The newsletter for customers, partners and business contacts of the Franke Group October 2007 Franke international Franke takes over Defy, South Africa’s leading manufacturer of domestic kitchen appliances Editorial Major expansion of position on the African continent Defy Appliances Limited, South Africa's largest and leading manufacturer of domestic kitchen appliances, with a workforce of 3,000, has been part of the Franke Group since the beginning of August. This strategically important acquisition underlines Franke's ambition to expand its presence in the burgeoning African market, opening up further attractive prospects south of the Sahara. Esteemed customers, © christian sperka I am delighted to welcome Defy Appliances Limited of South Africa as a new member of the Franke family. Defy is by far the largest producer and distributor of domestic kitchen appliances in South Africa and other countries in sub-Saharan Africa. Defy has large synergies with our activities to date in South Africa and is an excellent fit with our expansion strategy. Turnover was encouraging in 2007, although revenue was below expectations as it was adversely affected by steel price increases, much of which we had to absorb. We nevertheless made substantial investments this year, upgrading production facilities, pursuing expansion and improving our logistics capabilities. Thank you for your valued attention. "It was just a perfect match", says Wolfgang Kemmeling, the Franke Group executive responsible for Kitchen Systems, reflecting on the final takeover in August of Defy Appliance Limited, South Africa's leading manufacturer of domestic appliances. There were clear parallels both in the companies’ structures and above all in the philosophy of both organizations, as quality, innovation and reliability had always been the overriding considerations determining the actions of both manufacturers. Defy produces and sells stoves and ovens as well as washing machines, refrigerators, freezers and extractor hoods. This traditional company has just celebrated its 100th anniversary, and has a share in these product markets of around 40% in South Africa. Defy currently has a workforce of 3,000 – 600 just in sales and service – with a healthy profit of around CHF 406 million in the financial year ending 31 March 2007. The extensive product range is produced in three large works located in Durban, East London and Ladysmith (South Africa). There are also nine company-owned regional sales branches in South Africa and five other sales outlets across the African continent. Franke is no stranger to the South African kitchen equipment market. The world market leader has been operating its own sink production facility in Durban very successfully since 1999, and has been active in the water boiler market since 2005 (Water Heating Systems) with its own production and sales in Midrand, South Africa. A joint venture with the South African Dawn-Group provides further scope for opening up more markets in Africa. Sincerely yours, Michael Pieper President & CEO Franke Group Congratulations Alinghi "Defy is the ideal complement to the Franke Group, and is a strategically very important key investment for Franke to form a base for expansion over the coming years as a leading supplier of kitchen systems, both in southern Africa and in the countries south of the Sahara", explains Wolfgang Kemmerling. The Defy production facility in Durban is one of three plants in South Africa. Sharing a spirit of excellence – determined to lead not to follow Team Alinghi have defended the 32nd America’s Cup in a final 5-2 score over Team New Zealand on July 3, 2007 in one of the most thrilling races seen during the whole competition. Franke had Team Alinghi supported as a "Official Supplier". During the years 2006 and 2007 more than 500 enthusiastic Franke customers headed for Valencia, Spain, to follow the races. Franke Kitchen Systems New Eisinger Techno Line, with clean geometrical styling Kitchen aesthetics in harmony with the architecture With its straight minimalist design, the new built-in kitchens incorporate the spirit of the time, with its global emphasis on clear, geometrical and aesthetic styling. Distinguished yet comfortable – high-grade yet easy-care. André Rudolf, Product Manager at Eisinger, puts it this way: "For us, design is not an end in itself, it is what we do. For years we have been tracking trends in architecture and design and applying them to kitchen products. The new Techno Line is a case in point." The exclusive design of this new range of sinks and worktops is remarkable principally for its love of distinctive, expressive details. Such as the tight 5mm radius emphasizing the stringent character of its lines whilst remaining easy to clean – unlike sinks with zero radius. The other eye-catcher is the new square strainer basket valves that ideally complement the new bowl geometry. Then there is the new elegantly concealed and remarkably hygienic overflow valve – an innovation that recently earned Eisinger one of the internationally renowned Red Dot Design Awards 2007. An extravagant selection of complete sink module variants perfectly complements the new Techno Line product range. These modules can be combined with other Eisinger lines as desired – for example with the Pure Line or Square Line sinks. And for a kitchen environment with a unique and unmistakable character we recommend the new solid stainless steel Techno Line worktops. Precision designed to the millimetre, and perfectly fitted, that's what makes dream kitchens come true. New tap puts sink in its best light The new Franke entry-level export hit Light plays an