Karel Stoschek Director Infant Nutrition. Infant Nutrition

Size: px

Start display at page:

Download "Karel Stoschek Director Infant Nutrition. Infant Nutrition"

Doreen Perry
6 years ago
Views:

1 Karel Stoschek Director Infant Nutrition Infant Nutrition

Infant Nutrition January to September 70 60 50 40 30 20

100 80 60 40 20 0 123 104 82 59 16 2010 2011 2012 2013

50 2.00 1.50 1.00 0.50 0.00 2.24 1.58 1.58 1.23 0.

2 Infant Nutrition January to September Volumes ('000 MT) Operating profit (SEK million) Operating profit per kilo (SEK) 2

formula includes all essential nutrients

normally Vegetable oils and fats provide

3 The first 1,000 days Pregnancy Breast feeding Baby Toddlerhood Infant milk formula includes all essential nutrients and energy for infants to grow and develop normally Vegetable oils and fats provide the essential building blocks for the body, including the brain and the eyes Oils and fats account for 50% of the energy in the formula 3

Global baby food retail value Estimate 2014 70

Special formula 8% Premature, allergy Standard

72% Follow-on formula 23% 6-12 months 20 44.

Toddler formula 39% +12 months 10 Source:

4 Global baby food retail value Estimate US$ B. 5.4US$ B. 8.9US$ B. Special formula 8% Premature, allergy Standard formula 30% 0-6 months US$ B. 72% Follow-on formula 23% 6-12 months US$ B. Toddler formula 39% +12 months 10 Source: Euromonitor International, Sep Global market Other baby food Dried baby food Prepared baby food MILK FORMULA 4

Infant milk formula market Estimate 2014 2.

global value share Local companies increasing share

5 Infant milk formula market Estimate million MT/yr infant milk formula ~660,000 MT /yr oils & fats Consolidated market: Top 4 companies have 57% share Top 10 companies have 73% share 29% global value share Local companies increasing share >100 brands in the market Source: Euromonitor International, Sep

6 China: new infant milk powder policy August 2013 Fonterra December 2013 China FDA revised version of policy May 2014 China FDA published the list of companies that passed the audit September 2014 NZ companies got import licences back to China China FDA announced they will review the IMF production policy China FDA audits for IMF producers Audit in China - integrated supply chain: Local toll-production stopped Local base-powder production stopped Local packing operation stopped Outcome: China FDA approved 82 Infant Milk Formula producers They are approved for /3 of producers licenses not renewed 6

7 China market remains attractive 000 MT $ Bn China infant milk formula retail value 22,3 % e2014 e2016 China infant milk formula total volume 15,6 % e2014 e2016 Source: Euromonitor International, Sep % 80% 60% 40% 20% 0% China infant milk formula - brand share Future consolidation expected 76% 24% IMF Market growth remains attractive Other Top-5 brands Market value is likely to grow faster than volume Future market consolidation expected E-commerce channel expanding 7

combination Security from start to finish Specifications guaranteed A clinically-proven ingredient

8 Go to market The first choice for value-added vegetable oil solutions Single oils Organic (approved by COFCC) MCT Low 3MCPD The natural choice for healthy development Customised oil blends The ideal combination Security from start to finish Specifications guaranteed A clinically-proven ingredient One step closer to human milk INFAT is sold by Advanced Lipids a joint venture of AAK and Enzymotec. 8

9 AAK Customer case Toll producer Brand Owner End consumer Customer Pain: With Brand owner: Food safety Tailored fat composition CSR AAK co-development: With Brand owner: Sourcing the raw materials Global view on market Developing an unique blend With Toll producer: Correct quality Effective logistics solution Product analysis With Toll producer: Regulatory and specifications Logistics solution Tailored service package 9

Expanding organic category Organic baby food market is strong in EU 120 100 80 60 40 20 0 New launches Organic baby food 2010 2011 2012 2013 2014 Fast growing in China and Asia AAK

10 Expanding organic category Organic baby food market is strong in EU New launches Organic baby food Fast growing in China and Asia AAK is the only company in Europe to have a certificate from COFCC to produce vegetable oils for organic infant milk formulas for China Akonino Organic Source: Mintel, November

11 Average annual volume growth (Euromonitor total milk formula volume growth) Global growth rate: +7% by volume -1% +1% +4% +16% +4% +7% +6% +10% Source: Euromonitor International, Sep

12 AAK increasing market share 20% CAGR (MT) % 10% 5% 0% Market AAK 12

customer co-development Balanced portfolio to match customer needs: Semi-speciality blends Speciality blends Speciality single

13 AAK position for future growth Category Growth Trends Economic growth and job creation Increase number of women in workforce Middle class and dual-income family emerge Increasing spend on premium nutrition Commitment on quality Continues investment in customer co-development Balanced portfolio to match customer needs: Semi-speciality blends Speciality blends Speciality single oils Geographical development: Malaysia Brazil greenfield China greenfield Europe preparing for customers capacity increases 13

Lena Ingvarsson Marketing Director Dairy. Dairy

Lena Ingvarsson Marketing Director Dairy Dairy Dairy January to September 90 100 85 80 75 77 84 77 78 87 80 60 40 20 29 66 52 64 77 70 2010 2011 2012 2013 2014 0 2010 2011 2012 2013 2014 Volumes ('000