Insight AAK Magazine

The Co-Development Company

#7, January 2019

What’s your chocolate moment? pages 4–5 Smallholder engagement in Malaysia, pages 8–9 The power of storytelling, pages 10–11 Dear readers,

For this issue of Insight, we have talked to Cloetta, a The Co-Development Company leading confectionery company in the Nordic region and the As usual, we give you some concrete examples of what it Netherlands with whom we have formed a partnership for means to be the Co-Development Company. AAK colleagues sustainable shea. In an exclusive interview, the company’s from different parts of the organization share some of their Director Sustainability Affairs explains how this initiative fits recent co-development stories and explain how our customer with Cloetta’s overall goal for corporate responsibility. value propositions for health and reduced costs have helped Bob Norman, Sustainable Palm Oil Manager, reports from our customers improve and grow their businesses. the ground in Malaysia where AAK is engaged in a small- If you have any comments or questions about the maga- holder project called Forever Sabah. The state of Sabah, zine or if you have suggestions for future articles, don’t responsible for 10 percent of global palm oil production, has hesitate to talk to your AAK representative or contact us via a target to reach RSPO certification for all its palm produc- [email protected]. tion by 2025. In an article from market intelligence agency Mintel, David Jago talks about the power and importance of storytelling, a marketing phenomenon that has become a key selling Enjoy your reading. proposition for many companies. Anne Mette Olesen A world of opportunities Chief Marketing Officer We will also introduce you to the world of opportunities that our solutions give manufacturers who produce chocolate and confectionery with fillings, products that are increasingly preferred by consumers today. In addition, you can read about our new Special Nutrition solutions range, Akonino® ELIP, mimics the golden standard of human milk while meeting new requirements in the upcoming EU regulations for infant formula.

Contents Insight AAK Magazine

Great fillings for special chocolate moments 3 Published by AAK AB (publ.) | www.aak.com What’s your special chocolate moment? 4–5 Editorial group Partnership for sustainable shea 6–7 Henning Villadsen, Mariana Mocanu, Christian Robèrt, Anne Brødsgaard, Johan Malm, Laura Schlebes, Smallholder engagement in Malaysia 8–9 Caroline Westerik, Bodil Granroth, Catharina Aaröe, Mintel: The power of storytelling 10–11 Helen Flower, Martin Persson.

Infant formula as a compliment 12 Contact [email protected] AAK’s new Akonino® ELIP range 13 AAK – The Co-Development Company 14–15 Production: JohnJohn Konsult AB Photographs: AAK, Thomas Hergaard, Cloetta, Kim Hess, Charlotte Kropholler, Shutterstock Print: Exakta

2 Great fillings for special chocolate moments

Consumer tastes may differ, but indulgence and excitement are always at the heart of confectionery favorites – preferably with a healthier, more natural profile.

Although chocolate means different things to different people a creamy or cooling sensation in the mouth. All of these there are, according to a recent Euromonitor survey, some characteristics depend on the choice of filling fats, their points that chocolate lovers tend to agree on. Three of them interaction with the other ingredients in the recipes and the stand out. First of all, chocolate is moving out of the snack processes used. category and becoming more of a premium luxury. Secondly, In other words, production of a perfect filling requires a exciting creative tastes and texture are a must – perhaps thorough understanding of all the parameters that influence with the addition of a few nuts and a healthier, more natural the taste and quality of the final filled chocolate. This is the profile. And finally, trans fats are a no-go – with almost a third key to a world of opportunities – where fat plays an essential of consumers often checking the ingredient labels before role along with the other ingredients used. they buy. “Today, consumers prefer filled chocolate and confec- Co-development of indulgence and health tionery products”, says Marco Oomen, AAK’s Global AAK supports chocolate and confectionery manufacturers Business Director for Chocolate & Confectionery Fats. with all these considerations and technical challenges “While this gives manufacturers a fantastic playground for through the co-development of exciting new fillings. developing new sensory experiences, it also raises a set “The right AAK filling fat can solve the technical challenges of technical challenges that must be solved before a new of using nuts, ensuring the perfect indulgent combination product can become a true consumer favorite. Very often, of taste, texture and appearance along with the healthier the solution to such challenges lies in the filling fats.” profile that consumers enjoy”, says Marco Oomen. “Several parameters need to be considered when producing fillings The key to a world of opportunities for the special chocolate moments that consumers seek. When manufacturers produce chocolate and confectionery Filled chocolates are not just chocolate anymore. To with fillings, they aim to excite consumers with soft, hard consumers, they are about enjoying life, special moments or aerated textures; flavors with controlled release; and and indulgence.”

