status as an attractive location for new and start-up businesses.
online discussion during both the roundtable and Q&A session. Impressively, Timothy Horton managed to contribute many tweets even while participating as a panellist. Overall, the discussion on Twitter was constant and positive, reflecting the open, collaborative intentions of the digital roundtable itself. Twitter proves to be a powerful tool for information-sharing and awareness, and the Chamber, using its profile @GermanChamberOz, endeavours to connect relevant news and events to as many people as possible, both within and beyond the member network. The Chamber encourages all members and guests at events to join the conversation and contribute their own thoughts.
Feedback for the event has been extremely positive, and the German-Australian Chamber envisages offering further bilateral dialogue between Berlin and Sydney on a regular basis in the future.
Written by Lars Mehlan, GACIC In addition to the discussion in the room and over video-link, further comments and opinions were shared online using Twitter and the #BerSydOnline hashtag. All attendees and panellists were welcome to join the
Follow us on Twitter @GermanChamberOz
Tim subsequently invited the high-profile panel, including Jeff Connolly (CEO of Siemens Australia), Tim Horton (State Registrar at NSW Architects Registration Board), Roy Green (Dean of UTS Business School), and Rod Simpson (Associate Professor and Director Urban Design, University of Sydney) to comment on Kalandides’s statements from their own areas of expertise.
Young Executive Forum - MELB & SYD The Young Executive Forum (YEF) offers a platform for young executives and entrepreneurs intended to foster the exchange of experiences and ideas. Our two YEF events on 3 June that were held in Melbourne and Sydney, achieved just that:
Melbourne: Trends in the Australian Recruiting Landscape
Sydney: International Finance and Investment
The Melbourne event was held at the Hophaus Bier Bar & Grill where attendees could not only listen to our guest speakers’ interesting presentation, but also enjoyed some networking with German-style fingerfood and drinks.
In Sydney, the YEF event featured an informative panel discussion about International Finance & Investment. Speakers included Dan Taylor (Partner / Corporate Finance at BDO), Ian Pollari (Partner and National Head of Banking at KPMG Australia) and Werner Kemper (Director at Germany Trade & Invest). The discussion was moderated by Vishant Narayan, Managing Director of Real I.S. and Committee Member of YEF.
Florian Dehne, Head of Strategy for SEEK’s domestic employment business and founder and chairman of Deutsche Schule Melbourne, described the change in recruitment and online platforms due to the growth of social media and emerging new business models. The audience was introduced to SEEK’s perspective on key trends and about what to expect as employees and hirers in the future.
Topics discussed included the comparison of the banking environments in Australia and Germany, the cost of capital (and the conditions of accessing it) in different countries and different perspectives on investment conditions in Australia. The audience had the opportunity to ask questions and the rest of the evening was spent networking and socialising over some drinks.
Join us! To register, please contact our events department. You will then be added to our YEF contact list and receive all YEF event invitations.
Business Lunch with Mr Uwe Beckmeyer, State Secretary of the Federal Ministry of Economics and Energy
After a busy week of travelling around Australia to liaise with important bilateral business partners and political representatives, members of the German business and political delegation concluded their visit with a luncheon at the Sydney office of PwC, Premium Partner of the German Australian Chamber of Commerce. The delegation was led by Mr Uwe Beckmeyer, State Secretary of the Federal Ministry of Economics and Energy and coordinator for maritime affairs. At PwC they had the opportunity to meet approximately 25 invited guests from the Chamber network, including those from relevant industries such as marine, manufacturing and services. PwC Partner Christian Holle welcomed the
guests before the Chamber’s Executive Director, Kristian Wolf, who formally opened the event, stressing the success of the delegation and the intention of the Chamber to facilitate and support similar initiatives in the future. The welcome was followed by Philip Stanford, CEO of Thyssen Krupp Marine Systems Australia, who provided an update on the negotiations regarding the submarine tender by the Australian government, and the determination of “Germany Inc.”, i.e. the combined expertise of German engineering companies in Australia, to win the bid. After an entrée and the main course, Mr Beckmeyer took to the stage to elaborate
on the state of bilateral relations between Australia and Germany. He emphasised that there is potential to extend the collaboration to areas beyond what is currently happening. In particular, he made reference to Australia’s declining share of manufacturing as part of its GDP, and the opportunities that arise from sustainable and future–oriented industries to take its place. A short Q&A gave the audience the opportunity to ask the State Secretary a range of questions, before the event was formally concluded by Kristian Wolf, thanking all participants and wishing them a Happy Easter. For more photos head to flickr.com/photos/ahk-australia/
Ships. Systems. Solutions. Worldwide.
ThyssenKrupp Marine Systems
Mercedes Driving Day On Friday 8 May the German-Australian Chamber, together with Mercedes-Benz, invited their Premium Partners & Executive Members to the Mercedes-Benz Driving Experience 2015 at the Sandown Racecourse in Melbourne. After an informative introduction everyone was excited to get into the cars and put the pedal to the metal. The training included a series of dynamic handling exercises that have been specifically developed to test the drivers and show the technology and handling capabilities of the Mercedes-Benz range. Thanks to the experienced professional driving instructors, participants gained valuable knowledge and numerous practical tips on how to master sudden manoeuvres and how to make the right decision in a split second. We would like to thank our Premium Partner Mercedes-Benz for hosting such an actionpacked and memorable afternoon! Written by Caroline Stapelton, GACIC
Twilight Forum: Halfway through a Decade of Change A Mid Decade Review: Looking Back, Looking Forward On 29 April 2015, the German-Australian Chamber of Industry and Commerce, BDO and DibbsBarker invited the Sydney Business Community to the first Twilight Forum for 2015 titled “Halfway through a Decade of Change. A Mid-Decade Review: Looking Back, Looking Forward”. Andres Reith, Partner at BDO, formally opened the event before Mark McCrindle, social researcher and demographer, took over and gave a fascinating presentation, providing insights into the decade from 2010 to 2020 and how already in 2015 enormous changes can be seen. As in many other countries, Australian society has not only changed from a demographic point. With significant technological innovations such as the introduction of portable digital devices and social media platforms, Australian society and workplace have experienced rapid changes that influence how we work, communicate, interact and do business.
audience. Kristian Wolf, Executive Director of the Chamber, then closed the official part of the event with a few words of thanks. Following the presentation the audience had the opportunity to network and enjoy delicious canapés, kindly provided by BDO.
The German-Australian Chamber of Industry and Commerce, BDO and DibbsBarker would like to thank Mark McCrindle for the inspiring presentation and all guests for their attendance and contributions to the discussion. Written by Lars Mehlan, GACIC
The presentation by Mark was followed by an engaging discussion and Q&A with the
Q2 2015 EVENTS
Following the success of previous years, the German-Australian Chamber of Industry and Commerce will host the Australia Germany Business Conference 2015 “Innovation & Collaboration – Drivers for Future Growth” on 10 September in Melbourne. Please join us for our flagship event 2015, where top-level speakers and key industry players will showcase new ideas, business models & processes and give valuable insights into the following topics: »» »» »» »» »»
Advanced manufacturing & industry 4.0 Case studies & strategies of “Innovation Champions” Submarines: the impact of large defence projects on innovation and ecomomic growth How to drive entrepreneurship and innovation in a challenging business environment Open innovation & collaboration with academia
Our Top Speakers & Panelists Grant Anderson ANCA Pty Ltd
Scott Moffat Pilz Australia
Doron Ben-Meir The University of Melbourne
Christoph Petzoldt Simon-Kucher & Partners
Jeff Connolly Siemens Australia
Penny Sackett Strategic Advisor and former Chief Scientist for Australia
Dr Eckhard Franz Federal Ministry for Economic Affairs and Energy (BMWi Germany)
Gavin Smith Robert Bosch (Australia)
Peter Freedman RØDE Microphones
Andrew Stevens Advanced Manufacturing Growth Centre
Paul Bruno Pepperl+Fuchs
Dr John White (invited) Thyssen Krupp Marine Systems (TKMS)
Tobias Marchand Bayer Australia and New Zealand
… and many more!
Following the Australia Germany Business Conference, the German-Australian Chamber of Industry and Commerce will host an exclusive Gala Dinner at the Sofitel Melbourne on Collins. Please join us for this social highlight of the year which features a prominent guest speaker, a three course dinner and entertainment.
proudly supported by:
Networks in the Making
News from the Australian Competence Centre for Mining & Mineral Resources Through only a theoretical concept less than half a year ago, the Australian Competence Centre for Mining & Mineral Resources is now taking shape. As part of the German government’s strategy to secure the country’s supply of mineral resources in the future, the first Competence Centres were set up in Canada and Chile more than three years ago. In the meantime, with South Africa, Australia and Peru as no. 3, 4 and 5, respectively, and Brazil being a hot contender to join the club later this year, a true global mining and resource network is in the making.
ing from DIHK and BMWi. The meeting, which was open for partners from industry and government concluded with a clear message. The intention to formally set up a global network that provides a platform for communication, exchange and information for German industry and stakeholders. Details of the new network including type of communication platform and channels are currently being discussed by the group. A variety of tasks have been defined and associated deadlines are set with the aim of formally launching the global network later this year.
