Muntons Annual Review 2016

made 

Annual 

Review 

2016

Muntons Made 

Welcome... 

to our 2016 annual review. This 

year we have focused on malt as an 

ingredient used in many foods and 

drinks - some you may know, others 

you may be surprised to learn! 

We hope you will enjoy reading 

about what has been a very exciting 

and productive year for Muntons. 

Do get in touch if we’ve missed 

anything or if you’d like to know 

more. As ever, there are many news 

stories that didn’t quite make it to 

the final edit. 

Inside 

Chairman’s Statement 03 

Managing Director’s Report 04 

Wishful Drinking 05 

Sensational Summer Salad 06 

News in Brief 07 

Well Worth Waiting For 08 

Malty Bits 10 

Pure Pleasure By The Pint 12 

Technology 14 

International News 16 

Our Most Decadent Dessert 18 

Focus on Education 20 

Cutting Edge Laboratory Upgrade 

gets Results Fast 22 

Muntons Ingredients Overview 23 

Muntons Malt Overview 24 

Our Year In Numbers 26 

GO FIGURE 

2016 FINANCIALS IN BRIEF 

£11.3M 

EBITDA 

20.2% 

RETURN ON CAPITAL EMPLOYED 

£90.33M 

TURNOVER 

£7.53M 

PRE-TAX PROFIT 

193,583 

TONNES OF MALT SALES 

28,197 

TONNES OF LIQUID EXTRACT 

2.44GWH 

ELECTRICITY GENERATED 

3,773 

SAMPLES SENT TO CUSTOMERS 

28,000 

SAMPLES ANALYSED IN OUR LABORATORIES 

Our results were level with 2015 but we increased our volume sales 

by 5%. Overall sales value was slightly down on last year at £90m, 

mainly due to a higher proportion of exported sales, and an operating 

profit of £8.7m was below last year as depreciation costs and 

overheads grew. 

The joint venture company in Thailand has been challenged by 

commissioning problems and beset by bureaucracy. Had it performed 

as projected we would have set another record for the company’s 

earnings, but it does give us grounds for optimism this year as the 

sales activity begins to grow in South East Asia. 

We completed the year with our bank debt down to £23m having 

invested £5.7m in the year on capital projects. The completion of 

the new barley intake and drying plant at Stowmarket is a major step 

forward in the improvement plan for the site. The major overhaul of 

our information systems, using SAP S/4Hana has been delayed as we 

extended the functionality to be implemented in the first phase and 

it will now be live in July 2017. 

Although our return on capital is two percentage points lower than 

last year, we have been in a period of intense investment and our 

forecast returns are delayed on some projects. The anaerobic digester 

for example is working extremely well and generating over 14% of 

our Stowmarket site electricity requirement but to complete the 

project we have struggled to secure the licensing needed for the 

recycled waste to be sold on as fertiliser, due to bureaucratic 

wrangling between the agencies involved. 

In the second half of the year we decided to put our financial audit 

out to tender. The successful company was Ipswich-based BDO and 

muntons malt - 

the key ingredient for success 

CHAIRMAN’S STATEMENT 

This year under review will go down in history for the referendum decision to leave the European 

Union with all its many anticipated consequences. Your company has continued with a clear 

strategy to invest for growth and build for the future with projects that will reduce environmental 

impact and increase financial performance. 

they have now carried out their first audit of this year’s results. Last 

year I mentioned that we were obliged to move to a new method of 

accounting - FRS102 - and this has been a hugely frustrating task 

with no particular benefit to the company or the shareholders. 

The executive team under Alan’s guidance have managed the 

business very well this year in a landscape of great uncertainty. There 

are many questions around the future of our supply chain and our 

sales markets, from the continued availability of sufficient barley to 

the prospect of export tariffs. As we confront these challenges you 

can rely on the whole leadership team to plan and anticipate 

effectively. 

It goes without saying that this year has been another example of the 

successful teamwork which characterises your company. On behalf of 

the board I extend thanks to everyone who has worked so hard, in all 

areas and countries, to make this another successful year for 

Muntons. 

The new year has commenced well and we are already seeing steady 

improvements in the trading position. We are working well within our 

banking facilities and with our positive cash generation are continuing 

to assess new projects for 2017 which can enhance sustainability. 

Your company has many opportunities for growth and we will 

make sure we take them. 

Paul Wells, Chairman 

2 3 

Discover more at: www.muntons.com 

Muntons PLC Annual Review 2016


made by muntons: 

the place, people & product 

MANAGING DIRECTOR’S REPORT 

Malt is a marvellous ingredient. It brings majesty to beer and whisky and magic to a whole range of 

everyday and exotic foodstuffs. From malt loaves to malt beverages, soups to sauces, colas to cakes, 

the list is as long as we wish to make it. It is such a privilege to lead our people in a business with 

the success we have enjoyed and the potential still yet to come. Yes, we are passionate about malt 

but we are also passionate about Muntons. 

Welcome to this year’s Annual Review this time designed in a 

magazine type format. “Muntons Made” is aimed at showing, 

in a hopefully highly readable fashion, how valuable malt is as 

an ingredient and of course the pride we have in our people and 

our sites. 

