How we act on paradigm shifts Our strategies for a changing world. Jeroen Elfers Corporate Director Cooperative Affairs

Transcription

1 How we act on paradigm shifts Our strategies for a changing world Jeroen Elfers Corporate Director Cooperative Affairs

2 Who we are What we see What we do 1

3 A global dairy company built on a cooperative foundation 11.0 billion euros revenue 21,927 employees Facilities in 33 countries Export to over 100 countries 18,906 Member dairy farmers own the Company Every day millions of consumers Figures

4 13,300 member dairy farms in the Netherlands, Germany and Belgium 3

5 We have a long history Founding of Arnhemse Melkinrichting Founding of CCF in Leeuwarden Friesche Vlag, Dutch Baby and Bonnet Rouge are registered for international markets Founding of Coberco in Zutphen Merger of Coberco, Friesland Dairy Foods, De Zuid- Oost-Hoek and Twee Provinciën Acquisition of Nutricia Dairy & Drinks Group Friesland Foods receives Royal designation on its 125 th anniversary Acquisition of Alaska Milk Corporation in the Philippines Acquisition of Olam Ivory Coast and DEK in Italy Acquisition of majority stake (51%) Engro Foods in Pakistan Merger of Friesland Foods and Campina Acquisition of IDB Belgium Acquisition of mozzarella producer Fabrelac in Belgium Acquisition of the activities of Anika Group in Russia Nine farmers take over a cheese factory in the Dutch Wieringerwaard Founding of the first dairy co-operatives Founding of the De Meijerij Veghel / De Melkindustrie Veghel Campina brand introduced Founding of Campina Melkunie Acquisition of Südmilch (Heilbronn) International launch of formation of international Campina brand and co-operative Acquisition of Zijerveld and Veldhuyzen and G. den Hollander Holding Founding of joint venture Friesland Huishan Dairy in China 4

6 and we prepare for a bright future Better nutrition a good living for our farmers now and for generations to come 5

7 Who we are What we see What we do 6

8 Consumer trust in food & brands down We need to transparently show and tell 1 7

9 Consumers look for authenticity and naturalness We need to be fair, sustainable and traceable 2 8

10 but consumers also look for value We need efficiency to remain competitive 3 9

11 The middle class emerges across the globe We need to prepare for growth in packaged foods 4 10

12 Growing global demand for food rich in proteins We need to communicate nutritional values of dairy 5 11

13 China will be the world s leading economy soon We need to win in China s dairy markets 6 12

14 Trade barriers are no longer on the way down We need an agile geo mix to serve global demand 7 13

15 The EU has deregulated dairy We need to accept new constraints to volume growth 8 CO 2 NH 3 PO 4 CH 4 NO x NO 3 14

16 so we see strong price volatility We need to drive agility in our execution 9 Hannover quotation, Gouda rindless 48% in /kg (monthly average, period July 2006-June 2017: N.B. Y-axis does not start at zero 4,200 4,000 3,800 3,600 3,400 3,200 3,000 2,800 2,600 2,400 2,200 0 July 2006 June 2017

17 Who we are What we see What we do 16

18 Paradigm shifts are a given How we act is our choice The shifts we see How we benefit from them Consumers are Losing trust Embracing nature Losing buying power (EU) Moving to global cities Requiring proteins We open up We step up We drive efficiency We internationalize We communicate Markets are Seeing China s lead Closing borders for dairy Expecting more Losing predictability We invest locally We drive dairy development We move beyond compliance We invest in data science 17

19 The paradigm shifts necessitate agile alignment from member to consumer Our assignment: in a changing world lead in value (not volume) creation Our answer: The Merits of Milk uniting our chain s competitive advantages - through processing multiple milk streams - to better serve our changing customers needs 18

20 Successful execution is the hallmark of good strategies We now adapt our organization to turn choices into action 19

21 Our cooperative, our strategies and our organization are ready for the shifts Better nutrition a good living for our farmers now and for generations to come 20