Italian Milk and By
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ANALYST PRESENTATION Star Conference 2017 London, 8th October 2017 The Group 08/10/2017 Centrale del Latte d'Italia S.p.A. 3 The Group Centrale del Latte d’Italia S.p.A.. 100% 100% Centrale del Latte della Toscana S.p.A. Centrale del Latte di Vicenza S.p.A. 24.9% Shareholders Finanziaria Centrale del Latte di Torino S.p.A.; 37,83% Families Artom and The Group is controlled Forchino by private parties Other (historical families Shareholders ; 37,77% operating in the field), which are operationally involved in the company’s management, as well as by public bodies holding a minority interest. City of Pistoia; 5,26% City of Florence; 12,31% Fidi Toscana S.p.A.; 6,83% 08/10/2017 Centrale del Latte d'Italia S.p.A. 5 Mission Mission • Centrale del Latte d’Italia is a leading Group in the areas it is present in, able to compete on all channels and all markets: a business development project with strong, close links with the areas of origin, yet ready to expand beyond those areas, following a tradition able to confirm its value and to innovate, able to aim for new horizons and to find the energy and resources for growth. • Centrale del Latte d'Italia has 5 production plants in Turin, Florence, Vicenza, Rapallo (Ge) and Casteggio (Pv), able to directly produce fresh, ESL (Extended Shelf Life) and UHT milk, yoghurt, fresh products and plant-based drinks, as well as to sell packaged own-brand products in the fresh sector, such as eggs, cheese and pasta produced through selected customers. • The Group employs 444 people and distributes no less than 120 products in the relevant area of brands such as TapoRosso, Mukki, Tigullio and Vicenza, operating a retail network composed of 2750 points of sale and boasting 13000 customers in the normal trade channels. • • The Group brings together brands with a strong presence at local level, which share essential values such as quality, safety and close links with the local areas. This is combined with an awareness of the need to strengthen, relaunch, diversify and extend the Group’s business, while continuing to offer the excellent quality distinguishing the individual companies within it, making the most of the production facilities by maintaining their value and substantially respecting the way the individual companies operate, without prejudice to any improved organisational solutions that may be adopted in order to optimise the production chain by maintaining and adding supplies from local farmers. 08/10/2017 Centrale del Latte d'Italia S.p.A. 6 Plants and Brands Location of the Plants Brands Raw material mkt 08/10/2017 Centrale del Latte d'Italia S.p.A. 8 Lombardy – Farm-gate milk prices 08/10/2017 Centrale del Latte d'Italia S.p.A. 9 Source: Chamber of Commerce of Milan 08/10/2017 Centrale del Latte d'Italia S.p.A. 10 Italy, Milan – Centrifuged butter Source: Chamber of Commerce of Milan Italian market overwiew 08/10/2017 Centrale del Latte d'Italia S.p.A. 12 Italian market overwiew JAN – AUGUST 2017 COMPETITOR ANALYSIS – MARKET SHARE VALUE FRESH MILK € 352 mln UHT MILK € 533 mln CLI Group CLI Group 3,9% 7,6% Altri 23,9% Altri Parmalat 29,1% Parmalat 33,0% 22,7% Sterilgarda 3,2% Private Labels 16,6% Private Labels 19,1% Granarolo Granarolo 21,5% 19,4% Source: IRI Infoscan I+S 08/10/2017 Centrale del Latte d'Italia S.p.A. 13 Market overwiew – Fresh Milk Hyper + Super JAN – AUGUST 2017 COMPETITOR ANALYSIS – MARKET SHARE VALUE FRESH MILK € 94 mln Piem – Lig – Ven - Tosc CLI Group Altri 28,3% 32,1% 30,0 25,0 20,0 15,0 Parmalat 10,0 6,7% 5,0 0,0 Private Granarolo Labels 12,4% 20,5% Source: IRI Infoscan I+S 2013 2014 2015 2016 Gen-Ago 17 08/10/2017 Centrale del Latte d'Italia S.p.A. 14 Market overwiew – UHT Milk Hyper + Super JAN – AUGUST 2017 COMPETITOR ANALYSIS – MARKET SHARE VALUE Piem – Lig – Ven - Tosc UHT MILK € 144 mln CLI Group 14,4% Other 26,8% 30,0 25,0 20,0 15,0 10,0 Parmalat 5,0 Private 26,7% 0,0 Labels 19,9% Granarolo 12,2% Source: IRI Infoscan I+S 2013 2014 2015 2016 Gen-Ago 17 How can we grow in a local market focusing on a strong leadership? 