increasingly important role in the modern kitchen. It has become a key design feature, as well as lighting the spaces and work-surfaces. Because light can make a room inviting, and if skilfully deployed, can create the right atmosphere in the kitchen of an evening. The impulse behind the new "All in One" export concept was to develop a sink to delight customers everywhere, that could be successfully marketed worldwide. All in One: new sink with global career prospects The global picture is that mainly low-cost sinks have mass sales potential in most markets. The new sink needed an attractive price and a timeless modern and functional design, able to satisfy differing customer desires and needs in different regions. To make working conditions as efficient as possible, the sink has a generous bowl and practical fittings, such as a fixable cutting board, a functional tap with a high spout, a dish rack and the built-in draining bowl basket. Designed for quick and easy DIY installation, and of course all materials and workmanship of the accustomed, reliable Franke quality. By the beginning of August, everything was ready to ship the first "All in One" complete "Galley" sink sets. So light is the feature that has made the elegant new Franke single-lever mixer tap from the Belaqua range the object of attention. Fine LED lights are integrated in the spout of this stylish new tap, creating a fascinating light effect around the sink. One touch of the button creates an interesting and relaxed working atmosphere, as well as lighting up the working area. To make sure there are no slugs in the lettuce! The dealer is also issued with a complete marketing pack to ensure the sink is successfully marketed. Posters, display stands, flyers and a video help to convey the neat concept quickly to potential customers, and to clinch the sale. This reversible new sink set also gives the dealer an attractive entry-level model in the range that is simple and cost-effective to store – thanks to the practical stacking boxes – and addresses a broad target group without incurring installation costs. From singles households to young families and holiday home owners, for example. An idea whose time has come. Franke Foodservice Systems New furniture store with proven Franke Foodservice Systems solution The perfect equipment menu for IKEA restaurants IKEA Switzerland opened its 7th and most unusual furniture store so far in St. Gallen on 26 September. Once again, the equipment for the self-service restaurant comes from Franke Foodservice Systems. service only, to offer customers inexpensive eating – in the IKEA idiom. In the staff restaurant the workforce of around 250 can choose from a varied and balanced range of food. In the bistro, right beside the tills, IKEA offers customers another refreshment opportunity – at a pleasing price, as ever. To complete the picture, the Swedish Shop offers a selection of traditional Swedish takeaway specialities such as herring, crispbread and meatballs. Franke Foodservice Systems and IKEA have jointly developed standardized equipment for each of these areas, which is now supplied to twelve countries and manufactured on three continents. As part of a complex spanning the new FC St. Gallen football stadium and a shopping centre with around 50 shops, IKEA has built a home furnishing store with a floor area of 26,343 square metres, and a sales area of 13,490 square metres with 22 tills. The "Minergy Label" certified building has an area of 5,000 m2 of solar cells on the roof. The restaurant was planned and equipped jointly with Franke Foodservice Systems. Although the building and thus the restaurant space differed from the usual IKEA layout, Christian Rudolph, head of IKEA FOOD Switzerland, created a kitchen that met IKEA’s international standards in almost all respects, avoiding increased costs for planning and for designing new furniture. The Foodservice space is divided into four different areas. The customer restaurant with 425 covers is self- Franke Washroom Systems State-of-the-art electronics for Franke Washroom Systems products Touch-free: clean solutions for washrooms Touch-free solutions provide convenience and hygiene in public sanitary facilities with high traffic levels. That is why planners and operators are increasingly going for the touch-free option when fitting out institutional sani-tary facilities. Franke Washroom Systems demonstrates its competence in this field too, with numerous new developments. Franke Washroom Systems offers a wide range of touch-free fittings for optimum sanitary hygiene. The sanitary solutions specialist supplies both sanitary taps and stainless steel accessories with infra-red proximity electronics. Various touch-free products have been developed this year to match the XINOX®, STRATOS and CHRONOS equipment ranges, products such as soap dispensers, hand dryers and paper towel dispensers. The infra-red sensor technology controls the supply of soap, hot air and paper towels, so there is no need for anyone to touch the accessories. The electronic Protronic washing and urinal flushing fittings also have touch-free water flow control. The opto-electronic sensor technology has an integral microchip for automatic, efficient water flow control. The urinal flushes automatically after use, and users can wash their hands afterwards without touching the tap. One design highlight in the touch-free washroom is the "All-in-one" sanitary module. The system enables various wash station combinations to be integrated into the room-height installation modules, which can be clad with stainless steel or glass. All control and fitting components for water, soap and hot