Roelof Joosten, CEO FrieslandCampina. How innovation in Dutch dairy has built a global business

Transcription

1 Roelof Joosten, CEO FrieslandCampina How innovation in Dutch dairy has built a global business

2 Agenda: Brief introduction FrieslandCampina The dairy heritage of the Netherlands and its USP s Driving innovation in processes, products and our supply chain Climate neutral growth and sustainable energy innovations Concluding

3 3 nd largest dairy cooperative in the world 6 th processor of milk globally 19,000 member farmers and 22,000 employees Annual sales EUR 11.3bn (2014) Factories in 32 countries Sales in 100 countries 14,000 dairy farms: 10 bn kg milk (NL, Germany, Belgium) Who we are: a global player in dairy From grass to glass 3

4 FrieslandCampina brands 4

5 Worldwide Europe Netherlands Germany Belgium Greece Hungary Romania Russia France Spain Italy Austria United Kingdom 6,768 revenue * North and South America United States of America Brasil 361 revenue * Africa and the Middle East Nigeria Ghana Ivory Coast United Arab Emirates Saudi Arabia Egypt 1,241 revenue * Asia and Oceania Indonesia Malaysia Singapore Thailand Myanmar Vietnam Philippines China Hong Kong India Japan New Zealand 2,978 revenue * 13,371 employees 163 employees 1,060 employees 7,574 employees Figures 2014 * in millions of euros 71 locations 6 locations 6 locations 33 locations 5

6 19,000 ambitious member farmers are the owners of FrieslandCampina Approx. 150 years cooperative history 6

7 A typical Dutch Farm Who we are.. Generation 2 generation Family owned Average 87 cows Meadow grazing Average farm: kg milk per year Capital invested EUR 3 mln Annual milk sales EUR 300K Net income annually: 30K 7

8 Key characteristics of sector, cooperative and farming have changed From: Voedselveiligheid producing safe milk To: nourishing millions of consumers around the world Animal Wellfare Food safety Food safety Nourishment Milking Efficiency Animal wellness Auditing Milking Auditing Efficiency Animal wellness Biodiversity Transparency CO2 Neutral Sustainability Meadow grazing 8

9 Agenda: Brief introduction FrieslandCampina The dairy heritage of the Netherlands and its USP s Driving innovation in processes, products and our supply chain Climate neutral growth and sustainable energy innovations Concluding

10 USP s Dutch dairy: mild climate, rivers delta, ideal soil and grassland plus knowledge base 10

11 A century of craftmanship & salesmanship conquered foreign dairy markets June 2013: celebration 100 th anniversary of CCF factory in Leeuwarden: Sietze Hepkema 11

12 A remarkable transition from - for humans - useless grass to a highly nutritious product Proteins Minerals Vitamins Milk fat Bio-actives Feed stock NL: approx. 50% grass; 30% maize; 20% concentrates ( krachtvoer ) from recycled residue from food industry (soy crushing; breweries, potato industry, sugar beet leaf, citrus juice producers, etc.)

13 Agenda: Brief introduction FrieslandCampina The dairy heritage of the Netherlands and its USP s Driving innovation in processes, products and our supply chain Climate neutral growth and sustainable energy innovations Concluding

14 Innovation Centre at campus Wageningen Value creation by innovation

15 Innovation at FrieslandCampina 320 R&D employees 450 workstations Pilot plant (2,500 m2) Laboratories and taste testings Experience centre, innovation kitchen and bakery State-of-the-art and sustainable building: BREEAM certified FrieslandCampina Development centre in Singapore (50 employees) 15

16 Innovation responding to customer needs Healthy, nutritious, well-balanced and tasty food, making best use of the nutritional benefits of milk The efforts are focused on the growth categories dairy-based beverages, infant nutrition and branded cheese Focus areas for research are growth & development (of children), daily nutrition, health & wellness and functionality (structure) 16

17 Fractionating 100% pure milk components through Prism technology 17

18 We keep on investing in processing capacity, innovation and quality in x million billion total billion in the Netherlands >70% 18

19 Energy: BEAST of an evaporator - Step changes in water removal Innovative evaporator delivers 60% energy reduction compared to industry benchmark and approaches reverse osmosis efficiency Project started with a clear driver from sustainability perspective Integrated approach knowledge and equipment suppliers Up and running since 2013, roll-out to other factories ongoing

