VINTAGE 2013

ALTIA MAGAZINE #2 2 ALTIA VINTAGE 2013 VINTAGE CONTENTS

ALTIA MAGAZINE #2

THE LEADER 04 Sharing the best moments APÉRITIFS 05 Short and sweet highlights STRATEGY 10 The importance of picking your battles Licence to serve 12 Unveiling Partner Brands’ new full service concept The plastic explosive 14 A shift in the way Altia packages its wares Thirst for change 16 Two recently-recruited managers give their impressions To enable and encourage 18 Experimenting with coaching as a leadership style A taste of things to come 20 The trends that are shaping the industry The bubble that never bursts 22 Detailing a profound change in attitudes to champagne Sharing the best vacation memories 24 How does the perfect holiday taste?

VINTAGE #2

EDITOR-IN-CHIEF Anu Salmi-Savilampi MANAGING EDITOR Milja Fromholtz CONCEPT AND PRODUCTION Miltton Oy PROJECT MANAGEMENT Rebeca Romero, Antti Salomaa, Varpu Varpela DESIGN DIRECTOR Janne Melajoki WRITERS Caroline Dewar, Ian Fenton, Patricia Ongpin-Steffa PHOTOGRAPHERS Caroline Dewar, Heiki Laan, Juho Paavola, Tomi Parkkonen COVER PHOTO Shutterstock ASSISTANT DESIGNERS Hanna Bruno PRINTED BY Libris, Helsinki 2014

Contact information: Altia Oyj, PL 350, 00101 Helsinki. Street address: Porkkalankatu 22 A, 00180 Helsinki. Switchboard: +358 207 013 013. altiacorporation.com 4 THE LEADER PHOTO TOMI PARKKONEN

Sharing the best moments

e at Altia have noted a strong ongoing trend towards a culture of sharing. With the rise of social networking, people are using the Winternet to share all sorts of things, from stories and experiences to goods such as cars, tools or even apartments. What’s prompting this shift? First of all, sharing makes life easier. It’s useful, not to mention fun. It also happens to be the reason for Altia’s existence - ‘Sharing the best moments’ is the brand promise we seek to fulfill each day. Moments may not be as tangible as objects, but “Sharing makes sharing them is arguably as important and valuable as sharing concrete things. Everybody knows that shared life easier. It’s joy is a double joy, but shared sorrow is only half a useful, not to sorrow. Historically, the shared economy is said to be just mention fun.” over a decade old. In contrast, the instinct to share moments goes back too far to trace. It’s so deeply ingrained in human nature that it’s not likely to ever vanish. In fact, signs point to the contrary – as societies continue to progress, people’s need to gather together and share moments is growing all the time. Through our recognised brands, both our own and our partners’, Altia offers the right toast to mark those moments that are worth remembering, whether it’s a cosy evening at the summer cottage, a long-awaited holiday, a wedding feast or a Nobel Prize Banquet. We believe sharing the best moments is a solid basis on which to build our future with our partners, customers and consumers. This second issue of Altia Vintage communicates the many ways that we at Altia strive to bring you the best beverages for the most meaningful moments you share. We hope you enjoy reading it.

Hannu Tuominen, Interim CEO, Altia. ALTIA APÉRITIFSVINTAGE 2013 5

Short and sweet Wine highlights culture on the from Altia’s web and 2013 beyond Putting logistical excellence on the map ltia’s recently revamped Viinimaa web Asite has been a proud success, with 2013 saw a radical shift in Altia’s logistics operations, as the company’s Swedish facilities were increasing visitor numbers demonstrating consolidated at a newly-constructed site in Brunna, 30 km north-west of Stockholm. that Finnish consumers find it relevant and The new premises combine the operations of Altia’s warehouses in Årsta and DHL/Örebro useful in their efforts to learn more about wine into a single 21,000 m2 facility, providing clear long-term benefits for the company’s customers and food culture. and partner brands. Catering to everyone from beginners With a 10-year lease for the site signed in 2012, construction was completed in autumn 2013 upwards, Viinimaa offers an easy and enter- and transfer of operations immediately commenced. Brunna’s 20 transport gates and 96 rows taining way to increase one’s knowledge of for outbound shipments now see a turnaround of some 40 trucks per day. Over the course of a wine. The responsive site, accessible conven- year, these new premises can expect to serve 140,000 customer orders. iently using any device, also covers current This drive for increased quality and efficiency is designed to strengthen the company’s trends in food and drink. Recent hot topics competitive edge in the Swedish market. “Logistics is an in-house competence we aim to include sparkling cocktails and punch recipes, preserve and constantly develop,” explains Veli-Matti Passinen, Director, Customer Service for example. & Logistics. “The huge investment in Brunna shows the measure of our commitment, and Altia’s partners have also shown a strong the advantages to our customers and partners will be demonstrated clearly in practice soon interest in the site, coming to see it as an enough.” excellent channel for cost-effective commu- nication with targeted consumer groups. Viinimaa visitors can learn a great deal, for example, from recipes, stories, and videos centred on Altia’s partners’ products. Viinimaa has also been gradually expanding beyond the digital realm with its unique Viinimaa bar-in-bar concept. These locations, so far based in cafes and delis in Turku, Kuopio and Pori, are implemented in close cooperation with Altia’s horeca customers, and serve wines available in Alko stores. The latest Viinimaa bar-in-bar will be opened in Tampere during spring 2014.

