The first choice. For always. Resource-conserving, vegetarian, protein-rich, inspirational – food is becoming more and more of an ideology. A healthy, balanced lifestyle is the new norm, and morphing from a desirable state to a lifestyle. At DMK, we develop new concepts and products that respond to consumer’s desires and help them to lead a balanced life. As a leading food manufacture, we adopt a clear customer and market orientation so as to offer dairy products to suit everyone. OUR ROOTS. OUR VALUES. OUR FUTURE. 5

The first choice. For always.

As a modern cooperative, we are on our goal of being the first choice for dairy well positioned to offer a sustaina- products of natural origin for consumers in every phase of their lives. ble and innovative product port- folio: from the farm to the consu- We have successful brands Brands such as MILRAM, Oldenburger, mer’s table. Humana, Alete and Uniekaas give consumers We are DMK in Germany and abroad enormous confidence At DMK, more than 14,000 people live pas- in us. We are an established name in our Eu- sionately for milk every day. We are Germa- ropean home market and selected target mar- ny’s largest dairy cooperative and one of kets around the globe. We build constantly on the most important suppliers to Germany’s the position we have earned in the different retail food sector. Our farmers, their families B2C and B2B markets. With the help of our and our employees work together to enable own targeted trend management and a deep us to produce top-quality food at more than understanding of customers and consumers, 20 sites, processing around 8 billion kilos of gained over a number of decades, we con- milk every year. Our product portfolio ranges stantly adapt our portfolio to changing needs from baby food, cheese, fresh dairy products in a highly dynamic environment. From baby and ice cream to ingredients, and stands for food to cheese to whey – we know how to get quality, diversity and innovation. As a mod- the best out of our milk and use every one of ern food manufacturer, we look beyond the its valuable, natural elements. We combine raw milk alone: our top priority is to focus in our many years of expertise with intensive re- everything we do on what consumers need search and development so as to manufacture and what they expect from our products. innovative, delicious products at our modern This enables us not only to meet these needs factories. We are driven by a desire to achieve and expectations, but to keep improving fur- the best possible value added for our custom- ther. We therefore work together every day ers and our company. OUR ROOTS. OUR VALUES. OUR FUTURE. 7

We take responsibility We are a strong community We are conscious of our responsibility for We are a company owned by farmers, and our products, from the meadow to the the cooperative structure is deeply embed- consumer’s shopping bag. We use nature’s ded in our corporate core. We are a commu- resources to optimum effect and select our nity that stands for self-management, com- ingredients with the greatest care. We ad- munal spirit, mutual support and continuity dress socially and politically relevant topics as well as a shared readiness to be flexible such as sugar reduction, packaging, animal and to change. We are taking the heritage welfare and sustainable feed and contribute of the cooperative model into the future by actively towards solutions. With our sustain- developing it continuously and designing our ability strategy and the Milkmaster Pro- relationship with our members in a modern gramme, we improve sustainability in dairy way. We therefore attach great importance to farming holistically and involve various spe- intense dialogue within the cooperative and cialist departments across the company in a strong “we” feeling among dairy farmers implementing this mission. We see sustaina- and employees.This base enables us to act ble business activities as the prerequisite for as a unified whole to develop our company a good, natural portfolio and products with actively and go on making our vision for the a pure, unadulterated milk flavour – and also future a reality. as our responsibility towards consumers, employees and our dairy farmers.

Vision Mission Values

The first choice for dairy products of natural origins – for always. We use nature’s resources to We see ourselves as a preferred partner with a Our three core values continue to apply: optimum effect and select ingredients with the greatest care. Dairy products comprise the major deep understanding of customers and consum- we are fair, innovative - and entrepreneurial share of our portfolio and form the basis of our product range. Our goal is to be with consumers in ers. In this context, we create maximum value in our actions. every phase of their lives. Our mission is to fulfil the wishes of customers and consumers. and embrace our sustainable responsibility. 9 “Focus on the consumer”

