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Bank of Ireland Agri-Food Conference Kilkenny
21 November 2013
Agenda

1. Who We Are & What We Do
2. A Changing and Challenging Environment
3. Growth through Transformation and Innovati...
1. Who We Are & What We Do

3
The Birth of Valeo Foods

November 2010

September 2011

Origin Foods and Batchelors
merger to form Valeo Foods

Valeo Foo...
Valeo Foods
•

Now the largest ambient food supplier to Irish retailers

•

342 employees

•

A predominantly branded busi...
Integration – Establishing the Platform

One integrated
Sales Force

New structures &
streamlined
processes

HQ & distribu...
Ranked on Value sales in each bracket

Valeo is the No 1 ambient food supplier in
Ireland

v
v

Under €75m

€75m - €100m

...
Valeo is A Brand Driven Business
No.1 biscuit brand

No.1 canned
brand

No.1 flour
brand

No.1 juice
brand

No 1
or strong ...
Augmented by Partner Brands

Complementary
to Valeo
category
positions

9
Supported By Strategic Relationships
with our Key Customers
Customer

JBP

Category Partners

PL
Manufacture

✔

✔

✔

✔

...
Flexible & Efficient Manufacturing Operations
Delivering Competitive Advantage
2 Key sites: Cabra and Portarlington

11
2. A Changing and Challenging
Environment

12
Total Grocery market sales have grown over 52w by +1.1% to
almost €9bn, with recent 12w growth of +0.6%
Total Grocery - ma...
Market dynamics
•

Very competitive market in a challenging economic
environment

•

Price sensitive consumers trading dow...
Strong presence of local and
international brands
•

Food market characterised by the strength of local brands

•

Larger ...
Irish Grocery Market Context - Private Label
Private Label
38.0%
37.5%
37.2%

37.0%
36.5%
36.0%
35.5%

35.5%

35.0%
34.5%
...
Fresh and Ambient Food are growing within Grocery

+1.9%
+1.8%
-1.6%
+0.6%
-2.9%
+0.7%
-5.3%

(Source: Kantar Worldpanel )
Consumers’ coping strategies

2007

6%

31%

63%

2013

Example: Shoppers making more trips, but smaller trips

4%

37%

5...
Market Dynamics

Value Conscious Consumer

Suppliers / Brands

Retailers fighting for footfall and share
3. Growth through Transformation
and Innovation

20
Our Model - The Virtuous Circle
Generating
Operational
Efficiencies

Driving
Category
Growth with
Customers

Focus on
Core...
Focus on Core Brands - “The Magnificent 7”

22
Everything Is Based On Insight..

Telephone Research
Focus Groups
Assisted Shops
Digital Media

Workshops
Focus Groups

23...
Odlums & Shamrock - Renovating to
Differentiate

September 13
24

September 13
Odlums & Shamrock - Innovating &
Stretching

25
Roma & Erin- Renovating to Differentiate

September 13
26
Erin, Roma & Batchelors - Innovating &
Stretching

September 13

November 13

27
Jacobs - Innovating & Stretching

September 13
August 13
October 13

28
Investing Behind Core Brands
ad
o b s TV
Ja c

Odlums exclusive
sponsor of the The Great
Irish Bake Off

Airing in October...
Driving Category Growth with Customers
Example – Insight To Execution :
Tesco Home Baking Fixture

Consumer
insight

Categ...
A €5M Brand Transformation Programme

Creating

Renovating

44

220

New Products

Packs

31
4. Building on this Growth
Platform

32
Growing our Brands
• Continued to drive from Growth Platform
• Invest in People and Processes
• Brand Investment
• Continu...
Growing our Footprint
Double Our Turnover
M&A Criteria

•

Ireland, UK, Continental Europe

•

Category leading brands eit...
Key Messages
• Combined three iconic Irish food businesses to form
Ireland’s largest ambient food company

• Economic envi...
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Valeofoods, Nov. 2013

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Transcript of "Valeofoods, Nov. 2013"