3 What’s your special chocolate moment?

Premium chocolate is one of the fastest-growing chocolate segments. Thanks to manufacturers’ commitment to quality and experimentation with flavors, consumers are not only enjoying chocolate to satisfy a craving, but to share an experience on a special occasion. We asked some of our AAK colleagues around the organization about their special chocolate moments, and what they think will be important for future ones.

Stina My special chocolate moment is when I share a piece of chocolate with my children. It’s rewarding because it makes me feel caring. My future moment is perhaps with a chocolate with lots of color, more natural ingredients, and one that is healthier.

Musna A special moment for me is when I share a chocolate cake or chocolate bar with my family. It reminds me of the close bond that I have with them. I hope my special chocolate moment in the future will be both affordable and healthier.

Kasper My best chocolate moment is one that is shared with friends, when we meet and experience something together. I really like that somebody made an effort to create something delicious. For the future, I would like to see even more innovation, chocolate that is full of flavors and that has been created with a lot of passion.

Mehri My special moment is when I, after a great day at work, treat myself with a piece of chocolate. That makes me feel very pleased.

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Watch the chocolate moment video on youtube.com/c/aakab

Matthias I really enjoy having my cup of coffee together with a piece of tasty chocolate. Treating myself this way just makes me happy. My future special chocolate moment is… well, with more natural ingredients.

Anders My special chocolate moment was when I realized that my favorite kind of chocolate as a kid is now my eldest son’s favorite. It makes me feel… proud may be too much, but it makes me smile. As for the future, I look forward to realizing what my youngest child’s favorite chocolate is.

Javier My favorite moment is when I eat chocolate with churros together with my friends. That brings a lot of memories from Spain and it makes me feel like I’m back home. My future moment will be when eating chocolate doesn’t make me feel guilty.

Henning I really enjoy entering the small chocolate shop in my building, where everything is handmade and with all the nice flavors. It makes me feel happy, satisfied and fulfilled with pleasure. My future chocolate moment is to enter the shop and be surprised by a totally new taste experience. So, I visit my chocolate shop every month hoping to realize this new experience.

Niels My special chocolate moment is when I do a perfect hand tempering since it doesn’t happen that often. It makes me feel proud of my work and my skills as a chocolate technician. My future moment will be when we in early 2019 launch a series of chocolate and filling solutions which I have been involved in developing.

5 AAK and Cloetta in partnership for sustainable shea

AAK and confectionery giant Cloetta have recently formed a partnership for sustainable shea. Insight met up with Åsa Portnoff Sundström, Cloetta’s Director Sustainability Affairs, to talk about the importance of sustainable raw materials.

Åsa, Cloetta has ambitious sustainability targets, parti- cularly when it comes to sustainable sourcing. What are some of the most important raw materials in your chocolate production? In our chocolate products, we use raw materials like cocoa butter, cocoa liquor, cocoa powder, sugar, milk powder, palm oil, and shea oil. All cocoa that we source is UTZ certified, the palm oil is RSPO certified, and the shea oil, used in several of our chocolate brands, is sustainably sourced via AAK’s program.