CEO Ingo Müller talks about the The rapid movements in the market are a major challenge for our entire industry and past fiscal year – and about the determine around two thirds of our perfor- DMK Group's future course. mance. That will not change. As an enterprise, we therefore concentrate mainly on the remain- Looking at this combined annual report and ing third, so as to earn a profit that allows us to sustainability report – how satisfied can you pay our dairy farmers competitive milk prices be with the year 2018? and to make essential investments. And that's We’ve mastered major internal challenges in not a one-off task, we have to make permanent a difficult market environment and earned a efforts to move forward. solid profit at the previous year’s level. Today, DMK is in a stable position, well financed We also mastered the demands on us well in the and in a position for targeted growth, mov- year under review - constantly rising require- ing forward in accordance with the strategy. ments, particularly in sustainability issues, such This indicates to me that we've taken the right as sugar reduction, packaging, animal welfare course and that the combined efforts of our and sustainable feedstuffs. In this regard, we’re 14,000-plus employees and dairy farmers are positioned to help transform the industry even worthwhile. beyond our own corporate boundaries with our DMK 2020 sustainability strategy, the prelimi- After a favourable prior year for the dairy nary work on the realignment of our Milkmas- industry, the market took a more difficult ter Programme and a wide range of initiatives. turn in 2018... We also took the initiative in 2018 at the higher, INTERVIEW WITH THE CEO 11

sectoral level for that purpose, and suggested That’s correct, and these resignations tendered process. However, our corporate culture also the idea of a joint sector strategy for the entire in the year 2016 were a clear sign of discon- “We are needs to change in order to achieve this goal. dairy industry. Politicians and professional asso- tent, which we took on board. Since then, we In concrete terms, we have to learn to change ciations welcomed this thought. have successfully redesigned our company and our way of thinking, cast off former blinkers, the remaining dairy farmers are also benefit- positioning go new ways and, above all, pull together in When we look at our own performance, it is ing from the progress made to date. In other the same direction. also true to say that we are not happy with the words: if resignations are an expression of dis- ourselves as milk price paid to our farmers in connection satisfaction, the fact that we’re welcoming new That sounds good in abstract terms, but what with our business results in 2018. The level of farmers to DMK again now can be counted as a modern food exactly do you mean by setting a trend? the payments was lower across the industry as approbation. When we take it easy in times of rapid change, a whole in 2018 than in the prior year because we stand still. Whether it’s the impact of dig- of the market situation. In this environment, For us as an enterprise, these resignations manufacturer” itisation, which is bringing new players onto we only achieved a farm-gate milk price in the were also an opportunity, which we mas- the food market, or consumers’ changing mid-range for Germany - this is not what we tered well operationally and will continue demands, which are shifting towards conven- aspire to. We continue to see our tasks here as to use to our advantage in the near future: ience, sustainability or functional food – we follows: we are engaged in a complex change the portfolio that we streamlined for some If I say “everything”, it’ll sound like an exag- have to consider consumers’ wishes deeply all process and the investments we have made in countries, customers and factories comes geration. However, it’s a perfectly accurate the time and work today on the products they the market have not yet led to the expected mainly from the not-so-profitable commodity description of the impression I have when will want to buy tomorrow. results at all points. However, we’re already segment and, what’s more, would have made I consider today a company that has had a seeing significant progress. For this reason, little contribution to our value added in the radical makeover in the last two years: we’ve We managed to do that well in many areas last established a new organisational structure, year: not least, our structured, DMK-specific we’re overhauling our portfolio, setting up trend management with external and inter- new processes, implementing a new corporate nal trend scouts is demonstrating attractive culture and, above all, we’ve shed our under- new product opportunities. With MILRAM, “We're working today on the standing of ourselves as raw milk processors. we’re developing better than the market in And that is the most important thing: if we almost every area. The newly opened baby still want to earn a competitive milk price for food factory in Strückhausen forms the basis products of tomorrow” our dairy farmers tomorrow, we have to posi- for the major growth opportunities we see for tion ourselves as the company we are after the Humana brand. In the past two years, we the realignment: a modern food manufac- have already started expanding our market turer. That means we have to think from the share in many countries with a more honed we will continue to work hard on concrete current year and beyond. We can also fully point of view of markets and customers, not of profile directed at mothers as a target group. measures with which we aim to achieve a fur- utilise our factories’ capacity with our pres- raw materials. This also means putting value In the ice cream segment, our colleagues have ther marked increase in value added in the ent volume of milk. We’ve also opted for toll added before growth – it’s not primarily about entered successfully into partnerships with different business units and therefore also a production contracts, which present no cost how much milk we process, but how much famous brands such as Baileys or MILRAM and steady, competitive milk price. disadvantages compared to processing our the processing brings in for us and our dairy are expanding these partnerships profitably. own milk. farmers. For this reason, we have to focus For the members of the cooperative, resign- closely on our customers and consumers in In that case, after two stressful years DMK ing is the clearest way of expressing their Saying that DMK has “redesigned” itself all we do and, in the best case, set trends with will have a more peaceful existence? dissatisfaction. At the end of the year, dairy sounds pretty comprehensive – exactly our products rather than running after them. Yes and no: we’ve completed the phase of inten- farmers left DMK and with them almost one what is different now because of the change We’ve already aligned our team organisation- sive reconstruction and organisational realign- billion kilos of milk. process? ally to this purpose within the transformation ment to a large extent, and our company’s DNA INTERVIEW WITH THE CEO 13

