Synergy Flavours Ltd acquires Italian natural flavourings supplier, Janoušek

Synergy Flavours Ltd has announced today that it has completed the acquisition of Janoušek, in Trieste, NE Italy. One of the world’s first suppliers of herbal extracts and natural flavourings and an expert in Italian profiles, Janoušek has been serving customers in its home market of Italy for 135 years and also operates across Eastern Europe. The acquisition of Janoušek will enable Synergy to expand into these European geographies with its specialist product ranges, which include flavours for nutrition and dairy taste solutions.

Synergy’s flavour creation and application capabilities span the globe – with commercial, manufacturing and technical support facilities in Ireland, the UK, the US, Brazil and Thailand. The company is part of the Carbery Group – a leading international manufacturer of speciality food ingredients, flavouring systems and award-winning cheese producer, owned by four Irish dairy co-operatives.

Steve Morgan, CEO, Synergy Flavours Ltd commented: “We’re thrilled to be welcoming the Janoušek business into our Group as it brings new expertise and products into our natural flavour, essences and extracts portfolio and complements our long heritage in dairy processing in Ireland and vanilla extraction in the USA. The Italian site has an excellent record for high quality manufacturing, offers room for growth with easy road access to much of mainland Europe.

“Janoušek is a growing, well run business and we have no plans for major or immediate changes. Our intent is to invest in and grow the team, adding new skills and new capacity to the site as required over the coming years.”

Jason Hawkins, CEO of the Carbery Group added: “With ongoing investment and expansion underway in the US, Asia and Brazil and recent investment in Mexico, our intention is for Synergy Flavours to be positioned to support customers across the world, regardless of borders or geography. The acquisition of Janoušek gives Synergy in Europe a new home on the doorstep of Eastern Europe, potentially easier access to the Middle East and an established base to support flavour and natural ingredient manufacturing for new and existing customers in Italy and the wider region.”

Carbery Group reports 23% increase in 2017 turnover to €417 million

Carbery Group, the West Cork based international ingredients company, has reported a strong financial performance for the year ended 31 December 2017.

Group turnover for the year was up 22.7% to €417.3 million from €340.0 million in the previous year. EBITDA (earnings before interest, tax, depreciation and amortisation), increased to €41.8 million, up from €37.0 million in 2016, and the Group is reporting increased EBITA (operating profit before interest, tax, amortisation and exceptional items) of €31.0 million (2016: €27.1 million).

Jason Hawkins, Chief Executive Officer, Carbery Group said that the positive results were achieved as a result of strong trading performance across all three of Carbery’s strategic business platforms of Dairy, Nutrition and Taste. “Our Dairy business performed well on the back of strong dairy markets and continuing growth in our milk supply. Carbery’s Nutritional Ingredients platform continued to drive growth across new products, customers and markets, and Synergy, our international Taste business, once again delivered a very strong performance with growth across all key markets,” he said.

Mr. Hawkins noted that, as a result of very strong dairy markets and a good business performance, Carbery was able to continue to pay a leading milk price to its supplier shareholders during 2017. In addition, at the year end, the Board declared a 1 cent per litre bonus for 2017 milk.

Supplies of milk to Carbery’s processing facility in Ballineen increased by 8.2% to 509 million litres in 2017, and are up 28% since the removal of quotas. Mr. Hawkins also commented that “the Carbery Board allocated €10 million into its Stability Fund at year end to support future milk prices during times of price volatility.”

During 2017 Carbery invested a further €17.1 million across its global operations. This brings investment in the business over the past five years to a total of €80 million.

Carbery Group’s net debt position at 31 December 2017 was reduced to €12.7 million (2016: €26.2 million).  See Five Year Financial Review below.

Dairy Business
Carbery’s dairy business performed well in 2017 with steady growth experienced in its cheese business, supported by its partnership with Ornua.

Whilst noting that Brexit is a significant concern, particularly for Carbery’s cheese business given the importance of the UK market for Irish cheddar, Mr. Hawkins said: “We have a Brexit working team evaluating and preparing for all scenarios under either a soft or hard Brexit. We are also working closely with Irish governmental and industry bodies to ensure the potential implications of Brexit are understood and that we, and the dairy industry, are supported.”

Carbery launched its fourth fixed milk price scheme for its milk suppliers in December 2017. These schemes continue to offer some income stability in a volatile dairy market.

Nutrition Business
Carbery’s nutrition business, which includes a broad range of protein products, performed very well in 2017, driven by ongoing organic volume growth and the development of new markets. Continued investment in Research and Development has enabled the launch of a range of specialised nutritional ingredients for the infant and sports nutrition markets, with a particular focus on Asia and North America. Mr. Hawkins stated that Carbery’s Nutrition team is very focused on the development of new valued added technologies and markets.