If I had to summarise 2016 in two words I think they would be 

“eventful year”. The repercussions of the decision to leave the 

European Union are still reverberating around our operating 

environment. The shock waves will continue to do so for some time 

as we understand and adapt to the consequences of the negotiated 

details of our exit. There will be effects on currency which in turn will 

affect raw material prices as essentially all grain in the world has a 

direct link to the US dollar. If the pound remains weak then we will 

have competitive advantage selling into certain markets balanced, 

as I say, by increased barley costs. And will farmers be able to 

maintain the right levels of commitment to growing our undeniably 

specialist malting barley crop in light of this uncertainty? The subject 

of trade tariffs and bilateral agreements hangs heavy too. Maybe we 

will have some answers in 2017! In the meantime, we will just get on 

with it. We are all Brexiteers now! 

Malt sales at 98.5% of budget, whilst respectable, were affected by 

delays in customer offtake through causes outside of their control. 

We achieved record production levels in Malt and continued high 

performance figures for extracts and powders in our Ingredients 

division. Whilst performances in the USA and from the joint venture 

were below par, our intention is to continue to address issues in 

both of these areas as they offer such huge potential, providing 

great building blocks for the future. Along with these volume 

increases we are also seeing margin enhancements, which bode 

well for ongoing profits. 

Harvest 2016 was an eye opener for many, a very volatile period 

following unusual weather patterns and fuelled by post referendum 

currency chaos. Winter barley in East Anglia was poor, the worst 

quality for many years, whilst the Yorkshire crop was much nearer 

normal. Spring barleys came through well though and more than 

made up for the winter deficit, but at a price, as the weak pound 

pushed levels up. Our challenge was to time grain pricing with the 

most advantageous movements in sterling. Areas of East Anglia also 

had problems with ergot, a fungal infection of the barley ear which 

matches healthy grain size for size. Many of our competitors 

appeared to fail to see the amount present in deliveries, which 

did restrict supply to us for a while as sellers took the easy, if risky, 

option to sell elsewhere. Our new Stowmarket intake and drying 

plant therefore was never subject to harvest pressure as intended 

although our intake team certainly were pressured as they diligently 

dealt with the consequences. 

Looking forwards, our new SAP S/4Hana computer system will 

enable far quicker and improved understanding of the details of 

our business. Couple this with our major investment in a new grain 

drying facility and our ability to buy as effectively as possible is 

significantly enhanced. Being able to handle a far greater volume 

of grain immediately after harvest puts our grain buyers in a strong 

buying position whilst, at the same time, securing the supply chain in 

a collaborative way. As always, we are conscious of the importance 

of controlling input costs. In spite of the uncertainty that Brexit has 

introduced we are an agile business with hedging policies in place 

designed to minimise risk and gain maximum advantage. 

We continued our capital investment programme looking to ensure 

the sustainability of the business, involving almost £6M invested in 

projects to improve our efficiency and our product quality. We topped 

the tables as favoured suppliers to many customers and maybe due to 

Brexit uncertainty we completed sales much earlier than customary, 

which will ensure high levels of profitable activity through 2017. 

There were many other positives and some of these are featured 

in this Annual Review. We are confident that we can move forward 

now and expect to enjoy an active year in 2017. 

Alan Ridealgh, Group Managing Director 

wishful 

DRINKING 

Malt extract has been used in hot bedtime drinks 

for years but is also delicious in chilled milkshakes 

or ‘malts’ as they are called in the USA and as a 

refreshing energy drink in Southeast Asia. Shake up 

your milkshake with a dash of malt to bring out its 

irresistible flavour and transport yourself to 

your very own American Diner. 

4 5 




NEWS IN BRIEF 

Sensational 

summer salad 

A perfect light lunch 

WE’RE 

COMPLETELY 

BATTY! 

positive 

energy 

£2.6 million has been invested in our grain 

intake area, creating not only a faster and 

more streamlined facility, but one that lowers 

our energy consumption and reduces the 

number of local truck movements. 

Looking for a lovely light lunch then look no further. A dash of 

malt extract in the mustard vinaigrette and crispy smoked bacon 

coated with malt extract, grilled to perfection, add the perfect 

finishing touches to this fresh mixed salad. With onions pickled 

in malt vinegar and crispy croutons baked using malt flour you 

might think that salads were made with malt in mind. 

From willow tree to cricket pitch: How 

trees felled at Muntons have been made 

into cricket bats. A new crop for the 

maltster to work with. Howzat! 

In October, we officially opened our new grain drying 

facility with a well-attended ribbon cutting ceremony, 

seeing the High Sheriff of Suffolk, WB Kendall Esq DL, 

on ribbon cutting duty. This was a major investment 

for us, designed to ensure that we remain sustainable 

by using only the very best technology available. This 

not only increases our ability to process grains more 

rapidly but the installation of the 26-metre tall, 

state-of-the-art, grain dryer also significantly reduces 

our energy consumption, offering improvements in 

efficiency of 40%. 

Other improvements made at the same time include 

a second weighbridge, new grain intake pit, the 

construction of a 1,300-tonne grain storage silo 

and the refurbishment of our other existing silos. 

These new facilities mean that we are now able to 

handle 140 tonnes of grain per hour, greatly improving 

the turnaround of vehicles delivering grain. Additionally, 

we have created a new one-way traffic system on our 

site to improve safety by further separating vehicle 

and pedestrian movements. 