The Global Network
The Mining & Resource Competence Centres are strategically based in the world’s largest resource countries producing more than 50% of global mineral output in total. Our partners in Germany, DERA, VDMA, FAB, GTAI and others are crucial elements, entry points and multipliers in the new global network that is being built. The global network will support and bring together German suppliers of equipment, technology and services to the mining and resources sectors (so-called METS companies), commodity traders and other stakeholders.
The Local Network
In early June, all Competence Centre managers travelled the world for a first global get-together in Essen with colleagues join-
Aside from the international connections under development, our local network in Australia continues to materialise as well. In each country, this local network is the second cornerstone of a future world-wide German mining and resources net. The network comprises local German companies, including representatives of German companies or products, national government and industry groups and other strategic local partners. Each country with a Mining Competence Centre has its unique market characteristics and mechanisms. Therefore, while all Centres are set up in a way that follows the same principles, each country needs to de-
Joining Forces - Join the German Mining Network
Australia’s sheer size and distances, paired with a general global trend of consolidation and concentration in both suppliers and customers markets, requires particularly small to medium-sized players to form alliances and exploit their respective synergies. Strategic alliances do more than just lead to substantial cost savings that enable companies to enter a market that would be too expensive to tackle alone. More importantly, such alliances or joint ventures can potentially open doors that may remain closed for individuals. Not only will the Australian network be a place of contact, information, communication and exchange for local companies in the mining and resources sector, it will be also matchmaker, information pool and source of local know-how, all of which are important elements for potential market entrants from overseas. The Australian Competence Centre for Mining & Mineral Resources will be formally launched during the upcoming AIMEX exhibition in Sydney in September 2015, as will our Australian network. This year, more than 20 German exhibitors will showcase their products and services to the Australian mining world under the roof of a German pavilion. They will be accompanied by VDMA and the Australian Competence Centre for Mining & Mineral Resources.
Latest News from the Australian METS Sector A recent survey by an Australian group revealed that about 10 per cent of all METS companies in Australia are owned by German enterprises or individuals, either directly or indirectly. Despite the excessive talk about the end of the 10-year-long mining super- cycle, the Australian METS sector concluded 2014 with a total turnover of $90 billion. The next few years will see a contraction of the sector with decreasing turnovers. Some of the players will disappear, or will be up for sale. Nevertheless, there is still plenty of room for market entrants who can present innovative, smart solutions particularly in the fields of energy-efficiency, costefficiency and productivity improvement. A successful market entry will come down to the right strategy, focus, flexibility and commitment to a realistic timeframe and expenses.
Stock photo © Photon-Photos
fine and develop instruments that support market entry, foster exchange and build trust tailored to local market conditions.
Written by Dr Bernd Länger, GACIC
How new technologies, shifting consumer behaviour & uncertain policy affect Renewable Energy in Australia Photo: www.piqs.de
This year, Australia’s urban future has attracted notice in New South Wales and Victoria. Both state governments have come forward with plans to invest billions of dollars in urban transformation. Our first Berlin-Sydney Digital Roundtable on 7 May featured an interactive panel discussion between Sydney and Berlin on the topics of smart cities, the creation of a start-up culture and the development of digital and creative industries. During Sydney’s Vivid festival of ideas in May, Lucy Hughes Turnbull AO, Chair of The Committee for Sydney, asked the audience to consider the benefits of disruption and how urban regeneration is a key part of sustaining the competitive advantage of Australia’s services sector. Sustainable urban development can begin on a residential and commercial scale. In June 2015, the German-Australian Chamber in Sydney hosted the fifth German trade delegation for energy efficiency and renewable energy in buildings. Many Australian clean tech experts welcomed the opportunity to exchange ideas with the visiting German company directors and engineers to discuss the European technology and policy landscape for renewables and energy efficiency in view of the fact that Australia’s energy markets are in transition. In 2013, Australia’s Clean Energy Council predicted a 3,000 MW market for energy storage in Australia by 2030. US-based electric car manufacturer Tesla has since entered the Australian market in late 2014 and has recently announced a collaboration
with inverter manufacturer Fronius for the launch of their Tesla Powerwall home battery in late 2015, starting in Germany, before eventually going on sale in Australia. Although a collaboration with Australian fuel stations hasn’t been announced yet, Tesla told EcoGeneration Magazine in February that Supercharger stations will be set up along the east coast of Australia, connecting Sydney, Canberra and Melbourne by the end of 2015; with plans to extend the network to Brisbane in 2016. The renewable energy sector, on the other hand, has had a difficult year in 2014. In the recently published Clean Energy Australia Report 2014, the Clean Energy Council reported a decrease of 88 per cent in renewable energy investment compared to the year 2013. Due to a dry year for rainfall and lower hydro energy generation, the share of renewable power generation fell from 14.76 per cent in 2013 to 13.47 per cent in 2014. Only two new large-scale solar power plants were commissioned in 2014 – Royalla in ACT and Mildura in VIC. Three wind farms completed construction – Snowtown II in SA, Gullen Range in NSW and Mount Mercer in VIC. Australia generates around 16,000 gigawatt-hours from renewable energy under the RET; the goal under the revised RET being 33,000 gigawatt-hours by 2020. According to the Clean Energy Council, the commercial solar sector saw the strongest growth of any form of renewable energy in 2014. More than 15,000 businesses have now installed a solar system, the most
prominent example being IKEA retail stores along Australia’s eastern coast. Meanwhile, the number of new residential solar systems dropped by 8.5 per cent, amounting to 187,000 new installations in 2014 and 1.4 million currently installed in total across Australia. On a positive note, South Australia was making headlines in 2014. Around 40 per cent of the state’s electricity came from renewable energy - only Tasmania scored higher (95 per cent), followed by Western Australia with 13 per cent in third place.
Written by Anja Eulitz, GACIC
Important upcoming events for the Australian energy sector: NEM Future Forum 2015: 24 – 26 June 2015, Park Royal Darling Harbour, Sydney Australian Clean Energy Summit (Clean Energy Council): 15 - 16 July 2015, Hilton Sydney Eastern Australia’s Energy Markets Outlook 2015 Conference: 15 – 18 September 2015, InterContinental Hotel Sydney National Energy Efficiency Conference (Energy Efficiency Council): 17 - 18 November 2015, Pullman Melbourne on the Park, Melbourne
From Mining to Dining Boom Fine Food 2015 Over the past few years, Australia’s food Manufacturing and -processing sector has experienced significant growth. The demand for safe, sustainable and healthy foods, supported by a transparent food chain and high levels of regulatory supervision, especially from Asia, will further fuel this development. The importance of the food packaging industries was highlighted at this year’s AUSPACK in Melbourne, the major packaging trade fair in Australia. 385 exhibitors representing more than 1,200 brands celebrated the 30th birthday of the fair. The industry will play a key role, not only for local but also for international companies, due to the fact that the automotive industry in Australia will be winding down production within the next few years and further developments in the
mining sector are uncertain. Investment in the food packaging industry is on the rise, often supported by local government. Many successful German brands were on display represented either by their Australian subsidiary or a local distributor. Nevertheless, Australia will continue to import the majority of food supplies from abroad: in 2014, goods valued at roughly 14 billion AUD were imported, up by more than 40% in comparison to 2010. Products from Germany are seen as very desirable and of superior standard, however with currently only 340 Mill. AUD Germany ranks at 12th place of all import countries.
Written by Birgit Tegethoff, GACIC
Facts about Fine Food Australia
Fine Food Australia is Australia’s leading trade exhibition for the retail, food service and hospitality industries. Alternating between Sydney and Melbourne each year, Fine Food Australia celebrated its 31st anniversary in Sydney in 2015.
NUMBER OF ATTENDEES 2014
Trade Delegation Rhineland-Palatinate - Fine Food 18. - 25. September There are great opportunities available for German manufacturers of food, beverages and food-ingredients, as well as cookingware and kitchen equipment. We are very pleased to announce that the German state of Rhineland-Palatinate will lead a trade delegation to this year’s Fine Food Sydney trade fair in September. Up to 10 representatives of German companies from the food, processing and packaging industry will travel to Australia. The aim of the trip is to gather facts about the market and regulations and the German-Australian Chamber of Industry and Commerce will organise one-on-one business-matching meetings for two days along with site/project visits. If you are interested in meeting any of the trade delegation participants please contact our representative: Sara Franke Senior Consultant T: (02) 8296 0434 E: [email protected]
OVERSEAS BUYERS FROM OVER 47 COUNTRUES
OF EXHIBITION SPACE
CeBIT Australia 2015 CeBIT Australia, the country’s leading technology and digital innovation showcase, welcomed 400 exhibitors, including 88 start-up companies, in May 2015. Approximately 25,000 visitors registered for the event at Sydney Olympic Park, matching audience numbers from the previous year. Two of Australia’s most prominent political leaders, Prime Minister Tony Abbott and Communications Minister Malcolm Turnbull, presented keynotes as part of the exhibition’s official CeBIT Conference opening and eGovernment Conference. Lord Mayor of Sydney, Clover Moore, was also present to promote Sydney as Australia’s leading technology city, currently counting 1100 ICT businesses.