Brunna, Altia’s new logistic centre, is situated 30 km north-west of Stockholm. 6 ALTIAAPÉRITIFS VINTAGE 2013

Masi – A unique label Upping Stockholm’s for a singular wine world-famous Amarone house wine ante A wine, Masi Costasera Amarone is used by many winemakers as a reference for visit to Stockholm wouldn’t be complete without a trip to one their own production. Despite of the city’s world-renowned restaurants. But it might come numerous aspirants, Costa- as a surprise that such diverse eateries as Riche, Teatergrillen, sera remains unequaled. On Teaterbaren, Sturehof and Taverna Brillo are in fact all part of November 1st 2013, Masi Athe same group: Svenska Brasserier. unveiled a limited edition label It’s not just great food on the table either: in 2013, Philipson Söder- for the 1998 vintage of Costa- berg extended their collaboration with the group. The deal includes a sera, which features a unique two-year contract for house wine, red and white; house Chablis and work of art by the Swedish artist house Sancerre. Ernst Billgren. The Boscaini Svenska Brasserier made the very informed choice of Jean-Luc family, who have been behind the Colombo AOC Côte du Rhône, “Les Abeilles”, in both red and white Masi winery for seven genera- varieties. “This is a leap forward in quality compared with its previous tions, commissioned the label as house wines, which were Vin de Pays d’Oc,” added Andreas Carlsson, part of the Costasera Contempo- Key Account manager at Philipson Söderberg. rary Art project. Every two years The house pouring Chablis will be Domaine des Malandes, from a Masi will enlist an internationally 27-hectare domaine owned by Lyne Marchive, a partner of Philipson renowned contemporary artist to Söderberg’s for three years now. The Sancerre will continue to be Henri reinterpret Costasera’s distinc- Bourgeois Les Baronnes, and Masi Campofiorin will also be served by tive label. Altia represents Masi the glass (and bottle) across the group. in Sweden and Estonia.

Altia expects to achieve cost savings as soon as the lines are reopened in March. As a result of higher utilisation rates on the bottling lines, the company’s overall plant utilisation rate will improve by roughly 20%. Approximately 200 additional Ramp-up proceeding as planned in Rajamäki inventory items will now be produced at Rajamäki. n early March, Altia initiated in 2014. Previously the plant to decreasing operational costs “We are working with a I a project to transfer all of had a record volume of approxi- significantly, efforts are also good network of suppliers who its wine and glögg operations mately 61 million litres. Altia will being focused on enhancing are helping us make this kind from Svendborg, Denmark to continue to undertake its logistics quality. Environmental benefits of ramp-up possible. Several Rajamäki, Finland. The bottling operations in Svendborg. will also be gained through the companies are supporting us volume at the Rajamäki facility, By consolidating production use of an advanced method in terms of design, equipment which amounted to 52 million at its modern Rajamäki plant, of cleaning the lines, which and technical expertise,” says litres in 2013, is expected to Altia aims to optimise its supply minimises the use of water and Tuomas Akkanen, Operations increase to about 71 million litres and efficiency further. In addition washing liquid. Development Manager. APÉRITIFS 7

Claims to the throne

uring 2013, Altia implemented a new The new collaborative process highlights Dclaims process in order to improve the concept of internal customership, helping customer and consumer service. The new Altia employees to understand how they can process, which has been taken into use across serve and assist each other in the big picture. Tarapacá finds love in Finland all business units, ensures that customer “We are all each other’s customers at Altia,” claims are systematically routed to the correct Eeva explains. “I strongly believe that how iña Tarapacá planted its first vineyards individual area at Altia for quick solution. quality is perceived depends on the func- V at the foot of the Andes in 1874. Over Customer feedback follows the same path, tioning of the whole supply chain.” a century later, the winery began exporting allowing the entire company to improve based its great wines beyond Chile. Fast-forward on how customers perceive their perfor- to 2013 and Tarapacá Santa Cecilia Merlot mance. Carmenère has become the seventh best- ”Our aim is to reply to all requests within selling red wine at Alko stores in far-off the same day, or the next day at the very Finland. The same product topped Altia’s red latest,” says Eeva Joki, leader of the Finnish wine sales for the year, supported by strong Customer Service team. Her team is dedi- representation in the hotel, restaurant and cated to finding solutions for all claims catering sector. A satisfactory 6% growth as soon as possible, never leaving a case in sales in the Tarapacá range, despite a unsolved. “I have worked at Altia for 10 years declining market in 2013, further proves and I know a whole bunch of people here. I Finns’ enchantment with the complex and could say that I know the right address for balanced Chilean imports. each claim we receive,” she says.

Blossa brings the mystery back into Christmas

ince 2003, the annual Blossa Glögg, a for their expectations, perceptions, guesses S seasonal mulled wine popular in the and commentaries on the new flavour on the Nordics, has become one of the hallmarks drink’s Facebook page and web site. of Swedish Christmas. With flavours varying The ensuing buzz made sure that Blossa from year to year, previous launches have seen was seen in almost every conceivable store by a palpable sense of excitement amongst the mid-October. Around 2,000 responses were shop shelves as consumers, eager to sample received to the mystery taste challenge, and the new taste, try to make sure they won’t be on the 13th of December, just as Christmas left out in the rush. preparations were nearing crescendo, the For Blossa 13, however, things went a little taste was finally revealed: a delicious blend differently. To provoke a little thought on the of raspberry and rosehip. Traditional and topic of ingredients and flavours, as well as seasonal, yet fresh and modern, Blossa 13 instil the product with a hint of mystery, the answered those high consumer expectations year’s flavour was not revealed on the drink’s nicely. Who knows where the drink’s restless packaging. Consumers were, instead, asked charms will lead next Christmas? 8 APÉRITIFS

Preserving Estonia’s windmill heritage

n the ancient island of Saaremaa, which O has been inhabited since the time of the Vikings, a number of traditional windmills are creaking into life once again. Saaremaa Vodka, with its windmill-deco- rated label, is Altia’s leading brand in Estonia. To strengthen the island’s heritage and become more involved with the local commu- nity, Altia and Saaremaa Vodka supported the restoration of Saaremaa’s iconic windmills. Under the long-term agreement signed with Saaremaa Tourism Development Centre, Altia will sponsor the restoration and maintenance of these important historic monuments. The windmills are invaluable cultural symbols of the famous island, and are In 2013, Altia began by sponsoring in full The renovation process of Pihtla wind- a magnet for locals and visitors alike. the restoration of the Pihtla windmill – which mill (right) began in April 2013. The By supporting the restoration and renova- has been turned into bird-watching station restored windmill was ready in October, tion of these unique sites, which are dwindling with accommodation for ornithologists – and and an opening event was held to cele- in number, Altia is also helping to preserve supporting the renovation of the Leedri mill, brate. Next in line is the Ilaste windmill, the craft of windmill construction – an ancient the traditional centrepiece of the local commu- which will be rebuilt in 2014. skill still practiced in Saaremaa. nity’s Midsummer celebrations.