Every thirteen years or so, we arrange to have an expert team ‘fell’ 

our latest crop of purpose-grown willow trees. This year, nine trees 

were felled which will be turned into a fine crop of cricket bats ready 

for next year’s sporting season. As soon as they were cropped, eleven 

more trees were planted to ensure that the cropping tradition 

continues. Growing these trees does not just provide wood for 

cricket bats though, the young saplings are good for the 

environment too converting carbon dioxide into fresh oxygen. 

Not all willow trees can be used to make cricket bats though. 

Weeping willow trees for example cannot be used. The ideal 

willows are Salix Alba Caerulea (Cricket Bat Willow), which are 

ready for cutting when the trunk has a circumference of about 

1.5 metres (60 inches) when measured 1.5 metres from the ground. 

The Muntons site at Stowmarket has a managed flood plain running 

alongside the river, which provides exceptional conditions for cricket 

bat willows. The roots of the trees benefit from the moist soil and the 

trees thrive. This year we plan to have a few commemorative bats 

made for posterity – and the occasional Muntons cricket match. 

6 7 




well worth 

waiting for 

Making top quality, single malt, Scotch whisky starts with the 

sourcing of the finest raw material – malt of course. But even after 

mashing, fermentation and distillation using pure Scottish water, 

in a distillery based in Scotland, it will not be deemed to be good 

enough to sell as single malt Scotch whisky until it has been stored 

and matured in oak casks typically for at least ten years… 

During the maturation process, the 

permeable oak casks allow air to enter 

and evaporation to occur, allowing the 

harsher constituents of the new spirit to 

be removed leaving a mellow and more 

rounded whisky. To be called single malt 

Scotch Whisky, it must be made and 

matured in Scotland using only malt and 

water, without the addition of any other 

cereals, from spirit from a single distillery 

made by batch distillation in pot stills. 

Muntons has been supplying malt into the 

Scottish distilleries for many years – in fact 

our maltings at Bridlington was built 

specifically with this in mind more than 

50 years ago. Today there is a growing 

interest in Scotch whisky from all over 

the world and, with 90% of all Scotch 

produced being sold overseas, it is one 

of Britain’s leading exports, contributing 

more than £4 billion towards the balance 

of trade. 

Distilling spirit from malt is not however 

just restricted to Scotland, there is a 

growing craft distilling industry in England 

and the USA and, of course, Japan has long 

been a manufacturer of highly reputable 

distilled spirits made using imported malt. 

Here at Muntons we are proud to be the 

supplier of choice into the distilling industry. 

Adam Jaime 

8 9 




Of the 18 species of bat in 

the UK at least 3 are known 

to be at Muntons. Staff using 

bat detectors spotted Noctule, 

Daubenton’s and Common 

Pipistrelle bats one evening. 

Anaerobic digestion at the Stowmarket site produces methane, 

which is used to generate electricity. Between this and the 

output from the photovoltaic panels at our Bridlington site, 

we can generate sufficient electricity to cover over 8% of our 

combined site needs. Power used where it is generated – good 

for the environment (and Muntons too). See for yourself – 

www.psmuntons.com/portfolio/live-energy-usage 

proudly sending 

ZERO WASTE 

TO LANDFILL 

We’ve donated a number of site bicycles to the ‘Re-cycle’ project, who 

will ship them to their African partners to run bicycle projects across 

the continent. Millions of people in Africa are forced to walk on 

average four hours every day to get to school, work or to carry heavy 

loads such as water, crops and firewood. The Re-cycle bicycles can 

cut these journey times down to as little as 20 minutes. 

Finding practical ways to introduce sustainability into the 

way that business is conducted, led us to coin the phrase 

‘P.S. Practical Sustainability: it’s no afterthought’ as 

our strapline. We strive to champion our green agenda 

and enable our business, and other businesses 

within our supply chain, to flourish. Interested? 

To find out more about Practical Sustainability 

visit www.psmuntons.com 

We are the first maltster 

in the world to prove 

by external verification 

that 100% of our malt 

is grown sustainably. 

The development and 

implementation of a 

usable carbon footprint 

calculator, has helped 

us reduce the carbon 

footprint of the malting 

barley we source by 

nearly 40%. 

3,000 tanker movements per year were saved following 

the construction of our anaerobic digestion plant, saving 

around 340 tonnes of CO 2 emissions from the lorries. 

£11.3m 

Investments in 

green initiatives 

over the past 

6 years 

Using a number of innovate techniques, non-hazardous waste to 

landfill was reduced to zero at Muntons Stowmarket site during 

the 2016 year. All waste is now either recycled or recovered. The 

challenge initially was to try not to create waste in the first place 

but where this was unavoidable, anything being sent to landfill was 

clearly identified and alternative ways found to recycle or recover 

these using physical and biological processes. Waste not… 

over 3,000 trips 

We are committed to a continuous 

reduction in energy use. Since 

our campaign started in 1999, we 

consistently achieve better than 

the Government emissions targets, 

gaining us a reduction in our 

Climate Change Levy. 