For the first time, CeMAT Australia was introduced as a co-located event. CeMAT in Hanover, Germany, is the world’s leading intralogistics and materials-handling showcase, welcoming 53,000 visitors from 65 countries in March 2015. CeMAT Australia will be given an independent platform in July 2016 when the trade fair moves to Melbourne. The German-Australian Chamber, together with the German Consulate General and Hannover Fairs Australia, invited members to join an exclusive guided tour of the CeBIT and CeMAT show floors. BITKOM, the German Association for Information Technology, Telecommunications and New Media, introduced 10 exhibitors at this year’s Made In Germany Pavilion.
According to the Australian Financial Review, the digital economy already generates five per cent of Australia’s gross domestic product (A$ 80 billion) and currently employs five per cent of Australia’s labour force (600,000 professionals). Moreover, The Australian quotes a leading UK fintech expert in saying that Sydney has the potential to follow London as one of the world’s leading fintech clusters, due to Australia’s technology-driven consumer market and the continent’s proximity to Asia.
Written by Anja Eulitz, GACIC
AHK on demand - supporting the German Mittelstand in the land Down Under A steadily growing number of Germany’s small and medium-sized companies have realised that the far-flung Australian market holds great potential for the expansion of their international business activities. The German-Australian Chamber’s ‘AHK on demand’ service provides new market entrants with an ideal solution for the establishment of a local presence without having to set up a subsidiary or hiring employees, so that business activities can be developed stepby-step.
More than just a business address. There are numerous advantages of ‘AHK on demand’. First companies have the possibility to use the existing office infrastructure of the German Chamber, allowing clients to keep the costs of their Australian venture manageable and flexible. One can also request the assignment of a bilingual member of our full-time consulting staff as the primary point of contact for you and your cus-
tomers, facilitating access to the vast network of members and other local contacts in the fields of business, politics and research. Using their own company name, not only will clients receive an Australian business address, telephone number, email-address and domain name, but ‘AHK on demand’ also encompasses a comprehensive package of services that range from back-office solutions such as customer support, orderprocessing, pay-rolling, bookkeeping and travel-planning. Further services include marketing and sales activities such as collecting market intelligence, lead-generation, organisation of a trade-fair presence and the creation of marketing material and a web presence tailored to the Australian market.
Already doing business in Australia? AHK on demand is there when required.
German Wine in Australia
Australia currently represents around 0.5% of all wine exported from Germany, which represents around 2.0 Million Euros in export earnings making Australia currently one of the smallest export markets for German wines. However we are starting significant change to this situation with year of year growth increasing. In 2014 total wine exports increased by nearly 20% placing Australia amongst the fastest growing markets outside of the US, Russia, Singapore and Canada. White wine continues to dominate both the consumers and importers preferences and purchases accounting for 50.9%, red wine accounting for 37.8 % and Sparkling, sekt and sweeter styled wines accounting for a further 11.5 %. The Australian market for German wines remains heavily skewed towards Riesling, however the emergence of Spatburgunder, Grauburgunder and Weissburgunder as real drinking alternatives to Riesling is starting to emerge.
We have been fortunate to have a number of Germany’s finest wine makers spend time in Australia over the past 12 months including Karl H Johner, Hanspeter Ziereisen and Joachim Heger as their first hand experience has allowed them to better appreciate the importance of making their wines more accessible, readily available and price appropriate. We are starting to see a number of leading young female German wine makers including Lisa Bunn, Juliane Eller and Tine Plaffmann take the lead form their more established wine making colleagues as they begin to explore the Australian market for the first time. These wine makers bring a new approach and feel to German wines and wine making and are creating a stronger link to the younger & emerging wine lovers both in Germany & here in Australia. The ready availability and distribution of German wines in Australia still remains the single greatest issue facing exporters & importers alike. The greatest selection & opportunity to experience German wines in
It is not just newcomers who benefit from the Chamber’s ‘AHK on demand’ services. German companies already operating in Australia also have the possibility to use our services flexibly and as required, (e.g. when it comes to running a marketing campaign or organising client or company events). Another option is the outsourcing of certain administrative tasks, so that local staff can concentrate fully on developing and growing their business in Australia. Please contact us for more information about AHK on demand and to discuss how we can support you to expand your business in Australia. Andreas Kent Giessler Consultant Market Entry T.: (02) 8296 0443 E.: [email protected]
Australia is still largely restricted to a limited range of fine dining restaurants such as Jonahs Whale Beach, Mr. Wong, ARIA. The wine lists of these distinguished restaurants will normally have a very strong representation of both large and small German producers including, JJ Prumm, Whitman, Heger, Johner, Ziereisen, Huber, Muller, Stodden & Faust. Their lists are very Riesling focused and there are only a handful of small offerings of Silvaner, Weissburgunder, and Grauburgunder & Chardonnay being made available. Retail offerings of German wines are very limited and tend to reflect both a very limited selection of wine by price point and variety. The German retail wine offering is very limited reflecting a very small number of larger scaled German wine producers such as Dr Loosen, Donhoff & Schloss Vollards. Australia for most German wine makers is still considered “ a nice to have market” as opposed to a strategically important market, but this is fast changing as their domestic market opportunities become increasingly more limited. Australia is set to become an import wine export partner for Germany and its wine makers over the next few years. Written by Leigh W Dryden, Decante This1Degreextra Pty Ltd
Food & Agriculture
David versus two Goliaths
How a German discounter breaks through an Aussie Duopoly ing share price. In May 2015, Metcashshares experienced a record low since 2001. The company continued its survival plans by a second round of job-cuttings within two months, with both stages combined stipulating a redundancy of more than 800 jobs. Most of Metcash’s losses are attributable to German grocery discounter Aldi, who found its way to prove assumptions and beliefs wrong. In Australia, Aldi currently has a 10 per cent market share of a $90 billion market, with increasing growth rates for over five years that by far exceed the industry standard. The company has 360 retail stores along the east coast with new openings planned for the remaining states, showcasing a successful market entry story for a German company. However, under consideration of the history of the Australian grocery retail landscape, Aldi’s expansion seems to be even more triumphant. Australia has the most concentrated grocery market in the developed world with Coles and Woolworths holding over 70 per cent of the entire industry. In comparison, Tesco and Asda only account for 45 per cent of the UK market, whereas Wal-Mart and Kroger Co constitute 33 per cent of the market. This competitive duopoly was triggered in 2007 when Coles Supermarkets was acquired by Wesfarmers and underwent a major overhaul initiated by new management. Fundamental changes within the supply chain and store management increased product quality of fresh food, reduced end-consumer prices and made Coles Supermarkets competitive to rival Woolworths. With growth rates close to 5 per cent over the last two years, Coles is outperforming Woolworths lately and slowly closing the market share gap between both. Currently, Coles is estimated to possess 30 per cent of market share in contrast to Woolworths’ 40 per cent. To fight against Cole’s grand strides, Woolworths itself took action by restructuring its company and implement cost cutting programmes, which were not well received by all employees and resulted in resignations of senior executives. With its efforts, Woolworths aimed at cutting costs and reinvesting the savings of more than $500 million into reducing prices and increase customer shopping experiences in order to regain lost market share. Due to the Top Two’s dominance of the market, experts believed that there was no room for other retail chains. Exhibit A is former number three Metcash, which struggled to compete with the two retail giants resulting in decreasing market shares and plummet-
Aldi’s history began with Karl Albrecht, the father of Aldi’s founding brothers Karl and Theo, starting his own business with his wife: a traditional “Tante-Emma-Laden”, a corner shop that offered essential and staple goods. After the Second World War, the two brothers expanded their father’s business and called their retail chain Aldi, short for ‘Albrecht Discount’. In order to compete with strong players in the market, the low-price strategy formed the roots of the business concept and still constitutes the corporate mantra. Its overwhelming appreciation by consumers led to a national expansion and today counts over 4,200 retail stores in Germany.
Why should the Aldi concept only work in the German market? Since 1968, Aldi has opened stores in neighbouring countries, and over the years started operations in all Western European nearby Eastern European nations. Apart from European markets, Aldi also successfully introduced its concept to the United States in 1976 that soon expanded into a business generating more than €6.5 billion by 1135 retail stores across the states.
