Opportunities for Irish Dairy. An Industry Perspective
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1 Opportunities for Irish Dairy An Industry Perspective
2 Content Who we are and what we do Kerry s approach to value creation Responding to opportunities: Recent market innovations 2 Taste & Nutrition Kerry 2018
3 Kerry Group: An Overview 135 PRODUCTION LOCATIONS 2 Global Technology & Innovation Centres Naas 18bn ENTERPRISE VALUE 6 Regional Technology & Application Centres San Juan del Rio Beloit Shanghai Singapore Bangalore 24,000 EMPLOYEES 64 RD&A Locations & Commercial Hubs Campinas Durban 3 Taste & Nutrition Kerry 2018
4 40+ Years of Strategic Evolution 4 Taste & Nutrition Kerry 2018
5 Taste & Nutrition The industry s leading, globally-connected Taste and Nutrition company, operating with a local, proactive entrepreneurial mindset Leading to Better 5 Taste & Nutrition Kerry 2018
6 1972 Established as Dairy Co-Op 20% of Irish Supply 40+ Years of Strategic Evolution Vertically Integrated Over 1 billion+ litres of milk Our heritage in dairy 6 Taste & Nutrition Kerry 2018
7 PRIMARY DAIRY CHEESE DRY DAIRY INGREDIENTS DAIRY FLAVOURS Kerry Group has a broad dairy portfolio SPREADS PROTEINS NUTRITIONAL INFANT BASES CANNED INFANT FORMULA UHT DAIRY
8 What Makes Kerry Different? A unique set of dairy capabilities Taste Fermentation Encapsulation Compounding Reaction Extraction Nutritional Benefit Lower fat and saturated fat Protein enhancement Salt reduction TASTE Unique Delivery Solutions NUTRITION PROCESSING Processing & Forming Spray drying Dry blending Pasteurisation/UHT Natural cheese manufacturing Wet processing String cheese 8 Taste & Nutrition Kerry 2018
9 What Makes Kerry Different? In-market expertise Development of a Global Technology and Innovation Centre Infrastructure 9 Taste & Nutrition Kerry 2018
10 Model for Growth.
11 Discover Discover Kerry Kerry The Taste & Nutrition Company The Taste & Nutrition Company
12 We bring value-add dairy ingredients to many categories 12 Taste & Nutrition Kerry 2018
13 Our Ingredient Technology & Application Capability Underpins the Business Cheese Powder Other Dairy Powders Processed Cheese UHT Bases 13 Taste & Nutrition Kerry 2018
14 Scientific Research Consumer Market Insight Fundamental Science Our Innovation Model Food & Beverage Consumer Products Product Technology & Process Expertise Application Solutions & Expertise 14 Taste & Nutrition Kerry 2018
15 Responding to Opportunities: Recent market innovations
16 Dairy Market Context: New consumers, new tastes Dairy Demand Growth % Demand growth strongest in emerging markets 1.6% 1.4% 1.2% 1.0% 0.8% 0.6% 0.4% 0.2% 0.0% Fresh dairy products Skim milk powder Whole milk powder Butter Cheese Source: OECD FAO Agricultural Outlook Developed Markets Emerging Markets 16 Taste & Nutrition Kerry 2018
17 Cold-brew coffee; with mascarpone foam Combining trends in cold-brew coffee, with strong demand for dairy flavours, suiting local market tastes in Indonesia 17 Taste & Nutrition Kerry 2018
18 Up to 40% Fat Reduction & 20% Calorie Reduction DairySource
19 Hyfoma Hydrolysates of dairy and plant proteins, which can be used to fully replace egg white and gelatine in confectionery applications
20 Ultranor A dairy protein product range designed to enhance the textural attributes of nutritional bars and provide longer shelf life stability
21 Kerry s Grass-fed Dairy Protein
22 Improved Nutritional Value of Grass Fed Dairy* Higher Conjugated Linoleic Acids 1-3 Higher levels of Beta Carotene 2 Higher levels of vitamin E 2 Optimal ratio of omega-6 to omega-3 fatty acids 2,3 1. Dhiman TR, Anand GR, Satter LD, Pariza MW. Conjugated linoleic acid content of milk from cows fed different diets. J Dairy Science. 1999;82: Daley CA, Abbott A, Doyle PS, Nader GA, Larson S. A review of fatty acid profiles and antioxidant content in grass-fed and grain-fed beef. Nutrition J. 2010; 9: O Callaghan TF, Hennessy D, McAuliffe S, Kilcawley KN, O Donovan M, Dillon P, Ross RP, Stanton C. Effect of pasture versus indoor feeding systems on raw milk composition and quality over an entire lactation. J Dairy Sci. 2016;99: doi: /jds Taste & Nutrition Kerry 2018
23 Connecting with Food: The Growth of Grass-fed Between , the number of global products launched described as grass fed or pasture fed, increased by 245% Grass-fed has seen 215% growth on menus over the past 4 years Grass-fed has seen a 42% dollar growth from Consumers have become more invested in the origin or backstory of their foods 23 Taste & Nutrition Kerry 2018
24 Sustainability and Quality Assurance is Key
25 Kerry: Creating opportunities for Irish milk
26 Thank You
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