10 11 




pure pleasure 

BY THE PINT 

Malted cereal grains are the meat and 

potatoes of beer. They provide the sugars 

fermented by the yeast to create alcohol 

and CO 2 and are the primary source of 

beer colour, contributing significantly 

to flavour and mouthfeel. Barley malt 

is the most common of the malted grains, 

although others such as wheat, rye and 

oats can be used. In addition to malted 

cereals some brewers may choose to 

use un-malted grains – maize (corn), 

rice, wheat, rye, oats and sorghum 

for example. 

Malting is the process of controlled 

germination, and kilning of the grains. 

This activates enzymes within the 

grain that start to break down the 

hard, starchy insides into simpler 

carbohydrates, making them more 

accessible for the brewer. 

Kilning introduces differing degrees 

of colour and flavour to the grains. The 

most commonly used malts in the brewing 

process are ‘white malts; mainly for ale or 

lager malts, which provide base sugars 

for the yeast to ferment and introduce 

a characteristic light malty flavour. 

Crystal or caramel malts are made by 

allowing enzymes to convert complex 

carbohydrates into simple sugars in the 

grain before kilning. Kilning then 

caramelises these sugars in the grain. 

They are often added to introduce extra 

colour and interesting ‘fruity’ flavours to 

beer. Roasted malts (and some un-malted 

cereals) have their colour intensified 

during the roasting process and are 

added to beers primarily for their 

intense colour in darker beers, such as 

ales through to porters and stouts. 

12 13 




TECHNOLOGY 

A new dawn for 

OUR DIGITAL 

LANDSCAPE 

BRIGHT 

SPARKS 

ONLY 

Being able to communicate effectively is vital 

for any business and this is particularly 

true for internal communications within the 

business itself. Muntons is growing, with its 

footprint stretching internationally, therefore 

the sensible step was to invest in the 

building and establishment of an intranet to 

help with staff communications. 

Accurate and timely information is the bread and butter of business, 

providing the basis from which important decisions are made. The 

current SAP system at Muntons has been providing our business 

information for the last 17 years but the time has now come to upgrade 

to a new state-of-the-art information solution: SAP S/4Hana. 

A firm foundation is crucial when building 

a solid, strong structure and the same is 

true when building and planning a business. 

As with a building, the design, layout and 

construction of the footings is vital and the 

same is true for Muntons new Enterprise 

Resource Planning (ERP) tool S4/Hana. Having 

decided which ERP solution would be the best 

fit for us, we entered the blueprinting phase 

of the project. Staff from all areas of the 

company were co-opted into the project, 

to ensure that the new system was designed 

correctly to provide the information needed 

in every area. This work was undertaken 

without qualm, as its importance to the 

business was clearly recognised. The team 

tackled this with enthusiasm and dedication. 

This phase has effectively nailed down the 

final design of the system ready for its 

construction. 

The next phase was to move the project 

nearer to realisation as each of the 

blueprinted documents were ‘signed-off.’ 

Testing and tweaking and retesting are 

now taking place as the project moves 

nearer towards completion – scheduled 

for the middle of 2017. 

Once complete, and after training, we 

will begin to feel the benefits of the new 

S4/Hana ERP system. Improvements in real 

time planning, reporting and analytics based 

on live data will provide opportunities for 

significant business benefits. 

Image courtesy Sally Wilson 

Having selected the platform and constructed the intranet to reflect 

our corporate style, the process of populating the intranet started. 

Department pages were setup and the media library populated 

and tagged and a team were drafted in to fill the intranet with 

useful and easy-to-find information. But the name? This needed 

some work. A competition was organised designed to engage the 

staff themselves into using their creative skills to offer suggestions. 

The winner (Dave Mugglestone, Head of Quality, Food Safety and 

Environmental Systems) was indeed a bright spark who, after 

dropping the suggestion ‘Spark’ into the mix, picked up the prize 

of a brand spanking new Kindle-Paperwhite. 

Spark is used to share news stories around the company and inform 

staff of corporate activities and successes. Information vital to the 

staff, such as what’s on the menu today in THE canteen is easily 

accessible through Spark, as is access to our corporate vision, 

mission and values. More useful however is the ability to download 

up-to-date forms, presentations, templates and to be able to search 

for images from the extensive media library. The system is relatively 

intuitive, so everyone here can now feel the benefit. 

14 15 




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. 

16 17 




Our most decadent 

dessert 

If you are seeking the ultimate dessert to round off 

your dinner party, a real statement piece, then look 

no further. Muntons has developed this delicious 

dessert to showcase the versatility of malt. Our 

recipe, one of many available on our website, calls 

for the inclusion of Lindt chocolate and Maltesers, 

both of which are made using malt, which imparts a 

rich smoothness and mouth-warming malt flavour, 

making this an outstanding malted quartet. 

Malt has a place in an amazing variety of 

confectionery, cakes and cookies; from the obvious, 

malted milk biscuits, to perhaps the less obvious - 

products such as chocolate muffins. Malt is not just 

used to add maltiness, it can be added for flavour 

or colour enhancement, to add texture, increase 

humectancy or to simply add a lovely shine. 

Malt is a natural ingredient and, in its extracted 

form, is low in fat, a good source of fibre, protein, 

vitamins and complex carbohydrates and, because 

it falls in the ‘low’ category in the glycaemic index, 

it offers a slow release of energy rather than 

introducing a sugar ‘high’. 