Taste Business – Synergy
Synergy, Carbery Group’s international taste division, is a leading supplier of flavourings, extracts and essences. It supplies customers around the globe from operations in Europe, North America, South America and Asia.

Innovation is central to the Synergy growth platform noted Mr. Hawkins, adding that the team is focused on investing in and delivering innovative Taste technologies to support Carbery’s global customer base.

The business once again delivered strong results in 2017, continuing to create value for Carbery shareholders.

Mr. Hawkins said that the global Synergy team is well equipped to continue to drive organic growth and value for shareholders while also being well positioned to take advantage of any acquisition opportunities that will further enhance the Group’s Taste platform.

Looking to the future
Commenting on the market outlook for 2018, Jason Hawkins said that Carbery Group is well positioned to continue to build upon the strong performance achieved in 2017.

“Dairy markets will prove more challenging for our dairy business and milk suppliers in 2018, particularly if EU supply growth continues at recent levels. We currently have our stability fund in place to support potentially volatile and weakened markets. At the same time the management team will continue to manage dairy commodity risk across the business. I am optimistic that longer term dairy demand is healthy and that Carbery will continue to create value for our shareholders through investment in research and development, new product opportunities and facility expansion to cater for planned growth,” he concluded.

Carbery Group reports increase in profits of 6% for 2016

Carbery Group has reported an increase in earnings before interest, taxes, depreciation and amotisation (EBITDA) to €37m on turnover of €340m for 2016.

EBITDA increased by 4.8 per cent, up from €35.3m in 2015. Turnover for the year was down slightly at €340m compared to €349.5m in the previous year.

The Group is reporting operating profit before interest, tax, amortisation and exceptional items (EBITA) of €27.1m (2015: €25.5m), reflecting a year-on-year increase of 6 per cent. On a constant currency basis, EBITA increased by 9 per cent year on year.

Continuing on course with the group’s growth strategy, the Carbery Group invested €15.4m in its dairy and ingredients departments during 2016, increasing the total investment made by the company since 2011 to €78.2m.

By Division

Carbery’s dairy business in Ireland recorded good margins and expansion in both its ingredients and cheese divisions, in spite of lower prices for cheese during the year. The volume of milk processed at Ballineen in 2016 was up 4.4% to 470 million litres.

Carbery’s ingredients division has developed new business in high-value fields such as infant nutrition and clinical nutrition.

Carbery Group’s international flavour and natural extracts division, Synergy, has recorded good growth in its main customer markets of the UK, Europe, the USA, South America and south-east Asia.

Outlook

The outlook for the Carbery Group business is reportedly positive for 2017, given its strong and dynamic dairy, ingredients and flavours business divisions.

 

 

 

Some recent Carbery Group responsibility initiatives and investments.

Sustainable Development Goals (SDGs)
On 1 January 2016, the 17 Sustainable Development Goals (SDGs) officially came into force. Over the next fifteen years countries will mobilize efforts to end all forms of poverty, fight inequalities and tackle climate change, while ensuring that no one is left behind. The new Goals recognize that ending poverty must go hand-in-hand with strategies that build economic growth and addresses a range of social needs including education, health, social protection, and job opportunities, while tackling climate change and environmental protection.

Governments will be busy for the next 15 years working to achieve the goals, but that doesn’t mean all the work falls on them. The private sector can help accelerate the achievement of the SDGs. Carbery is committed to playing our part in achieving the sustainable development goals. At Carbery, we have a special focus on; life on land, responsible consumption & production, industry innovation and infrastructure, sustainable communities and gender equality. To find out more on our initiatives, and the role Carbery is playing, please contact Sinead Treanor, Sustainability Manager on streanor@carbery.com

Carbery delivers on its green 50 pledge

Carbery delivers on its Green 50 pledge by diverting 15% less waste to landfill, achieving an actual total weight reduction of 22.5 metric tonnes compared to 2015 levels. Green 50 is a not-for-profit initiative whose mission is to raise money for charities through the promotion of green practices. The ‘Jeep for Jason’ West Cork Rapid Response was the selected charity, and Carbery donated a €2,000 cheque from their waste savings initiative. In doing so, Carbery became the first Irish company to fulfill its Green 50 pledge.

Carbery launches heat-stable 100% Whey Protein at Health Ingredients Europe 2016.

Carbery launched a great tasting 100% whey protein for ready to drink beverages at this years this year’s HiE exhibition in Frankfurt. Responding to the continuing demand for convenient, nutritious and tasty beverages that support health throughout life, Optipep® RTD can deliver a 10% pure whey protein content in RTD teas, coffees, juices and dairy beverages.