the expansion plans with $400 - $450 million for Western Australia and $200 - $300 million for South Australia to open up two new distribution centres and around 130 retail stores. Utilising the same concept from the German strategy, Aldi stores differ significantly from the traditional Coles and Woolworths retail format in average store size (700 m² vs. 5,000 m²), number of offered products (1000 vs. 30000) and private-label penetration (95 per cent vs. 25 per cent). The difference in outlet size gives Aldi the strategic advantage to occupy smaller suburban and high-street locations. Its marketing mix also shaped Aldi’s customer base that consists of 30 per cent low-income, 34.4 per cent middle-income and 35.6 per cent high-income shoppers. These figures highlight that compared to its main competitors, Aldi focuses on the low to medium-income segment. The development shows however, that there is an income shift: the high-income segment has grown since 2011 by more than 6 per cent. This might be one of the reasons why Aldi recently introduced a new retail style that was applied to four test locations in Australia. The new “designer” format aims to attract the medium to high-income shoppers with in-store bakeries, a wider assortment of fresh produce, more branded goods as well as improved shelf appearance and lighting. Aldi’s growth rate in 2014 was three times as high as Coles’s and Woolworths’s (13 per cent vs. 4.6 per cent and 4.7 per cent respectively) and expansion into the remaining Australian states poses the question what the near future of the grocery retail market looks like. With shifting consumer preferences and available disposable income, it remains to be seen if Aldi can continue its success story. At the same time, Coles and Woolworths are adjusting their company strategies to counteract Aldi’s successful moves into the Australian market. Will David be able to defeat the two Goliaths? Written by Seul-Gi Lee, GACIC
Aldi’s humble beginning in the Australian market started in 2001 with two single stores in New South Wales, which gradually expanded into a portfolio of over 370 stores across New South Wales, Victoria and Queensland. In order to expand its national reach, Aldi also announced major investments in new distribution centres and outlet stores in Western Australia and South Australia: a total of $700 million is included in
pictures: iStock © jack191 | sources: www.news.com.au/finance/business/nothing-surprising-about-the-rise-of-aldi/story-fnkgdftz-1227371370672 | www.afr.com/personal-finance/shares/investor-conundrum-aswoolworths-coles-and-aldi-battle-it-out-20150522-gh4ed1 | www.theaustralian.com.au/business/companies/metcash-shares-fall-further-as-analysts-cut-earnings/story-fn91v9q3-1227385257342 | austorganic.com/ wp-content/uploads/2014/11/AO_Report_2014_web.pdf
Food & Agriculture
Growth opportunities in Australian agriculture Agribusiness was recently nominated by Deloitte in Building the Lucky Country 3 (BLTC#3) as one of the ‘fantastic five’ industry sectors which has the potential to take over from mining as key drivers of growth opportunities for the Australian economy over time. Of all the sectors in the economy, agribusiness was the sector playing most to Australia’s competitive advantages and producing what the world increasingly wants.
Optimism in Australian agribusiness raises a further question: where, within the sector with the greatest growth potential, do the best growth opportunities lie? By employing the same framework used in BLTC#3 and tailoring for agricultural sub sectors, Deloitte Access Economics has identified the ‘fantastic five’ of Australian agriculture as beef, lamb, aquaculture, dairy and oilseeds. The key drivers of global food and fibre demand (i.e. position on the vertical axis) include increasing global population, increasing wealth of developing economies (resulting in demand for protein), and increasing ethical, health, food safety and supply security considerations. These demand drivers mean different things to the growth prospects Australian agriculture sectors.
rising incomes and demand increase from population growth. This is because fish have relatively high input conversion ratios (compared to other animal proteins) meaning a relatively efficient source of protein. Aquaculture is a viable, sustainable alternative to decreasing wild fish stocks. Furthermore, the widely publicised health benefits of fish appeal to increasingly health conscious consumers, particularly in developed countries. The land and ocean area available for aquaculture in Australia is extensive.Oilseeds expected strong global demand is linked to its demand for both food products (from higher incomes) and biofuels (as alternative to fossil fuels). Temperate oilseeds are also seen as a more sustainable alternative to tropical oils such as palm oil (which is responsible for a tropical deforestation). Consumer health preferences are also likely to shift demand to oilseeds over less healthy animal-based oils or tropical oils. Australia’s key advantages of large land area for broad acre cropping and biosecurity status are highly relevant to oilseeds. As promising as the opportunities are for Australian agriculture, growth is not guaranteed. Australia will need to do a lot to exploit opportunities. This will involve strategically increasing demand, at the same time as further improving Australia’s competitive advantages in those areas that can be influenced most cost effectively. Written by the Deloitte Team
The key competitive advantage of Australia (horizontal axis) is its large area of arable land, low land-use conflicts, high biosecurity status, relative ease of doing business, technological readiness, high education levels and its close proximity to export markets. Trade barriers (such as the removal of tariffs under free trade agreements) are also contributing to Australia’s competitiveness. Australia’s key disadvantages are its regulatory burden, variable rainfall, low soil fertility, aged workforce and high labour costs. As with the demand drivers, these advantages and disadvantages have very different implications for different parts of Australian agriculture. The key reasons for the optimistic positioning of the three livestock sectors of beef, lamb and dairy include the high demand for protein as a result of higher incomes particularly in Asia, the premium quality attributes of Australian meat and dairy, and Australia’s reputation for safety and security of supply. In addition, the growing concern for animal welfare should favour Australian livestock overall (compared to other countries) which is more comprised of free-range animals. Aquaculture’s strong global opportunity positioning is also due to high demand for protein from
Deloitte Access Economics is one of Australia’s most recognised economics advisory practices with around 150 economics professionals around Australia. The Deloitte Access Economics’ Agribusiness Economics and Policy team helps clients to influence the economic policy debate, contribute to policy developments, and plan for the future. Our advice is designed to influence key decision makers at Government and regulatory levels, to assist with strategic planning and to contribute to improved outcomes. The team has expertise across; industry outlooks and foresighting, policy analysis and advisory, socio-economic impact assessments, economic value and contribution studies, Computable General Equilibrium (CGE) modelling, spatial (GIS) analysis, strategy and action plan development, cost benefit analysis, cost recovery and funding reviews, market analysis and supply chain analysis. Our team covers the key agribusiness sectors of; cotton, sugar, grains, beef and lamb, dairy, wool, horticulture and fisheries, as well as related areas of food manufacturing and processing, rural water and irrigation, agricultural chemicals, biosecurity and agricultural research. www.germany.org.au
Food & Agriculture INDUSTRY FOCUS
Handelsblatt Global Edition: NESTLÉ INTERVIEW
Filet Mignon from a Test Tube The head of Nestlé Germany, Gerhard Berssenbrügge, spoke to Handelsblatt about the food of the future, including test-tube meat and personalized nutrition. BY CHRISTOPH KAPALSCHINSKI
So will Nestlé be offering more food with extra functionality? Yes, and we will be working together with others to do that. Just like people network, firms cooperate with one another. Nutritionists and supplier companies will play a more intensive role. Source: Nestle Would you like your steak medium or well-done?
Switzerland’s Nestlé, the world’s largest foodstuffs producer, recently launched a forum in Germany looking at the future of food. One of the most interesting findings was that Germans have an appetite for meat grown in the laboratory. Gerhard Berssenbrügge, chairman of Nestlé Germany since 2007, discussed that and more in an interview at the firm’s Frankfurt offices. Handelsblatt: Mr. Berssenbrügge, do you actually order meat over the Internet that was created in laboratories? Gerhard Berssenbrügge: No, it isn’t the year 2030 yet. The question in our study for the future was whether Germans could imagine alternative sources of protein. And they told us in 15 years the subject of in-vitro meat will be much further along than it is now. It will be as normal for us as sushi is today. Consumers have fewer reservations than we think. Diets change within the context of societal changes. Anything is possible – particularly given today’s pace. Is your industry really a trendsetter? Certainly not much that has changed with your Maggi instant food products in recent decades. It isn’t always the products that change, but rather attitudes. Diet is increasingly becoming a way of life. In-vitro meat, for example, is motivated by the will to conserve limited resources and to consume more thoughtfully. Which attitudes will dominate in the future? Consumers will have more power – and they will be conscious of this power. People know that good food is a life-prolonging factor. That is why they will choose their products more consciously in the future according to the benefits they bring to their health, wellbeing or performance.
Will you need your own smartphone apps for that? Yes, definitely. Networking is the prerequisite for offering an individual and personalized diet. People think it is likely that in 2030 there will be devices that, for example, examine blood and relay the data via the Internet. The result will be that we will shop more selectively. Will that be like sports nutrition for athletes today – only applied to everyday life? Absolutely. You will be able to get food specifically tailored for your weight, size, and age. Interestingly enough, we are already much further along in individualizing food for animals. A golden retriever is fed something different than a poodle. And the dog’s food is different at the age of two, five or ten years old. This differentiation hasn’t been established yet with people – but it will come. How do your company’s products differ from those of the pharmaceutical industry? Our products are fundamentally not available by prescription only. They have to taste good, that will always be a driving factor. We have internal targets for this. Every new product must taste better to 60 percent of the testers than what the competition offers. Recently we also added nutritional criteria. Many of the things you have named are research intensive. Will some of the consumer goods’ marketing budget have to be shifted to research and development? That would certainly be an advantage. Nestlé is the only company in the industry that runs primary research at a research institute. That is meant to give us a major advantage. But marketing will also change, away from classic TV commercials. It is conceivable that we will soon have our own communications platforms that people contribute clips to, like on Youtube.
How is your credibility doing ? Hardly a company is criticized as much as Nestlé, whether it’s over water in developing countries or sugar in Germany. There are no generally negative assumptions about us. We see this in surveys that place us as one of the most trustworthy brands. Some NGOs mistrust us because we are a globally operating company with a complex structure. We have been working together intensively for some years with NGOs to provide more transparency. Nestlé is committed to the idea of creating shared value. I am sure, on this basis, we will tackle existing problems constructively and solve them together. Is the new consumer power a risk or an opportunity for the industry? Much more of an opportunity. When people know a lot and are interested in nutrition, it is easy to introduce new products. Will you be delving more into e-commerce? No, we only have a limited product range and people want to shop where they get everything in one place. We are only testing it with our Nestlé Marketplace to be able to think ahead a bit. We want to know how an online shop needs to work, and to get to know the consumers and their feelings better. What does the growing online competition mean for the bricksand- mortar food business? Online will deal with basic supply, in the stores the experience will be the focus in the future. It is conceivable that supermarkets will have a kitchen attached, where neighbors can cook together with an app from Nestlé. Do you have a nutritionist yourself? Yes, my wife. The interview was conducted in Frankfurt by Christoph Kapalschinski. To contact him: [email protected]
Food & Agriculture
Pizza - one of the world’s most universally loved foods Ristorante now has the highest loyalty and highest weight of purchase in the category as once consumers have trialled, they become firm advocates of frozen pizza, finding a role for it again in their busy lives.