Made using crushed malted milk biscuits 

as the base, malt extract in the cheesecake 

filling and topped off with melted Lindt 

chocolate and crushed Maltesers, our 

Quadruple malted cheesecake is the ultimate 

in decadent luxury. A perfect melt-in-themouth 

malty masterpiece. 

18 19 




COOKING UP A STORM – MEET 

OUR NEW CATERING APPRENTICES 

Every year Muntons runs approved 

apprenticeship programmes designed 

to offer real world training for the 

apprentices. This is an excellent way 

for hands-on students to get a 

qualification, get experience, get 

paid and at the end of their term 

stand a good chance of getting a full 

time job at Muntons as well. 

Apprenticeships have always been a great 

way of learning jobs such as engineering, 

where getting your hands dirty and fixing 

problems are everyday experiences. But 

there are also apprenticeship opportunities 

in other areas too. 

In 2016 we created two new apprenticeship 

positions, in conjunction with our catering 

partner, Churchill Catering, providing an 

opportunity to learn more about catering 

and creative food preparation and 

manufacture. Hannah Fayers and Charlie 

Duffy, our two apprentices, rotate their 

time between the busy canteen and 

Muntons state-of-the-art Centre for 

Excellence, spending seven weeks in each, 

four days a week, where they learn about 

the manufacture of malt and malted 

ingredients and how to incorporate these 

into wonderful food dishes. Add to this 

one day a week at college and at the 

end of their 18 months they will pick 

up a level 2 qualification and earn a 

decent wage for their efforts. 

Apprenticeships are not just good for the 

student, they offer Muntons the chance 

to really get to know the strengths of the 

individual and allow them to develop 

skills that will bring benefits to the 

company as well. 

Both Hannah and Charlie were delighted 

to have been selected for these new roles, 

seeing this as a real challenge and an 

excellent opportunity to develop new 

skills and gain two useful qualifications. 

We were equally pleased to have found 

two such enthusiastic and cheerful people 

for our new hospitality and professional 

cookery positions. 

FOCUS ON EDUCATION 

HEADING FOR TOP SPOT 

Melissa Abbott has been appointed 

National Vice Chairman of the Brewing, 

Food & Beverage Industry supplier’s 

association (BFBi), the first time this 

role has been held by a woman. This 

is a two-year appointment and after 

this period usually leads to the position 

of Chairman. Not only is this a success 

for ‘girl power’ but Melissa is also one 

of the youngest people ever to have 

held this post. 

The BFBi is an historic association, founded 

in 1907 and known then as the Allied 

Brewery Traders Association. It has a rich 

history of achievements for its members 

representing the food, brewing and 

beverage industry at Governmental level. 

They bring together representatives from 

across the industry offering an opportunity 

for face to face discussions. They also 

organise trade days and social events such 

as cricket matches, charity cycle runs and 

quizzes - informative and fun events 

presenting ideal opportunities for 

networking within the industry. Having 

such a young, enthusiastic vice chairman 

should bring some youthful energy and drive 

to the association to ensure that it continues 

to bring benefits to its members and the 

community at large. 

In addition to the BFBi appointment, 

Melissa has also recently been made a 

Trustee of the Essex and Suffolk Rivers Trust. 

This appointment sits comfortably with her 

work at Muntons, where she is involved in 

environmental and sustainability initiatives 

throughout the supply chain. Last year she 

helped to create a series of wildlife walks 

within Muntons 45 acre Stowmarket site 

through which runs the River Gipping – 

walks much enjoyed by Muntons staff 

during their breaks. 

IT’S OFFICIAL: 

Alan is a 

jolly good 

fellow! 

Last year it was reported that the University 

Campus Suffolk had awarded an Honorary 

Fellowship to the Managing Director of Muntons. 

This year another Fellowship is bestowed. 

Having already awarded Alan Ridealgh an Honorary 

Fellowship of the University Campus Suffolk, one of 

the highest awards that the University can bestow, 

they have now decided to make Alan another Fellow 

of the University. On this occasion, they have made 

Alan a Visiting Senior Fellow in Food Manufacturing 

and Sustainability in the Department of Science and 

Technology. A position which will run for a minimum 

of three years. 

This Honorary Fellowship will see Alan working more 

closely with the local University, as he helps to 

explain ways in which the role between sustainability 

and food manufacture can be developed and 

improved. Enhancing ties between business and 

educational institutions is a fundamental part of 

Muntons drive towards the integration of Corporate 

Social Responsibility (CSR), within our organisation. 

It is hoped that this close co-operation will see the 

creation of joint projects and perhaps even the 

sharing of equipment and technology. 

Muntons sent complete homebrew starter systems 

to the University as examples of ‘Science in a box’ 

for the Senior Lecturer in Bioscience, Dr Christopher 

Turner, to share with his students. This offers a 

practical demonstration of the effect of yeast on 

fermentable sugars. As a by-product, it also shows 

how to brew a very acceptable beer too. 