Liquid gold at the Nobel Banquet Nobel Menu 2013 t’s hard to picture a more prestigious event than the Nobel Banquet. Held since 1934 in the I Blue Hall of the Stockholm City Hall, this gathering hosts more meaningful contributors to the Guinea hen mosaic, carrot variation with Gotland truffle, advancement of the human race than are ever present together elsewhere. and chanterelle duxelle with truffle mayonnaise This year’s banquet was particularly notable for Altia, as two of its products were served as Turbot cupola stuffed with Norwegian lobster, tartelette with lobster on a bed of cream cheese and spinach, accompaniments to the Nobel menu. Philipson Söderberg had the honour of providing the dessert pointed cabbage terrine, lobster sauce and almond potato purée wine: Moscato d’Asti NIVOLE from Michele Chiarlo in Piedmont. This accompanied a chocolate Chocolate silhouette with nougat and sea buckthorn explosion silhouette with nougat and sea buckthorn composed by Conrad Tyrsén and Ted Johansson of Dessert & Choklad Stockholm. Wine Champagne Gaston Chiquet Cuvée Tradition To follow that sumptuous combination, Grönstedts Cognac was served with after-dinner coffee. Brut Premier Cru As the Nobel menu’s guiding principle is to incorporate a touch of Scandinavia, the selection Château l’Hospitalet La Reserve Rouge 2011 makes sense: this venerable cognac has been a part of Swedish tradition for 150 years. Coteaux du Languedoc la Clape

Nivole Moscato d’Asti 2012 Michele Chiarlo

Coffee Grönstedts VO

Facile Punsch

Stenkulla Brunn Mineral Water

Stadshusrestauranger in collaboration with Chefs Andreas Hedlund and Fredrik Björlin as well as Pastry Chefs Ted Johansson and Conrad Tyrsén, Dessert & Choklad Stockholm APÉRITIFS 9

An iconic cava thrives in the Nordics

odorniu´s most legendary cava may have a vaguely Nordic-sounding name, but the origins of C Anna de Codorníu are deeply rooted in Catalonia, Spain. They go back to the 16th century, with the story of a family of winegrowers headed by Jaume Codorníu. Anna de Codorníu was the last member to hold the family name. After her descendant Josep Raventós visited Champagne in the 1860s, he applied the traditional method for making sparkling wine, but used a blend of Macabeo, Bollinger and Bond – a match Xarel·lo and Parellada grapes. Born in 1983, the cava named Anna de Codorníu was the first to made in movie heaven incorporate the Chardonnay varietal. It is Codorníu’s most iconic cava, delicate and elegant with unmistakable freshness. Over the last three years, Anna de Codorniu has performed steadily well, he link between Bollinger and James Bond with a yearly growth of 21% in volume within Altia. T goes back to 1956, when the champagne appeared in Ian Fleming’s novel, “Diamonds are Forever.” The relationship between the Summer in a bottle two icons endures to this day. Altia attributes the increase in sales of Bollinger champagne resita is an original blend of Chilean in 2012 to the release of Skyfall, the latest 007 F sparkling wine and natural hand-picked film to hit cinemas. Robust growth continued strawberries. No wonder berry-loving Finns in 2013 due to assertive advertising and public have fallen for its approachable and delicious relations. taste. Fresita is currently one of the best- Pricing initiatives at Altia have also ensured selling sparkling wines in Alko stores. With that despite an increase in taxes, consumers the emergence of a sparkling wine culture needn’t pay more to enjoy their beloved in recent years, consumers have grown bubbly. As a result of these efforts, Bollinger accustomed to sharing a toast to add a little single-handedly drove champagne sales in spirit to the day. Fresita has gained its own set Alko stores last year. Without the brand, the of loyal followers, with nearly 20,000 fans on category’s performance would have declined. its Finnish Facebook page, while the Viinimaa Bollinger champagne is sold in all 350 Alko web site features new ways to serve and enjoy stores throughout Finland. this delightful, fruity beverage.

Aspiring to more responsible wine production

his year, auditors acting on behalf of commit to applying to their supply chains the country. In response, we continue to point T Swedish monopoly Systembolaget turned in a step-by-step development approach. out that the code’s aim is simply to raise the their attention to South Africa. The Business “In South Africa,” says Göran Klintberg of bar in terms of the various areas it covers, Social Compliance Initiative (BSCI) Code of Systembolaget’s Supply Chain Management, from human rights to working conditions and Conduct, to which the alcohol monopolies of “housing for employees was one of the prob- environmental issues.” Sweden, Finland and Norway are signatories, lems we saw repeatedly. There, employees Though the updated code for 2014 has yet requires the auditing, over a two year period, mostly live where they work, renting from to be revealed, Göran is sure of the direction of suppliers representing two thirds of produc- estate owners, and this tendency is somewhat things are taking. “We’ve been seeing the code tion located in so-called “risk countries”. problematic.” becoming more and more comprehensive The code is not a set of legal requirements, There was also the challenge of commu- and relevant to real-life partner concerns, so as few wine suppliers in certain territories nicating the code’s intent. “Several South it’s clear that any changes will be to that same can comply fully with its principles. Instead, African producers feel that they are being held effect.” it’s a list of standards that business partners responsible for overall working conditions in 10 STRATEGY

PICKING YOUR BATTLES

Altia’s interim CEO outlines the short-term wins intended to give the company a new confidence and a surer footing.

