(NOMINATION FOR 2014 AUREA AWARD): Desing - Production of cherry-based fruit preparations

In late 2013, in its Knjazevac-based section, Belgrade-based Desing, operating in the fruit preparations production, initiated semi-candied cherry production based on an innovative technology which decreases sugar concentration up to 20% and at the same time keeps the sensor product features.

The most common problem with the food industry in Serbia is the fact that raw material is exported while Desing, with the new technology, enables the process finalization as well as product placement at foreign markets at their Knjazevac-based facility.

Along with the technology development, Desing together with the equipment producers, developed technological equipment for the production of these products thus involving domestic industry. Apart from moving domestic economy ahead, Desing moves and supports local community development with its production.

In late 2013, with the conquest of technology and cooperation with scientific and expert institutions, Desing set up its Innovation center in Knjazevac-based section, comprising a research and development center and a modern lab where, apart from technological research and production process development, knowledge transfer and staff skills and knowledge development will be carried out.

Through development of higher quality product and when it comes to sensor and nutritive aspects, the company met its customers’ needs. Apart from cherry, new technology can treat blackberry and blueberry, and these kinds of products are used in ice-cream industry, confectionary industry and HoReCa sector.

The market analysis which Desing carried out showed that 800 tons of cherry per year is needed only for Serbian industry. In the first production cycle, Desing produced some 3t semi-candied cherry for domestic company Frikom and it is planning production of some 25 tons for 2014.

Desing has been operating since 1992 and is one of three approved suppliers for McDonald’s in Europe. Apart from that, buyers of products from Knjazevac-based sections are NESTLE Ice Cream, Puratos, BakeMark, Knjaz Milos, Pionir, Swisslion, Medela, Bambi, Frikom, Costa Coffee, Roggenart, Ice Cream Factory.

INNOVATION

Taking into account proofs of nutritive cherry values and food industry needs, in mid 2012, Desing started its cherry fruit preparation development innovative cycle

Requests of multinational companies for which Desing produces are health nutrition-oriented. Namely, in line with the fact that the World Health Organization assumes that sugar consumption should decrease and on the other hand fruit components scientifically proved to be good, should be kept, Desing, in cooperation with the experts from the Faculty of Agriculture in Belgrade invented innovative technology for development of semi-candied fruit product where sugar concentration is much lower while sensor product features remain the same.

Production is based on innovative osmosis process which starts with frozen fruit. The first direction in development of the new technology was to conquer the technology by using glucose-fructose syrups in order to infuse sugar into cherry-based fruit preparations. Using glucose-fructose syrups as a replacement for sugar, crystallization of dextrose was avoided and thus the product quality increased. The second direction was development of semi-candied cherry production technology. The basic motif for development of this product (when it comes to candied fruit) is a decrease of sugar concentration from over 70 % to some 50%. As a result of development of this kind of product, this technology enabled better sensor product features. Unlike the canning fruit process where artificial colors are commonly used, in this technology there is no need for colors because the color itself stays in fruit. The last stage in production is canning through cryogenic freezing technology. In this method of physical fruit canning at low temperatures, sensor and nutritive features are kept and there is no need for chemical preservatives. Fruit remains the same, glaze has smaller quantities of sugar and the same sensor features.

During production, semi-candied cherry goes through these three processes and each one of them can be used on other kinds such as blackberries and blueberries. This is the first time this kind of production was implemented in Serbia and these products are used in ice-cream industry, in confectionary industry and HoReCa sector.

The industrial production of candied cherry and forest fruit based on new technology started in late 2013. Along with the technology development, together with Serbian equipment producers, Desing developed technological equipment used in the section for production of these products and the company set up its Innovation center.

SOCIAL UTILITY

The Knjazevac region, where the Desing’s section is located, is known for cherry production, especially of Oblacinska sour cherry. This is why the company opted for developing new technology based on this kind of fruit preparations. This way, the company connected raw materials sector with production and the opening of the Innovation center contributed to synergy both with science and further technology development.

