Slide 1: AAK USA
Terrence W. Thomas AAK USA
Slide 2: Macroeconomic Landscape
Macroeconomic Landscape USA and Canada USA and Canada GDP annual growth (%) Factors affecting US economic growth Historical data and forecast by quarter USA consumer spending has slowed but remains above the long term growth rate of 2.0% USA unemployment stands at 4.9% in October after 73 consecutiv
Slide 3: Market Landscape: Customers and Consumers
Market Landscape Customers and Consumers USA Population: 321.6 million Canada Population: 35.9 million Packaged Food Foodservice 2016 USA and Canada: $413B Sales 2016 USA and Canada: $579B Sales CAGR 2011-2016: 1.3% CAGR 2011-2016: 3.1% CAGR 2016-2020: 1.3% CAGR 2016-2020: 1.7% USA/Canada Packaged F
Slide 4: AAK USA and Canada Business Performance
AAK USA and Canada Business Performance Volume ('000 MT) 450 350 Acquisition of Golden Foods Golden Brands (Louisville, KY), July 2011 250 Acquisition of Oasis Foods (Hillside, NJ), May 2012 150 50 Hurricane Sandy, November 2012 2010 2012 2014 R12M 2016 2014-16 Strategic plan developed, 2013 Operati
Slide 5: AAK USA and Canada Business Footprint
AAK USA and Canada Business Footprint Headquartered in Edison, New Jersey 476 employees in USA and Canada New Innovation Center for Bakery and Confectionary to open November 2016 in Edison, New Jersey 5 The Co-Development Company
Slide 6: AAK USA and Canada Business Footprint
AAK USA and Canada Business Footprint Port Newark, New Jersey Focus on Chocolate and Confectionary, Infant Nutrition, Bakery, Dairy and Personal Care segments Richmond, California Focus on Chocolate and Confectionary, Dairy, Infant Nutrition and Frying segments Louisville, Kentucky Focus on Bakery,
Slide 7: Market Landscape: Chocolate and Confectionary Segment
Market Landscape Chocolate and Confectionary Segment USA/Canada Chocolate Confectionery Market Share By Manufacturer* Large ($21B Sales, 2016), relatively concentrated Private Label, Player #1, segment growing at 2.7% 2% 44% CAGR (2011-2016) Player #4, 8% AAK has leading position with 6 of Top 7 CPG
Slide 8: Market Landscape: Bakery Segment
Market Landscape Bakery Segment USA/Canada Bakery Market Share By Manufacturer* Large ($80B Sales, 2016), highly fragmented segment Player #3, growing at 1.6% CAGR 5% (2011-2016) Artisanal, Player #2, 34% 9% AAK has strong and growing position with several top CPGs and Industrial Bakeries Player #1,
Slide 9: Market Landscape: Dairy Segment
Market Landscape Dairy Segment USA/Canada Dairy Market Share By Manufacturer* Large ($73B Sales, 2016), Private Label, modestly fragmented 26% segment growing at 0.7% Player #5, CAGR (2011-2016) 3% Player #4, AAK is the leader in 5% supplying non-dairy whipped Player #1, toppings and non-dairy 16% P
Slide 10: Market Landscape: Infant Nutrition Segment
Market Landscape Infant Nutrition Segment USA/Canada Infant Milk Formula Market Share By Manufacturer* Midsize ($5.2B Sales, 2016), concentrated segment growing Private Label, Player #1, at 1.7% CAGR (2011-2016) 6% 39% AAK has a leading position with top CPGs, and with the Player #3, acquisition of
Slide 11: Market Landscape: Foodservice Segment
Market Landscape Foodservice Segment Relative Foodservice Market Sizes Northeast Northwest 23% 5% Mid-West Very large ($579B Sales, 2016, 19% Restaurants, Bars and Southwest Taverns), very fragmented 17% segment growing at 3.1% Mid-South Southeast CAGR (2011-2016) 16% 21% AAK Foodservice currently w
Slide 12: Oasis Foods Foodservice Product Lines
Oasis Foods Foodservice Product Lines Shortenings Frying Oils Mayonnaise and Salad Dressings Margarines and Butter Blends 12 The Co-Development Company
Slide 13: Customer Co-Development: CCF Success Story
Customer Co-Development CCF Success Story Situation: Leading CPG in Chocolate and Confectionary segment AAK a minor supplier to this customer Majority supplier unable to resolve supply chain challenges Rapid turnaround of a highly complex blend of tropical oils required Response: AAK responded with
Slide 14: Customer Co-Development: Bakery Success Story
Customer Co-Development Bakery Success Story Situation: Leading CPG in Bakery segment Current supplier not meeting requirements for Sustainability / Traceability Response: AAK invited to participate in development project for retail product formulations Detailed project scope developed, critical to
Slide 15: Impact of trans-fat regulations
Impact of trans-fat regulations U.S. Domestic Disappearance of Key Fats & Oils: 2007-2016* Tropical oils continue to substitute for CAGR partially hydrogenated soft oils (PHO) M. Lbs. 2007/2008 2008/2009 2014/2015 2015/2016 ’07-’16 Soybean 18,331 16,266 19,149 19.581 1% 4% CAGR for Palm and 5% CAGR
Slide 16: Acquisition of California Oils Corporation
Acquisition of California Oils Corporation
Slide 17: AAK USA Strategic Intent
AAK USA Strategic Intent AAK established itself in the Eastern United States through two key growth phases 1 Acquisitions in 2011/2012 enabled AAK to expand and diversify its presence with new lines of business 2 2014-16 Strategic Plan focused on organic growth with initiatives identified across a r
Slide 18: West Coast Market Offers Attractive Opportunities
West Coast Market Offers Attractive Opportunities West Coast Represents An Attractive AAK’s Ability To Serve West Coast Market Opportunity For AAK Customers Limited By Logistics Market: ~ 20% of US population AAK has made efforts to develop a West Coast presence, focused Competition: Less competitiv
Slide 19: Strategic Rationale
Strategic Rationale AAK Strategic Direction California Oils Opportunity West Coast expansion identified as an Cal Oils is the leading West Coast oils processer, important component of long term growth with production assets and an established strategy customer base to support AAK market entry Improv
Slide 20: The Co-Development Company
20 The Co-Development Company
Slide 21: West Coast Presence Makes AAK a National Player
West Coast Presence Makes AAK a National Player Richmond, CA Sacramento San Francisco Los Angeles San Diego 21 The Co-Development Company
Slide 22: AAK USA in Summary
AAK USA in Summary PEOPLE Business Leadership Team in place that is scalable to meet and deliver growth ambitions Improved depth of talent across all functions in the organization Engaged workforce culturally aligned with The AAK Way CUSTOMERS Best in class Go-to-Market organization focused on custo