What aspects of sustainability are important to you when it comes to shea? We have targeted to put sustainability programs in place by 2020 for some key raw materials. For shea specifically, it’s important to empower women in rural Africa taking part in the shea industry by making sure they get a better price for their crop. That way, women are willing to invest time and effort into the shea business resulting in improved quality of the shea kernels and a stable supply. With an improved income, the women are also in a better situation to address poverty, which is so often the root cause of many sustainability problems. Another very important aspect for Cloetta is improved traceability – to have information about the origin of the raw materials we use.

Why did you partner with AAK for sustainable shea? By partnering up in the AAK program, we have found a strong foundation to address our key areas of importance for shea. The basic principle of the program is to establish a direct relationship with the rural women in West Africa. Tradi- tionally, the supply chain contains a series of middlemen between the women and AAK. A prerequisite for the program, which engages more than 130,000 women, is that AAK helps the women to organize themselves into producer groups, normally consisting of women from the local village.

6 Cloetta in brief Founded in 1862, Cloetta is a leading confec- • Annual sales: SEK 5.8 billion (2017) tionery company in the Nordic region and the • Operating profit (EBIT), adjusted: SEK 604 million (2017) Netherlands. The company is manufacturing and • Strong brands and market positions marketing confectionery, chocolate products, • Main markets are Sweden, Finland, Denmark, Norway, the Netherlands, Germany, and the UK nuts, pastilles, chewing gum, and pick & mix con- • 2,500 employees in 11 countries cepts. In total, Cloetta products are sold in more • 8 production factories in 5 countries than 50 markets worldwide. Cloetta owns some • Listed on Nasdaq Stockholm of the strongest brands on the market, such as Läkerol, Cloetta, Candyking, Jenkki, Kexchoklad, Malaco, Sportlife, Red Band, and Nutisal.

By organizing the women in producer groups, AAK builds a Cloetta recently visited West Africa to meet with some direct buying relationship with them, whereupon the women of the women’s groups. What learnings did you get are trained in good post-harvest practices. The main advan- from your visit? tage for the women is a higher return, as they are selling A key learning was that we take so much for granted in our directly to AAK. It’s also a guaranteed outlet for all their general way of life which is simply not possible to do in rural shea kernels. The advantage for Cloetta is a more secure, Africa. This learning creates a deeper understanding that we transparent and sustainable supply chain with increased need to work with sustainability programs like the one AAK opportunities to impact the quality of the shea kernels. has set up over a long period of time – it’s not a quick fix! Another important benefit for the women is the possibility We also learned that it’s important, before you enter and of obtaining pre-financing. At the beginning of the season, invest in a sustainability program, to evaluate the impact AAK extension officers visit the producer groups to discuss of such a program in person in the countries of origin, in the women’s outlook for the season. Part of the volume is this case by following the supply chain from tree to port in then pre-financed, and the women are paid at a time of year Ghana. when they have little or no other source of income. It’s also a guarantee that AAK will come back and buy all their shea Where do you see Cloetta’s sustainability work in the next kernels. The pre-financing is interest-free – an advance few years? payment, not a loan. Cloetta’s overall goal for corporate responsibility is to build The AAK program, which has been running since 2009 sustainable long-term value. For Cloetta, sustainable value in Burkina Faso and since 2015 in Ghana, is a good way to is about growing as a company while at the same time responsibly source shea, increase transparency and improve ensuring that the people and environments that are affected social conditions for workers in the shea supply chain. by Cloetta’s operations or products are not negatively impacted. Cloetta’s sustainability commitment functions as the road map for building long-term sustainable value.

7 Smallholder engagement through Forever Sabah project

Sustainable sourcing of palm oil is a key area within AAK’s sustainability work. Our sustainable palm strategy focuses on execution and implementation of AAK’s sustainable palm policy, creating impact on the ground with suppliers and small- holders and stimulating market uptake. It’s a long journey and we have passed important milestones along the way, one being the smallholder project Forever Sabah in Malaysia. Bob Norman, Sustainable Palm Oil Manager at AAK, shares his first experiences with the project.