TEXT IAN FENTON PHOTO SHUTTERSTOCK

“Altia has had its problems recently,” get the numbers into a healthier situation.” stedts, Renault and Larsen, the company admits Hannu Tuominen. “We developed There is a structure underlying these signalled its intention to deepen its involve- very well for some time, and were able to efforts, specifying where these short-term ment within this area. Thanks in particular improve our profits for a few consecutive victories are to be made within Altia’s to Larsen, the most recent acquisition, years. But since 2011, the profits have been markets and product categories, and which took place in September 2013, Altia falling and the sales, at best, remained encompassing partner brands as well as now has access to the cognac supply and static.” those the company owns. Every available production infrastructure in the region of Tuominen, Senior Vie President, Supply competitive advantage is to be leveraged, Cognac itself. Chain and Industrial Services, took charge and Tuominen highlights travel retail and “We really have more of a presence in as interim CEO when Antti Pankakoski border trade as areas where he expects to Cognac now,” Tuominen enthuses. “We’re was released from his duties in November see quick wins made, building on 2013’s invited to the right tables. The grape 2013. A dramatic turn of events, but the successes. growers, distillers and other key players company lost no time in assessing where there now see us as a more professional they had gone wrong in a timely, clear- Independence and identity agent. They know we’ve invested a lot in headed fashion. A special emphasis is also being put on their industry and that’s an important step.” “We lost out most in three areas,” partnerships, reinforced by the appoint- It’s also of strategic importance that he explains: “white spirits in Finland, ment of Søren Qvist as Senior Vice Pres- Altia employs its own master blenders: particularly in competition against ident, Partner Brands. The intention here “Our in-house expertise has grown and border trade; partner brands; and wines.” is to convince existing partners that Altia we are more tangibly a part of the cognac To compound matters, total alcohol continues to be the right choice to add community, while on the marketing side consumption in Finland has been in value to their business. these brands represent very valuable decline, and consumer behaviour has “We have sales companies working trademarks. In our regions, these are strong shifted towards drinks that contain less with us in Norway, Sweden and Finland, names with heritage behind them that we alcohol. each with their own identity and customer can ably build on.” Tuominen sees his role as preparing the base,” says Tuominen. “None of these say ground for the new CEO, Pekka Tennilä, ‘Altia’ on the door, though they’re under Moving faster in wines and by restoring profitability and developing our umbrella, and it’s important that spirits confidence within the organisation. “We we revitalise the independence of these The issue of agility in both the wine and needed a quick, practical response to the companies and their people.” spirits sectors is also being addressed. In situation,” he tells us. This took the form of Independence and self-sufficiency wines, a new generation of purchasers has a short-term battle plan highlighting four are key here: “Encouraging everyone to been gravitating towards smaller producers areas that will lead the turnaround. take pride in delivering stronger results to the detriment of the more established improves the service we provide to our names that Altia offers. “The monopolies, Focus on the present partners. And another objective, of course, particularly in Sweden, have observed “Our first priority area is very simple, and within the area of partnership – besides this also,” Tuominen tells us, “and their needs very little explanation. It’s the notion making sales and marketing progress in the order sizes have shrunk in response. This of giving our sales a much-needed injection field – is to attract new suppliers.” means short-term availability, which is fine of energy. This is all about identifying quick for small producers, but we were too stiff wins where we can play to our existing Greater presence in cognac earlier to jump on the trend.” strengths – and make no mistake, we do Altia’s recent investments in cognac repre- A new wine business entity has been have them – to build up momentum and sent another focus. By acquiring Grön- set up under Björn Lönnberg (Director, STRATEGY 11

NET SALES BY Wine). The aim of this setup is to speed BUSINESS SEGMENT up development, in order to respond to the % market faster and increase Altia’s chances of achieving listings. “In the past we had our wine experts divided between sourcing, product development and marketing. Now we’ve brought them all together, so the very same people who deal with the grape growers and wine samples also visit the customers.” Changes within Altia’s production chain Altia Brands 40.4 (42.7) will also have an effect here, and Tuominen Partner Brands 29.2 (27.5) points out that the relocation of bottling Industrial services 30.4 (29.8) functions from Denmark to Rajamäki for efficiency reasons will bring costs down. In spirits too, a recent appointment will solidify Altia’s aims. As Senior Vice NET SALES BY President, Altia Brands, Michael Bech- COUNTRY Jansen is tasked with helping the company % defend its position in spirits through marketing and product investments, renewal of the regional brand portfolio (ably exemplified by the development and launch of products like Valhalla) and core brand strategies. Accelerating the time to market is a necessity here also. With each of these focus areas now in place, Tuominen emphasises the Finland 47.3 (44.8) importance of actively following the Sweden 31.3 (33.4) company’s progress: “We’re making weekly Others 21.4 (21.8) and monthly checks of the effects these developments have on the ground. ‘Short- term wins’ really have to work in the short term, and hopefully they will provide the foundations for the growth our teams are pursuing.” 12 ALTIA VINTAGE 2013

TEXT IAN FENTON LICENCE TO SERVE PHOTO WICKMANN+BENDTSEN

For Søren Qvist, you only live twice: once in charge of Altia’s Danish, Baltic and other open market operations, and once heading up Partner Brands, where he is ready to unveil a new full service concept.

aving recently made the transition from managing of Open Markets, where everything happens on the spot. From Altia’s Open Markets to the position of Senior Vice one hour to the next you could have a new situation and you President, Partner Brands, Søren Qvist can be need to react to it. To make the best possible move, you need to said to have a comprehensive view of the compa- be right there next to your customers, serving their needs fully.” ny’s sales and marketing operations. His new Qvist sees his main task as developing this closeness even Hmission will be to show existing partners that Altia continues further, breaking down silos to ensure a more flexible, dynamic to be the right choice to add value to their business, while response to market opportunities. This is the foundation of attracting new ones with the same strong actions. Partner Brands’ revised service concept (see below). “I’ve been with Altia since 2007,” he says, “which is why I’m “Naturally, our wine tenders are often very carefully detailed, very familiar with how the company works, all the way from one by region and other traits,” Qvist explains, “but there can be business area to the other.” huge variety within those areas, and that’s why we need to be For Qvist, market experience has highlighted the importance the partner that our customers keep coming back to. We need of understanding one’s customers, achieving the closeness to carry a little more weight in the running for these tenders, needed to follow both their current needs and future concerns. getting more deeply acquainted with the monopolies’ structures “Partner Brands’ operations will find inspiration in the structure and needs and altogether exerting more influence.”

