Transforming Dairy Europe
TRANSFORMING DAIRY GUSTAVO VALLE
VP DAIRY DIVISION EUROPE
A FOCUSED STRATEGY FOR EUROPE
Generate value added growth
(Re)-Build our margins
Boost the efficiency of our organizations
A SPECIFIC CONTEXT FOR EUROPE
Economic crisis
Ingredients’ inflation
Regulatory context
Private label pressure
Less differentiation
Significant lower margins
RE-INVENT EUROPE TO CREATE POSITIVE DRIVERS
Focus on value creation Operations efficiency Portfolio management Simplification
Innovations/ Renovations
Better storytelling
RE-INVENT EUROPE TO CREATE POSITIVE DRIVERS
Focus on value creation Operations efficiency Portfolio management Simplification
Innovations/ Renovations
Better storytelling
BUILD A NEW COMMUNICATION PLATFORM TO DRIVE SUSTAINABLE GROWTH FOR THE BRAND
BREAKFAST FOR YOUR DEFENSES
HUNGER SATISFACTION
2
RE-INVENT EUROPE TO CREATE POSITIVE DRIVERS
Focus on value creation Operations efficiency Portfolio management Simplification
Innovations/ Renovations Better storytelling
BEFORE
AFTER
Launched in all EU countries
> 50% growth vs. 2013 Higher Margin
ACTIKIDS
FMOT ZMOT
SMOT
25% to 35% growth on kids flavors SKUs Roll-out in progress across all countries
In 7 EU countries by 2014
2013 JAN
2014 OCT
JAN
FEB
S2
*market test
Net sales YTD above € 15 mln
WHITE INDULGENCE BRINGS VALUE TO MARKETS IN EUROPE
Launched in 9 European countries > €100mln Net Sales estimated for 2014 High teen growth vs. 2013 Higher margin than average Europe portfolio
RE-INVENT EUROPE TO CREATE POSITIVE DRIVERS
Focus on value creation Operations efficiency Portfolio management
Simplification Better storytelling
Innovations / renovations
RECIPE AND FORMULA SIMPLIFICATION
Simplify
FROM
TO
17 recipes in Europe
3 recipes Best in consumer test
Leverage our size 200 fruit preps 800 fruit preps 9 suppliers 17 sourcing points
4 suppliers 9 sourcing points
EUROPE DESIGN NEW GOVERNANCE SELECT IDEAS
Global Brands Teams
DanTrade, DISCO, EGM
DEFINE BASES OF INTEREST
Too Small
Kill
Big & Easy
Go
EURAC (R&D Resource Allocation Committee)
* Drive Scale & Plan Resources BOI ECCO (Sourcing & CAPEX Committee)
Local Brands in countries
GO DEVELOP
& Inside allocated resources & Capex 250k€
Local Committee
Prio EU Committee
COUNTRIES’ REORGANIZATION IN EUROPE FROM 22 TO 11 CBU’S
Finland Norway
Sweden
Estonia Latvia
Denmark Ireland
Great Britain
Netherlands Belgium
France
Lithuania
Poland
Germany
Switzerland
Czech Rep. Slovakia Austria
Slovenia Croatia Italy
Portugal Spain
Hungary
Romania
Bosnia Serbia Bulgaria Montenegro Macedonia Albania Greece
RE-INVENT EUROPE TO CREATE POSITIVE DRIVERS
Focus on value creation Operations efficiency
Portfolio management
Simplification
Better storytelling
Innovations / renovations
A UNIQUE OBJECTIVE: BRING EUROPE BACK TO PROFITABLE GROWTH PRIORITISATION TOP INITIATIVES & RESSOURCES ALLOCATION
Margin/Net Sales % Countries 45% … … … … 20%
Brands 50% … … … … 10%
Customers 50% … … … … 10%
PRIORITIZE VALUE-ADDED BRANDS Top initiatives prioritization and ressources allocation
RE-INVENT EUROPE TO CREATE POSITIVE DRIVERS
Operations efficiency
Focus on value creation Portfolio management
Simplification
Better storytelling
Innovations / renovations
LEVERAGING OUR SIZE
Italy, Poland, France, Belgium are live
Indirect spend included in the scope
MANUFACTURING FOOTPRINT 2012: 24 PLANTS
MID 2015: 16 PLANTS
Lunnarp
Lunnarp Bailleul Molay DPB
Castello
Hagenow
Rotselaar
Warsaw
Ochsenfurt BenesovBierun Salas Rosenheim St Just Villecomtal Casale Budapest Tres Cantos
Parets Sevilla Aldaia
Tenerife
Bailleul
Bucharest Sofia
Molay Salas
DPB
Rotselaar Ochsenfurt
Villecomtal St Just Tres Cantos Parets Aldaia
Warsaw Bierun
Rosenheim
Bucharest
A NEW ORGANIZATION & WAY OF WORKING
Value creation BU’s
European Operations Unit
DanTrade
EU R&D
Milk
European global marketing
Govern + transaction
FIRST GOOD INDICATORS
Important trend change
2
70% of Business is in a flatish trend Growing
KEY MESSAGES
Re-invention focus on value creation One unit - Europe - approach for prioritization and resources allocation
Strong simplification and operational efficiency First good signals confirms we are in the right direction