FROM STOWMARKET 

TO SWAZILAND WITH A 

LITTLE HELP FROM US 

Seventeen students from Stowupland High School embarked on a world challenge 

event which would see them flying out to South Africa then across to Swaziland to 

help in a children’s orphanage for two weeks. Each of the students needed to raise 

money themselves to pay for the trip – nearly £3,000 each. 

Student Imogen Flack had already made good progress in raising funds but came up with 

the bright idea of contacting some local companies to see if they would assist. So, when Alan 

Ridealgh, Managing Director, heard of the challenge he immediately offered to help. The 

details of the trip were quite eye opening, as Imogen and her teacher Amy Keeble explained 

the challenges the students will face and the good work they will be undertaking; work likely 

to be life changing experiences for the students. Alan was quick to applaud Stowupland High 

School for undertaking this initiative. 

Alan Ridealgh and Dawn Knights handed a cheque for £270 to Imogen to help with her fund 

raising, whilst also providing a supply of useful items to help with the trip, including a fleece, 

polo shirt and beany hat to keep her warm during the cold nights in her tent. 

The other students were not forgotten however and we also provided sufficient polo shirts 

for all the students and the teaching staff undertaking this challenge. The shirts will be passed 

over to the orphanage, rather than bringing them home as good quality clothing is in short 

supply in Swaziland. 

Dawn Knights, our charity coordinator commented: “The climate in Swaziland can be quite 

extreme, with hot dry days and freezing nights, this coupled with the ‘trowel-based’ sanitary 

facilities and canvas sleeping arrangements will in themselves prove challenging enough 

for the students, this before they even start helping with the children themselves. They are 

very brave.” 

Although we export our products to 76 countries and have first-hand experience of conditions 

in overseas markets, to date Swaziland is not one that we currently supply - yet. 

20 21 




CUTTING EDGE LABORATORY 

UPGRADE GETS RESULTS FAST 

the undiscovered 

ingredient 

Measurements are important in business, helping us to make comparisons and meaningful 

choices. They are very important when it comes to the selection of raw materials and ensuring 

that the products we make meet the expectations of our customers. Having the facility in place 

therefore to be able to make accurate and repeatable measurements is vital – and this is where 

the laboratory at Muntons comes into play. 

Making accurate and repeatable measurements is crucial to ensure that 

we are both buying and selling products to the correct specifications 

but equally important is having the information available in a timely 

fashion. Almost all of our products are positively released. They cannot 

be sent to a customer unless they have been checked and cleared 

through our laboratory and meet the specification for the product. To 

achieve this, it is important that the laboratory have an experienced 

trained team who understand how to undertake the measurements 

and meet the deadlines laid down to ensure timely despatch. 

Times change and developments in new technology offer better and 

faster ways to make these measurements. During this financial year, 

significant investments have been made which have given us the 

necessary tools to ensure that we are at the forefront of our industry. 

Take a seemingly simple task such as measuring the nitrogen and 

protein content of barley. There was a time when measuring nitrogen 

in barley would take an hour, now with a calibrated ‘LECO’ instrument 

we can do this in five minutes. Even quicker at just one minute with 

our near infra-red (NIR) analysis device, which provides an accurate 

indication of the quality of barley, helping to improving the speed of 

turn-around of barley deliveries. We are now starting to expand this 

technology into other parts of the business with the purchase of the 

latest generation NIR analyser, which can deliver the fast turn-around 

analysis needed for our malted ingredients samples. 

Another investment was the purchase and installation of a new dust 

extraction safety cabinet for our Miag mill, used every day for grinding 

all malts for hot water extraction. Not only does this provide a safe 

working environment for our staff, but also ensures a solid structure for 

delicate analytical equipment. Not all of the work undertaken within 

the lab is for Muntons, we also offer, and undertake, analysis work for 

external institutions, and, as part of a crop trials system, we micro-malt 

and analyse samples of barley to assesses the suitability of new barley 

varieties for brewing and distilling. 

Our anaerobic digestion (AD) plant also demands a level of laboratory 

control to ensure it is running at its optimum capability and we have a 

dedicated team in place to ensure this happens. Our plant has now had 

a full year of continuous activity and during this time it generated 

2.44GWh, enough to provide 14% of our entire Stowmarket site 

electricity, or to put it another way, enough electricity to provide power 

for over 500 average UK houses. 

There are however other outputs from our AD plant which are proving 

to be of interest. After our malted ingredients residue has been 

through the AD process it is pasteurised and centrifuged into a suitable 

condition to sell as a biofertiliser. Research has been conducted with 

Lincoln University to determine the efficacy of this compared to 

artificial fertilisers and this has shown that in greenhouse trials, our 

biofertiliser improves lettuce growth more than the simple nutrient 

content offered by artificial fertiliser. Research into this crop enhancing 

property will continue. Meanwhile, samples of our digestate from 

within the AD reactor were sent to University College London and it 

was analysed as part of their ‘Swab and Send’ project, aimed at finding 

new antibiotics. We were pleased to discover that our AD plant 

appears to produce antibiotics that could potentially be developed as a 

medicine to combat Micrococcus and multi drug resistant E. coli. 

Further research is being undertaken to identify the strain of bacteria 

found and the compound that it is producing it, to determine if it is 

something novel. Medicine from waste, whatever next? 