FULL SERVICE CONCEPT

BOTTLING & NEW PRODUCT SALES MARKETING PACKAGING DEVELOPMENT

• Highly modern facilities with • Consumer trend-based • Largest sales force in the • Long experience as brand state-of-the-art packaging suggestions region builders machines • Involvement in both design • Complete geographical reach • High-level planning to secure • Local bottling securing a longer and product development • Participation in 150+ trade positioning shelf life fairs in the region • Largest media coverage and • “Fridge-friendly” bag-in-box • Covering all sales channels spend • Large variety of bottle shapes • Huge network and access to • Promotional access to over 20 • Full-range PET key decision makers million potential consumers • High level of flexibility, and • Securing clear consumer ability to pack both 6- and focus via Altia’s own market 12-bottle cases intelligence team ALTIA VINTAGE 2013 13

“To make the best possible move, you need to be right there next to your customers, serving their needs fully.”

COUNTRY DEDICATED ACCESS TO DISTRIBUTION SPECIALIST CONTACT CUSTOMERS TEAM PERSON

• Full coverage in all Nordic and • Full-scale business setup in • Securing access to decision • For regional partners we offer Baltic markets each market makers via strong network a single point of contact • Efficient route to market • Deep understanding of the • Coverage of all categories and • Access to all markets through • Flexibility to scale all markets business segments in each one resource businesses, in terms of both • Ability to drive and develop market • Experienced specialists in both size and speed segments • Regular key accounts wine and spirits • Best warehouse coverage in • Spotting trends as they meetings • High competence level the region emerge • Access to all business levels from executive to production 14 ALTIA VINTAGE 2013

THE PLASTIC EXPLOSIVE In the past year, a huge shift has taken place in the way Altia packages its wares.

TEXT IAN FENTON PHOTO ALTIA

n 2012, Altia used polyethylene tere- from the monopolies has shown. phthalate (PET) – more commonly Once the strong stakeholder approval I known to most of us as recyclable was noted, it was time to make some major plastic – to bottle 9.7 million units of its investments, beginning with the bottle various products. In 2013, that figure more itself. Arja takes up the story: “In preparing than doubled, rising to 20.3 million. It’s an a new bottle for our spirits lines, we wanted astounding number, but why such a big to utilise Finnish competences and compa- leap, and why now? nies, so we had it specially designed in “We’ve bottled certain white and brown Finland for Altia. The bottles are also spirits in PET for years already,” says Arja blown in Finland, so we’re able to use local Liimatainen, Director, Regional Brands resources to the greatest possible extent.” & Marketing, “but they are really booming Big investments were required on the at the moment.” The effect of PET bottling production side too. At Rajamäki, Altia’s on consumer uptake is unmistakable: main facility, an entirely new production “Every single product that switches pack- line for PET bottles was implemented, aging format from glass to PET grows in which has enabled the company to follow sales,” she explains. through on its growing plastic packaging Altia has been following consumer ambitions. behaviour in relation to different pack- PET represents what can only be aging methods for some time, and saw described as a win-win scenario for 2013 as an optimal moment to make major Altia in the long term. Besides the strong launches in PET. “Consumers have demon- consumer appeal and apparent sales boost, strated strong approval of PET bottles in PET bottles are 89% lighter than their white and brown spirits. Appeal is on the classic glass equivalents. In 2013 alone, increase in wines too.” this has generated a 4.2 million kg weight Perhaps general environmental concern reduction in Altia’s cargo transportation. is a factor here, but in the spirit market, As to the future, Arja seems quite sure so is practicality. Consumers benefit from of the direction: “Most of our white spirit the fact that PET bottles are easier to products, along with many brown spirits, handle, lighter, and less breakable. The will be moved to PET.” With figures like same convenience is also advantageous to the above, it’s hard to see glass making a Altia’s retail partners, as positive feedback comeback.

7686_Nederburg Awards_A1.indd 1 2012/10/29 4:54 PM 7686_Nederburg Awards_A1.indd 1 2012/10/29 4:54 PM 16 ALTIA VINTAGE 2013

Thirst for change For two senior managers recently recruited to Altia, their first couple of months on the job had to be sufficient time to get to grips with a challenging situation, and come up with some answers.