VP DAIRY DIVISION EUROPE
A FOCUSED STRATEGY FOR EUROPE
Generate value added growth
(Re)-Build our margins
Boost the efficiency of our organizations
A SPECIFIC CONTEXT FOR EUROPE
Economic crisis
Ingredients’ inflation
Regulatory context
Private label pressure
Less differentiation
Significant lower margins
RE-INVENT EUROPE TO CREATE POSITIVE DRIVERS
Focus on value creation Operations efficiency Portfolio management Simplification
Innovations/ Renovations
Better storytelling
RE-INVENT EUROPE TO CREATE POSITIVE DRIVERS
Focus on value creation Operations efficiency Portfolio management Simplification
Innovations/ Renovations
Better storytelling
BUILD A NEW COMMUNICATION PLATFORM TO DRIVE SUSTAINABLE GROWTH FOR THE BRAND
BREAKFAST FOR YOUR DEFENSES
HUNGER SATISFACTION
2
RE-INVENT EUROPE TO CREATE POSITIVE DRIVERS
Focus on value creation Operations efficiency Portfolio management Simplification
Innovations/ Renovations Better storytelling
BEFORE
AFTER
Launched in all EU countries
> 50% growth vs. 2013 Higher Margin
ACTIKIDS
FMOT ZMOT
SMOT
25% to 35% growth on kids flavors SKUs Roll-out in progress across all countries
In 7 EU countries by 2014
2013 JAN
2014 OCT
JAN
FEB
S2
*market test
Net sales YTD above € 15 mln
WHITE INDULGENCE BRINGS VALUE TO MARKETS IN EUROPE
Launched in 9 European countries > €100mln Net Sales estimated for 2014 High teen growth vs. 2013 Higher margin than average Europe portfolio
RE-INVENT EUROPE TO CREATE POSITIVE DRIVERS
Focus on value creation Operations efficiency Portfolio management
Simplification Better storytelling
Innovations / renovations
RECIPE AND FORMULA SIMPLIFICATION
Simplify
FROM
TO
17 recipes in Europe
3 recipes Best in consumer test
Leverage our size 200 fruit preps 800 fruit preps 9 suppliers 17 sourcing points
4 suppliers 9 sourcing points
EUROPE DESIGN NEW GOVERNANCE SELECT IDEAS
Global Brands Teams
DanTrade, DISCO, EGM
DEFINE BASES OF INTEREST
Too Small
Kill
Big & Easy
Go
EURAC (R&D Resource Allocation Committee)
* Drive Scale & Plan Resources BOI ECCO (Sourcing & CAPEX Committee)
Local Brands in countries
GO DEVELOP
& Inside allocated resources & Capex 250k€
Local Committee
Prio EU Committee
COUNTRIES’ REORGANIZATION IN EUROPE FROM 22 TO 11 CBU’S
Finland Norway
Sweden
Estonia Latvia
Denmark Ireland
Great Britain
Netherlands Belgium
France
Lithuania
Poland
Germany
Switzerland
Czech Rep. Slovakia Austria
Slovenia Croatia Italy
Portugal Spain
Hungary
Romania
Bosnia Serbia Bulgaria Montenegro Macedonia Albania Greece
RE-INVENT EUROPE TO CREATE POSITIVE DRIVERS
Focus on value creation Operations efficiency
Portfolio management
Simplification
Better storytelling
Innovations / renovations
A UNIQUE OBJECTIVE: BRING EUROPE BACK TO PROFITABLE GROWTH PRIORITISATION TOP INITIATIVES & RESSOURCES ALLOCATION
Margin/Net Sales % Countries 45% … … … … 20%
Brands 50% … … … … 10%
Customers 50% … … … … 10%
PRIORITIZE VALUE-ADDED BRANDS Top initiatives prioritization and ressources allocation
RE-INVENT EUROPE TO CREATE POSITIVE DRIVERS
Operations efficiency
Focus on value creation Portfolio management
Simplification
Better storytelling
Innovations / renovations
LEVERAGING OUR SIZE
Italy, Poland, France, Belgium are live
Indirect spend included in the scope
MANUFACTURING FOOTPRINT 2012: 24 PLANTS
MID 2015: 16 PLANTS
Lunnarp
Lunnarp Bailleul Molay DPB
Castello
Hagenow
Rotselaar
Warsaw
Ochsenfurt BenesovBierun Salas Rosenheim St Just Villecomtal Casale Budapest Tres Cantos
Parets Sevilla Aldaia
Tenerife
Bailleul
Bucharest Sofia
Molay Salas
DPB
Rotselaar Ochsenfurt
Villecomtal St Just Tres Cantos Parets Aldaia
Warsaw Bierun
Rosenheim
Bucharest
A NEW ORGANIZATION & WAY OF WORKING
Value creation BU’s
European Operations Unit
DanTrade
EU R&D
Milk
European global marketing
Govern + transaction
FIRST GOOD INDICATORS
Important trend change
2
70% of Business is in a flatish trend Growing
KEY MESSAGES
Re-invention focus on value creation One unit - Europe - approach for prioritization and resources allocation
Strong simplification and operational efficiency First good signals confirms we are in the right direction