air can be integrated into the modules if desired. The only visible items are the wall outlets for water and soap, the hot air outlet and the opto-electronic sensors. Franke Coffee Systems First Marché restaurant in Asia builds on successful format Marché VivoCity Singapore: Franke Sinfonia sets the tone with coffee Barista – the espresso machine maestro Marché International opened its first own Marché™ market restaurant in Asia in March of this year. Marché VivoCity is a Mövenpick Group enterprise located on the coast of the leisure island of Sentosa in Singapore, driving the Group’s international expansion. The Franke Sinfonia is part of the team. soup, grilled fish, bread and cake, and fresh pressed juice. And the Franke Sinfonia is there again to provide the best coffee. The same coffee machine has long been in service with Marché™ in Switzerland, where it has established its reputation with its high quality and performance. The operation in Asia builds on the same success factors that have made Marché International the widely acclaimed trendsetter in Europe. The products used are of high quality, and market-fresh. The food is prepared in the presence of the guests. This Marché™ format is well received in Singapore too. For example "Rösti", made of freshly boiled and peeled potatoes, soon proved a hit, and now sells better than in a Marché™ in Switzerland! 'Exotic made in Switzerland' operates in an area of 675 m2 in Singapore; five large market stalls with more than ten stands offer classics such as pasta, vegetable, McDonald’s Germany cultivates new target groups Franke joins in celebration of the 300th McCafé in Cologne In August 2007 McDonald’s Germany opened its 300th McCafé in Cologne, integrated in a restaurant completely redesigned both internally and externally. This new flagship outlet was duly inaugurated with a press conference and a big launch party. Franke had good reason to join in the celebration, with Franke Sinfonia coffee machines in service in all 300 McCafés. Imprint Published by Franke Holding AG, CH-4663 Aarburg, Tel. +41 (0)62 787 31 31, Fax +41 (0)62 787 30 37 www.franke.com The barista (plural baristi (male) or bariste (female)) is to coffee what the barkeeper is to cocktails. He or she is an espresso machine artist skilled in preparing and serving coffee. "Barista" is the Italian word for bartender. The term has been adopted in English, with a slight shift in meaning. Whereas in Italy the barista serves drinks of all kinds, in English the term barista relates to people skilled in preparing and serving espressobased drinks – mainly in coffee shops. "Barista" is a long-established term in the world of coffee, and is gaining ground in common parlance. In America for example, every third person knows what the word means. At least 1,000 guests daily enjoy the fresh cuisine à la Marché™ in Singapore, even if it means queuing. After all, you get to experience an unusual ambience for Singapore: a 500-year-old chalet from the Bernese Oberland, a nostalgic cable car from Saas-Fee and lots of photographs bringing Swiss mountain atmosphere to Singapore. The opening of the 300th McCafé is another milestone for McDonald’s in its shop-in-shop concept: "We are aiming at continued growth with McCafé in coming years, cultivating new target groups for McDonald’s", says Bane Knezevic, CEO of McDonald's Germany. The two Franke Sinfonia coffee machines, an important part of the concept and tailored precisely to the requirements of McCafé, are to be found in all 300 McCafés. The coffee is ground and brewed fully automatically, but the milk is frothed by hand. The steam tap incorporated in the Autosteam function ensures consistent milk froth. A probe measures the temperature of the milk in the frothing pitcher. As soon as the frothing milk reaches a certain temperature, the steam supply switches off automatically, and the frothing process is complete. Coffee drinks are tastefully decorated with the frothed milk. Christin Grundmann winner of the first German McCafé Barista Contest with the Franke Sinfonia. The accomplished barista needs to know about coffee blends, roasting, operating and maintaining the espresso machines, frothing milk, etc, for which training courses are available. The competent barista is ably supported by the Franke Sinfonia and Evolution machines, both equipped with automated milk frothing, ideal for preparing the Latte Art milk froth essential for the perfect coffee. This technical advance ensures consistent Latte Art quality, and simplifies handling for the barista, so he or There are three basic she can concentrate on Latte Art techniques, creating the perfect pouring (illustrated), drawing and carving. cappuccino. The final of the first German McCafé Barista Contest was also held in the Franke Coffee Systems "Coffeerama" in Aarburg in spring of this year. Christin Grundmann of Oldenburg conjured up an exotic creation of her own with the Franke Sinfonia, adding chocolate and chilli. She outshone all 2,000 McCafé Baristi with her professional knowledge and skill. The opening of the 300th McCafé in Cologne was also the premiere for Kraft Foods' exclusive 100% Arabica espresso blend, bearing the quality seal of the Rainforest Alliance for sustainable production. The seal with the green frog certifies that the beans come only from farms that meet high social, ecological and economic standards. Chief editor Natascha Widmer, Elke Oelkuch Franke Kitchen Systems Peter Gnehm, Angelika Schmidle Franke Foodservice Systems Dirk Friedlein Franke Washroom Systems Waltraud Rüf Franke Coffee Systems Jeannine Zumstein
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