Dr. Oetker launched into the Australian pizza market in 2011 with its leading international frozen pizza brand Ristorante. At the time, frozen pizza in Australia was underdeveloped, with low household penetration, and consumer perceptions of low quality. The issue was not with pizza itself - as one of the world’s most universal foods, pizza is much loved by Australians, who spend as much as $2.2 billion*** on pizza in the restaurant, Takeaway and Home Delivery sectors – the latter enjoying over double the household penetration of frozen pizza.
Today the brand is worth $37m* and is growing +14%* year on year. It is the number 1 thin & crispy pizza brand in Australia. To establish this success, the business deployed a tried and tested method – raising awareness of this new offer, through heavyweight advertising, primarily on television, combined with heavyweight sampling activity across the country. This ensured that consumers had the opportunity for risk free trial, and hot slices of pizza were served in stores, food shows and large-scale events. Once tried, Ristorante has the highest conversion to loyalty of any pizza brand, underpinning its ongoing success.
Despite this success operational challenges remain – in particular the import embargo on beef and chicken and limited pork imports. This restricts Dr Oetker’s ability to leverage its global supply chain in frozen pizza. Delivering a successful frozen pizza market in Australia and New Zealand requires significant investment in local manufacturing. This puts great focus on improving the local manufacturing capability in Australia with a view to positioning Australia as global supply centre. Opportunity for expansion and growth in the business remains strong – with category penetration at only 46%**, and awareness of the Dr. Oetker brand still in it’s infancy, there is huge potential to unlock. Educating consumers to drive category reappraisal is key. The future of frozen pizza looks bright in Australia, with Dr. Oetker at the forefront of driving category growth, with consumer understanding, innovation and communication investment at the heart of it’s strategy. Dr. Oetker is focused on building a long term successful business in Australia.
The real challenge was to convince consumers that frozen pizza could offer a quality pizza experience at home combined with the great value and convenience that is inherent in the frozen category, and as seen in other overseas markets. Consumers in Australia are sceptical of the quality and freshness of frozen foods – this is particularly heightened in pizza where many consumers experienced the products as children and remember the thicker, sparsely topped pizzas of old. The category had not kept up with the quality and innovation of other pizza formats like Takeaway, with crust options, new toppings, sizes and formats and therefore consumer perception became more entrenched and the “it’s just for kids” attitude became a reality. This is why the introduction of Dr. Oetker Ristorante was so significant – consumers had not experienced this level of quality in frozen pizza before and it challenged these perceptions.
Today Papa Giuseppi’s has a 6%* share of the category and is its fastest growing brand, re-establishing it’s roots with Australian families. Again, Dr. Oetker strategy is consistent, investment in raising brand awareness, highlighting the high quality and choice now available in frozen pizza. On Papa Giuseppi’s this is achieved with innovative promotions and brand partnerships that complement the Australian heritage of the brand.
Written by Dr. Oetker
During this launch phase and in establishing a manufacturing base in Australia, the business acquired the Papa Giuseppi’s frozen pizza brand – a heritage brand synonymous with family frozen pizza in Australia. Dr. Oetker quickly drew on its global pizza expertise to re-invigorate both the product range and brand positioning. Launching its signature range – Bakehouse Crust, a deep crust pizza with traditional toppings. This range perfectly complements Ristorante and allows the business to focus and target different consumer groups, growing it’s market share incrementally.
About Dr. Oetker Dr. Oetker is a privately owned, family run, global business with headquarters in Bielefeld Germany where the brand has 96% awareness. The brand is present in over 40 countries worldwide and signifies the highest quality, outstanding flavour and guaranteed success. The food division’s core offer includes traditional home baking products, decorations, ready to eat desserts, and frozen pizza and snacks. The Australian business was established in 2011 and entered the market with the Dr. Oetker Ristorante frozen pizza brand.
*Nielsen Scan MAT 19/4/2015 , **Nielsen Homescan MAT 19/4/2015, ***Euromonitor International 2014
Food & Agriculture
Smart Products are ‘Certified Organic” Australian food products enjoy a good reputation worldwide due to their high safety and quarantine regulations. However, even imported foodstuff does not have to be submitted to any government agency before it is supplied. Despite compliance requirements with relevant standards of the Food Standards Code, which covers aspects such as ingredient safety, labelling and claims, the product quality of imported food is not tested and regulated by the government or third parties.
the demand for organic grain is expected to outstrip the supply of local production, causing an inadvertent chain reaction. Since the shortage affects downstream industries that depend on the availability of organic grain, such as organic poultry, pig and dairy production. Ultimately, the end consumer would bear the consequences and could face significant price increases.
As long as 50 per cent of the food production and/or processing is conducted on Australian grounds, foodstuff can be labelled as “Made in Australia from local and imported ingredients”. However, according to the Department of Industry and Science, the label is meaningless since most industries are not able to process food below the 50 per cent threshold. It is perhaps not surprising that customers search for alternatives where the labelling and the ingredients are transparent. Although organic products only constitute less than one per cent of the food industry’s $130 billion revenue, the segment is Australia’s third-fastest growing industry.
The thought of engaging with potentially thousands of people representing hundreds of firms involved in our targeted markets was very inspiring, so we arranged to run our own booth and take our message to the masses. As an aside, I must also mention that there were many interesting workshops and seminars held in adjoining meeting halls.
A recent incident highlights the risks and concerns that an increasing share of imported food carries. In February 2015, a national food scandal ocurred when government departments detected frozen berries that were contaminated with hepatitis A and caused 28 identified cases of outbreaks. The frozen berries were processed and packed in China. Due to the rather loose and vague labelling regulations, food can actually be labelled as “Made in Australia” even if it does not contain any Australian ingredients (Sydney Morning Herald, 2015).
Naturally Good & Organics Product Expo Event Report 2015
One of the standout presentations was by Dr Andrew Monk also discussing Australia’s rapidly growing organic market. His main points were that to succeed in Australia’s $1.7 billion dollar annual organic market suppliers need to not just be ‘organic’ but be ‘certified organic’ as consumers are wary of advertising claims and require proof of organic status. Organic farming is growing at 15% annually and is Australia’s 3rd fastest growing industry. As demand is continually outstripping supply, organic dairy and organic beef are the fastest growing food sectors in the country. However, organic wine production and organic cosmetics and skincare are not far behind! Getting your own product to be ‘Certified Organic’ may be the smartest thing you have ever done.
In order to alleviate the problem, some industry players turn away from local suppliers to look for import opportunities, in order to keep their production running. Although higher prices could incentivise farmers to move into organic production, they also negatively affect export opportunities, which – glancing at the demand of Asian nations - constitute a high growth potential. Written by Seul-Gi Lee, GACIC
I am mentioning all of this to encourage readers to get involved with Trade Expos whenever you get the chance and particularly the ones on our own doorstep. What comes to mind for us is the upcoming Fine Food Australia (trade only) Expo to be held at Sydney Showground, Sydney Olympic Park over four days, Sunday 20th to Wednesday 23rd September, 2015. What’s more, this food fair will be attended by a visiting German delegation specifically travelling for this event. So join in the fun, build your team and connect with more of your customers, not just online, but in the real world at a trade expo near you. Written by Robert Forbes, RFA Regulatory Affairs
The steep increase in the demand often results in a supply shortage. In particular picture: stockfresh © scyther5 | sources: www.abc.net.au/7.30/content/2015/s4181225.htm, www.foodworldnews.com/articles/21286/20150610/new-australian-food-label-regulations-proposed-after-frozen-berries-areconnected-to-hepatitis-a-outbreak.htm | www.abc.net.au/news/2015-05-20/organic-grain-supply-outstripping-demand-leading-prices-higher/6484086 | http://austorganic.com/wp-content/uploads/2014/11/AO_Report_2014_web.pdf
Food & Agriculture
Innovate, Create & Lead Fibrisol Service Australia Pty Ltd (FSA), a Melbourne based functional ingredient and flavour company is part of the ICL – ‘Food Specialities’ Division, with its Head office in Ladenburg, Germany. The success of the business is driven by its philosophy of Innovate, Create & Lead.