TEXT IAN FENTON PHOTO TOMI PARKKONEN

WHAT WERE YOUR FIRST PERCEPTIONS AS A and helping the company make the right decisions. NEWCOMER TO ALTIA? Rather than looking backwards, we also need to have a Matti Piri: This company is in an interesting phase. forward-looking perspective, being on top of events all Expanding, and broadening the portfolio of products, the time, identifying risks and opportunities. That’s the represents quite a big move in this market. We’ve been kind of attitude I want to develop in my team, but the ambitious about the targets for growth, and that chal- same also applies elsewhere: there are a lot of good things lenge caught my interest immediately. happening and right now we need to prioritise and crys- Michael Bech-Jansen: My perception was that tallise our direction. Altia sometimes sees itself as bigger than it is. Moving MB-J: I think it’s critical that we prioritise. It’s a cliché, forward, we should remember that Altia isn’t as large as but we need to do fewer things better, generating better the global players, which in fact is our competitive advan- results, and we need to do them in markets where we tage. We can be quicker, and more agile, in what we do. can implement things quickly. Often we don’t have the chance to move fast in the monopoly markets in Finland, HOW DO YOU RESPOND TO THE COMPANY’S Norway and Sweden, but we can be quicker in what we CURRENT CHALLENGES? call open markets: Denmark, Latvia, Estonia, the export MB-J: I quickly realised that the company is under- department, travel retail. going a significant change. I wasn’t aware of the size of MP: The short-term focus is definitely on generating that change before I joined, but I’ve come to understand growth to turn things around in these markets. I think why it’s needed. that’s the key thing for everybody to remember during this I’ve also been positively surprised by the willingness to interim period. In a way, this will give us the momentum change and the commitment and resources which have to change. been dedicated to transforming the company. That’s one of the major topics I have experienced during the begin- SO WITH THAT IN MIND, HOW DOES THE NEAR ning of my time here. FUTURE LOOK? MP: We have our challenges, but the only way is MP: I think there’s actually a danger in talking too upwards – the only way is to turn things around and much about the future. We should be concentrating improve our situation. That’s what motivates me and I on the here and now. We have many of the strengths can see that it energises the people around me too. we need: we have strong brands, and a strong heritage in our local markets. There’s a lot to do right now – in WHAT’S UNIQUE ABOUT ALTIA’S SITUATION? the present moment – and that approach will help to MP: Compared to my previous positions, what’s nice empower people and support their successes. about Altia is that the company is in a stage of becoming, MB-J: This year is a very tactical one for the company, so for somebody like me who wants to make my own and as soon as we start to achieve and celebrate these mark, there are a lot of things that can be developed and smaller wins, we’ll start to get into motion. much that isn’t necessarily ready yet. The company is As I’ve been visiting people around the company simply in a different phase of development than what I’m during my introduction, one of the things I have empha- used to and personally I find this very exciting. sised is that we should ask ourselves something every Looking at my own organisation in finance, yes – we single day: “What can I do today that will have an impact want to be world class, we want to develop ourselves, with in 2014?” I believe if we can answer this question, we’re the finance side becoming more of a business partner on the right path. ALTIA VINTAGE 2013 17

While Matti Piri (right), Altia’s recently- appointed CFO, and fellow newcomer Michael Bech-Jansen, who took the mantle of Senior Vice President, Altia Brands, may be relatively recent arrivals, there’s one thing they are both in little doubt of: the company’s potential. 18 ALTIA VINTAGE 2013

TEXT PATRICIA ONGPIN–STEFFA TO ENABLE AND ENCOURAGE PHOTOS HEIKI LAAN, ALTIA

Leadership development is one means through by Altia seeks to enhance its performance culture. Two managers share their learning experiences in using coaching as a leadership style.

KRISTEL: “I had been searching independently for these types of courses about a year ago and was inter- ested in participating. When the course was offered at Altia, it was very good timing for me because it was the type of course I would have taken anyway. The training aimed to give us an understanding of what coaching means. Now I can say I have a “As a manager, I have to clear picture of the difference between coaching ensure that the people on and mentoring. Although we learned quite a few my team feel secure.” ways to use coaching in our daily lives, the focus Kristel Mets of the course was on our performance as profes- sionals and how we as managers can improve and develop our colleagues’ skills. Through coaching I can help people under- ltia’s most recent personnel survey results show that stand what they should do. As a leader, my task is to encourage the employees find their work meaningful and enjoy the relaxed members of my team and enable them to know what is required of A and friendly working atmosphere within the company. them, but I also need to let them think for themselves. I believe that However, Altians’ responses also reveal that they see room for in daily life what’s needed is a combination between mentoring and improvement in how objectives and direction are communicated. giving colleagues the time and space to be independent and find solu- One initiative that seeks to address this sentiment is training tions on their own. for managers, which aims to strengthen the company’s leadership Through the course I have definitely gained a better under- culture by enhancing engagement and performance. By cultivating standing of how peoples’ minds work. When an environment is its leaders, Altia also enhances its Performance Culture, an aspect unstable, people don’t function to their fullest capacity. They can’t of the Group that was pinpointed as a strategic focus area in 2012. innovate, as they are worried all the time. Altia believes that coaching is a key element in effective leader- For me as a manager, this means I have to ensure that the people ship. For this reason, the company is currently providing an inten- on my team feel secure. By motivating them in their everyday work sive training program for its managers that focuses on coaching as I can help them deliver better results in their tasks. a leadership method. The course is designed to enable participants Customers and suppliers definitely benefit too when we at Altia to hone their skills over an extended period of time. After a face-to- are motivated, positive, innovative and collaborative. face workshop, the participants practice the skills in their teams If I had to share the most important lesson I gained from the and then come back to share their experiences virtually. Addition- training it would be to listen to others. Let people talk, and let people ally, managers can continue learning in virtual practise sessions listen. Quite often we talk too much and don’t allow other people to and get one-on-one feedback on their coaching skills. Two groups share what they think.” completed the program in 2013. Kristel Mets and Veli-Matti Passinen are two of the 22 WHO? Kristel Mets is Managing Director of Altia Estonia, managers who participated in the training last year. We asked them and previously led Altia’s Latvian organisation. She has been to share their experiences on the course. working for the group for seven years. ALTIA VINTAGE 2013 19

TEXT PATRICIA ONGPIN–STEFFA PHOTOS HEIKI LAAN, ALTIA

VELI-MATTI: “I saw the training as a good opportunity to learn and develop my own thinking. I believe leadership development is a continuous process of learning and personal growth for me, for my team and the whole organisation. As a manager and leader, different tools and skills are needed depending on the situation. Courses like these don’t only improve the skills of individuals, they also help us progress in our journey to become better leaders by giving us input on our behaviour. When training is done right, participants get excited and start to share their experiences. They become change agents without even realising it. For Altia to achieve its targets as a company we have to constantly improve our performance. Leadership is an integral part of that, and this is why leadership development is an important part of our agenda. Through coaching we are better able to bring the intelligence out of people. You open the atmosphere and get knowledge, input or solutions from individuals and teams. It’s a more collaborative way to get further. Through a good coaching process, the person makes the right decisions on their own. That enables much better buy in. Ultimately, we exist because of our customers. By improving our leadership skills and performance in this manner, we can offer our customers even better products and services for their needs.” “Through coaching we are better able to bring the intelligence out of people.” WHO? Veli-Matti Passinen is currently the acting head of the Veli-Matti Passinen Altia Supply Chain. In addition to this role, he is also Director of Altia’s Customer Service & Logistics organisation. He has worked at Altia for just over five years.