The state of Sabah in Borneo, Malaysia Roadmap to certification has set an ambitious target to reach RSPO To collate important data and build awareness, and to certification for all its palm production by provide the roadmap to scale up the certification across 2025. Since Sabah is responsible for 10 Sabah, a young dedicated team of field coordinators, percent of global palm oil production, this equipped with an exhaustive 36-page questionnaire, innovative jurisdictional approach will have a interviewed 134 smallholders from the 20 villages. The team significant impact. members were, in all honesty, received with varying degrees AAK is partnering with Forever Sabah to focus on the of enthusiasm – some with welcome and hope, others with smallholder element and we have completed our first year of a lot of scepticism. support for the project. During this time, the work has been The questionnaire covered subjects that related to house- focused on four trial districts – Telupid, Tongod, Beluran and hold socio-economic information; smallholders’ knowledge Kinabatangan (TTBK), covering 20 pilot villages estimated to and agronomic practises; knowledge of the RSPO; land involve 2,000 independent smallholders. issues; socio-culturally important sites; aspects relating to people’s use of forest resources; and, perceptions on changes within their environment in general and due to oil palm. Bob Norman, Sustainable Palm Oil Manager

The field coordinators lived in the villages, experienced of smallholders have land titles while 61 percent of small- life in real-time rural Sabah, and witnessed the pains and holders in the TTBK villages are growing their oil palm with pleasures, ploys and politics of kampung (village) society. Land Application (LA) status, namely on land for which they These were moments of insight. To help the field teams have applied but to which they do not have title. Insecurity of access remote villages, AAK funded the purchase of two tenure is a problem for the farmers and the environment as it 4x4 vehicles. In doing so, the teams could cover ground is associated with vulnerability and low levels of investment efficiently and safely. in production and land care. It is also a major problem for the The interviews were not just about collating data but also society as it creates instability and risk of conflict. to build awareness to organize and mobilize. Each of the 20 AAK continues to be committed to support the Sabah villages have now formed active committees to tackle the smallholders, with a particular focus on land tenure during issues identified and to work closely with their designated the next 12 months. Securing land tenure cannot be Forever Sabah district field coordinator. Collating and underestimated. It is a requirement for RSPO certification analyzing the data required some additional support, and and it secures indigenous smallholder rights and reduces AAK was able to provide laptops for the field teams to record social conflict as well as increases incentives for long-term and manage all the data gathered from the interviews. investments by those smallholders in productivity and From the data collected, a comprehensive report was sustainability. This issue is the single-most important one published in May 2018. It provides a fascinating insight into to smallholders, which ripples throughout the landscape to the importance of oil palm for smallholders and the enormity impact production practices and yield, land encroachment of the challenges to achieve RSPO certification by 2025. and deforestation, livelihoods and poverty. While this is going to be one of the hardest and most Important key findings important issues to address for Sabah’s Jurisdiction Certifica- For AAK and Forever Sabah the report provides the baseline tion process, we are certain that we will be able to maintain insight of issues to be tackled and helps to prioritize. One the great momentum within Forever Sabah and truly make a of the key findings from the survey was that only 36 percent difference for the region’s smallholders.

9 Mintel: The power of storytelling

Storytelling has become a key selling proposition for many companies, big and small. To find out more about this marketing phenomenon, we contacted David Jago, Director of Innovation & Insight at Mintel, one of the world’s leading market intelligence agencies.

