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Kerry sees R&D lift in plant upgrade
Corporate March 24, 2018 01:00
By KWANCHAI RUNGFAPAISARN
THE NATION
KERRY, a major provider of taste and nutrition solutions for the food and beverage industry, yesterday announced the opening of its expanded regional development and application centre in Samut Prakan province.
The centre, in Bangpoo, has also been designated as the “first centre of excellence for meat in Asia”, the company said.
Its opening is part of a larger series of upgrades to Kerry’s Bangpoo facility that is designed to increase Kerry’s local innovation pipeline as well as its research and application capabilities. Started in 2002, the facility employs about 200 people.
The facility, covering more than 8,500 square metres and equipped with the latest technologies, will be used by Kerry to work with local customers on all stages of their product development – from ideation to application and manufacturing – for a range of categories including meat, snacks, bakery, dairy and beverages.
The dedicated meat centre, including what the company calls best-in-class taste and functional technologies, will allow Kerry to co-develop signature meat profiles based on different protein types and help its customers to keep pace with the technically challenging and fast-changing meat markets in the Asia Pacific, Middle East and Africa (APMEA) region. With in-house application, sensory and culinary meat experts, the centre is well positioned to develop commercially viable and innovative products at unrivalled speed to the market, the company said.
John Savage, president and chief executive of Kerry APMEA, said that Kerry started as a private dairy company in southwest Ireland before becoming a dairy co-operative in 1974. The company is now regarded as a global leader in taste and nutrition solutions for the food and beverage industry, with customers around the world. The company posted 6.4 billion euros (Bt246.4 billion) in global sales last year and employs about 24,000 people.
“Thailand is an interesting market both for the local market and the very strong export market, including to Europe, Japan and other parts of the world,” he said. “The country has a strong food service market place, which will grow to Bt1 trillion by 2020, and a modern retail network with more than 13,000 convenience stores throughout the country.”
Savage said that another upgrade to Kerry’s regional development and application centre provides new facilities for food and beverage brands to develop authentic, savoury tastes and flavours. Drawing on Kerry’s expertise and market-leading position in cooking methods such as smoke and grill, the fully equipped application lab includes the latest Clean Smoke technology, for food and beverage brands to experiment with using smoke condensate to add a signature taste and smoke profile to meat, vegetables, dessert and even beverages, he said.
The additional down packing and blending lines not only double the centre’s production capacity but also provide food service customers with greater flexibility and efficiency in how their food products are packed.
“The latest centre of excellence for the region is what we believe will lead to an acceleration of innovation and speed to market for our customers. [Yesterday], it is a significant milestone for our Thai business as we take another step in our continued growth in APMEA regions (Asia Pacific, the Middle East, and Africa),” said Savage.
He added that the APMEA region is considered by Kerry as comprising its strategic markets, due to the strong population growth.
“The world’s population is projected to increase by 2.4 billion between 2015 and 2050 according to the United Nations, and 90 per cent of the growth will be from the APMEA region,” he said.
“With the regional development and application centre, Kerry will be able to bring our manufacturing expertise and world-class manufacturing for the future. The company will allocate strong investment for research and development into the centre.
“Thailand is a priority market and an important regional hub for many of our customers in South East Asia and beyond, so we’re delighted to be launching these new, world-class multi-application facilities in Bangpoo.”
He added that the centre will serve local and international food and beverage manufacturers in Thailand, whose products have been exported to many markets around the world.
Savage said that the market dynamics are changing very quickly. Today, consumers are looking for more variety of products, improved nutrition and are excited by new food experiences.
“Consumer food and beverage tastes are changing rapidly due to the region’s growing urban middle class and this is creating huge opportunities for the food and beverage sector,” he said. “We’re excited to combine our 15 years of heritage in Thailand with the very latest technologies and innovation to help our customers stay ahead of the curve and grow their market share now and into the future.”
Home to application labs, interactive customer suites and industry-leading research and sensory facilities, the centre also includes customer engagement kitchens and beverage bars where Kerry’s in-house chefs, mixologists and baristas will develop new menu concepts alongside customers. Food scientists and technologists will also work alongside dedicated teams of sensory scientists to develop products that surpass consumers’ expectation when launched, Savage said.
As one of the largest food manufacturers in the world, he said Kerry is also committed to achieving the highest standards of sustainable best practice. As part of this commitment, the centre employs automated pouch-filling technology to reduce energy consumption and improve operational efficiency.
Savage said that Kerry operates in 18 different markets in APMEA. The company achieved US$1 billion sales in the region last year and has 4,000 employees across the region.
“About 15 per cent of our global sales is currently contributed by the APMEA region. We also expect a double-digit growth every year from the APMEA region over the next five years.” he said.