The newly set-up Innovation center comprises responsibilities, expertise and valuable information so that experience and ideas would be transformed into new consumer solutions. The center consists of a pilot facility, a research and development center and a modern lab and the staff in the section will, in cooperation with the Faculty of Agriculture, work on product development on the basis of the market needs and analysis of product development trends in the world. This way, development of young, educated people is supported. The innovation center will be registered as the company branch office and it will enable participation at new, European projects.

At this moment, Desing takes part in the implementation of the Innovative Fruit Preparations In The Pilot Aseptic Plan project together with the Faculty of Agriculture within the EU research projects - Framework program 7 (FP7) as a partner within the AQUAVALENS - Protecting the health of Europeans by improving methods for the detection of pathogens in drinking water and water used in food preparation project.

Desing’s new technology is completely domestic know-how. With the technology development, with Serbian equipment producers, Desing developed technological equipment which is used in the production section thus employing domestic industry.

With constant investments in Knjazevac-based production section and employing of the young, Desing supported local community development. At the moment, there are 16 employees in the section, 5 of them highly educated. The company supported and developed agricultural sector in Knjazevac through purchasing large quantities of cherry.

Apart from that, through the sales of its products to big multinational companies, Desing promoted Knjazevac and products based on Oblacinska sour cherry. The most common problem with the food industry in Serbia is the fact that raw material is mostly exported while Desing, with the new technology, enabled the process finalization in their Knjazevac-based facility and product placement as such at foreign markets.

Innovations based on cherry fruit preparations are environmentally acceptable technologies which have optimal ratio of natural resources consumption (energy and water) and product safety quality.

FINANCIAL POTENTIAL

The industrial production of semi-candied cherry started in late 2013. In the first production cycle, Desing produced some 3 tons of semi-candied cherry for Frikom while for 2014, the planned production totals some 25 tons. Cherry products, developed in the first cycle of the innovation process of infusion of sugar into fruit, were placed at Serbian and European markets in bakery industry totaling 110 tons in 2013. In 2014, the company agreed production quantities for the European market totaling 210 tons for a Belgium producer. With further development of the Innovation center, marketing and sales activities, the company is planning an annual profit of EUR 750.000 generated from cherry products production.

Financial potential of the innovative project – Cherry-based fruit preparations innovations is based on the following parameters:

Competitive advantages:

- When it comes to cherry production, Serbia is sixth ranked at the world. It has a 7% stake at the world production with annual yields of 83.269 kg. Knjazevac produces about 10.000 tons of cherry annually.

- When it comes to cherry export, Serbia is second ranked at the world. Fruits are mostly exported as frozen to Germany, Austria, the Netherlands and Portugal.

- Oblacinska sour cherry is a domestic cherry kind which is famous worldwide and used in food industry. It is frost and drought tolerant. It contains 14-17% of dry substance, high concentration of anthocyanin and it is has wide purpose in industry.

Market analysis:

- Cherry products can be used in bakery industry, ice-cream industry, dairy industry, confectionary industry and HoReCa sector.

- Annual potential of the Serbian market for cherry products is:

o In bakery industry 300 tons

o In ice-cream industry 100 tons

o In dairy industry 190 tons

o In confectionary industry and HoReCa sector 200 tons

Desing’s potential:

- Desing is a domestic producer of fruit preparations used as raw materials in bakery industry, ice-cream industry, dairy industry, confectionary industry and HoReCa sector. For 20 years now, the company has been researching, producing and selling its products at domestic and regional markets as well as at the EU market. It has its own lab for product development organized in Knjazevac-based section on 1500m2.

- At the Serbian market, in bakery industry, Desing has a 45% share with fruit and cream fillings and in ice-cream industry; it is the only syrup and cream producer. Desing is one three approved suppliers for McDonald’s in Europe. They do business with Frikom, NESTLE, CSM, Puratos which are the main multinational companies present at Serbian and European markets.

If the innovative production of cherry-based fruit preparations by the Desing company is your favorite for the investment of the year, you can vote for this investment at the official website of the Aurea Award.