Boom times continue for the Swedish frozen food industry. (Sweden).

According to Djupfrysninsbyran (the Swedish Frozen Food Institute, www.djupfrysninsbyran.se) total volume was up 6% last year with retail and foodservice ticking up 7% and 8%, respectively.

At Institute offices in Helsingborg, Kjell Olsson reported that per capita consumption rose over three kilos to 49.7 per inhabitant. The director was quick to point out that the sharp increase was due partly to more companies reporting, and that figures are now obtained from nearly 100% of the industry. But there was substantial real growth as well.

Seafood rose 9% but fish had a downturn, while vegetables and baked goods each grew by 7%. Potato products recorded a rise of 9%, all due to variations other than french fries. Once again, ready meals are where the big action is in the Swedish market. With a volume of over 70,000 tons, the category now represents a quarter of the retail sector and takes up 40% of cabinet space.

Economically, Sweden has fared better than other European countries. Due to government spending and tax cuts, 2002 was kept on a roll with an increased consumer spending that weakened at the end of the year. As a result of the Iraq war and a weak dollar, 2003 got off to a slow start and is not expected to recover much with growth forecast at 1.5%. Unemployment is on the rise again after seeing decreases every year since 1996, and industrial production has stayed flat since raid 2002. However, the forecast for 2004 calls for growth at 2.5% with inflation remaining at low levels.

Even if the economy worsens a bit, frozen foods should hold up well. The Swedish consumer has gotten so used to convenience products that there is little reason for the market not to continue its rise.

Things could be a bit more interesting for processors and retailers in coming years. Unlike its Danish neighbor, fierce price cutting has not been the order of the day among Swedish retailers. However, German hard discounter Lidl has targeted the Nordic countries and is moving into Sweden this year with the opening of 60 stores anticipated. Lidl's concept is to offer rock-bottom prices with an emphasis on private labels. Danish discounter Netto joined forces with ICA Ahold to open stores in Sweden, so it looks as though the Swedish retail map is about to change.

The Institute celebrates its fiftieth anniversary this year, making it the oldest such organization outside the US. Now, to keep in step with the times, some of its programs are being changed. An October retail campaign has shifted focus from marketing to quality and the handling of products. One promotion offers trips to Canada to rive winners who correctly fill out a questionnaire. Future programs will put more of an emphasis on food safety, and the foodservice industry will be targeted.

A cooking school competition in which chefs make a three-course meal from frozen foods has become the biggest cooking contest in Sweden. This year, 400 entries were received with the final eight going to the run-offs in Stockholm.

The most popular product competition is the Institute's Golden Pinguin award. This year Findus won retail category kudos for its new Fire range of ready meals, while McCain Foods took foodservice honors for its Poppers line of snack foods.

How these programs will be conducted in the future remains to be seen. Later this year, Mr. Olsson will retire and the Institute will come under the aegis of the Swedish Food Federation.

Frigoscandia Equipment

With more than 2,500 GYRoCOMPACT spiral freezers in use, Frigoscandia Equipment embarked on an ambitious program, completed at the end of 2002, to up(late the popular machine and maintain its number one position in the global marketplace.

Redesigned from the ground up, the new M7 version incorporates 217 improvements with a heavy emphasis on hygiene. At the firm's Helsingborg offices (www.frigoscandiaequipment.com), Gov't Nilsson, sales director, reported that 25 of the new freezers have been sold, including four that will be used for freezing and chilling in a new Danish Crown factory.

Touted as the most advanced and hygienic slaughterhouse in the world, the Horsens, Denmark plant will have capacity for 75,000 hogs per week when completed next year. One production line will be used for chilled entrails shipped to sausage and meat producers. It was decided that by using extremely accurate temperatures (+3.0[degrees]C to +3.5[degrees]C), products could be chilled without compromising safety, thereby saving customers' valuable time lost in thawing frozen raw materials.

Not only was Frigoscandia able to meet these strict demands with the M7, but the machine meets requirements for greater cleanability. Easy and efficient cleaning has been extended beyond the product zone to include the entire machine. One major improvement involved the relocation of the evaporator coil away from the walls. This allows for easier inspection and cleaning from all sides.

On the performance side, the new M7 has a simplified belt take-up that extends belt life, while airflow velocity has been optimized for greater heat transfer and uptime. The time between defrosts has been lengthened by the use of a new outfeed tunnel.

Torbjorn Arvidsson, president, advised that in addition to concentrating on the new 'M' series, other equipment in Frigoscandia's range is constantly undergoing development. A renewed emphasis is being placed on Stein cooking machinery from parent company FMC. While a leader in the US, Stein has not been as successful in Europe since much of the equipment is designed for large, high capacity plants. However, Frigoscandia maintains a very active technology center where Stein equipment is being downscaled for medium size companies and further developed for the European market.

Frigoscandia has enjoyed strong business in Asia, with a number of seafood installations for its ADVANTEC flat product freezer. Utilizing a patented impingement airflow technology, other units have been sold in Europe and Canada.

In the US, freezers have been installed in the baked goods sector, and installations for producers of ready meals are going on in almost all markets. In Europe, Germany was reported as doing well despite the slow economy, and Eastern Europe is coming along nicely as more production moves to that area.

Findus

In just a bit over three years, Findus (www.findus.se) management has done a remarkable job of reviving a major frozen food brand and increasing market share. When EQT Scandinavia BV bought the firm from Nestle it made no efforts to hide the fact that the eventual goal was to build up the company and sell it.

At headquarters in Bjuv, Findus CEO Carel van Bemmelen told QFFI that the exit process has begun and EQT is now looking for new owners. Company policy from the beginning was to develop a range that could be sold in many different countries, giving Findus cost advantages and economies of scale hot available to other processors marketing regional products.