What does the target image mean for the To sum up: what challenges does the DMK company? Group have to address? “If we don't take New organisational structures and processes With our chosen path, we’ve created the foun- can be implemented with relative ease. But that dation from which we can look to the future alone won't get us very far. Rather, we have to with an open mind for further developments change our company’s culture to allow us to and adjustments. What will our environment care of our future achieve our long-term goals. And this change look like in the future, what will shopping look starts in the mind. With our target image 2030, like in the year 2030, what will consumers we want to motivate every single employee to want, who will our competitors be, how will use their new, added scope, contribute new digitisation affect our business? We have to find direction today, we ideas and part with the notion that all we do answers to these questions so that we know is process our raw milk. However, there’s no how to develop our business and set it up com- magic formula for that. We’re therefore creating petitively for the long term in a highly compet- needn't bother to new formats and measures all the time so that itive environment. Let’s take the smartphone we can take this direction. Because there’s no as an example. The technology in the devices such thing as an assembly kit for a new corpo- only changes incrementally year on year. How- rate culture. Employees meet at our “Brainfood” ever, when you look back over 10, 15 years, our turn up tomorrow” events to discuss the topics of tomorrow with everyday lives, the way we get information and trend researchers, for example. Our “different consume media have been completely turned thinking” space, in turn, provides space for a upside down. That’s why we have to keep our new meetings culture and therefore encourages eyes constantly on the future, so that we can cross-departmental, open and creative shar- use these processes for the DMK Group’s devel- is set and will define our actions in the future. ing. And our new vision “The first choice. For opment. However, we can never allow ourselves to think always.” will support the direction we've taken that the hard work on our further development by summing up our vision, mission and values is done. To stand still would be a failure for a succinctly and clearly. company of our size and in view of the breadth of our customer and product portfolio. Even if A new strategy, then? our day-to-day business is challenging, we have No. The focus on 2030 is not a new strategy or to look over our own garden fence and think a new restructuring programme, but rather WHY IS THE 2030 TARGET along new lines. That will protect the day-to-day an evolution of the course we’ve taken in the IMAGE IMPORTANT? business of the future. last two years. We will stick to that course in the future and not change it because of short- Stating it rather over-bluntly, if we don't take term market movements. If we want to improve ▶ It focuses the total organisation on care of our future direction today, we needn't and save costs at this point, we have to decide a consistent goal with clear priorities bother to turn up tomorrow. That’s why, in the where we want to get to. Otherwise, we’re ▶ year under review, we’ve given intensive consid- making short-term decisions that will bar our It ensures sustainable competitive- eration to what we have to prepare for in future way in the future and lead to double work. The ness and a successful future and developed a target image of DMK 2030 from business is and will remain challenging, that’s ▶ It sets our direction early and aligns that. The concrete detailing of the associated clear. However, if we look beyond our own gar- On-trend, up-to-the- us with growth areas in good time actions in all business units is one of the main minute innovations: den fence we’ll be securing the day-to-day busi- strategic topics in the current fiscal year. MILRAM Kalder Kaffee ness of the future. OUR KEY CONCERNS 15