We love malt, and judging by the number and variety of foods and 

beverages made using our raw materials, so it appears do consumers 

all over the world. Most people probably eat or drink something made 

using malt every day, yet how often is it used in home cooking? 

One of our challenges is to bring the benefits of malt to the 

masses and encourage the consumer to see malt 

extract as a store cupboard ingredient. 

As our customers discover the benefits 

that malt can bring to their products, the 

diversity and variety of applications using 

malted ingredients grows every year. As 

food and drinks manufacturers strive for 

cleaner labelling, malt as a natural 

product is favoured over more highly 

processed ingredients. Consumers want 

natural ingredients, a trend which is 

making our ingredients more popular 

than ever. But the world is a competitive 

place, so our efforts are clearly focused on 

growing interest in our company and our 

products around the world. 

Our joint venture in Asia is a bold step, 

as historically all our manufacturing has 

been undertaken as near to our main raw 

material as possible - in the main malted 

barley growing regions of the UK. This 

new joint venture marks a step change, 

as we begin manufacturing nearer to the 

market itself. Malt extract made in our 

plant in Stowmarket is shipped to 

Thailand to be blended with local 

ingredients. This blend is then dried into 

a stable powder on our new vacuum band 

dryer. Not only are we introducing the 

benefits of UK malt but we are making 

a final product tailored to meet the exact 

tastes of the local market. Investment 

today to bring prosperity tomorrow. 

In the USA, we moved the offices of 

our American company, Muntons Malted 

Ingredients Inc., eastwards, from Seattle 

to the suburb village of Lombard, on the 

outskirts of Chicago. Positioned in the 

best location to maximise the business 

potential from North American customers. 

We have also expanded our US 

warehousing facility to include a new 

outlet in Denver Colorado, making it 

easier than ever for our US customers 

to buy our products. Looking further 

southwards, we are also increasing our 

reach, growing sales into markets across 

South America. Our network of agents 

and distributors are also important 

contributors to our global success and 

to ensure they are up to date with our 

products and processes we held two 

conferences during the year. The first 

in Düsseldorf for our European partners 

followed by a similar event in Bangkok 

for our agents and distributors from the 

Asian Pacific region. In June, our sales 

managers for the US, Asia and Europe 

joined with our UK team to share their 

challenges and successes and jointly learn 

about new applications for malted 

ingredients and explore market 

developments and trends. 

As we continue to see increases in sales 

of our extracts, this brings a fresh set of 

challenges for our production, planning 

and customer services teams. It is at times 

like this when our values are brought to 

the fore and our trusted, creative and 

agile teams work together to ensure 

that our future is truly sustainable. 

22 23 




malt – 

naturally! 

This financial year we completed a major 

investment project, updating our 

Stowmarket grain handling facility. 

£2.6 million was spent, not just in new 

grain drying facilities, but in the 

construction of enhanced barley storage 

and refurbishment of the existing grain 

silos. This major investment will pay 

dividends in the coming years through 

a reduction in our energy costs and the 

faster throughput this will bring. It is this 

type of forward looking investment that 

places us on a firm footing for the future. 

Production output at both our 

Stowmarket and Bridlington maltings 

peaked at record annual volume levels, 

producing a combined group malt output 

for the year of over 194,000 tonnes. 

This was achieved through innovation, 

a review of our malting processes and 

good teamwork. This additional malt 

production output was matched with 

increased sales to both the global brewing 

and distilling industries. A high level of 

Malting brings a range of nutritional benefits compared with 

basic cereal grains such as enhanced levels of folate (vitamin B9), 

considered by some to be one of the vitamins lacking in the Western 

diet, and silicon, essential for proper development of collagen and 

bones. Malt is used in a multitude of products but the main 

large scale user of malted grains is the brewing and distilling 

industry, accounting for 95% of global production. 

customer care was required and our 

customers’ expectations were diligently 

managed by our dedicated customer 

services team lead by Hannah Cappleman. 

We completed the year achieving a 

creditable 98.5% of our sales budget, 

a figure which would have been higher, 

had a few unforeseen events not occurred 

preventing our customers from taking 

deliveries. 

Our sales into the UK craft brewing 

market have increased by 30% over the 

last two years. This is a reflection of the 

increasing number of breweries, and beer 

drinkers enjoying craft beers, but also our 

increased sales activity through our 

expanded sales team in the UK. In the 

USA, we have seen increased demand 

from the fledgling craft distilling sector 

which, coupled with continued growth 

in market share from the craft brewing 

sector, provided further sales 

opportunities. To capitalise upon this, 

we attended a number of brewing and 

distilling exhibitions in the USA, adding 

our support to the resident Muntons 

Malted Ingredients Inc. sales team. Other 

global trade events were attended by our 

sales team including brewing exhibitions 

and conferences in the UK, Germany, 

Spain, Australia and Vietnam to support 

increasing sales opportunities and 

partnerships. 

The short-term Brexit effect was to 

immediately weaken the value of Sterling 

against the Euro and USD which has aided 

our export drive leading to increases in 

overseas volumes, particularly into South 

East Asia. Whilst there will be some 

uncertainty as we manoeuvre ourselves 

out of the EU, we are confident that we 

will continue to remain competitive in the 

global arena. In the latter part of the year 

we lodged plans to construct a new 

dedicated malt peating plant in the 

North of England close to our Bridlington 

maltings, to support our future sales 

growth to the global distilling markets. 