David Jago, Director of Innovation & Insight at Mintel

David, why are stories and the craft of storytelling so It’s about reassurance, but more importantly it’s about ­important nowadays? romancing the consumer, engaging with the consumer on We live in an era of fake news and there’s erosion of trust in an emotional level. And in today’s digital, instant-response government, the media and regulatory authorities. The real, realm, that emotional connection is even more important the genuine and the true have always been at the heart of – enhancing the food experience for the consumer who the consumer experience, but our desire for “the real thing” is bombarded with information and images, struggling to has now been amplified. In food and drink, that means discern what’s “real”. consumers distrust “big food”, they want to understand where their food comes from, how it was sourced, how it was Is storytelling within the food industry different from other made, and what exactly is in it. industries and if so, in what way? In Mintel research conducted last year, approximately half The last few years have seen enormous growth in craft and of UK and German consumers and just 30 percent of French artisanal values in food markets, and not just from smaller consumers, said that they trusted the food and drink industry players. Big companies, even multinationals, are leveraging as a whole when it comes to safe consumption. But 73 local and artisanal values to make their brands and products percent of Germans, 65 percent of French consumers and more “real” for consumers. They do this through story- 56 percent of UK consumers said that they are more likely to telling, through providing information on provenance and trust a food/drink product if the packaging explains where the processing, through reassurances of a product’s ethical and ingredients are sourced. social values. The food ingredients industry, too, must provide transpar- How has storytelling evolved over time and why are writing ency and add value through a story. Successful ingredients good stories such a powerful marketing tool? suppliers don’t just sell ingredients, they provide solutions in Some countries have always had a better “heritage” of partnership with their customers, providing a story that adds storytelling. France and Italy, for example, with their strong value through the supply chain and helps deliver a fully- cultural and local ties to food and agriculture, have long rounded consumer proposition. Indeed, we could argue that exploited the power of narrative in marketing speciality the latest evolution of the clean label trend is transparency foods at home and abroad. In the wider context, this trend and provenance of the ingredients, not just the elimination started out among small, local companies, in particular craft of villainized additives. This works because consumers are brewers, and remains more common in categories that have looking for the “plus” – a focus on the positives of what is in a more direct connection to the farm (dairy, meat, cereals). a product rather than the negatives, of what is not – and the But all brands have an opportunity to explore and share story justifies the added value proposition and price. the heritage of their own products, especially those with a compelling narrative.

10 How do you think storytelling will influence the food in- gredients industry in the future? What type of stories are emerging? It’s not going to go away. It will be even more important in the future, and right now a key driver is the enormous boom in the number of small, entrepreneurial and niche brands flavor-enhancing techniques used. Bringing this degree of that often produce and sell locally and do an excellent job storytelling to wider food markets could offer new ways to of telling a story. The growing presence of these brands create added value and new pillars for flourishing innovation. in mainstream retail will only encourage larger players to We are seeing, and will see more, stories related to local consider storytelling as a key selling proposition. ingredients, or locally-grown/processed ingredients, “real” or In foodservice or in the alcoholic drinks category, “purposeful” food ingredients, less processed ingredients, consumers are accustomed to seeing information about and the provenance of ingredients. In short, a focus on the how a dish or a product was created, the processes and positives, not the negatives.

11 Watch video on youtube.com/c/aakab The charm and the challenge of being a first-time mother

The World Health Organization (WHO) recommends mothers worldwide to exclu- sively breastfeed infants during the child’s first six months to achieve optimal growth, development and health. But while mother’s milk always should be the first choice, some mothers experiencing illness and pain find great support in infant formulas.

Earlier this year, 36-year-old Linnea from Sweden gave birth “The doctor recommended us to add, for a limited time, some to her first child, Carl. Just like many first-time mothers would formula as a compliment to the breastfeeding, so that’s what do, she describes the experience as very emotional and the we did. It was such a relief for me as a mother and it really biggest thing in a woman’s life. But not all things turned out helped us both a lot. Carl became very satisfied and full.” the way Linnea had expected. Linnea explains that the most important thing for her “The biggest surprise for me was when it came to breast- during this period was to support her baby and to be able to feeding”, Linnea says. “I don’t think you talk that much about relax and take away the pressure she had felt. it and you just expect it to work by itself, as the most natural “I know that breastfeeding is the best for him, and now, thing.” after four months, we are doing great with it”, Linnea says. But when Carl was only a few weeks old, there were “My advice to other first-time mothers is to try to stay strong a lot of challenges for Linnea who struggled with several with the breastfeeding and continue for at least six months. high fevers and lots of pain. This, of course, had serious But don’t be afraid to ask for help because there is help to consequences for Carl who became dehydrated and didn’t get.” gain weight as expected. Linnea contacted her doctor and scheduled an appointment.