To ensure that all Altia’s managers get the chance to participate in the training, the program continues to be offered to those interested. Four more classes will be available to participants in spring 2014.

Mutual trust is essential

eter Straadt, partner at professional coaching company coaching: “The more you invest into coaching the more you get AS3, explains that the target of a coach is to help people out of it. The more focused you are and the more energy you P reach their full potential in their working lives. give, the more you get back in results,” Straadt asserts. “Coaching aims to bring new perspectives into a person’s He provides one caveat, however: “Coaching can only work horizon. A good coach works with someone to help them if there is a situation of mutual trust – a good coach makes understand their situation and find new approaches on their people feel that they are in good hands,” Straadt says. own. This strengthens people’s ability to achieve their objec- AS3 served as Altia’s partner in delivering workshops for tives while staying true to their own values,” Straadt explains. personnel in change situations in 2013. AS3 Companies have He shares a piece of advice that could be useful to both specialised in providing counselling for management and staff leaders who act as coaches as well as to the recipients of the since 1989. 20 ALTIA VINTAGE 2013

A TASTE OF THINGS TO COME

Milla Sorsakivi and Upgrading. A growing number of people are becoming conscious of Fredrik Bergström 2their consumption and planning share insights on their purchases more deliberately. They may consume less, but when they the trends that are do consume, they often see it as an shaping the industry’s opportunity to splash out and indulge. present and future. And on certain occasions, only the best will do. Evidence of this tendency is seen in some categories where sales have grown TEXT PATRICIA ONGPIN–STEFFA even as volumes have fallen. “The sales PHOTOS ALTIA, SHUTTERSTOCK of premium priced red and white wines in bottle have increased on all Nordic monopoly markets,” Fredrik Bergström reveals.

Lightness. From more subtle flavours in beverages to the 3lightweight PET used to bottle them, the desire for a feeling of lightness is taking on many forms. For instance, a major trend towards lower alcohol content TODAY is seen in the ongoing popularity of ready- mixed vodka drinks. Light wines have shown remarkable growth in the UK, but drinkers in the Nordic countries have yet to take an interest in them. In Finland and Scandinavia, the yearning for the lighter side of things is demonstrated by the Storytelling. The practice of preference for a more delicate pink hue in telling stories predates civilisation rosé wines. 1itself. However, the use of stories in marketing and branding is a relatively new development, one that’s now visible New flavours. There is nothing in the alcohol industry. To stir consumers’ new under the sun, as the proverb interest, stories don’t have to be limited to 4states. Yet the thought doesn’t tales of a long heritage. “Even new brands curb consumers’ appetite for new tastes. have good stories to tell, say, about their “There’s an endless curiosity and desire origins, craftsmanship, the people who for something new. Even after finding grow their ingredients or other details something they like, consumers still try that convey authenticity,” Milla Sorsakivi to find something new the next time they explains. purchase,” Bergström says. ALTIA VINTAGE 2013 21

The full experience. When you go to a bar, chances are you’re looking 2for more than just a drink. You expect to be served by a skilled bartender who might even put on a bit of a show TOMORROW as he prepares (and garnishes) your beverage. The atmosphere, the music and the crowd all contribute to the experience. While alcoholic beverages are its source of revenue, Altia recognises that they’re not the main issue for most consumers today. “We seek to build around products and Femininity. When it comes to create whole experiences for consumers,” tastes, female and male consumers Sorsakivi explains. 1tend to be divided, and traditionally, it’s men who have favoured whisky. A Greater transparency. People survey of the whisky shelf shows row expect businesses to communicate upon row of masculine-looking bottles. 3with them and be open. More However, young women are beginning importantly, they expect companies to to develop a taste for brown liquor, be accountable for the impact they have particularly in Sweden. “There are a lot on society, the economy and the planet. of wonderful flowery whisky tastes and “Consumers aren’t only interested in how notes. I think those are the ones that really we make things and where our products captivate female consumers. It might be come from any more. They want to know easier to get women to try these products what’s behind our brands and understand if they were a bit more feminine and how we operate,” says Sorsakivi. approachable,” Sorsakivi proposes. “For example, when we get feed- back, we need to be able to explain what happens to it,” she continues. These requirements will influence the way Altia interacts with consumers even more over the coming years.

The consumer as influencer. Consumers are increasingly 4shaping the industry, instead of things working the other way around. The tide has already turned in many industries, but in the Nordic countries, the alcohol industry is restricted by the existence of monopolies. However, these institutions It seems inevitable that consumers will aren’t immune to change, as Bergström play an even more instrumental role in the elaborates: “In 2013, Systembolaget future. “Consumers do want to be influ- changed their distribution model, and encers, to be taken seriously and listened Alko is planning to take a similar model to. A shift of this kind is bound to happen into use in 2015. Both are becoming much because it can already be seen everywhere more consumer driven than before.” else,” Sorsakivi predicts. 22 ALTIA VINTAGE 2013

THE BUBBLE THAT NEVER BURSTS

With attitudes to champagne undergoing a profound shift, two enthusiasts get to grips with the drink’s past, present and future.