Noodle Line - Fibrisol
FSA was established in 1994, to not only service the needs of Australian food manufacturers, but to build long term relationships with food processors and manufacturers in the Asia-Pacific region. From humble beginnings, the business grew rapidly across several new categories (such as Dairy, Cereals and Marinades), through a clear vision, well defined strategy and the efforts of a committed team. The service levels are not just limited to ingredient supply, but the business offers an integrated business solution for new product development, trouble shooting and has earned the reputation of a ‘preferred supplier’. In 2005, FSA moved into a purpose built new facility in Heatherton, (SE Melbourne) to cope with the growing demands of the business and to comply with the necessary food safety and quality standards. This provided the business many opportunities to deal with a wide range of customers, manufacturers and retailers in the entire Asia-Pacific region at a professional level. The stateof-the-art manufacturing facility has the highest standard for allergen-control, cross contamination avoidance program, routine operator training, comprehensive OH&SE programs to enable producing quality product, each time every time. Australia has very stringent regulations to ensure food safety in a manufacturing environment and in keeping with the requirement, FSA has the highest level of certifications such as SQF (Comprehensive Food Safety and Quality Management System), WQA (Woolworths Quality Assurance) and is an Approved Coles Supplier. In addition to that, FSA also has specific certifications like Organic, Halal etc to meet market requirements. Adherence to these certifications, has a huge impact on all facets of the business – R&D, Procurement, Supply Chain & Logistics, Production and Quality.
In December 2014, FSA refurbished a site in Somerville and established the Regional Product Development and Application Centre. The Centre serves as the one-stop-shop for product development activities in the ‘Meat/ Poultry/ Seafood’, ‘Dairy’ (cheese, processed cheese, yogurts, etc.), ‘Cereals’ (bakery, noodles of all types, steamed buns, pasta) and ‘Savoury’ (sauces, marinades, dips etc) segments to cater to a wide range of food processors. The Centre’s primary focus is to support the Sales team, by working closely with the customers. The Application Centre facilitates proactive and targeted product development/trouble shooting activities for the entire region in all product segments, led by specialists with extensive experience and knowledge in their respective fields. The Application Centre also delivers tailor made training courses to business partners, regional colleagues and customers needing theory and hands-on training in the development of new food products, with new ingredients and flavours. This unique, multifaceted Centre is well equipped to conduct pilot plant scale trials in all segments and is designed to solve challenges in the food industry, making FSA a competent partner for any business.
trained panellists. Commercial discussions follow the completion of a successful trial and results in another satisfied customer. Application Specialists also travel frequently within the Region visiting customers to provide: • technical support on the proper application of Fibrisol products and • assistance on a range of food manufacturing related matters. The distance between Germany and Australia has not prevented FSA from staying abreast with technical developments in Ladenburg. Technical teams regularly exchange market/ customer intelligence &/or engage in advanced technical training, either in person or through modern use of technology. Significant growth plans are envisaged for FSA, as well as for Food Specialities on a global scale, and appropriate investments have been made in people and capital, to achieve the growth targets. With greater focus on the new segments of Dairy, Cereal and Savoury, there is a large untapped potential for growth making the future very exciting and demanding. Over the course of the years FSA has established itself as a leading, trusted and reliable supplier to the food industry.
Quality Assurance Laboratory Fibrisol
A working day in the life of an Application Specialist would typically start with meeting an existing or potential customer and understanding their technical challenges. These could range from new product development to resolving textural issues on existing products or enhancing product stability. Other challenges often addressed are, shelf life extensions, organoleptic improvements, increase process efficiencies, improve nutritional quality and cost reductions, in any of the segments. The Specialist would ‘problem solve’ either from the existing suite of FSA products to improve, correct or create solutions or innovate to provide new solutions.
Whenever a customer consumes a food such as meat products, processed cheese, yoghurt, noodles of any kind, muffins or cakes in the Asia Pacific region purchased in Supermarkets, Delis or in the food-service sector there is a fair chance that the food contains a product from FSA providing either texture, stability or flavour - or a combination of these attributes.
The recommendations are trialled along with the customer in the Pilot Plant that simulates a manufacturing environment and the trial food is sensory evaluated by a team of
Written by Lakshmi Iyer, Fibrisol Service Australia
Enjoy food – it’s a vital part of life and Fibrisol is the provider of ‘The Vital Ingredient’. For more information, please visit www.fibrisol.com.au
Food & Agriculture
Food Safety, Legality and Quality eral kilometres of the location where they were produced. These days, products are regularly shipped from and to every continent in the world. It is therefore imperative that production, processing, bacterial control, packaging, labelling, chilling, freezing, storing and shipping must accordingly be adjusted to these new challenges. In many cases, the transition from local supply to economically lucrative world-wide supply of food and food ingredients was accomplished without major set backs. However, every so often we read about disastrous cases of food poisoning, product recalls, litigation and substantial loss of markets. © fotolia
Why Safe Food is good for Business?
of the food and drink indispensable to survival.”
Food Safety – seems to be the least political of all food issues. Everyone, regardless of their political influences wants safe food. Customers do not want to consume unsafe food and run the risk of getting sick. Unsafe food is not good for business. Recalling the unsafe food is very expensive and it always attracts negative publicity. The cost of regaining lost customers due to bad publicity can be substantial and often beyond recovery. Most people have been led to believe that products wouldn’t be on store shelves and offered for sale to customers if they weren’t safe for intended use. Increasingly, however, they’re finding out that this isn’t always true. Regulatory agencies around the world, governments, retailers, importers and wholesalers recall thousands of products each year because products are unsafe for the intended use. Australia is regarded as a clean food producer due to our strict AQIS quarantine rules and to the fact we generally have a disease free environment. However, this nature’s given fortune may not serve us in the future unless we practice a strict discipline relating to food safety.
He goes on:” Because pure food is necessary to survival, rendering most persons extraordinarily dependent for their health, safety and very lives on the care and skill of food providers, the rules that govern liability for selling defective food and drink have long stood apart from those concerning other types of products.”
Legal and Regulatory Frameworks Quoting David G. Owen, Manufacturing Defects, 53 S.L.C. Rev 851, (2002): “From early times, people have relied on the skill and care of others to catch, grow, gather, preserve, prepare and provide much
Most countries have regulators, government departments, industry groups, consumer protection agencies lobby groups, all involved in some way in food safety. Their responsibilities often overlaps and in some cases clearly contradicts the very intent of food safety. Political implications of applying stricter codes, acts, rules and standards are unknown. It is vital for every economy and every food producing/exporting country to accept the enormity and extraordinary importance of the food supply chain. Nowadays, countries produce and export food around the world. Reaching these lucrative markets and delivering food products around the world, is the aim of every country. However, this new development presents new challenges for producers in regard to assurance of food safety, legality and quality throughout each step of the supply chain. In the past, most food products did not have to travel very far and did not require special processing, storage and transportation solutions. Products were consumed within sev-
There is evidence that most regulatory provisions and government controls have failed to prevent these disasters and damage control was the only thing available to those affected by sale of unsafe food products. EU, UK, USA, Canada, Australia, New Zealand, and China and few other countries have most stringently regulated food producing markets, especially when it comes to importing the food products. While national food safety regulators and government agencies are often making significant contribution to the development of food safety awareness, unfortunately they are convincingly ineffective in the prevention of delivery of unsafe food to international markets. Regulations are aimed at protecting entry of unsafe products into markets and simultaneously designed to guide their food industry manufacturing practices to enforce hygiene and prevent unwanted substances and contaminants getting into food products. Unfortunately so far, the regulations and food safety standards have not delivered the expected and desired outcomes. The world need regulations, food safety legislation and codes of practice but these have not in the past and most likely will not secure production of safe food in the future.
So what is needed? Education, understanding and profound knowledge of food safety risks together with implementation of preventative food safety management systems are essential.
Food & Agriculture
GFSI The Global Food Safety Initiative (GFSI) is an industry- driven initiative providing leadership and guidance on global adoption of food safety management systems by the supply chain participants and their customers. They recognise various schemes operated by owners (SO) of recognised Standards including IFS, Global G.A.P., SQF, FSSC 22000, BRC, GRMS and several others. It is worth mentioning few schemes in more detail.
The HACCP concept has its origins in space exploration by NASA dating back to 1959 and stands for “Hazard Analysis Critical Control Point”. In 1971, the HACCP system was published and documented in United States. In 1985, The National Academy of Science recommended the use of the system and this system became FAO/WHO Codex Alimentarius (Food and Agriculture Organisation/World Health Organisation. The Codex should be applied to the entire food production/preparation process from raw materials, storage of raw materials, processing, work in progress, inspection and testing, packaging, warehousing and distribution to customers. Food businesses are required to document their system and compliance with the HACCP Principles and must be audited on regular basis. Implementation of the HACCP Codex in not foolproof but goes a long way in reducing potential for food contamination.
ISO 22000 and FSSC 22000 In 2002, ISO published ISO 15161 Guidelines defining ways in which to integrate ISO 9001 and HACCP. While this was a step in the right direction, ISO 9001 and HACCP have different aims. HACCP is there to ensure food safety, whereas ISO 9001 system focuses on ensuring quality. There is ample evidence that effective integration of both ISO 9001 and HACCP is better for safe food outcomes than implementation of either ISO 9001 or HACCP alone.
The ISO 22000 comprises of HACCP principles and ISO 9001 management system requirements. This Standard meets the objectives of Codex and HACCP Principles, enables harmonisation of voluntary International Standards and it provides auditable and certifiable Standard. The future of these Standards is dependent on prevailing philosophies by the global food supply chain participants and their customers. Companies
that adopt ISO 22000 or FSSC 22000 and receive a third party certification will be in better position to deliver safe food to markets than those that do not.