12 Phospholipid-bound LCPs – a part of the magic in human milk

AAK’s solution Akonino® ELIP mimics the golden standard of human milk while meeting new requirements in the upcoming EU regulations for infant formula. The secret behind the solution: egg yolk.

The dry matter of the brain is made up of 60 percent fat, Special Nutrition segment. “A proper balance of DHA and and the important omega-3 fatty acids are found in all ARA is needed for optimal cognitive performance in infants, brain and nerve structures. 97 percent of these long-chain as too much DHA may suppress the benefits from ARA. This polyunsaturated fatty acids (LCPs) in the brain are DHA balance is provided by our Akonino® ELIP.” (docosahexaenoic acid), and all are bound in phospholipid There are different types of phospholipids, and in human (PL) form, resulting in so called PL-bound LCPs. milk about one third of the phospholipids carry the nutrient choline. Choline is needed for normal development of infants, as they cannot produce choline themselves. Infant AAK’s ELIP range – natural and unique PL package formulas contain a wide range of choline concentrations, of which some are very low and should be considered when PL-bound DHA formulating. COOH Closer to human milk, 10–20% of DHA is PL-DHA Essential for brain development “75 percent of the phospholipids in our solution carries DHA All DHA in the brain is bound to PL choline, perfect for sourcing this essential nutrient”, says More efficient absorption and reach to brain Lotte Smolders. “Akonino® ELIP includes DHA, ARA as well + as choline, originating from natural egg yolk.” O

OH PL-bound ARA Higher bioavailability Closer to human milk, 10–20% of ARA is PL-ARA Advice ARA>DHA, like in ELIP 30 Enhancing the bioavailability of vital components such as ARA DHA and ARA in infant formula is key. It has clinically been shown (Carnielli, V.P. et al.) that, in infant formula, DHA + PL-bound choline CH3 bound to phospholipids has higher bioavailability than the H3C N+ Closer to human milk OH DHA bound to triglycerides. H3C Essential for infant development Natural form and more bio-efficient than salts Recent studies* verify that the digestion and reach into Choline Optimal source of natural choline tissue, including crossing of the DHA through the blood- brain barrier, is more efficient as PL-DHA than the DHA in 20% of phospholipids (PL) are directly absorbed in vivo without digestion triglyceride form. Similarly, higher levels of ARA (Wijendran V., et al.) and choline (Hirsch, M.J., et al.) is found in tissue ® The benefits of AAK’s Akonino ELIP range. when bound to phospholipids. “I expect there is a reason why human milk during evolution has been Current research is recognizing that the DHA amount designed to provide parts of these available during infancy and childhood are correlated to overly important fatty acids in brain function/cognition. Coming into force in 2020, EU has PL-bound form”, says Lotte updated infant regulation 2016/127, with a mandatory and Smolders. increased DHA level.

Egg yolk – a natural source for PL-bound components In human milk, 10–20 percent of the total LCPs – the omega-3 DHA and the omega-6 ARA (arachidonic acid), respectively – is bound in a phospholipid. One of few possible natural sources for these PL-bound LCPs, which can be used to mimic mother’s milk, is the egg yolk. “AAK’s solution Akonino® ELIP offers an active lipid mixture of PL-bound LCPs, gently retrieved from egg yolk”, says Lotte Smolders, Nutritional Science Expert within AAK’s

*Liu, L., et al., Higher efficacy of dietary DHA provided as a phospholipid than as a triglyceride for brain DHA accretion in neonatal piglets, and Subbaiah, P.V., et al., Enhanced incorporation of dietary DHA into lymph phospholipids by altering its molecular carrier. AAK – The Co-Development Company

The Co-Development Company. What is really in that brand promise from AAK? In a simplified way you could say that AAK collaborates with its customers – from idea to product launch – to create value-adding solutions. But how does it work? Insight asked some of AAK’s teams around the world to share some recent successful co-development stories.

