Danone in CIS Yves Legros

Transcription

1 Danone in CIS Yves Legros

2 Agenda CIS: Opportunities in a Growth Region Danone Unimilk: the right growth platform One Company Plan and Ambition 2

3 Russia is back to solid growth after the crisis Russian economy stands at the 7 th place of GDP calculated on the basis of the purchasing power parity ( bln., 2010) Starting from early 2000s Russian GDP grew at a steady rate of approximately 5% per year USA China % 47% Real GDP 1 ( bln.) 4.82% 4.20% Japan % India % Germany Russia % 100% Growth rate 2010/2000 GDP based on PPP per capita 1 ( per capita) Brazil UK % 40% 5.20% 4.44% France % Italy % (1) Calculated in 2005 prices (2) Estimate based on the data from EIU and Global Insight

4 CIS fresh dairy market has been growing consistently Fresh Dairy Market Size Growth (mln Euro) vs Y-1 Market estimation by Euromonitor CIS Fresh Dairy Market: - Doubled in 6 years - Sensitive to crisis, but fast recovering CIS Total Dairy Market: - Steady growth of per capita consumption at 4% CAGR - Market Valorization 4 (1) Fresh Dairy Market includes: Yoghurt and Sour Milk Drinks, Chilled and Shelf Stable Desserts, Chilled Snacks, Cream, Fromage Frais and Quark

5 Still a market with low fresh dairy consumption per capita CIS Dairy and Fresh Dairy Market: - Growing Purchasing Power - High potential market for Fresh Dairy GDP Growth * Data on Fresh Dairy Consumption by Euromonitor ** GDP growth PPP (source EIU)

6 Key trends on CIS market BRANDS Switch from bulk consumption Highly branded market Value-added categories growth Naturality, Purity and Tradition trend Cooking at home NATURALITY MODERN TRADE Growth of Modern Trade Consolidation of main players Regional expansion 6

7 Agenda CIS: Opportunities in a Growth Region Danone Unimilk: the right growth platform One Company Plan and Ambition 7

8 Danone + Unimilk Snapshot Danone entered Russian market in plants in CIS Annual sales* 2010 : 700 mln Focus on blockbuster brands; developing mainstream modern category Unimilk established in plants in CIS Annual sales* 2010 : 1.3 bn Numerous brands allowing the company to address the vast majority of the market Russian Fresh dairy market** % market share - #1 player Russian Fresh dairy market** % market share - #3 player * Based on 2010 exchange rate : RUR/ ** Source: Nielsen Retail Audit, National Urban, FM

9 Marrying Activia with Prostokvashino Activia Prostokvashino Activia #1 brand for Danone Russia Leader of Active Health Brand #1 for women Modern Categories and Kefir Strong drive through Media support Bifidus and health as consumption trigger Growing through innovations - Adjacent categories - New consumption occasions Prostokvashino #1 brand for Unimilk Tradition & Quality Family Brand Leader in Traditional Categories Strong and well-recognized ambassador Matroskin Brand of the Year Award/EFFIE - #2 Brand in Russia 2010 (FMCG) by Forbes* Growing through innovations - PET bottled Milk - Granulated Cheese 9 * Based on 2010 exchange rate : RUR/ ** Domik v Derevne, main competitor on #6 with x2 advertising budgets

10 An alliance of 2 complementary geographies Russia, Total Dairy, FM 2011 estimated Value Market Share Western Russia Population 73 % COMBINED ~27% Eastern Russia Population 17% COMBINED ~30% Source: AC Nielsen FM

11 Danone-Unimilk: complimentarity drives synergies Portfolio Regions Distribution Industrial & supply chain + Focus on Premium and Health Focused on the West Modern retail and Direct RTM Best-in-class practices Focus on traditional with reach to all SELs Focused on the East Presence in traditional channels Large network = DANONE UNIMILK Revenue synergies: +10% additional sales over 3 years Cost synergies: + ~ 200 bp margin over 4 years 11

12 Agenda CIS: Opportunities in a Growth Region Danone Unimilk: the right growth platform One Company Plan and Ambition 12

13 From Collaboration to Integration Phase 1. Collaboration 7 selected collaboration project in key business areas: - SAP implementation in Unimilk - Finance reporting in Unimilk - Joint Sales Operations (RTM-pilot) - Key Account Management - Purchasing Synergies - Product Localization and Industrial - Logistics Identification of most potential areas of Danone and Unimilk best practices implementation 07/2010 Deal announcement 09/2010 Collaboration initiatives 12/2010 Deal approval 03/2011 Joint Sales Team Pilot Phase 2. Integration Building organization with focus on: - Growth - Profitability - Sustainability Full scope integration - Strategic Plan - Operating Models - Change Plan Days of Change 13