SQF The SQF Program is owned by the Food Marketing Institute in USA. Like other industry sector standards, the SQF program originated from a request of its retail members to introduce a food safety standard. The Marketing Institute acquired the rights for SQF Program which enables retailers to use a single program and at the same time facilitate achievement of efficiencies by food product suppliers. The SQF is also based on Codex Alimentarius HACCP Guidelines and offers food industry a way of managing quality of their products. There are two codes; SQF 1000 Code designed for primary producers and SQF 2000 Code designed for food manufacturers and distributors. The SQF Program is well designed set of management system and HACCP requirements which when audited by third party certification bodies provides food chain businesses with recognition essential for doing business with large retail chains.
BRC Similar to SQF, BRC Standard for food safety was developed on the initiatives of major retailers in the UK, including Marks and Spencer, Sainsbury, Safeway, Tesco, Waitrose and others. Under the terms of the UK legislation, retailers have an obligation to take all reasonable precautions and exercise all due diligence to ensure prevention of un-safe food products being supplied to customers.
The Global Standard for Food Safety provides rigour, systems thinking and requirements for full compliance. Companies that subscribe to full compliance with the BRC Standard have much better chance of continually delivering safe, legal and quality food to their customers. This kind of approach to food safety is designed to produce superior results in regard to food safety and prevention of contamination outcomes than any other informal approach adopted in the past.
IFS Similar to SQF and BRC, IFS Standard for food safety was developed on the initiatives of major retailers in Europe, including Metro, Groupe Carrefour, REWE Group, COOP, ALDI and others. Experience, changes in legislation and a revision of GFSI (Global Food Safety Initiative) led to continued improvement of this Standard. Under the terms
of the legislation, retailers have an obligation to take all reasonable precautions and exercise all due diligence to ensure prevention of unsafe food products being supplied their customers.
Conclusion While there is a proliferation of various programs and schemes it is worth mentioning that organisations that adopt any one of these programs are better-off than those who do not. By far the most frequently adopted program is HACCP but it is not always the best fit. FSSC 22000, BRC, SQF and IFS are more stringent and more difficult and costly to implement and maintain. Essentially, it is a decision and a choice that organisations need to make based on their risk assessment of not providing safe, legal and quality food to customers. Is it a wise investment or is it worth taking a risk? Well, from recent history littered by many cases of prohibitively costly recalls when things go wrong the cost of remedial action could be astronomical and could severely damage any business.
If you are in food business, you will need an effective Food Safety Management System.
About the Author Dr Chris Brendon has been consulting to food industry for over 30 years. In that time he worked with ready-to-eat high risk products providers, airline catering, hotels and food and beverage manufacturing businesses. He is also qualified third party food safety auditor with DQS-UL for HACCP, ISO 22000, FSSC 22000 and BRC Food.
About DQS DQS Holding GmbH located in Frankfurt is the headquarters of DQS UL Group and as such controls the international business development of currently more than 80 offices in over 60 countries. DQS is among the top 10 of the largest internationally active assessment and certification service providers for management systems including food safety standards. If you would like to learn more about food safety or certification programs, please contact us at [email protected]
or visit our website www.dqs-ul.com.au
Food & Agriculture
Hellmann’s ‘Best of Breed’ JDA Dispatcher Warehouse Management System in Australia eCommerce and 3rd party logistics.
Hellmann can be forgiven for using poetic licence when they say, “We’re leading the way with JDA!” - because that’s precisely what they’re doing. Hellmann Australia’s Contract Logistics business has seen substantial growth over the years, with over 50,000 pallets under Hellmann’s management across six sites nationally. Further expansions are already planned for later this year, including a 10,000 SQM multi-user facility in Laverton North, Melbourne, and another 3,500 SQM extension in Brisbane. Hellmann is already fully ISO Certified, and is also expects to be HACCP Certified before the start of the third quarter - having already successfully completed the first phase of requirements. Hellmann has chosen to implement JDA’s Warehouse Management System (WMS), with the objective of achieving high levels of inventory and despatch accuracy, whilst increasing process efficiency. Hellmann Director, Alan Marazita, cited the example, “For one of our major clients (a leading supplier of a range of ‘wellness’ products to the Australian market), we handle their distribution to most of the Australian major retailers, such as ALDI, GHPL, Woolworths and Target, who each have stringent guidelines on how stock is picked, identified and distributed for processing at their distribution centres, via a process commonly known as ‘scan packing’”. Major retailers in Australia use Electronic Data Interchange (EDI) as a preferred method of electronically connecting suppliers to their customers, to ensure the reliable ex-
change of business documents. Purchase orders, acknowledgements and Advanced Shipment Notices (ASN) are interfaced to and from the retailers, and to the JDA WMS, via an EDI translator software package called EDI Plus, and then to Hellmann’s dedicated middleware tool TIBCO.
“Our operations are well supported by our new WMS, a global ‘best of breed’ system that simplifies complex RF scanner-driven processes, handles retailer-specific SSCC labelling requirements, and ensures EDI/ interface compliance with the retailers. It is our expectation that Hellmann will be completely on-board with the new system by the end of the year. We have developed an advanced ‘carrier selection and lead-time matrix’ with timeslot booking, which seamlessly supports our national distribution product, where we deliver both palletised and unpalletised goods to National Grocery Distribution Centres, pharmacy wholesalers, and direct to retail client locations, and all to agreed DIFOT measurements,” states Jacques Roux, General Manager – Hellmann Contract Logistics. The initial challenge was to accommodate the numerous retailer requirements within the JDA WMS, using zero customisations, whilst increasing efficiency and productivity (in comparison to the existing operation), and obviate the need for operators to remember product mixing rules. Non-adherence to such can result in financial penalties. Hellmann understands this and is already a preferred partner to the major retailers for
JDA utilises a unique methodology to process a retailer’s purchase order. A single purchase order, destined for a single Distribution Centre, could potentially have SKU line items for over one hundred of the particular retailer’s stores. EDI Plus, in conjunction with TIBCO, groups SKU lines by store, and creates individual orders within the JDA WMS. The individual orders retain the original purchase order number, as well as a WMS assigned ASN number, and that is unique to the particular purchase order. The discrete orders can be allocated against stock, and grouped as bulk picks to a ‘pick to store staging area’. This prevents the same storage locations from being re-visited repeatedly and needlessly, to pick store orders for a particular SKU. Individual orders can then be scan packed into containers from the bulk-picked inventory by one or more operators. Jacques further explains that, “The process of picking (scan packing) is tightly controlled via pre-defined rules that, together with the JDA Warehouse-driven volumetric container cubing, suggests the required number of cartons - taking into consideration product volume, weight, batch, Expiry and SKU mixing criteria, as set forth by retailers. With this process, our solution operators are no longer required to make assumptions regarding placement of incorrect batch, expiry or SKU combinations in a given carton, as the RF picking process mandates the scanning of unique system-generated carton-specific identifiers. Therefore, this flags any violation of retailer-defined picking logic. The additional validations (in the form of pick location ID, SKU and container ID RF barcode scanning) ensure further pick accuracy. As part of enforcing mixing rules, the WMS also allocates stock, based on batch or expiry date, or other stipulated stock rotation algorithms. As a means of providing further control over stock rotation, it is possible to define shelf life at not only SKU level, but also at end customer level (i.e. store level). Some of the product handled on behalf of the customer is kept under temperaturecontrolled conditions and, therefore, requires picking and handling within specific areas of the warehouse. This can also be time sensitive. Our WMS is able to route product through the warehouse, in order to adhere to the temperature control guide-
Food & Agriculture
lines, and also to provide pick-by and shipby date windows, for orders to meet specific timeline criteria. In order to achieve the latter, the WMS configurable rule application functionality (known as merge rules) is extensively used, to integrate an extensive postcode and delivery lead time matrix. Dinesh Fernando, Contract Logistics Systems Consultant explained, “Merge rules are just one of the many configurable aspects of our WMS, enabling manipulation of inbound and outbound data, as well as allowing for basic customisation of RF process flows without having to resort to expensive and lengthy code customisation, in response to varying and individual client requirements. Handling a particular client can require utilisation of almost every, configurable functionality of the system. Some examples include the need for ‘Ship by Date’ and pick method selection (using merge rules), Carrier and Service level selection (using carrier selection rules), and triggering of SSCC labels at appropriate points within the RF flow.” As part of the picking process, the JDA Warehouse Management System generates SSCC labels for each carton or pallet picked, as stipulated by the retailer. A clever reporting tool is used for this purpose, and this is tightly integrated with the Warehouse Management System. The feature-rich tool allows rapid creation of not only customer and carrier-specific identification and despatch labels, but also any custom reports that clients would like to utilise. All of this provides real-time visibility of the status of all discrete orders that constitute a purchase order. Once all picks for the pur-
chase order have been completed, the system enables the triggering of an ASN interface back to the host. Functionality is also available to ship a single purchase order via multiple trailers, when required, and the associated Advanced Shipment Notices will be triggered for each shipment. It is anticipated that the greater visibility, created by the program, will enable operators to respond to delays and issues quickly and effectively, thereby making the investigation and resolution of issues simpler. In addition, the solution provides detailed performance statistics (in the form of a dashboards and KPIs) that enable managers to track staff productivity, and transmit resulting labour cost benefits to the customer.