SPLASH IT ON 

Malt vinegar will pucker up your taste buds 

but may bring other benefits too. Latest research 

suggests that malt vinegar might offer nutritional 

benefits. The acid in malt vinegar may help 

with weight management, help control blood 

sugar levels and promote a healthy heart. 

Stand in the high street with a clipboard and ask people what malt is. 

Chances are that they might mention malt whisky, malt vinegar or that 

it is used in beer. If you are very lucky they could introduce hot malted 

milk drinks, malted milk biscuits or malt loaf. One respondent assured 

us that it was something their cat did in the summer! What was 

interesting, was that malt vinegar featured high on the list. 

It is believed that vinegar was first discovered over 7000 years ago but 

it was Louis Pasteur in 1865 who unlocked the secret of acetification 

through his scientific work. Malt vinegar is made by using a two stage 

fermentation process, the first to create alcohol, the second to convert 

alcohol to acetic acid. Today it has become a store cupboard ingredient 

used in a vast array of food dishes because of its tangy taste. Pickled 

onions, pickled gherkins and pickled cabbage just would not taste as 

good if they were pickled in anything other than Malt vinegar. Malt 

vinegar is big business – a business that we are proud to supply. 

24 25 




OUR YEAR IN NUMBERS 

SALES TURNOVER (£M) 

105 

100 

95 

90 

85 

80 

75 

70 

7 

6 

5 

4 

3 

2 

1 

0 

-5 

0 

2012 2013 2014 * 2015 2016 2012 2013 2014 * 2015 2016 

2012 2013 2014 * 2015 2016 

Malt & MI 

Other 

Sales tonnage has increased by 5% from 

2015, but turnover has decreased in line 

with the drop in raw material prices and 

change in product mix. 

CAPITAL EXPENDITURE (£M) 

12 

10 

8 

6 

4 

2 

0 

-2 

2012 2013 2014 * 2015 2016 2012 2013 2014 * 2015 2016 

Expenditure on capital items was £5.7m, 

reflecting the ongoing level of strategic 

investment which included the new barley 

intake and the SAP project. 

RETURN ON CAPITAL EMPLOYED – 

EXCLUDES EXCEPTIONAL ITEMS % 

25 

20 

15 

10 

5 

0 

Return on Capital Employed has decreased 

from 2015 due to the increased investments 

being undertaken for the future. Increased 

earnings due to these investments will be 

recognised in future periods 

EARNINGS BEFORE INTEREST, TAX, 

DEPRECIATION AND AMORTISATION 

(£M) (EBITDA) 

Depreciation 

Interest 

Profit / Loss Before Tax 

Finance Charge on FRS 17 Deficit 

EBITDA decreased marginally from 2015, 

reflecting the expenditure undertaken in 

order to get the Joint Venture to the point 

of manufacture. Also there has been a higher 

proportion of sales to export markets at 

slightly lower margins. 

BORROWINGS (£M) 

30 

25 

20 

15 

10 

5 

Long Term 

Short Term 

Net borrowings have decreased due to cash 

generated from operations and a slight 

reduction in stock holding. A significant 

level of investment is being maintained 

year on year. 

* The 2014 figures are pro rata from a 

66 week period to a comparative 52 week. 

SUMMARY GROUP INCOME STATEMENT 

Restated 

2016 ** 2015 ** 

£’ 000 £’ 000 

52 weeks 52 weeks 

Turnover 90,330 91,493 

Cost of Sales (65,595) (66,245) 

Gross Profit 24,735 25,248 

Administration and Distribution Costs (16,020) (16,292) 

Profit before interest 8,715 8,956 

Share of loss in joint venture (677) (261) 

Interest Payable (959) (1,035) 

Other Finance Charge 454 185 

Profit before tax 7,533 7,845 

Tax on Profit (1,649) (1,824) 

Profit after tax 5,884 6,021 

Earnings per Share 691.0 707.0 

SUMMARY GROUP STATEMENT OF FINANCIAL POSITION 

Fixed Assets 30,579 28,467 

Current Assets 45,483 45,871 

Current Liabilities 27,606 26,200 

Net Current Assets 17,877 19,671 

Total Assets less Current Liabilities 48,456 48,138 

Long term Creditors (10,915) (12,930) 

Deferred Tax (270) (300) 

Net Assets before Pension Liability 37,271 34,908 

Pension Liability (10,109) (8,958) 

Net Assets 27,162 25,950 

Share Capital 852 852 

Reserves 26,310 25,098 

Total Shareholders’ Funds 27,162 25,950 

SUMMARY GROUP STATEMENT OF CASH FLOWS 

Net Cash from Operating Activities 9,444 4,406 

Net Cash from Investing Activities (6,249) (4,096) 

Net Cash used in Financing Activities (3,537) 49 

Net (Decrease)/Increase in Cash and Cash Equivalents 

(342) 359 

Cash and Cash Equivalents at the beginning of the year 

(10,012) (10,371) 

Cash and Cash Equivalents at the end of the year (10,354) (10,012) 

** This financial information has been provided prior to the completion of our statutory accounts. 

26 27 



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Muntons Annual Review 2016

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