We're aware of our responsibility

When you think milk, you think stopped using the plastics that will have to be reduced in future under new regulations, and nature – that's certainly what we have initiated a wide range of improvements, do. Manufacturing our high-quality, not only through projects on climate protection natural dairy products in harmo- in the supply chain, but also by internal meas- ures such as a waste management database. ny with mankind and nature is of We also want to develop collaboration with central importance to us. That's customers and other key players further on a basis of partnership in the future. We target why we use our sustainability cost-efficient entrepreneurship that harmo- strategy and the Milkmaster nises the requirements of customers and con- Programme to work systemati- sumers with the business needs of the dairy farmers. Our strategy therefore concentrates cally on embedding sustainabili- not only on individual aspects, but on the ty in our supply chain from grass comprehensive and multi-layered integration of aspects like animal welfare, environmental to glass. protection and the dairy farmers’ economic prospects. Holistic thinking We take a holistic approach which addresses Spotting trends the key topics in the supply chain, such as ani- Sustainability in food is one of the global mal welfare, climate protection, sustainable megatrends: where does the food come from, feed and basic raw materials. The approach how is it produced? The aspects of animal has proved successful: Not only do we have welfare, regionality, sustainability and social a leading position in GMO-free milk in Ger- engagement are gaining in importance. In a many, with 2.5 billion kilos - we also work on study conducted in 17 countries, 43 percent recyclable packaging for cheeses, long since of respondents favoured GMO-free products OUR KEY CONCERNS 17

and 37 percent preferred food from their own not achieve what we do. We therefore set the region. The focus is also increasingly on pack- greatest priority as an employer on developing aging. With our “Future of Packaging” inno- and challenging all employees. Our employees vation initiative, we are taking up this trend, have certainly faced major challenges in the which is primarily about the avoidance, recy- past two years: we have redesigned the com- cling and circular economy of plastics. In this pany and undergone an organisational trans- context, we are participating in research pro- formation in which one in five of the current jects, commissioning studies and setting up 7,700 employees took on a new role. We want workshops and pilot projects. The goals here to develop our employees with the best pos- are to reduce plastics, improve recyclability sible opportunities for training and continu- and use renewable and compostable materials. ing professional development, but also with Our targeted trend management, with which our culture change based on transparency, we identify trends early and integrate them respect, leadership competence and a strong into our product portfolio, shows in particular community. how right we are to take this approach. With trend management, we put our faith in explor- In addition, however, the company is also also ing and analysing longer-term mega-trends responding to the constantly changing needs and in a structured trend and innovation pro- of a new generation, such as the home office or cess. Since trends arise all over the world, not job rotation. Because ultimately, the interaction only internal but also external trend scouts of the “we” feeling, individual development collect them in the global metropolises and and flexibility in working life is what makes a help us to detect customers’ wants even before modern employee. So that every employer can they formulate them. perceive the meaning of his or her job and per- sonal impact on the company’s profitability, Culture of respect we are actively breathing a new spirit into our When we talk about the harmony of man- newly restructured domain. For this purpose, kind and nature, we focus on the people side we have developed a harmonised set of HR not only on our farmers, but in particular tools that is based on the company’s core values also on our employees – without their daily “entrepreneurial”, “fair” and “innovative” and work, competence and engagement, we could on a new competence model.

More than 14,000 farmers & employees work for DMK OUR PRODUCT ASSORTMENT 19 Our products bring generations together

Fresh dairy products Page 20 Cheese Page 22 Baby food Page 24 Ice Cream Page 26 Ingredients Page 28 FRESH DAIRY PRODUCTS 21 We set standards