TEXT IAN FENTON PHOTOS SHUTTERSTOCK

“Champagne’s strongest association with luxury holm’s Grand Hotel, has been in a great position to and glamour comes from France’s Belle Époque, observe changing attitudes to champagne in recent which lasted from the 1870s until the First World years: “Five to ten years ago, people tended to see War. This was the era in which the upper classes drinking champagne in a restaurant, or even a trip really came to like champagne: they would organise to a restaurant in itself, as a special, celebratory all kinds of festivities and champagne was every- event. This way of thinking has changed, though, where, both in private houses and in luxurious and now good restaurants are busy every night, with restaurants like Maxim’s in Paris, not to mention champagne selling well even during the week.” Brussels, London, or Vienna…” Lagergren sees this as a more modern, interna- Once we have Professor Olli Alho, cultural tional take on fine dining, which has reached Stock- commentator and retired director of Finnish holm after spreading outwards national radio, talking about his favourite passion, from cities like New York and the floodgates are truly open. Champagne seems to London. But like Professor exert a fascination, turning casual consumers into Alho, the sommelier has devout followers, but such fans are accompanied in caught the champagne bug, their enjoyment by an altogether more frivolous set: and longs to see its consump- those who drink it to make a statement. tion spreading even beyond “In the 1950s and 60s, we begin to see cham- the level of everyday luxury: pagne emerging again,” Alho tells us. “Thereby he has even compiled a special hangs the story of the middle class getting enough wine menu to accompany the money and self-confidence to buy the kinds of Grand Hotel’s dishes – cham- things that formerly only the rich could enjoy. pagne with every course! People began to mould their lifestyles to resemble “You should start with a the upper classes.” fresh champagne with a lot The same behaviour, of course, continues of acidity before you begin today, as people use symbols to project an image, dinner,” he recommends. consciously or unconsciously, and champagne, “That activates the palate. For along with other luxurious pastimes, provides a the first course you should also visible signal of newly won status and increasing have something acidic, maybe economic power. a champagne with more body. In some ways, this aspirational behaviour is the And with the main, you can foundation of champagne drinking’s modern age. have a vintage, full-bodied While luxury-oriented brands still exist, the bulk of champagne with a lot of pinot us today will at least have enjoyed champagne as the noir. mark of festive occasions in our lives: perhaps, if we “If you’re having butter- are lucky, even as a semi-regular treat. fried fish, an oak-aged cham- Johan Lagergren, head sommelier at Stock- pagne with a lot of body makes ALTIA VINTAGE 2013 23

a beautiful combination, particularly with the fish we serve here in the Nordics. And for dessert, a champagne with some sweetness is wonderful.” Lagergen assures us that his champagne-menu diners leave feeling light-hearted and happy, in contrast to those who drink more heavily with their food. Perhaps this is the secret key to champagne’s continuing popularity: those bubbles simply make people happy.

“Now good restaurants are busy every night, with champagne selling well even during the week.” Johan Lagergren 24 ALTIA VINTAGE 2013 TEXT PATRICIA ONGPIN–STEFFA

SHARING THE BEST VACATION MEMORIES

There are a million great places to visit in the world. We asked three people from Altia’s market areas what makes a perfect holiday.

KRISS LOTTA-LIINA JAN Entrepreneur, Estonia (On the right) Researcher and PhD Candidate, Finland Executive, Sweden

INSPIRATION AND COMPANY TRANQUILITY AND NATURE A TASTE FOR ITALIAN WINES “For me, trips fulfil different purposes and “I travelled to Northern Mozambique, to “I travel quite often, and I’ve always are special for different reasons. the Cabo Delgado region last spring. I had enjoyed it. When I travel for business I One that is memorable for being the come from Cairo, a hectic and commer- generally don’t get to see so much of the most romantic was last year when I visited cialised city. Northern Mozambique is less destination. Instead it’s mainly about my sister in Dubai. I had a wonderful time industrialised and allows one to re-con- flights, airports, hotels and offices. I don’t bonding with her, and on one of the last nect with nature. A somewhat remote get to experience so much of the local days of my stay she said we were going to place – disconnected from the world for culture or what the city has to offer. a fancy dinner place named Pierchic. good and for bad. Places like this make you I have three grown up children, so We got all dressed up, and when we go back to the fundamentals of life. my wife and I tend to holiday together. arrived we walked down this very long I stayed in a beautiful eco-lodge that is We both enjoy travelling. Personally, wooden bridge to the restaurant, which is very much engaged with the local commu- I like exploring Italy. I’m a big fan of on the water. What I didn’t know was that nity. The name of the place is Guludo Italian wines, particularly those from the my boyfriend had planned the whole thing Lodge. There was no electricity there. Sure Piemonte region. with my sister and her husband. He had they could have brought in a huge power One memorable vacation for me was flown down to surprise me and propose! generator just for the lodge, but their idea about three years ago on the Amalfi coast He was coming down from the other is not to have electricity until the village at a small village called Portofino. It’s a end of the bridge. I had expected him to has it. It was also unique that one could beautiful area with wonderful food. be so far away, and most people don’t fly make contact with the local people and I was taking an Italian language course down for only three days! I didn’t think it the staff working at the lodge. over the first two weeks, and my wife came was him. I was so shocked, and a million Also, everything there is locally down to join me for the last ten days. We thoughts were running through my brain. produced – every single thing. And then stayed at a little hotel with an amazing My sister didn’t say anything at first, you get fresh fish from the sea. view over the water, and all of the boats. then she said, “Kriss, look who else is But perhaps the most exceptional thing They have every kind of seafood, and here!” I was completely dumbfounded. about the place was its quietness and fantastic vegetables which are much It was so amazing and sweet. It was in closeness to the rhythm of nature. One fresher, richer and more flavourful than November, 25°C and the moon was full. It woke up with the sun and went to sleep what we’re able to get in Sweden or Scan- was absolutely picture perfect.” not long after sunset. This is what I mean dinavia. by the fundamentals of life. “ I don’t think we will be going there again any time soon but I would definitely like to revisit the place at some point.” ALTIA VINTAGE 2013 25

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