Muntons Annual Review 2016

Muntons Made
INTERNATIONAL NEWS
INTERNATIONAL NEWS
SUNNY FUTURE
FOR NEW ASIAN
JOINT VENTURE
This was a pivotal year for Muntons for a number of reasons but
none more so than the beginning of overseas manufacture, as
our Joint Venture in Thailand reached the point where product
was made on the new plant for the first time. The US$17.5M joint
venture agreement was originally signed in 2014 and during the
following months, in a project ably headed by Colin Whitehouse,
General Manager JJ-Muntons (Thailand) Ltd., a hive of activity was
triggered as construction work began. The building was designed and
constructed and the plant itself sourced, built and installed. Delivering
a new state-of-the-art facility that converts liquid extract into powder
by means of a band drying process. This is a joint venture undertaken
in conjunction with our South East Asian partner Jebsen and Jessen
Ingredients, who have an extensive distribution network stretching
across the region.
A grand opening ceremony was planned and organised and in April
2016 the new facility in Chonburi Thailand was officially opened. In
keeping with Thai tradition, it received the blessing of nine Buddhist
monks as they performed the ‘Taboon Khun Wan Mai’ (the number
nine is considered to be a lucky number in Thailand). As is customary,
the assembled specially invited VIP’s and guests completed the ritual
Malt extract is used in a wide variety of
consumer products in Asia not just because
of the much-favoured taste but because of the
nutritional benefits it brings, often used to
supplement the local diet. Cold malted milk
drinks are particularly popular, consumed
by younger members of the population as a
refreshing drink to boost energy levels.
by handing food and water to the monks. Trees were planted as part
of the ordination ritual, designed to raise awareness about the value
of nature and inspire people to take part in conservation efforts.
The trees were blessed to signify their sacred status and form part
of a larger effort to foster a conservation ethic.
The grand opening ceremony was topped off with a tour of the
new facility, a gala dinner, entertaining karaoke and finally a
spectacular fireworks display on the beach. This venture into the
manufacture of premium malted ingredients in Asia brings benefits
to the local community and to our business in the UK and sits firmly
with our vision to bring the great taste and benefits of malt to the
people of the world.
The first shipments of malt extract, made at the Muntons plant in
Stowmarket, were sent to the new factory in Thailand so that final
plant commissioning could be undertaken to enable the new plant
to commence production in earnest. Once in full production it is
anticipated that 3,000 tonnes of malt extract will be shipped every
year from our plant in Stowmarket, increasing our demand for
quality East Anglian malting barley by nearly 5,000 tonnes.
STARS & STRIPES
Muntons has been exporting products to the USA for many
decades but it was only in the last five years that we took the
plunge and formed a US company originally based on the west
coast at Seattle, Washington. This year Muntons Inc., moved
premises and location – eastwards.
Muntons Malted Ingredients Inc. has relocated to the suburb village
of Lombard on the outskirts of Chicago, Illinois. This mid-west
location was selected as the natural area to best serve the North
American and international food and beverage industry and simplifies
communications across time zones.
The USA offers excellent opportunities for growth for Muntons
malt and malted ingredients. Areas such as the craft brewing industry,
which has undergone unprecedented growth over recent years, and
the burgeoning craft distilling market crave the traditional products
we can offer – products with heritage and history. US and Canadian
homebrewers continue to demand quality products to satisfy their
hobby-orientated needs. But it is the food and beverage industry
where Muntons malted ingredients offer the greatest potential
as a source of wholegrains and natural sweetness.
Our new Food Sales Manager, Tim Greiner, has been appointed
to boost penetration into the food industry and, with distribution
centres now located in Denver, (Colorado), Westfield, (Massachusetts)
and Barton, (Vermont), Muntons Malted Ingredients Inc. is well
placed to offer an unparalleled excellence of service to our customers.
BREXIT IMPACT
The result of the referendum may not have been in line with
either the expectations or desire of some UK businesses but
the people have spoken and the world will now have to live
with that decision. Muntons are confident that we are agile
enough to get the very best out of the changing landscape.
Supplying product already to 76 countries globally provides a clear
indication that whilst trade with Europe is important it is not the only
region where trade opportunities exist. As the dust settles and exit
negotiations progress, the way forward will become clearer. The main
area of concern is whether the Government will take the necessary
steps to ensure that UK food manufacturers such as Muntons are
not disadvantaged through the results of their endeavours. Having
a level playing field across Europe will help to ensure that UK
maltsters remain competitive with their European counterparts.
We are sure that the situation will become clearer over the next
few years as trade agreements and farm strategies are settled.
Muntons has already begun the process of developing trade
opportunities in areas previously unexplored and we have already
seen successes as we break into new markets. It is true to say that
we live in interesting times.
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Muntons PLC Annual Review 2016