  1. 1. Bank of Ireland Agri-Food Conference Kilkenny 21 November 2013
  2. 2. Agenda 1. Who We Are & What We Do 2. A Changing and Challenging Environment 3. Growth through Transformation and Innovation 4. Building on this Growth Platform 2
  3. 3. 1. Who We Are & What We Do 3
  4. 4. The Birth of Valeo Foods November 2010 September 2011 Origin Foods and Batchelors merger to form Valeo Foods Valeo Foods acquires Jacob Fruitfield Group 4
  5. 5. Valeo Foods • Now the largest ambient food supplier to Irish retailers • 342 employees • A predominantly branded business • Two large Manufacturing Sites • Ireland’s largest temperature controlled ambient distribution facility 5
  6. 6. Integration – Establishing the Platform One integrated Sales Force New structures & streamlined processes HQ & distribution integrated Single IT platform Best-in-class commercial team Significant Systems upgrades Top 5 supplier to Irish grocers 6
  7. 7. Ranked on Value sales in each bracket Valeo is the No 1 ambient food supplier in Ireland v v Under €75m €75m - €100m €100m - €150m 7 €150m - €250m Over €250m
  8. 8. Valeo is A Brand Driven Business No.1 biscuit brand No.1 canned brand No.1 flour brand No.1 juice brand No 1 or strong No 2 in all our key categories No.1 marmalade brand No.1 dried fruit brand No.1 pasta brand No.2 dry sauce brand No.2 ketchup brand 8
  9. 9. Augmented by Partner Brands Complementary to Valeo category positions 9
  10. 10. Supported By Strategic Relationships with our Key Customers Customer JBP Category Partners PL Manufacture ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ 10
  11. 11. Flexible & Efficient Manufacturing Operations Delivering Competitive Advantage 2 Key sites: Cabra and Portarlington 11
  12. 12. 2. A Changing and Challenging Environment 12
  13. 13. Total Grocery market sales have grown over 52w by +1.1% to almost €9bn, with recent 12w growth of +0.6% Total Grocery - market value & YoY %chg +0.4% +1.1% 13 (Source: Kantar Worldpanel )
  14. 14. Market dynamics • Very competitive market in a challenging economic environment • Price sensitive consumers trading down • Private Label growth • Discounters growing footprint and share • Multiples fighting for footfall and share 14
  15. 15. Strong presence of local and international brands • Food market characterised by the strength of local brands • Larger Irish groups hold strong positions in certain staple categories • • Glanbia, Kerry Multinational groups also represented • Nestle, Kraft, Unilever 15
  16. 16. Irish Grocery Market Context - Private Label Private Label 38.0% 37.5% 37.2% 37.0% 36.5% 36.0% 35.5% 35.5% 35.0% 34.5% 34.6% 34.0% Oct 11 Oct 12 Oct 13 16 (Source: Kantar Worldpanel )
  17. 17. Fresh and Ambient Food are growing within Grocery +1.9% +1.8% -1.6% +0.6% -2.9% +0.7% -5.3% (Source: Kantar Worldpanel )
  18. 18. Consumers’ coping strategies 2007 6% 31% 63% 2013 Example: Shoppers making more trips, but smaller trips 4% 37% 58% Shoppers making 218 trips per year in 2007 vs 246 trips in 2013 (Source: Kantar Worldpanel March 2013 )
  19. 19. Market Dynamics Value Conscious Consumer Suppliers / Brands Retailers fighting for footfall and share
  20. 20. 3. Growth through Transformation and Innovation 20
  21. 21. Our Model - The Virtuous Circle Generating Operational Efficiencies Driving Category Growth with Customers Focus on Core Brands Renovating & innovating 21
  22. 22. Focus on Core Brands - “The Magnificent 7” 22
  23. 23. Everything Is Based On Insight.. Telephone Research Focus Groups Assisted Shops Digital Media Workshops Focus Groups 23 Consumer Preference Tests Focus Group Screening
  24. 24. Odlums & Shamrock - Renovating to Differentiate September 13 24 September 13
  25. 25. Odlums & Shamrock - Innovating & Stretching 25
  26. 26. Roma & Erin- Renovating to Differentiate September 13 26
  27. 27. Erin, Roma & Batchelors - Innovating & Stretching September 13 November 13 27
  28. 28. Jacobs - Innovating & Stretching September 13 August 13 October 13 28
  29. 29. Investing Behind Core Brands ad o b s TV Ja c Odlums exclusive sponsor of the The Great Irish Bake Off Airing in October to December 2013 29 vert Airing in October to December 2013
  30. 30. Driving Category Growth with Customers Example – Insight To Execution : Tesco Home Baking Fixture Consumer insight Category strategy Customer execution 30 Customer JBP Accelerating category growth
  31. 31. A €5M Brand Transformation Programme Creating Renovating 44 220 New Products Packs 31
  32. 32. 4. Building on this Growth Platform 32
  33. 33. Growing our Brands • Continued to drive from Growth Platform • Invest in People and Processes • Brand Investment • Continued Renovation • Win-win with Customers • Pipeline of Innovation 33
  34. 34. Growing our Footprint Double Our Turnover M&A Criteria • Ireland, UK, Continental Europe • Category leading brands either #1 or #2 • Complementary products/categories • Ease of integration • Opportunities for cost/growth synergies 34
  35. 35. Key Messages • Combined three iconic Irish food businesses to form Ireland’s largest ambient food company • Economic environment continues to be challenging • Significant shifts in Consumer behaviour are here to stay • These challenges demand strategic focus • Valeo focus on Brand growth through transformation and innovation • Build on this growth platform and broaden horizons 35
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