Our passion is devoted to the milk that we pro- Niche yesterday, mainstream today cess, to create high-quality fresh dairy products Health-conscious nutrition has also emerged such as cream and curd as well as convenience from a niche to become mainstream. Alternative solutions for use in the gastronomy and hospi- sweetening and the more sparing use of sugar tality sector. We set standards with our branded are also seeing a similar trend. We are respond- and private label products in German food ing to this with a major innovation initiative. In retailing - and far beyond, with our Oldenburger the first step, we are reducing the sugar content and Rose export brands. in the existing MILRAM portfolio step by step so that our products will convince consumers MILRAM wins awards who are accustomed to sugar. We are deliber- The presence in a company’s portfolio of a ately ruling out artificial sweeteners and sweet- product that was recently awarded “Brand ener-based flavours. Our second approach is to of the Century” does not come about by have new products which we will produce from chance. Why did we receive this honour for the start without sugar or sweeteners or with a our heritage product MILRAM FrühlingsQuark? low sugar content. MILRAM Kalder Kaffee needs Because we constantly reinvented it. MILRAM no added sugar or sweeteners and the MILRAM is very popular with consumers: it was voted buttermilk drink Sorte des Jahres (“variety of one of the “Top Brands 2018” on the basis of the year”), the new varieties of MILRAM Feine surveys of 70,000 households and individual Quark Creme curd cream, MILRAM Skyr Drinks shoppers. and the MILRAM Food Service Skyr Dessert are being produced with reduced sugar. Emotions win loyalty Always smarter, more exotic, more individu- al - in times when food becomes fashion, we favour early adaptation of current and future trends. Nutrition is becoming more and more of an expression of personal lifestyle. Consum- ers want products they can trust. With new, cheeky MILRAM products and campaigns, we are therefore increasing the emotionalisation of our brand and creating a closeness to our north German “Heimat der Frische” (“Home 252 of Freshness”) with new products such as awards for DMK products MILRAM Kalder Kaffee, Friesen Drink and Awarded Brand of the Century: Moin cocoa. MILRAM FrühlingsQuark CHEESE 23 Cheese – regional, natural & convenient

Whereas people once came to work carrying the MILRAM range, we take the best of our north tin cans with handles or lunch boxes, they now German home to consumers all over Germany. prefer to grab a quick pizza or made-up sand- We also stand for high product competence and wich. Restaurants and take-away chains are the regional cheese specialities in selected foreign norm in our cities and define our new eating markets, thanks to the range of cheeses produced habits. Convenient food consumption on the go from regional milk by our Russian subsidiary is among the megatrends, and is one of the rea- RichArt and Uniekaas, which has been the sons why the total market for cheese worldwide leading Dutch Gouda brand for the past 50 years. is growing by around 1.8 percent every year. The The authentic Uniekaas products are based on trends towards regionality and naturalness are traditional recipes and are produced from 100 also adding to the rise of cheese: more and more percent fresh meadow milk at our two sites in people prefer natural products from their local the Netherlands. To boost the positive develop- region. We are aligning our diverse portfolio ment further, we have revitalised the brand with with these three trends. a fresh and yet traditionally Dutch design, new recipes and innovative cheese concepts. Mozzarella is booming Pizza Margherita, Caprese sandwiches, pasta dishes and salads with tomato and mozzarel- la - the little round Italian is a big hit in of the convenience food trend. The market for mozza- rella is growing annually by five to eight percent. It delivers a lot of protein and calcium and even The total market for cheese is more flavour to modern menus. We have there- growing worldwide by fore invested in the expansion of mozzarella production at two sites. The cheese is kneaded, stirred and pulled there in the typical produc- tion process.

A piece of home in the chilled cabinet As a cooperative of dairy farmers, we operate in ten federal regions throughout Germany and therefore have strong regional roots. With prod- 1.8 Our flagship in percent every year ucts such as Müritzer, Sylter and Küstenkäse in Dutch Gouda BABY FOOD 25 Baby food with a past and a future