20 Water: Closing the water loop will become a reality Example project: Reuse of RO-permeate with appropriate preservation technologies applied Phase 1: Started up in 2014: results in > m3/year water savings Phase 2 will double this amount; following steps will enable us to close the loop

21 What about product innovations? Optimel New flavours yoghurt Greek style Friso infant nutrition Now also available in Indonesia Landliebe Hungary Introduction in Hungary DubbelFrisss Free Free from artificial sweeteners and added sugars Dutch Lady Essential nutrients for children Black & White Sachets Mona (ice)pudding NoyNoy Noulac Frisian Flag Frisian Flag Disney series in Indonesia Chocomel vers Chocomel with fresh milk Peak Value pack Nezhniy New packaging Campina Nezhniy Russia Dutch Lady Introduction portion packs yoghurt Dutch Lady Vietnam Optimel Puur 100% natural yoghurt drink Milner Koe & Geit and Milner Lente Graskaas 21

22 Barista quality milk foam for cappuccino in coffee chains, restaurants, etc. Recent introductions: LATTIZ,

23 Recent introductons: Optimel PUUR; Landliebe lactose-free No added sugar, No sweeteners, Zero % fat Low calories Lactose-free dairy (natural milk sugars)

24 Make it veggie with Valess! Valess is made from milk and algae extract and is 100% vegetarian. All Valess Schnitzels have great taste, a firm bite and juicy mouthfeel. Because of this, McDonald s has chosen Valess as their unique veggie patty. At McDonald s Austria, the 6 most popular chicken products can now be ordered as veggie. Burgers without meat extra consumer choice option

25 And more April 30, 2015 FrieslandCampina and Elopak are setting the standard with new bio-based milk carton FrieslandCampina plans to introduce a new bio-based beverage carton over the next 1.5 years, starting with fresh milk and buttermilk from Campina in June For the production of the cap and the coating certified organic waste material is purchased. The paper in the carton was already renewable and this innovation makes it the most sustainable beverage carton ever. The CO2 footprint of this bio-based milk carton is 20% lower than the current carton. This is a novelty on the Dutch market. The introduction of this bio-based carton fits perfectly within the movement to a circular economy, where the raw material of the carton is completely renewable (certified organic residue).

26 We have also surfed the wave of digital commerce innovations in China Overall e-commerce sales (Unit: bn USD / growth in last 2 years period) USA China Japan UK Growth % over 2 yrs 11% 64% 10% 9%

27 Agenda: Brief introduction FrieslandCampina The dairy heritage of the Netherlands and its USP s Driving innovation in processes, products and our supply chain Climate neutral growth and sustainable energy innovations Concluding

28 Climate-neutral growth is our commitment ktons CO2 equiv.

29 We keep on pushing the green innovation agenda Renewable energy Digesters Mineral efficiency Green transportation Biogas as truck fuel 29

30 FrieslandCampina aims for chain innovations to realize circular manure valorisation Interest: Reduction of GHG emission and phosphate disposal by: 1. Farm scale mono-digestors and local digest refinery producing biogas, organic-, P-, N- and K- fertilizers 2. Large scale (> ton annually) monodigestors and digest refinery producing biogas, organic-, P-, N- and K- fertilizers 30

31 FrieslandCampina aims for chain innovations to realize circular manure valorisation Interest: Reduction of GHG emission and phosphate disposal by: 1. Farm scale mono-digestors and local digest refinery producing biogas, organic-, P-, N- and K- fertilizers 2. Large scale (> ton annually) monodigestors and digest refinery producing biogas, organic-, P-, N- and K- fertilizers 1. Technologies for manure pretreatment and/or improved biomass conversion 2. Technologies for the production of value added biobased products from manure 3. Integration of innovative technologies into an efficient process chain 31

32 Agenda: Brief introduction FrieslandCampina The dairy heritage of the Netherlands and its USP s Driving innovation in processes, products and our supply chain Climate neutral growth and sustainable energy innovations Concluding

33 Our purpose Nourishing by Nature and our commitments: wrapping it all up Better nutrition for the world, a good living for our farmers now and for generations to come Milk, by nature, contains essential nutrients to stay healthy: proteins, vitamins & minerals Climate-neutral growth, CSR well secured in chain. Closing loops, circular economy Limiting the growing pressure on natural resources, raw materials & biodiversity. Trusted, tasty, safe, affordable and high-quality dairy nutrition Securing long-term customer & societal value in our supply chain from grass to glass 33

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