[Plant Operations] Economic Strategies

ADAPT TO THE CONSUMER. According to a report by Innova Market Insights, food manufacturers are combating the economic crisis in various ways. Some are expanding their focus on core products or brands, increasing promotional and marketing activities and pulling less profitable products. Others are finding new revenue by investing in emerging markets overseas, such as China, India and the Middle East. Analyst Natalie Tremellen believes food companies could negate further 2009 losses by adapting marketing strategies to rapidly changing consumer habits, such as increased at-home eating.

Consumer snacking has increased even in the down economy, reports a recent study by Packaged Foods Consumer Goods Market Research, “Sweet and Salty/Savory Snacks in the U.S.” It attribures this to reduced restaurant dining, busy lifestyles that lead to fewer sit-down meals, and a growing consensus that several small meals or snacks are healthier than the age-old, three-meals-a-day plan. Estimating packaged snack sales growth to be $82 billion by 2013, an increase of 20 percent from 2008 sales of $68 billion, the report notes that snack consumers continue to be drawn in by lower prices, but are also seeking value in quality and “whole” ingredients; “better for you” recipes; green production practices; fewer additives and preservatives; and they will pay more for organic and premium snack treats.

STRATEGIZE YOUR SANITATION.  Through new technologies and regular program review you can maintain food-safe sanitation strategies and reduce costs. One new technology is water ionization through which tap water can clean and sanitize surfaces, said Sherman MacDonald, owner of Sanitation Strategies. The technology (Activeion Pro, EPA Est. #086143-MN-001) helps food processors reduce chemical costs, increase safety and implement a “greener” program, increasing environmental sustainability benefits. The ionization process—tap water receives an electrical charge then passes through an ion exchange membrane to create an oxygen-rich mixture of positive and negative nano-bubbles—helps reduce chemical and energy usage.

TAKE STEPS IN PREVENTION. Maintaining clean and clear floor drains—where microorganisms from processing, hand washing, equipment cleaning and restrooms are driven—can be a critical for food safety. ZEP Inc. recommends a daily or weekly cleaning program to prevent build-up and avert contamination:

1. Establish a splash guard or move   equipment or food-contact surfaces that could be contaminated by splashback.
2. Remove drain cover and scrub with a brush. Immediately place brush in a bucket of a highly concentrated sanitizer.
3. Rinse drain with low-pressure hose, then flood with sanitizer at four times the recommended concentration. Insert an antimicrobial block or ring if needed to continuously reduce microbial growth.
4. Replace drain cover. Clean and sanitize brush and let air dry.

*****

REVIEW EFFICIENCIES. Regular auditing of your sanitation program can help increase efficiencies and effectiveness. Review the three key facets: manpower, detergent and supplies to ensure they are being efficiently utilized, said John Carroll, president of Superior Contract Cleaners. It can also be advantageous to consider outsourcing, which can be an efficient, economical option, particularly for smaller plants and those that have had staff reductions.
 Other areas of review should be chemical usage and training, said Sherman MacDonald, owner of Sanitation Strategies. Ensure that chemical is not being used at higher concentrations than necessary or than defined on the label. It is also a good time to provide in-house training of the sanitation staff, reinforcing techniques for any identified inefficiencies and re-training on general processes.

*****

INNOVATE FOR INCREASED SALES. With erratic restaurant sales impacting food orders, manufacturers are finding innovative approaches to maintain, or increase, sales and help customers move product. “I’m working with operations and customers to develop new, creative ways to work with product,” said Tampa Maid Vice President of Foodservice Distribution Jeff Hayman. Hayman gave the example of shrimp tails, a very specialized product. If the menu item in which it is used doesn’t move, the restaurant can end up with a freezer full of overstock product. By bringing together a cross-departmental team including quality assurance and marketing, Tampa Maid came up with new menu concepts for the tails—and other specialty products. “Quality assurance and marketing need to talk,” Hayman said. “You have to be able to work across disciplines in your company.”

*****

REDUCE RISK. To ensure that every product is consistently produced every time, all equipment should be regularly monitored and validated. Corrective action can be a great deal more expensive than ensuring the product is produced right the first time.  (Laura Weisensell, IQS Senior Consultant)
 The pitfalls of producing safe food are the same whether a product is manufactured in the U.S. or another country. The factor which every food plant needs to consider for economic repercussions as well as food safety is “What are you doing to control the risk?” (David Acheson, Managing Director, Food and Import Safety at Leavitt Partners and former FDA Associate Commissioner for Foods)

*****

SAVE WATER. To reduce water footprint, increase efficiencies and save money:

• Reuse and Recycle. Capturing, treating and recycling water used in manufacturing can reduce water use by millions of gallons per year. Look at areas such as your boiler feed water, utility water and packaging preparation. A major beverage manufacturer saved 25,000 gallons of water a day by re-capturing and treating the bottle-wash water.
• Reduce Waste. By identifying new facility uses for wastewater, a major manufacturer recovered its waste stream and reused its feedwater, recovering more than 52 million gallons of water per year. 
• Consider the Water/Energy Link. Implement new technologies in automation, reuse and waste-to-energy to increase energy efficiencies. A major brewing company installed technology to convert its waste to energy, and saved the equivalent of $500,000 in annual energy costs at a single location.
(Siemens Water Technologies)