Customer Co-Development in Europe AAK saved customer £1 million by giving pastry longer shelf life

Last year, AAK was approached by an important customer The AAK team joined forces with our customer’s specialists within the bakery segment who had a problem with one to co-develop a solution. We trialed several different fat of its products. A popular sweet baked product, stocked combinations, eventually reaching a solution with a new throughout the UK by our customer’s retail customer, had product, Akobake 122. The result? Two additional days’ shelf a shelf life of three days before its pastry became too soft. life for the product, reduced labor costs for the baker, and For the retailer, this meant products going to waste when reduced waste for the retailer. And, ultimately, a consumer not sold to consumers in time. Meanwhile, the baker was who could enjoy crispier, firmer pastry. working six days a week to keep putting fresh stock on the Over a 12-month period, our customer has saved around shelves. £1 million in labor, production and waste costs, as well as potentially strengthened the relationship with its own customer. For AAK, the results have been just as rewarding, with the addition of a new product to our range of value- adding solutions and, best of all, earning our customer’s trust by helping to fulfil their ambitions. This was a really great example of our co-development approach at work. It pooled our knowledge, skills and capabilities to help meet our customer’s challenge and truly add value to our products.

Jill Ellis Customer Innovation Manager, AAK UK

Tracey Moss Key Account Manager, AAK UK

Customer Co-Development in Europe All taste, no waste – how innovation helped an AAK customer

These are increasingly challenging times for the food plant. The result was outstanding, and the customer now industry, with health targets, new legislation and rising costs, experiences no waste as a result of sugar reduction, with all while having to keep loyal consumers happy and win new efficiencies back to normal. ones. This project shows how AAK innovation can win great A breakfast cereal manufacturer found that meeting sugar opportunities to help customers maintain the quality of well- reduction targets meant excess waste. A proportion of the loved products without affecting business efficiency. product was sticking to production equipment, leaving the manufacturer with 40 percent waste compared with original Mike Edson standards. Customer Innovation Manager, AAK UK Through a process of analysis and experimentation, our AAK team developed an innovative solution: a release agent, Gary Chapman Rolloff 200 Sun, that would be applied to the customer’s Senior Account Manager, AAK UK

14 Customer Co-Development in Europe Maximum value and zero compromise in chilled dairy snacks

Earlier this year, a major producer within the chilled dairy lation was chosen to be used for industrial scale trials. snacks segment faced some serious problems within its During ramp-up, the ability to meet set requirements and supply chain, resulting in both quality and production issues. specifications was closely monitored. Through iterations, Based on the producer’s input, a team from AAK started testing and tasting together with the customer, we agreed on to secure availability of raw material volumes with the a final product specification with zero compromise on taste, right quality and develop a tailor-made solution to provide functionality and sustainability requirements. seamless performance. Within a short time period a formu- This close collaboration resulted in the producer being able to pursue the growing market demand. From first customer interaction to final chilled dairy snack at the retailers, it took less than nine months.

Daan Wagter Launch Customer Innovation Manager, AAK Netherlands

Daan Lugard The five Sales Manager, AAK Netherlands Implement value-adding Ideate stages of AAK’s co-development approach.

Prove Create Production plants Customization plants Sales offices Sourcing operations Customer Innovation Centres

We are AAK

AAK is a leading provider of value-adding vegetable oils & fats.

Our expertise in lipid technology within foods and special nutrition applications, our wide range of raw materials and our broad process capabilities enable us to develop innovative and value-adding solutions across many industries – Chocolate & Confectionery, Bakery, Dairy, Special Nutrition, Foodservice, Personal Care, and more. Explore more at AAK’s proven expertise is based on more than 140 years of experience www.aak.com within oils & fats. Our unique co-development approach brings our customers’ skills and know-how together with our own capabilities and mindset for lasting results.

Listed on Nasdaq Stockholm and with our headquarters in Malmö, Sweden, AAK has 20 different production facilities, sales offices in more than 25 countries and more than 3,400 employees.

We are AAK – The Co-Development Company.