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Arla Foods Presentation Arla Foods Presentation From local to global….. by Country Director Jens Kauffmann Products Facts History Market information Closer to Nature 2 17 August 2011 2 As a dairy company - ARLA has roots dating back 150 years 1863 - The first milk- Stockholms store was established In Mjölkförsäljningsbolag – Sweden, Stockholm. milk botteling 1928 (Sweden) Selling milk from Nådhammars farm by Wilhelm Lidholm (1831-1910) Scandinavian dairy is built on education 1882 First coop dairy in Denmark - Dairy men in 1958 – ready for a day’s work Today Arla is the eight largest dairy in the world Turnover of dairy products in 2010 (EURO’s - billion) Merger in Jan. 2009 Type of company Private Member-owned 0 5 10 15 20 25 Source: Rabobank International, June 2011 4 ARLA Foods has consolidated the Scandinavian dairy industry by acquisitions and mergers: - In 1935 there was 1735 dairies in Denmark – today less than 20; - ARLA has 90% of all milk in Denmark 1970 1980 1990 2000 2010 Arla Foods facts … Arla Foods is a cooperative owned by approximately 7,200 Swedish, Danish and German milk producers Turnover 2010: DKK 49 bn. (≈€ 6.54 bn) No. of employees 2010: 16,215 Milk intake 2010: …from ownership: 6.174 billion kg …totally: 8.713 billion kg Arla Foods has production facilities in 13 countries and sales offices in a further 20 countries. 6 Our Mission • ”Our mission is to offer modern consumers natural, milk-based food products that create inspiration, confidence and wellbeing.” 7 ARLA Foods is an agricultural co-operative - Farmers in Sweden, Denmark & Germany are the owners of ARLA The owners (7,179) 3,649 3,529 1* Membership districts Membership democracy: one person, one vote. (49) 25 24 0 Board of Representatives (145) 85 55 5 The Board of Directors (15) 8 6 1 8 Arla across the world – Arla production in 13 countries and sales subsidiaries in further 20 countries Argentina, Bangladesh, Brazil, Canada, China, Denmark, Dominikan Rep., Estonia, Finland, France, Germany, Greece, Holland, Italy, Japan, Korea, Kuwait, Libanon, Malaysia, Mexico, Nigeria, Norway, Poland, Qatar, Russia, Saudi Arabia, Singapore, Spain, Sweden, UK, United Arab Emirates, USA, Vietnam = countries with production and sales = sales offices only 9 ARLA Foods’ products were sold in 116 countries (2010) -with a turnover of US$ 10 Billion plus fresh milk BSM & Cheese Milk Powder BSM & Cheese 10 Our core markets Denmark, Sweden, UK, Finland, Holland, Poland and Germany • Finland • Sweden Helsingfors Stockholm • Denmark - • England- Århus Leeds Holland Germany Poland 17 August 2011 11 Turnover by markets Rest of the world 1.8% Asia 2.4 % USA 4.7 % Middle East 4.3 % Rest of Europe 6.7 % Sweden Poland 0.5 % 20.0 % Holland 3.2% Finland 5.1 % Denmark 18.6 % Germany 6.5 % UK 26.2 % Arla Foods 2009 17 August 2011 12 Turnover by products Others 9.0% Butter and spreads 13.5% Nutrition & Ingredients 12.8% Fresh products 40.2% Cheese 24.5% Arla Foods 2010 13 Arla Foods identity … - or how to sustain growth and leadership 1) Closer to nature 2) Quality & Food Safety 3) Brands 4) Innovation 5) Environment 14 1) We want to bring consumers Closer to Nature™ Arla Foods has taken a stance towards nature, where we want to be even better to ensure more natural products and less environmental impact, for the benefit of consumers and society as a whole. 15 1) We want to bring consumers closer to nature™ …by combining nature and technology… Modern technology In order to succeed, we start with nature and Natural combine it with our innovation, know-how evolution and modern technology. We call it Nature natural evolution 16 1) We want to bring consumers closer to nature™ … and we do this all the way from the cow to the modern consumer Environmental Delivering natural Our owners focus at our products in more We motivate a are our milk dairies environmentally healthier producers and on friendly lifestyle transport packaging 17 2) Arla’s value chain do secure Quality & food safety • The Arla value chain extends all the way from cow to consumer. • Our Arlagaarden quality assurance programme is part of our responsibility for ensuring that the milk and other raw materials are of a high quality and responsibly produced. THE FARM THE MILK PROCESSING THE CUSTOMER THE CONSUMER 18 2) Arla’s value chain do secure Qualtiy & food safety Our quality programme ”Arla Gaarden” Milk composition Food safety Arla Gaarden must ensure that the milk is of high quality and is produced responsibly. Animal welfare Environmental considerations 19 3) Brands Standard dairy products Fresh Cheese Nutrition Spreads Product concept Product Premium butter products We will build a strong Arla The company brand – closer to nature ™ Premium cheese products 20 4) Innovation Double product development budget • US$ 45 million allocated to innovation in 2011 • Main innovation centre • Nr. Vium • Stockholm • Århus Fresh BSM Cheese products • Product development application • Argentina • Leeds • Nijkerk • Söderkulla Ingredients Powder and • Århus nutrition 5th Enviroment We want to reduce our CO2 emissions by 25% before 2020 • Food production • Transport -25% • Packaging CO2 In primary agriculture we will work with our co-operative members, research institutions and industry organizations to achieve as high a CO2 reduction on dairy farms, as possible 22 5th Enviroment Environmental focus at our dairies and on transport • We have been able to reduce our impact on the climate with fewer and more modern daries • We’re working to utilize biogas from our owner’s farms • We’re investing in modern trucks, that emit less hazardous particles and NOx • We’re teaching our drivers eco- friendly driving and how to reduce fuel consumption 23 Thank You… 24.
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