08/10/2017 Centrale del Latte d'Italia S.p.A. 16 How can we grow in a local market focusing on a strong leadership? Italian Milk Centrale and by- Latte Italia PL Market products Market Market Stable and Very Strong in our area: Steady growth 4 brands means less risk since 2017, hystorical 4 different regions means stability and market, after less risk years of And this also means 4 maturity have difficulties new opportunities been achieved. fresh milk gets We can now a stability sign take advantage (2017 jan aug The only group of a valuable -1,6%) reporting a steady opportunity. growth over the last 4 years Best innovation rating with a large range of products 08/10/2017 Centrale del Latte d'Italia S.p.A. 17 How can we grow in a local market focusing on a strong leadership? We are introducing many products into the market in order to Centrale meet the new costumer’s needs: Latte Italia Market Soya-based yoghurt: a new market with a fast growth Very Strong in our area: 4 brands means less risk 4 different regions means less risk Baby Milk: a growing up And this also means 4 milk suitable from 1 to 3 new opportunities years Omega3 Milk: a milk enriched with Omega 3, EPA, The only group DHA and vitamins reporting a steady growth over the last 4 Drinkable yoghurt: 3 years flavours, low fat and 100% Best innovation rating Italian milk! with a large range of products 08/10/2017 Centrale del Latte d'Italia S.p.A. 18 How can we grow in a local market focusing on a strong leadership? EXPANSION INTO NEW AREAS Centrale Latte Italia Market Very Strong in our area: Verona 4 brands means less risk Aosta Santhià 4 different regions means less risk And this also means 4 new opportunities Savona Imperia The only group La Spezia reporting a steady growth over the last 4 years Best innovation rating with a large range of products 08/10/2017 Centrale del Latte d'Italia S.p.A. 19 How can we grow in a local market focusing on a strong leadership? Any other growth strategies? FoodService Co-packing for &HORECA important multinationals Export Online sales 08/10/2017 Centrale del Latte d'Italia S.p.A. 20 How can we grow in a local market focusing on a strong leadership? Any other growth strategies? Co-packing for important Export FoodService& Online sales multinationals HORECA In Italy, online Signing of an Development of Development food sales are important co- our business in and growing but packing new countries, as strengthening of thy’re still under agreement we are now new horeca 1%. So we chose with a major present in: strategic to focus on the multinational - China products: Chinese Online - Cappuccino food market, the group. - Hong Kong - Dubai Lovers most important - Quatar Professional UHT in the world First - Saudi Arabia cream production - Vietnam Mascarpone Gen2018 - Sri Lanka Easy Gelato - Seychelles 08/10/2017 Centrale del Latte d'Italia S.p.A. 21 How can we grow in a local market focusing on a big leadership? So… To sum up Co-packing for New Products important Export FoodService multinationals &HORECA Private Label Stable Production PL with Italian PL for Innovative Market Discount products PL with Centrale Latte Italia Groups Innovative PL with Market: very Strong in Machinery Online sales Vegetable PL with our Area: Organic 4 brands means less Drinks risk Products 4 different regions mens less risk Source: IRI Infoscan I+S Marketing activities 08/10/2017 Centrale del Latte d'Italia S.p.A. 23 New Products – Plant-based yoghurt 08/10/2017 Centrale del Latte d'Italia S.p.A. 24 New Products – Ready to Drink Yoghurt 08/10/2017 Centrale del Latte d'Italia S.p.A. 25 New Products – Baby Milk, for kids aged from 1 to 3 08/10/2017 Centrale del Latte d'Italia S.p.A. 26 New Products – Enriched Milk – OMEGA 3 to improve heart health 08/10/2017 Centrale del Latte d'Italia S.p.A. 27 Marketing – Turin 2017 campaign 08/10/2017 Centrale del Latte d'Italia S.p.A. 28 Marketing – Turin – First dairy company in Italy sourcing from 100% dairy-farms with certified health compliance!!!!! 08/10/2017 Centrale del Latte d'Italia S.p.A. 29 Marketing – Turin – other important activities 08/10/2017 Centrale del Latte d'Italia S.p.A. 30 Marketing – Turin – Charitable activity in support of «Fondazione Umberto Veronesi» 08/10/2017 Centrale del Latte d'Italia S.p.A. 31 Marketing – Rapallo 08/10/2017 Centrale del Latte d'Italia S.p.A. 32 Marketing – Rapallo 08/10/2017 Centrale del Latte d'Italia S.p.A. 33 Marketing – Vicenza 08/10/2017 Centrale del Latte d'Italia S.p.A. 34 Marketing – Florence 08/10/2017 Centrale del Latte d'Italia S.p.A. 35 Marketing – Florence 08/10/2017 Centrale del Latte d'Italia S.p.A. 36 International Exhibitions 2017 Numbers&Finance 08/10/2017 Centrale del Latte d'Italia S.p.A. 38 2018 PROJECTS Plant of Turin Investments 2018 – 2021 for expansion and upgrading 08/10/2017 Centrale del Latte d'Italia S.p.A.