Children are our future - day after day, parents New home for baby food in more than 50 countries all over the world Over the past years we have successfully set a entrust their greatest treasures to our heritage course for significant growth with the Humana brand Humana. With milk formulae and special brand and have already positioned ourselves as formulae for infants and toddlers, we are a reli- the market leader in special formulae and infant able partner to parents for high-quality, inno- formulae in Italy, which is an extremely com- vative baby food. The Humana range includes petitive European market. Our new production cereals, jarred foods, desserts, teas, juices & site for baby food in Strückhausen is a system- water and food supplements for babies and nurs- atic continuation of our strategy of increasing ing mothers. Subsidiary Sunval specialises in value added and driving forward the branded organic baby foods for Private Label customers. products business. We have invested 145 mil- lion euros here in state-of-the-art technology, a Everyone's heard of Alete high-quality infrastructure and low-energy pro- The baby food market promises further profit- cesses and equipment. The result is one of the able growth in the years to come. By the acqui- most modern baby food factories in Germany. sition of the brands and distribution of Alete We are now in a position to make up to 40 mil- GmbH and German Babyfood GmbH, we have lion kilos of milk from regional, GMO-free dairy opened up potentials in new segments beyond farming into the highest quality of powdered the classic milk formulae. Jars of solid baby food baby milk formula for the global market. from Alete have been a fixture in the lives of many young families since the 1950s. The Alete and Milasan brands are a logical addition to our baby food portfolio, and at the same time extend our distribution radius significantly.

By mothers for mothers In A milestone and a visible signal of the Humana concept “by mothers for mothers” is the innova- tive myHumana pack. This packaging, tailored to mothers’ needs, is the result of a survey of around 1950, 6700 mothers around the globe. On the basis of Humana developed the first their answers, we developed the optimum solution ever infant formula that closely for the core category of milk formulae in respect of resembled breast milk. safety, ease of handling, attractive design, perfect Developed to satisfy what portioning and anti-bacterial properties. mothers want: the myHumana Pack ICE CREAM 27 Our feeling for ice cream

Ice-cold, and a hot favourite for millennia: ice ness pack to MILRAM Lemon Buttermilk ice cream has added variety to our diets since cream. Bahlsen now opens a new chapter in antiquity, and not only in warm weather. our successful brand cooperations, adding But even though the love of ice cream has fresh inspiration with various ice cream varie- remained unchanged across the ages, we have ties of the well-known classic biscuits Bahlsen not stood still in matters of ingredients and Ohne Gleichen and Messino. flavours. We have revolutionised our portfolio over the last few years with innovations such Guilt-free enjoyment as buttermilk ice cream and skyr ice cream, Less fat, less sugar, fewer calories – we are also and have added inspiration to our ice cream responding to the trend to more health-con- business since the realignment with new var- scious nutrition with new varieties of ice cream. iations on well-known branded products. We We are introducing our popular MILRAM Skyr have expanded our portfolio with a great deal as a fruity, high-protein, low-fat alternative to of sensitivity to trends, achieving a position conventional ice cream: made with skyr and a in the European industry’s top five in the lot of milk. Skyr comes originally from Iceland shortest possible time. The additions include and is comparable to low-fat curd or yoghurt. new inventions such as Baileys ice cream in We have extended the range by a fruity blueber- wafers, high-quality MILRAM Moin dairy ice ry-elderberry combination as a follow-up to the cream with a 70 percent milk content and pro- raspberry-cranberry and apricot-sea buckthorn tein-rich MILRAM Skyr ice cream. varieties.

Successful cooperative ventures Baileys, MILRAM and most recently Bahlsen as well: we are introducing highlights with Every German citizen eats our ice cream creations for special brands, and creating new touch points with their fans. Following the major success of our Baileys ice cream in tub and lolly form, we are now extending this assortment into the second-largest market segment - the wafer cone - with “Vanilla Chocolate Desire” and “Double Chocolate Luxury”. Our MILRAM scoops of ice cream 124 brand is also the “Home of Freshness” for ice DMK takes the per year. cream, and offers ices to suit all tastes from classic biscuit to our classic MILRAM Moin in the 500ml fresh- the freezer INGREDIENTS 29 DMK is on everyone's lips