Thirty percent of the vast range is now pan-national as opposed to only 1.5% in 2000, and 70% of all products are high value added as compared to 50% previously. The strategy has been to launch the same product lines in 'all countries at once in order to keep competitors out of the game.

Key to this concept is constant new product development, and Henk Spoon is the man responsible for this area. As senior vice president of marketing and product innovation, he has brought to market an array of successful value added products.

One of their big winners has been the "Feeling Great!" range of products, designed to fit in with healthy eating lifestyles while meeting the need for products that also taste good. Available in Sweden and Norway, Findus has recently revived the "Lean Cuisine" name and added it to six new "Feeling Great!" products in the UK.

The year is off to a good start with France and Spain showing strong results, and these countries are poised for future gains. Soon, Findus will be allowed to sell ready meals, snacks and pizzas in those areas. Under an agreement with Nestle it is barred from such sales until February 2004. Sales in Norway and Finland have been good, too, with growth of over 6% posted.

A new range of spicy bowl products was launched in Sweden early this year under the "Fire" label. So far sales are ahead of target. If this continues, the line will be introduced in other markets.

While product development is a strong point, Findus has worked hard to maintain customer relations. As a result, Swedish retailer ICA awarded the firm with its Suppler of the Year award, a prize based on professionalism and account management.

Formcook

While some equipment manufacturers are scaling down equipment to meet European needs, cooking and forming machinery manufacturer Formcook (www.formcook.com) is experiencing the opposite trend.

At its purpose built plant outside of Helsingborg, Lars Holmlund explained that when the company started 14 years ago, 1,000mm was the maximum belt width required for cookers. Now, the company is meeting demands for widths up to 1,300mm, with 1,000mm being commonplace. Recent deliveries have included a contact cooker 14 meters in length and one 15 meters long for chicken breasts. However, Formcook will meet any specification and all of its equipment works well in high or low capacity installations.

The managing director told QFFI that business has been quite good overall, in spite of economic downturns in some countries. Contact cookers and COMBI's, which utilize hot air from above and contact cooking on the bottom, have been sold in Germany. In the US, where FMC Stein represents Formcook, business has picked up nicely in the last six to nine months with most installations taking place within the poultry industry.

At the time of QFFI's visit in May, a unique cooking machine was under construction for a Norwegian processor. Utilizing a fryer, single sided cooker and COMBI cooker, the machine will be used to produce fish burgers.

In keeping with demands for easier and more efficient methods of sanitizing equipment, a new steam-cleaning device has been developed for all machines. Reportedly, water volume usage is cut by 50% over previous methods. The apparatus can be ordered on new equipment or retro fitted to existing machinery.

Formcook's business in formers, while not increasing, has been steady. Known for ruggedness, its mechanical formers not only last a long time but save on energy as well.

Formcook doesn't expect processors to take its word for how well the equipment works. Manufacturers are invited to take products to the company's test lab for a trial run. For anyone not willing to make the trip, a Formcook employee will go to the processor with test versions of its COMBI machines or formers.

Foodimpex

Long known as a reliable supplier of fruits, berries and vegetables to industry, Foodimpex (www.foodimpex.se) has seen strong growth in recent years in the retail area. Managing Director Bertil Andersson told QFFI that the company has developed private label programs for ICA and COOR as well as for a retailer in Norway. The Helsingborg company is looking for further retail business.

Started thirty years ago by Mr. Anderssons' father, the company spent its initial decade importing products from Hungary. Findus was its first big customer, a relationship that has continued through the years. Foodimpex now supplies products from many countries in Eastern Europe, Central America and the Far East. In 1980, a major subsidiary was started in Spain that now supplies a good part of the European industry.

In Central America Foodimpex works with Superior Foods International to buy and sell a wide range of fruits and vegetables from Guatemala, Ecuador, Costa Rica and Peru. Superior is an experienced global supplier of frozen commodities, so the two companies fit well with one another.

Expanding on that relationship, the two companies formed a joint venture in January on mainland China with Sue Yin, a company with extensive knowledge of Asian frozen food export and production. The main office has been moved from Taiwan to Hangzhou, in the province of Zheijiang, to be even closer to the source. With a permanent presence in China, S.F.I. Asia Co., Ltd places strong emphasis on food safety and quality. This means that customers in Europe and the US will be assured that all products meet their expectations and requirements.

IQF Frost

Now in its fourth year of operation, Helsingborg freezing equipment manufacturer IQF Frost (www.iqf.se) bas enough machines out in the field to enable it to build a portfolio of case studies. We're not talking about a huge number of freezers here, but a good range of products and geographical areas are covered.

The principle behind the company's OctO-Frost model is simplicity. Relying on two agitated plates to move product through the freezer, no belt is needed and, hence, fewer moving parts are used. Fully contained inside a strong fiberglass enclosure, units are shipped ready to install in a few days instead of weeks.

Company founder Ruben Larsson explained that Scanfood bought its first OctO-Frost freezer in 2000, so it's had three years to prove itself. Used for IQF ready meal meat products, output from the freezer has had top results in all laboratory tests. In a testimonial, Scanfood stated that it was impressed with the access and cleanability.

Chilean fruit producer Fruiticola Olmue needed a new freezer to increase production. Used for difficult products such as raspberries, blackberries and mushrooms, the company has been very pleased with the results. Apparently there were some initial difficulties, but IQF Frost worked with the customer until all problems were solved. Another advantage has been that the freezer is easy to operate, an important factor in an area where it's hard to find qualified technical personnel.