Carbery’s latest innovation means that for the first time, customers can use a great tasting 100% whey protein ingredient that can withstand pasteurisation, UHT treatment and a shelf life of up to 12 months while also providing a meaningful quantity of premium protein in each serving. Whey is widely regarded as the ideal protein source due to its amino acid profile and bioavailability.

Like all Carbery’s other whey proteins, it is manufactured from grass-fed whey, a natural and sustainable protein source.

Carbery’s wins The Green Food & Beverage Award

Carbery has won the 2016 Green Food and Beverage Award as recognition for our outstanding achievements of exceeding Origin Green targets ahead of schedule, and our innovative approach to sustainability through initiatives such as Carbery Greener Dairy Farms and the farmer tree planting programme; Carbery Trees.

For the past 7 years the Green Awards has celebrated the commitment that Irish businesses make towards sustainability in Ireland and continues to be the number one platform where the leading organisations and thinkers gather to celebrates the Irish green community.

Carbery launches farmer tree project to address climate change locally

 

Carbery, in conjunction with SWS Forestry, has launched The Carbery Tree Project, whereby local farmers will be given 20 trees each for planting on their farms in an initiative to address climate change at a local level: offsetting carbon emissions, and increasing biodiversity. The project is the first scheme of its kind for the dairy industry in Ireland and involved all 1,314 suppliers across the four West Cork Co-ops. Over 26,000 trees were provided in biodegradable bags, during National Tree Week, that ran from the 6th-13th March.

Carbery Group milk supplier wins prestigious National Irish Quality Milk Award

The Carbery Group is rooted in dairying. Owned by farming families, its Irish operation processes around 400 million litres per annum of milk to produce award-winning cheeses and food ingredients.

The lush landscape and temperate climate of Ireland’s south western seaboard provides ideal conditions for sustainable, grass-based dairy farming. Here, dairy farmers have worked in harmony with nature for generations to produce high quality milk, rich in nutritional goodness.

Each year, The Irish National Dairy Council (NDC) and Kerrygold award prizes for milk quality. We congratulate this year’s overall winners Kieran and Catherine O’Sullivan, from Dunmanus, Goleen in West Cork. They were recognised for farming the Best Quality Milk in Ireland at the recent NDC & Kerrygold Quality Milk Awards.

The O’Sullivan family run a 107 hectare dairy farm, milking 136 cows with an 18 unit milking parlour. Their milk is supplied daily to Drinagh Co-op for processing in Carbery’s Ballineen facility. The O’Sulllivan farm is located on the scenic Mizen peninsula, one of the most westerly points in Europe. The family is at the heart of Irish dairy farming. Their passion for farming is passed down from generation to generation.

 

 

Carbery would also like to congratulate some of our other farmer suppliers who also received awards. The O’Manony family from Shanakiel (Barrroe-Co-op) were the overall runners up. James Kingston from Maulnageragh, (Lisavaird Co-op) claimed the National Category award for the Best Milk Protein. Owen and Rosaleen O’Brien from Cashelbeg (Bandon Co-op) achieved excellence in Dairy Farming / National Finalist.

The success of our suppliers in these prestigious Quality Milk Awards demonstrates the quality milk system that is in place in West Cork, and highlights the excellent standard of milk production that farmers strive to achieve every day.

Each finalist was commended for their outstanding attention to detail, with an emphasis on healthy cows, spotless facilities and hygienic practices, all of which are essential to Carbery’s quality of raw material supply which leads to a superior end product.

New protein Optipep® 90PRO launches at SupplySide West

Carbery is set to showcase its extensive technical expertise in performance nutrition at SupplySide West in Las Vegas Nevada this October.

This year, Protein has been selected as one of the Hot Topics™ at SupplySide West. This provides the ideal platform for Carbery to launch Optipep® 90PRO, a new higher-protein addition to its range of hydrolyzed whey proteins.

Created using specialist enzyme technology, Optipep® 90PRO offers an improved taste profile for high protein, elite athlete nutrition products and is suitable for inclusion in a range of beverage and bar formats. The new taste profile is highly palatable with a clean taste that works with a greater choice of flavors.

Optipep® 90PRO is naturally high in branched chain amino acids (BCAAs) including Leucine, Isoleucine and Valine and offers enhanced bioactivity of peptides.  It delivers key performance benefits. These include rapid absorption of essential amino acids  and enhanced insulin response. A powerful combination that  promotes muscle protein synthesis and restores muscle glycogen stores.

Carbery’s protein innovation platform is strengthened by its global flavors business Synergy Flavors, who have specific expertise in flavoring protein based sports nutrition formulations. Carbery/Synergy will be exhibiting on booth #2263.

SupplySide West, the leading Nutraceuticals trade show in the USA brings together suppliers and buyers of dietary supplements, food and beverages, personal care and cosmetics.