Pizza, cake, chocolate, vegan steaks, energy Focusing on essentials bars – at first glance, such products have little Such trends are central factors of our value to do with Germany’s largest dairy cooper- added-based whey strategy. We concentrate on ative. And yet, when you look more closely, high-potential segments both in the devel- there is often quite a lot of DMK in these foods. opment of our ingredients portfolio and the Our valuable natural resource is incorporated markets in which we operate. This is leading into a broad portfolio of B2B solutions for the to a shift in the weighting towards clinical, manufacturing industry, tailored to individual infant and sports nutrition as opposed to skim needs. Food manufacturers use DMK ingredi- milk powder and to the targeted expansion ents such as evaporated milk, cream, butter, of our existing successful activities in certain powder and cheese, particularly for confec- target regions. tionery and baked goods, convenience food, sports nutrition and baby food. Highly regarded in China Alongside Japan, China is one of our important There’s passion in it target markets on the continent of Asia. We Our subsidiaries wheyco and DP Supply round position ourselves there as a manufacturer of off the portfolio with versatile applications. high-quality products “Made in Germany”, with DP Supply products are to be found in baked products that are tailored to customer needs goods, soups, sauces and snacks, hot and in terms of both composition and functional- cold beverages, meat products and ice cream. ity. We have been a recognised high-quality Wheyco focuses on the development and supplier in China for ten years now and are production of high-quality, highly concen- therefore well placed to take a share in market trated whey proteins as well as lactose and growth with our product portfolio of milk- and permeate, which are used mainly for baby whey-based ingredients for groceries and baby food and sports nutrition, as well as in the food, clinical nutrition and sports nutrition. beverages, baked goods, meat and dairy And pundits consider that this sector shows industries. The area of health and sports great promise: according to the experts, the nutrition is an important market segment for Middle Kingdom is likely to see significant us at present, and will remain so in the future. growth rates in such areas as clinical nutrition So-called “healthy hedonism” is one of the and sports nutrition in the near future. percent of Germans who do sports five major food trends alongside convenience, and is boosting bars and powders as a food regularly43 buy sports-specific food supplement for athletes and health-conscious several times a month individuals. An ingredient in virtually every one of them: whey proteins. About the DMK Group OUR SITES IN GERMANY AND THE NETHERLANDS As of June 2019 Nord- hackstedt Strück- Dargun hausen Bergen Germany's largest dairy OUR MILK ORGANISED IN SIX BUSINESS UNITS Neubörger cooperative makes milk into Hohen- westedt foods of the highest quality with around 7,700 employ- Hohen- Waren ees at more than 20 sites in Zeven Edewecht Headquar- Germany, the Netherlands and Private Label Industry Ice Cream Hoogeveen ters Alten- other international hubs. The treptow product portfolio ranges from 8 Beesten Holdorf cheese, fresh dairy products billion kilos Bremen u of milk Adminis- Georgs­ and ingredients to baby food, tration Prenzlau processed marien- ice cream and health prod- Brand Baby International Münster hütte ucts. MILRAM, Oldenburger, Uniekaas, Alete and Humana SUSTAINABILITY PARTNERS are brands that enjoy the full r Wald- confidence of consumers at feucht- Evers- home and abroad and make Haaren winkel the company an established Bad name, both in its home 2.9 Homburg markets and selected target DMK is one of the most import- markets around the globe. As 2.9 billion kilos Erfurt of GMO-free milk, ant suppliers to German food one of the largest suppliers to as of May 2019 retailers Germany's grocery retailers OUR MARKETS and with a turnover of 5.6 bil- Wag- lion euros, the DMK Group is häusel Focus on Europe and also one of the leaders of the selected global target European dairy industry. markets

Fresh dairy products

Cheese Ice cream

Baby food OUR VALUE ADDED Health billion euros Animal feed of turnover 5.6 in 2018 PEOPLE BEHIND THE DMK GROUP Farm gate milk 27.57 36.29 33.57 price per kilo 25.20 cents/ cents/ More than cents/ cents/ kilo kilo kilo Over kilo 200 55 14,000 2015 2016 2017 2018 apprentices nations farmers & employees For further information see the digital Annual Report and Sustainability Report 2018 at www.dmk.de. DMK Deutsches Milchkontor GmbH – Industriestraße 27, 27404 Zeven, Germany – TEL.: +49 4281 72-0 FAX: [email protected] +49 4281 72-58297 – www.dmk.de – E-MAIL: [email protected] – @DMK_Milch – WEB: www.dmk.de – DMK Deutsches – TWITTER: Milchkontor @DMK_Milch GmbH