Slide 1: Dairy
Lena Ingvarsson Marketing Director Dairy Dairy
Slide 2: Dairy – January to September
Dairy – January to September 90 100 85 87 80 77 84 60 66 80 64 40 52 77 78 75 77 20 29 70 0 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 Volumes ('000 MT) Operating profit (SEK million) 1.00 0.80 0.89 0.79 0.82 0.60 0.68 0.40 0.38 0.20 0.00 2010 2011 2012 2013 2014 Operating profit per kilo (SE
Slide 3: Global Dairy market in scope
Global Dairy market in scope Market size year 2013 MT 66,2 million Market size year 2013 USD 309 billion Market growth 2014-2016 CAGR 3,4% Applications: Cream/Toppings Ice cream Powdered milk Milk drinks Non-dairy milk alternatives Coffee whiteners Butter Cheese Condensed milk 3 Source: Euromonitor
Slide 4: Fat volume market by main applications
Dairy market by main applications - Forecasted growth vs. fat volume 2013 5 000 Market growth 3.4% 4 500 Cheese 4 000 4 200 Fat volume 000 tonnes 3 500 Butter 3 000 2 600 2 500 2 000 Cream 1 300 1 500 Ice cream 1 000 1 000 Coffee Milk drinks 500 Cond milk whiterners 300 360 240 0 0,0 1,0 2,0 3,0 4,0
Slide 5: Fat volume market by regions
Dairy market by regions - Forecasted growth vs. fat volume 2013 4 000 Market growth 3.4% 3 500 WE Fat volume 000 tonnes 3 000 3 000 NA 2 500 2 500 2 000 1 500 LA EE AP 1 390 1 320 1 300 1 000 MEA 500 720 0 0 1 2 3 4 5 6 7 CAGR in % 2014-2016 The use of vegetable fat is limited and varies depending o
Slide 6: Trends for key players within scope
Trends for key players within scope (2013 - retail value %) Key players Market share Growth trend Diverse market, Company A 6,5 the 20 biggest Company B 5,4 players make up < 1/3 of the market Company C 3,3 Company D 2,8 - Generally good growth, Company E 1,7 specifically for Asian players Company F
Slide 7: Trends in Dairy market
Trends in Dairy market - from a fat perspective Non-trans Non-hydro Health and SAFA reduction wellness Decreased cholesterol Omega 3 and Omega 3/6 Responsible and sustainable sourcing Sustainability Carbon footprint Natural – Organic Back to Free from nature Clean label 7
Slide 8: Dairy market characteristics
Dairy market characteristics Population growth Key revenue drivers Growing middle class in developing countries Urbanisation Health categories Key profit drivers Natural Convenience Dairy Side Stream Key pains Affordable dairy products for a larger market Lack of milk in some markets General health
Slide 9: Number of Dairy product launches
Number of Dairy product launches - with vegetable oils and fats 2000 1800 1600 Number of launches 1400 1200 1000 800 600 400 200 0 2009 2010 2011 2012 2013 Steady increase of numbers of product launches with vegetable oils and fats in dairy products Source: Mintel 9
Slide 10: Potential markets
Potential markets - Dairy Extension and Dairy Side Stream Management Skim Milk Powder 400 300 200 100 x1000 tonnes 0 -100 -200 -300 -400 Net importers Net exporters -500 Source: IDF, 2013 10
Slide 11: Dairy Extension - An opportunity for Dairies
Dairy Extension - An opportunity for Dairies Availability Possibility to have stable Dairy Extension manage: availability of raw material Affordability Add vegetable fat to Dairy Extension create affordable food Affordable food Volatility Vegetable fat reduces the volatility Sustainability Act respo
Slide 12: Side Stream Management
Side Stream Management - creating new value for Dairies Turn side stream fractions into value Reduce waste, act responsibly Steady output of the side stream fractions Creating new valuable extension of the product range Possibility to create healthier product segment Improve profitability for the to
Slide 13: Akotop NH
Akotop NH - non-hydro solution for whipped toppings Functionality and health Non-hydro and Non-trans Clean label Excellent physical and sensory properties Whipping test 250 200 Overrun % 150 Akotop NH 100 Cream 50 Reference hydro 0 60 120 150 210 270 Time sec 13
Slide 14: Akomix LS
Akomix LS 25 - improved nutritional profile in ice cream Functionality and health - taking ice cream innovation to the next level Akomix LS 25 reduces saturated fats in the ice cream Ice cream based on Akomix LS 25 is allowed to carry, the EFSA approved nutrition and health claims in the EU % 100 An
Slide 15: Akoblend SB
Akoblend SB - structure builder in churned butter blends Functionality and cost efficiency Increase the amount of vegetable fats with maintained structure Non-hydro Non-trans Cost efficiency Same equipment can be used Example: By addition of 8% Akoblend SB NH, the butter content can be reduced with
Slide 16: Dairy for the future
Dairy for the future The segment will grow by offering: Dairy Extension for affordable food Side Stream Management Consistent supply Improved functionality Cost efficiency Improved health profile Total concept 16