In order to quantify the efficiency gains, all activities related to the client’s operation is tracked via the Activity Based Billing module that is tightly integrated with the JDA WMS. The number of tasks associated in relation to fulfilling an order can, therefore, be quantified and subsequently costed, thus providing complete visibility to the client.” Proudly at the forefront of driving forth with the latest technology solutions available in their industry, Hellmann Worldwide Logistics (a privately-owned logistics supplychain company, established in 1871, in Osnabruck, Germany) is currently in its fourth generation of ownership, spearheaded by two cousins, Jost and Klaus Hellmann, who are supported by more than 19,000 employees, operating from some 443 offices in over 157 countries. Hellmann globally sees their integration of the JDA Warehouse Distribution System as a pathway that is shining brightly, with distinctive benefits to both their clients, and to their own company productivity. Alan Marazita, together with the other three Australian Directors, is incredibly proud of the Australian Hellmann team of some two hundred employees, and the lead they are taking in implementing the JDA System, nationally. “We’ve invested in the program for the betterment of all, and see Hellmann’s innovative approach to keeping up with the times, and technology, as firm proof of our company’s mandate to continuously show the world that we are always ‘Thinking Ahead - Moving Forward’.”
Written by Jacques Roux, Hellmann Worldwide Logistics
Food & Agriculture
Flourishing times for the craft beer industry On average, every Australian consumes 12.2 litres of pure alcohol per year, ranking Australia on a global comparison higher than Germany with roughly 11.8 litres per capita. In fact, it is estimated that every Australian drinks up to one bathtub of alcohol annually. Must be a small bath tub (12.2 litres.) However, alcohol consumption in Australia is gradually declining which is mostly attributable to Australia’s ageing population, greater health awareness, increasing regulation and taxation and above all shifting consumption behaviour. Although beer still relatively accounts for almost half of consumed alcohol, beer consumption has dropped significantly and in fact has fallen by more than 15% over the past decade. In general, a premiumisation within the demand for consumer goods has set in, which follows the philosophy “quality over quantity”. This trend also affected beer consumption: the demand for traditional full-strength and mass-market beers like Victoria Bitter and XXXX has shifted to craft beer and premium foreign-label beers. This in turn affected the local beer manufacturing industry: while in 1998, only 29 breweries were active in Australia, 246 breweries were registered in 2014 with an estimated 30 new breweries to open annually. Contrary to the general beer consumption decline, craft beer consumption exhibits a tremendous growth rate of over 25% per annum and is currently estimated to generate around $ 160 million every year, an equivalent of almost 4% market share of the total beer market. With the increasing number of craft breweries starting operations, the demand for brewing equipment and instruments is also on the rise. Since the local manufacturing industry keeps shrinking, most of the brewing equipment is sourced from international manufacturers with Germany leading the way. However, due to the strict budget restraints resulting from limited funds for small business and high operating costs, product quality has not been a
high priority when purchasing equipment. Although larger national breweries rely on procuring German-made equipment. Norbert Stampfer - who represents three leading German manufacturers of brewing and bottling equipment in Australia through his business BevTech - acknowledges that the usage of German equipment was almost non-existent before he took up operations. In order to stay competitive, small breweries that already set up their business realize that they need to upgrade their existing equipment. Production efficiency is key: reduction of manual labour, raw material usage and increased product quality and consistency are essential for players in order to keep profits and demands up. With the increasing demand for craft beer and numbers of craft and micro-breweries, the outlook for German brewing equipment in Australia is promising. Written by BevTec
About Bevtec BevTech was established in 2010 by Norbert Stampfer and his wife Bev, supplying spare parts for German made packaging equipment. His passion for good beer and enjoyment working for smaller breweries, made him shift his focus more and more to Australia’s emerging Craft Beer Industry. Due to an apparent lack of good quality smaller output packaging equipment, in 2012 BevTech took on the agency for Leibinger bottle fillers and Renner labelling machines. Due to an increasing demand for more sophisticated and automated brew houses, in 2014 BevTech took on the agency for renowned German brew house manufacturer BrauKon. BevTech can supply turnkey solutions from brewing to bottling and packing, tailored for Australian Craft Brewers. They also offer smart and inexpensive solutions for manual packaging operations. Their services include, planning, line layouts, installation and commissioning.
picture: stockfresh © artjazz
Food & Agriculture
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A view from abroad Articles from the global network of German chambers
Taiwan - an attractive market for German food
ingredients to Taiwanese producers. It should be noted that some products are subject to restrictions. It is currently not allowed to import meat products from Germany, dairy products however can be imported without problems. Attention always needs to be paid to labelling. The packaging of food products to be sold in Taiwan needs to be clearly marked with traditional Chinese characters. The following information has to be indicated: Product name, country of origin, all ingredients and their weight or proportion, all additives, expiration date, name, address and telephone number of the manufacturer, and for imported products the name of the local importer. This Chinese labelling is usually done in Taiwan. Furthermore there is a market for German companies supplying industry equipment, either for upgrading or modernizing existing production and labelling systems.
Food and drink play an important role in Taiwanese culture. Compared to other East Asian countries, Taiwanese people spend quite a big amount of their relatively high disposable income on food. According to the International Monetary Fund (IMF), Taiwan’s GDP per capita based on Purchasing Power Parity (PPP) is going to increase to USD 45.000 in 2015, exceeding Japan or Korea. Taiwanese people prefer light and healthy high quality food. Nevertheless, despite the relatively high purchasing power, the road to success in the Taiwanese food market is not always smooth. Because the food industry makes up 30% of the whole retail business, competition in this market is very high. Retailers and producers try to win new customers by innovation, improving quality as well as importing new foreign products. Especially due to certain food scandals in the past, food safety has become an important topic in Taiwan. Foreign products usually profit from a better reputation. Although the population of Taiwan is only slightly increasing, the food industry is solidly growing. According to an outlook by PriceWaterhouseCoopers, “growth in spending in Taiwan will be lower than in Hong Kong, but will still comfortably outstrip Japan at 3.3% per year over the next five years. Total expenditure will amount to USD 90 billion by 2018.”
Increasing sales cannot only be attributed to local consumption but also to an increase in tourists from Asia. 9.9 million tourists visited Taiwan in 2014, 90% of which coming from other Asian countries. Favourite souvenirs are local delicacies such as pineapple cake. In Taiwan the population density is very high, with approximately 23.5 million people living on 35.980 square kilometers, meaning there are 649 Taiwanese living on a square kilometer. Due to the high population density and the limited agricultural land, there is not much space for cultivation. Since local products currently on meet one third of the market´s needs, Taiwan has to import a lot of food products. Imported food products are usually sold in hypermarkets, supermarkets and convenience stores where Taiwanese people mainly buy their daily needed goods. Little by little, traditional fresh and dry markets are losing their significance. Food imports range from grains to meat, fish, dairy products and other animal food products. In 2014 Taiwan imported food products worth approximately USD 116 million from Germany, up 13% from 2013, whereas imports from the USA, the market leader, summed up to USD 3.4 billion. Therefore, sales of German products could be increased considerably. German companies either sell directly to end customers, or supply
Written by AHK Taiwan
About AHK Taiwan The German Trade Office Taipei (GTO) was established in 1981 to promote economic relations between Taiwan and Germany. The GTO is the first point of contact in Taiwan for German companies, providing information on Taiwan and Germany and arranging seminars, networking events and symposia. DEinternational Taiwan Ltd., the service unit of the GTO, organises business delegations and market survey trips, represents German trade fair companies and offers bilateral market entry support as well as recruiting, training, office-in-office and other value-added services. www.taiwan.ahk.de [email protected]
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The VDI Freundeskreis Australien is the Australian chapter of one of Europe’s largest technical and scientific associations - VDI The Association of German Engineers. As such we represent and support the interests of VDI members in Australia. Of the more than 150,000 total membership, ca 100 members live down under.
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Main activities are aimed at expanding a collaborative group of professional engineers and natural scientists. We promote knowledge transfer and sharing ideas through meetings, seminars, factory visits, social media. Represented in Melbourne/Victoria and Sydney/New South Wales, the Freundeskreis has a learned society role with connections to industry, engineering institutions, consulates, German schools. Our network comprises experts in various fields, who look forward to hearing about and assist with both planned and existing ventures. On a regular basis our members meet with friends and guests to discuss technical, occupational, political and other topics. Relationships are further fostered at events of affiliated organisations. Students, graduates and experienced professionals alike are invited to become a part of the VDI community.
International corporations intending to establish a strategic presence in Australia require specialist accounting and administration services.
Katja Mossner Email: [email protected]
Level 6, 8 Spring St Sydney 2000 Ph: +61-2-8296 0446 Fax: +61-2-8296 0411
If you are interested to discuss the options please contact: Katja Mossner Online Marketing Manager (02) 8296 0446 [email protected]
OFFICE MELBOURNE German-Australian Chamber of Industry and Commerce International Chamber House Level 5, 121 Exhibition Street Melbourne VIC 3000 PRINT SOS Print & Media Group Pty Ltd Picture Credit Cover: Stock photo © p-e-t-e Stockfresh © Sandralise
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